TCL Overseas Business Growth Surpasses Domestic Trends

TCL Overseas Business Growth Surpasses Domestic Trends

July 01st,2008

July 1st 2008, Shen Zhen - TCL Corporation s sales returned to overall growth this year Growth in overseas markets including North America and Europe exceeded that in the domestic market. This shows that the program of streamlining and reforming the company s global supply chain, business structure and processes, which began in 2007, is beginning to bear fruit.

This news was revealed in London on June 27th by TCL president Li Dongsheng at the "Caijing Chinese Business Forum on The Road to Internationalization". The forum was jointly hosted by Caijing magazine and world-class British think tank, Chatham House, formerly known as the Royal Institute of International Affairs.

It was intended to focus global attention on the Chinese economy and strengthen political, commercial and academic ties between China and Europe, while promoting innovative thinking among Chinese businesspeople and finding sustainable routes to internationalization for Chinese businesses, top economists and senior economic and trade relations officials from China and Europe, as well as representatives of Chinese firms such as TCL, Lenovo and Huawei, engaged in a vibrant debate on these topics.

In January 2004, TCL acquired the color TV business of French company Thompson; three months later, TCL also acquired mobile phone businesses operating under the Alcatel brand, causing unprecedented overseas interest in Chinese firms international mergers and acquisitions. However, TCL s road to internationalization has been far from smooth, as the restructuring of the company s European business in 2006 led to the company incurring losses.

But now, following four years of internationalized development, Li Dongsheng is convinced that pursuing internationalization is a necessary path for the future development of outstanding Chinese businesses. He is also convinced that TCL s path of internationalization will not end in failure, and that adjusting to environmental conditions, involvement with local regulations and strengthening business capabilities are crucial points on Chinese businesses road to internationalization.

He also said that he hopes the international community will maintain an objective and tolerant attitude towards Chinese businesses which "step outside China", viewing them as colleagues in areas such as market access, investment and mergers and acquisitions, and that it will not overly politicize the economic vitality of Chinese business.

Financial liberalization and economic globalization are driving Chinese businesses to take the path of internationalization. The internationalization of Chinese business initially began with the pioneering spirit of businesspeople, and has continued to exhibit sustained growth to the present day. The current wave of businesses "stepping outside China" has included both successes and failures, but what lessons can be learned from this? What shape will the future development of internationalized Chinese businesses take? The "Caijing Chinese Business Forum on The Road to Internationalization" allowed a vibrant debate to take place around these issues, and it was also the first time that Caijing has thrown the spotlight on Europe.

It attracted a great deal of attention from British media, businesses and research organizations, as well as Chinese people in Britain, and has had a significant impact.