Legal Media Review: China'S Economy Is Facing Pformation Challenges.

Paris, August, 1, France's "European Times" published a commentary entitled "challenges facing China's economy in the face of pformation" in August 1st.

The article is summarized as follows: Adidas production base, famous for its sporting goods, will begin to leave China.

Group Chairman Haina explained recently that the main reason for the withdrawal is that China's wages are too high, leading to higher production prices.

The group plans to pfer production to Asian countries with cheap labor, such as Vietnam, Kampuchea and India, as well as Eastern European countries.

China began to implement the new labour law in January 1, 2008 to strengthen the protection of labor interests.

This is a normal phenomenon of economic development and a sign of social progress.

But the impact is somewhat unexpected.

There have been many reports about the withdrawal of foreign-funded enterprises due to the rise in production costs caused by the new labor law. Some enterprises even heard the news. Before the promulgation of the new law, some enterprises had taken countermeasures, some left, and some employees resigned as new employees.

All in all, China's economy is facing great pressure.

But can we retrogress and abandon the new law?

The developed countries in Europe and the United States often complain that economic globalization has caused a large number of enterprises to move out, and the high unemployment rate is attributed to the "unfair competition" launched by cheap labor in developing countries. In this propaganda campaign, China has become the preferred target, and the western media has been enjoying the "non democratic system" in China, calling this system the main reason for "unfair competition".

As for developed countries, how to profit from economic globalization is not a hot topic for westerners. It is a taboo for enterprises in developed countries to move to China because they can not keep up with the requirements of environmental protection.

Criticizing foreign companies does not mean denying everything.

In the process of globalization, China has made great achievements in attracting foreign investment and creating a win-win situation as far as possible. This is beyond doubt.

However, when China continues to move forward and seeks to achieve a balanced development in social welfare and environmental protection, some of the foreign capital that boasts or is regarded as a "civilized operation" should be withdrawn from profits because of insufficient profits.

In fact, the withdrawal of foreign enterprises such as Adidas reflects China's economy starting to enter an important pformation period from one aspect. It is not only reflected in the pformation from labor-intensive production to higher technology and more environmentally friendly production and service-oriented economy, such as the pformation that developed countries started two or thirty years ago, but also shows that the development of the economy pays more attention to the people oriented factor.

Of course, we do not blindly assert that China has entered the ranks of economically advanced countries since then, nor does it mean that such a pformation can be accomplished overnight. However, such an important signal can not be denied.

We are in an era of increasingly fierce competition. It is only a matter of immediate interest, whether we should continue to work together with cheap labour, or from the long-term interests, and turn to an environmentally friendly and technology-based economy in a timely manner. This is a strategic choice that concerns the long-term interests of the vast majority of people.

We believe that a major pformation is obviously a price to pay, but it is absolutely necessary from the perspective of economic and social equilibrium and all-round development, and the preparation and strategic pformation is obviously better than the forced pformation.

Maybe China's economic level is far less than that of the developed countries. But from a long-term perspective, China can adopt corresponding strategies according to its own characteristics, not to mention the others who do not necessarily repeat themselves.

China has made gratifying achievements in reform and opening up. How to protect vulnerable groups in the difficult period of economic pformation, maintain social stability and harmony, and pay attention to education, improve the quality of the whole people, and develop talent advantages rather than labor advantages, can maintain competitive advantage and harmonious and sustainable development in the era of globalization.

In this sense, China faces both challenges and opportunities.