CEOs say restructuring, competition to upset economy

08:41, July 08, 2010      

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Chinese CEOs said that the domestic economy will become more complex in the near future due to massive restructuring and more intense competition, according to a survey of 55 mainland executives from 22 industries.

The survey released Wednesday is part of a CEO study of more than 1,500 executives from over 60 countries and regions, done by IBM Global Business Services. It was carried out between September 2009 and January 2010.

Chinese CEOs saw more complexity in the country's economic environment than their counterparts in other countries, but they expected less volatility and uncertainty to take place in the country, said Marc Chapman, general manager of IBM Global Business Services for the Greater China Group.

China has weathered the global economic crisis better than many other countries. China's gross domestic product growth reached 9.1 percent in 2009 and is expected to be around 10 percent this year.

The country has also made efforts to foster more balanced and sustainable economic growth. The Ministry of Finance announced in June that a removal of tax rebates on some export products including steel products effective from July 15, in an attempt to do away with outdated production capacity.

Chinese President Hu Jintao also called for greater efforts to develop the country's western regions, which lag far behind the east coast.

The CEOs surveyed also said that a lack of managers, pressure brought on by unsustainable development models and the need for industrial upgrading are the main problems that enterprises must deal with over the next five years.

The economy is transitioning and needs to make major changes. Industries that are en-vironmentally friendly and consumer-oriented will gain the most from the economic adjustments, said Liu Shengjun, deputy director of the CEIBS Lujiazui International Finance Research Center.

Source: Global Times


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