Breaking Through Korean, Japanese, German, and American Technologies in China [Correspondent Diary]

China Challenges to Become a Technology Power through Fostering Hidden Champions
Xi Jinping Reaffirms Commitment to Cultivating 'Zhenzhengtexin' during Visit to Sichuan Xijimi Factory

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese President Xi Jinping inspected Sichuan Province from the 8th to the 9th. Ahead of the 20th Party Congress, the dominant analysis is that President Xi was carrying out a political schedule for his third term.

Photo by Xinhua News Agency Capture

The most notable schedule during the Sichuan inspection was the visit to a company. On the afternoon of the 8th, President Xi visited the XGIMI factory. It is very unusual for President Xi to visit an individual company. Founded in 2013, this company is the number one seller of beam projectors in China. Known as the best cost-effective company in the beam projector field in China, many Koreans also purchase XGIMI products through overseas direct purchase.

President Xi’s visit to XGIMI is interpreted as a will to foster 'Zhuanjing Teshu Xin' (specialized, refined, distinctive, and innovative). In Korean terms, this means small but strong enterprises (Gangso companies) or small and medium-sized enterprises with global technological competitiveness (hidden champions).

The term Zhuanjing Teshu Xin also appeared at this year’s Two Sessions (National People's Congress and Chinese People's Political Consultative Conference). This year’s Chinese government work report included a phrase about fostering Zhuanjing Teshu Xin companies through full support of talent and funds. The Chinese government previously announced plans to create high-quality Chinese brands during the 14th Five-Year Plan period (2021?2025).

Zhuanjing Teshu Xin also represents a revision of China’s existing development strategy. It aims to move away from the OEM (Original Equipment Manufacturer) growth model to directly creating brands and fostering them into global products.

Chinese provincial governments are also proactive. In the case of Sichuan Province, which President Xi inspected, a blueprint was announced to foster about 400 national-level Zhuanjing Teshu Xin companies by 2025. Other provinces have also presented plans and support measures to foster national and provincial-level Zhuanjing Teshu Xin companies. A well-developed small and medium-sized enterprise not only helps local finances and employment but also leads the entire national economic development.

In fact, the XGIMI factory located in Yibin City, Sichuan Province, aims for sales of 20 billion yuan (about 3.8 trillion KRW) by 2025. Chinese media report that in this case, Yibin City will secure tax revenue of 600 million yuan and create 3,000 new jobs.

At the site where President Xi visited the XGIMI production line, he expressed his intention to revise China’s development strategy. He emphasized, "China must accelerate the transition from a manufacturing giant to a manufacturing powerhouse" and actively foster hidden champions.

The company itself is also encouraged. Zhongbo, chairman of XGIMI, said, "We will continue technological innovation and strive to become the leading company in the industry." He also emphasized XGIMI’s freshness by stating that most employees were born in the 1980s and 1990s, and over 95% of the research and development (R&D) personnel are under 40 years old.

Zhuanjing Teshu Xin reflects a strong will to increase the added value of the manufacturing industry through industrial structure advancement. It also means fostering small and medium-sized enterprises to strengthen the foundation of the industrial structure. Along with this, it includes the intention to connect technologically capable small and medium-sized enterprises with large companies to multiply the value of Made in China products.

The first target of 'Made in China 2025' is South Korea. The goal is to join the ranks of technological powerhouses like South Korea by 2025 and then successively catch up with Japan, Germany, and the United States. The time has come to be wary of China’s Zhuanjing Teshu Xin.

This content was produced with the assistance of AI translation services.