CHINESE manufacturers should shift the focus to quality from quantity in equipment exports and expand joint production overseas, to boost efficiency in the slowing economy, said a report carried on a government site yesterday citing Premier Li Keqiang.

    Chinese companies in sectors from consumer goods to railways and nuclear energy are increasingly looking to tap overseas markets as growth at home slows, as well as to gain valuable technical knowledge through tie-ups with international firms.

    “With rising labor cost and increasing constraints of resources, the ‘volume in and volume out’ model is no longer sustainable,” a report posted on the Central Government’s www.gov.cn.com quoted Li as saying at an equipment seminar.

    Companies shall instead focus on “quality in and quality out,” importing top-notch technology and key equipments that are short in China and exporting high value-added products in a “full-chain” that includes also expertise and services, Li said.

    “Companies must not only compete in the domestic market...to compete head-on with multinational players will force us to enhance quality and services,” the premier was quoted as saying.

    Chinese manufactures shall also place an emphasis on exporting “investment products,” away from an earlier focus on consumer goods.

    China plans to cut red tape and reduce costs for Chinese firms looking to spread their reach overseas to help boost growth and stave off a wider economic slowdown, Li was quoted earlier in a government statement.(SD-Agencies)