Machinery exhibit promotes retooling to meet crisis
Chinese power machine and equipment makers should reorganize or consolidate to enhance risk control and increase innovative capacity, said Sha Baosen, chairman of China Hydraulics Pneumatics and Seals Association (CHPSA).
Global economic turmoil has badly hurt the sector, but the business environment is improving after the central government adopted support policies, Sha said.
"To reduce the impact of the crisis, companies should use the policies, adjust corporate strategies, restructure their business portfolios and improve capabilities for innovation," Sha said.
"At the same time, averting excessive or irrational investment - which could cause a new crisis - should also be part of their planning."
Through the annual Trade Fair for Power Transmission and Control (PTC ASIA), co-sponsor CHPSA is promoting technological exchange and innovation to expand the international market and accelerate the sector's progress worldwide, the chairman said.
This year's fair, which begins in Shanghai today and ends on Thursday, has attracted wide participation, especially from small and mid-size companies.
A record number of exhibitors illustrates the confidence of entrepreneurs in weathering the crisis and seeking further development, Sha noted.
Not surprising this year's theme is "crisis, change and innovation".
More new products, technologies and materials are on display at the fair, which for the first time includes a section for higher learning institutes.
Their research offered at the fair will provide new opportunities for the business community, Sha said.
"It is our association's consistent position to protect intellectual property rights and fight against fake or sub-standard goods," he stressed.
"After absorbing imported or learned technologies, the mainstream Chinese power transmission industry has already begun self-innovation and embarked on research to develop proprietary patents and build up their own brands."
"We are also cooperating with authorities to crack down on illegal business by the small number of enterprises involved in intellectual infringement," he said.
"Opposing trade protectionism is another of our long-standing policies," he said, adding that PTC ASIA creates opportunities for Chinese companies to go global and for overseas firms to gain a foothold in China, especially during the current worldwide slowdown.
As the PTC ASIA runs concurrently with a logistics fair, Sha said that combination of two fairs provides more exchange opportunities for participants and promotes growth in both sectors.