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Tuesday, 13 March 2012 - Beijing takes a brand-new approach to Made in China |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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William Gagan and Geoff Shivley share how the technology that allowed them to live stream their escape over the Turkish border also put their lives at extreme risk.  Video  Follow Reuters Facebook Twitter RSS YouTube Read UPDATE 4-Obama defends energy policies amid gas price pain 12 Mar 2012 Massacre makes Obama "more determined" to leave Afghanistan | 3:39am EDT Yahoo sues Facebook for infringing 10 patents 12 Mar 2012 Afghans urge U.S. exit after killings; US says timetable unchanged | 12 Mar 2012 Republicans in three-way battle in Deep South | 12 Mar 2012 Discussed 173 U.S. serviceman detained in Afghanistan over civilian casualties 137 Israel asks U.S. for arms that could aid Iran strike 124 Sixteen Afghan civilians killed in rogue U.S. attack Watched K-Pop makes history in South America Mon, Mar 12 2012 Israeli army releases video of airstrike Sat, Mar 10 2012 Japan's year of struggle, in 60 seconds Fri, Mar 9 2012 Beijing takes a brand-new approach to "Made in China" Tweet Share this Email Print Related News Car makers battle to escape Europe's slow lane Tue, Mar 6 2012 Jaguar Land Rover, Chery seek approval for joint venture Mon, Mar 5 2012 China boosts defense budget 11 percent after U.S. "pivot" Sun, Mar 4 2012 AB-InBev on shortlist for China brewery deal: sources Fri, Mar 2 2012 China leader-in-waiting Xi woos and warns U.S Wed, Feb 15 2012 Analysis & Opinion China’s trade deficit is sign of things to come Yuan risks uniting bulls and bears? Related Topics Tech » TCL Multimedia employees work at a production line in a factory in Huizhou, in China's southern Guangdong province October 8, 2010. Credit: Reuters/Tyrone Siu By Lucy Hornby BEIJING | Mon Mar 12, 2012 11:53pm EDT BEIJING (Reuters) - Two new Chinese LCD screens in Beijing's imposing Great Hall of the People will replace screens made by a Japanese competitor, in a sign of resolve to supply the world with Chinese brands and not just Made in China products. The screens are made by Chinese electronics giant TCL. At 110 inches, they are the world's largest high-definition 3-D LCD screens, just a touch wider than the 108-inch Panasonic (6752.T) models they will replace. "We have broken through the Japanese and South Korean monopoly of big flat-screen TVs!" TCL (000100.SZ) chairman Li Dongsheng boasted at a launch ceremony on Friday. Officials from the Ministry of Commerce, Ministry of Science and Technology, Ministry of Industry and Information Technology (MIIT), and the government of Shenzhen, TCL's hometown, clapped and nodded. The government is encouraging its companies to move up the value chain and develop margin-producing brands, partly as a matter of national pride but also to shift the world's second-biggest economy away from gritty, low-profit manufacturing. But creating recognizable brands has not been easy. With the possible exception of computer-maker Lenovo (0992.HK) and appliance maker Haier (1169.HK), China has few brands that foreign shoppers would recognize. Even at home, producers often find themselves supplanted by high-end foreign brands. "That is a big hurdle, especially in autos. (The domestic brands) are almost non-existent in large cities like Shanghai or Beijing because no one wants to be seen going lower than a Japanese or a Korean brand," said James Roy, a senior analyst with China Market Research Group, a Shanghai-based consultancy. Beijing has been ready to lend a hand. This month, MIIT posted new rules requiring officials, who overwhelmingly prefer German luxury brands like Audi (NSUG.DE), to buy only local cars. Other efforts, including government support for domestic companies engaged in "indigenous innovation", have led to allegations that China is unfairly trying to tilt the playing field towards its own industry by guaranteeing government purchases and by setting standards that favor Chinese companies over established industry leaders [ID:nL3E7KN0E6]. "If Chinese companies want to go global, they can't just compete in a protected domestic market," said Zhao Yuhai, high- and new-technology development and commercialization director general at the Ministry of Science and Technology. "That way you will never win the global market. So this concern is unnecessary," CAR-VING OUT A MARKET For policymakers, overseas presence is a sign that a brand has succeeded. Companies aspiring for international brands should aim to earn one-fifth their revenues and one-third of their profits from sales abroad, Yang Mianmian, the president of the world's largest appliance maker Haier, told the National People's Congress, or parliament, a few years ago. Haier sells compact appliances like washing machines and mini-fridges under its own name in the United States, but still sells in Europe under European brand names. Few other companies have reached even that level. "Some brands have started (to get international recognition), but most need more work," Zhou said. "Of course, there are different kinds of markets, high-end and low-end, and I think brands like TCL are still at the mid-to-low-end stage. But they'll move up." TCL sells under its own name in developing markets, but markets under the Alcatel, Thomson and RCA brands in the West. "To fully sell under our own name isn't a question of technology but of marketing. Because if we promote a new brand, our own brand, it would take time," TCL's Li told Reuters. "If there is already a local established partner, using their brand is quicker. For our company, the most important is bigger sales turning into greater revenue." For many companies those big sales come at home. Unlike South Korea or Taiwan, China's domestic market is big enough that many producers do not yet need to focus on developing international brands, said Roy of China Market Research Group. "That there aren't many Chinese brands that are globally known shouldn't necessarily suggest that Chinese companies don't know how to brand," he said. "The main opportunity for brands has been the domestic market." The auto industry is still a major front in the brand wars. The government hinted to foreign automakers last year that applications to expand joint venture production were unlikely to be approved unless they worked with their Chinese partners to develop Chinese-branded cars. General Motors has since launched the "Baojun" (Treasure Steed), although it denies that it was in response to Chinese government pressure. The policy helps correct what planners now see as a mistake -- although China is the world's largest vehicle market, it lacks the defining national auto brand enjoyed by such smaller markets as Korea, Malaysia, the Czech Republic, even Poland. When China married foreign automakers to its largest state-owned firms, the unexpected consequence was that the joint ventures saw rocketing output, but left the state-owned firms with zero incentive to develop by themselves. (This story was corrected to fix the timing of screen installation in paragraphs 1-2) (Additional reporting by Terril Yue Jones; Editing by Don Durfee and Ron Popeski) Tech Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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