Reply #1 AsnDragon's post
Like I said many times before, China doesn't want to be known as a sex capital or attactiion to the world.
WAS there just one reporter from CCTV that did ALL this damage ? There might be a contract on his life from the traids now. 
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http://www.scmp.com/news/china/a ... -crackdown-analysts
Prostitution clampdown on Dongguan may knock 50 billion yuan off its economy
The crackdown on Dongguan's vice trade may cost city businesses, including hotels, shops and restaurants, at least 50 billion yuan (HK$63.5 billion) - or one-tenth of the local economy - analysts said.
The raids were also seen as a warning from the central government to provincial authorities to put a higher priority on tackling corruption and upholding moral standards after decades of economic development.
Dongguan, a city of 8.2 million that sits between Shenzhen and Guangzhou, has been in the spotlight since China Central Television aired an exposé on its thriving sex industry on Sunday. Afterwards, the city mobilised more than 6,000 police to raid nearly 2,000 entertainment venues.
Guan Qingyou , a senior economist for Minsheng Securities, said in a note to investors that about 50 billion yuan - or at least 10 per cent of the city's gross domestic product - could be wiped out due to the crackdown.
"The sex industry relates directly or indirectly to many industries including hotels, restaurants, cosmetics, daily necessaries, travel and so on," Guan said.
"Fifty billion yuan is a general estimate by many research institutes of the volume of Dongguan's sex trade."
Lin Jiang, dean of the finance and taxation department at Lingnan College at Sun Yat-sen University and also a consultant to the Dongguan city government, said the figure was credible.
"It's a reasonable estimate, but I'm afraid the actual figure could be even higher," said Lin. "It will have a serious impact on the local economy. The crackdown will also hurt investors' confidence and weaken the city's long-term economic growth."
Guan also warned the crackdown on the sex industry might be echoed nationwide.
"Some people might underestimate the resolution of the leadership, but we should take seriously the impact of the Dongguan case on the larger economy. We may see the impact in national economic statistics as early as March," he said.
Other observers have expressed doubts about how far the campaign against prostitution will spread.
"With so many police officers and government officials deeply involved in the industry, I doubt the crackdown will get all of them," said Xiao Gongjun, a former researcher at Shenzhen University and a factory owner in Dongguan.
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http://www.chinadaily.com.cn/opi ... ontent_17277525.htm
Dongguan: “Sin City” and economic restructuring
Updated: 2014-02-11 17:36
By Xin Zhiming ( chinadaily.com.cn)
Despite its global status as a major hub for electronic manufacturing, Dongguan, a third-tier southern city, would still be unknown for many if not for the recent crackdown on the illegal sex trade in the city.
The underground industry reportedly accounts for a significant portion of the local GDP, although no authoritative figures are available. Some reports claimed the sector, together with related services, could account for 10 percent of local output. If the crackdown continues, local authorities urgently need to find a new growth path to ensure the economic stability of the city.
Actually, the city was once known more for its electronic manufacturing than the sex industry. From late 1990s to the eruption of the global financial crisis in 2008, the city was a major base for global manufacturing of IT products and electronic equipment, accommodating a large pool of manufacturers and industrial workers.
In the wake of the global financial crisis, the city suffered from slumping foreign demand. Rising domestic production costs have further reduced its corporate profit margin.
Like many other cities in the Pearl River Delta cities, Dongguan faced the challenge of economic restructuring, shaking off its past growth centered on low-end manufacturing and embarking on a new path built on high technology and managerial updating.
The region, including Dongguan, started restructuring as it fought fallout from the global financial crisis. In Dongguan, for example, there is increased investment that encourages corporate research and development to improve the competitiveness of the local enterprises.
The process is still going on and, given the difficulty of such a restructuring, could take many years to materialize. It is part of overall national economic restructuring, an endeavour that China has placed all its bets on.
The sex scandal has put the city in the spotlight. It will force the city — now a hub of vice in the eyes of many — to accelerate restructuring to shake off its public image as the “sex capital of China.”
[ Last edited by Weelock at 15-2-2014 21:53 ] | |
