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Companies in Heilongjiang Benefit from Benign Competition

As a large province in the northeast of China, Heilongjiang province has many companies, which are state-owned, civilian-run, joint venture and overseas-funded. The fields reached by these companies are wide and comprehensive.

Asked the most famous company in Heilongjiang, the natives must tell you the Harbin Pharmaceutical Company (Figure1), Harbin HaFei Automobile Industry Group (Figure2) and Harbin Electric (Figure3). These three big companies have strong abilities, well developed system and world-class technologies, promoting the economic growth of Heilongjiang.

Taking the Harbin Pharmaceutical Company as an example, this industry group includes twelve factories and companies. There are countless points of sells all over the country. As everybody knows, the pills produced by the Sixth Pharmacy Plant and Shi Yi Tang Pharmacy Plant, two subsidiaries of Harbin Pharmaceutical Group, appear in the TV advertisements frequently and are used by patients often. As the rapid development, the Six Pharmacy Plant also produces beverages and health food besides manufacturing drugs. In addition, making full use of the medicine resources (vegetable drug, animal medicine, mineral medicine) of Heilongjiang, Harbin Pharmaceutical Company has produced more than 500 kinds of medicines. Besides all the achievements, this big company still has big problem—the environment problem. When I studied in Heilongjiang University which is thousands meters far from the Harbin Pharmaceutical Company from 2008 to 2012, a kind of weird smelling produced by manufacturing medicines often filled the air. According to some studies, this smelling is very harmful for health, which can cause the cancer and many citizens expressed their dissatisfactions. In July,2011, the CCTV1 even reported the harmful smelling of Harbin Pharmaceutical Company, making a negative impact to it. This is caused by the undeveloped sewage system. Actually, the same case happens to Harbin HaFei Automobile Industry Group. The infrastructure and the technology are pretty well and it develops smoothly. But recent years, its reputation is not as good as before, because the employee benefit and the services go down.

Making comparisons, it can draw a conclusion that the deep reason causing the slow development is the shortage of benign competition. In Heilongjiang province, there are no companies which can contend with them, so without competition, there are no motive power to provide first-class service and benefits. As a result, more attentions are paid to the maximum profits with minimum costs. Their infrastructure and technologies should catch up with development and improvements should be made on their services and stuff benefits.

Like Heilongjiang’s companies have branch offices in other provinces, there are others’ controlled companies in Heilongjiang. Nowadays, express companies weigh more in people’s life, especially young people. More and more people favor shopping online, which promotes the development of express companies. The express companies used often are YuanTong Express, ShengTong Express, ZhongTong Express and ShunFeng Express. Actually the benign competition benefits them, making good express speed, services and the security.

When I was in the campus, I did a research on the students’ usage of these express companies who has pickup location in the campus. I did that research by questionnaire investigation, visiting 400 female students (female students like shopping online) and about 300 of them did shopping online and used the express companies to send or receive things by post.


Apart from EMS, which is state-owned, other four express companies have competition with each other and according this research I did, they are comparable. Maybe ShunFeng has the lower percentage, but its company has great strength, the result has the relation with the object of study—the economic dependent students who want to cost minimum. It’s the reason that makes the achievement of ZhongTong Express Company. And it’s wisdom for ZhongTong to cooperate with sellers to make the fee off. The benign competition promotes the development of the companies.

Having introduced and analyzed above-mentioned companies in Heilongjiang, we can see the benign competition is important for a company. It can provide more development space to the companies, large or small.