Insiders say it is imperative to establish a large rubber enterprise group at the national level.
The development of small enterprises inferior in technology, equipment and products is uncoordinated and often irrational. In the disorderly market competition, it is increasingly common for enterprises to disregard economic returns in production decisions. Tires, the industry s dominant product, are a good example. The number of rubber manufacturers has increased from 60 in the 1980s to the present 600, yet less than 30 of them are capable of manufacturing 1 million tires annually. Secondly, enterprise management is deteriorating.