Recruiting in China

While China is known as the "world's factory," seemingly capable of making everything, semiconductor chips have been conspicuously absent on the "Made in China" list.

Statistics show that China's chip imports in 2013 grew 20.5 percent to reach 231.3 billion US dollars, exceeding imports of other goods, including crude oil. In fact, they have consistently topped China's import list over the past decade.

Considered "the heart" of all electronic devices, chips are vital for developing the broader information industry. Experts have called for more government support and industry innovation, as prolonged underdevelopment of China's chip sector could derail the country's economic upgrade and blunt its competitiveness.

SMALL CHIP, BIG BUSINESS

Chips are widely used in computers, consumer electronic devices, automotive electronics and Internet communications. Though small in size -- and getting smaller as technology advances -- chips are high in value and represent an important link in the information industry chain.

"There are several stages in the production of a semiconductor chip, including its design, manufacturing, assembly and testing," said Zou Xuecheng, a professor of semiconductor engineering at Wuhan-based Huazhong University of Science and Technology.

A semiconductor chip with production value of 1 US dollar translates into 10 US dollars in growth for the related information industry, and adds 100 US dollars to a country's Gross Domestic Product (GDP), Zou said, citing IMF research.

"With China's consumption of chips exceeding 200 billion US dollars, it means 20 trillion in GDP growth for the world's economy," Zou added.

However, China has failed to make gains in the chip production process. Though China's semiconductor use accounts for more than half of the global market, the country is overly dependent on foreign chip suppliers.

The market share for chips made by domestic manufacturers is merely 10 percent in China, according to Li Ping, vice general manager of XMC, a semiconductor manufacturer based in Wuhan.

Though 77 percent of cell phones sold on the global market are made in China, only 3 percent of chips in those phones are from Chinese suppliers, Li added.

According to a research report issued last year by the State Council, China's cabinet, China has the capacity to produce around 1.2 billion cell phones, 350 million computers and 130 million color TVs a year. Yet, Chinese companies have been reduced to worker bees for the international companies that take the lion's share of profits through patent fees on chips.

BOOM, BOON

China's industry insiders lament being mired in a vicious circle: companies cannot gain a competitive edge and increase profits without owning key technologies, while meager profits limit their ability to invest in research and development.

Countries such as the United States and Japan have long attached great importance to the semiconductor industry, promoting it as a strategic sector with huge research expenditures funneled into the field.

The world's leading chip makers spend lavishly on research and expanding their production capacity. Statistics show that in 2012, Samsung invested 14.2 billion US Dollars and Intel spent 12.5 billion US Dollars.

Those amounts dwarfed what Chinese players can earmark for chip research. The fledgling industry is faced with scanty resources, even with government help. Semiconductor Manufacturing International Corporation (SMIC), China's biggest chip maker, is only able to spend 100 million US dollars on research and production expansion a year.

Financial aid alone, however, cannot pull Chinese chip makers up, as the sophisticated industry also calls for top talent.

"The key is an abundance of talented researchers, but we have seen an exodus of talent in recent years," said Yang Zhiyong, general manager of the electronics division of Wuhan-based FiberHome Technologies Group.

Yang Chunshi, professor at Xiamen University, said research institutions should focus on developing technologies that are suitable for industrial applications instead of a blind pursuit of high-end technology. He added that companies should also take the initiative and embrace new technologies, as dated production modes spell trouble.

Ma Xinqiang, Chair of China's HGTECH, believes that with patience and persistence, China's chip industry can thrive as the ongoing "Third Industrial revolution" powered by the mobile Internet, the Internet of Things and cloud computing will unleash great potential.

Experts share Ma's optimism. They predict that as the volume of China's domestic chip industry is expected to reach 160 billion US dollars next year, the industry will see more positive changes.

Chinese smartphone manufacturer Xiaomi Inc. is talking to investors and banks to raise about 1.5 billion U.S. dollars in its fifth round of financing, local media reported.

The fundraising target is roughly 1.5 billion U.S. dollars, which would be the largest investment (excluding IPO) raised by any Chinese company backed by venture capital, financial news website Jiemian of the Shanghai United Media Group reported on Saturday.

One of the investors is said to be DST Global, a London-based investment firm that focuses on Internet companies, Jiemian said in the report.

Xiaomi, currently the world's third-largest smartphone maker after Samsung and Apple, will use most of the money raised to develop video content for Xiaomi TV, according to the report.

Xiaomi has said it will spend about 1 billion U.S. dollars to expand its own TV content. It hired Chen Tong, former editor-in-chief of popular news portal Sina.com, to revamp its Internet video business.

Xiaomi founder and CEO Lei Jun said that Xiaomi shipped 18 million smartphones in the third quarter, an increase of 18 percent from the previous quarter.

For the first nine months, Xiaomi, whose name means "millet" in Chinese, shipped a total of 44 million units, Lei said.

Xiaomi was founded in April 2010 by Lei and his friends in Zhongguancun, Beijing's technology hub, which has been called "China's Silicon Valley." Xiaomi's first smartphone debuted on Aug. 16, 2011.

