Yiwu exempt small micro-enterprise from administrative fees to encourage the development of headquarters economy – Yiwu News original news

Zhejiang Online, Hangzhou, March 28 (Reporter Yeh Hai) Yiwu, Zhejiang, the business sector today the introduction of the Yiwu Industrial and Commercial Bureau boost the reform of the pilot service economy developing a number of opinions “clear” exempt from administrative fees of the small micro-enterprise “to cancel the small and medium-sized micro- business registration (change) registration fee, annual fee, county (city) business license fee and other expenses.

  Launched the “opinions” from the market, the main access to the financing channels to broaden and optimize the development environment to cultivate the foreign main deepen brand building eighteen initiatives to boost the comprehensive reform of the work of Yiwu International Trade Services Yiwu local economic development.

  In an effort to reduce the principal venture “opinions” in addition to explicitly exempt from small micro-enterprises administrative fees, “external, but also proposed to exempt from the individual businesses and farmers’ professional cooperatives registered (change) registration fee (city) business license fee and other expenses.

  Zhejiang reporter saw the “opinions” also explicitly encourages the development of headquarters economy, clear enterprise approved by the business sector can use the ‘headquarters’ in the name, ‘regional headquarters’, ‘R & D headquarters’ and so forth “.

  Yiwu City Secretary for Commerce and Qiu increase in France, said the local business sector will have all types of investors to invest in new energy, new materials, new medicines and other six emerging industries and high-tech industries to support, encourage enterprises to increase new product development efforts and capacity science research with the development, support for universities, research institutes and enterprises to set up industrial technology innovation entities.

Why are Products in Yiwu Market SO…..Cheap?

A tea mug a US resident finds in IKEA or other stores for at least a dollar is on sale in Yiwu for 5 cents. A sledge hammer is going for $1.40, an ax for chopping wood for $1.20…

Almost every product is on sale for about one-half, one-third, or one-tenth of the lowest price available in the cheapest discount stores of Europe and America.

What’s more, the quality of these items seemed in no way inferior to the products on sale in store around the world. In many cases, in fact, they are the same goods.

Why Yiwu market can keep such low prices?

#1 A Huge, Cheap Supplier Base

Yiwu with its neighborhoods forms the largest private/family owned factory base in China. After 20 years of running their machines day and night, they already fished off many factories in Europe and America.

Now they are the most efficient manufactures in the world for socks, buttons, zippers, straws, plush toys, jewelry accessories, hardware and tools… What’s more, they’re not only the largest, but also the cheapest.

Let’s see have a look at Mr. Jinwu’s factory:

Mr. Jinwu’s house, a 4 store building of around 800 m2 with a yard, was built 7 years ago. Now the first floor is his warehouse and workshops, the second floor part as his office and part as workshops, the third floor is where his family live, and the fourth floor is dorms for his workers.

They produce sun caps according to orders. When there are no orders, these workers doing other part-time jobs.

Mr. Jinwu pays electricity and water at residential rate, instead of industrial rate. That’s to say, he pays 50%-40% less on electricity and water every month than other factories located in industry zones. Plus zero house rental, zero insurance and medical care cost for his workers…

You can imagine how competitive his price is! There are tens of thousands of factories like this in and around Yiwu. How could anyone else beat them on prices?

# 2 Scale Effect

As so many factories get together, including many big ones, the scale effect shows its power.

Logistics cost, marketing cost reduced. Parts, accessories, materials, even production lines prices all reduced significantly.

The more factories arise, the lower prices there will be.

# 3 Big Battleground

As Yiwu market became the world largest wholesale market for daily using items, more and more factories, not only factories from nearby areas, but also factories from all over China, are putting their products on this market, to fight for a bigger share.

These ruthless competitions ended up with a 2-3% profit margin for many products.

# 4 Strong Government Support

While all China looked free market as an evil character of capitalism, Yiwu already opened its free market in 1982, which is one of the earliest free markets in whole China.

In the last 30 years, Yiwu government put almost all their money and energy to build markets. Then rent shops to venders at very low rentals. Private companies are not allowed to get into market building business. All markets in Yiwu are built by government and run by a government appointed company.

In this way, Yiwu attracts more and more vendors from all over China by its low shop rentals. As a result, factories from cities like Wenzhou, Ningbo, Shantou, even Guangzhou, where tons and tons of products were produced each day for exporting, came to Yiwu market in flocks to sell their products.

