CRI听力: Economic Restructuring Easier Said than Done

The Beijing municipal government is trying to attract more animation and online game studios to the old buildings of Shougang, the capital's steel company, after it stopped steel-making operations there.

As Su Yi reports, although this kind of economic restructuring is actively discussed in the ongoing annual political sessions, when it comes to those companies that do this everyday, it is easier said than done.

The western part of Beijing, which once was crowded with heavy industries including Shougang and hundreds of small coal mines, now has cleaner air than in the downtown district.

After the company moved all its steel factories to neighboring Hebei Province, people there have enjoyed fresher and quieter early hours in the morning. Five young men guard the main gate of the factory, which used to be a symbol of pride of their father generation.

Standing by a large cast iron mill, manager assistant, Tian Xiangpeng, says the factory has been transformed into a creative house with arts studios, a food court and exhibition halls.

The initial idea of relocating those factories came after a research which was conducted by the country's political advisors back in 2005. It was designed to make Beijing cleaner before the 2008 Olympics.

Tian Xiangpeng says the project is set to upgrade Shougang's business mode and regenerate the industrial district.
However, the company's management is aware that they cannot make up their losses simply with art studios and animation production.

Some young engineers and workers are reluctant to move out of town. And the company has decided to put more efforts on producing high-tech machineries and expanding its consultancy businesses. It is urgent to help its employees find new positions in these businesses.

Many smaller companies that usually do not enjoy favorable policies as their state-owned competitors are experiencing a hard time, after giving up THEIR traditional business.

One of them is Geely, the auto maker which completed the country's largest ever auto acquisition and bought Volvo last year.

Back in 2007 when the Chinese car market was booming, Geely's CEO Li Shufu closed down a major production line and forced his company to gradually change its low price strategy. He says it cost the company tens of millions of U.S. dollars.

A senior member of the country's top political advisory body, Li Shufu does not believe it was a loss. He points out that it was the only way to survive since Chinese automakers have to compete with stronger players around the world.

China's central government has put "changing the economic growth pattern" in the next five years on its top agenda. Yang Weimin, Director of China's National Committee of Development and Reform, says it is aimed to make the country's economy more environmentally friendly, more competitive and adaptable in this technology-rich world.

But for Chinese companies, a temporary downturn is probably inevitable when they are losing price and labor advantages before they are on the right track to pursue greener and more innovative growth.

For CRI, I'm Su Yi.