China is not only a major market, but also an integral link in our global supply chain, and an important contributor to our R&D and manufacturing capabilities, a senior executive at Motorola said.
Ruey-Bin Kao, Chairman of Motorola (China) Electronics Ltd. told Xinhua in an exclusive interview on Tuesday that Motorola recognizes the array of exciting opportunities present in the China market and is taking necessary steps to capitalize on these opportunities.
When commenting on the growing domestic demand in the Chinese market, Kao said "The growth of domestic demand in China is an important long-term trend, and this increasing demand is necessary for China to obtain sustainable growth."
He said "Strong GDP growth in China, even as global export markets have shrunk, is proof positive of increasing domestic demand. Growing domestic demand in China is also necessary to achieve the goals articulated by the recent G20 Summit in Pittsburgh which called for a rebalancing of global trade."
Regarding Motorola's business strategy in China, Kao said "Motorola is a very strong brand in China. We have developed strategic relationships with local partners, including government, customers, suppliers, distributors. We are committed to serving the market in China, we have developed a strong presence there and we are confident in our strong local capabilities."
As far as its investment strategy concerned, Kao said "Motorola also continues to invest in China. As of the end of 2008, our investment in China totaled approximately 3.8 billion U.S. dollars, making Motorola one of the largest foreign investors in China. Investment in R&D reached 1.2 billion dollars and Motorola has 3,000 R&D engineers in the country."
The stimulus program implemented by the Chinese government has generated positive results in China. Kao told Xinhua that many economists consider China's stimulus program as the "gold standard," both in its size and the speed of injecting funds into the domestic economy.
Kao is very pleased that the stimulus program also brought many opportunities for Motorola when China is moving toward promoting domestic consumption.
When commenting on China's economic development and its economic outlook for the next few years, Kao expected that China will continue to grow at a rate faster than other major economies.
"We expect that consumer demand in China will grow even faster as the Chinese government continues to stimulate consumption and as it reinforces its social safety net for China's poorest citizens," he added.
Doing business in China during such changing times, Motorola is facing some challenges as well. "The biggest challenge in China is the intense competition from foreign and domestic manufacturers," Kao said.
Motorola entered the Chinese market in 1987 when it opened a representative office in Beijing. In 1992, Motorola (China) Electronics Ltd. was established in Tianjin, where today the company runs one of the world's major manufacturing facilities for communications equipment.