Dongguan companies sniff opportunities in crisis

06 Dec '08

2 min read

China, has not stayed insulated from the recessionary trends witnessed in recent days and since the country has a very high export oriented industrial base, it has had to bear the more so than other economies. The second level to bear the brunt are the industrial provinces and towns which till a few months back were humming to the sound of machines and churning out products to feed the ever growing appetite of the globe.

Dongguan, an industrial city in Southern China is also one of the cities to feel the heat of the crisis. According to experts, winter has arrived in the northern regions with the first spell of snow, but the city which though lies in the south also is facing a bleak winter, but albeit of a different kind.

In the looming shadow of the turmoil, Dongguan is standing mute witness to companies folding up or laying off workers which seemed unimaginable just a few months ago. The mayor of the city had confirmed a few days ago that nearly 714 companies had folded up since the crisis unfolded, but experts were opining of more than 900 companies doing so.

But one could not ignore the phenomenon of a few enterprises, which are carefully and skillfully dealing with the economic difficulties and which has been regarded as the greatest challenge the country is dealing with, since the country opened its economy and undertook reforms.

A lot of enterprises in Dongguan city are sniffing and seeking business opportunities amid the current crisis. This is the time they feel, to look for value investments to increase capacity or strengthen their internal management in order to be prepared to meet the next wave of growth.

This thinking has come as a shot in the arm for ailing but well organised companies who can expect to be saved from the current situation by these companies on prowl for value picks.

Fibre2fashion News Desk - China

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