Enterprises need outside help
It is nothing new that enterprises have been taking every means to ease pressure imposed by the worsening global financial crisis. However, they also need help from outside.
There are mainly three ways in which the enterprises can try to beat the economic cold.
First, policy support. For example, the government's decision to promote household appliances in the countryside has benefited farmers and eased the pressure on manufacturers' stock. It is necessary and helpful to make other policies, such as research subsidy and tax cut for other businesses.
Second, more efforts should be paid to improve the environment of a specific industry. Mobile phone manufacturers have long been distraught by pirate makers. Illegal deeds must be ruled out, otherwise it will damage more industries.
Third, chances for reorganization with industry heavyweights. Importing high-quality assets and capital from best performers of an industry will revive those at the jaws of death. It will also reestablish their customers' confidence.
Although many enterprises may be closed down in the crisis, some others may survive by saving cost and downsizing themselves. They will continue to provide the world the brand of "Made-in-China".
Overspending not patriotic
It's a common sense that the financial crisis has greatly discouraged people's consuming desire. However, my friend taught me a totally different lesson when he generously bought a cellphone and two cameras with his credit card.
He said he just wanted to do his duty as a consumer in order to help enterprises cornered by demand contraction.
His logic is a patriot should buy more to support our country during the global financial crisis.
However, I can't agree with the reasoning that everyone should consume even beyond his own economic capacity. Right consumption means neither saving too much nor overspending.
We should learn seriously from the subprime crisis, and the root cause of the crisis was Americans' overdraft had depleted potentials for further development of their economy.
But to act properly on my friend's logic, I spent 4 yuan to buy a pair of socks for my child to celebrate his 100th day after he was born.
Evolve and survive
Comment on You Nuo's column "Expect long, hard road to recovery" (China Daily, Jan 12)
I agree that it is a long hard road to recovery, but this process will eventually stabilize the market.
The big companies will need to reduce, reorganize and restructure. The most critical part is how to reposition, reinvent and repackage themselves. Only those companies that adjust themselves to the crisis can survive.
In my opinion, "no empire will survive forever, only evolution".
on China Daily website
The more the cars, the better?
Comment on "Auto sector gets a shot in the arm" (China Daily, Jan 15)
Are more car sales and more cars on the roads really the answer to the financial crisis?
The car industry and their lobbyists may see this "support" as some sort of a victory for them, but are there any more policies for other sectors of the society?
on China Daily website
Readers' comments are welcome. Please send mail to Letters to the Editor, China Daily, 15 Huixin Dongjie, Chaoyang District, Beijing, 100029 China. Send faxes to (86-10) 6491-8377. Send e-mail to firstname.lastname@example.org or email@example.com or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.
(China Daily 01/16/2009 page9)