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Company closure figures in Guangdong disputed

By Chen Hong (China Daily)
Updated: 2008-11-18 08:16

SHENZHEN: Official figures show that only a little more 7,000 companies in Guangdong province closed down or moved out in the first nine months of this year, and not 50,000 as reported in the media.

"Statistics compiled by the administration for small- and medium-sized enterprises (SMEs) of Guangdong, show a total of 7,148 companies closed or moved out from January to September," Liu Huanquan, director of Guangdong SMEs bureau, said.

The Guangzhou-based Information Times reported last Tuesday that more than 50,000 companies in Guangdong closed down, quoting figures from the provincial bureau of statistics.

"The figure includes those that closed, suspended businesses or moved out from the province," Liu was quoted by Guangzhou Daily as saying Monday.

Most of the SMEs that closed were located in Pearl River Delta area, Liu said.

Dongguan led the list with 1,464 closures, followed by Zhongshan, 956; Zhuhai, 709; and Shenzhen, 704.

Many were engaged in such industries as textiles, plastics, electronics, ceramics and construction materials.

Liu said the different statistical figures mentioned could be due to some companies closing at the end of last year but only having their operational licenses canceled this year.

"Our figures are more accurate because they involve the period from January to September," Liu said.

Some of the SMEs had moved their factories because they wanted to upgrade, he said.

About one-fourth of 407 SMEs in Huizhou had relocated from the start of this year.

The Guangdong provincial government will invest 180 million yuan ($26 million) annually for the next three years to support the development of SMEs, Liu said.