FROST & SULLIVAN GROWS ALONG WITH CHINA

China Daily European Weekly - - Busi­ness -

Con­sult­ing com­pany’s pres­i­dent says faster in­te­gra­tion of man­u­fac­tur­ing and in­ter­net tech­nolo­gies is cru­cial to deep­en­ing re­forms

in­tel­li­gence, in­ter­net of things, big data and cloud com­put­ing tech­nol­ogy is also re­mark­able.

What’s the big­gest chal­lenge China faces to­day and how can the coun­try over­come it?

There are concerns about pro­tec­tion­ist moves be­ing taken by the United States, which could ad­versely af­fect trade. This would in turn im­pede the re­cov­ery in trade vol­umes world­wide. It is im­por­tant for China to keep ex­pand­ing its trad­ing hori­zons by di­ver­si­fy­ing its part­ners.

How has your com­pany ben­e­fited from the coun­try’s re­form and open­ing-up pol­icy?

The con­sul­tancy in­dus­try has thrived with China’s eco­nomic growth. Be­fore 1980, the theme of cor­po­ra­tion trans­for­ma­tion re­volved around the trans­for­ma­tion of op­er­a­tional mech­a­nisms, which of­fered com­pa­nies the op­por­tu­ni­ties for mass pro­duc­tion, es­pe­cially for pri­vate small and medium-sized en­ter­prises. Af­ter 1980, there was a shift of fo­cus on the re­or­ga­ni­za­tion of prop­erty rights. This pro­vided more com­pa­nies with the chance for fi­nanc­ing and fur­ther de­vel­op­ments. By ad­vis­ing on dif­fer­ent cases, we have grown to­gether with our clients and the coun­try.

What mea­sures are needed if China wants to deepen re­forms?

China is one of the big­gest man­u­fac­tur­ing hubs in the world. With the rapid de­vel­op­ment of the IT in­dus­try, faster in­te­gra­tion of man­u­fac­tur­ing and in­ter­net tech­nolo­gies will be a crit­i­cal move for China to deepen re­forms.

In par­tic­u­lar, this in­cludes the con­struc­tion of ba­sic in­fra­struc­ture of in­tel­li­gent man­u­fac­tur­ing such as in­dus­trial big data, in­dus­trial apps and in­dus­trial cloud com­put­ing; the grad­ual com­ple­tion of soft­ware sys­tems of in­dus­trial man­u­fac­tur­ing, which in­cludes full-pe­riod man­age­ment of prod­ucts and aided de­sign of com­put­ers; and the con­struc­tion of an in­tel­li­gent man­u­fac­tur­ing ecosys­tem to merge in­ter­net, soft­ware, chip and so­lu­tion as a whole.

What are the big­gest changes in the con­sul­tancy in­dus­try in China?

The most no­table change is the di­ver­si­fi­ca­tion of in­dus­tries and the in­ten­si­fi­ca­tion of seg­mented in­dus­tries. Many en­ter­prises started to fo­cus on niche sec­tors and pro­vide cus­tom­ized ser­vices and prod­ucts with in-depth re­search on that spe­cific mar­ket. As con­sul­tants, we act as an ad­vi­sory group to of­fer in­sights and pro­vide so­lu­tions and sug­ges­tions on their strat­egy.

You’ve helped many clients to list in Hong Kong. What are your big­gest take­aways from such ex­pe­ri­ences?

In gen­eral, IPOs in Hong Kong cre­ate a rel­a­tively loose en­vi­ron­ment for en­ter­prise fi­nanc­ing, which would in­fuse fresh en­er­gies into a large num­ber of Chi­nese com­pa­nies. It also pro­motes the de­vel­op­ment of com­pa­nies in the so-called new econ­omy realm, and drives the de­vel­op­ment of “uni­corn” com­pa­nies. For me, a global men­tal­ity is im­por­tant for both the con­sul­tants and the clients. You need to be pre­pared to be ex­posed to ex­treme con­di­tions and rise to the chal­lenges.

What are the ad­van­tages and dis­ad­van­tages faced by Chi­nese com­pa­nies when they ex­pand over­seas?

The ad­van­tage of low-cost man­u­fac­tur­ing and ac­cess to ex­ter­nal sources en­sures high cost-ef­fec­tive­ness of made-in-China prod­ucts. Mean­while, the in­creas­ingly ex­pand­ing Chi­nese net­work over­seas is some­thing they bank on.

On the flip side of the coin, in­sti­tu­tional trans­ac­tion costs — in­clud­ing in­ef­fi­cient ad­min­is­tra­tive ap­proval and im­ma­ture tax pol­icy — and high fi­nanc­ing costs would bar com­pa­nies from op­er­at­ing in a for­eign coun­try. Mean­while, we need to watch out for for­eign in­vest­ment risks. For ex­am­ple, cer­tain over­seas re­gions have high geopo­lit­i­cal risk and enor­mous cul­tural dif­fer­ences, which could lead to rel­a­tively high in­vest­ment risk for en­ter­prises.

How do you view China’s role in the world to­day?

There is no doubt that China’s in­ter­na­tional sta­tus is con­tin­u­ously ris­ing. How­ever, unipo­lar hege­mony is not what China in­tends to achieve. At present, the coun­try’s main task is to pro­mote Belt and Road con­struc­tion and en­sure in­ter­con­nec­tiv­ity among dif­fer­ent coun­tries and economies. China will unswerv­ingly pur­sue the path of peace­ful de­vel­op­ment while pro­mot­ing world peace and the well-be­ing of mankind.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.