In another development, Hong Kong-based South China Morning Post reported on Thursday that Xiaomi Inc., which is valued at 50 billion U.S. dollars, is aiming for an initial public offering as early as next year.

"Xiaomi is one of the large Chinese technology companies that would tap the IPO market next year," the newspaper quoted a source as saying. "Hong Kong investors seem to be more receptive of hardware than software firms, making the city the likely IPO destination for Xiaomi."

The current market appetite for technology firms with a clear growth outlook, such as Alibaba Group, is an incentive to do it soon, the newspaper said.

Xiaomi is seen by investors as the most likely candidate to become the next "Chinese IT legend" after Alibaba, which completed a 25-billion-dollar IPO in the United States in September.

Global market researcher International Data Corporation (IDC) said in its latest report that Xiaomi jumped onto the list of top 5 manufacturers for the first time at the number 3 position thanks to its focus on China and adjacent markets, which resulted in triple-digit year-over-year growth.

In the third quarter of this year, Xiaomi's global market share stood at 5.3 percent, following Samsung's 23.8 percent and Apple's 12 percent, according to IDC.

There has been a surge in the use of foreign language apps accessed by smartphones, according to a survey, with women in particular keen to be taught via their handset.

The study, carried out jointly by the country's leading Internet education provider Hujiang.com and the online education platform of Baidu Inc, shows the most popular customers are the female, college students or white-collar workers, under the age of 30?a profile which accounted for 80 percent of users of the services.

In a sizeable snapshot of 25,000 users of Internet-based education products, 58.4 percent were women.

"The young people are generally keen to improve themselves through multiple ways and resources," said Dong Xiaoliang, director of mobile business department of Hujiang.

Some 44.7 percent of mobile education users were based in second-tier cities, 26.5 percent came from first-tier cities, and nearly 30 percent subscribed from third- and fourth-tier cities.

The survey found that laptop or computer-based online education was prevalent in cities throughout the country and included a wider cross-section of society, said Dong.

"Compared with other areas, first-tier cities on the whole have more abundant educational resources available, both online and offline.

"Resources in second-, third- or fourth-tier cities are accessed from more sources."

Foreign language studies were by far the most popular type of course, with a dominant 89.3 percent of respondents, followed by those accessing courses in lifestyle and hobbies (13.8 percent), and career certification and examination (13.5 percent).

The report also revealed many were not deterred by cost, with nearly one-third of those surveyed saying they would happily spend 500 yuan ($82) or above, while 27.3 percent chose free offerings.

"In recent years people have got into the habit of making more payments for using their smartphones, helped by the increasing popularity of e-commerce apps," Dong said.

About half of those surveyed said they used their educational apps before they went to bed, with 38.8 percent gaining access to their course riding in an automobile and 37.6 percent during their lunch break.

The average weekly time studying on their mobile device was five hours, the report said.

A 26-year-old woman respondent named Qi Na was included in the study.

"Smartphone-based education has made studies more convenient and efficient," she said.

"For example, I can read English news through my mobile phone when I wait for a bus or take a break from work. And I don't have to take a book with me every day."

Li Xuhui, founder of the nonprofit online education website Kuxuexi, said smartphone-based Internet education is appealing especially to people who need to study at fragmented times.

"The innovation of Internet technology and the prevalence of PC and smartphones allow people to learn whenever they want and wherever they are," Li said, adding that mobile Internet education will become more common.

According to the China Online Education Report 2013-14, released by Internet consultancy iResearch Group, the online education market in China was worth around 84 billion yuan in 2013, a 19.9 percent increase on the previous year.

The latest industry estimates suggest the number of online learners is expected to grow to 120 million over the next three years.

Xiaomi Inc has become the world's third-largest smartphone vendor and taken the lead in China since entering the market only three years ago, research firms said yesterday.

Xiaomi won over consumers by offering them inexpensive models but with high-end features and selling them online. Globally, Xiaomi had a market share of 6 percent in the third quarter, just behind Samsung Electronics and Apple Inc. Samsung dominated with 25 percent, but down from 35 percent a year earlier while Apple fell slightly to 12 percent, according to Strategy Analytics, a US-based research firm.

"Xiaomi was the star performer," Strategy Analytics' Executive Director Neil Mawston said in a statement.

Other research firms including IDC and IHS iSuppli also put Xiaomi as the No. 3 player in the global smartphone market, ahead of domestic rivals Lenovo and Huawei.

Beijing-based Xiaomi expects to sell 60 million smartphones with revenue of 70-80 billion yuan (US$11-13 billion) this year after selling 26.1 million units in the first six months.

Evergrande Group, a Chinese private conglomerate involved in property development, agriculture and sports, launched an infant formula on Monday following its acquisition of New Zealand dairy producer Cowala Dairy Ltd. last month.

The Guangzhou-based group also plans to build a dairy manufacturing base in China to tap the lucrative market. Chinese consumers have preferred to buy foreign brands following a series of tainted milk scandals in recent years.

