Foreign companies in China: American companies in the storm

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Foreign companies in China: American companies in the storm

2022-05-15 12:08:38 22 ℃

Do not forget the original intention of globalization and keep in mind the mission of China.

Text 丨 Chinese Shang Tao strategies Chen Siwen

If someone is at the Los Angeles Rose Bowl Stadium at noon on July 10, 1999, he will face the high temperature of 39 ° C, see the 42nd President Clinton, which is a blonde, and listened to the cheers from 90,185 audiences. Then I witnessed the four F16 fighters passing by, and all the feeling was completely drowned in the sound waves.

Except for temperatures, all this belongs to Clinton's dominated drama. The theme of the script has only one keyword: repair.

In the past two months, Sino -US relations have fallen to the freezing point. Belgrade's three missiles not only broke through the roof of the Chinese Embassy, ​​but also interrupted the pace of joining the WTO. After Clinton's apology call was rejected, the door of the American Embassy was full of demonstrations. New Oriental, which focuses on studying abroad, has a loss of performance comparable to future decreases, and the students of Peking University have made a slogan:

"Do not take the test, do not test G, and fight the Emperor with all your heart."

How to turn the freezing point into an inflection point not only tests the wisdom of the decision maker, but also requires the right time. After waiting for two months, Clinton waited for the opportunity he wanted.

In the 1999 American Women's Football World Cup, the Chinese women's football team won 5 games in a row. The legendary midfielder Liu Ailing used two world waves, and the Norwegian goalkeeper stood . After entering the finals, the opponent is the American team.

This is really a good opportunity. There are "ping -pong diplomacy" of Nixon and Zhou Enlai, and the late -born juniors Clinton decided to imitate. He arranged for the Air Force performance and visited the scene in person. After witnessing the misjudgment and penalty shootout, he came to the Chinese women's football lounge for the first time and congratulated China:

"The entire United States has been deeply attracted by the competition. The huge impact of the Women's World Cup is beyond people's imagination. This impact is not only acting on the United States, but also in other countries."

The small ball turned the big ball again. Clinton's sweet praise, turning the firm ice of Sino -US relations. But when the fighter passed through the sky, few people noticed the sidelines on the sidelines -Coca -Cola, P & G, McDonald's, GM ... Standing behind these billboards, those leaders of those multinational companies. An opportunity to express friendly, China desiring to them.


Behind Clinton is a huge pressure from the American industry and commerce community.

Three months ago, Chinese Prime Minister Zhu Rongji came to the WTO negotiations and returned empty -handed after 8 days of quarrel. This has annoyed almost all large companies. They sent Cisa , which can be free to enter and leave the White House, and bombarded the economic adviser of Clinton, Sperlin. Then send a reporter to bomb the president directly: "There are two things he regrets the White House, one is to hook up with Lygoski, and the other is to reject Zhu Rongji. President's incompetence. "

This is not the first time that the American industry has caused difficulties to the government for China. The last occurred in 1993, the original treatment that was originally unconditional to China became "needed to be linked to some issues."

As a result, 298 large companies and 37 trading groups jointly wrote a letter to the president to ask the US government to extend the most benefited country by the US government unconditionally. Behind the position is the reality of the interests -in 1993, China's total imports of American goods had exceeded 10 billion U.S. dollars, and it still increased rapidly at a rate of 30%.

The Boeing Company acted as a pioneer in the emergency, secretly promoted a member of the State of Washington, and launched an open letter to extend the best benefit of China, and received the signature of 160 members. Of course, this is inseparable from 120 aircraft in China, $ 9 billion worth of orders.

The situation in 1999 is far from the same as before, and China's opening level is increasing. If anyone is still using the "Chief Representative" of the "Office in China" and the "Chief Representative" of the airdrop, this gameplay will definitely make people laugh. The "Guidance Catalog of Foreign Investment Industry" has been promulgated for five years. The multinational giants can control in the joint venture, which can incorporate profits into the financial statements of the parent company and portray the gorgeous growth story of the new market.

