Innovation, sustainability driving growth
Harman projects increased opportunities in China's auto industry
A1: China has experienced tremendous changes during the last 70 years and achieved remarkable economic prosperity since it was established. The fast speed of economic growth and remarkable social development have astonished the world, especially once the reform and opening-up policy was introduced. China's economic policy changed from self-reliance to integration into the global economy by joining the WTO. This transformation freed up China's labor market while accelerating the pace of cooperation and trade with other countries. Following this move, China has attracted foreign investment, advanced technologies, management know-how, and human capital.
Harman is a beneficiary of China's open door policy and fast economic growth. Our annual sales exceeded $1 billion in the Chinese market in 2017, up from about $100 million when Harman China was launched 10 years ago.
A2: With China's deepening reform and expanded opening-up, we see increased opportunities for Harman to serve China's growing auto industry. Over half of Harman's orders come from the auto sector. Our company has maintained healthy and sustainable growth and we are a beneficiary of the policy of shifting to high-quality growth. We believe that quality growth is key to sustainability and that innovation and people development are critical to the China dream.
A3: We strongly believe that strengthening intellectual property protection, promoting cooperation that aims for win-win results and sharing development opportunities with the rest of the world is good for China in the long run. This will further attract foreign investment and cooperative business opportunities.
A4: It is very encouraging to see China's increased commitment to high-quality manufacturing and technology innovation. We believe investment in research and development is absolutely critical for the realization of the China dream.
Chinese companies need to invest more in R&D and people development instead of quick profit. Local companies need to pay more respect to intellectual property rights and double their own efforts in technology development. I think Harman is in an ideal position to help Chinese companies to develop new products with advanced technologies in order to move up the value chain. We are committed to working with Chinese partners on joint development based on mutual benefits.
A5: We are pleased that the Chinese government is committed to raising the efficiency of government services, which will help create a business environment featuring fair competition, and further unleash market vitality. This directive signifies the value the government is placing on supporting entrepreneurship and private enterprises. We look forward to experiencing real improvement in our daily operations. We believe that cutting red tape and enhancing work efficiency will have a tremendously positive impact on both China's and global economic growth and contribute to the success of Chinese companies.
