China’s economy has become much more resilient compared to the 1990s because of the larger number of smaller private enterprises, says analyst Arthur Kroeber of the consultancy firm Dragonomics in The Australian.
“The Chinese economy is a lot more flexible today than in the 1990s.
“Private firms can shift from unprofitable to profitable lines of business, and adjust their wage and other costs, much more quickly,’ he said.
State-owned companies and other larger enterprises are often under orders of the local government not to shed job and maintain stability by sometimes even paying the salaries of defaulting companies.
Arthur Kroeber is also a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do let us know.