Economy

Companies face rising costs of raw materials, labor

(Xinhua)
Updated: 2010-04-26 10:12

BEIJING: New data released Saturday reveal nearly 80 percent of Chinese entrepreneurs view rising costs of raw materials and labor as the biggest challenge for the future.

Rising costs of raw materials and labor topped the list of challenges for Chinese enterprises in three to five years, according survey results unveiled by Development Research Center of the State Council.

The other challenges include policy changes and government interference, changing customer demands, among others, according to the survey.

As a way of overcoming the difficulties, 75 percent of the respondents said they would look to benefit from rising domestic demand, while more than 66 percent said developing new products and business will help their companies survive.

The survey also shows that 86.4 percent of the entrepreneurs are trying to cut resource consumption in a bid to save costs, while 75 percent of the entrepreneurs are looking for opportunities in line with the country's low carbon use policy.

Targeting Chinese entrepreneurs, the survey was conducted by Development Research Center of the State Council through its Chinese Entrepreneurs Survey System (CESS) from August 10 to October 15 last year, and the results rely on 5,016 valid and completed mail questionnaires.