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Former chairman of CSR: things about cooperation with Siemens

"Introduction: in the international market, the competitive and cooperative relationship between CSR and Siemens is most vividly demonstrated. In the West Asian market, the two sides sincerely cooperate and jointly bid to defeat their competitors at one fell swoop; the same process has been followed, and the cooperation between the two enterprises in New Delhi, India is invincible. However, the vows of eternal love at the celebration are still lingering. In the markets of Malaysia and South Africa, the two enterprises have been locked in a tight fight and are in darkness I'm afraid the scene of champagne and fists will continue. "

in the 20 years before and after the turn of the new millennium, a group of lively lambs suddenly appeared on the vast grassland of the world market economy. They are simple, kind, childish and lively, as if everything on the grassland is so beautiful. They are unprepared and even willing to get close to and coexist peacefully with wolves. These sheep are numerous Chinese enterprises

some of the world's top 500 enterprises from Europe and the United States are old wolves who have fought on the grassland of market economy for more than 100 years, and have become the objects of many Chinese enterprises. Therefore, the wolf and the sheep jointly performed a river dance that is sometimes beautiful and sometimes joys and sorrows

politics led to a joint venture with Siemens

the ferocity and cunning of the wolf in the fable left a deep impression on people. However, reading the wolf totem written by Mr. Jiang Rong has completely changed my poor view of wolves. In fact, the wolf is a very strange animal. It combines strong personal heroism with absolute team spirit. The king's momentum and cosmopolitan mind are amazing

I fully agree with some viewpoints in the wolf totem. The decline of China for a century is closely related to the gradual decline of the nomadic spirit based on the strong nomadic character, especially the wolf character. China's traditional farming culture, which works at sunrise and stops at sunset, has greatly restricted China's pace of development against the background of the rapid development of modern science and technology and the high integration of the world economy

CSR group is a young and old enterprise. It was established in 2000. Among the more than 20 subsidiaries, the youngest subsidiary has a history of more than 50 years, and six subsidiaries have a history of more than 100 years. In the face of such an old state-owned enterprise with many problems, the first problem to be solved must be the concept problem. So, at a cadre meeting of the whole group, I recommended the book wolf totem to you

German Siemens was founded in 1847. After mergers and acquisitions, restructuring and integration, it has been honed in the storm of market economy. In the late Qing Dynasty, Siemens came to China to explore the market. After the reform and opening up, Siemens was also one of the first foreign enterprises to enter China. We have to sincerely admire the pioneering spirit and strategic vision of this century old store

the cooperation between CSR group and Siemens has gone through 20 years. The two sides have established a joint venture in Zhuzhou. The joint venture has not developed well. The two sides have disputes from time to time, but they never abandon it

apart from the joint venture, the cooperation between CSR group and Siemens is not in full swing, but it can also be regarded as a rising tide. The two sides have cooperated to produce the world's most advanced high-power electric locomotive, which has become the main force of 10000 ton traction of Daqin Railway. The urban rail vehicles jointly developed by the two sides once occupied nearly 60% of China's A-type vehicle market share, but CSR group did not make any money in 10 years. It did not start to make profits until Siemens was excluded from the project in 2009

in the international market, the competition and cooperation relationship between CSR and Siemens is incisively and vividly displayed. In the West Asian market, the two sides sincerely cooperate and jointly bid to defeat their competitors in one fell swoop; Following the same example, the cooperation between the two enterprises in New Delhi, India is invincible. However, the solemn vows at the celebration banquet have not been heard yet. In the markets of Malaysia and South Africa, the two companies have been locked in a tight fight. I am afraid this scene of champagne and fists will continue

in spite of this, Siemens is still an enterprise that I respect. In particular, its rigorous, capable, persistent style of not bumping into the south wall and not looking back makes me admire it, and also exerts a subtle influence on CSR group

20 years ago, CSR and wolves have been dancing together, never giving up, and being indifferent. The cooperation between the two sides is as wonderful as the tango dance. CSR, a sheep nurtured by Chinese Confucian culture for hundreds of years, has not been eaten. On the contrary, it has become a bit of a wolf. In my eyes, Siemens' competitive strategy is much softer than before

dating back to 1991, Zhuzhou Electric Locomotive Research Institute of the Ministry of railways, as a pioneer in the reform of the national scientific and technological system, has gone through a development path of nearly 10 years. As the deputy director in charge of operation at that time, I was very surprised by an open telegram forwarded by the foreign economic and Trade Commission to the Chinese Embassy in Europe. The main idea of the telegram is that the EU requires all Member States to stop technology transfer in economic exchanges with China and to establish controllable joint ventures in China to carry out economic and trade activities. I am afraid there are two reasons for the adjustment of EU China policy. First, China has not yet joined the world trade organization. If EU countries export technology to China in a large area, they are worried that intellectual property rights will not be protected by law; Second, western countries have begun to implement new sanctions against China

