Why China's hollowed-out manufacturing hub is pinning its hopes on a hi-tech revival

He Huifeng for South China Morning Post:  The four-storey building in Dongguan used to be a busy factory, full of young migrant workers.

Recently resurrected, with a shiny, glass curtain wall replacing dusty concrete, it is now home to dozens of domestically funded tech and internet start-ups.

Opened in the 1990s by SAE Magnetics, a subsidiary of Japanese electronics giant TDK, the factory employed around 20,000 workers at its peak and made hard disc parts for companies including Samsung, Toshiba and Fujitsu.

But despite being portrayed as a shining example of Dongguan’s economic miracle, which saw the city turn into China’s undisputed export leader and the capital of its labour-intensive manufacturing, it lost its lustre over time, along with tens of thousands of similar factories across the city.

The old-economy stalwarts, battered by soaring labour and raw material costs and falling orders from overseas, shut down or shrank. It now charges its new tenants, Chinese e-commerce and hi-tech companies, rents that are two or three times higher than it could ask before.

That is all part of a broader transformation in Dongguan as the city, between Shenzhen and Guangzhou, looks to become a smart manufacturing base focused on the emerging mainland market, banking on the rise of domestic tech brands and booming domestic consumption.  Full Article:

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

New M12 A-Coded Connectors from binder are now Ecolab and FDA certified

New M12 A-Coded Connectors from binder are now Ecolab and FDA certified

binder USA, LP, has expanded the M12 product family with the addition of the M12 A-Coded Connector, which is now certified for both Ecolab and FDA Code of Federal Regulations (CFR) Title 21 standards. The M12 A-Coded connectors are extraordinarily durable and IP69K-rated, ideal for harsh-duty and washdown applications in the food and beverage, pharmaceutical, and chemical industries. Available in 3, 4, 5, 8, and 12 contacts, the high quality stainless steel locking rings (V4A) and gold contact plating can also withstand UV exposure and shock and vibration.