During the morning we visited an important OEM manufacturer of shoes: Huajian.
During our visit we were told that as the manufacturing costs are increasing in China, the company has chosen to move a big part of its production in Ethiopia, Africa, as wages are lower and there are no taxes for exporting to Europe.
Huajian is building a huge project in Ethiopia, basically a city built around the manufacturing site comprehensive of hospital as well as a symbolic Chinese wall, with the aim of covering all possible needs of their workers. Which, by the way, will be Ethiopians!
During our short visit, we also had the chance to assist to a singing performance of Ethiopians employees, who are currently learning the job in the main production site in Shenzhen: once finished the training program they will go back to Ethiopia and teach what they have learned to their colleagues.
While talking about this company we also pointed out how strong is the sense of community in China and how families still share common room and life, while in our countries we are living more and more as singular individuals. As a joke we said that one could define the current state of “development” of a country by the number of clinics dedicated to the elderly: therefore if you look at Switzerland society, which struggles to keep elderly integrated, has a lot of rest homes, whereas China doesn’t have any. In my understanding though, also in China it is getting more difficult to be a large family, since in order to find work long distances need to be covered and people from rural areas simply can’t commute everyday as the journey is too long. Companies like Huajian, which had almost 20’000 employees, have built dormitories directly behind the company, in order to have workers coming from rural territories which are distant and poorly connected.
Other, consequent, topic of discussion was what is being done in Ticino for its development beside the opening of new rest homes. And there was no positive feeling… and no propositive ideas either.
We had quick lunch in a noodle store. Not easy eating noodles with the sticks, but I managed!
In the afternoon we met Huawei, the company that we all know because of mobile phones. We learned that the company has many other branches, the base of it being hardware and software for networking. In Switzerland for example Huawei has collaborations with Swisscom and Sunrise in order to develop the internet connectivity for fixed lines in the first case and mobile for the second. I don’t know if it is true but our speaker implied that the recent overtake of Sunrise on Swisscom regarding the best mobile network in Switzerland was related to their collaboration.
The expansion of Huawei in the US is of course limited, because of US protectionism, but also because being a Chinese company a strong involvement of the government is taken into account and of course data networks, datacenters, security systems are sensitive matters that an independent state struggles to share with another one.
As we weren’t satisfied yet in the evening we went to an event organised by Swissnex China, Venture Leaders: China – Swiss innovation night, where Swiss startups looking for partners were presenting their ideas and products. There were 10 startups presenting their idea in a short presentation during 2 minutes each: here the list.
While at this link you may find a .PDF file with the executive summaries of each company.
Here below few pictures I took of the incredible Intercontinental Hotel