The Government Supports The "Excessive Effect", And The Chinese Shoe Industry Is Calm.

Lao Chen didn't expect that the new production line was left idle so quickly.

"Now the export situation is not very good, mainly in Europe, the domestic market is also general, the competition is too intense."

Lao Chen, who has his own brand of children's shoes, now has a bit of exhaustion when talking about it.

In 2011, the overseas market improved, the domestic market was hot, and the footwear industry was listed as a key revitalization industry. The factory of Lao Chen made some expansion, but the days after that were not as satisfactory as Lao Chen's imagination.

This year has been a particularly difficult time. Lao Chen can only deal with one line after another.

Last month, there were a lot of new economic stimulus policies.

"No need for policy support or support is temporary, sooner or later, we must face it."

Lao Chen seemed very sensible this time.

"Hard work is an inevitable choice. Two years ago, we should not rush into the production line. Now we are all shelved."

Many of the companies that I used to expand and buy were regretted.

He said.

The business owners of regret are quite a few.

Xu Xiaonian, a professor of economics and finance at CEIBS, also said that most of his students, who were eager to expand in the past few years, regret most.

Stimulus effect

In 2011, the cold war of the financial crisis has not receded in the past few years. Some domestic enterprises are beginning to move against the current. Most of them are carrying cash in search of their own direction of development.

Lao Chen's business is one of them.

In April of this year, he took him for the first time.

To participate in the China International Footwear Exhibition, "we only rented a small booth this time, first showing a little face at the exhibition, and coming back every year."

His remark is still fresh.

This brand of children's shoes is their first brand.

Before, Lao Chen was a ranking cadre in Shanghai, and his wife, Ms. Li, was the chairman of the company.

After the financial crisis, export enterprises were in danger, and the domestic market was hot.

As the export market can not be abandoned, Lao Chen even resigned from public office and devoted himself to his own brand.

Lao Chen came to Beijing to take part in China.

Another goal of the Expo is to find a way for its new brand to enter the big market such as Xinguang world.

"Their entrance fees are very high, and no one can get in at all."

He said.

Although he failed to enter the new world, Lao Chen's business is getting better and better.

"The overseas market is getting better again. Now the factory is very busy.

We have added four production lines, which can not be done and will be subcontracted.

Self created brands are still in progress, but obviously some of them are incompetent.

In the second half of 2011, Lao Chen always smiles when he talks about business.

Not only Lao Chen, but many shoe and clothing enterprises poured money into expansion and merger.

In addition to seeing opportunities hidden in the industry, the encouragement and policy support from the macro level are also the reasons why some big enterprises "wait for action".

In November 9, 2010, the Chinese government announced the implementation of large-scale economic stimulus measures, and invested 4 trillion yuan in total before the end of 2011, for infrastructure construction and increasing bank credit.

Since then, some key industries have been listed as key areas of revitalization, and textile and clothing are also among them.

"With the support of government policy, enterprises have great enthusiasm for expansion or merger.

There are some supporting policies in terms of capital, loans and taxes.

Lao Chen was not an anomaly at that time, and many enterprises regarded it as an opportunity of their own.

Prudent response

In fact,

Far from being the main industry benefiting from "4 trillion".

Relying on the "investment" engine, the Chinese government quickly pushed the accelerator to the bottom and soon pulled the Chinese economy from the bottom.

Now, "drug efficiency" is excessive, the European debt crisis continues to ferment, and the Chinese economy seems to be pushed back to the edge again.

Since April, investment, consumption and industrial added value have all reached a new low for many years. The growth rate of electricity generation has dropped to varying degrees.

After the executive meeting of the State Council has set the tone for China's economy to grow steadily, many people are envisaging the "4 trillion 2 edition".

This has also made it more important to increase investment.

But this time, the business is clearly sober and sensible than the government.

Lao said: "the encouragement policy and relevant preferential measures are important reasons for large enterprises to dare to expand against the market in the current economic situation, and even some enterprises are supported by loans acquired through expansion of mergers and acquisitions, so as to support the flow of funds within enterprises, where money flows to nowhere."

"As long as the stimulus policy is over, the excess capacity can not be digested. Now the domestic and foreign markets are not so good. My production line can only be idle."

He said, "as early as I knew, I should still try to pform and not expand my mind at that time. At that time, the 4 production lines also spent about 2000000. Fortunately, no other factories were built."

Xu Xiaonian also admitted in the 500 forum of Chinese foreign trade enterprises: "many of my students, who were eager to expand at the time, now regret most of them."

Zhu Sheng, a preparatory group for the equipment manufacturing industry investment fund, once said directly: "although the machinery industry is in a period of rapid development from the perspective of export growth rate and export proportion, the start-up of the international equipment market takes time, and how long the domestic purchasing power is stimulated by the current policy, and how long it will last, it is a fog.

In the first half of the year, subsidies have been used almost everywhere. Many purchasing power in the second half of this year may have been prepaid in advance. Whether the industry with good performance in the first half of the year will still perform well in the second half of this year?

This is also the problem of most industries at that time.

Mei Xinyu, a researcher at the Ministry of Commerce, said: "the biggest bubble in China's economy is actually a productivity bubble, that is, a serious surplus of capacity. This bubble reached a climax in 2008.

Export manufacturing capacity expansion, while local government investment and real estate development is also overheating stage, resulting in expansion of capacity.

"However, after the international financial crisis in 2008, the demand for foreign investment reduced, especially the very loose monetary policy, which further stimulated the expansion of the capacity of enterprises.

In this way, an excess cycle is formed.

He said.

Lao Chen said, "we do not have a very good way now, but the direction is quite clear, we must work hard at the top end, only in this way will the profits be guaranteed."