China Electronics has been an industry that has historically manufactured low cost,
simple goods. Today, the focus has shifted to High Technology and Information Technology.
One of the causes of this shift is China's ability to change from a nation of cheap
labor to a center of sophisticated production and automation. The Chinese manufacturing
companies can now produce a cheap flat screen televisions along side with high tech
network routers. It is no wonder that the largest industry in China is now IT plus
China's shift in manufacturing to value added goods has resulted in the production
of hundreds of millions of mobile phones, LCD panel TV's and monitors and personal
computers. The domestic China Electronics and IT industry is estimated to be approaching
a trillion US dollars. The rise of the middle class in China has resulted in an
increase in demand for televisions and other electronic goods prevalent in developed
countries. The migration of families from rural agricultural areas to urban manufacturing
centers has further accelerated this trend.
Foreign electronic companies were first enticed to come to the China factories due
to a cheap labor supply for their OEM goods. Although labor cost is still a driving
factor, other variables such as political stability, educated workforce, tax rates,
and infrastructure are becoming important too.
The Chinese factories run 24 hours a day, 7 days a week and close only for Chinese
New Year or National Day holidays. This turns out 50 weeks of productivity per
year. The China Electronics factories can be as large as the size of football fields.
They take people, components, and raw materials and crank out finished goods at
an impressive rate.
China Electronics Development Areas
The Pearl River Delta region
The Pearl River Delta region in the southern part of Guangdong Province with access
to the South China Sea was the first economic area to reap the benefits of a China
Electronics Industry boom. Its strategic location of being next to Hong Kong makes
it an obvious place to invest in China. It is the first place in China where the
modern electronics industry appeared.
Yangtze River Delta region
High technology operations of the China Electronics industry have also taken place
in the Yangtze River Delta region, an economic development spanning sixteen cities.
The main cities are Shanghai, Suzhou (Jiangsu Province) and Hangzhou (Zhejiang Province).
More than 400 out of the top 500 companies in the world have settled in this region.
Qingdao on China's Northern Coast is the location for many of the country's top electronic
brands such as Haier, the country's largest electronics producer and Hisense, a major
manufacturer of TV and digital TV broadcasting equipment.
Dalian, a city on the Yellow River is another major China Electronics production
center. It is the home of such international brands as IBM, Dell, Sony and Microsoft.
The center has become a major software development area.
Top China Electronics Companies
While foreign brands such as Sony and Toshiba own a large share of China's domestic
electronics industry, home grown Chinese companies and their brands have taken on
the import competition.
Lenovo Group is China's largest IT company with the most computer sales in China.
The company was born in 1984 with the Lenovo brand being marketed in 2003. Today
Lenovo is a large global country in 60 countries spanning 6 continents.
Founder Electronics is a subsidiary of Founder Group, a provider of technologies,
products and services in the cross-media communications industry. It began in 1986
with investments from Peking University.
Founder Electronics provides advanced information processing technologies, software
products, integrated solutions and other value-added services to customers. Its
businesses cover a wide range of industries worldwide, including newspapers, publishing,
printing, broadcast, television, internet and government administration.
Tsinghua Tongfang is another major home grown China Electronics and IT company. Tsinghua
Tongfang was established in 1997 through funding from the Tsinghua University in
Beijing. The company is involved in information technology, energy and environment
industries. Information Technology business segments include information systems,
application systems, digital television systems and Internet application.
Haier is a multinational home appliances company in China. It is one of the world
largest manufacturers with significant market share in China's appliances segment
(air conditioners, washing machines, refrigerators and televisions).
Changhong is a consumer electronics company based in Mianyang, China which began
in 1958. The Changhong brand has been in existence in China for 60 years. Changhong
with one third of the market share, is the number one selling TV brand in the Chinese
market for the last 17 years. Many of the televisions exported from China to the
United States today are made by Changhong.
Konka is one of China's top 100 electronic companies. Its beginnings date back to
1980 when it started as the first domestic Sino-foreign joint venture electronic
company. It specializes in consumer electronics: TV, mobile phone, LED Display,
auto electronics, and home appliances. Konka is ranked as the top ten most valuable
brands in China.
TCL Corporation is a global electronics company headquartered in Huizhou, Guangdong
Province, China. Founded in 1981, TCL produces goods in the following electronic
segments: consumer electronics, mobile communications and home appliances. The company
has over 100 million consumers around the world.
Many of the top China Electronics Companies have expanded their presence overseas
putting their Made In China labels on higher end electronics in an effort to shift
from a reputation of low prices to high quality. While China is still trying to
generate a Sony or a Samsung, there are Chinese electronics products that can match
the quality of the world's top brands. TL-Link is such a company. It is the brand
awareness that the Chinese companies need to work on.