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The Chinese market is growing bigger and bigger. We forecast that it will become the largest market in the world before 2020,” China’s Minister of Commerce Chen Deming in the eighth session of ministers of the World Trade Organization. According to the estimation of the European Chamber of Commerce, the size of the Chinese government purchasing market reached 1.02 trillion U.S. dollars.
If China’s role in the last round of globalization was the “manufacturer for the world”, in the following round of globalization, China will take a new role as the “market for the world”.
Everyone wants to be the leading role of the market. In our own opinion, the foreign companies and private enterprises had several complaints in the market access and fair competition. Some foreign companies abandoned the solo investment pattern, chose to work with state-owned enterprises and gave the Chinese partners the shareholding right of the joint venture because if they did not do that, they could not participate in some special markets monopolized by these SOEs. For private companies, they complained about not only the “unfair treatment for them and the SOEs”, but also the bias towards the foreign companies. For example, if a for- eign brand settles on a place of the golden business area in a major city of China, the“local brands” which previously took this place should give their way – sometimes they are forced by the government in the name of “optimizing the brand environment”.
The future Chinese market might combine several features: a), the increasing self identity – the proportion of local brands keep increasing. The local brands include not only the self-owned brands, but also the products foreign companies developed based on or for the Chinese market; b), the openness – the market is open to the world; 3), the modernity – high standards and modernization could be reflected in market environment construction, corporate management level and market control ability; and 4), the fairness – the products of SOEs, foreign companies and private companies are fairly treated.
Among the four features, the fairness is most important. Only when all the participators in the market can be equally treated and compete with each other fairly, could they show their competitive power and their best efficiency, which could bring the customers the largest interest. The fairness is not spoken from mouth or written on the paper. It needs real actions and actual practices.
If China’s role in the last round of globalization was the “manufacturer for the world”, in the following round of globalization, China will take a new role as the “market for the world”.
Everyone wants to be the leading role of the market. In our own opinion, the foreign companies and private enterprises had several complaints in the market access and fair competition. Some foreign companies abandoned the solo investment pattern, chose to work with state-owned enterprises and gave the Chinese partners the shareholding right of the joint venture because if they did not do that, they could not participate in some special markets monopolized by these SOEs. For private companies, they complained about not only the “unfair treatment for them and the SOEs”, but also the bias towards the foreign companies. For example, if a for- eign brand settles on a place of the golden business area in a major city of China, the“local brands” which previously took this place should give their way – sometimes they are forced by the government in the name of “optimizing the brand environment”.
The future Chinese market might combine several features: a), the increasing self identity – the proportion of local brands keep increasing. The local brands include not only the self-owned brands, but also the products foreign companies developed based on or for the Chinese market; b), the openness – the market is open to the world; 3), the modernity – high standards and modernization could be reflected in market environment construction, corporate management level and market control ability; and 4), the fairness – the products of SOEs, foreign companies and private companies are fairly treated.
Among the four features, the fairness is most important. Only when all the participators in the market can be equally treated and compete with each other fairly, could they show their competitive power and their best efficiency, which could bring the customers the largest interest. The fairness is not spoken from mouth or written on the paper. It needs real actions and actual practices.