China asks Guangzhou suppliers to move north
Beijing-based news outlet China Daily has published news from Guangdong province that reveals administrators’ plans to relocate suppliers operating out of one of the country’s largest fabric wholesale markets, Zhongda in Guangzhou’s Haizhu district, approximately 70 kilometres northwards.
Textile, apparel and accessories businesses will all be affected by the move to the neighbouring city of Qingyuan, around an hour's drive away. Taken together, the traders have previously generated more than ¥200 billion (roughly $28.8 billion) in annual transaction volumes from Zhongda, according to the publication.
However, a lack of planning over 30-plus years of growth at the densely populated market is now not only considered a fire risk, but the nature of the complex has also limited other urban development prospects in recent years, commented deputy district head Huang Fuwei.
Notably, trading has yet to resume in wake of the most recent wave of covid-19 to hit the locality.
Equipment subsidies, free accommodation and reduced commercial renting rates will be offered to incentivise the local business community to make the move, Mr Huang added.
Plans are already in place to erect multiple textiles, fashion, leathergoods and cosmetics manufacturing bases over an approximately 670-hectare area of “special economic cooperation zone” in Qingyuan, reportedly intended to function as a lower cost, more expansive production hub in reach of either city.
A new “research and incubation” base will be constructed in Zhongda’s place, the outlet said.
