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Dongguan exports bright prospects
The Dongguan plant is one of China's largest manufacturing bases. After a cruel year in the export sector, it is initiating production and hiring more workers.
In the first half of this year, Dongguan's exports dropped by 24%, and Li Yuquan, the mayor of Shenzhen’s 10 million northern population, said on Wednesday.
He said: "Dongguan is closely linked to the international market. The financial crisis has had a great impact on us.
Li Peng said that there are about 3,333 foreign-invested enterprises in Dongguan. As of the first six months of 2009, foreign-invested enterprises have been closed or relocated, with an investment of about 170 million U.S. dollars. This compares with the closure of 420 businesses in the same period in 2008. He once said that the worst situation may have ended.
He said that although the work situation in Dongguan is worse than last year, there have been noticeable improvements in recent months.
"Every quarter is getting better and better," he said.
In the field, there are signs that he is optimistic.
At a major Nokia manufacturing plant in Dongguan, the general manager of the plant, C.K. Cai Qichen, said that due to the increase in consumer demand for mobile phones, by the end of this year, its staff is expected to increase by 15% to more than 8,000.
In the first half of the year, export revenues have risen by 5% in equipment and exceed 100 million mobile phones each year.
Cui said 2010 will be similar if not better.
Harley Seyedin, chief executive officer and head of the Energy Department of the American Chamber of Commerce in Southern China, said that Guangdong Province’s electricity generation in April has increased rapidly compared with the same period last year, indicating that industrial output is rising.
"What does this mean? Those factories that still have more orders are closing the gap," he said.
Li Lanqing said that Dongguan’s economic growth has increased by an average of 18% per year over the past 30 years, but the city’s economy has only grown by 0.6% in the first half of 2009.
Li Peng said that this year's goal is to achieve 10% economic growth, but it is difficult to achieve this goal. "We are really under great pressure," he said.
But while exporters want strong Christmas orders from Western customers, others, especially smaller players, are not very optimistic.
Cheng Fengyuan, chairman of the Taiwanese Chamber of Commerce in Guangzhou, said: "Many people still do not expect a substantial increase in orders.
"If we look at whether there is a more sustained economic recovery, we must wait until the third and fourth quarters."