Xiaomi has been focusing on its foreign business so much that it is starting to lose some grounds in China. No doubt, the Chinese market should be the “most important” for Chinese companies right now. No one can tell the next Chinese company that will work in Huawei’s footsteps. If that happens, the Chinese market will be their major hope for survival. According to Lei Jun, Xiaomi founder, and CEO, Xiaomi has a great responsibility to promote Chinese devices. However, he also claims that the company’s bigger responsibility is to promote localized devices. This means that it will promote “local content” in any market it exists.
According to him, the entire smartphone industry is promoting localized devices on a large scale. Under this wave, Xiaomi has a very large responsibility to promote localized devices. In addition, Lei Jun also emphasized, “We must comply with the local policies and regulations of various countries, and we must be excellent local corporate residents”.
Xiaomi has already demonstrated its presence in markets such as Indonesia and India. However, the Chinese manufacturer is still skeptical. It needs to gain more ground in China. Although Lei Jun’s statement did not mention Huawei, Xiaomi’s promotion of local devices is most likely as a result of Huawei’s situation in recent years. There are hundreds of components used in smartphones. If the core technology is completely dependent on foreign companies, it is obviously risky.
On this issue, while ensuring quality, using as many Chinese components as possible, not only ensure the safety of supply but also foster the Chinese industrial chain. From the perspective of Huawei’s experience, Xiaomi will not be the only Chinese manufacturer to increase its localization rate. We are quite certain that other Chinese smartphone brands will quietly make similar moves. This will certainly increase the competition in the Chinese market.
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