How can China enterprises adapt to the changes of external environment and go global？ Expert advice

　　CCTV News:Experts believe that the participation of a country or an enterprise in the global value chain is mainly manifested in two dimensions, one is its position in the global value chain, and the other is the breadth and depth of its participation. If it occupies a longer position in the value chain, it can absorb more jobs and create more wealth.

　　In the process of changing the global value chain, how can China enterprises constantly change to adapt to the changes in the external environment and move towards the high end of the global value chain? Many experts expressed their views in the column "On Tao".

　　Li Yubo, CEO of Jiahua Chemical Co., Ltd.: My understanding of the value chain has three dimensions. One dimension is the length of the value chain, that is, from raw materials to customer terminals. What is this length?　

　　The second dimension, in fact, is productivity. In the process of completing the whole value chain, in fact, the productivity of enterprises in different countries and regions is different, and it will also have a very big impact on the whole value chain.

　　The third aspect, in fact, is the whole efficiency, supply cycle and supply radius, and the time it takes for us to complete a primary product to the final customer demand product.

　　From the perspective of factors of production, we can’t actually change the cost of raw materials and labor. From the perspective of China, our labor cost is definitely rising, and there may be some division of labor that is shifting like some areas with raw material resources or labor cost resources, but at the same time, China has a very strong population of engineers, which can actually help us gain great value in the process of obtaining raw materials and labor transfer.

　　The second aspect, in fact, is productivity. Then I will see many countries, which have no advantage in labor costs, but assuming that their productivity is very advantageous, their production efficiency is very high, and in fact, many values will be retained in this country and region.

　　The third is the efficiency of the supply radius. From the field of chemicals, it is true that its bulk reduced products are not suitable for long-term transportation and long-distance transportation. It is possible to complete the whole industrial chain support nearby, which is very critical from the perspective of safety or the highest efficiency.

　　In fact, the value chain of petrochemical industry or the whole global value chain, I think, will be constantly changing in the future. Then whether all enterprises have a long-term strategy, ten, twenty or thirty years, it is very important to predict this change in advance.

　　Woodk, President of the European Chamber of Commerce in China and Chief Representative of BASF China: China has become the workshop of the world and should be proud of it. It has wonderful clusters, Guangdong’s electronic and electrical equipment industry clusters, you have the Pearl River Delta and the Yangtze River Delta, which is an area with incredible clusters. So whenever I am asked, are European companies considering leaving China? I would say 98% no, because it is difficult to leave these clusters and replicate them in other parts of the world. China has just established a regional supply chain, which, frankly speaking, is world-class and unparalleled.