Under the current tide of economic globalization, Chinese enterprises should actively co-operate with multinationals to develop themselves, officials and experts said yesterday in Beijing at the annual meeting for transnational corporations in China.

"Chinese companies should learn from multinationals through co-operation, and grow from local enterprises into national, transnational ones," said Wang Zhile, director of the research centre on transnational corporations of the Chinese Academy of International Trade & Economic Co-operation under the Ministry of Commerce.

Wang said the capital, technology, management expertise and network contacts that multinationals bring along with their investments in China are good resources for Chinese enterprises.

While, to multinationals, China is a key factor in their global management strategies and a focus of their future development.

Therefore, China should actively promote the integration of local enterprises into economic globalization and co-operate with multinationals on a larger scale and in wider fields, Wang urged.

Xie Qihua, chairman and general manager of Shanghai Bao Steel Group, agreed that international co-operation and alliances have become major trends in corporate operations.

Xie said his company always considers international co-operation and exchange as an important measure for improving its competitive edge.

In recent years, multinationals have increased their own investment, while diversifying investment channels and expanding the scale of investment in China, bringing opportunities for the development of local companies and for their co-operation with multinationals.

However, there are still some factors hindering co-operation among multinationals, China's State-owned enterprises and private ones, Wang said.

The first and most important problem is China's current enterprise administration system. At present, different government departments are responsible for the regulation of foreign-funded, private and State-owned companies.

And different kinds of enterprises are fit for different policies and regulations.

Wang urged the government to regulate enterprises according to market economy laws, while providing services according to the law of enterprise development.

China's central government has decided to push reforms of the State-owned assets administration system, which is expected to boost the development of State-owned large-scale enterprises.

The government is encouraging diversified investment in the State-owned enterprises in their restructuring, said Shao Ning, vice-chairman of the State-owned Assets Supervision and Administration Commission, at yesterday's meeting.

The two-day forum, focusing on co-operation, restructuring and development of transnational corporations, involved the participation of representatives from some 80 Chinese large-scale enterprise groups and multinationals, government officials and economists.

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