Dialogue: How Do Entrepreneurs View Internationalization Made In China?

2007 China Manufacturing Forum was held in Beijing in December 8, 2007. The forum invited scholars and entrepreneurs from China and Japan's industrial and economic circles to deeply analyze China Japan industrial policies, analyze the successful experience of Japan's manufacturing industry internationalization, and work together to find countermeasures for the struggling Chinese manufacturing industry and create a favorable environment for development.

Moderator (CCTV presenter Ma Hongtao): Good afternoon, everyone. I am very happy to discuss with you the topic of China made here.

I now have an identity as the executive director of CCTV's annual selection of Chinese economy. I also hope to help our awards at the scene.

Why is it exciting to hear that made in China?

We have a news conference the day before yesterday. The theme of this year's selection is called "2007" to find the backbone of China's manufacturing. After we have held the forum for two days, we should understand why Chinese manufacturing is the theme of this year.

Made in China has become a topic of growing concern worldwide. As our own entrepreneur, as our government, of course, there is no reason why we should not discuss this issue. We must find a way out for China to create the future. We are very happy to discuss this topic with you.

In the afternoon, our forum has two dialogues in the form of dialogue, the first is the dialogue between entrepreneurs and the second is the dialogue between the government. First of all, we invite the chairman of the first dialogue: Mr. Wang Xinchao, chairman of Jiangyin new trend technology group; Mr. Huang Ming, chairman of Huang Ming group; Mr. Bian Huatuo, chairman of Far East holding group; Mr. Liu Yong, research fellow of the Institute of industrial economics, Chinese Academy of social sciences.

First, the theme of the forum is how entrepreneurs perceive internationalization made in China.

The first time we put forward that Chinese enterprises should go out should be in the Fifteenth National Congress in 1997. This year we are going to recall this topic just now. 10th anniversary, the concept of going abroad has changed a lot. Not only will we go out, but the whole market will become a globalized market. The world has become a flat one.

At this time, the problem that our enterprises are facing is not only whether they should go out and how to go out, but also many new problems. For example, many foreign enterprises are becoming more and more powerful in the Chinese market, not only to go out, but also to face many domestic problems.

What we need to discuss today is the new issue of internationalization that has just emerged over the past two years or the new problem of globalization. This is also the significance of discussing this issue after ten years.

First of all, I asked three entrepreneurs to score a level for the overall level of China's enterprise globalization. If you can give a score to the current level of globalization of Chinese enterprises, pass the four grades of passing, good, excellent and failing grades, and what marks do the revolutionary committees score?

Bian Hua rudder: the host gave me a question of scoring. If scores are scored, we should say that there are still many problems facing the internationalization of Chinese enterprises. The road is still long. We should say that we can only pass the exam.

Huang Ming: I feel struggling on the passing line.

Wang Xinchao: I think the score is 57 to 58 points.

Liu Yong: a small number of enterprises passed, most of them failed.

Moderator: the audience at the bottom wants to score a score for their own businesses. How much is this score?

Wang Xinchao: Why did I just say that I still failed, mainly because there are several key factors in terms of manufacturing industry. Why China was called a big manufacturing country in the early days was mainly our cost, our market and our human resources, but in fact, the conditions for making big power to become a manufacturing powerhouse are not only cost but also quality and quality.

Host: are you satisfied with the results of the internationalization of your own business?

Wang Xinchao: just beginning to enter the internationalization stage, the road is still very difficult, and there are still many things to do.

Host: Huang is a country that produces the largest number of solar water heaters in the world. Is it satisfied with the internationalization of its own business?

Huang Ming: we can score 95 points relative to our international counterparts, but we can only score 30 points against the current international standards and requirements.

We are now preparing for our internationalization.

The solar thermal industry is not internationalized, or it is producing and selling itself. If we want to make a comparison, we will be 95 points. They may fail, but we haven't encroach on their share.

Bian Hua rudder: today I represent Jiang Xipei (Jiang Xipei news, Jiang Xipei). At this meeting, I worked in the Far East for more than five years. Now I am mainly in charge of fund management. The Far East has been the first in the electric heating industry for nine consecutive years, and has achieved about ten billion regulation in the electric heating industry. The gap between us and the world's largest 4 billion US dollars should be narrowed.

In addition, electric heating should be said to be a relatively mature product. Now that we are making sophisticated products, we have taken the pace of internationalization. If we score ourselves, we are still ahead of the same industry in China, but we still have a big gap compared with the best companies in the world.

Moderator: Thank you, entrepreneurs are very objective to evaluate the internationalization of their enterprises, at this time, everyone has a doubt, including every Chinese common people will have such a doubt, we are discussing the number of foreign trade is growing by 10%, 20%, even 30%, every year. At the same time, we see that the products produced by many industries have already ranked first in the world. There are still many growth potentials. There are many hidden champions. Why did China make such a rapid growth in China? In many fields, it was the first time in the world that it failed to pass the international examination or passed just such a score.

Can Professor Liu analyze the reasons? Why is there such a contrast?

Liu Yong: now the initial impression that internationalization gives us is good quality products and out of the local market.

The second is to invest overseas. Now we mentioned internationalization, especially China's accession to the WTO. After five years, the pition period is over. At this time, internationalization is no longer a single product export, but multinational companies have entered China, and it is already internationalized.

