Chinese companies want to step aside from mimicking Japanese, US and European products and develop products on their own and have spent over $228 billion on research and development programs in 2022, news agency Nikkei Asia reported.
Insulator-maker Jiangsu Shemar Electric, Chinese automaker BYD and Hygon Information Technology are companies that have increased their funding for research and development programs.
Jiangsu Shemar Electric’s vice president Wu Jing said his company has captured a market share of 90% in the US and Europe. His company developed a lighter polymer insulator which is more durable thus making it a world-leading company in the field.
Many Chinese companies have been introducing cutting-edge technologies from Japanese, American and European firms using it as a basis for their own manufacturing. This has also helped them boost sales due to the size of the domestic market. However, this copycat strategy has not helped them capture markets overseas which has led to the pivot in R&D.
The Nikkei Asia report highlighted that Jiangsu Shemar has 216 researchers and other staff working in R&D. This is also 14% of its total workforce.
Automaker BYD’s team is among one of the largest in China’s listed companies with 69,697 staff, including 590 holders of doctorate degrees and 7,827 with master’s degrees. Most of these workers have studied in top universities in the US and Europe.
BYD has used their expertise to develop products like the advanced-safety and high-capacity “blade battery" using lithium iron phosphate, Nikkei Asia said in its report.
R&D personnel account for 90% of Hygon Information Technology’s workforce. They develop semiconductors for central processing units and artificial intelligence. They are also high-payers with R&D staff earning $123,812. The report also pointed out that most of the R&D staff there are only in their 20s and 30s.
The confrontation between the US and China has also led to China pushing for self-reliance and drifting away from their competitors.
The focus on the tech sector also comes amid the fall in the property market. Lawmakers and business magnates feel aggressive investment in the tech sector will help Beijing fend off its economic worries.