Woes leave legacy we can be thankful for

In addition, businesses are keen to adapt to market changes wrought by the continuing poor economic climate. For example, many old friends of mine who used to do business in Yiwu for years have moved part, if not all, of their production to places with cheap costs.

Relocation has been particularly evident in the past two years. Among about 50 people I have talked to over the years, there were some who said they had been gradually moving from coastal areas. A few even formed a consortium to move their garment factories to Vietnam.

This innovation and relocation demonstrates that Chinese exporters and manufacturers have become more sophisticated and resilient since 2008-09.

Such changes, in line with China's effort to move up the value chain, are highly positive.

The strong resilience of the Chinese exporters I am familiar with, most of them small and medium-sized enterprises, has changed my view.

In 2008 I was a strong defender of small and medium-sized enterprises. I called for the government to do whatever it could to help tide them over as they wrestled with the impact of the worst times since the Asian financial crisis in 1997. But now, despite the continuing economic malaise, the government needs to stay away from big stimulus.

There are at least four reasons.

First, the difficulties of 2008-09 improved exporters' abilities to endure hardship. They become mentally stronger, which is why, I believe, fewer panicked about the present slowdown. That remarkable improvement in Chinese exporters' mindset has become an invaluable asset, and we can thank 2008-09 for it.

Second, the effect of pro-growth policies implemented since April will become fully apparent in the fourth quarter.

Monetary policies usually need three to six months to show their effect. The impact of a slew of measures, such as interest rate cuts, that the government took earlier this year is about to start becoming apparent. Meanwhile, stimulus measures, mostly investment plans introduced by local governments, will also begin to be felt in the fourth quarter. So it is difficult to see any urgent need to aggressively introduce new measures.

Third, the jobs market is essentially stable, greatly reducing the possibility of a more serious economic slowdown and of social unrest.

Unlike what happened during the 2008-09 financial crisis, the present hardships do not wreak havoc with jobs. Mass layoffs have not been seen in the manufacturing and export sectors, and salaries keep on rising. The full-year government target of urban job creation has already been met with the 10.24 million new urban jobs that were created by the end of last month, representing 114 percent of the target.

Last but not least, hastily stepping in to save industries will delay the process of financial reform, industrial upgrades and the transformation of the economic structure.

China has developed a bad habit of jumping to the rescue of battered businesses when the overall economic environment is bad, often delaying economic reform for the sake of so-called stability.

That habit pampers businesses, especially those that should be phased out during China's arduous but necessary transformation from a major exporter to a great consumer.

If exporters are left to fend for themselves, the goal of achieving these great goals will surely be achieved earlier than would otherwise be the case.

The author is a financial analyst in Shanghai. The views do not necessarily reflect those of China Daily. Contact the writer at michaelzhoufeng@gmail.com