Five highlights of foreign investment in China's commerce in next 10 years

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Last updated at: (Beijing Time) Tuesday, February 03, 2004

Five highlights of foreign investment in China's commerce in next 10 years

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According to a report from International Business Daily, He Jihai, Chairman of China General Chamber of Commerce, points out five highlights for foreign investment in China's commerce in the 10 years to come.

Highlight 1: Quicken steps in entering and expanding market. Form an overall structure for operation nationwide to improve sales network, thereby gaining a "preemptive" advantage.

Highlight 2: Seize the mainstream mode in business and the dominant one. Gradually enter the fields like wholesale and retail service, commission agent service, franchise and other services. Expand business scope on the basis of logistics and chain operation; transform traditional commerce by dint of advanced experience in management and technology in logistics so as to set up a modern logistic system; attach importance to developing business module insufficient in China, such as shopping mall, convenience store, supermarket, and specialty shop, to attract foreign investment.

Highlight 3: Grab Eastern China, access the Midwest and the Northeast. The government has worked out three strategies for economic development, i.e. developing the East, exploring the west, and revitalizing the old industry bases in the Northeast. The three strategies provide a broader space for foreign investment.

Highlight 4: Actively tap for mergers in China. The foreign funds just entering into China's commerce can cooperate or merge with some forceful domestic commercial enterprises. Although domestic enterprises have some flaws in size, management philosophy, operation mechanism, distribution and financing channels, they still posses valuable resources such as market occupancy and understanding of the domestic market. By merger at the early stage on entering China's market, foreign enterprises are able to take advantage of sufficient funds, advanced management, technology to reorganize the existing commercial resources, and finally find their way for development in the course of transforming the traditional commerce.

Highlight 5: Foreign investment that has entered into the Chinese market should speed up its localization progress, which can not only help it confront directly with competition but also reduce operational cost and increase profit.

By People's Daily Online

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