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Asia's fast economic growth will not automatically lead to the creation of globally competitive companies, but the success of Asian corporations will contribute a lot to the continent's new role in the world economy.
That explains why so many business leaders were invited to the annual Boao Forum for Asia, which concluded Sunday in south China's Hainan Province.
At a time when this dynamic continent is trying hard to seek a mutually beneficial approach to facilitate Asia-wide development, local business leaders are certainly expected not only to share their opinions, but are also urged to assume their role in pioneering the rise of Asia.
As a major beneficiary of the rapid expansion of Asian economies, a number of local companies have come into being over the past few decades. Their remarkable performances, in turn, have increased the speed of economic progress in their specific countries while boosting regional economic integration.
Yet, to match the increasingly important role Asia plays in the world economy, Asian companies still have much more to do regarding both internationalization and corporate governance.
China has made clear its ambition to foster world-class companies by encouraging domestic firms to go global.
With a couple of top domestic enterprises already on the Fortune 500 list of the largest global companies, many Chinese companies are eager to sharpen their global competitive edge by investing overseas.
For instance, Lenovo, China's top PC-maker, has bought IBM's personal computer business - three times its size - to secure a footing in the markets of more developed countries.
It is hoped that further economic integration in Asia will provide more opportunities for Chinese enterprises as well as other Asian companies to better tap the expanding markets in the region.
However, size matters but it is not everything.
Improved corporate governance is a must for Asian companies, especially those from developing countries, to withstand the intense competition from multinationals at home and in global markets.
Though the region as a whole has recovered from the financial crisis that occurred in later 1990s, not all past problems have been thoroughly addressed.
The lack of a clear-cut definition of corporate governance remains more or less a pressing question for most Asian companies.
Combining international practices with the actual conditions of each country will constitute a major challenge for individual Asian companies when upgrading corporate governance.
Economic openness and active participation in the international production system are also crucial to the reform of corporate governance.
Hence, to create a favourable environment for local businesses to become bigger, more efficient and internationally competitive, Asian countries need to better honour their commitment to free trade to sustain the on-going momentum of economic integration in Asia.
That means, regionally, they should keep removing trade barriers and enhancing economic cooperation. Globally, they should join efforts to promote a fair trade system under the World Trade Organization.
Meanwhile, seizing the chance to build themselves into locomotives of local economies, Asian companies should also make themselves socially more responsible.
(China Daily April 25, 2005)
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