China'S "World Factory" Because Of Lack Of Brand?

The Washington Post published the article entitled "Beijing's attempt to surpass" made in China "and achieve brand innovation in May 25th.

China took the place of Germany last year and became the world's largest exporter.

This year, China is likely to overtake Japan and become the second largest economy in the world.

Despite China's growing international influence, it lacks global brands, which has cast a shadow over its dream of superpower.

Because there is no big brand, China can only bear the heavy burden of the world factory, but overseas designers and engineers can earn a lot of money.

For example, many Apple Corp's iPhone are made in China, but if a high-end model sells for $750, China can get 25 dollars.

If it's a pair of Nike shoes, China can only get 4 cents from each dollar.

Because China lacks successful innovation, it can only splice products that are conceived, invented and designed by others, so the situation is even worse.

Due to the lack of innovation, China can only pay huge amounts of royalty to foreigners.

The Chinese government takes the usual generous measures as a countermeasure to invest huge sums of money.

Through tax cuts and subsidies, China has implemented the strategy of "going global" to support enterprise acquisitions.

The government launched an independent innovation program in China to force foreign countries.

China has also begun to rebuild its image.

At the end of last year, the Ministry of Commerce signed a $300 thousand contract with global advertising giant DDB to showcase a range of high-tech products including premium running shoes.

In recent months, the western media has been widely reporting on China's "going global" strategy and how Chinese enterprises are going global acquisitions.

China's overseas investment in 2000 is US $28 billion, which will exceed US $200 billion this year.

However, even if China's total foreign direct investment amounted to 200 billion US dollars, it would still be dwarfed by economic conditions such as Singapore, Russia and Brazil.

China has invested only $17 billion in rich countries, which is only equivalent to the total assets of a ranked Fortune 500 company.

34 Chinese companies that enter the Fortune 500 list operate only in China.

The 3 largest banks in the world are China, but they are not among the top 50 in the world rankings because they are based on the global distribution of banks.

China expert Kenneth DeWoskin (Du Zhihao) said: "in another 10 years, if these Chinese enterprises do not cross the door abroad, I am afraid it is difficult to judge how much energy they can leave."

China is facing the formidable challenge of creating global enterprises.

A survey of Chinese executives shows that they spend much more time with government officials than with customers: in China, government officials are the key to profitability; and internationally, customers are the key to success.