Experts from the Ministry of Industry and Information Technology: Enterprises "doing small" and "doing nothing" are also transformations

Yesterday, the 11th SME and private economy innovation and development lecture hall was held. Experts from the Ministry of Industry and Information Technology believe that it is not the only choice for enterprises to become bigger and stronger. In the context of slowing economic growth and overcapacity in the country, it is also a transformation and upgrading of enterprises to “do small” and “do nothing”.

Dr. Zhang Weizhi, a special expert of the Ministry of Industry and Information Technology and deputy director of the Research Department of the Private Economic Research Institute of Peking University, believes that the domestic economy is over-reliant on investment and forms a strange circle of “no money, no economy”. At present, China is in the period of economic growth shift, structural adjustment pain period, early policy digestive period, and external environment cold period. In the context of the domestic economic development turning into a new normal of medium speed and a serious overcapacity, there will be a number of enterprises falling.

Zhang Weizhi said that in addition to adopting the methods of engaging in the sunrise industry and the high-end nuggets in the industrial chain, the enterprise development can also be “hands-on” and engage in “counter-cyclical” industries that the state invests heavily, such as urbanization, transformation and upgrading industries. In addition, you can also "do small" and "do nothing". For example, GE has developed into an international giant by shrinking its loss-making industry across the board. In Shenzhen, a LED screen company has a market capitalization of only 500 million yuan. It was acquired by a listed company and obtained 1.5 billion in cash and part of its equity. "For the shortcomings and weaknesses of the enterprise, it is not necessary to make up for it, and it can be 'thrown out', and the business operation will be more stable."

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