abandon its traditional industries as it moves up the value chain, because the sector matters to people's livelihood as well as employment. Ma warned that as global interdependence deepens, the country's economy will become vulnerable to global uncertainties if traditional industries lose their competitive edge. He cited the recent wave of relocations by US manufacturers of their outsourced facilities as an example. "Western policymakers have started to reckon it is time that their countries return to manufacturing to create jobs and prevent more manufacturing skills from being exported," he said. "Shanghai should take note." Zhang Yan, a professor at China Europe International Business School in Shanghai, said traditional industries still play a key role
in creating jobs. "People should be more aware that job losses in the traditional sectors cannot easily be offset by adding headcounts in the service sector," she said. On the contrary, manufacturing posts help create additional employment opportunities in related industries and in the service sector, she added. Ge said that some sections of the city's industrial sector are already beginning to wane amid soaring labor costs and outdated business models, and that work needs to be done by many businesses to raise their brand awareness as part of a manufacturing renaissance. Shi Chao, the president of Shanghai Tabacco Group Co Ltd, warned that some of the city's traditional products were in danger of becoming "obsolete". "Brands need to stay vigorous,
and high-end technology companies need innovation to maintain their brand reputation," he said. "Made in Shanghai" used to be considered a strong endorsement of top quality, said Shi, but the glory days of some of its most famous brands - such as pens from The Shanghai Hero Pen Company, watches from Shanghai Watch Factory or bicycles from Shanghai Forever Co - have started to fade. Ge noted that to increase the number of global Chinese equivalents of Coco Cola, McDonald's or Walmart requires not only financial resources, but executives experienced in international operations, and the latest high technology and branding. He Wenbo, chairman of Baoshan Iron and Steel Co Ltd, China's biggest steelmaker, emphasized that to compete with emerging industries, investment in advanced technology is crucial. 05