The Chinese government must support the private sector companies at home and abroad as a priority reflects great changes coming, some which may bring hardship, but some will bring long-term sustainable growth for many others.
Falling red is not without feeling, it changes the spring soil better to protect the flowers.
In the last few years, the economic challenges facing Chinese companies have increased, given the increasingly complex domestic and international business ecosystem. The Chinese economy has been transforming from labor-intensive low-cost manufacturing to innovative and higher value-added services and manufacturing. The maturation of the Chinese business environment has brought great wealth and also difficulties for private sector companies.
Many low margin industrial sectors have closed or moved to other low-cost jurisdictions abroad. The trend for many new direct foreign investment cases is in innovative and disruptive sectors where new technologies and know-how are being shared to create first mover advantages.
So while we see many companies enduring hardships and pressure on the growth, revenue and profit side, there are also game-changing technologies and know-how and brand value available from abroad.
The CCPPC’s recent September 15 pronouncement that the government must support the private sector companies at home and abroad as a priority reflects great changes coming, some which may bring hardship, but some will bring long-term sustainable growth for many others.
Lemons can be made into lemonade. Falling red leaves can rejuvenate the soil. With the rains come the crops, with the planting come the harvests. With the thunder comes the rain and water. Chinese executives have navigated many dangerous waters. While some of the sea is red, there are waters ahead that are also blue.