In the past, it was not the product going out, but the capital going out. Now it is no need to go out. Others have already come in, but in fact, it is international competition.

Now our whole competitive orientation has changed a lot. In the past, the strategy of our big enterprises was to use equity holding enterprises to control the huge system through controlling subsidiaries. Including IBM, the whole business in pformation was very fierce. IBM sold its PC business to Lenovo. It has become a data service provider, e - government e - commerce solution provider, and the whole enterprise has changed.

Before IBM sells PC business, many things have been solved through outsourcing. The trend of competition of vane headed by multinational corporations is not through equity control resources, but by contract, in order to control enterprises in the form of contracts.

Domestic enterprises still emphasize cost competition and emphasize price advantage. We attach importance to differential competition, but differentiated competition is not the main means of competition for most Chinese enterprises.

If we do not have this, we should say that international competition is not a level.

A small number of enterprises have already realized the advantages of differential competition. Many enterprises emphasize the performance oriented orientation from the development orientation, and the real international enterprises emphasize strategic orientation.

Many enterprises lack professionalism and lack the spirit of a century of enterprise. They have no money to make money and no money to do.

China's rapidly changing external environment provides us with so many opportunities. We must have an idea when we compete in a competitive environment. We must do well in the manufacturing equipment industry. Without such a spirit and idea, you should not say that you are not a high quality enterprise.

Moderator: when the market changes, we should measure whether China's manufacturing is internationalized.

Huang Ming: I use my case to support Professor Liu's point of view. Now we can see that the internationalization of Emperor Ming is not the first thing to annex a similar company like Lenovo. Second, we can not build dozens of factories abroad like Haier. One is the cost is too high, the second market has not yet been opened, and Haier also says there is a factory after market.

What does Emperor Ming export?

First of all, we asked ourselves, including what is now the internationalization of the domestic market, what is our own market to defend, and whether our entire business model is mature?

For example, the global production of vacuum tube core product automatic production line is released. After the release, we find that the line is often broken. If we want to export the output technology of brand output, Huang Ming can export completely. Many people ask, inside the enterprise, we are all so strong now. Why not export? Why not internationalize?

Are you ready?

We often break the line in our country, and we have to cut off for half a day in the country. Who will manage to break up abroad?

When we break, we can rush around.

Just after the reform and opening up, foreigners made a huge profit from China, exporting production lines, accessories, technology and so on.

According to the solar energy industry, it can be replicated, but it is not ready.

In addition, the concept of brand output is bigger than that of copying products. Apart from these technologies, your services and products are customized locally, including IBM service providers who have local talent in different markets around the world.

Huang Ming's own talent training has not been resolved. The whole solar thermal utilization market accounts for 20% of the total solar energy in the household market, and Huang Ming only accounts for 10% of the 20%. Hotels, hospitals and schools are meeting in any place in Beijing. Especially for such a meeting, there is no substitute for a solar water heater boiler system.

99% of the one thousand hotels, schools and hospitals do not have such a market. How dare we talk about internationalization?

Although all aspects are best at first, they dare not say internationalization.

Host: is internationalization ready?

This problem is not only a topic for Huang Ming, but also a topic for all Chinese enterprises.

After ten years of internationalization, many marks are on the edge of passing. How do we measure the success of internationalization? What is the standard?

Bian Hua rudder: now Chinese enterprises are going international, but we first establish a premise that internationalization does not necessarily have to go out of the country, and now the occupation of a stable domestic market is internationalization itself.

This is very important. Why do I say so?

Because the Chinese market is a big market, which accounts for 1/10 of the world's total, and China is also a fast growing market.

At present, many entrepreneurs in China are actually rushing to internationalize in the absence of a firm market door, which is actually not necessary.

In fact, many industries in China are facing competition from the world's domestic and foreign enterprises. For Huang Ming solar energy, the domestic market is too big. We occupy the domestic market and have a good foundation for internationalization.

Moderator: Although the market is localized, competition is global.

Bian Hua rudder: the whole world is eyeing the Chinese market with eyes and eyes. The internationalization of Chinese enterprises must be based on one level of climbing. This level of climbing is divided into three levels.

The first is processing. We have already passed this road. Now China has become a big manufacturing country, mostly in the processing industry.

The second stage is independent research and development, design and processing. Now some of our industries have done it, but some industries have not yet done so.

In such a process of crossing, we must go through this stage.

Third, it is very important to form its own brand.

When we measure the success of internationalization in China, the key is when we can have independent brands to see our own brands all over the world. This is a very important indicator.

The process of the division of labor in the world is basically divided into three levels. The first is the management and operation center, and the management and operation center. Its brand and its overall capital operation are still in China. Its R & D and processing are now extending to the whole world.

For example, Coca-Cola production and processing industry around the world, Nike shoes around the world, in the past, we say Coca-Cola's greatest value is not its processing nor its formula, but its operation center.

The proportion of China's manufacturing industry is so large that why it is not qualified is just passing line, mainly at the low end of the industrial chain, and we must go to the high end. This is the only way for us to move towards internationalization, and also the only way to accompany the rise of China's great powers.

Moderator: whether a global enterprise depends on the end of the industrial chain, if it has been in the low end, it will not be successful.

Huang Ming: I mentioned the invisible champion just now. Why does China have so many invisible champions? He is not known and can not afford to attack. How does this problem change from the invisible champion?