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The industrial chain is relatively comprehensive, and the best companies can also enter the top few in the world, but in addition to a few companies such as Huawei, DJI, and Hikvision, most of them are still far from the top, and some are still far away, and even feel that the distance is insurmountable, which may be a portrayal of the current competitiveness of China's industry.
I have always felt that BYD, ZTE, SMIC and Xiaomi should be typical representative enterprises of the competitiveness of Chinese enterprises at present. Say that they are very strong, compared to the top level in the same field, in fact, the gap is also very large, and in the short term, there is no possibility of comprehensively leading the top companies in the same industry overseas, and each has its own shortcomings. For example, some core components have poor self-research ability, some have many internal management problems, some have weak brand power, low degree of internationalization and so on.
BYD is a technical, engineer-type enterprise, for the technical aspects have a lot of investment and reserves, in addition to 985,211 school graduates, BYD also recruited a large number of graduates from ordinary colleges and universities, and trained to become engineers, but also developed a lot of unique technology, especially this year's hot DM-i technology model, has been greatly recognized by the market, the order is full.
However, BYD's brand power is still relatively weak, the level of internationalization is also low, in order to catch up with the BBA, Toyota, Tesla in the global market brand tone, it will take a long time, the level of internationalization also needs to be improved, BYD's electric bus in the country to take out a lot, but the formation of public awareness is not much impact, or have to start in the field of household car brands.
For example, in October 2021, Tesla China (about 40,700 units), SAIC Passenger Cars (6,659 units) and BYD (1,026 units) exported more than 1,000 new energy vehicles on the mainland, which can reflect that the overseas market for China's domestic brand electric vehicles is still very small.
Throughout BYD's development history, I made a net profit trend chart, which is generally quite bumpy, which reflects that in addition to technology, there are some deep-seated problems that need to be solved in order to achieve long-term upward development.
Similarly, there is millet, internationalization is still good, millet is now in the sales volume is the world's top three smartphone brands, in Europe also won a lot of share, in 2020 millet 245.9 billion global revenue, there are 122.4 billion yuan from overseas markets, accounting for 49.776%, has half of the income is from overseas markets, the following figure is its 2021 Q3 performance, overseas market proportion has reached 52.4%.
Similarly, SMIC wants to catch up with TSMC, and I have been tracking the progress of these two companies, and in the third quarter of this year, TSMC's revenue was $14.884 billion, while SMIC's was $1.415 billion, and the gap is still more than 10 times.
And SMIC is also on the U.S. entity list, always facing the shadow of being stuck in the neck.
Similarly, ZTE's communication equipment wants to catch up with Huawei Ericsson, to be honest, it is very far away, not to mention catching up with Huawei, ZTE wants to catch up with Ericsson overseas, and it also has a long way to go.
This enterprise you can not say that they are weak, they have done the world's top few in their respective areas of expertise, it has shown that they have an excellent side, in 2020 BYD in the field of electric vehicle sales in the world's third, ZTE in the world's fourth in the field of communication equipment, SMIC in the chip foundry field in the world's fifth, Millet in the field of smart phones the world's third, these companies also have a lot of patented technology, BYD, ZTE, SMIC have invested a lot of money in independent research and development, to come up with some good technology and achievements, Although some companies such as Xiaomi have been criticized for their technical capabilities, the proportion of overseas revenue is very high, indicating that they also have strong competitiveness in foreign markets.
Taken together, they have built a comprehensive view of China's industries, electric vehicles, communication equipment, chip manufacturing, smartphones... Other similar ones are Sany Heavy Industry, XCMG to Caterpillar, BOE's OLED display panel to Samsung, OPPO, VIVO to Samsung Apple, Yangtze River Storage, Hefei Changxin to Samsung, Hynix, Unigroup Zhanrui to Qualcomm, Intel...
In contrast, Huawei's communication equipment, DJI's drones, which are at the top of the world in brand, technology, and share, and the development of very stable enterprises, in China's industrial camp can only be regarded as heretics, in addition to Hikvision, Ningde era in the industry is also doing well overall.
Therefore, in general: the industrial chain is relatively comprehensive, and the best companies can also enter the top few in the world, but in addition to a few companies such as Huawei, DJI, and Hikvision, most of them are still far from the top, and some are still far away, and even feel that the distance is insurmountable, which may be a portrayal of the current competitiveness of China's industry.
Why Huawei is particularly important, I mentioned Huawei, DJI, Hikvision, Ningde era these can be the world's first enterprises in the industry, but in 2020 Huawei's volume is more than five times the other three combined.
Huawei's sanctions mean that the mainland's top players in the three major fields of chip design, communication equipment, and smart phones have been sanctioned, and the second oldest cannot stand up, and a lot of share and profits will be lost to foreign competitors.
I also posted an article before, Huawei's competitors are now living a very good life, the benefits are very good, Apple, Qualcomm, MediaTek and so on.
This actually shows a problem, Huawei is still relatively lonely in the front, although the overall competitiveness of Chinese enterprises can not be said to be poor, after all, it is also the top of the world, but there is still a large distance from the top, Huawei has been sanctioned, and the competitiveness of other companies is not enough to continue to suppress overseas top companies.
Of course, in the end, I still want to give you a little confidence, a country with a per capita of ten thousand US dollars, can have such a large share of the top few enterprises in the world, has shown the advantages of the mainland people in the market, and these enterprises are still far from the world's top competitors, which is also a normal phenomenon, which shows that the mainland still has a huge space from 10,000 US dollars per capita to 20,000 US dollars per capita and 30,000 US dollars.
The gap between mainland manufacturing enterprises and the world's top enterprises, I think to a large extent, is the result of the relatively small amount of historical investment in research and development, which is also normal, one point of hard work and one point of harvest.
In fact, the mainland's R&D investment was only 89.57 billion yuan in 2000, and reached 706.26 billion yuan in 2010, which is finally a big country in R&D investment, and by 2020, it will grow to 2.4393 trillion yuan.
So to put it, the total amount of R&D investment in R&D in the decade from 2011 to 2020 exceeded the sum of the investment in 1978-2010, that is, in the past decade or so, the mainland really began to have an investment comparable to that of Western scientific and technological powers, like in 2000, the national investment in research and development was only 89.57 billion yuan, that is, more than 10 billion US dollars.
In addition, for the mainland, what is more special is that the mainland is a whole industry chain country, which means that R&D investment is dispersed to various industries, and various enterprises will be relieved a lot.
However, as long as we invest in research and development funds continue to grow, to achieve enough strength, always be able to vigorously out of the miracle, the gap will continue to narrow, those and foreign top companies technology gap is relatively small enterprises, will catch up after the first, such as we have a considerable degree of accumulation of electric vehicle industry, as well as the display panel industry, the technology gap is larger, catch up with the time will be a little later, such as chips, pharmaceuticals, medical devices and the like, after all, the country and the state, enterprise and enterprise competition, In the end, it will still reach the level of technology.