Jack of Foreign Parts CEO Talks about the Development of Chinese Parts

"In the next 5-10 years, the biggest problem facing global companies is how to acquire the technologies that are being developed in China." At the recent Global Economic Forum in Sydney, Australia, as one of the only four speakers in the forum, Mr. Jack gave a speech entitled "Business in China."

As an investor who has lived and worked in China for many years, he advised those business people who are about to start business in China: "In the next five years, China will transition from a technology importer to a technology exporter."

Jack is the chairman and chief executive officer of ASIMCO Technologies Co., Ltd. In 1994, the investment banker resigned from Wall Street investment bank and established the company in China. Under his leadership, ASIMCO gradually developed into one of China’s larger independent foreign auto parts groups and provided products for the global market.

Jack has always been eager to put forward sound advice for those who are interested in doing business in China. In this speech, when someone talked about Chinese competitors' acquisition of other people's technology and intellectual property rights through unfair practices, he categorically denied and firmly stated: "The most surprising thing has not yet arrived, the global technology The Center for Innovation and Innovation is relocating to China.”

Chinese and foreign technology gap is rapidly shrinking

Although China established FAW Group in 1953 and started its own auto industry, Jack believes that the gap in technology has not been reduced until China joined the World Trade Organization. Even in the period after the establishment of Beijing Jeep, the earliest joint venture, almost no foreign technology was transferred to China.

He said that after China's accession to the WTO, everything has changed, and this should be attributed to Chinese consumers. With the huge growth of the market, Chinese consumers have changed their tastes and demanded more and more. These increasingly discerning consumers demand the same product quality and technology as the rest of the world. The current situation is that China lacks key raw materials, processes and product technologies and has to be obtained from other countries. Therefore, these parts and components must be imported. The most obvious manifestation is that, until 2005, the import value of China's spare parts was far greater than the value of exports.

Jack's point of view is that with the development of the Chinese market, taking into account the cost factor, domestic and foreign auto companies have to work hard to achieve the goal of localization of parts and components, and more and more parts are being produced in the country, making this The gap began to shrink rapidly. After experiencing the disappearance of the explosive growth momentum in the automotive market, this trend has become even more pronounced. In 2005, the value of auto parts imports declined for the first time. It is easier for people to intuitively discover that the technological gap between China and other parts of the world is being bridged. Zoom out.

China will be an advocate of new technologies

“China is a blank page waiting for us to outline the prospects of cooperation.” He was the general manager of the investment banking department of Payne Webber Investment Company and later Jack, the general manager of a financial investment company. The prospect of technology cooperation between the company and China in the automotive field.

He believes that with China becoming the world's largest automotive market, it will face three serious development bottlenecks: First, the ability to pay, the market needs more affordable transport; the second is the fuel supply, even if it is With the addition of 5 million vehicles, fuel supply is still a matter of concern. The third is the impact on the environment. If there are another 100 million cars on the road in China, there will undoubtedly be a lot of pressure on the planet.

“In this context, any technology that will help solve the three bottlenecks faced by China will be happily accepted by China. In China, people are very interested in finding better transportation means. As far as infrastructure is concerned, there are no barriers to the introduction of technology.” To better illustrate this point, Jack mentioned the example of the development of China's telecommunications industry. He believes that in the transportation industry, China will also see this trend and it will The current state goes directly to the latest product technology.

China is too late in 2010

Although ASIMCO Corporation has been able to support its business development through its own profits and borrowings so far, it still does not seem to satisfy Jack's ambitions. He disclosed to the outside world during the Global Economic Forum that ASIMCO Group is expected to Public offerings in the United States within two years.

He said that at some point it is necessary to win more investors, so the future opportunity for ASIMCO Group is to allow the company to go public and expand its investor base.

In addition to its development plan in China, ASIMCO is working hard to increase its export business to the United States and Europe as part of its strategic plan to build a global auto parts company. In this regard, the former Wall Street investment banker and his partners are convinced that China will become the manufacturing center of the world, not just the low-end market.

Although the public is shocked by the rapid progress made in the production of low-cost and high-precision products in China, it is also surprised at how quickly the car market has grown. However, for many foreign investors, in the automotive sector, they still do not want to believe that China has the ability to independently manufacture high quality and low price products.

“People generally believe that China can replicate but not innovate.” Jack firmly opposes this view. “This idea will change as the Chinese market grows stronger. The huge demand of the market will drive innovation and more and more. The R&D base will also be moved from overseas to a place adjacent to the supplier.” He believes that from now to 2010, with China rising from the third-largest auto market to the second-largest auto market, any one in this industry will have Advanced technology and patented companies are planning to enter China. What follows is a large amount of advanced technology that will flow into China. By that time, China will have the same level of technology as the world. He firmly believes that when the combination of technological innovation and market and cost factors, China's auto industry will undergo a tremendous change.

"By 2010, if you haven't come to China, it will be too late." Jack warned all investors in the end.