The financial crisis is forcing Chinese enterprises to make adjustments. Many enterprises have to accept smaller orders in order to survive.

Mr. Che, a Chinese Executive who deals with the export business told the reporter in Beijing that Chinese enterprises were likely to receive much smaller orders in the future - just as Korean and Japanese enterprises have. During this process, Chinese enterprises would have to gradually enhance the added-value of products and continuously move up the value chain.

Before the recession, Chinese enterprises usually received big orders because of the lower price. Economies of scale generated by big orders sustained Chinese enterprises' competitiveness for a relatively long period of time. Among those profitable strategies, original equipment manufacturing (OEM) was rather successful. The outbreak and spread of the financial crisis, and the shrinking of the export market, has challenged Chinese companies operating at the above-mentioned business mode. A survey conducted by Chief Executive China revealed that overseas buyers not only expect value-for-the-price products, but also hope Chinese suppliers will accept smaller orders.

Big orders are now divided into several smaller orders, and are placed to different manufacturers. Hence, production costs will soar and will put enterprises under greater pressure. Analysts even forecast that one-third of the enterprises across various industries, such as the paper industry, would shut down after financial crisis.

As pressure faced by enterprises rise, "solutions" to bail them out are emerging endlessly.

Despite shrinking orders, Hayagreeva Rao, Professor of Stanford Graduate School of Business in the U.S., advises Chinese enterprises not to catch a straw like a drowning man.

Professor Hayagreeva Rao shared an example of an American company at the Executive Development Program, which was jointly organized by Chief Executive China and Stanford Graduate School of Business. He revealed that, in order to gain profit, there are times when we have to give up some of our clients, rather than catering all of their requirements.

While Chinese executives are taking this financial crisis as a "break" to attend Professor Hayagreeva Rao's lectures, they all hope that the economic slowdown ends soon. Otherwise, no prescription will be effective if companies face cash flow shortage.