Dong Mingzhu: Don't Rely On Buying Core Technology.

Due to the core technology In the hands of others, most enterprises can only rely on cheap labor and consume a lot of resources to participate in international competition.

Do not expect to buy core technology -- visit GREE An electric appliance CEO Dong Mingzhu

She and her business are legendary; from general salesman to general manager, she leads the company to a 11 consecutive year. Sales volume The first achievement; the regional sales company mode and management mode she built by herself has become the benchmark of the industry. Her name is Dong Mingzhu. In March 11, 2010, Dong Mingzhu, President of GREE electric appliances, read the "China Initiative road initiative" at Peking University. She appealed to domestic enterprises to jointly develop the road of "China creation" and take practical action to enable more Chinese enterprises to become "Chinese created" enterprises. Zhejiang business reporter interviewed the business woman for this purpose.

Don't expect to buy core technology.

How do you think "China's creation" is at the international level?

Dong Mingzhu: your reports are quite comparable. In fact, GREE is not as strong as you say. GREE will achieve 50 billion sales target this year.

Since reform and opening up, China has grown into a big manufacturing country. But because the core technology is in the hands of others, most enterprises can only rely on cheap labor and consume a lot of resources to participate in international competition. After the outbreak of the international financial crisis, a large number of manufacturing enterprises collapsed. GREE electric hopes to make greater contributions in promoting the transformation from "made in China" to "made in China". So this is the responsibility of GREE, we launched this initiative, the purpose is to call on everyone to explore the "road of China's creation", and take practical action to enable more Chinese enterprises to become "China created" enterprises. Because there is no "China creation", Chinese enterprises will have no way out, and China's economy will have no way out.

Speaking of creation, we must not talk about technology. Recently, watching CCTV news, I always see Jackie Chan's GREE Electric's "core technology" advertisement. It is said that Chinese enterprises can not rely on flowers and fist to embroider legs, but must master core technology.

Dong Mingzhu: I can tell you a set of figures: GREE Electric has 45000 employees, of whom nearly 3000 are R & D personnel. We have set up more than 300 laboratories, which are the largest in air conditioning enterprises. Now, we spend more than 2 billion yuan on scientific research every year. At present, GREE Electric has more than 2000 patent technologies, including more than 300 inventions, and more than 7000 varieties of products developed. GREE will not change professionalism. A series of products, such as motors and compressors in our products, are the supporting products with huge market demand. It should be said that we have achieved diversification in specialization.

The annual R & D investment of 2 billion yuan is not a small sum.

Dong Mingzhu: look at the number of enterprises in China's automobile industry, which are joint-venture with overseas enterprises. But the result of joint venture has not changed to the core technology, and the market has given up to others.

The real core technology is not to expect joint ventures, nor to spend money on them. In 2000, we got a project of 1 hosts with 4 extensions in Chongqing. At that time, we already had the technology of 1 dragging 2, and felt that even if we couldn't develop it, it would not be very difficult to go abroad to buy relevant technology. But in Japan, when people talk about 1 or 4 of the technology, they immediately say that the most advanced technology cannot be taken to China. Only then did we know that some of the less advanced technologies were introduced into China. We learned a lot from that project. Without technology, you have no bargaining power. A product with a value of 10 million yuan, because you can not produce, only he can produce, so he can offer 15 million yuan, 20 million yuan, you can not help.

But GREE is now cooperating with Japan's Daikin.

Dong Mingzhu: the cooperation with Daikin, GREE holding 51%, is a kind of reciprocal cooperation. This reciprocal cooperation is achieved by our GREE's R & D advantage. GREE Electric is in the leading position in the core technology fields such as compressor and frequency conversion technology. Because of this, our joint venture with Daikin is likely to be "peer-to-peer". If Daikin does not cooperate with our GREE, they will encounter a very strong competitor in the international market in the future. The cooperation between the two sides can occupy the two commanding heights of technology and market. This is a win-win situation. {page_break}

Voluntarily abandoning 3 billion yuan order

But many companies are reluctant to invest in it, and the payback period is long, coupled with the international financial crisis.

Dong Mingzhu: many enterprises are unwilling to invest. Everyone wants to reach out to the government. The government will put money into it. Such an enterprise is very dangerous, because a wave of sand is an inevitable process. Once an enterprise loses its ability to innovate, it will be too late to think back. At this time, the government will give it a little bit of money to save the enterprise, and ultimately it will not survive. After more than 30 years of reform and opening up, we used to make money as long as we could, but in the next 30 years, I think it should be a strong period for the whole country. All entrepreneurs should take the responsibility. Your business scope and your business must take into account the high degree of consistency with the country.

At the time of the financial crisis, many enterprises are facing great pressure and hope that the government can help them. Is GREE not stressed?

Dong Mingzhu: you said there was no pressure at all. It was definitely not. But I didn't say that when I was under pressure, I would say, "Oh, it's over. The government is coming to help me. I'm going to go bankrupt, and you will support me." At any time, I say that our enterprises do not need such help. What we need is a better competitive environment. It is up to our enterprises to face this difficulty. We can not rely on the government to stretch out the difficulty. For example, it's raining today. We didn't expect to have a thunderstorm or 11 typhoons. Maybe some houses fell down. It doesn't matter. They can be rebuilt, but one of them is confidence. The other is to reexamine themselves and why the house can not be built more firmly. During the financial crisis, the export pressure of enterprises was particularly high, but I still abolished an order of about 2500000 sets of 3 billion yuan.

Why refuse?

Dong Mingzhu: everyone else is asking for orders. They think they can make money with orders.

The international financial crisis has reminded us that most of the money we made in the past did not create a quality or brand value, but a simple process.

Under such circumstances, we may face many risks. For example, if the other party does not want to pay, what do you do? You go to court? You go abroad to fight a lawsuit, even if 2 million 500 thousand sets of money can catch up, you pay half of the cost to the lawyer; more likely, I have to take more than 1 billion or even more money to put in, in order to recover this money. So this is the best opportunity for us to build our own brand. For a long time, we are a part of our own brand export, but a larger part is to help others OEM. GREE is a good faith enterprise. It always insists that quality is the first. Even though I process it for you, it also stresses quality. I know very well that if I do not process the other party, the other party will ask others to do it. But in terms of quality control, GREE Electric is the best. In that case, the products of the other side went out, and my high quality products also went out through other channels. During the process of using the consumer, GREE's brand reputation and reputation were felt. {page_break}

Waste cases to promote government's sunshine procurement

In 2009, after the "GREE waste case" happened, you sued the Guangzhou Municipal Finance Bureau and challenged the government departments. Do you have anything else to say about it?

Dong Mingzhu: first of all, I would like to say that GREE is not calling the government. It is the individual departments who destroy the image of the government, and do not have a good view of the government. I think GREE is exactly the same with the government this time. When you make a mistake, how can you put the mistake on the top of the government? After we reported it to Wang Yang, Secretary of the Guangdong provincial Party committee, it was Secretary Wang Yang himself who directed the legal process.

But it is said that when you go through the procedure prosecution, people's air conditioning has been installed. You can't get this project. Why do you still insist on it?

Dong Mingzhu: after this thing came out, many enterprises said we were great and dare to tell the truth. I said that if such a thing happens, no one dare tell the truth, and how to purify the environment.

I feel that I am not only in litigation, but in promoting our government procurement more sunshine. We hope to get a fair result through such a complaint. Or, because this matter can promote government procurement to become more fair and sunny, its real significance is precisely here. In the implementation of the newly revised government procurement law of Guangdong Province, the procedures such as bidding, competition and scrap have been adjusted and revised. This is an improvement.