Chinanews.com, Beijing, July 2 (Reporter Xia Bin) Intel’s global vice president and president of China, Yang Xu, said in Beijing on the 2nd that multinational companies and local industrial ecosystems are not mutual substitutes, but complementary development relationships.
Competition is not a bad thing, and a bigger market can be created through healthy competition.
The Chinese market is large enough and diversified enough. Only through more complementary cooperation can it not only meet the high-end demand, but also meet the broader mainstream demand. The opportunities for both kinds of demand will become bigger and bigger.
On the same day, China Europe International Business School held the China Europe·Beijing Forum with the theme of "Focus on the Changing Global Business Environment". Yang Xu attended the forum and made the above statement.
He cited the auto industry as an example. Before Chinese local auto brands took off, for example, in 2000 before China joined the WTO, the Chinese auto market sold about 2 million vehicles.
In contrast, by 2009, China's auto production and sales had exceeded 13.6 million, surpassing the United States to become the world's largest auto market.
Foreign brands have achieved great success through joint ventures, such as Volkswagen and Toyota.
Yang Xu pointed out that data analysis shows that while local brands are pushing models and brands from low to high, foreign brands are also sinking from high-end models. Many mainstream and entry-level models have been customized to meet the needs of the Chinese market. The car purchase needs of more car owners.
This reflects the law of complementary growth, that is, whether local brands or foreign brands, jointly create a larger market, and jointly meet the needs of high, medium and low diversified users.
At present, China has entered a new stage of development and proposed to build a new development pattern in which domestic and international cycles are the mainstay and the domestic and international dual cycles promote each other.
How should multinational companies seize opportunities in the "double cycle"?
Yang Xu said that multinational companies should work with Chinese industrial partners to explore and create more complementary growth opportunities, and work together to open up greater opportunities.
This complementarity is "you are in me, and you are in me". We must find our own position and development direction, start from our core capabilities to innovate and lead, and bring the most advanced things to the local industry to verify together. , To jointly broaden the road, create greater opportunities, and bring complementary growth to both parties.
Talking about the semiconductor field, Yang Xu said that facing the opportunity of the Internet of Everything in the 5G era, there will be more complementary opportunities. The development of the digital economy requires diversified chip technologies, from high-end cloud chips to customized modular chips required by many fragmented "things". The latter requires low design costs and fast design speeds. "We and local innovative forces can form the greatest complementarity and win the digital future together." (End)