Return of the zombies
Chinese companies continue to be hampered by debt and zombie firms. Seafood processing and fisheries in China are still suffering from over-capacity –something caused in part by the existence of state-owned processors that exist on debt secured with the implicit guarantee of government bailouts. These firms often compete for business on unsustainably low prices, forcing other firms to do likewise and endangering quality and food safety standards.
Such unfair competition is a big reason why China’s innovation record isn’t getting better in seafood product development and branding, despite some honorable exceptions. Meanwhile, cutthroat price competition in related areas newly opened up to private investment – logistics, for instance – is hampering quality and safety of seafood distribution.
