BEIJING, Sept. 7 (Xinhua) --As economic globalization progresses, more and more Chinese manufacturing enterprises integrate themselves into the global industrial chain, trading with enterprises from all over the world, and making industrial investment.
-- Chinese brands promote economic globalization
"We will add the newly imposed tariffs to the product cost. How do you think about it? If you can't accept it, please inform us in advance." After the United States announced that it would impose new tariffs on 34 billion U.S. dollars worth of products imported from China, Anhui Yingliu Group, a Chinese mechanical foundry, sent a notice to all its U.S. buyers on July 6.
The responses were strikingly unanimous: all the US customers agreed to bear the cost from the rise in tariffs. It turned out that after scrutinization, the U.S. companies found that the Chinese products still have a cost performance advantage over US products despite a 25-percent increase in tariffs.
"We did not panic when the United States imposed new tariffs on Chinese products because we started industrial transformation and upgrading ten years ago and our products live up to standards." said Ding Bangman, deputy general manager of technology with Yingliu in Anhui, adding that most of the company's customers are the world's high-end manufacturing companies which prioritize quality and delivery over price.
"If customers replace us with other suppliers, it will involve changes in many production processes such as drawings, molds, processes, and compliance, which will be difficult to achieve in the short term."
Du Yingliu is the founder of the company. After sending the letters to his U.S. customers, he led an R&D and marketing team on a visit to some companies in Europe. Today, the Chinese company not only develops and consolidates the U.S. market, but also sells the Chinese-made engines and gas turbine blades to the wider international market.
"At first, we couldn’t make many mechanical products and are ignored by the International companies. Once we have the capacity for production, they show an open attitude and are willing to cooperate with us. One more player in the market means a reduced product cost," Du said.
Engine blades serve as a good example. At first, there was lack of competition among the engine blade manufacturers in the world. They prevailed in terms of price and standards, which placed purchasers in a very passive situation." Perplexed by such situation, many international engine manufacturers expect new blade manufacturers to join the competition and improve cost performance. I visited several European engine factories, who were keen to work with us," said Du.
--- Chinese capital supports technological innovation, helps start-ups
While Chinese manufactures go global, Chinese capital began making overseas investment, opening a prospective market to the world.
Cerevast, a biotech start-up in Washington, USA, developed a product that can treat stroke patients by dissolving their blood clots using ultrasound. Many such advanced and innovative technologies are completed by small and medium-sized start-ups, but they need more capital, strategies and an industrial chain to achieve mass production and to further expand its market. Cerevast is funded by Haiyin Capital, a private venture capital from China in its C-round of financing.
How did Chinese capital help this technology start-up? Wang Yuquan, founder of Haiyin Capital, said the first step is to help Cerevast enter the Chinese market. Through cooperation with the High-end Medical Device Industrial Park in Zhongguancun, Beijing, Cerevast submitted an application for registration and approval of medical devices to the State Food and Drug Administration of China. If everything goes well, it will be approved within 18 months.
More importantly, Haiyin Capital can help the company's transition from research and development to mass production. "Compared with multinationals, small companies are often way behind in terms of mass production and organization on the industrial chain, which prevented many innovative products from achieving mass production and entering the market," said Wang.
Wang came to Shenzhen with a prototype produced by Cerevast. Shenzhen has world-class manufacturing clusters that support the rapid verification and mass production of innovative products. After a Shenzhen manufacturer got products from Wang, head of the company confidently said that as long as Cerevast chose to start production in Shenzhen, mass production could be realized soon and product cost could be reduced.
Chinese investment and manufacturing capacity have supported the technological innovation of the U.S. company, which encountered no barriers in approval and production." The earlier the product goes to market, the sooner it will benefit stroke patients. Such international business cooperation is very popular in China," Wang said.
--- Chinese companies reward global consumers with innovative products
A facility of Xi'an Kaimi Co., Ltd. in Jiading, Shanghai, is debugging its latest intelligent manufacturing line.
What is behind the ingredient synthesis, automatic filling and unmanned selection on the intelligent manufacturing line is the wholehearted cooperation of the world's manufacturing industry: the company has introduced a lot of first-class western equipment, installed the Industrial Internet, and purchased domestic equipment with after-sales advantages.
"With a smart manufacturing line, we can keep up with consumer preferences and iterate the products without delay," said Yu Wen, chairman of the company, adding that previously high cost prevented many custom formulas from achieving mass production.
"Iteration" is an emerging concept about Internet development, referring to the rapid development of prototypes based on demand and rapid improvement based on user feedback. Chinese companies have borrowed and innovated this experience from Silicon Valley in the United States. They upgrade their products and reward global consumers with new products.
"We saw the confidence of Chinese brands from this round of China-US trade frictions," said Xu Lin, director of the Urban and Small-Town Reform and Development Center, National Development and Reform Commission, who believes that industrial upgrading has become the conscious pursuit of more and more enterprises. China will, at the policy level, focus on issues widespread in economic development. It will share its policy dividends across industries and countries by encouraging technological innovation, protecting intellectual property rights and supporting education. While polishing its policies on industries, China will be more open and inclusive to drive economic globalization. (Edited by Hu Pingchao, hupingchao@xinhua.org)
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