Manufacturing in China - Second Ring Line Attack and Defense

Affected by the severe floods in Thailand, factories such as Nikon, Sony and Canon were forced to suspend production due to water intrusion, and the scope of Japanese companies’ damage continued to expand. In China, in the middle and late October, there was an incident in which the mainland plant of the US apple's Taiwanese supply chain company was ordered to stop production.

The EMSOne company's website also reported on this incident with the theme of “the Suzhou Suzhou Plant discontinued production due to emission odor, or affected the supply of Apple and HTC Electronics”. On October 17th, Catcher Technology announced that it had been ordered to suspend production due to the company's factory in Suzhou emitting odors.

On the next day, October 18, the industry also reported the mainland factories of Foxconn Taiwan (FOXCONN = Hon Hai Precision), Touch Panels WINTEK, and TPK (Hong Kong) in the apple supply chain. The company was ordered to stop production due to the same environmental problems, but all three companies denied this.

Can be a good sales apple ultra-thin lightweight notebook computer "Macbook Air", as well as Taiwan Hongda International Electronics (HTC) smart phones to provide metal casing manufacturers. According to reports from Taiwan media, the main customers of smart phones are HTC and Research In Motion (RIM) in Canada. The main customers of notebook computers are Apple and Dell. And can be from the third quarter of 2011 to Sony Ericsson to provide smart phone casing. Wu Chengyi, deputy general manager of Kecheng Finance, disclosed at an investor briefing held in August 2011 that the proportion of smart phone casings in the company’s operating income has reached 40%.

According to news reported by Taiwan media, after receiving complaints from residents about odors, the mainland administrative department conducted a survey on the Suzhou plant in Kecheng in September 30th, but all indicators met the standards. Followed by the National Day holiday, the factory was on holiday from October 1 to 7 and started production on October 8. However, there was news on the market on October 12th that the Suzhou factory was ordered to stop production. On the next day, October 13, there was another rumor that the factory's seven days off from October 1 was not a vacation but was related to The department ordered the production to stop.

A factory in Baoshan District, north of Shanghai, emits white smoke, opposite the building under construction. The price of the two-bedroom type is 990,000 yuan, and the three-bedroom type is 1.15 million yuan. Although it is even further away than Sanhuan (G1501 Expressway), which is about 25 kilometers from the city center, a residential building was still held at a press conference held on October 17th. Said that "the inspection of all production lines and the response to environmental protection standards will be completed by the end of October." Flood Tree’s forecast on the impact of the suspension of production on the results stated that “Although finished products and semi-finished products are in stock, the operating revenue in October may be reduced by 20%”.

Taiwan’s financial newspaper “Business Times” (October 19) pointed out that apart from the protests of the surrounding residents, there were other reasons for this incident. According to the newspaper, on October 15th, CCTV’s popular current affairs section “News Investigations” reported on the environmental destruction report of the Apple supply chain company’s mainland production base issued by the Chinese non-governmental environmental protection group in late August 2011. This may have an impact on the availability of factories.

The CCTV program reported that five mainland civil environmental groups such as The Institute of Public and Environmental Affairs (IPE) have issued the title “Another Face of Apple II.II” in January and August 2011 ( Report of The Other Side of AppleI.II). The report criticized Apple suppliers that have production bases in the mainland to pollute the surrounding environment and pose a threat to the health of residents. According to the report, in the 129 factories of Apple suppliers, 80 factories did not properly store and handle hazardous chemical products in 2010.

CCTV's "News Survey" is a section that tracks investigations and reports on current issues and major events. In addition to ordinary people, they also have tremendous influence on intellectuals and government officials.

The program's positioning for Apple is "by virtue of tablet PCs and smartphones sweeping the global IT industry overlord," and based on this interview with residents of the Apple supplier factory, civil servants, business and environmental groups members Many other people said that "Apple has not violated the law. However, it should be morally responsible for the corresponding responsibility of large companies and can not shift responsibility to the foundry business." The residents of the Suzhou plant that had complained of the emission of odors that harmed human health, as well as the general managers of Suzhou Suzhou Plant, also appeared on the program.

Taiwan media believes that local governments regard CCTV programs as "the meaning of the Party Central Committee." In order to evade the public opinion attack that this program raises, the local government has to take action to carry on the inspection to the success.

The author later also watched the program through the Internet, but can be responsible for the program stressed that "we meet the government's environmental standards set by the industry."

The communities in which residents who complained about the odors from the factory live and the factories that can be built are all located in the Suzhou Industrial Park in the east of the old downtown area of ​​Suzhou. The author inquired about the local real estate information network and found that the community was composed of high-rise apartments with a maximum of 33 floors, and the price per square meter was 9,000 to 10,000 yuan. In the case of a five-story, five-story, three-bedroom, two-room, two-family home (three bedrooms, two living rooms and two bathrooms), which was built for five years, the price is 1.35 million yuan.

Most of these industrial parks in China are constructed by developing large areas of farmland and mountains in the suburbs. Now it has been 30 years since the reform and opening up in the 1980s. As the industrial park itself continues to expand, with the advancement of urbanization, housing has also expanded to the periphery of the industrial zone. The situation of large factories adjacent to high-grade communities can be seen everywhere.

In this situation, the latest edition of the Taiwan weekly magazine "This Weekly" reported on the Kecheng incident and pointed out the "retreat into two" and three problems behind the incident.

What does it mean to “retreat into two into three?” Japanese readers may see this word, and may immediately think of the pop song song popular in the Showa era as “three steps and two steps back”. However, “retreating two into three” is not the meaning of this. . "Second" refers to the secondary industry, and "three" refers to the tertiary industry. Retreating from two to three means "to withdraw from the secondary industry to enter the tertiary industry," that is, "from the manufacturing industry to the service industry."

According to Baidu Encyclopedia, the Chinese version of Wikipedia operated by China’s largest search company, “Baidu Encyclopedia,” the term “retreat into two” was born in the 1990s when state-owned enterprises reorganized and eliminated. This is the slogan that the small and medium-sized state-owned industrial companies that have run into difficulties due to the absence of products have attempted to transition to the service industry.

This statement has been raised again after it was given a new meaning in recent years.

After the 1990s, major cities in China began to promote road construction and built double or triple loops around city centers. The capital, Beijing, is a typical example. Beijing has laid a 32-kilometre second ring road along the remains of the Ming Dynasty walls. At present, there are five ring lines surrounding the city.

In this situation, with the advancement of urbanization, land prices within the second ring near the city center have risen rapidly. The government continued to relocate factories near the Second Ring Road to the outskirts of the suburbs and built residential and commercial facilities on large open areas that were vacated by the factories. In other words, “retreating from two to three” is not only the meaning of the second and third industries, but also the meaning of the inside and outside of the second ring and the third ring.

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