The year of 1992 was an important year of social change in China. Zhuzhou Electric Locomotive Research Institute of the Ministry of Railways (Zhuzhou Institute) and Zhuzhou Electric Locomotive Factory of the Ministry of Railways (Zhuzhou locomotive factory) almost simultaneously contacted Siemens and discussed cooperation issues. The project is arranged from top to bottom. If the National Conference on science and technology presided over by Comrade Deng Xiaoping 10 years ago stirred up the calm lake of Zhuzhou Institute, then in the spring of 1992, Comrade Deng Xiaoping's southern talk set off a huge wave in Zhuzhou Institute. This is always the place where intellectuals get together. They will not keep to themselves. Once they have the opportunity, they will be full of passion and release all their energy. Deng Xiaoping's southern talk greatly inspired Zhuzhou Institute's enthusiasm for reform. The team members' ideas are very unified: we must seize this opportunity to achieve new development through cooperation with Siemens

however, Siemens does not think so, but its solemn statements to Zhuzhou Research Institute have really confused many people, who do not know that this is Siemens' performance for the Chinese government. Siemens has carefully studied the strength of Zhuzhou Research Institute, and clearly understood that in the 1980s, Zhuzhou Research Institute from GE in the United States, brown in Switzerland, etc? The traction control systems of diesel locomotives, electric locomotives and large-scale road maintenance machinery were introduced by the BBC company and the Austrian Plasse company respectively and achieved great success, which was unique in the developing countries at that time. Siemens knows that Zhuzhou Institute is its strongest competitor in the future

5 years have passed, and no progress has been made in the negotiation between Zhuzhou Institute and Siemens, and the negotiation between Zhuzhou locomotive and machinery works has not made much progress. In May1997, the Ministry of Railways issued an order to transfer me from the post of secretary of the Party committee and deputy director of Zhuzhou Institute to the post of director of Zhuzhou locomotive and rolling stock works. In late spring, Beijing is often covered with yellow sand. The highlight of the work report in Beijing was that vice minister fuzhihuan in charge of industry talked to me. Fuzhihuan's office is not big, and the two single black leather sofas look a little old. He asked me to sit on the sofa, which is closer than sitting in front of a desk or a small conference table. More than 10 years ago, I reported to him in his office. Fuzhihuan would immediately solve the problems he could solve before you finished talking. He would also write down the problems that could not be solved at the moment. This style has been used by me to this day

in 1997, like most state-owned enterprises in China, Zhuzhou locomotive and rolling stock Co., Ltd. encountered unprecedented difficulties in operation. My report naturally focused on the current situation of the enterprise and the next business plan. As usual, he immediately replied. Fuzhihuan highlighted the cooperation with Siemens. He said: the project has been discussed for more than four years, and there is still no progress. This is hanzhubin's ministerial project. When you go to the factory, you must implement it and complete the establishment of the joint venture as soon as possible

the project has been discussed for 4 years, but there is still no result. The reason is very clear. It is not that Zhuzhou plant and its leaders are conservative, but that Siemens, relying on the support of the Chinese government, charges too much for cooperative enterprises. I have little interest in cooperating with Siemens, and I don't want to cooperate with Siemens if the conditions are unreasonable

in fact, large foreign enterprises are very political. During the presidential election, these enterprises are active participants. They can not ignore political disputes. They expand overseas markets and have close contacts with political leaders of various countries. Their political acumen is even stronger than that of politicians. Their goal is to maximize the interests of enterprises

in 1989, Siemens was smart. It saw that China's basic national policy of reform and opening up had not changed, and China's huge potential market had not changed, so it broke through the resistance of Western sanctions and came to China again. China's top officials are also very clear that as long as foreign enterprises flock to China, the so-called sanctions will be on paper. Siemens, as a business leader, has been treated with high standards of courtesy by the Chinese government, which is reasonable. The joint venture project between CSR and Siemens has always been concerned by the Ministry of railways, the foreign trade and Economic Cooperation Commission, the Ministry of foreign affairs and the State Planning Commission, which shows the importance attached by the government. At the same time, the joint venture project of Sifang locomotive and rolling stock Co., Ltd. and Bombardier Corporation of Canada for quasi high-speed high-grade passenger cars was approved

at the negotiating table, I and Siemens executives were at loggerheads with each other.

one day in June 1997, 40 days after I went to Beijing to report on my work, I listened to the report of the joint venture project team again. At this time, the joint venture scheme has been changed from a joint venture established by the factory and institute to a joint venture jointly funded by the factory and institute with Siemens, which can avoid Siemens' thick factory and thin Institute and ensure the introduction of core technology

zhouguansen, leader of the negotiation team and deputy director of Zhuzhou Institute, has a scientific research background, is rigorous and shrewd. If he is the leader of the negotiation team, the Chinese side will certainly not suffer. Zhouguansen made five points: first, Siemens' position on non competitive clauses did not give way in its letters to Minister Han and vice minister Fu; Second, Zhuzhou's attitude towards Siemens' non competitive terms is very clear and unacceptable; Third, China wants to borrow a chicken to lay eggs through Siemens, but Siemens does not borrow this chicken. Siemens wants to monopolize the Chinese market through non competitive terms, and Zhuzhou resolutely opposes it; Fourth, the localization rate of 40 AC drive electric locomotives start-up project is only 30%, and the survival of the joint venture will face difficulties in the future; Fifthly, can we not engage in joint ventures, but instead explore the path of technical cooperation. Another comrade said bluntly that there are only two options for cooperation and non cooperation, and there is no room for reconciliation. It seems that the two sides at the negotiating table have reached the point of no compromise

Shortly afterwards, yangzhengwu, the governor of Hunan Province, and zhoubohua, the vice governor of Hunan Province, came to Zhuzhou locomotive and machinery plant for inspection. Yang Zhengwu stressed: to further strengthen international cooperation, no matter how difficult the negotiations are, we must take this step. It seems that Siemens has done its work to the local government


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