Confidence mounts that innovative China can go global

As China is moving its industry up the global value chain, Jilin province, a traditional industrial center in Northeast China, has made marked progress in technological innovation, brand building and overseas expansion.

CRRC Changchun Railway Vehicles, a major locomotive producer, secured a 1.23 billion yuan ($186 million) order in April to provide subway cars to the Los Angeles metro.

Since the company entered the United States in 2014, it has won similar bids in Boston, Chicago and Philadelphia.

It is not easy to reach agreement in negotiations with US clients due to the differences in culture and law, said Li Li, manager of the North American business of the company.

"The US government demands at least 70 percent of the parts be purchased locally and the fi nal assembly be made there, so we need to adapt ourselves to the local legal system and negotiate with our counterparts in insurance and logistics," Li said.

She said she had faith that Chinese companies could go global after learning about foreign laws and competitors and conducting market research.

The province also encourages innovation and helps businesses to reduce costs and increase their efficiency.

On a big LED screen at Changchun Yidong Clutch's assembly plant, information on orders, production and clients is constantly updated.

Liu Guoshuai, head of the plant, said the company's resource planning system helped monitor the whole production process, paving the way for a lean management structure.

In the last two years, the company has been transforming itself from a traditional manufacturer to a modern and intelligent manufacturing enterprise, according to Meng Qinghong, Party chief of the company.

It also established a high-powered automatic assembly line, its output filling a gap in the domestic market.

Jilin Aodong Medicine Industry Group has always valued technological innovation.

With the company continuing to innovate its technologies and products, in 2016 its signature drug's brand value was estimated at 2.09 billion yuan and ranked 31st on the Chinese Brand List.

You Haitao, director of an injection drug plant at Jilin Aodong Yanbian Pharmaceutical, a subsidiary of the group company, said there was a 4-5 percent rejection rate in production output when the new plant first came into operation in 2016.

After nearly two months of analysis and technological innovation, You led his team to resolve the problem. The solution has helped the company to reduce costs by nearly 10 million yuan annually.

Organic farming is another highlight of Jilin province.

Kim Gun, from the Korean ethnic group in Yanbian Korean autonomous prefecture, opened a farm in 2009 to plant organic rice and process the yields.

His 300-square-meter mill produced about 30 metric tons of processed rice a day. But such a small scale hardly justified the premium price, even for high-quality organic rice.

In April 2016, he raised about 7 million yuan to build a modern three-storey plant, covering more than 2,500 sq m, and added equipment. The new plant can process 80 tons of rice a day.

Kim also paid attention to marketing and brand building.

"The rice can sell well with an established brand," he said.

Last year, sales topped 1,000 tons, 400 tons more than the previous two years.

More than 200 tons were sold online, with the furthest shipments traveling to the Xinjiang Uygur autonomous region.

Chen Meiling contributed to this story.

(China Daily 10/19/2017 page10)