ABSTRACT
This chapter firstly summarises the competition situation of Chinese private manufacturing firms in globalisation, including increasing competition pressure, promising development prospects and rising leading firms. Secondly, it concludes 10 current development challenges for Chinese private manufacturing firms. These challenges are the insufficiency of technology strength, shortcomings of corporate governance, incapability of system integration, incompetence of customer interaction, limit of brand influence, ineffectiveness of market supervision, inequality of resource allocation, immaturity of industrial policy, weakness of industrial foundation and incompetency of human resources. Thirdly, it discusses policy implications. It suggests that the government not only promote further economic reform by advancing SOE reform, strengthening market supervision and cultivating the private sector, but also facilitate industrial upgrade by enhancing high-value added segments, strengthening national innovation systems, supporting basic industries and improving vocational education.
