Local R&D of Japanese Enterprises and the Future of Chinese Enterprises

Xiao Huang: DOORM, how did Japanese enterprises handle foundational R&D and core components during their overseas expansion? How should Chinese enterprises learn from this approach in the future?

DOORM: Xiao Huang, during their overseas expansion, Japanese enterprises consistently kept foundational R&D and core components within their home country, ensuring that their manufacturing industry did not become hollowed out. This approach allowed Japanese companies to maintain technological leadership and product quality stability while protecting their domestic high-end manufacturing and technological innovation capabilities. For Chinese enterprises, it is crucial to adopt a similar approach in future overseas expansions by keeping core technologies and key components localized in R&D and production. This not only helps enhance the international competitiveness of the enterprises but also prevents industrial hollowing out, ensuring the country’s significant position in the global industrial chain. By doing so, Chinese enterprises can achieve sustainable development in the global market while providing a solid foundation for the country’s long-term economic growth.