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Expert: industrial restructuring should speed up |
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15:33, November 21, 2008 |
Chinese enterprises should speed up their restructuring and upgrading process instead of slowing it down to weather the global financial crisis, said Prof. Zhao Zhongxiu, Dean of School of International Trade and Economics, Beijing-based University of International Business and Economics, in an interview with People's Daily Online.
Video: Video: China's foreign trade in global financial crisis
Labor-intensive producers in China are facing a difficult time caused by rising costs and shrinking demand. And it is not easy for export-oriented enterprises to shift to domestic market as that shift means the necessity to build their own distribution channels instead of just acting as a supplier, Zhao argued.
However, they can grow stronger if they make proper adjustments to achieve more balanced market strategy taking both the international and domestic demands into consideration and invest more on research and development. Zhao also suggested that Chinese companies improve their financial management.
Zhao noted that low-efficient enterprises which based their business on "incomplete costs", namely incomplete payment for their employees and higher social costs, should disappear from the market.
You have no time to make the industrial restructuring during the boom time, Zhao thinks. He believes that the current difficult time is an opportunity for China to speed up that process. He is confident that survivors of the financial crisis will be more competitive on the global market after they are forced to upgrade their products and seek for new markets.
And China is still the major producer of consumer goods, which, he said, are still representing a good and stable market even in the US.
By People's Daily Online
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