On August 21, technicians were testing industrial robot equipment in the production workshop of Topstar Technology Co., Ltd. in Dongguan, Guangdong. Photo by Wu Hao, reporter of Economic Daily-China Economic Net

¡õThrough continuous industrial upgrading, enterprises' risk resistance and competitiveness have been continuously enhanced. In dealing with Sino-US economic and trade frictions, "when the enemy comes, the general will fight, when the water comes, the earth will cover it", and enterprises can propose different response plans, which seems to be "at ease"

¡õThe Pearl River Delta region has not seen the phenomenon of large-scale transfer of manufacturing to overseas, and industrial transfer is still mainly transferred from China. There is no need to be surprised that some enterprises are deploying overseas, which is a normal phenomenon in line with market laws

¡õIndustrial integration has become an important means to reshape the industrial structure and cross-border innovation. Integration models such as Internet + manufacturing, artificial intelligence + manufacturing, and manufacturing + services promote full-chain industrial upgrading and cross-industry upgrading

As the "southern gate" of China's opening up to the outside world, the Pearl River Delta region is mainly characterized by an export-oriented economy. What is the impact of Sino-US economic and trade frictions on the operation of enterprises? How do enterprises view Sino-US economic and trade frictions? Is there a situation of large-scale industrial transfer to foreign countries? With these questions, Economic Daily reporters recently visited many enterprises, industry associations and competent authorities in the Pearl River Delta region.

Many entrepreneurs said that the Sino-US economic and trade frictions have little impact on the overall business, and orders from customers remain stable. "The 2008 international financial crisis had a significant impact on the industrial development of the Pearl River Delta region. After the baptism of the crisis, the awareness of enterprises in the Pearl River Delta region to actively transform and upgrade has been continuously enhanced, and their ability to resist risks has been further tested and enhanced when dealing with Sino-US economic and trade frictions." Qin Hailin, director of the Industrial Economics Research Institute of the China Academy of Information and Communications Technology of the Ministry of Industry and Information Technology, has conducted research on enterprises in the Pearl River Delta region since 2008. He believes that the impact of this Sino-US economic and trade friction on enterprises is limited.

During the research, the examples of enterprises increasing their investment in science and technology and mastering core production processes and core technologies are inspiring.

Guangdong Tosda Technology Co., Ltd., located in Dongguan, was established in 2007. The company started with the production of simple injection molding auxiliary equipment and began to turn to the production of industrial robots in 2010. In 2016, the company independently developed and launched its core competitive product, a six-axis industrial robot, and independently developed an operating system. Today, the company has grown into an integrated intelligent manufacturing service provider, with products and services covering more than 30 countries and regions. The person in charge of the company told reporters that the company is actively expanding overseas markets, overseas orders are growing rapidly, and Sino-US economic and trade frictions have almost no impact on the company.

Shenzhen-based Lightpeak Technology was founded in 2006, and the company invented ALPD? laser display technology in 2007. At present, the company has more than 1,800 patents, occupying the commanding heights of global laser display technology and establishing China's international leading position in the field of laser display. On July 22, 2019, Lightpeak Technology landed on the Science and Technology Innovation Board of the Shanghai Stock Exchange, becoming the first Guangdong stock on the Science and Technology Innovation Board. The person in charge of the company told reporters that the company currently has a market share of more than 60% in China's laser film market, and more than 16,000 theaters have used Lightpeak's laser projectors.

"The Pearl River Delta region has shifted from relying on low-cost factor dividends such as low-end labor and land to relying on high-level factor dividends such as talent and technology and innovation dividends, gradually getting rid of the "comparative advantage trap" and continuously enhancing its dynamic comparative advantage through innovation and technological progress." Xiang Xiaomei, director of the Institute of Industrial Economics of the Guangdong Academy of Social Sciences, said that behind the achievements made by the Pearl River Delta region, there is a main line that has always been adhered to, that is, to continuously empower economic development through continuous industrial upgrading. Through continuous industrial upgrading, the competitiveness of enterprises has also been continuously enhanced. In dealing with Sino-US economic and trade frictions, "the enemy will be stopped by the generals, and the water will be blocked by the earth." Enterprises can propose different response plans and appear to be "at ease."

