Chinese companies are still at the middle and low end of the global industrial chain: if we look at the high to low dimensions of ecology, standards, patents, technology, and products, Chinese products are still at the relatively middle and low end of the food chain in the world.
1. Ecological platform belongs to the highest category of food chain locations. There are three categories of ecological platform. One is the operating system technology ecosystem, including Windows, installation, iOS, etc. This type of ecology has huge long-term influence after its formation, and it is very difficult to get out of it. Because of its technological influence, even the APP that former US President Dawang Yong can be basically unable to move after being banned by Google and Apple . Currently, only in this type of Chinese version is starting to impact.
The second category is the market platform ecosystem, such as Amazon and Walmart . Although half of Amazon Walmart disappears from products made in China, Chinese manufacturers are inseparable from Amazon and cannot build a new platform by themselves, because behind it are logistics and user habits, as well as difficulties in building stores and traffic costs. At present, domestic , Alibaba , etc. are still mainly domestic, and there is no opening up overseas.
The third category is the media platform ecosystem, similar to Facebook, Twitter , YouTube, whatsapp, etc. Except for Tiktok, China is still not a foreign country, and it has basically not been much successful in going global. The platform ecology is very difficult to challenge. This is the highest food chain position. After completion, it is often profitable and has extremely high gross profit margins.
2. Standards are a powerful tool to control the market. For example, China's railways were exported to Africa in the past, and as a former European colony, Africans liked to follow the European standards. If China complies with the European standard, it is necessary to go to the European standard unit to spend money to verify, change the product specifications, and some even have unreasonable or low specifications. Moreover, if you use the European standard, you usually need to ask the European supervision company . Chinese companies are thankless and the quality is not necessarily good; because China Geography covers cold temperate zones to tropical zones, from deserts to tropical rainforest climates, and the standards are actually more reasonable than those in Europe. Later, many African-Africa-China railways were changed to Chinese standards, and both sides saved money and labor without having to be sheared by Europe.
China is a major shipbuilding country. Now many ships still need to be certified in Europe. In fact, there are not many shipyards in Europe anymore. Similarly, Europe and the United States have mastered the factual international standards of airworthiness certificate . Although C919 is recognized by China, it will be difficult for Europe and the United States to promote the world if it is not recognized by Europe and the United States.
Huawei was once rejected by many standard organizations under the US strangle. Later, WiFi and Bluetooth organizations found that if Huawei was rejected, the standards would be incomplete because many standards were proposed by Huawei. The United States has to issue documents on 5G to allow American companies and Huawei to exchange 5G technical standards, otherwise they will be marginalized by the 5G standard, because Huawei is the main force of the 5G standard. This is the benefit of mastering standards.
3. Patents are better market barrier , but they are still lower than the standard. For example, Huawei folding machine eagle wing hinge is the most advanced and best in the industry and has patents. As a result, some friendly competitors studied Huawei's technology and patents after dismantling the machine, and then took advantage of loopholes to bypass it, but when they saw the real thing, everyone understood that it was Huawei's technology. This shows that the power of patents is not as powerful as standards, and basic standards cannot be avoided. Of course, some patents look simple, but they have great power. For example, Apple's multi-touch patents have allowed them to exchange patents from many mobile phone manufacturers.
China has been very successful in patents. Many companies have killed the top 50 in the world, such as Huawei, BAT, etc.
4. You can’t do it if you know some basic things in technology. For example, if you use the same semiconductor device, TSMC's chip power consumption is better than , Samsung , and TSMC's technical know-how is better than Samsung. Of course, this thing is difficult to form a patent or it is difficult to sue, so employees can take it with you as soon as they change jobs.
5, and finally the product, many assembly machines use a lot of other human devices and technologies, so they have to give people a lot of patent fees and device fees, and make some hard money. Many Chinese companies are currently at this level.For example, what I am most annoying is that some foreign brands of leather shoes are comfortable and wear-resistant. Why can't enterprises, a major shoe country in China, just make such shoes? There shouldn't be much technology, and it's probably because of the lack of care in product design.
Overall, Chinese companies are relatively weak in ecology and standards, mainly in terms of success at patents, technology and product levels, and they still need to work hard. It takes ten to twenty years to get to a better position.
