Lack of credibility costs Chinese enterprises 600 bln yuan annually

10:09, July 18, 2011      

Email | Print | Subscribe | Comments | Forum 

Chinese enterprises lose up to 600 billion yuan (about 92 billion U.S. dollars) every year due to a lack of business credibility, according to official data.

About 200 billion yuan, or one third of the loss, was a result of consumers' lack of trust in product quality as data with the Ministry of Commerce shows, said Wang Zhongyu, president of China Enterprise Confederation, at a forum in Beijing on Sunday.

Food scandals in recent years indicated that a lack of business ethics had caused the problem, said Wang.

The bankrupt Sanlu Group, which was at the center of tainted-milk scandal, and other dairy companies set up a 1.11-billion-yuan compensation fund after it was revealed that the companies used milk that contained melamine to produce baby formula.

Wang called on enterprises to promote and maintain good ethics and establish effective supervision mechanisms to avoid wrongdoing.

  Weekly review  


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Fire rages near Jerusalem Holocaust Museum
  • Lawyer says Mubarak in full coma, hospital denies
  • Thousands of Syrians hold massive festival in support of president
  • Africa's Big Seven Food and Beverage Trade Expo &S. African Int'l Trade Exhibition opens in Johannesburg
  • DIY activity named "I am a Little Patissiere" held in Yantai, China's Shandong
  • Wedding Dress Show in Yangon, Myanmar
Hot Forum Discussion