China business leaders: challenges and opportunities

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via WikipediaKeeping track of all the news on the ongoing financial crisis, even when China is your main focus, is almost impossible. Apart from links in our daily China Crisis Watch, some publications deserve special interest. The Economic Observer made a tour among China's business leaders and examined their preparedness for the possible effects of the global crisis on China. Some quotes.
Tian Renli of the Jiusan edible oil industry group:

Since the government intervened in edible oil prices late last year, soy bean prices have surged. Increasing costs and suppressed prices have led the company to 80 million yuan in losses in the first half of 2008.

The global economic slowdown has a relatively small impact on the soy bean processing industry, the company's general manager told the EO. As the government encourages soy bean imports, it could be an option for Jiusan to purchase overseas so as to benefit from a more valuable yuan.

Chen Ping, president of the ZJS Express (logistics)

Climbing costs, fiercer competition, and weaker demand have led most domestic logistics companies to great losses. Adding pressure is the expansion of international giants such as FedEx, DHL, UPS, and TNT.

With two failed attempts to go public and cooperation with US-based private equity company Warburg Pincus fruitless, ZJS Express has resorted to a new round of reform. It has laid off over 5,000 employees and withdrawn the administrative power of some 20 branches back to the headquarter office.

Yang Yuanding, chairman Lenovo:

Facing the impacts caused by US financial crisis, Yang confessed that it would be difficult to expand business in the US and other developed countries. Therefore, Lenovo must stabilize its business in these developed countries, while searching new opportunities in the emerging market.

In addition, due to heated competition and price slashing, its gross profit margin in the first three fiscal months registered a modest decline to 14.1% from a year-to-year increase of 14.8%. For this, Lenovo launches its diversification strategy to produce more profitable computer servers, printers and other digital equipments centering on its PC business.

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