2005-11-29

SHANGHAI: The manufacturing industry is at an important juncture as the country will soon face a new round of development in the next five years.

Problems, policies and future trends of the sector were discussed last Sunday at the 19th China Daily CEO Roundtable in Shanghai.

More than 30 top-level managers in the manufacturing sector attended the forum themed "Made-in-China Under Globalization".

"Today's forum is of great significance as it is designed to promote the rapid development of China's manufacturing industry and help smooth communication of manufacturers and government and media," said Larry Lee, Executive President of China Daily East China Bureau in Shanghai.

Manufacturing sector

China's manufacturing industry will enter a critical stage as the nation enters its 11th Five-Year Plan (2006-10), a new transitional period for the nation's economy, said Gao Huiqing, Director of the Strategic Planning Division of the Development Research Department of the State Information Centre, a think-tank for the State Council.

"In the process of China opening up, the manufacturing sector has played an important role by creating one-third of the nation's gross domestic product (GDP) and contributing one-third of the government's fiscal income," Gao said.

At present, China's manufacturing industry ranks fourth in the world, behind the United States, Japan and Germany.

Nowadays, more than 100 categories of products made in China rank first in the world in terms of output. For example, China makes 40 per cent of toys in the world each year, 50 per cent of the shoes and 40 per cent of personal computers.

Galanz Group Co Ltd, a Guangdong-based home appliance company, produces almost 35 per cent of the microwave ovens in the world. And East China's Jiangsu Province makes 65 per cent of the mice used with personal computers.

"Although China is regarded as the world factory, its manufacturing industry is confronted with four major problems," said Gao. By this he means trade protectionism, rising business costs, environmental pressure, and the lack of efficiency in research and development (R&D) of its domestic enterprises.

Wang Xu and Yin Ping

2005-11-29

The China Daily CEO Roundtable is a by-invitation-only network of leaders in government and business for the sharing of executive insights on strategic issues relating to China's economy, business and social developments.

Delegates are senior officials, CEOs and senior executives of Fortune 500 and China's largest and most dynamic companies.

Discussions are given prominent coverage in China Daily, and executive summaries are submitted to relevant ministries for future policy formulation reference.

Nineteen CEO roundtables have been held in Beijing, Shanghai and Hong Kong during the past year covering creativity and innovation, capital market reforms, macroeconomy, regional development, China-Asia economic integration, branding, next generation multinational corporations, sports marketing, corporate social responsibility as well as automobiles, digital entertainment, lifestyles, health care reforms, media entertainment, tourism and "The World's Shanghai by 2020," which was chaired by Han Zheng, mayor of Shanghai.

Upcoming CEO Roundtable Events include:

The 20th China Daily CEO Roundtable

November 30, 2005 (tomorrow). The Peninsula Palace Beijing

"The Next Generation Design, Creativity and Innovation for China"

Honourary Chairmen:

Victor Chu, chairman, First Eastern Investments Group

Professor Patrick Whitney, director of Institute of Design, Illinois Institute of Technology and Robert C. Pew, professor of design, Institute of Design, Illinois Institute of Technology

The 21st China Daily CEO Roundtable

December 6, 2005 (Tuesday)

Grand Hyatt Beijing

"Sustainable Development in China"

Alexander Wan