BOSCH China President Chen Yudong: China Manufacturing Still Has Considerable Advantages, Will Strengthen Local Research And Development And Localization.

[international big coffee watching the two sessions]

In 2020, "live goods" showed a new pattern. Li Jiaqi and Wei Ya were still popular, and entrepreneurs in order to promote consumption were also anchors. Before that, GREE Group Chairman and CEO Dong Mingzhu and Fosun international chairman Guo Guangchang took the lead in the attack, and then Chen Yudong, President of BOSCH China, was eager to try.

In an interview with the twenty-first Century economic news reporter, Chen Yudong said that despite the steady supply chain of BOSCH during the epidemic, the epidemic also brought new challenges to BOSCH and accelerated the transformation of BOSCH in the consumer sector. According to Chen Yudong, this year's "6. 18" mid year promotion campaign, he will take the goods personally as the anchor, hoping to attract more consumers.

In addition, Chen Yudong made his own interpretation of the two sessions that have just been concluded. Chen Yudong believes that this year's government work report highlights the important objectives of people's livelihood, anti epidemic battles and poverty alleviation. Chen Yudong pointed out that the "two new priorities" (new infrastructure, new urbanization, and transportation, water conservancy and other major projects) will bring many investment opportunities for foreign-funded enterprises.

Global supply chain or recovery in July

Twenty-first Century: what is the situation of BOSCH's resumption of resumption of production?

Chen Yudong: since February 10th, BOSCH's various companies and factories have begun to resume work and resume production. Among them, in order to produce spare parts for anti epidemic vehicles, we have two factories that did not stop production during the Spring Festival and insisted on working overtime, namely, the steering system factory in Wuhan and the automobile electronics and chassis factory in Suzhou. Since February 10th, we have gone through a process from 30% to 100%, and now the production is very normal. Up to now, we have withstood all kinds of challenges, including initial logistics, workers unable to rework, and shortage of preventive materials. In the past few months, we did not cause any customer to stop production. We have fully resumed work in 37 factories and all other offices in China.

Twenty-first Century: the new crown virus is spreading around the world, and many countries are shutting down and shutting down production. What is the impact on BOSCH's supply chain?

Chen Yudong: from late March to May, many countries in the world shut down and shut down factories, including factories in North America, Europe and Southeast Asia. This is a huge challenge for us, but at the same time, it shows the advantages of multinational companies in the layout of production capacity. After many stoppages around the world, China starts to resume production and resume production, so we call global resources to ensure the safety of China's market supply chain. We fight every week to study how to ensure that OEM (Original Equipment Manufacturer) is not shut down. We have specialized logistics team, sales team, production team are concerned about the flow of products and parts, will ensure that customers do not stop production as the ultimate goal.

Twenty-first Century: according to your judgment, when will the whole supply chain return to normal?

Chen Yudong: now the main production bases in Europe and the United States are gradually resuming work and resuming production, though not reaching 100%, they are slowly recovering. I think after June, the whole supply chain will be stable. In July, it is likely to achieve a more secure state. It may not stop production because of supply chain problems.

BOSCH China now has more than 50 thousand people, and the quality of employment offered is relatively good. Vision China

Promoting consumption is the top priority.

Twenty-first Century: automobiles and household appliances are large commodities, which are quite affected by the epidemic. Do you think there will be "retaliatory consumption" next?

Chen Yudong: since February, I have called for everyone to focus on the consumer side, not the supply side. Because companies like us will do their best to protect the supply side. However, if enterprises protect the supply of products, but no one buys them, this is a very painful thing. Therefore, this country has done a lot of work so that we can resume work and resume production smoothly. The next stage is to promote consumption, promote consumption in the areas of large commodities, small pieces of commodities and tourism industry, and ensure that it returns to normal. This is the top priority. We are looking forward to the rebound of the consumer market and hope to have "retaliatory consumption".

Twenty-first Century: what strategies did BOSCH take to promote consumption? Has the epidemic accelerated BOSCH's transformation in the consumer sector?

Chen Yudong: for us, we need to provide enough quality products, so that we can see that products have impulse to buy. So we do some promotions from the terminal. We will help consumers make some decisions through online promotion and offline store promotion. In addition, we will actively expand our consumption channels and get closer to our end customers, such as live selling. Last year, "6. 18" we made a live broadcast of electric tools, but at that time we focused on brand promotion. This year will be somewhat different. We will set sales targets, and I will personally participate in the live broadcast, hoping to attract some consumers to buy our products.

"Two new and heavy" construction opportunities

Twenty-first Century: how do you interpret this year's government work report? What impressed you?

Chen Yudong: I think this year's report on the work of the government is very concise. At the same time, it focuses on the following tasks: People's livelihood, epidemic prevention and poverty alleviation. I am more impressed by the figures mentioned by Premier Li Keqiang at the press conference, and one of them has surprised me. I didn't expect hundreds of millions of people in China to earn 1000 yuan a month. This figure will help us to help these people to get jobs in the future, so that they can increase their incomes better and faster, so that we can focus more on promoting employment. BOSCH China now has more than 50 thousand people, and the quality of employment offered is relatively good. In addition, we are still recruiting people, especially R & D staff. We plan to recruit 700 to 800 software engineers this year. We hope to continue to provide good job opportunities in the Chinese market.

