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China can send its own brands to the world

(China Daily)

Updated: 2016-03-16 15:16:55

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China can send its own brands to the world

The responder: Wei Jianguo, vice-chairman of the China Center for International Economic Exchanges CHINA DAILY

As the annual sessions of the top legislature and political advisory body unfolded, China Daily collected questions on issues that netizens care most about and solicited answers from political advisers, legislators and senior government officials.

The question

With China known to the West as the largest manufacturer of goods but little-known for its own brands, does China plan to build up its own international brands?

A netizen who goes by "Adam Cooper"

The answer

The Chinese government seems poised to help build brands with global reach and influence, and the final version of the 13th Five-Year Plan (2016-20) is expected to stress shaping Chinese international brands.

Chinese products are expected not only to be cost-effective but also more advanced in quality, brand recognition and credibility. China will have more of its own intellectual property. We are working on our own pathway of brand-building.

Building powerful brands requires joint efforts from both the government and the market. One should see that all the international brands-from mechanics to high-end cosmetics-are recognized by the market, and such recognition requires constant cultivation.

Chinese companies have three approaches for nurturing global brands: They can work on ventures or merge and acquire brands overseas, such as the marriage between BYD and Volvo; they can build research and development organs overseas, as Huawei does in Africa and Latin America; or they can build branches in local markets, such as the US branches of Haier.

What the government should do now is to forge an environment for nurturing brands and markets. It will be a process, but should result in more global brands being nurtured in China, such as Huawei and ZTE.

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