Trade war pushes Chinese firms to pursue tech excellence: executives

Source:Global Times Published: 2019/7/1 14:13:39

Disruptions including the China-US trade war have awakened Chinese companies and pushed them onto the track of pursuing technological excellence, executives and experts said at the ongoing Summer Davos 2019 in Dalian, Northeast China's Liaoning Province on Monday.

The disruptions that Chinese companies have been seeing in the past two years have taught them such a lesson that it becomes a wakeup call for them like never before," Ning Gaoning, chairman of Sinochem Group, said at a seminar at the World Economic Forum (WEF)'s Annual Meeting of the New Champions 2019, also known as Summer Davos.

Chinese companies have been experiencing challenges since the US waged a tariff war in 2018. The US government went so as to order US companies to stop the supply of key parts to Chinese technology companies including global telecommunication leader Huawei. 

"Awakened, now I see every industry is changing the way it attains growth," said Ning, the Chinese business executive who has been at the helmsman of four Chinese large-sized centrally administered state-owned enterprises.

Former IMF Deputy Managing Director Zhu Min echoed Ning's remarks by adding that Chinese companies will experience a significant uplift in quality in the coming decade as a more rational development concept sets in the minds of Chinese business people. 

"China will become an innovation-driven economic power at the end of it," Zhu said at the same seminar.

However, experts at the seminar warned that China needs to watch its demographics, and make sure that consumption moves fast enough to offset any downward effects and grasp industrial automation which is changing the way manufacturing works. 

Low industrial automation levels are currently China's weak points, according to Kevin Sneader, a global managing partner at McKinsey & Company.

Posted in: COMPANIES

blog comments powered by Disqus