On December 29, 2020, the 2nd China-India Mobile Phone Industry Annual Conference of CMA was successfully held in Shenzhen, China. In addition to the main venue in Shenzhen, China, the Greater Noida branch venue in India was also held simultaneously, and the whole process was broadcast live to the world.
This annual meeting is hosted by the Indian Chinese Mobile Phone Enterprise Association (CMA), and is sponsored by the Bangtai Supply Chain Group. Enterprise participation, including such as Transsion, MCM, DBG, Holitech, Midea, ICBC Mumbai Branch, Heshi, Tengsheng, Wall-E, Vesp, Li Debao, Aotong, Jinghe, EXGIO Voluntary Recycling, Jia Lai, Jade Bird, Quansheng, Chongxing Electromechanical, Guangyunda, etc.
In 2020, the new crown epidemic has swept the world, and the Indian market is also unavoidable. Coupled with factors such as sensitive Sino-Indian relations, mobile phone industry chain manufacturers investing in India have been affected in terms of production organization, personnel dispatch, logistics and transportation. At the meeting, the speakers analyzed the current status of the mobile phone industry in China and India, and conducted in-depth analysis and interpretation on a series of related topics such as the prospects and survival of the Indian mobile phone market, logistics customs clearance, human management, and investment environment. Accumulation, answering questions for Chinese-funded enterprises in India.
Chinese-funded enterprises persevere and hand over satisfactory transcripts
At the meeting, Yang Shucheng, Secretary-General of the Chinese Mobile Phone Manufacturers Association (CMA) in India, said that from the perspective of the global market, the electronics manufacturing industry between China and India is highly complementary. China has a very rich accumulation of manufacturing technology and experience, and a large number of China’s largest manufacturing equipment design and manufacturing capacity and upstream supply chain industry supporting capacity; India has a broad sales market and regional radiation market space, a large number of labor force demographic dividends and industrial capital investment appeals, and cooperation between China and India in the field of consumer electronics manufacturing , will simultaneously enhance the manufacturing development potential of the two countries.
Yang Shucheng, Secretary General of the Chinese Mobile Phone Manufacturers Association (CMA) in India
Chinese mobile phone brands and mobile phone industry chain manufacturers have deployed in the Indian market for several years. What is the current effect? Li Ge, president of the Indian Chinese Mobile Phone Enterprise Association and general manager of MCM, said that after years of hard work, the Chinese team has basically completed the layout of the Indian market. From terminal brands to upstream module supporting companies, there are sufficient local Indian companies. capacity.
According to reports, the sales of Chinese mobile phone brands account for two-thirds of the Indian market. In terms of supply chain, accessories suppliers such as modules, chargers, batteries, and other accessories suppliers, material suppliers, and equipment suppliers have completed the basic layout in India. And the service team cooperates with the Indian team more proficiently, and the product yield and efficiency are gradually improved.
Li Ge pointed out that everyone originally agreed that 2020 would be a year of harvest for the Chinese mobile phone industry in India, but the sudden outbreak of the epidemic caused manufacturers to be in a hurry. They did not start work for several months until May gradually resumed production. While organizing production, More anti-epidemic measures are needed, logistics costs have skyrocketed, and Sino-US and Sino-Indian relations have also had adverse effects.
Under this circumstance, Chinese-funded enterprises in India were not afraid of difficulties, thought of various solutions and countermeasures, and finally handed over a satisfactory transcript. Li Ge said that this year’s shipments of Chinese mobile phones in India increased by 9% over the same period, and various accessory suppliers and service providers delivered on time. After research, both sales and profits of Chinese companies in India have increased compared with 2019.
Li Ge bluntly said that this satisfactory report card is inseparable from the persistence and hard work of the Chinese compatriots who stayed in India. According to statistics, there are currently nearly 1,000 people in the Chinese mobile phone industry who stay in India. Having never returned to China, these people may not be able to go home during the Spring Festival in 2020 because their jobs are irreplaceable.
At the current time of the epidemic, CMA Mobile Association has not stopped during the current epidemic, reporting the epidemic situation in India and the production and operation conditions of Chinese-funded enterprises in India. CCPIT reports the actual difficulties of Chinese companies in India, and expresses the normal demands of Chinese companies through the association’s official account.
Liu Xiaodong, the representative office of China Council for the Promotion of International Trade in India, said that Chinese enterprises have invested more than 26 billion US dollars in India, and their infrastructure cooperation in India has exceeded 50 billion US dollars. About 1,000 Chinese-funded enterprises have invested and built factories in India, creating more than 200,000 local residents. jobs, pay considerable taxes, and make positive contributions to improving India’s infrastructure and promoting India’s economic and social development.
How to deal with the risks and challenges of the Indian market?
Although Sino-Indian cooperation can achieve a win-win situation, in 2020, the Indian government will introduce relevant restrictive policies and measures, which will make the situation of Chinese-funded enterprises more difficult.
Liu Xiaodong pointed out that since April 2020, the Indian government has revised the “Foreign Direct Investment” (FDI) regulations, which has had a huge impact on the new establishment of enterprises from neighboring countries, ongoing investment and mergers and acquisitions, changes in shareholders, and capital increase and production expansion. ; Subsequently, India introduced a series of policies to restrict Chinese-funded enterprises from participating in government bidding projects, restricting the import of Chinese products, etc. In addition, India stopped applying for visas, and employees of enterprises could not be rotated. Some Chinese-funded enterprises in India, including mobile phone companies, were in business. Management, human resources, cash flow, daily operations, investment and development are faced with many challenges.
