FOREIGN businessmen in China must make sure their Chinese partners convert from the old way of running an enterprise, warns a consultancy firm.
Chinese enterprises had been crippled by the 'traditional mandate' of 'the more the better' in terms of production in an effort to meet the government's requirements, Geoffrey Cann, director of Deloitte Touche Tohmatsu, Management Consultants Hong Kong, said yesterday.
'If you want to compete and sell your products abroad, you have to have products which are at least good.
'If Mercedes-Benz is going to have its parts made in China, you have to have parts which are as good as those in other areas of the world,' Mr Cann said.
He warned that China would soon lose its advantage of low production costs to Vietnam and India if it stuck to the old ways.
Chinese entrepreneurs, especially those in state enterprises, should also dismiss the old concept of trying to provide as many jobs as possible.
'Some state enterprises are seeking our advice. But it takes courage to fundamentally change their concepts,' Mr Cann said.