The Chinese district replaced the office. The "Greater China" and "Northeast Asian District" and other covert claims became the old emperor calendar. Singaporeans and Hong Kong people who could speak Chinese replaced European and American executives. Suzhou's high -tech zone is open to APEC member states, and the new name is Asia Pacific Science and Technology Industrial Park. German cars are accelerating from the pipeline. French people have established factories in Tianjin and Shanghai. In the latest Beijing Yizhuang Economic and Technological Development Zone, the Management Committee has become a 10%of small shareholders of low -voltage electrical factories and provides a package of services from recruitment to door -to -door taxation.

The Chinese district headquarters of Citibank moved from Hong Kong to Shanghai. Dell established the first production base and service center in Xiamen. Procter & Gamble established 4 companies and 5 factories in China in one breath. Wayne Berke said: "My number one business is China." But Americans are still suspected to be too slow. At General Electric, a vice president learned a poem and spread proudly in colleagues. That poem is called: "Ten thousand years old, only fight for night."

From the perspective of the chairman of the multinational company, China has the largest market in the world and is where every multinational company should go.

From 1979 to 2000, China attracted a total of 346.2 billion yuan in foreign capital, most of which occurred after 1992. The cumulative inflow volume of 1992-2000 accounted for 93%of the total. But everyone is still too slow, especially as the largest economy and the United States, which has the most multinational companies.

Kodak's president Pei Xuede had a account, which was very urgent to this dream. "As long as half of the population in China takes one 36 pieces of film each year, it is enough to expand the global image market by 25%. China takes more than 500 photos per second, and it is thought that one more scale is equivalent to Japan and the United States."

Multiplying a certain product with a population, and then calculating the scale of the Chinese market, coupled with an optimistic or conservative PE growth rate, this is almost the general algorithm when all multinational companies enter China.

Therefore, when Clinton sent a sweet praise , plus the Global Wealth Forum invitation from Fortune Magazine. Everyone thinks that good things become double and the opportunity must not be lost.

Including Jack Welch, more than 300 chairman, president and CEO hurriedly adjusted the itinerary. They entered the air corridor in Shanghai from the East China Sea and went to the dream of milk and honey.

Waiting for them is a real high -standard annual meeting. The Shanghai International Conference Center, which has just been completed for a month, was selected as the site. , In the next fifty years ". But the important thing is that Chairman Jiang Zemin attended himself. In the face of the world's most prominent industrial and commercial people, his speech title was "You Person in China, Welcome to China":

"Chinese companies should learn the advanced experience of foreign companies, and go global to see the world through the wind and rain in the wave of economic globalization to enhance their competitiveness. Of course, the Chinese government will provide good conditions for foreign companies that come to China to invest in China to create better environment of."

This is a clever speech. It conveys the willingness to cooperate and shows its own goals -it is by no means humble begging, but a real host .

Jiang's words were not accidentally won by thunder. Obviously, the business leaders here listened into the second half of the sentence. So at the conference the next morning, when they talked about their global strategies and investment strategies, it was optimistic that China became a common statement. Americans are particularly eager, chairman of Pepsi said that "let each Chinese drink a can of Pepsi Cola"; GM CEO judge "China will become the world's largest automotive market." The last confusion of the editor of Fortune Magazine:

"Want to dominate the world, first chase China."

This is a moment when the guest is full of joy. After the dinner on September 27, the Pujiang Fireworks was shining southeast. Chinese photographer Liu Xiangcheng later recalled that it was the longest fireworks he had seen in his life.


In Shanghai for three days, Jack Welch said: "I am strange to China, but I believe it will be strong."

Jack Welch

Judging from the history of the future, when facing the Chinese market, the rustic giants showed by the multinational giants and the strength of China showed by Jack Welch.

The NTD negotiations settled in Beijing, and overseas capital poured from global to China. When multinational companies entered the Chinese market, it seems that the whole world thinks that they will rely on technological and management advantages to make a lot of money in this world's most populous countries and win the victory in the competition with Chinese companies.

But reality does not support this too optimistic idea. Pei Xuede's "Kodak algorithm" was quickly proved to be "if each person gives me a dollar". Former "Wall Street Journal" reporter Mai Jianlu wrote in the book "One billion Consumer": "I see that many Western managers are full of confidence and come to China in a fluttering manner, but they are won by their Chinese competitors, The Chinese government or Chinese partners crushed down, either in unrealistic expectations, irritability and lack of common sense. "

From affecting the Klinton government to influencing the Bush government, all multinational giants hold a mind -move the manufacturing link to China, close to the world's largest and fastest growing market, make a lot of money, and then put these profits in the US R & D The department continues to innovate and enhance the competitive advantage, and eventually gain global competitiveness.