While Chinese-funded enterprises continue to do a good job in epidemic prevention and resume production, they have to face the deterioration of the business environment, and the operating risks of Chinese-funded enterprises are increasing. Liu Xiaodong said that the China Chamber of Commerce is willing to work with the Mobile Chamber of Commerce to strengthen exchanges with relevant government departments such as Noida, reflect the demands of enterprises, assist in solving the problems and difficulties faced by enterprises, and actively promote the improvement of the operating environment of Chinese-funded enterprises.
At the conference, Long Qiang, Bangtai Supply Chain Group, expressed his insights on how to deal with the pie and pitfalls of investment in India. He shared India’s customs clearance process and precautions, E-WAY BILL’s operation process and precautions, India’s trade double clearance process and precautions, India’s tariff system and process and other information, and said that in many aspects of export to India , having a lot of document transactions may incur unnecessary omission costs, the extra excess of these costs is a major pitfall for exports to India.
For Chinese-funded enterprises going to India to build factories, the export of second-hand equipment is particularly critical. Long Qiang said that before second-hand equipment is exported to the Indian market, it must obtain the CEC (Chartered Engineer Certificate) certification mandated by the Indian government. CEC certification is carried out by an agency authorized by the Indian government to evaluate the condition, residual value, etc. of the equipment and issue an inspection report. The inspection and certification body will then issue a CEC certificate based on the inspection report. The CEC certificate is one of the necessary documents for the customs clearance of second-hand equipment. This certificate will be the necessary key for Chinese exporters to open the second-hand equipment market in India.
Wen Taikun, general manager of Holitech India, a mobile phone component manufacturing platform supplier, explained the investment risks of Chinese enterprises in the Indian market based on his personal experience and accumulation in the Indian market.
Wen Taikun first pointed out that the Indian government is currently promoting Made in India. On April 1, 2020, the new Electronic component investment incentive plan “SPECS” was launched, and a series of investment and tax preferential policies were also introduced to encourage investment in India, especially in the mobile phone manufacturing industry. In line with its abundant labor and demographic dividends, the Indian government strongly promotes a good investment environment such as localized procurement. The current international economic and trade environment is also conducive to India. The future development space is good, and it is easy to radiate to South Asia, Asia and the world. A good opportunity for supply chain manufacturers to enter the Indian market.
In dealing with investment risks in India, Mr. Wen said that he should correctly assess the political environment of the investment location, cooperate with qualified law firms, carry out targeted government research, avoid legal risks, improve the internal personnel management system, respect religious beliefs, and recruit personnel. Avoid different religious beliefs as much as possible, separate them reasonably, join associations and organizations of Chinese organizations such as CMA, exchange information in a timely manner, and get help quickly.
In addition, in terms of employment management, Xiao Jian, general manager of Renrui Talent India, also shared how Chinese-funded enterprises in India can make full use of the new trend of human resources management of flexible employment methods. In order to avoid the lack of time-consuming and laborious traditional employment model, Renrui India, established by Renrui Talents in India, provides flexible employment services for Chinese-funded enterprises in India.
After the introduction of the new FDI policy, Qiao Mengyu of Jilian Enterprise Service analyzed his thoughts on the changes in the investment environment in India and the consideration of fiscal and tax compliance. At the meeting, Hu Zhihui from Guangdong Midea’s HVAC Building Division, and Guo Qi, founder and CEO of Yoshi Technology, also delivered keynote speeches on HVAC issues and the Indian mutual gold market.
Next Blue Ocean Market – Vietnam
After the Indian market, where is the next blue ocean market?
Yueqi Bao Niuqiang, a business consultant of Yueyang, gave a keynote speech on “Investment Opportunities and Economic Situation Analysis in Vietnam”. He pointed out that Vietnam is the next market leader in Southeast Asia, fully replicating China’s reform and opening up, and seizing the opportunities of the “Belt and Road” initiative , the annual return on investment is as high as 22% or more, and the assets continue to appreciate at a high rate.
Niu Qiang said that Vietnam is an ideal choice for investors who want to expand supply chains from China to other countries because of its strategic location adjacent to China’s Guangxi and Yunnan, and investors can curb China’s existing supply chains interruption or delay. The open economic environment, advantageous geographical location, abundant labor resources and relatively low labor costs make Vietnam popular among international manufacturing enterprises.
According to him, the main smartphone manufacturers in Vietnam are located in northern and central Vietnam. Among them, Bac Ninh province has Samsung, Goertek, Chiehrong, Bourne Optical, AAC, and Yutong Packaging; Taiyuan province has Samsung, DBG, Shuo Beide, BYD; Beijiang Province, Luxshare Precision, Foxconn, Lens Technology, Linkage, Desai; Haiphong City, Heshuo, LG; Henan Province, Jiasda, Wistron; Yongfu Province, Xinwei Communication; Quang Ninh province has Foxconn; Nghe An province has Luxshare Precision, Goertek etc.
In this environment, it is convenient for Chinese-Vietnamese, Chinese-Indian, and Indo-Vietnamese enterprises to communicate with each other. At the meeting, CMA established the “Vietnam Chinese-funded Mobile Phone Enterprise Association”. Bridge, help enterprises to better deploy Vietnam, Nuggets this blue ocean market.