China thrives on the success of state enterprises
Mpho Mokwape | Wednesday March 29, 2017 15:03
China’s economy is the second biggest (after the United States of America), and one of the fastest growing in the world, and it is partly driven by the success of its State-owned enterprises.
So much we can say about the conditions most Government-owned companies in Botswana find themselves in. In recent times, BCL went bust when the Government declared it can no longer sustain it financially. Many other State companies are up for privatisation, a sign that they are failing to stay afloat without a helping hand.
Corruption and greed have been fingered as the main culprits in the collapse of most State companies, which subsequently affected the economical status of the country and its people.
China, on the other hand, is basking in the glory of its State enterprises that are doing massively well and even penetrating the African market.
One such company is China Jiangsu International Economic and Technical Cooperation Group. Its division of construction has reportedly penetrated more than 15 African, countries including Botswana.
At a recent meeting with African journalists, the vice president of the Group, Gu Yue Sheng explained that State enterprises were doing well because the Government did not interfere, but only acted as an overseer.
He said the responsibilities laid with those appointed to supervise the day-to-day running of the enterprises, and that accountability relied heavily with them.
He said the hands-on people could therefore, not afford to slacken. “The companies are State-owned, but there is a level of independence and massive responsibility to see the growth of the companies. That is what the Government expects,” he said.
Gu said the company has been expanding its footprints in Africa with 22 branches and that they intend to have more branches across the continent.
Another State-owned company making waves is the Xuzhou Construction Machinery Group (XCMG). XCMG specialises in heavy construction machinery and has reportedly become the country’s leading company in its division and number five in the world with the aim of becoming a leading brand ahead of America’s Caterpillar.
During a recent visit to the company’s main warehouse in the Jiangsu province, its general manager, Hanson Liu said the company has stood at the forefront of the Chinese construction machinery industry and developed into one of the domestic industry leaders since its formation in 1989.
“It has become more influential, more competitive and a stable enterprise since its formation. It is the fifth largest construction machinery company in the world and we are currently looking at pushing for the top three and eventually the first spot,” he shared.
Hanson said for most State enterprises, though it was not always roses and sunshine, as the desire to be the best among other companies, works as motivation to push for innovative ways that are able to eliminate the competition in a more competitive way.
China’s secret success in maintaining its enterprises is reportedly the constant desire for innovation and resistance to external factors.
Also the level of independence and Government’s non-interference has been credited as the source of any successful state company.
Meanwhile, besides construction, construction machinery, printing and many more, the country’s state enterprises are also into mining and tourism.