Will Chinese tech companies keep going global? - Pascal's China Lens

Title: Will Chinese tech companies keep going global?
Website: https://www.pascalcoppens.com/

CONTENT: The video explains why Chinese companies will continue to go global, despite all the hurdles and anti-China mindset of the West. The reasons are market needs, need for raising quality and financial motives. I explain in all three cases how Chinese tech companies are pulled by the West and pushed by China to expand.

TRANSCRIPT
This week we're going to talk about Chinese tech companies going global.
Now in 2020, it's very clear that the whole world started distrusting Chinese technology companies
It's clear that these technology companies in China are having a hard time
and so if you would be a Chinese tech company, an Alibaba, Tencent or DJI,
would you still want to go global? That's the question.
Well if you look at 2020, especially the second half of 2020 what we see is that China is doing pretty well again,
they are Covid free almost and their trade is growing, exports is growing really well, GDP is growing at almost 5%,
there's again FDI that is growing and most of these regulations with Huawei, Wechat and TikTok
the American court has decided to loosen up its regulations so this gives hope for 2021.
I believe strongly that Chinese tech companies will continue to go global everywhere and I believe that for 3 reasons:
one is the market, the other one is quality and the third one is the money.
Now if you look at the markets, it's very very clear when you look at Chinese companies
that the biggest value Chinese companies see in their company is the market that they have.
So they're always looking at the market, we in the West look much more at what we have internally
we look much more at our IP, our people, our culture, things like that, our brands.
The Chinese really look at the market and so the market is out there, it's not just in China, it's in the West
so they will still be going global and specifically they will go there where there's opportunity.
And as we've seen with Covid-19 there are a lot of cracks in the system,
we're not that united and the Chinese will find these opportunities amongst those cracks, that's for sure.
So from a push perspective, China is going to go and continue to look for markets.
From a pull perspective there's also something quite interesting and that has to do with the fact that we want high quality,
we want a great quality of products and the Chinese have raised their quality
so except for the Chinese market itself and maybe some countries in Southeast Asia,
the biggest second market is the West for these high quality products now.
So they will continue to sell to us and to the rest of the world they'll sell like the medium and the lower quality products
that still haven't made it to high quality standards.
There's also the competition which we should think about that inside China is so fierce
that ultimately some companies are compelled to go global.
Think about what's happening with Alibaba and Ant Financial, I mean they have great plans going global
so the world still believes that China will become a global partner and so that's from a market perspective.
The second thing is about quality and again there's a push and a pull,
when it comes to the push I call that the "boomerang effect".
When you want to sell high quality in China at higher prices and at higher value,
what you need to do is to prove that your product is of high quality, the best way to prove it is to sell in Europe
and in North America because if you sell there it kind of proves that your product is of higher quality.
Look at what Geely did when they bought Volvo many years ago, it created a huge market inside China
because suddenly the Chinese found that Geely was high quality products and not for the Volvo brand,
actually for their Geely brand at that time.
and that proves to their Chinese customers that this is a great great brand.
The other thing is the pull, Chinese want to raise the quality of their products and raise the quality of their company.
They need talent, they need intellectual property, they need to collaborate with the smartest people in the world
and that's why they will keep going global because otherwise they can't do it fast enough.
It will take them too long and so we'll see that they're pulling in all these resources into China by going global
and setting up R&D here or buying companies here if they're still permitted to because they need that quality enhancement,
so it's going to happen still.

KEYWORDS
Pascal Coppens, China, innovation, trends, keynote, speaker, public speaker, china tech, goglobal, geopolitical

ABOUT PASCAL COPPENS:
Website: http://www.pascalcoppens.com
Linkedin: https://www.linkedin.com/in/pacovision/
Youtube channel: https://www.youtube.com/channel/UCTdWsl15oEt0nZZy9Z1fnhQ?

BOOK - CHINA's NEW NORMAL

http://www.pascalcoppens.com/shop

Видео Will Chinese tech companies keep going global? - Pascal's China Lens канала Pascal Coppens