San Jose Messenger: Innovation Makes China Go Wrong.

The San Jose courier May 29, 2010 article: lack of innovation and how much wrong China has done.

Please tell me the name of a Chinese trademark.

Japan has SONY; Mexico has Corona (famous beer brand); Germany has BMW; Korea has Samsung.

China has...

?

Don't feel embarrassed. Many people can't answer it as well as you.

This problem is indeed a big problem for China.

China successfully surpassed Germany last year to become the world's largest exporter. It is likely to surpass Japan this year and become the second largest economy in the world.

Although China has already played a pivotal role in the world, the lack of international brands is threatening China's dream of a superpower.

Without an influential brand, it means that China is still trapped in the role of the world factory, and most of its profits have been made away by overseas design and R & D companies.

IPhone is pure made in China, the highest standard version is priced at 750 dollars, and China can get a profit of 25 dollars if it is lucky.

A pair of Nike shoes, China can only be divided into very small profits.

"We see that the profits of a barrel can be taken away by foreign businessmen but powerless, because they have brands, none of us," said Fan Chunyong, Secretary General of China industry overseas development and Planning Association.

"The clothes we produce are all in Italy, France and Germany, so the profits are all nothing to do with China.

China needs and must support an international brand as soon as possible. "

The lack of innovation in China enables it to rely only on assembly, but can not conceive and invent designs like foreign countries.

This means that China has fallen into a vicious circle: producing goods and paying a large amount of patent licensing fees to foreigners.

In this regard, the Chinese government began to invest heavily in brand building, encouraging innovation and protecting the market.

Through tax relief and state subsidies, China implements the so-called "going out strategy": state backed companies are constantly looking for acquisitions of foreign capital, snapping up natural resources and extending their tentacles overseas.

In China, the "self innovation" campaign was launched to encourage domestic companies to produce high-tech products.

In recent years, the western media have paid close attention to a series of actions in China: including the "go global strategy" and China's global big takeover of oil, natural gas and automobiles, even US Treasury bonds are not allowed to pass.

In 2000, China's overseas investment was only $28 billion, and now it has reached an astonishing $200 billion.

However, a little bit further, even if China's overseas investment has reached such a surprising number, its achievements are still pale compared with those in Singapore, Russia and Brazil.

The investment in developed countries is only 17 billion dollars, which is equivalent to the overseas investment of Forbes 500 strong middle stream company.

The 34 major Chinese companies listed in Forbes's top 500 are mostly in China.

The three largest banks in the world belong to China, but none of them ranked the top 50 in the ranking of global business distribution.

"If 10 years of development and Chinese enterprises stay in China, it will be hard to see what they will do," said Du Zhihao, director of the China research and insight center of DDT accounting firm (Kenneth J.DeWoskin).

China has always regarded foreign patents and intellectual property rights as bondage and tried to fight it, but there is a problem.

According to the Western telecommunications industry, China has paid over $100 billion in patent fees to foreign companies in order to use the patented technology of mobile phones.

So in the late 90s of last century, China decided to develop mobile phone communication technology with independent property rights, but after investing $30 billion in research and development expenses, it has no more than 2000 users in China's 500 million user market.

Mobile phone manufacturers have told the Chinese government that they will not consider using the technology on their own phones unless there is government subsidy.

At the same time, China has exported this technology to Romania and Korea to encourage overseas markets.

Joerg Wuttke, a former chairman of the China Europe chamber of Commerce, who has worked in China for 25 years, said: "China is still facing difficulties.

The input and output of universities are totally out of proportion. "

China faces more challenges on the way to internationalize its enterprises.

The survey shows that Chinese executives spend a lot of time and energy on government officials rather than customers, because officials are the key to making profits in China.