Overseas Manufacturers Speed up Shifting Purchase, R&D Center to China

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Last updated at: (Beijing Time) Friday, September 06, 2002

Overseas Manufacturers Speed up Shifting Purchase, R&D Center to China

Nearly 400 of Fortune listed world top 500 enterprises have invested more than 2000 projects in China. World major manufacturers of computer, electronics products, telecom equipment, petrol and chemical products have extended their production network to China.

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China's Manufacturing Industry

Recent years have seen new trends of overseas manufacturers shifting their production to China, including purchasing and research and development.

At China's first equipment manufacturing industry fair ongoing in Shenyang, the US-based General Electronics, the ninth corporation on world top 500 list, announced that before 2005 its purchase volume in China's mainland would reach 5 billion US dollars. While its R&D center set up in Shanghai has become one of its three such centers worldwide.

Motorola's China branch also said that it plans to put in over 10 billion yuan for research and development work in the mainland in coming five years, taking up one third of its world total and with an expected yearly output over 10 billion US dollars. In fact, by now Motorola has shifted both its production base and R&D center to the mainland, with its energy system department, software and mobile phone research already taken root. The R&D transfer will continue and efforts will be made on basic researches, according to Motorola's China branch chairman.

The integrated shift proves China's growing manufacturing industry, expert said, all these show that China will by no means serve as only a production base for transnational corporations.

Equipment Manufacturing Expo. Opens in Shenyang

As early as before China's WTO accession, experts predicted more and more transnational corporations would choose China as a base for market sale, raw material purchasing, pricing or even new product developing and human resources, so as to provide all-round services to their productive branches in Asia.

Nearly 400 of Fortune listed world top 500 enterprises have invested more than 2000 projects in China, according to statistics released by the United Nations Conference on Trade and Development (UNCATD). World major manufacturers of computer, electronics products, telecom equipment, petrol and chemical products have extended their production network to China.

Since 1990 China's mainland has absorbed a foreign capital reaching 230 billion US dollars, taking up 45 percent of Asia's total. Meanwhile, transnational giants have been moving rapidly their production links to China, from production to purchasing, and R&D centers.

In past few years Microsoft, Motorola, General Motors and Siemens have established over 100 R&D centers and more production bases in China.

By PD Online Staff Member Li Heng

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