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The heat of buying is still on in Asia at the age of low carbon economy
Issue date:09/08/2010
Source:Chinamac Journal
Staff reporter
James Jin. VP, GM of Asia Pacific, MFG.com at the procurement meeting
James Jin. VP, GM of Asia Pacific, MFG.com at the procurement meeting
Editor's note: Some that the low carbon economy will affect the export of China, at the same time it brings a group of American manufacturers to China and let them discover the huge market here. There is always two sides of a factor to consider whether it is positive or negative. Chinese enterprises have to realize the pros and cons that will be brought by the trend of introducing low carbon economy as soon as possible. By developing innovative technologies, system reformation, industry transformation, or developing new energies, etc., Chinese enterprises can equip themselves and enhance their own competitiveness that let them develop their own economy as well as social benefits at the same time.

Low carbon economy: beneficial to the economy and social

Being a cutting-edge economic concept that referring to a generalized society, low carbon economy involved a wide range of industrial as well as administrative domains. At the present stage, the government and enterprises share the environmental responsibility by implementing low-carbon policies. Manufacturing industry in such low carbon economy has to consider its consequences reasonably before taking any action. "Low carbon" is not just a slogan, but can turn energy saving into the guarantee of low cost, high quality and timely delivery if it is effectively practiced in the manufacturing industry. Introducing low-carbon technology can also help you avoid the impact of the carbon tariffs at an early stage. As a result, it can help enterprises to develop their own business and also bring immeasurable social value.

Developing low-carbon economy is an important measure to adjust the industrial structure. Through developing low-carbon economy can we raise the exploitation efficiency of resources and energy, reduce the carbon intensity of our economy, and can encourage the optimization and upgrading of our economic structure and industrial structure. Moreover, it is also a path for China to initiate international cooperation, or to be part of the international rules-setting body. Although the industrialization in China enjoys the advantage of backwardness on globalization, institutional
arrangements, industrial structure, technical revolution, etc., we have to accept the international regulations predominated by developed countries, and position at the lower end of the profit "Smile curve" of the international division of labor. Developing low-carbon economy not only can we joint hands with developed countries in developing related technologies, but also directly participate in discussion and making new international rules that will be beneficial to China's mid- and long-term development and stability.

Chinese enterprises should leverage the low-carbon economy to achieve industrial restructuring

The globalization of social division of labour causes the shifting of industrial chain of some manufacturing industries to Asia, such as the traditional casting forging in the past to today's new energy industry (e.g. wind power, hydropower), aerospace industry, high-tech industry (e.g. LCD production), etc. In this case, there is a great chance that made-in-China can become created-in-China, and there are also some examples that can locate new living space or niche market and become successful. Even in traditional industries, enterprises should also respond to the increasing demand of practicing low-carbon manufacturing from the public. For example, some casting enterprises in Yangtze River delta area started to upgrade their smelting equipment to reduce pollution to the environment, schedule modeling in daytime while pouring in nighttime to reduce electricity cost, and improve the casting technologies to raise the quality and standard of products. The next level of low-carbon manufacturing may need to consider cost reduction and the sustainability of development for improving energy efficiency, increase staff training to raise the passing rate, improve manufacturing technologies to reduce unit cost, or develop marginal products to increase the profit share from the whole industry chain.

In the first half of 2010, improvement was shown in export of various industries. On 23 June, the procurement meeting held by MFG.com, the world largest manufacturing procurement online market, was successful held at Jianguo Hotel Shanghai. About a hundred or so industrial procurement buyer delivered a message, "The heat of buying is still on in Asia at the age of low carbon economy." In the meeting, most of the buyers from multinational enterprises expressed that their company has the requirement for low-carbon products. They consider suppliers as a form of extension of production processes of their own enterprise. They therefore have requirements for their suppliers' level of environment protection, energy saving measures, and social responsibility. They also try their best to help the suppliers with the concept of lean production to improve the quality of products, optimize manufacturing process, increase efficiency and reduce losses in order to maintain the sustainable competitiveness of their own supply chain.

Having observed for years, James Jin. VP, GM of Asia Pacific, MFG.com concluded, " 'made in China' plays an important role that indispensable in the global market. Those small to medium-sized manufacturing and processing enterprises that are seeking to develop and produce made-in-China products might start to analyze from industrial aspect, government regulation aspect and energy efficiency aspect to learn to deal with pressure with rational approach and to seize opportunities. I know there are many buyers cannot find suitable suppliers to meet their orders. When all enterprises in the world are seeking low-carbon and high-quality products, those suppliers that can meet the urge timely will get the chance to develop."

In conclusion, the coming of low-carbon era has made requests to enterprises. Timely concern about the new developments of manufacturing and adjust the development strategy as soon as possible are the correct strategies for long-term development.
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