The economic recession in Europe and the United States has not bottomed out. 60,000 Hong Kong-funded enterprises in the Pearl River Delta have been dragged down. The prediction by the Hong Kong Federation of Industry and Industry that it is not a "pessimistic forecast" indicates that there will be a risk of closure and contraction of 30% of Pearl River Delta Hong Kong enterprises (about 18,000) by the end of the year. The reason is "internal and external problems": foreign orders are Europe and the United States fell sharply, and domestic concerns are likely to raise the minimum wage again next year in Guangdong.

Economic downturn in Europe and the United States and Hong Kong companies 60,000 Hong Kong-funded enterprises in the Pearl River Delta are experiencing a rare problem: Both the European and the US markets continued to decline at the same time, resulting in a sharp drop in the number of Hong Kong-owned companies and a significant deterioration in the business environment.

Speaking at a press conference yesterday, Vice Chairman of the Hong Kong Federation of Industry and Industry Lau Chin-hwan said that it is not at all clear what the worst situation in Europe will be. This is obviously not good news for the 6 to 70% of Hong Kong-US companies from the United States and Europe. Because every shock in Europe and the United States, will be quickly passed to the Pearl River Delta.

However, the complexity of the issue is far more than this. The interior of the Pearl River Delta is also facing problems. “According to news from relevant departments in Guangdong Province, Guangdong Province will have the opportunity to raise the minimum wage again next year, and the operating costs of Hong Kong-owned enterprises will increase again,” said Liu Zhanxi.

Liu Zhanxi said that the General Assembly has already sent letters of “freeze salary increase proposal” to relevant departments of the Central Government and Guangdong Province, hoping to be accepted.

While seeking help from the Guangdong Province, the Federation of Industry also issued an appeal to the Hong Kong Government, hoping that the government would provide assistance and introduce policies to help Hong Kong companies. Otherwise, it would be too late for other companies to close down. Liu Zhanyi also praised the Dongguan City Government, saying that the local government is sympathetic to the enterprises and has adopted a series of measures to help the transition of Hong Kong enterprises. This includes providing a sum of money to fund local businesses to buy new machines.

"At the beginning of the year, I predicted that 30% of Hong Kong-funded enterprises will face the risk of being eliminated this year. At that time, some people said that I was too pessimistic. But now, looking back, what I said is not an exaggeration because of the difficulties we face this year. The bureau is worse than the 2008 predicament."

Liu Zhanxi said that due to the recession in the external economy this year, about 18,000 Pearl River Delta Hong Kong enterprises will experience collapses and contractions.

In fact, the slowdown in the inward migration of Hong Kong enterprises has caused labor shortages in Hong Kong enterprises, in addition to labor costs.

In recent years, the PRD’s Hong Kong enterprises have encountered “recruitment difficulties”. Affected by the high CPI, the Pearl River Delta’s attractiveness to the Mainland’s labor force has fallen sharply. If the plan is frozen, the entire Pearl River Delta’s attractiveness to the labor force will be further weakened.

Liu Zhanxi said that today's Hong Kong-funded enterprises only take the path of transformation and upgrading, and labor-intensive enterprises have no way to go when labor costs have risen sharply. And in the possible closure of the closure, those labor-intensive, lack of technical content of the plant, will be the type of high risk of closure.

As for the internal migration boom that prevailed some time ago, it seems to have slowed down in the General Chamber of Commerce, because the increase in labor costs is not regional, but it is increasing across the country.

"Now Dongguan has high wages, and companies can move to Jiangxi, but if Jiangxi goes up again, are companies going all the way to Heilongjiang? This is obviously unrealistic." Liu Zhanxi said that it is not easy to move away from the Pearl River Delta because a company Production requires an entire industry chain, unless the entire industry chain moves inward.

For the recent occurrence of the owners of the Yangtze River Delta to abandon the factory to escape, the Hong Kong Federation of Industry, said that this situation is rare in Hong Kong-owned enterprises, because the escape of Hong Kong businessmen, it means that the future does not need to go back to the mainland.