At 3:10 in the afternoon of May 7th, the top head of OLYMPUS, Shenzhen, Komatsu, announced to all employees through the broadcast that the OLYMPUS Shenzhen factory will stop the labor immediately from day to day. Although relevant news came out last Friday (4), it was still too sudden for more than 1400 employees of OLYMPUS Shenzhen factory. It was too unexpected. We received the next half of the salary notice in the second half of the year. we didnt think that we would have new products in Shenzhen to do in September this year. in April 16th, 150 people with a monthly salary of 5001 to 8000 yuan were posted on the Internet. At present, the Shenzhen OLYMPUS Union has issued an urgent initiative to stop the shutdown of the company in the absence of a compensation scheme that has not been identified with the companys trade unions on an equal basis and can be identified by the employees. In addition, a few years ago, Shenzhen Olympus Corporation opened the staff to launch the channel, can lead to the monthly salary of the employment subsidy to leave, for example, for 5 years to take 5 months of employment subsidies, but limited to the Company Limited, according to the securities times, many of them are not. There are old employees who have opened up the employment subsidy department, more than 50% are older employees who work for more than 15 years. Photo source: Securities Times The decline of traditional cameras The public information shows that OLYMPUS (Shenzhen) Industry Co., Ltd., a fully funded subsidiary of Japan OLYMPUS Co., Ltd., was established in December 1991. It specializes in the development, design and manufacture of traditional cameras, digital cameras and other related products. In the last 20 years, Shenzhen OLYMPUS had more than 15000 employees at its heyday. It was not only the headquarters of OLYMPUS Asia Pacific region, but also one of the largest cameras and parts production bases in the group. At that time, a division of labor was set up in Shenzhen. But with the decline of traditional digital cameras, OLYMPUSs development in recent years also encountered many difficulties. In 2011, an accounting fraud scandal occurred in Olympus Corporation, and the restatement of the financial statements resulted in a very poor financial situation. After the financial scandal, OLYMPUS China said, the event has not spread to China, the development of the company as always, business is normal. The Securities Times said that in Shenzhen, OLYMPUS had once been a large employer, but in recent years, it basically did not recruit workers, and the monthly salary of general practitioners was around 4000 yuan. For the reasons for closing the factory, OLYMPUS official said it was the impact of macro - economic factors such as the shrinking of the worlds camera market and the change of Chinas social and economic environment. The companys business prospects are severe and the group has to adjust its business. Since 2008, with the popularity of smartphones, the size of the digital camera market has gradually shrunk, and the operation rate of Shenzhen factory, the main factory, has fallen to 20% in the vertex period since 2008, the chairman and general manager of the company wrote. As a new business, the export business of the income generating pillar is also accompanied by technological innovation into the time of product renewal, and many models terminated in 2017. In addition, the Shenzhen plant has been put into production for 24 years, and now the equipment is getting old and there is no room for export business, so the decision to stop production and shutdown is made. Photo source: Securities Times Photo source: Securities Times Although the Shenzhen factory has been shut down, Shenzhen OLYMPUS is currently profitable, mainly from the groups point of view, mainly due to the strong sales of medical equipment. According to OLYMPUS data, more than 7 of the global endoscope market share in the world is occupied by OLYMPUS. In 2017, the income of medical related business reached 77% of the total revenue of Olbas. OLYMPUS gastroscope map According to the Japan economic news previously reported, OLYMPUS may be in the recent digital camera manufacturing plant for business adjustment. This may reduce the output of ordinary consumer digital cameras in order to improve the capacity of high-end digital cameras and non - reverse mirror cameras, thus gradually fading out of the general consumer - class digital camera product line. According to data from research institutions, Canon is now the top chair in Japan for SLR cameras, fixed lens cameras and lens market share, while OLYMPUS is the king of the camera. However, while OLYMPUS is likely to shift the focus of its camera business to a highly market - free mirror - free camera in the future, OLYMPUS spokesmen have said, no anti camera boom is a whole decline in the digital camera industry. The gate of OLYMPUS factory in Shenzhen (photo source: Daily Economic News) According to the statistics of the Japanese camera industry association, the shipments of small digital cameras in the world are still more than 100 million in 2010, and in 2016, shipments have been reduced to 12 million 580 thousand. In the face of the huge impact from