The 2025 International Consumer Electronics Show (CES) opened in Las Vegas on January 7, showcasing a dazzling array of innovative technologies, especially in the realm of artificial intelligence (AI). This event has been likened to a grand stage where cutting-edge ideas converge, offering a glimpse into the future of technology.

Recently, Jensen Huang, the CEO and founder of NVIDIA, engaged in dialogue with Shen Xiangyang, Chairman of the Board of the Hong Kong University of Science and TechnologyHuang pointed out that the Greater Bay Area stands out as the only locale globally that amalgamates mechatronics and AI technologies, creating unique opportunities for local enterprises to flourish and innovate.

At this year's CES, more than 1,300 exhibitors from China are seizing the opportunity to present their latest innovations

With an emphasis on technological advancement, globalization, and the integration of AI, Chinese companies are redefining their competitive landscape and moving beyond traditional confines to forge new paths on the global stage.

Breaking free from the sameness, striving for middle and high-end breakthroughs

In the months leading up to the new year, notions of "anti-involution" and "breaking the cycle" have become focal points in domestic economic discussionsParticularly notable was the Central Economic Work Conference in December, which addressed "involutionary" competition, hinting at an evolution of the previously discussed concerns related to inefficient competition.

Where there's a market, competition will naturally arise; "involution" is a byproduct of competition that is unlikely to diminish

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It is unrealistic for enterprises to wish for a tranquil, non-competitive landscape

However, on the flip side, dynamic and pioneering companies refuse to stagnate at a single level of competition; rather, they aim to transcend and innovate beyond such confines.

On December 12, Midea Group's Chairman Fang Hongbo articulated the sentiment in a discussion with Li Bin, the founder of NIOHe emphasized the importance of continually enhancing competitiveness and execution within the "involutionary" process, leading to Midea's motto: "Participate actively in the competition but dare to break free from it."

"To engage in this involution means striving against others in terms of cost, price, efficiency, and product offeringsTo break free requires innovation in products and technology

Aim for more than just survival; aim to break through barriers," Fang expressed.

In November 2022, TCL's founder and chairman, Li Dongsheng, also advocated for transcendence beyond mere cost competitionHe articulated that lasting competition is rooted in technological innovation, product development, and brand outreachDuring the TCL Global Technology Innovation Conference, he reaffirmed that in today’s market, price wars lead nowhere, only forcing companies into endless "involution." To outpace competitors, a focus on mid to high-end breakthroughs is crucial.

Over twenty years ago, domestic products were often characterized by a "low-end + low-price" strategyWhen Huawei entered the smartphone market in 2003, it relied on telecom operators to produce low-cost, customized phonesHowever, unfulfilled by merely being an ODM (Original Design Manufacturer), Huawei pivoted towards building its own brand and consciously targeting the mid to high-end market

A major milestone was achieved in January 2012 at CES when Huawei launched the Ascend P1 S, the world's thinnest smartphone at the time at a mere 6.68 mm thick, marking a significant leap into the high-end smartphone arena.

Similarly, DJI, also based in Shenzhen, transformed the perception of drones by making them accessible for general consumersFounded in 2006, DJI made waves in 2012 by launching the Phantom 1, the world’s first integrated aerial photography dronePreviously, the drone market was dominated by professional use, characterized by high costs and complicated functions that deterred regular consumersThe Phantom 1, priced for accessibility and easy to use, allowed everyday users to capture stunning aerial views of their livesEventually, DJI honed its edge in rotor chip technology, flight control, and safety measures, even achieving record flights under extreme conditions at high altitudes.

These cases illustrate that Chinese enterprises not only participate in the competition but can also break free from conventional norms, innovating and creating distinct values

This upward trajectory represents a movement toward fresh, innovative spaces.

Exceeding involution: Similar spirit, varied paths

Transforming from followers to innovators requires foresight in strategy and preemptive positioningCompanies must aspire to operate at global standards; resilience and the ability to navigate through cycles is vital for enduring growthMost importantly, a fearless and proactive spirit must be cultivated.

Companies like BYD and TCL epitomize this emergence from Guangdong's industrial baseOn November 18, 2024, at BYD’s 30th-anniversary event, Chairman Wang Chuanfu attributed the company's success to three "dare-to" philosophies: the audacity to dream, the courage to act, and the perseverance to endure.

TCL's new brand motto, "Dare to Inspire Greatness," unveiled at CES 2022, aligns with their journey into global markets

As TCL celebrates its 25th anniversary of globalization in 2024, its campaign theme focuses on the ambition to "Dare to Move the World Forward."

BYD has made significant strides in the electric vehicle sector, overcoming numerous challengesWhether it be through steadfastness in lithium iron phosphate battery technology or the remarkable evolution of its DM hybrid technology, BYD has flipped the narrative of being just another player in a competitive landscapeIn 2011, Musk himself had laughed dismissively at the mention of BYD as a competitor to Tesla, suggesting BYD's priority should be mere survival in the Chinese market.

Yet, unwavering in its commitments, BYD embraced its core beliefs and ultimately emerged from difficult times, exploding into success after 2020 with numerous core technologies like the blade battery and the fifth generation of hybrid DM technology

With cost advantages gained from vertical integration, BYD leads its industry's technological age.