The infant formula product under the name Cowala will hit the market nationwide soon, according to an announcement at its launch ceremony on Monday.

The Evergrande Group, which runs China's most successful football club, Guangzhou Evergrandetaobao Football Club, appointed three players to serve as global promotion ambassadors for Cowala infant formula on Monday.

The group, established in 1997, made its fortune through real estate development, but has been diversifying its business in recent years by investing in agriculture, cultural tourism, dairy, livestock and sports.

The group's sales in 2013 reached 100.4 billion yuan (16 billion U.S. dollars), while sales in the first eight months of 2014 reached 90 billion yuan, according to its official website.

The China-made Range Rover Evoque rolled off the production line of Chery Jaguar Land Rover's plant in Changshu, Jiangsu province.

The first China-made Range Rover Evoque rolled off the production line of Chery Jaguar Land Rover's plant in Changshu, Jiangsu province, on Oct 21, signaling the joint venture is ready to begin full business operation. It is also the first full-scale automobile manufacturing facility of Jaguar Land Rover outside the UK.

The 10.9 billion ($1.78 billion) yuan plant, a joint venture between Chinese automaker Chery Automobile and Jaguar Land Rover, is designed to produce 130,000 vehicles each year.

China has been Jaguar Land Rover's largest market since 2012, accounting for almost one-fourth of its sales globally, and one in five Range Rover Evoques has been sold to China since its debut in 2011.

Locally made Evoques will reach the market in early 2015 and the automaker will make public their prices at that time.

Addressing questions whether the locally produced vehicles are equally good as those manufactured in the United Kingdom, president of Chery Jaguar Land Rover Chris Bryant said quality is the joint venture's No 1 objective.

"Chery Jaguar Land Rover remains committed to delivering excellence in its quest to lead the Chinese premium automotive industry through its historic British lineage, world-class quality and unique shared value approach," he said.

As a major milestone for the first Sino-British premium automotive joint venture, the opening ceremony also signifies the dawn of a new era for the Chinese premium automotive industry.

Yin Tongyue, president and CEO of Chery Automobile, said, "I strongly believe that Chery Jaguar Land Rover has a promising future and will provide premium auto products that exceed every Chinese consumer's expectations."

Dedicated to becoming a leading enterprise that inspires excellence in the premium automotive market in China, the joint venture has taken several steps to ensure it can provide top-of-the-line quality for its customers. These include establishing an industry leading quality control system, an advanced R&D Center and a nationwide sales network.

Equipped with top international standard press, body, paint, trim and final shops - along with an engine plant - the Changshu plant is "one of the world's most advanced and efficient manufacturing facilities", the company said.

Among other facilities, it has 306 robots that undertake 85 percent of the welding work and 20 percent of the finished models undergo full-vehicle checks at the plant's quality center, according to the company.

Bryant said another critical element to ensure quality is to make sure employees understand the quality the automaker wants to deliver.

"I will give you an example. Our first workers at the plant were hired in June 2013, more than half a year before we started operation, so that they can understand the quality requirements," he said.

Workers in key positions have received three months training in the UK and 95 percent of all workers in the plant have at least five years working experience, the company said.

Bryant also said local suppliers are selected according to the same standards as those in the UK.

"The Changshu plant is a significant milestone in our commitment to the Chinese market. We are small, but China is huge," said Ralf Speth, CEO of Jaguar Land Rover at the plant's opening ceremony.

Success story

Jaguar Land Rover sold 92,300 vehicles in the first nine months of the year in the Chinese market, a 38.7 percent surge from the same period a year earlier.

Now that the plant is fully operational, many in the auto industry believe the British premium brand will further close its gap in sales with the three German marques.

However, Bryant said sales alone are not the joint venture's focus. "Both volume and profit are the output of a successful business. And we will be successful when we deliver to customers what they desire and deserve. So we focus not on the sales but on improving customer satisfaction."

Chery Jaguar Land Rover has established a superlative operation and management structure, with a highly practical and efficient management team that is fully committed to realizing the joint venture's long-term development in China, and to fulfill consumer expectations and needs with its products and services.

Through its jointly managed Integrated Marketing Sales and Service organization established earlier this year, Chery Jaguar Land Rover will promote efficient operation of marketing, sales and after-sales service work, to ensure customers enjoy the best possible relationship with the joint venture, as well as establish its position in the forefront of the premium automotive market in China.

Zhu Guohua, deputy president of Chery Jaguar Land Rover, said the joint venture has built a network of 243 dealerships nationwide, and will add more to extend excellent sales and after-sales services to Chinese customers.

In addition to the Range Rover Evoque already in production, Zhu said that by 2016, the plant will be producing three Jaguar Land Rover models. He added the plant would also produce joint venture brand models in the future.

Therefore, the joint venture is investing in making new breakthroughs in product research and development with the construction of a research and development center.

Staffed with more than 290 experienced product development engineers, the center covers product planning, project management, process, system and engineering applications, trial production, testing for finished vehicles, product localization design, improvement of emission and engine performance as well as new energy development.