Twenty-first Century: the government's work report proposes that the Chinese government will focus on building the "two new priorities" this year. What fields can be invested in foreign enterprises like BOSCH?

Chen Yudong: the pulling effect of the new capital construction is very obvious. For example, if the charging pile is built, if the number of charging piles increases, then the consumption of electric vehicles will be promoted, and then the consumption of the whole industrial chain will be pulled. On the other hand, it is about the problem of using the existing expressway. In the future, there will be a lot of new communication between vehicles and vehicles, vehicles and base stations (V2X - Vehicle to X). Overall, the proposed new infrastructure will not result in overcapacity, but focus on improving efficiency. We are also positive, and actively seek more investment and project opportunities to participate in the new infrastructure.

At present, we have invested some technology ourselves, such as our Xi'an factory has used many 5G technologies to arrange the networking and communication of the whole workshop more effectively, so that 5G's application in industrial 4 is better.

Twenty-first Century: the government work report also mentioned the need to create a fair and fair market environment for domestic and foreign capital enterprises. What do you think of this? What opportunities are there for multinational enterprises?

Chen Yudong: for foreign-funded enterprises, what we have been pursuing is equal treatment of foreign enterprises, private enterprises and state-owned enterprises. I don't think the future needs to be so detailed, because we always believe that enterprises in China are Chinese enterprises. In the past few years, I think the Chinese government has done a good job. At least, we are engaged in industries that are open and competitive. We are very pleased with the progress of the business environment every year.

The foreign investment act, which began in January this year, also has a positive effect on the overall business environment. This law combines the previous laws and regulations with clearer and clearer terms. In addition, the state has been reducing the negative list. These measures are very beneficial for us.

Twenty-first Century: what layout or investment plan does BOSCH have in China this year?

Chen Yudong: at present, the capacity utilization rate of our general products has not reached 100%, basically enough, so we will maintain the status quo in general products. However, we will invest more in new products, such as those related to industry 4, new infrastructure related products.

In addition, whether it is household appliances, industry or automobiles, the definition of software will become a trend in the future, so we set up an independent innovation and software center in China. At the same time, our new fuel cell center is also being built. In the case of ensuring the supply of products, we will actively explore new areas and new growth points for the future layout.

We still have great confidence in the whole Chinese market, so our new investment in fixed assets continues to grow.

China's economy as long as it is positive growth is victory.

Twenty-first Century: how do we see the goal of economic growth not set this year?

Chen Yudong: This is keeping pace with the times, because this year's uncertainty is too great. I think the decision of the government is very wise. It does not need to set such a figure. It only needs to pay attention to the steady livelihood and steady employment of Premier Li Keqiang. As long as these two aspects are well done, GDP will not be too bad. If it doesn't work well, how GDP sets it is a figure, so I think this year's goal is very clear.

Twenty-first Century: what do you think of China's economic prospects?

Chen Yudong: because this year's uncertainty is very large, no one dares to make a real prediction of the Chinese economy's prediction this year. But I think as long as positive growth is a victory, even if it is 1% or even 2% growth. Countries that are able to maintain positive growth this year are basically hard to get, but there is still hope for China to grow as long as it can successfully protect people's livelihood and secure employment.

Twenty-first Century: I remember you once said that we need to wait until July to judge the trend of the global economy as a whole. Why is it July?

Chen Yudong: at present, the biggest uncertainty is the outbreak of the epidemic and the global non opening due to the epidemic. If the supply chain is safe after July, it can also determine the trend of the epidemic. In this case, we can basically judge the overall trend.

So the judgement for the future car market is that from the second half of the year, I do not think there will be double digit negative growth like the first two months. The negative growth of the number of units is still possible, but the positive growth of the number of units is also possible, so I do not think it will be too bad in the second half.

Rooted in China will not change

Twenty-first Century: there are many discussions about globalization under the epidemic. Do you think the trend of globalization will change? As a multinational company, what does BOSCH think of globalization?

Chen Yudong: there are bound to be some changes. This is undeniable. In most cases, because the final product has the attributes of competition, competition is mainly based on the competitive ability of the integrated supply chain and the safety of the supply chain, so it is normal to make some adjustments in the future. However, China's advantages are undeniable, mainly reflected in two aspects: first, the market is big. In the future economic development, no one wants to give up such a big market in China. Second, although the labor cost is rising, the ecology of China's supply chain and the comprehensive quality of its employees are incomparable to those of low cost countries. Therefore, it is understandable that some of the labor-intensive enterprises move to other places, but the competitiveness of the whole manufacturing industry in China has not changed much. I am still very confident about China's internationalization. We will continue to take root in China and serve China.

Twenty-first Century: you have just said that some changes have taken place in the global trend. What are the implications for multinational corporations with multiple continents?

Chen Yudong: I think the biggest impact is that more localization makes our local R & D and innovation capabilities stronger. For BOSCH, we hope that we can further strengthen localization, provide better products and services, and serve the Chinese market, because more than 95% of BOSCH's sales in China are for the Chinese market. BOSCH China is a Chinese company with German genes.