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Prof. Zhou Qiren: Chinese Manufacturers Should Cast Eyes on Overseas Production and Operation

Aug 11-2023   



Apart from exporting products, Chinese manufacturers should also try to export their manufacturing capabilities, remarked Prof. Zhou Qiren of the NSD to a group of entrepreneurs following their visit to two private firms in Yantai City in eastern China.

 

Viewed from a broader perspective, China’s manufacturing prowess has the possibility of putting down roots around the world, as many countries and regions, such as Vietnam, Cambodia and Egypt, aspire to build more factories – the best possible path to create jobs for farmers and drastically increase their incomes, said Prof. Zhou. IKEA hails from a Swedish village, and its stores in China are highly popular. The same could become true of many Chinese products, but they are yet to make attempts at overseas production and operation.

 

The further development of China’s manufacturing sector also hinges on its transformation from ‘I see it therefore I make it’ to ‘I imagine it therefore I make it’, said Prof. Zhou. The former refers to producing goods that have already appeared in the global market. For him, modern manufacturing must be powered by imagination and guesses, which form the fountainhead of fundamental ideas and technology. A belated transformation would turn China’s late-mover advantages into disadvantages, cautioned Prof. Zhou, adding that it is imperative to set store by originality and not just cost leadership.

 

According to his observations, ever more Chinese enterprises are going beyond the stage of being ‘cost killers’ and entering a new stage of development, which is characterized by the focus on quality improvement. The tech giant Xiaomi, in its early years, worked with the strategy of higher quality for the same price or lower price for the same quality. But lately it has been bent on improving quality and branding to create brand premium. Overall, Chinese manufacturers have gone a long way in ‘I see therefore I make’, but when it comes to ultra-sophisticated and precise equipment, they still lag the best global companies by a bit – but it means a world apart in clients’ purchasing decisions, said Prof. Zhou.

 

Copying engenders lawsuits and hurts moral standing. Another factor that must be considered is that some overseas universities are barring Chinese students from applying to certain so-called sensitive majors. They all point to the absolute need for Chinese manufacturers to go original, and no promising buds are too small to be ignored, said Prof. Zhou.

Prof. Zhou Qiren: Chinese Manufacturers Should Cast Eyes on Overseas Production and Operation

Aug 11-2023   



Apart from exporting products, Chinese manufacturers should also try to export their manufacturing capabilities, remarked Prof. Zhou Qiren of the NSD to a group of entrepreneurs following their visit to two private firms in Yantai City in eastern China.

 

Viewed from a broader perspective, China’s manufacturing prowess has the possibility of putting down roots around the world, as many countries and regions, such as Vietnam, Cambodia and Egypt, aspire to build more factories – the best possible path to create jobs for farmers and drastically increase their incomes, said Prof. Zhou. IKEA hails from a Swedish village, and its stores in China are highly popular. The same could become true of many Chinese products, but they are yet to make attempts at overseas production and operation.

 

The further development of China’s manufacturing sector also hinges on its transformation from ‘I see it therefore I make it’ to ‘I imagine it therefore I make it’, said Prof. Zhou. The former refers to producing goods that have already appeared in the global market. For him, modern manufacturing must be powered by imagination and guesses, which form the fountainhead of fundamental ideas and technology. A belated transformation would turn China’s late-mover advantages into disadvantages, cautioned Prof. Zhou, adding that it is imperative to set store by originality and not just cost leadership.

 

According to his observations, ever more Chinese enterprises are going beyond the stage of being ‘cost killers’ and entering a new stage of development, which is characterized by the focus on quality improvement. The tech giant Xiaomi, in its early years, worked with the strategy of higher quality for the same price or lower price for the same quality. But lately it has been bent on improving quality and branding to create brand premium. Overall, Chinese manufacturers have gone a long way in ‘I see therefore I make’, but when it comes to ultra-sophisticated and precise equipment, they still lag the best global companies by a bit – but it means a world apart in clients’ purchasing decisions, said Prof. Zhou.

 

Copying engenders lawsuits and hurts moral standing. Another factor that must be considered is that some overseas universities are barring Chinese students from applying to certain so-called sensitive majors. They all point to the absolute need for Chinese manufacturers to go original, and no promising buds are too small to be ignored, said Prof. Zhou.