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Speech by Mr. Zhao Bin, Senior Vice President, Qualcomm Incorporated, at the 9th IRMCL





Vice Chairman Zheng, Minister Lee, Minister Ma, Distinguished guests, and friends,


Good afternoon. First, on behalf of the Qualcomm Incorporated, let me express my congratulations on the opening of the Roundtable and also thank the host for giving me this opportunity to speak and to share with you the experience of development and investment in China, as well as our view on bringing in and going global. The Qualcomm Incorporated is an innovation-centered and leading company in wireless. It has cooperated with China in the Chinese market for many years. 20 years ago it entered the Chinese market and we have seen some twists and turns in cooperation with Chinese companies. However, we have overcome with these difficulties and have adopted new strategies and worked with our Chinese partners to build a healthy system for wireless technologies, and among the top 10 smart phone producers, over half of them are Chinese companies, and I think this has everything to do with cooperation with them, so we are proud of that.


Now many previous speakers have shared with us their views from political and policy perspectives and I wish to share with you the experience of my company as an example. As I said, the core strategy of my company is to focus on China to share our wisdom and to achieve innovation. In the early years of our presence in China, we have started building healthy industrial chain here. In last month we participated in the China-India forum and my company has got an award by the forum which was selected and awarded by Chinese and some global companies, which shows that in developing the India and Southeast Asian market we have made our own contributions actually supported by my company. Chinese companies have worked very well in developing countries such as India and Latin America; they have also signed cooperation agreement with leading wireless companies in the world.


And ensuring that there are advanced equipment and technologies have had a share in that market of the developed counties, we have helped lay a solid foundation for the outstanding performance of Chinese companies in the markets of developing countries, and this is also contribution of my company. It is also a result of close collaboration between my company and our Chinese counterparts.


Let me give one or two examples, you know in China you have the most advanced and largest chip makers, and Qualcomm has helped the companies to produce high performance microchips on a large scale, and we have helped it to break in to new research areas by establishing a joint venture together with ZTE International, this has helped to leap frogs Qualcomm corporations with the Chinese company in question. I want to emphasize that, this is not just a commercial relationship, because we offer added value for example by partnering with Qualcomm the Chinese microchip maker can go on to provide microchips to other Chinese producers, all of it is enabled by the technological support offered by Qualcomm.


They have thus been able to expand their production and customer base, and early this year, Qualcomm together with the government in the province of Guizhou established a joint venture on choosing semi-conductors and the chip. The significance of this partnership is that, Qualcomm has shared its core technology with its joint venture in China, and the design and manufacture will be conducted by the local Chinese team, who will eventually manufacture server microchips that meet China’s IT standards and this has been praised by leading officials in the relevant Chinese ministry as a good example, for navigating the water of the New Normal of the Chinese economy and of China’s new development concept and such partnership will benefit the wider community. For example, we have established innovation center in Shenzhen and a testing center in Shanghai. The Shenzhen innovation center has the world’s top class laboratory, the other such laboratories located in Qualcomm headquarters in the United States, this one being placed in Shenzhen China, so such partnership will hope to help our local partners to do better innovation and to help China become a major developing nation and a global leader in innovation.


The Shanghai testing center that I mentioned was established in September this year, now for a very long time, Qualcomm has not been in the business of manufacturing hardware, but echoing the call of the Chinese government, we have begun to do so in China, in conjunction with our global posture, and the needs of China. In addition to that, we have partnered with Chinese universities and colleges to support relevant researches, and training of specialized personnel and we have set up water pools to help kick off business startups in China and to fulfill our social corporate responsibility, of course to help China restructure its economy. We still have a lot more to do as a multinational. Let me share with you some of Qualcomm experience in other overseas markets.


Firstly, in our view, that is vitally important to protect intellectual property. It is important to adapt a national strategy for protecting IPR and we hope the Chinese government will step up efforts to encourage Chinese enterprises to respect intellectual property. Qualcomm will do its utmost to support.


Meanwhile, it is also important for companies to pay attention to and adjust themselves to geopolitics. Regarding the China-US trade relationship, many large multinational corporations have some concern about the future development of America after the new US president was elected. We pay special attention to the policies of the new US government, such as American First, protecting interests of local American, promoting the return of the manufacturing industry and increasing employment. Hope these policies will not impede our development in China. At the same time, we recommend the Chinese side, especially the Chinese government to create a more stable and predictable policy and business environment for multinational corporations to develop in China, especially in such aspects as market access, fair competition and taxation. Qualcomm promises that it will make efforts to contribute its share to the building of a balanced and harmonious China-US trade relationship.


We will continue to devote ourselves to the development of China's mobile communication and IC industry by investing in new technologies and licensing our new inventions and providing the most advanced products to Chinese producers so as to contribute to China's strategy of bringing in and going out for the development of an innovation-centered economy by cooperating with our local partners in China to jointly explore the domestic and international markets. We sincerely hope we can continue our cause in China, explore new emerging mobile technologies and bring new experience of lifestyle to human beings. Thank you.