G Bin Zhao, founding chairman of the Global CEO Institute, an executive training and business strategy think tank, told CNA that China’s low prices and production efficiency were not signs of unfair competition.
But he said critics have a point that in some industries, “local governments’ industrial support, preferential financing and fierce competition among companies may lead to overinvestment and continually falling prices”.
“China should not only continue to be the world’s factory, but also go further in becoming the world’s market,” Zhao said, calling for Chinese households to spend more.
ADAPTING TO A DIFFERENT MARKET
For foreign businesses, staying competitive in China increasingly means offering something different – or changing how they operate.
Singapore companies, for one, must now see China as both a customer and a competitor, said SBF’s Lee.
“You cannot just say it’s either a customer or a competitor. It is both,” he said.
“If you’re selling a very commoditised product that really has no brand or you are competing just on price, then it will be very difficult going forward,” he added.
The competition is also becoming more visible in Singapore, where Chinese consumer brands are making inroads.