The survey found that although the US tariffs have had a certain impact on the production of some companies, the Pearl River Delta region has not seen a large-scale transfer of manufacturing overseas, and industrial transfer is still mainly in China.

The person in charge of the relevant department said that Guangdong Province implemented the "double transfer" (industrial transfer and labor transfer) strategy as early as 2008, guiding labor-intensive enterprises to orderly transfer and gather development in the east, west and north of Guangdong, and making room for the development of high-end industries in the Pearl River Delta through "emptying the cage and replacing the bird". Today, 12 cities in eastern, western and northern Guangdong and Jiangmen, Zhaoqing and Huizhou have planned to build 93 provincial industrial parks, which have become the main carriers for the gradient transfer of industries in the Pearl River Delta and become new economic growth poles. In 10 years, the total industrial output value of the provincial industrial parks has increased from 30.266 billion yuan to 897.9 billion yuan, an increase of nearly 30 times.

In China's industrial transfer, enterprises do not simply relocate production lines, but focus on improving the resilience of the industrial chain and improving the level of intelligent manufacturing by increasing investment in science and technology. For example, in the Guangzhou (Qingyuan) Industrial Transfer Park, OPPEIN Home Furnishing Group has relocated various factories in Guangzhou to Qingyuan in batches since 2017, and the overall relocation work will continue until 2020. The person in charge of the company told reporters that relying on the relatively complete supporting facilities and services provided by Guangdong Province and Guangqing Industrial Park, OPPEIN has achieved sustained high-speed growth for many years. The business model of "Group Headquarters + Base" has brought the company's development to a new level. During the relocation process, the company increased its investment in the automation of production equipment and continuously promoted technological upgrading and product quality improvement.

Driven by emerging technologies such as information technology, industrial integration has become an important means to reshape the industrial structure and cross-border innovation. The integration of traditional industries and high-tech, especially the integration models of Internet + manufacturing, artificial intelligence + manufacturing, and manufacturing + services, has promoted the upgrading of the entire chain of industries and cross-industry upgrades, and continuously promoted China's industrial chain to move towards the middle and high end.

Since the Sino-US economic and trade frictions, a few companies have made overseas layouts, but they have been overly interpreted by people with ulterior motives as "withdrawing from China" and "singing bad news" about China's manufacturing industry. This argument is worth vigilance. During the investigation, the reporter learned that a few companies in the Pearl River Delta region have made production capacity layouts overseas for their own interests, and have not completely abandoned production in China.

Experts said that there is no need to make a fuss about individual companies' overseas layout, which is a normal phenomenon in line with market laws. In the final analysis, the profit-seeking nature of capital determines that companies will not lose their rational "side-choice" and will not be willing to lose the vast Chinese market due to economic and trade frictions. Foreign-funded enterprises are the most convincing in looking down on the Chinese market.

For example, in January this year, BASF, one of the world's largest chemical companies, signed a framework agreement with the Guangdong Provincial Government, and BASF officially announced the construction of its second integrated base in China in Zhanjiang City, Guangdong Province. The total investment in the Zhanjiang integrated project will reach US$10 billion, which is BASF's largest investment project to date. In July this year, Walmart built the largest multi-temperature fresh food distribution center in China's retail industry in Dongguan, with an investment of more than 700 million yuan. It is the largest single investment project of Walmart in China since it entered China 23 years ago.

Chinese companies have experienced the baptism of ups and downs and are more confident and calm. China is solidly promoting high-quality development, implementing the new development concept, and building a modern economic system. At the same time, it continues to promote high-level opening up, promote the "Belt and Road" cooperation, and expand the space for win-win cooperation. China is both the "world factory" and the "world market". China is still full of opportunities.

(Economic Daily Research Team Members: Pang Caixia, Yang Yangteng, Wu Hao, Qin Yue, Zhao Xueyi, Written by: Wu Hao)

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