"I'm greatly encouraged by the Guangdong High-quality Development Conference!" Li Dongsheng, founder and chairman of leading consumer electronics brand TCL, told a GDToday reporter after the conference concluded on January 28, the first working day after the Chinese New Year.
Major plans for quality development were released at the conference by heads of government departments, indicating that Guangdong will attach great importance to the manufacturing industry and focus on improving the quality of the existing eight industrial clusters with an output value of over one trillion RMB.
As a leading enterprise in electronics, TCL was invited to participate in the conference and offered suggestions for improving the quality and upgrading of Guangdong's manufacturing industry.
Li believes the conference gives manufacturers the confidence they need to increase industrial investment, upgrade, and build strong industrial chains.
As for TCL, Li feels that high-quality development means adhering to innovation-driven development, and deeply cultivating high-tech, heavy-asset, and long-term national strategic tech industries through its two main entities, TCL Industries and TCL Technology.
"Scientific and technological innovation is not only a matter of development, but also a matter of survival," Li said, adding that TCL will strive for a world-leading position in three core industries, that is, smart display terminals, semiconductor displays, and. Photovoltaics.
Tech innovation, ecological protection required for quality development
In Li's opinion, high-quality development means improving the quality of human capital and maximizing social utility. It is necessary for enterprises to further stimulate vitality and improve labour efficiency per capita, so as to drive business performance.
Li stressed that innovation is the primary driving force of high-quality development. Technological innovation is important not only for enterprises' growth, but also for their survival in the market under the recent circumstance.
"Manufacturer should improve their abilities in supporting technologies, manufacture craft and materials," Li suggested.
Statistics show that TCL invests more than 10 billion RMB in R&D annually and set up 43 R&D centers at home and abroad, which led to a series of breakthroughs in key technologies. By the end of 2022, the company has already filed a total of 17,161 Patent Cooperation Treaty (PCT) patents, topping the list among enterprises in the Chinese mainland.
"We will invest more in national strategic industries that have high-tech, expensive equipment, and long life cycles in order to improve the quality of development. Eventually, we hope to become an industrial group that is both technologically and knowledge-intensive," said Li.
Apart from R&D, Li highlighted that ecological protection and green development serve as critical guides for high-quality development. It provides enterprises with an opportunity for their transition to low-carbon and environmental-friendly development.
"We should strive for carbon peaking and carbon neutrality to secure a head start in green development," Li said.
From exporting products to exporting industrial capabilities
Being one of the very first Chinese manufacturers to go global, TCL's business covers over 160 markets in Asia, America, Europe and Oceania. According to Li, TCL benefited from its global layout as the overseas businesses of TCL Industries and TCL Technology contributed to more than 40 percent of the overall revenue in 2021, hitting 117.4 billion RMB.
Given the shifting nature of the global economy, as well as the rules governing investment and trade, Li considers 3 major shifts are needed when Chinese enterprises plan their global businesses.
"Chinese manufacturers should export their industrial capabilities rather than just their products and create an international brand image. As for TCL, we set up 32 manufacturing bases overseas in countries including Brazil, India, Poland and Vietnam, and provides localized design, manufacturing, sales and customer services. The strategy helps company break down trade barriers while contributing to local economic and social development," Li introduced.
In addition, Li suggested Chinese enterprises could facilitate the globalization of supply chain and localization of overseas operation while pushing forward globalization through leading technologies.
In September 2021, TCL announced its global ecological cooperation development strategy: the "Rising Sun Plan". Over the next five years, TCL will invest 20 billion RMB in the intelligent terminal, semi-conductor display and photovoltaic industries.
Li said TCL is ready to develop the industrial ecosystem and facilitate industrial innovation and upgrading together with global partners through involvement in the development of industry standards, joint R&D, and industrial investment.
"We have set the goal to lead in three main sectors – smart display technology, semiconductor display technology and photovoltaic technology – across the globe in the future," he added.
Author | Jasmine, Hannah, Riz Zhang (intern)
Poster | Lulu
Editor | Wing, Steven, James
