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Reasons for success of industries in China highlighted

PTI - Madurai

Good infrastructure, reasonable power tariff and productivity of workers were among the many reasons for the success of industries in China, members of the Madurai district tiny and small scale industries has said.

Mr K Ramachandran, MADITSSA president, who led a team to three industrial cities in China, including Shanghai, told reporters here after their return that lower tax rates and more incentives were attractive enough for Indian companies to try and enter China. “There is absolutely no labour problem.. There is only industrial policy..no labour policy,” he said.

“Though a communist country, there is no stringent labour law...or pollution control that cripples industries, as in India”. He attributed the heavy foreign direct investment flow into China due to the fact that there were no conditions for investment. China’s only goal was development, he said.

The chambers there catered to members’ needs, providing training and extending all financial and marketing aid. The members noted that most operations were computerised and said that market requirements for each industry were available ‘at their fingertips’. Though there were many labour intensive industries, productivity was high, compared to India. Many industries had installed machinery imported from Europe and America, helping them improve productivity and quality.

They said 93 per cent of industries were small and medium enterprises, of which 50 per cent were in the service sector, mostly restaurants. There were sick industries in China also due to bad planning, but they ‘recuperated’ faster than in India.

The members said China was subsidising industrial products by levying low power tariff and rescheduling industrial loans, which could not be collected. There were 120 special economic zones, offering attractive tax sops, where about US$ 300 billion had been invested as FDI. The Pudong zone alone had received US$ 30 billion from 5000 multinational firms. There were also 40 EPZs in China. They said China admired India’s success in information technology and had asked many IT companies to set up shop there.

The Chinese, Mr Ramachandran said, would only mention about what they were manufacturing and what they could sell. “They never ask what we can sell to them. They are so aggressive in marketing,” he said. He said there was immense scope for the textile industry there, and Indian textile units could set up manufacturing facilities in China and prosper. The Indian information technology companies were doing very well too, he added.