Henan 45 Hardware and Electromechanical Union

Background information: On August 18, 2010, Henan Business Daily published an article titled “The Establishment of Exporting Electromechanical Products Export Association of Henan Enterprise Baotuan International Market”: The export strategic sales alliance of electromechanical products of Henan Province was announced on August 17th. , 45 electromechanical product manufacturing enterprises and foreign economic enterprises signed the “Memo”, and according to the contents of the memorandum, the foreign economic and trade enterprises participating in the alliance invested overseas to build factories, contract overseas projects, and foreign aid projects to preferentially purchase the electromechanical products of alliance members. At the same time, foreign companies participating in the alliance have taken full advantage of the advantages of multiple overseas outlets and rich customer resources, and actively promote the alliance of mechanical and electrical product manufacturing companies to overseas business associations and important customers to help them explore the international market.

When I saw this news, I thought about the news that occurred in July of this year in the field of home appliance channel providers. At that time, 60 local home appliance channel distributors in Beijing announced the formation of consumer electronics channel business alliances. These alliances are on the third and fourth lines. The retailers that occupy the leading position in home appliance retailing mainly occupy the urban and rural markets. Many insiders speculate that this is a reflection of local distributors’ desire to obtain equal competitive status with Suning and Gome’s two major retail giants.

Unreasonable allocation of resources becomes a battle "landmine"

The Beijing Consumer Electronics Channel Alliance has a similar approach to the "reporter" combat law of Heyue Enterprise. The only difference is that the 45 electromechanical enterprises in Henan want to seize the foreign market and develop local industries. However, the author believes that the fuse of the incident is essentially the same, and in the final analysis, the allocation of resources is irrational. Foreign brands have always been relying on their absolute advantages, leading product prices and supply cycles, and eroded the domestic domestic electromechanical market at a pace of rapid development. As time passes, the domestic electromechanical industry will have no way to go, and the future of national industries will cause concern.

The frontline coalition has a lot of courage, but some people can not help but ask that China’s hardware and electronic machinery industry has been behind the modernization industry for nearly 50 years. It has always been in the historical process of developing with an unstandardized and ununited development status. It has long been advocated by economic experts. Why did the local electromechanical companies form strategic alliances and why did they not see a big move, but at this time they were so high-profile in the media spotlight?

The author believes that from the beginning of reform and opening up, when Deng Gong supported the introduction of foreign investment and encouraged the non-public ownership economy, many entrepreneurs were ordinary people who had deep-seated ideology of small-scale farming, and stood in the position of “plant manager” and “manager” rather than “entrepreneur”. They focus more on the immediate interests and overlook the long-term development prospects. Therefore, the development process of relative malformations has caused the consequences of the current operation is not standardized, technology is not enough innovation and so on.

It is not easy to reverse the current "PK" situation with foreign goods. However, Henan enterprises are willing to create an experimental field for revitalizing the national industry in such a large-scale alliance. Their courage is commendable.

The three major fire index issued a "recovery battle"

I think the following three factors should make them willing to take a risk.

(I) Smelling the smell of exchange rate warfare The enterprises that signed the "Memo" also include big companies such as Angang Group, XJ Group, Pinggao Group and Zhengzhou Yutong Group. Smart entrepreneurs always have a predictive ability. They can accurately smell business opportunities in a complex economic and political environment.

As we all know, the increase in the value of *** relative to foreign importers is a cost increase, then the number of Chinese exports will be reduced. The United States has been pegged to the issue of the exchange rate of the *** recently and has repeatedly demanded the old tune of the appreciation of the ***. Morgan Stanley economist Wang Qing also pointed out: “The appreciation of *** will be a long-term phenomenon, and the pressure for appreciation that will be faced in the second half of the year will increase significantly unless China’s resolute structural reform efforts can quickly rebalance the economy. And therefore, the growth of ** reserves has been greatly reduced."

It can thus be seen that the Yuxi Enterprises are playing a preventive role against the possibility of a reduction in the amount of export trade that may occur in the future, and preemptively occupying foreign markets will undoubtedly be able to better withstand the “cold economy”.

(II) The change in attitude of the Chinese government boosts morale The recent Chinese fastener warfare can be said to make the majority of Chinese people, especially fastener companies, proud and elated. This is the first case of dumping of fastener products initiated by China. Although the final anti-dumping duties ranging from 6.1% to 26% were far lower than the 64.4% expected by domestic companies, it was at least a kind of counterattack. The ambition of our national industry.

According to statistics from the World Trade Organization, there were 201 anti-dumping cases in 2009, of which 77 were for Chinese products. Of the 39 anti-dumping cases received by the WTO in the first four months of 2010, 12 were for Chinese products. According to Zhang Feng, deputy secretary-general of the Fastener Import & Export Enterprises Association of Jiaxing City, Zhejiang Province, “When EU high-grade fasteners are dumped into China, China’s fastener companies will only be able to compete at the low end and will not be able to achieve industrial upgrading. "Zhang Feng said that it was precisely in this situation that China launched an anti-dumping investigation against imported fasteners from the EU.

The Chinese government’s attitude from the unanimous silent endurance to the current public counterattack undoubtedly embodies the importance attached to the electromechanical market. Although it is mainly market regulation and control, it is absolutely indispensable for the macro-control of the “mother-in-law” government.

(III) The battles are piled on each side of the battlefield. The US government has always been very hard on the protection of steel. Before the 1990s, the United States imposed countervailing duties on various steel products exported to France, Italy, Britain, Germany, Spain, and Switzerland. . Since the beginning of the 1990s, the United States has imposed countervailing duties on steel imported into the United States from four British companies, including British Steel Corporation and United Engineering Steel Co., Ltd., on the grounds that these companies were originally state-owned enterprises and received government subsidies. In 1988, they changed to Privately, the original government subsidy will be transferred.

The United States' "unwavering protection" attitude has made many countries unhappy and helpless. Its emphasis on steel is willing, and it is mainly because, on the one hand, steel is a labor-intensive industry that can solve a large number of employment problems. Second, the U.S. government Not only shrinking manufacturing industry is worried.

Similarly, China’s electromechanical market has also played a very important role in the national industry. Although the United States has always restricted imports, there are still cakes. Then why don’t we “trace our teeth” and use the alliance’s self-protection method to contend with the United States’ exclusivity? What about the pattern?

The revitalization of the national industry is a long-term battle. Of course, the “recruitment operations” of the enterprises can effectively seize the foreign market. The answer to increase the export trade volume and revitalize the local national industry is not too early to reach conclusions, but the author is still a Chinese entrepreneur. It is exciting and exciting to be able to seize the opportunity to develop the local industry. Imagine 45 companies registered their names on the "Memoirs" and form a coalition. Is its patience comparable to the martial arts master of Huashan Mountain?

However, I also believe that there are indeed too few products with higher added value in China. If industrial upgrading and technological innovation are not carried out, this alliance front will soon be destroyed because alliance companies cannot provide the electromechanical products needed by both parties. It will certainly reach out to foreign brands. Since then, localization will never be realized. Therefore, the revitalization of national industries and the battle to regain lost ground will also be a long-lasting PK tournament. It is hoped that the Yuqi Enterprise Alliance will be the first to recover the battle.