Yiwu market offers most-favored-vendor treatment to factory outlet centers. In recent years, they put more efforts bringing in more national top brands and global brands, all in the most favored treatment, to improve products quality level.

With these strong backup from government, Yiwu market kept prices at an extremely low level for three decades in the past. And there shows no signals that this situation will change soon.

# 5 “One-Cent-Profit” Making Money

Businessmen of Yiwu and its nearby areas are famous for hard-working and agility. They’re keen on every “one-cent-profit” businesses opportunity .

For example, the profit of one sewing needle is just about 1/10 cent RMB, the profit of one straw is just 1 cent RBM. But if you can sell containers of them in one month, you can still earn a descent profit.

As long as there is a profit, no matter big or small. These so called “ants businessmen” would desperately go for it. This is probably one of the most important reasons why Yiwu market has such cheap prices.

via Why Yiwu Market Cheap?.

Yiwu PV encounter the big rod of the U.S. “anti-dumping” – Yiwu News

PV products suffered the U.S. “anti-dumping” stick the

Yiwu solar exports to emerging markets mainly affected

Aloft by the United States to the Chinese PV products of countervailing and anti-dumping “against” big rod, and finally slowly whereabouts. U.S. Department of Commerce announced on March 20th, preliminary results of countervailing duty investigation of photovoltaic products, countervailing duty on imports from China of solar panels set up to 4.73 percent, the lowest was 2.90%.

After three postponed the final announcement of this result, the industry took a deep breath. After all, this result is far better than the worst expected – up to 100% of tariff rates.

Commission by letter of the person in charge, Yiwu, a small number of the Yiwu solar manufacturing companies, products, domestic sale and export to the international emerging markets mainly Americans picked up the “dual” big stick, solar energy companies in Yiwu.

“Dual” big stick slowly whereabouts

U.S. imposition of countervailing duties to China’s solar photovoltaic companies from the United States are upset. According to statistics, in 2011, U.S. imports from China, value of solar panels in a substantial increase to $ 3.12 billion, the U.S. solar market differentiation trend, due to the excess supply of U.S. local solar panel manufacturers into the plight of product prices plummeted.

Solar panels levy appeal on October 19 last year, 7 PV companies in the United States to the United States government demanded that the U.S. imports from China more than 100 percent tariff, accused the Chinese PV products to the U.S. dumping, and to accept a substantial government subsidies.

Experts predict that the U.S. Department of Commerce will be published in June and a final determination of countervailing duties on Chinese PV products. Before the commencement of the countervailing duty, the U.S. International Trade Commission U.S. PV companies need to prove that indeed been an infringement of the Chinese PV products.

Trade protection dog in the manger

The preliminary results clearly lower than expected.

Nevertheless, the community still expressed dissatisfaction with the ruling. China’s Ministry of Commerce, criticized the investigation of PV products in China is a performance of “trade protectionism”, while the solar panel manufacturers in China and their customers in the United States, warned: “The anti-dumping duties will lead to some of the U.S. consumer to bear the economic losses, while some workers will be unemployed. ”

The U.S. “double reverse stick moves light than expected, the market still worried about. Insiders said that although this may lead to solar equipment manufacturers in China to shift overseas production capacity, but relative to the renewable energy industry, the U.S. government’s decision on the trade negotiations between China and the United States, the two largest economies will will have a greater impact.

Yiwu enterprises are little affected

Yiwu enterprises affected. “Yiwu Commission by letter of the economy operating chief of Jinbin Feng Yiwu is currently a small number of solar manufacturing companies, production applications, the foreign trade products are mostly exported to Africa, Southeast Asia and other international emerging markets.

Zhejiang Golden Jubilee Solar Equipment Co., Ltd. is located in Beiyuan is a professional manufacturer of solar power systems, street lighting system, private enterprises, the company general manager Jin Yang Hui, told reporters: “We produce solar power within the system contains solar panels, but we the export of the system, and we export mainly to Africa, the Middle East, South America and other emerging markets, solar products sold in the U.S. and European markets basic, preliminary results for the United States ‘dual’ of our business temporarily affected. ”

Although the United States on China solar impose preliminary countervailing duty, Yiwu, but the industry it is recommended that when the face of international trade barriers, especially Europe and the United States the so-called “dual”, be sure to take measures to cope with. Meanwhile, enterprises should actively explore diversified international markets, to prevent the hang of the “tree”