Despite the complexity of the world economy and the hardship of the domestic situation, the fundamentals of China’s economy will remain positive in the long term, considering in-depth opening up, new technologies, and new demands.
This view was popular among those who attended the annual meeting of Chinese entrepreneurs in Zhuzhou, Hunan province, from May 6 to 7.
Making the impossible possible
The recent debut of the large C919 airplane made by China once again drew world attention and proved wrong the assertion that China would not be able to make such a plane itself.
The success of the C919 is only a miniature of the transformation and upgrades in the world’s second largest economy.
In the eyes of many Chinese entrepreneurs at the meeting, economic transformation and industrial upgrades bring not only challenges but also opportunities.
As people’s incomes are increasing, consumer demands are rising, bringing the opportunity of development to all industries and sectors, according to Zong Qinghou, head of Wahaha, a large food and beverage corporation.
Only with innovation can a real economy develop and companies remain vigorous. Thus, Chinese companies should make innovations according to consumer demands and improve the quality and added-value of products, he said.
With the development of internet technologies, companies learn to understand the real needs of customers and manufacture high-level products accordingly, said Zhang Ruimin, head of Haier, a renowned Chinese electronics and home appliances company.
Technology innovation vital for real economy
To boost transformation and upgrades of the real economy, technological innovation is of great significance.
High-end Made-in-China products, such as high-speed railways and the C919, consolidate the faith among Chinese entrepreneurs that core competitiveness is based on technology.
The high quality of China’s high speed railway followed the steps of social development and finally won recognition in the market, according to Liu Hualong, chairman of CRRC, the world’s largest supplier of rail transit equipment.
“As new technologies keep popping up, integrated innovation can boost emerging technologies that connect different sectors. It’s just like a kaleidoscope that can generate unlimited possibilities,” said Xu Heyi, chairman of Beijing Automotive Group.
The fundamental solution to further development lies in innovation and enterprises should embrace internet technologies, including big data, cloud computing, the Internet of Things and artificial intelligence, according to Zhu Hongren, vice chairman of the China Enterprise Confederation.
Opening-up foster opportunities for real economy
With more integration into the global industrial chain, opening-up is more important to the transformation and upgrades of real economy. While creating more opportunities for Chinese companies, it also forces them to cultivate their competitiveness.
HBIS is such an example. As the world’s second largest and China’s largest iron and steel maker, the company transferred its focus on large domestic orders to more diversified manufacturing and business modes, which enables it to occupy 44 percent of the domestic steel market and extend business with foreign companies, such as Panasonic, LG and Samsung.
The Belt and Road forum, which will be held in Beijing in coming days, is very important to Chinese companies. The real economy should develop in both the domestic and foreign market as future economic statistics will change its focus from GDP to GNP, according to Song Zhiping, head of the China National Building Material Group.
The transformation and upgrades of real economy means that the relationship between China, the world factory, and the world market is changing, and Chinese enterprises should take the opportunities of the Belt and Road Initiative by improving themselves in international competitions, according to many entrepreneurs at the meeting.