smart phones, other camera companies are also actively seeking business transformation. Lycra, Cai Si, SONY and other manufacturers have been working with a number of mobile phone companies to present their professional optical technology in the lens of mobile phones. Is the withdrawal of the factory affected by the suspicion of bribery? In reporting the matter, Japan Kyodo referred to a suspected bribery scandal involving OLYMPUSs Shenzhen factory, but the company denied that the action was related to the action. The OLYMPUS Shenzhen factory was suspected of solving a dispute with the Chinese tax department, paying the costs to local companies in 2014, and the suspicion of bribery surfaced, Kyodo said. OLYMPUS denied the case by internal investigation, but lawyers in the community questioned the companys response to the lawsuit in January this year. After concealing huge losses, the compliance problem of the company has not yet been resolved. According to the New York Times, according to OLYMPUSs internal documents, in 2006, Shenzhen customs inspectors found that there were contradictions in the factorys inventory records. Foreign enterprises in the Shenzhen special economic zone can import tax-free raw materials, provided that the products assembled in the special zone are exported to other countries. These products are not allowed to be sold in China, otherwise the local products will be faced with unfair competition. Shenzhen customs prosecutors found that the amount of raw materials imported by OLYMPUS to the HKSAR did not match the number of finished products shipped abroad. Such a discrepancy indicates that a company may be in breach of the requirement not to sell related products in China. For a huge difference of up to $694 million, the companys internal investigation team blamed the problem on simple operational errors made by workers when they put inventory data into the recording software. Then, in 2013, OLYMPUS hired the name of the Anyuan company, its canteen operator, as its sponsor. Through the operation of the Anyuan company in the government, the case of eight years entanglement, which should have been required to pay at least 9 million dollars in fine and to pay the arrears of arrears, was inexplicable. The internal document also showed that OLYMPUS employees had tried to bribe Chinese officials before, and according to the governments original punishment, OLYMPUS would lose its tax free trade privileges in Shenzhen, and how it really was, which would raise the cost and hit the original unprofitable camera business. According to the New York Times, the matter has attracted the attention of the US judicial department, but there is no choice to file the case; and for the internal documents quoted by the New York Times, OLYMPUS only acknowledged the internal investigation of the business in China and no denial of the details of the media exposure. Earlier, the U. S. Department of Justice accused OLYMPUS and the United States branch to offer rebates to American doctors by arranging travel to Japan to get medical equipment orders; in March 2016, OLYMPUS acknowledged the existence of misconduct and settled the medical equipment with $623 million. Foreign companies fly south? There has been an endless stream of news about the abolition of Chinese factories in recent years. In addition to OLYMPUS, the latest news is that Samsung also announced in March 30th that its factory in Nanshan, Shenzhen, should be abolished as a whole. According to sources, the demobilization mainly stems from the fact that the production base has been transferred to Vietnam, and business production has also been transferred to Vietnam. As for the choice of foreign companies to move factories away from China, there are two problems in this reaction: the decline in the competitiveness of the products and the rising cost of China. Take Samsung as an example, when it comes to the reasons for the abolition, the factory official said, the company began to turn to the production of communication base station equipment in 2013. But after nearly 5 years of hard work, it did not achieve the desired goal. Looking back, it seems very difficult to enter the Chinese market, so we decided to cancel the processing plant. Another insider said in an interview with reporters, the factory is only responsible for manufacturing, research and development and sales by other companies. In fact, 4 to 5 years after the transformation of the factory, Samsung has not yet sold a network communication device in China. In recent years, factories have been receiving orders from South Koreas headquarters. The responsible person also agreed with this statement. Samsung headquarters has predicted that it will be more difficult to enter the communications equipment market in China last year. Cost competition is still inferior to HUAWEI and ZTE. As the development of the network base station market is a systematic project with many comprehensive factors, Samsung has so far failed to get through the Chinese market. Even with the advent of the 5G market, from the current situation, the opportunity for Samsung to enter the Chinese market is relatively small. But some companies, such as Nike and Adidas, have already moved