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Rebuilding Business Channels in China

Apr 18-2013   



2009 Brand China (Women) Forum, jointly organized by All China Women’s Federation (ACWF) and Brand China Industry Union (BCIU), was held in Beijing on the morning of June 5, 2009. At the forum, Professor Zhou Qiren, president of the National School of Development, Peking University, gave a keynote speech entitled Rebuilding Business Channels in China, noting that, during the current financial crisis, there is little doubt that the Chinese economy would continue to develop at a relatively high growth rate, but the real challenge lies in the transformation of the country’s pattern of economic growth.

 

In his opinion, driven by consumption demand, investment and export, the national economy will keep growing by approximately 8% this year. However, China's export is largely dependent on the recovery of the world economy from the global financial crisis. Therefore, it is highly unlikely for the export sector to pick up within a short term. These days, the Chinese economy is characterized by its dependence on export. According to statistics, export accounts for around 34% of the national GDP. Such a high dependence on export renders the future of the Chinese economy uncertain. 

 

What are the challenges faced by China in transforming its pattern of economic growth? After telling the story of a female entrepreneur from Wenzhou, Professor Zhou pointed out that Chinese enterprises, in general, are very efficient in production but lack of marketing capability, making it very difficult for them to open new trading channels on the domestic market. Professor Zhou has researched into the development of the Pearl River Delta and the Yangtze River Delta in the past two decades, and the findings suggest that, owing to the efforts made during the past 30 years, China has successfully established a market-oriented economy but failed to create an effective business network, a healthy business environment and culture. Many Chinese entrepreneurs started from the domestic market. Nevertheless, following the establishment of the market-oriented economy, domestic enterprises gained access to the international market and focused their business exclusively on export to overseas markets. The reason lies in the fact that, over the centuries, overseas markets have formed a mature business culture and highly-developed sales channels. As a result, the products were easily sold as soon as they arrived at the markets. On the contrary, domestic market involves many distractions and requires considerable expenses on networking, thus making it less profitable in terms of cost effectiveness.

 

In view of this, Professor Zhou pointed out that the priority for us at present is to unite governments, enterprises and scholars to build highly effective trading channels on the Chinese market, which requires close cooperation between policy makers and judicial authorities. The point is to help the business owners understand that doing business on domestic market is as easy and profitable as on overseas markets. He mentioned that the domestic market has enormous potential for further exploitation. It would be difficult but very profitable once achieved.

 


The opening ceremony of the forum was presided over by Hong Tianhui, ACWF vice president and member of the ACWF Secretariat. During the ceremony, Ms. Huang Qingyi, ACWF vice president and central member of the ACWF Secretariat, read a speech written by Ms. Chen Zhili, ACWF president and vice chairwoman of the NPC Standing Committee. Keynote speakers at the ceremony also include Professor Yu Dan from Beijing Normal University and Yang Lan, chairwoman of Sun Culture Foundation.

Rebuilding Business Channels in China

Apr 18-2013   



2009 Brand China (Women) Forum, jointly organized by All China Women’s Federation (ACWF) and Brand China Industry Union (BCIU), was held in Beijing on the morning of June 5, 2009. At the forum, Professor Zhou Qiren, president of the National School of Development, Peking University, gave a keynote speech entitled Rebuilding Business Channels in China, noting that, during the current financial crisis, there is little doubt that the Chinese economy would continue to develop at a relatively high growth rate, but the real challenge lies in the transformation of the country’s pattern of economic growth.

 

In his opinion, driven by consumption demand, investment and export, the national economy will keep growing by approximately 8% this year. However, China's export is largely dependent on the recovery of the world economy from the global financial crisis. Therefore, it is highly unlikely for the export sector to pick up within a short term. These days, the Chinese economy is characterized by its dependence on export. According to statistics, export accounts for around 34% of the national GDP. Such a high dependence on export renders the future of the Chinese economy uncertain. 

 

What are the challenges faced by China in transforming its pattern of economic growth? After telling the story of a female entrepreneur from Wenzhou, Professor Zhou pointed out that Chinese enterprises, in general, are very efficient in production but lack of marketing capability, making it very difficult for them to open new trading channels on the domestic market. Professor Zhou has researched into the development of the Pearl River Delta and the Yangtze River Delta in the past two decades, and the findings suggest that, owing to the efforts made during the past 30 years, China has successfully established a market-oriented economy but failed to create an effective business network, a healthy business environment and culture. Many Chinese entrepreneurs started from the domestic market. Nevertheless, following the establishment of the market-oriented economy, domestic enterprises gained access to the international market and focused their business exclusively on export to overseas markets. The reason lies in the fact that, over the centuries, overseas markets have formed a mature business culture and highly-developed sales channels. As a result, the products were easily sold as soon as they arrived at the markets. On the contrary, domestic market involves many distractions and requires considerable expenses on networking, thus making it less profitable in terms of cost effectiveness.

 

In view of this, Professor Zhou pointed out that the priority for us at present is to unite governments, enterprises and scholars to build highly effective trading channels on the Chinese market, which requires close cooperation between policy makers and judicial authorities. The point is to help the business owners understand that doing business on domestic market is as easy and profitable as on overseas markets. He mentioned that the domestic market has enormous potential for further exploitation. It would be difficult but very profitable once achieved.

 


The opening ceremony of the forum was presided over by Hong Tianhui, ACWF vice president and member of the ACWF Secretariat. During the ceremony, Ms. Huang Qingyi, ACWF vice president and central member of the ACWF Secretariat, read a speech written by Ms. Chen Zhili, ACWF president and vice chairwoman of the NPC Standing Committee. Keynote speakers at the ceremony also include Professor Yu Dan from Beijing Normal University and Yang Lan, chairwoman of Sun Culture Foundation.