Manufacturers add value, reap rewards
Updated: 2007-08-04 09:46
Guo Jurong, an economics professor with the Antai School of Management at Shanghai Jiaotong University, said that Shanghai should put more effort into expanding its service trade.
"A major share of added value in Shanghai's processed goods trade is expected to come from services in the future," Guo said.
"Shanghai, as an international metropolis with higher business and labor costs than other cities in China, should strengthen its competitiveness by increasing its high value-added service trade rather than relying on the low-end and labor-intensive process trade."
Panning Trading Co Ltd, a Shanghai-based firm that trades and manufactures zinc galvanized sheeting, began selling its customers - including Mitsubishi, Toshiba and Ausus - refined processed products with a high profit margin last year.
Xia Zhi, general manager of the company, said that more refined products with higher technology content and services have increased the company's export profit margin.
"Other than tailor-made products designed for our customers, we are also generating more profit by expanding our range of services," Xia said. "We have realized a much larger profit margin by adding value."
(China Daily 08/04/2007 page10)
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