Several closing down of big factories in Dongguan aroused public attention recently. A government report says about 50% of the enterprise in Guangdong area are now facing losses or having profit margin less than 2%. Only 22.2% enterprises report profit margin of 5% or above. Some of the enterprises revealed the current business environment is worse than the time during financial crisis. Plus, the tightened monetary policy and continual revaluation of RMB contribute further to the difficult situation. However, experts believe it is time for the factories to review and upgrade themselves.