Zhongguancun companies take foothold overseas

0 Comment(s)Print E-mail China.org.cn, October 19, 2017
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The Zhongguancun-based Baidu Inc. in early October announced the opening of its second research and development center in California’s Silicon Valley. It is one of the nearly 1,000 overseas R&D centers established by Chinese companies since Zhongguancun launched the action plan for the international development of its enterprises.

The newly built R&D center has a capacity of 150 and is equipped with an advanced automotive laboratory.

Zhang Yaqin, CEO of Baidu Inc., said the center is mainly used for R&D in the fields of automated vehicles and internet security. The center will also continue the prospective studies of AI and data centers.

The elite talents flocking to overseas branches of Chinese enterprises are the result of Zhongguancun’s open innovation and “going global” strategy.

Since Zhongguancun launched the action plan for the international development of enterprises, more and more leading Chinese enterprises like Baidu established their overseas subsidiaries or branches.

According to the Management Committee of Zhongguancun, in order to encourage Chinese enterprises to launch overseas branches, Zhongguancun was the first in China to establish a special fund for the international development of Chinese enterprises, as well as a merger and acquisition fund of 30 billion yuan (US$4.53 billion).

Nearly 1,000 enterprises including Lenovo, Baidu and Xiaomi have established R&D centers or branches abroad, according to the committee.

Baidu was the first Chinese enterprise to open a R&D center in the Silicon Valley in 2011, which has developed from a team of several to over 200.

Zhongguancun also intensifies cooperation with foreign innovation regions. It has set up 10 overseas liaison offices in the Silicon Valley, London and other places to promote the international development of Chinese enterprises.

The leading companies from Zhongguancun have had increasing influence abroad. Baidu and JD.com are both ranked in the top 10 among global internet companies, and JD.com, Lenovo and BAIC Motor have settled into the list of Fortune 500 companies.

Meanwhile, Zhongguancun, the first national independent innovative demonstration zone in China, has attracted more than 300 international companies, including Intel, Microsoft and IBM, to establish R&D centers there.

Over the past five years, Zhongguancun has greatly increased its capacity for economic contribution. There are about 20,000 high tech enterprises in the area. The number of enterprises whose annual revenue exceed 100 million yuan is 3,273, doubling the number in 2011. Listed companies have increased from around 200 in 2011 to 312 in 2017, and 98 have gone public abroad.

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