"India earns money and India spends, and they want to take it home."
In this country, no foreign company can go out with its own money. India is also nicknamed the "crematorium for foreign companies". Recently, this trick in India has started to target VIVO again.
Recently, the news that India's Tata Group acquired a 51% stake in the Indian branch of Chinese smartphone manufacturer VIVO has aroused widespread attention and heated discussions in the industry like a bombshell. In the past, companies such as Huawei and TikTok were often able to get firm support from the state when they encountered external challenges, but why is VIVO's situation completely different this time?
As a leading enterprise in China's communications industry, Huawei plays a pivotal role in the global market. However, in recent years, Huawei has encountered a series of challenges in overseas markets, including sanctions and repression by the US government. In the face of these external pressures, the Chinese government has taken a firm attitude of support, providing Huawei with policy, financial and other support. For example, the government has encouraged domestic operators to prioritize the use of Huawei equipment, providing Huawei with a large number of government procurement orders. At the same time, the government has also actively promoted cooperation with Huawei in 5G and other fields, which has won more opportunities for Huawei in the global market.
TikTok, as a short video app, has a huge user base around the world. However, TikTok has also encountered a series of challenges in markets such as the United States due to data security and other issues. In the face of these challenges, the Chinese government has also taken a firm supportive attitude. The government has repeatedly stressed the importance of data security and asked relevant companies to strengthen data protection. At the same time, the government has also actively promoted cooperation with TikTok in the digital economy and other fields, providing strong support for TikTok's development in the domestic market.
From the perspective of its own strength, compared with the independent R&D and innovation capabilities of Huawei and other enterprises in core technologies, VIVO relies more on external supply chain and technical support to a certain extent, which limits VIVO's autonomy and leadership in technological innovation. ALTHOUGH VIVO HAS ALSO LAUNCHED SOME INNOVATIVE TECHNOLOGIES IN THE FIELD OF SMARTPHONES, SUCH AS ON-SCREEN FINGERPRINTS AND LIFTING CAMERAS, COMPARED WITH HUAWEI'S LEADING POSITION IN THE FIELD OF 5G TECHNOLOGY, VIVO'S ACHIEVEMENTS IN CORE TECHNOLOGICAL INNOVATION ARE RELATIVELY LIMITED. This lack of technological innovation makes it difficult for VIVO to maintain its market position with its technological advantages in the face of external competition.
When formulating support strategies, the state often takes independent innovation and core technology research and development as important considerations. For enterprises with independent R&D capabilities and innovation strength in core technologies, the state will give more support and attention. However, VIVO's relative lack of technological innovation makes it difficult for it to become the object of national key support.
As a leading enterprise in China's communications industry, Huawei has a global leader in 5G technology. This strategic position has made Huawei a key target of national support, and has received support from various aspects such as policies and funds. In contrast, VIVO's lack of technological innovation and strategic position makes it difficult for it to obtain equal policy support.