This kind of mind runs through, but puts it in the discourse environment of "multinational company and China growth", but it needs to continue to add new content.

Flexible multinational companies quickly discovered that their self -proclaimed management experience and business models need to be transformed by localization to achieve the effect of "1+1> 2" in the Chinese market.

This localization is not the renamed from the president of China from "Peyton" to "Pang Zhonghua", and it is not a Singapore executive with plastic Mandarin. It is not a US sales manager who is not in the suits and demand to go to and from the aircraft to and from, not the entire switching cabinet from the US factory, but only the Chinese factory is installed with the last baffle production method.

The gate of the Chinese market is open, but it needs sufficient patience. If "manufacturing in China" and "R & D in China", "Sales in China" will become a bubble on the Hudson River.

So you can see that Chinese graduates of those famous colleges and universities have gradually obtained the independent office and director title in foreign companies; trading companies starting from the husband and wife shop have begun to be included in the distributor system of foreign companies; Find local suppliers with Chinese managers. Those street factories received orders from foreign companies to try to produce parts to achieve localized replacement of foreign companies. A small factory with a "Precision Machinery Co., Ltd." brand received screw orders from electrical enterprises, but it immediately found that it was in a cruel Omaha Beach: the national standard waste rate was one thousandth, and the factory could only do it. Two percent, and the buyer's requirement is one percent.

U.S. engineers walked into the factory and brought in the vocabulary like "Six Sigma". This localized alternative attempt is laborious, and the total amount of screws supplies can only be filled with one lunch box. However, with the decline of the waste rate, the Chinese screws replaced the imports of the United States, and the lunch box became a car and a truck. Twenty years later, the small factory had two -tenths of the waste rate and became a company with an annual sales of 8 billion.

Socialized large -scale and standardized seeds, harvesting a group of cheap and easy -to -use suppliers. Multinational companies have stable local supplier system, and the cost of the entire product is decreased. This has helped the company add competitiveness in the market. At the same time, this advanced production system also allows Chinese suppliers to have the level of production in line with international standards to provide supporting services for more buyers.

As a result, China has the world's factories such as Shenzhen, Dongguan, and Yiwu, and a manufacturing chain in the eastern coastal areas. With the world's largest human migration -Spring Festival. While undertaking the transfer of the US industry, China has actually gained more: local supporting low cost development, strong infrastructure capabilities lowered the price of production factors. In the confrontation with foreign opponents, local companies learned how to master from lean manufacturing to manufacturing to manufacturing to manufacturing to manufacturing to manufacturing to manufacturing to manufacturing to manufacturing to making Study consumer needs.

Like an unprecedented but indispensable parts, those multinational companies have embedded the huge "Made in China" industry chain. After experiencing a trilogy of "manufacturing in China, selling in China, and developing in China", the credentials of multinational companies have become "in China, for China".

Beijing Wangjing Science and Technology Park was originally a global base of the world's top electronics company attempts to build a global base of the Ministry of Science and Technology and the Beijing Municipal Government. Motorola, Northern Power Network, Sony Ericsson, Samsung, Langxun gathered here ... In the Chinese market, some of them once struggled on the line of life and death, and some of them were weak and stronger. By.

For those American companies that learn business in China, this market gives them what they want. Merhadon's drug -making business revenue in 2021 exceeded 42.7 billion US dollars, an increase of 17%year -on -year, and the revenue of China exceeded 4.2 billion US dollars, an increase of 60%year -on -year; the growth rate of Riseli China was three times the growth rate of global operating income;

Honeywell hired 13,000 employees in China to manufacture aviation electronic equipment in Shanghai, produce heating systems in Suzhou, manufacture medical sensors in Nanjing, manufacture industrial control systems in Tianjin, and manufacture car turbochargers in Wuhan. From the "Bird's Nest" broadcasting system to the fire safety equipment of the Xi'an Terracotta Warriors Museum, all of the company's hands. These products for the global market together constitute its $ 34.392 billion in sales revenue in 2021.