the main production lines to Southeast Asia, such as Nike and Adidas, but they are still increasing their strength in the Chinese market. While Samsung has abolished Chinese factories, it has also increased its layout of Southeast Asian production lines. Up to now, the number of employees in China is less than 3000 people, while the number of workers in Southeast Asia has reached 140 thousand, 40 thousand more than China in the prosperous period of the year. In addition, Samsungs investment of $10 billion in Vietnam last year accounted for about 15% of Vietnams total industrial output last year. This reflects a great change in Chinas efforts to attract international companies to set up factories with preferential land tax policies and cheap labor. In Guangzhou with more than 20 thousand foreign companies, foreign companies have occupied more than 62% of the total industrial output value of the whole city. In Shanghai, foreign investment contributed to the total import and export of 2/3 and the total industrial output value in Shanghai, while in Suzhou and Xiamen, foreign enterprises accounted for the total industrial output value. Dont reach 67% and 70%. At the same time, the foreign-funded factories have also contributed about 30 million of the jobs to China, and the data may be two times more if they are added to the related domestic enterprises. But in another step, it is not a good thing that part of the labor-intensive foreign enterprises are withdrawing from China. Liu Xiangdong, deputy research fellow of the research department of the China International Economic Exchange Center, has previously said that the flow of foreign capital in China has experienced a process that adapts to the transformation of Chinas economic structure. In the course of the transformation, the total amount of attracting foreign capital has declined slightly, but the increase in the number of new enterprises shows that many enterprises still regard China as the primary investment destination, and realize the changes in China and adjust the investment structure. According to Liu Xiangdong, because of the rising part of the factor cost, the labor - intensive or export oriented foreign enterprises do have the phenomenon of investment withdrawal, but the enterprises, such as advanced service industry and high-end manufacturing industry, are facing good opportunities in China. According to the previous data issued by the Ministry of Commerce, the first two months of this year, 8848 new foreign-invested enterprises have been set up in the country, up 129.2% from the same year, and the actual use of foreign capital is 139 billion 400 million yuan, with a year-on-year increase of 0.5%. Among them, the high-tech manufacturing industry has maintained a growing trend. In the first two months of this year, the actual absorption of foreign capital in Chinas high-tech industry increased by 27.9%, accounting for 19.5%, and the actual use of foreign capital by 14 billion 530 million yuan in the high-tech manufacturing industry was 89.7%, and the manufacturing industry of pharmaceutical manufacturing, electronic and communications equipment, medical instruments and instruments and instruments have increased by 129.6%, 72.6% and 321. respectively. 8%, the actual use of foreign capital in high-tech service industry is 12 billion 720 million yuan. The practice of the local government also confirms the above scholars statement and the data of the Ministry of Commerce. Take Shenzhen as an example, in recent years, Shenzhen has been calling for cage changing birds, that is, to move out of low-end factories and introduce enterprises with high technology R & D capability. Some scholars believe that the relocation of individual factories is likely to provide an opportunity for the introduction of high-end scientific research enterprises in Shenzhen, and also creates space for the strengthening of independent innovation. Source: observer network: Wu Yakun, editor in chief: Li Tian Yi _NN7528 Among them, the high-tech manufacturing industry has maintained a growing trend. In the first two months of this year, the actual absorption of foreign capital in Chinas high-tech industry increased by 27.9%, accounting for 19.5%, and the actual use of foreign capital by 14 billion 530 million yuan in the high-tech manufacturing industry was 89.7%, and the manufacturing industry of pharmaceutical manufacturing, electronic and communications equipment, medical instruments and instruments and instruments have increased by 129.6%, 72.6% and 321. respectively. 8%, the actual use of foreign capital in high-tech service industry is 12 billion 720 million yuan. The practice of the local government also confirms the above scholars statement and the data of the Ministry of Commerce. Take Shenzhen as an example, in recent years, Shenzhen has been calling for cage changing birds, that is, to move out of low-end factories and introduce enterprises with high technology R & D capability. Some scholars believe that the relocation of individual factories is likely to provide an opportunity for the introduction of high-end scientific research enterprises in Shenzhen, and also creates space for the strengthening of independent innovation.