China will open the first ever national commercial investment fair in Beijing to help its commercial enterprises succeed in the face of increasingly fierce competition.
The China Commercial Investment & Co-operation Project Exhibition, organized by the China General Chamber of Commerce will kick off on October 23 in Beijing's China Military Museum.
The commercial industry mainly covers those companies in the retail, wholesale, storage and service sectors.
Jiang Ming, vice-chairman and secretary-general of the chamber, said the three-day fair is aimed at improving the exchange between domestic and overseas commercial companies, broadening the way of investment and financing, and uniting commercial resources.
"We believe the fair will provide those faced with management problems with the right solutions, and will offer good opportunities for those outstanding enterprises to expand the scale of their operations," Jiang said.
Intensifying competition and the arrival of micro-profit time in the industry have put a dampener on the ability of commercial enterprises to succeed in the market and earn considerable profit.
"Domestic business people need a drastic rethink if they are to deal with more and more challenges successfully," he said.
The commercial industry is suffering from scattered capital, duplicated business modes and backward management.
Coupled with the country's imminent entry into the World Trade Organization, it is urgent for those commercial enterprises to find ways to explore their advantages and ensure lasting development, Jiang said.
Currently hindered by the government's policy in the commercial industry, overseas enterprises are eager to have a share in China's brisk market.
As the country's entry into the WTO will open the industry to foreign rivals, domestic firms will have to work hard to compete with their overseas counterparts, which have the upper hand in scale, capital, technology and management, Jiang said.
"From our view, domestic firms should pursue mergers and restructuring across different locations and ownerships, and improve their profits with a low-cost expansion," Jiang said.
Meanwhile, commerce needs to upgrade its technology and find new markets, he added.
Many commercial companies have made some efforts in this respect. For example, Suning began to produce home electrical appliances after years of selling them. Shanghai Hualian co-operated with Beijing Xidan Department Store and Chaoshifa Chainstore to build a supermarket chain similar to Wal-Mart.
"Only one or two forward-thinking companies is not enough, we will hold the fair every year to enhance co-operation within the whole industry, investment and information exchange," Jiang said.
More than 500 projects have registered with the fair, including Carrefour, Japan Merchant Association, Shanghai Hualian and Lianhua.
(China Daily 08/06/2001)
