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Executives seek possibilities generated by new technology

By Gao Yuan (China Daily)

Updated: 2015-09-24 07:59:30

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Editor's note: China Daily reporter Gao Yuan spoke with three senior US tech executives who find great potential in the Chinese market.

Q1: Companies in China are facing the challenge of rising costs. Will this affect your plans in China or will you continue to invest in the country? Do you have any plans to relocate to the US or elsewhere in the region?

Q2: How has the depreciation in the yuan affected your company in China?

And will this play a major role in your decision to continue to invest, and expand, in the country and region?

Q3: The Chinese government believes in a stable investment environment and has rolled out policies to help international companies here by increasing transparency. What other measures would improve business efficiency and competitiveness in the country?

Q4: What are the greatest challenges your company faces in China? And how will you deal with those challenges?

Q5: Chinese companies have been looking at the US for investment opportunities as they increase their global footprint. What cultural and social issues will they face? And how would you deal with those issues?

Denis YIP

Executives seek possibilities generated by new technology

Senior vice-president, EMC Corporation, president, EMC Greater China

A1:

No, China remains one of the important markets for EMC. EMC is committed to the steady and increasing number of Chinese customers in need of massive IT transformation. We don't have plans to relocate to elsewhere in the region. We will continue to invest more in China in anticipation of the future growth of cloud and big data.

A2:

On a constant currency basis, our Asia Pacific and Japan revenue in the second quarter of 2015 was up 5%, while with the depreciation, the number was down 1% year-over-year.

The currency depreciation itself won't affect our investment decision and expansion in China and the region. Because our customers consistently tell us that they believe in our vision.

Currency is not solely a China problem. The strong US dollar is a cost of doing business anywhere outside US.

A3:

I believe it's a strong alliance with local partners. Expanding the local ecosystem is an important part of EMC's five-year plan in China outlined in 2013. The number of EMC China's channel partners will be increased to 20,000 in five years. We will continue to team with local industry partners to implement localization investment and cooperation.

A4:

The greatest challenge for us is to incorporate and leverage EMC's global strategy, business environment and economic development in China, and Chinese customers' needs for the next three years. We choose to be open and to collaborate with leading local players.

We aim to gain trust and confidence from the Chinese government and our partners by aligning with the government policies and creating a more localized EMC brand.

A5:

Chinese companies will need to adapt to the US way of doing business and the speed of aligning with US partners.

Huang Chenhong

Executives seek possibilities generated by new technology

President, Dell Greater China

A1:

We have just announced we will invest $125 billion in China over the next five years.

We are committed to China and we are not relocating to any other countries. If other countries have their different needs, that's a different story. But we do not have plans to relocate. Today, China produces 65 percent of Dell's total production, and this will continue. We are totally localized in China.

A2:

It will not affect our plans. We announced the $125 billion investment plan in early September, that was after the RMB depreciation. It will not impact our confidence in China. The currency rate has its ups and downs, but we do not make decisions based on currency changes. It has some impact on our business, but we are trying to manage the risks.

A3:

China is already a competitive market, and there is now sufficient competition in the country. It is very open. So for multinationals to do business in China, we will just have to make ourselves better in execution and enhance our competitiveness and offer better solutions and bring value to the society and to our customers.

A4:

The biggest challenge for us to do business in China is its total competition environment. We have to better ourselves, be more efficient as a company, we have to be more decisive when making decisions, and we have to make sure we know what the priorities are, and more importantly, what are the values and customer experiences we are bringing to our customers.

A5:

That's a very good question. Take Dell as an example. We have been doing business in China for 20 years. We have always made sure that we are doing business within Chinese law, and we will continue to do that.

Similarly, for Chinese companies entering the US, it is very, very important to have a deep understanding of the laws, the regulations, the culture and the business methodology and what partners are the most suitable. If any Chinese companies wanted to share their experiences with us, we are willing to do that as well.

Ralph Haupter

Executives seek possibilities generated by new technology

CEO of Microsoft China

A1:

Microsoft has a deep commitment to China. We have been in China for more than 20 years and have always embraced a long-term investment and development strategy. In fact, Microsoft China has become Microsoft's most comprehensive subsidiary, second only to the US headquarters.

A2:

Microsoft has been invested in and will continue to invest in China because we have great confidence in China's economy and future. China has quickly risen as a center for innovation, and innovation-driven development is becoming the new engine for China's economic growth. This, together with China's explosion of entrepreneurship, has created massive opportunities for Microsoft.

A3:

We noticed the recent efforts of the Chinese government to streamline business formation. We believe that a vibrant ecosystem consisting of both traditional industries and emerging businesses will contribute to the transformation and upgrading of industrial structure of China and facilitate synergetic development.

A4:

China is undergoing transformation and upgrading across all industries as it adjusts to the "New Normal". Within such a context, our biggest challenge is to redefine our role to play a more important part in the transformation and upgrading process. To achieve this, Microsoft is dedicated to deepening our partnerships with Chinese governments, companies and other partners to acquire a deeper understanding of China's economy and contribute to its growth.

A5:

For all companies entering foreign markets, two things are the most important but also the most difficult: identifying the company's position based on insight into the needs of its target market and deeply engaging with its target audience.

Microsoft has always been focused on providing the best user experience for customers and engaging our customers in the process of product development, such as the Windows 10 Insider Program, in which more than 600,000 Chinese fans participated into the development of Windows 10.

(China Daily 09/24/2015 page4)

 
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