Chinese Economics Thread

supersnoop

Major
Registered Member
Then how come those "better innovative" Chinese companies have not made it outside China? Lool nobody knows or even heard about them apart from some Chinese in China. Lol How are they better than Lenovo then?
If they are better they should be able to outsell and outcompete lenovo in China itself yet ecen in China Lenovo is number 1 in their segment/industry much less the world. To be honest, most Chinese companies find it hard to be a global company or a multinational one (even those who are successful in China), seems they often lack that global appetite and appeal compared to American companies who constantly dominate in the US and the world. In fact most American companies startup with the global market in mind, Few Chinese companies have that mindset , most are limited in their thinking and mindset only in China/locally(not blaming them though just making an observation). Explains why very few breakout and are successful. Even tencent who is huge in China has barely any brand presence outside China. Lol
So still have to give it to Lenovo for being only a couple of Chinese companies who have made it not just locally but globally as well. The others are sleeping or something. Lol

I agree that Chinese companies are usually targeting China first before taking on the rest of the world, while American companies usually have a more global mindset to begin. However, I think you are quite incorrect in thinking there are "few" companies with a global footprint, it is much larger than you realize.

There are many Chinese companies with a global footprint, but they are not consumer facing, for example you have Fuyao automotive glass with manufacturing in China, US, and Germany, LK Industrial is supplying the Gigapress to Tesla (Directly in China, through subsidiary Idra SpA in USA), of course Huawei networking.

In other cases you have branding or OEM deals, ie. GE Appliances is a brand of Haier (also huge global footprint), or HikVision which sells a great deal of their goods to resellers.

Basically only recently did Chinese companies have fully professional management. 20 years ago, it's still common to find executives without formal education, or working up from the factory floor. They simply lacked the global experience to create global success. Often they would venture outside of China and face "culture shock". Acquisitions often failed due to management clashes. Chinese managers are now much more well-travelled, Chinese education has more global focus (ie. professors from all over the world), and executives might have foreign education credentials. You see DJI and TikTok quickly became leaders in the field.

I am not saying that Chinese companies are the best in the world, but in recent years, many Chinese companies have indeed succeeded outside of China. Huawei, Oppo, Vivo, Xiaomi, BYD, DJI, TCL, Hisense, Temu, Shein, Lenovo, and TikTok are some examples. China still has a long way to go, but as far as I can tell, the only countries that have more successful multinational brands than China are the USA, Germany, and Japan.

I would add Korea is okay, but they have very few brands owing to their Chaebol economic policy where basically everything is owned by LG, Samsung, or Hyundai groups.
 

ougoah

Brigadier
Registered Member
I agree that Chinese companies are usually targeting China first before taking on the rest of the world, while American companies usually have a more global mindset to begin. However, I think you are quite incorrect in thinking there are "few" companies with a global footprint, it is much larger than you realize.

There are many Chinese companies with a global footprint, but they are not consumer facing, for example you have Fuyao automotive glass with manufacturing in China, US, and Germany, LK Industrial is supplying the Gigapress to Tesla (Directly in China, through subsidiary Idra SpA in USA), of course Huawei networking.

In other cases you have branding or OEM deals, ie. GE Appliances is a brand of Haier (also huge global footprint), or HikVision which sells a great deal of their goods to resellers.

Basically only recently did Chinese companies have fully professional management. 20 years ago, it's still common to find executives without formal education, or working up from the factory floor. They simply lacked the global experience to create global success. Often they would venture outside of China and face "culture shock". Acquisitions often failed due to management clashes. Chinese managers are now much more well-travelled, Chinese education has more global focus (ie. professors from all over the world), and executives might have foreign education credentials. You see DJI and TikTok quickly became leaders in the field.



I would add Korea is okay, but they have very few brands owing to their Chaebol economic policy where basically everything is owned by LG, Samsung, or Hyundai groups.

This isn't South Korean economic policy. It's just a rigged game. China in its effort to avoid exactly this same shit from happening, ironically ended up on the opposite end of the spectrum where SOE are the real torchbearers of Chinese industry and technological progress. Or at least, private enterprises with lots of state approval if not even material endorsement. Still, the Chinese system wins out over the long term as it has a bit more margin to avoid the inevitable pitfalls of long-term, unchecked capitalism. Western societies, Japan, and south korea will completely reform before 2050. If not, they will have revolutions.
 

Index

Senior Member
Registered Member
I agree that Chinese companies are usually targeting China first before taking on the rest of the world, while American companies usually have a more global mindset to begin. However, I think you are quite incorrect in thinking there are "few" companies with a global footprint, it is much larger than you realize.

There are many Chinese companies with a global footprint, but they are not consumer facing, for example you have Fuyao automotive glass with manufacturing in China, US, and Germany, LK Industrial is supplying the Gigapress to Tesla (Directly in China, through subsidiary Idra SpA in USA), of course Huawei networking.

In other cases you have branding or OEM deals, ie. GE Appliances is a brand of Haier (also huge global footprint), or HikVision which sells a great deal of their goods to resellers.

Basically only recently did Chinese companies have fully professional management. 20 years ago, it's still common to find executives without formal education, or working up from the factory floor. They simply lacked the global experience to create global success. Often they would venture outside of China and face "culture shock". Acquisitions often failed due to management clashes. Chinese managers are now much more well-travelled, Chinese education has more global focus (ie. professors from all over the world), and executives might have foreign education credentials. You see DJI and TikTok quickly became leaders in the field.



I would add Korea is okay, but they have very few brands owing to their Chaebol economic policy where basically everything is owned by LG, Samsung, or Hyundai groups.
It makes sense for China to target itself first, it's a 35 trillion $ economy with a market size that actually matches that.

In contrast, US has less ability to just rely on its domestic market and as such use politicking to secure captive markets. Even so, US usually doesn't manage to reach out much further than either itself + anglo countries and/or EU.

Basically we are all tribal creatures and China makes most of it's revenue selling to Asians, while western Europeans make the most of their revenue selling to other western Europeans. In the end the market size and amount of people reached are similar.
 

coolgod

Colonel
Registered Member
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Most of China is older than children in Europe, wrap it up folks. Dream's over.

Interviews like these makes me doubt Xi and Biden really had in depth talk for four hours in private.

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Secondly, what happened
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in the summit between Xi Jinping and [US] President Joe Biden was not simply just another one of these meetings. But it was a significant event in which the two leaders spent four hours talking privately and candidly to each other – without the glare of the press.
 

sanctionsevader

New Member
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Most of China is older than children in Europe, wrap it up folks. Dream's over.
Ah, he dips his toes back into just flat-out slandering regular Chinese people there at the end as well. He's done that a couple times now since he was sworn in lol, I guess for all his senile groaning about Trump, they're quite similar in outlook lol.
 

supercat

Major
View attachment 130537

Chinese exports are only competitive because of cheap labor, duh.
These two charts put everything into perspective.
Vlt2cCt.jpg
 
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