Private firms have to adapt to the times

Editor's note: Since the beginning of reform and opening-up, China has been committed to injecting new impetus into the economy. What are the key focuses for the year ahead? Three experts offer their insights to China Daily.

Given the changes in the economic landscape, private enterprises need to change their mindset, too, and understand the characteristics of the new landscape while aligning their thought processes with it in order to achieve their goals.

To discern these characteristics, they need to compare the new landscape (or the "new paradigm") with the previous one or the "old pattern". The old pattern was characterized by a small base but a high growth rate, a vast industrial space where almost any production activity was profitable because natural resources were inexpensive and labor costs were low. It leveraged traditional and comparative advantages, gained from entering low-end and cheap segments of the supply chains or from being a latecomer to a sector. This gave rise to imitation but ensured rapid progress following in the footsteps of established players.