It's time for a new era of Chinese enterprises

Source:Global Times Published: 2012-10-17 0:55:08

The entrance of Chinese companies Huawei and ZTE into the US market has been blocked by US congress, ostensibly to protect "national security." In fact, the US government really wants to protect the market position of US enterprises.

From another perspective, their argument is reasonable. After all, a country's core competitiveness comes from its enterprises. A country is prosperous when its enterprises are powerful.

The 30 years of China's reform and opening up can be witnessed via the development trajectory of its enterprises. The development of these enterprises has unintentionally laid a solid foundation for China's reform and opening up.

However, Chinese enterprises still have problems when compared with foreign companies. There are more uncertainties in terms of enterprises' development progress in China than in developed countries. Both the legal environment and market conditions need to be optimized in China.

The US moves to prevent Chinese enterprises from taking local market share reflects their concerns over how competitive Chinese enterprises are, as well as China's rise.

It is understandable for Americans to feel uncomfortable toward China and the desire to protect local enterprises.

Besides arguing for an open market in the US, Chinese people should also realize the importance of the profitability of enterprises even in an economic superpower like the US.

China should accelerate the development of local enterprises to promote reform and improve the current complex situation in China. The improvement to Chinese enterprises will provide more jobs and tax revenue and create a new situation in China with better social welfare and stronger national competitiveness.

Accelerating the development of local enterprises should not be empty words. We should strengthen the protection of property so they are less inclined to emigrate overseas.

We should also strengthen the protection of intellectual property rights so that enterprises can boldly invest in research and development.

A fair market environment should be established. We should try to make full use of fair competition within the market and let the market decide the future of these enterprises.

Chinese society does not attach enough attention to enterprises currently. We need enlightenment to understand the importance of the development of enterprise to the country and the people. With Chinese people's hard-work, wisdom and courage, the country will have a lot of outstanding world-class enterprises. We should have determination, a broad-mind and a strategy to greet them.



Posted in: Observer

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