If BYD's courage is marked by exploring uncharted territories, TCL's boldness lies in its determination to thrive against the grain within the fiercely competitive semiconductor display industry

In 2004, following the acquisition of Thomson's color TV business, TCL faced setbacks despite having a substantial patent portfolio focused on CRT displaysHowever, as the industry swiftly moved towards LCDs, the company underwent profound self-reflectionLi Dongsheng’s insightful piece "The Eagle's Rebirth" illustrated the necessity of reinvention.

Through this metamorphosis, TCL’s transformative venture into panel manufacturing with TCL Huaxing addressed the core component challenges for its television business, facilitating the entire industry's leap through challenges

This evolution allowed TCL to rise above mere cost competition, becoming an innovative technology manufacturing entity.

From 2018 to 2023, TCL invested significantly in R&D, leading to milestone innovations and solidifying its competitive stance against giants like SamsungWith breakthroughs especially celebrated in Mini LED technologies, TCL has reshaped high-end television technology competition globally.

As many anticipated the encroachment of OLED technologies, TCL persevered with its research into Mini LED technology, diversifying its product portfolio and ultimately launching a series of successful Mini LED television products that set industry benchmarks.

At the 2024 CES, TCL showcased the grand 115-inch Mini LED television, claiming over 20,000 independent control zones as a defining characteristic

The brand has solidified its status in big-screen technologies, encompassing a full range of product offerings from small devices like mobile phones and AR glasses to substantial televisions.

Highlighting TCL's innovative spirit, the company introduced AR glasses equipped with AI navigation capabilities that provide real-time route information in outdoor scenarios, enhancing user experience and interaction without excessive device relianceFrom smartphones to tablets, TCL has committed itself to delivering quality in consumer technology.

Additionally, TCL is making strides in AI, demonstrating various results at CESFrom their standalone AI companion robots to innovative air conditioning systems featuring AI functionalities, the company is effectively integrating advancements into consumable technologies that enhance everyday life.

Li Dongsheng remarked, “The rise of AI is driving industrial transformation; the upheavals caused by old and new technologies are profoundly influencing global economic landscapes

Despite the maturation of AI technologies and business models, there are likely to be explosive opportunities within the next three to five years.”

BYD and TCL, while distinct in their paths, share the spirit of courageous innovation and unwavering commitment to excellence.

Global brand, local operations

Since its inception in 1967, CES has acted as a global showcase for the evolution of consumer electronics, communications, IoT, and AIThe platform has seen many national brands emerge as global players.

Sony first exhibited in 1977, followed by Samsung in 1983. TCL made its debut in 1991, BYD in 1997, Lenovo in 2006, DJI in 2014, and Xiaomi in 2016, showcasing their growth in the global marketplace.

In the past decade, Chinese enterprises have gained a more substantial influence at CES, leading many international media outlets to refer to it as "China Electronic Show." The journey from "Made in China" to global brands is now evident.

Establishing a global brand necessitates winning over the American market

With established players like Samsung and LG dominating, new channel brands continuously fracture the low-end market spaceTech platforms are also at war with hardware brands regarding operating systems and content distribution.

In response to this challenging environment, TCL has strategized around "high-end advancements in large screens," shifting its focus to 75-inch and 98-inch premium televisions to capture greater market share and influenceCurrently, TCL's 98-inch televisions are the market leader in North America and have ranked second in television retail sales in the area for six consecutive years since 2019.

Building a brand goes beyond mere product offerings; it requires connecting emotionally with consumers and achieving a high level of localizationTCL has leveraged its partnership in sports marketing, collaborating deeply with the NFL to weave itself into the fabric of local living

By becoming an official partner of the NFL and interacting with communities and notable players, TCL has shifted from being merely an outsider to becoming a part of mainstream American culture.

This localization strategy has not only enhanced brand identity but has also positioned TCL with leverage in negotiations across channels and supply chains.

Currently, TCL has formed partnerships with over 40 top global sports events, organizations, and teams, extending far beyond the NFL into collaborations with global powerhouses like FIBA and major football clubsTCL has been an official partner of the Copa America, providing VAR equipment and technical supportIn preparation for the 2024 European Championship, TCL has signed agreements with five participating teams, with Spain triumphing over England in the finals.

This trend isn't confined to TCL alone; more Chinese firms are actively sponsoring international sports events

Among the 13 official partners of the 2024 European Championship, five are ChineseIn October 2024, Lenovo announced its entry as an official technology partner of FIFA, covering the men's World Cup in 2026 and the women's World Cup in 2027.

The performance of companies like TCL at CES is reflective of a broader movement, showcasing China's entry into "high-level global competition." This evolution encompasses everything from product exports to international cooperation in industrial development, transitioning from Chinese industry chain leaders to influential players in global markets.

Strong roots foster robust growthThese roots lie in technology, which is a necessity for Chinese manufacturing to navigate its journey of transcendence.

With enhanced innovation capabilities, optimized product structures, and elevated brand value, China's manufacturing landscape is undeniably moving towards breaking through previous limitations, creating abundant opportunities for itself on the global stage.