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English>>China Business

China urges manufacturers to expand global networks (2)

By Ding Qingfen (China Daily)

08:33, November 23, 2012

Zhong urged Chinese manufacturers to expand their overseas sales and marketing networks, saying this can "help boost foreign trade and enhance the brand image of made-in-China goods".

The ministry said more than 83 percent of Chinese investment deals in sales and marketing abroad were worth less than $1 million each. In 2011, only 4 percent of China's exports were realized through manufacturers' global sales networks.

Zhong said the traditional advantages for Chinese exporters, such as low labor costs, are "severely challenged, and time is pressing for them to foster new competitive edges in technology, quality, branding and service".

In September, the State Council announced a series of measures to maintain trade growth, including speeding up export tax rebates, reducing companies' administrative costs, and lowering financing costs for small and micro-sized enterprises.

The ministry will try to support traditional exporters in setting up their sales and marketing networks abroad, or in upgrading and expanding their networks, Zhong said.

Chinese retail and wholesale service providers are also being encouraged to establish or enhance their presence abroad to help the country's exporters increase their sales, he said.

The ministry said that China's investments mainly go toward rental and commercial services, finance, mining, and the retail and wholesale sectors.

Chinese companies have set up nearly 30,000 sales networks abroad, and companies represented by the country's leading telecom service provider, Huawei Technologies Co Ltd, have led this growth.

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