Li Dongsheng: China's manufacturing industry must change itself to adapt to global changes

BEIJING, Oct. 29 (Xinhua) -- In the context of the continuous spread of the epidemic and the uncertainty of the global economic development prospects, how to take the road of China's manufacturing industry has aroused the attention of all parties. In this regard, Li Dongsheng, founder and chairman of TCL, stressed that under the challenge of restructuring the global industrial structure and changes in global investment and trade rules, China's manufacturing industry must change its business model to adapt to changes.

He said that in the past decade or so, TCL has been working hard to deepen the industrial chain supply chain into the world, and the global layout can minimize the impact of trade protectionism.

Li Dongsheng's decision to "use global layout to cope with the challenge of anti-globalization" stems from TCL's own development experience.

The recently published Book of All Things describes this history in terms of "shipbuilding." The book writes: TCL's internationalization was first "borrowing ships to go to sea" through processing trade, to establishing Vietnamese branches and factories to "build ships and go to sea"; then through international mergers and acquisitions to "buy ships and go to sea"; and then to carry out global operations in various countries and regions to "go to sea on the spot"; and finally, like those world-renowned global companies, it formed a global industrial layout and built a "shipping base" all over the world.

Li Dongsheng also said that product export trade - cross-border mergers and acquisitions - global operation - the establishment of a global industrial supply chain to cope with the impact of anti-globalization and trade protectionism, is a main line of TCL's 40 years of globalization, but also the entire Chinese economy from being included in the global division of labor system, playing the role of a dragon runner, to gradually moving to the center of the stage and becoming a new protagonist.

Therefore, in the face of the trend of anti-globalization and the challenges of trade wars and science and technology wars, Li Dongsheng believes that Chinese enterprises must make changes and give: global layout + industrial upgrading countermeasures.

He said that in order to break through trade barriers, TCL optimizes the industrial supply chain layout in the North American market by increasing the production capacity of the mexican factory and quickly building a second factory; by optimizing the channel and product structure, exploring new business models operated by users, to increase business revenue and hedge the cost of part of the tariffs. At the same time, it bears the loss of additional costs due to tax increases and sticks to the US market.

While the industry is carrying out a global layout, TCL also enhances its competitiveness through industrial upgrading. Because of this, this local company that started from the production of recording tapes can grow into a globally competitive technology industry group. (End)

Source: China News Network