This is apropos two back-to-back letters to the Editor by this writer carried by the newspaper on Friday and yesterday. In 2013, China’s corporate sector was still emerging on the global stage, with many companies struggling to adopt best practices in customer focus, quality assurance, and innovation. The emphasis was largely on scale and production capacity rather than high-quality management.
Research and development (R&D) spending by Chinese companies was around 2% of GDP, with most of it concentrated in state-owned enterprises (SOEs). By 2023, China’s corporate sector had undergone a dramatic transformation. Companies across the board have embraced best management practices, such as customer-centric strategies, rigorous quality assurance, aggressive marketing, and extensive automation. The corporate R&D spending has surged to 2.5% of GDP, with private companies playing a significant role. This shift has resulted in Chinese companies rising to the ranks of world-class firms, competing fiercely in global markets.
For example, in 2013, China had only two companies in the top 100 of the Fortune Global 500 list. By 2023, this number had grown to 14, with many more companies gaining international recognition for their innovation, quality, and customer focus.
Additionally, the adoption of cutting-edge technologies like AI, big data, and automation has further propelled Chinese companies to the forefront of global competition. This transformation is evident in sectors such as technology, where companies like Huawei and Alibaba have become global leaders, and in automotive, where Chinese electric vehicle manufacturers are challenging traditional automakers worldwide.
Qamar Bashir
Copyright Business Recorder, 2024
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