Tech companies adjust focus to recapture growth
Updated: 2015-11-23 08:18
By Hu Yongqi(China Daily)
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A panoramic view of Zhongguancun, dubbed China's Silicon Valley for its high-tech products and services, in Beijing. Provided to China Daily |
In 2014, companies based at the park also boosted high-end manufacturing, resulting in higher profit margins. The software park is also known for energy efficiency and low emissions, and for limiting contributions to the smog that blankets Beijing and other parts of northern China.
The smart communications test satellite developed by Tsinghua University and Xinwei Telecom Technology Group Co Ltd, for example, completed in-orbit testing trials, an important breakthrough in China's first mobile low-orbit communications satellite. In another example, Beijing Ingenic Semiconductor produced chips to conserve energy consumption for wearable devices, a national leading technology that enables people to remotely control appliances or other electronic devices.
Meanwhile, Zhongguancun companies also strive to participate in national strategic initiatives. In February 2014, President Xi Jinping called for integrated development of the municipalities of Beijing and Tianjin, and Hebei province, to ease congestion in the capital and promote more balanced development in the neighboring areas.
By the end of 2014, 22 companies headquartered in the software park joined the integration plan of Beijing-Tianjin-Hebei cluster and set up branches in Tianjin and Hebei to explore new markets and increase consumption and revenue.
In 2014, a new group of 51 companies moved into the software park, including 37 that have been founded over the past two years and are committed to new technologies such as cloud storage and mobile Internet.
Yongyou Software Co, listed on the Shanghai Stock Exchange, signed an agreement with Internet giant Alibaba Group Holding Ltd to invest in cloud storage and big data analysis earlier this year.
"It has become a trend for traditional companies to fully adopt Internet technologies, a key to helping China restructure its economy," said Wang Wenjing, Yongyou's chairman.
Shen Jiawei, a professor of economics at Fudan University, said the companies have chosen the right strategy to transform their businesses, but just as critically, they need to ensure products are of high quality.
"The Internet is a tool and platform that could change how enterprises disseminate their goods or services and how people purchase goods and services. The companies should fully utilize it and keep it in mind that the quality of goods and services should be most important for the growth of the companies," Shen said.
huyongqi@chinadaily.com.cn
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