Honeywell Xi'an Factory

The changes are dazzling. Who can think that in 1980 in Honeywell's establishment of a Beijing office, it didn't even know who to sell its products.


In October 2020, three huge boxes were transported into Tesla's Shanghai Lingang Super Factory. Subsequently, they will become a super machine with a length of 19.5 meters long, 5.3 meters high, and a weight of over 400 tons, which is equivalent to the sum of 5 aerospace aircraft.

With this machine, the traditional frame production process that welded more than 1,000 times and took two hours to die for only 2 minutes at a time, and also saved Tesla's Model Y 20%of the cost.

On the road to invest in China, the new Charm Martsk, which relies on the Shanghai factory to turn over, is more luxurious than the old money of the year. But this cannot be said that "the waves of the Yangtze River push forward the waves" are just the imitation of the predecessors. Under the inspiration of its popularity and continuous opening up in China, the American multinational giants have reached a new consensus -more willing and confident to cultivate the Chinese market.

The Shanghai American Chamber of Commerce and PricewaterhouseChopathic China conducted a survey in September 2021. Among the 338 interviewed companies, 78%said that the company's business outlook in the next five years feels "optimistic or slightly optimistic", which is compared to the same period last year. It is nearly 20 percentage points; the proportion of "pessimistic" companies has decreased by 8 percentage points.

A more distinctive attitude comes from another group of American companies voting -60%of companies still believe that China is one of the top three investment destinations for its recent global investment plan; 66%of the company plans to increase this year in China Investment; 83%of companies did not intend to transfer manufacturing or purchasing out of China.

Therefore, we will see that in the history of investing in the Chinese market in the United States, there are too many disturbance factors to "linked to bankruptcy", "Taiwan Strait Crisis", "Mutual Visiting Leaders", "Embassy" ... The "common cause" in the district encountered bumps. However, among the American companies investing in China, there are only losers in market competition, and they have rarely standing in geopolitics. So we will see that in the years of the Trump administration's repeated pressure on China, the multinational giants chose to silence.

Therefore, we will also see that despite the stumbling of the two sides of the Pacific Ocean, the data is singing the counter -adjustment -in January 2022, China's absorption of foreign capital increased by 11.6%year -on -year, which was three times the growth rate of the same period last year. In the first four months, the actual investment in China increased by 53.2%.

The data will only record the facts silently, but it will not say the words of China and the United States -if the world's largest market and the strongest scientific research center gradually drifted away, it will be a huge loss to both parties and even the world. After all, China still has a long way to go in terms of the quality of basic scientific research and the transformation efficiency of scientific and technological achievements.

The United States wants to find another huge market worldwide, South America does not work, and Africa does not work. Without the market, it is difficult for American companies to continue to have high R & D expenditures, and it is difficult to have long -term technological advantages.

At this point, whether the capital behind the enterprise is the West or the East, it should not be an excessive problem.

There are never unimpeded markets in the world. From the establishment of the market to improvement, its scale and efficiency need to be gradually improved. The perfect market has always been the result of economic development and government care, not the premise.

China has successfully created its own model. It borrowed some Western ideas and rejected some ideas. It opened to the world at a necessary moment and stepped on the brakes at the right time. This is the summary of the New York Times to invest in China, but in the language we are familiar with, it should be called "crossing the river with stones."

The two big powers always need tolerant wisdom, open attitude, and win -win thinking. In this regard, history has given the answer countless times. In September 2016, during a discussion with the US economic and financial community, Premier Li Keqiang summarized Sino -US relations in one sentence. He said: "China and the United States have established diplomatic relations for more than 40 years. It's sunny. "

But the Prime Minister has the second half of the sentence- "Of course, I don't advocate that it must be raining to bring sunny sky. It is best to rain less or light rain."

【Reference Information】

[1] "History of Sino -American Relations" Tao Wenzhao

[2] "Ten Diplomacy" Qian Qichen

[3] "The Story of Premier Zhu Rongji Decising China and the United States" Zhao Yining

[4] "1999, 48 hours of China and the United States reversed"

[5] "Why China Why a Transnational Company's Performance Highlights" US -China International Chamber of Commerce

[6] "Review of Shanghai Global Wealth Forum in 1999" People's Daily Online

[7] "Thirty Years" (below) Wu Xiaobo

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