Days of manufacturing glory for Dongguan appear to be over

Dongguan, the once gritty hub of Guangdong's manufacturing in the Pearl River Delta, got some bad news late last month as economic data confirmed that a slowdown has taken hold in the region.

The city's economic output grew just 1.3 per cent in the first three months of this year, ranking it last among the province's 21 cities; growth was far below the average provincial gross domestic product increase of 7.2 per cent. Nationwide, GDP grew 8.1 per cent in the same period, down from 8.9 per cent in the previous three months.

Profits at major industrial enterprises in Dongguan were the worst in Guangdong, falling 1.3 per cent from the first quarter of last year. The city's industrial output declined 12.5 per cent in the first two months of this year alone.

Worries about poor performance have spread quickly throughout Dongguan, especially among manufacturers who made the city the economic star of the delta. Once home to tens of thousands of enterprises, Dongguan helped the delta become the busiest manufacturing centre in China as it became the world's factory.

For 30 years Dongguan was one of the delta's most prosperous cities. For many years its GDP at an 18 per cent pace; between 2003 and 2006, it grew at a rate in excess of 19.5 per cent annually, the fastest pace in Guangdong.

Now things have changed. Makers of shoes, clothing, textiles, furniture and toys are losing steam.