Liu Zhiqin, a senior fellow at the Chongyang Institute for Financial Studies of Renmin University of China,was interviewed by CCTV China 24 about trade and SME.
Q. Chinese trade in July is shrinking. Are you concerned about that?
A. No, I think nobody is surprised by the result now. We should be satisfied with the outcome we received in the last 7 months compared with the global condition. There is no reason for us to worry about the future of international trade, but it is a good reason for us to have some concerns. Currently we are facing new challenges especially protectionism. The conflicts and disputes are challenges for all Chinese companies, which are flexible enough for those challenges now. Next month we are to have the G20 summit meeting and we will work out new policies for instance to have a better trading system and the supervision mechanism for global trading. China has also adopted a new policy, One Belt One Road. So we can also boost and promote Chinese companies in the global market.
Q. What is the factor that makes the Chinese small companies successful?
A. I think Chinese companies have very good traditions. That means very good transition time in which the companies are flexible and clever to make a transition. They also transformed their business model on the global stage. Now the transition period for the Chinese small companies are finished. They are more world market oriented, stronger and more competitive in the world, going outside of China. Compared with the past we still have space to develop our business. Now in China we have a transplanting period, that means different companies in different areas can join together to be stronger and develop faster. That would promise China more opportunities.