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China technology
TechInnovation

Trade war is spurring China’s hi-tech innovators into overdrive

  • Trump’s campaign to contain China’s rise has galvanised its hi-tech sector to accelerate design and invention

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The southern coastal city of Shenzhen, in Guangdong province, is China's hi-tech capital and home to some of the world’s most innovative start-ups. Photo: Shutterstock
Bloomberg

In Shenzhen’s glitzy financial district, a five-year-old outfit creates a 360-degree sports camera that goes on to win awards and draw comparisons to GoPro. Elsewhere in the Pearl River Delta, a niche design house is competing with the world’s best headphone makers. And in the capital Beijing, a little-known start-up becomes one of the biggest purveyors of smart watches on the planet.

Insta360, SIVGA and Huami join drone maker DJI Technology among a wave of start-ups that are dismantling the decades-old image of China as a clone factory – and adding to Washington’s concerns about its fast-ascending international rival. Within the world’s No 2 economy, Trump’s campaign to contain China’s rise has spurred its burgeoning hi-tech sector to accelerate design and invention.

The threat they pose is one of unmatchable geography: by bringing design expertise and innovation to the place where devices are manufactured, these companies are able to develop products faster and more cheaply.

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“Ninety per cent of the world’s headphones are produced in China, 90 per cent of China’s headphones are produced in Guangdong [province], and 90 per cent of Guangdong’s headphones are made in Dongguan,” said SIVGA co-founder and product chief Zhou Jian, an 18-year audio industry veteran who has done work for global brands like Sennheiser Electronic, Sony and Bose.

His company is based in Dongguan because “Dongguan’s industrial chain is near perfect”, he said. Zhou estimated that there are hundreds of specialist factories in the area focusing on a particular component, such as screws, and his network of contacts among those suppliers has been invaluable. It was “support from these good friends” that got SIVGA, short for Sound Impression Via Genuine Artwork, off the ground.
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