Trump came to us whether the company will withdraw from the China?
Inauguration ceremony of President Trump Trump's inauguration, he signed a presidential decree, including announced its withdrawal from the trans Pacific Partnership Agreement (TPP), signed the "Mourinho limit order", starting the Mexican border wall, threatened to impose high tariffs, that he is to fulfill the campaign "America first" protectionism pledge. Another campaign promise is to bring American companies back to the United States, especially to bring manufacturing back to the United states. This "Trump effect", along with China's economic growth slowed in recent years, the new normal, so many people are asking: after the rise of the United States, the United States, whether the company is to withdraw from China? I think this is a completely wrong judgment.
The American industrial giant GE (GE) global senior vice president, President and CEO of GE China segment small tassel recently wrote, it expounds to President Trump "America first" protectionist policy point of view, but also to respond to the outside world for about GE in China business development trend. In the Trump era, GE's commitment to China is still.
Globalization based on production services and arbitrage trading is over. Today's globalization is all about market access. Where there is growth, companies will go, which is the meaning of globalization today. Tough rhetoric, building walls, trade tariffs and other acts of their own can not completely move back to the United States jobs.
We believe that the success of the American economy depends on its leadership in the global economy. GE has $80 billion in revenue from outside the U.S. market, so the growth in the United States outside the market is particularly critical for GE. In the current global protectionism in the environment, we can not rely on the government to drive business growth, we must rely on their own in the world today to find the direction and path forward. The best global company in the past has mastered the process of cross-border management and the allocation of resources to produce the highest return on the local skills, GE is undoubtedly an expert in these areas.
GE localization process in China will be more faster. In the future, sustained growth will require us to have a strong local presence in the global business landscape. GE will always be a strong American manufacturer, but our 420 plants in the world will give us a lot of flexibility. We are no longer chasing low wages, but the use of these plants to obtain market access, because only a local company, our business will not be shut down protectionist policies.
We will double in china. After years of development, China has become the world's second largest market outside the United States GE. In 13th Five-Year Chinese urbanization, and health care, clean energy, Belt and Road Initiative, "Internet plus" and "Chinese manufacturing 2025" represents the future development opportunities, China remains the world's best investment. GE Chinese three strategic comprehensive localization, global partners, full digital, is to seize the China a new round of market opportunities, together with the growth of economy and Chinese China partners, we China investment is long-term, development in China is more unyielding.
In order to adapt to the changes in the current environment, we must transform. Today, China's market environment has changed a lot compared to the previous, in terms of GE, the key to sustainable development is to adapt to changes in the market, rather than let the market to adapt to the company. Instead of complaining about the Chinese investment environment than before, not to roll up sleeves to strain.
GE is transforming from a diversified enterprise into a digital industrial enterprise. Transformation process, is bound to involve business restructuring, including the sale of 60% of the world's total revenue accounted for the financial business, the establishment of the digital industry business group,
Acquisition of Alston, mergers and acquisitions of oil and gas business, including the recent GE global R & D center strategic transformation.
Before the Internet spread on the GE global R & D center of mass layoffs, the fact is, because of significant changes in strategic transformation of GE and business combination, but also need to adjust the direction and focus of research and development, we will reduce the non core areas of research and development, increase investment in research and development in the new field of advanced materials, artificial intelligence, robotics and machine learning etc. and to support the long-term development of GE in the Chinese. Of course, the reorganization inevitably involves some employees leave or transfer, leave is sad, but the transition is the only way which must be passed for enterprise development, long-term investment in research and development to ensure that GE is always standing in the forefront of innovation and industry, key and positive for the future.
Where there is growth, companies will go, which is the meaning of globalization today. Tough rhetoric, building walls, trade tariffs and other acts of their own can not completely move back to the United States jobs.
