Reform & Opening Up: Striving to be competitive in global supply chain

World
Europe

03:19

The 40th anniversary of China's reform and opening up has prompted more of the nation's companies to further expand. Many are doing so with foreign investment. Experts call this a win-win situation for both China and other major economies. CGTN's Ning Hong tells us more.

It's a perfect place for China's foreign investment goals. Tianjin, located on BoHai Bay, serves as a gateway to dozens of overseas economies. The city's long-time reputation as the cradle of China's modern industry continues today. The factory here that made the nation's first television now belongs to Zhonghuan Group, one of the first joint venture companies to bring in foreign investors.

LU ZHIHONG, VICE PRESIDENT TIANJIN ZHONGHUAN ELECTRONICS AND INFORMATION (GROUP) "Our role in most joint venture companies is as a minority shareholder. And I think our position here is to help investors build a good environment in Tianjin, including maintaining good relationships with the government, employees and local people."

Its modern port, vast land area and inexpensive labor costs allow Tianjin some of the world's best production lines. But recent global industry shifts pose a challenge to the city.

NING HONG TIANJIN "Tianjin has been at the forefront of China's reform and opening up. But when land and cheap labor are no longer advantages, the city will be looking for a new edge, and the key is hiring quality talent."

Jing Hao is one benefiting from this talent plan. As a trainee in his 20s, he now leads the human resources department at a publicly listed company.

JING HAO, HUMAN RESOURCES MANAGER TIANJIN ZHONGHUAN SEMICONDUCTOR CO., LTD "It's a sustainable talent cultivation mechanism. We will keep 300 entry-level staff, help one hundred of them reach mid-career level jobs, and select 10 as senior executives. It will provide our company with a great supply of talent."

The talent-cultivation system is just one by-product of 40-years of global market participation. Zhonghuan Group is deeply involved in the new energy and material industry. Another competitive market in which they've forged long-running partnerships with foreign investors.

LU ZHIHONG, VICE PRESIDENT TIANJIN ZHONGHUAN ELECTRONICS AND INFORMATION (GROUP) "One of the reasons that we have kept a 20, even 30-year partnership with them, I think, is that we have never asked our partners to transfer or share their technology, unless they are willing to do so. We also deliberately avoid any project that competes with our joint venture businesses."

Zhonghuan Group now helps its partners further improve supply chains in China. It's one of many examples how Chinese companies are growing with overseas partners.

ZHOU JIANQI DEVELOPMENT RESEARCH CENTER OF STATE COUNCIL (DRC) "We are facing a new trend in global industry shifts. Chinese companies are increasing their technological innovation abilities, and management levels, to maintain their position in the global industry division."

As the world invests more and more in China's rising domestic market, companies in China and abroad now see the mutual need to utilize the nation's reform and opening up. Ning Hong, CGTN. Tianjin.