Glass always full for Chinese firm in global market

Cao Dewang, chairman of Fuyao Glass Industry Group Co Ltd

Time-tested principles help Fuyao carve sustained business success, niche abroad, report Hu Haiyan and Hu Meidong in Fuzhou.

An expensive business school would probably call it the SIP principle, those letters standing for sincerity, integrity and persistence. But gimmicky, management-speak labels are not for Cao Dewang, chairman of Fuyao Glass Industry Group Co Ltd, and the Chinese business pioneer is happy to let his actions speak for themselves.

"It is sincerity, integrity and persistence that have helped put Fuyao Glass where it is today", said Cao, whose autobiography in Chinese, Xin Ru Pu Ti, (My heart is a bodhi tree) was published on Dec 17.

"As long as you abide by international rules, honor transparency, compete fairly and have a clear understanding of the target market, the international market can propel the growth of Chinese companies," said Cao.

Cao knows a thing or two about "international rules", having become a celebrated figure in the Chinese business world by successfully fighting anti-dumping cases in the United States and Canada.

When talk turns to whether the global market differs greatly from that of China, Cao becomes animated and rejects the proposition with a firm "No"－ironically, in English.

"For me the biggest challenge lies in the language: I cannot speak English. There are also challenges such as a lack of people with the proper international management expertise. But getting into overseas markets is not as difficult as some people imagine."

The leader of the world's largest automotive glass maker by sales said that more Chinese companies will eventually develop their business overseas.

"For example, profits are shrinking domestically, labor costs are rising and high taxes and electricity charges all pose challenges for us. As the world becomes more globalized, every Chinese entrepreneur needs to grow their company into a global enterprise.

"Chinese companies that want to go global need to look into what kind of overseas business expansion strategy is best for them."

Cao, speaking at his home in the suburbs of Fuzhou, capital of Fujian province, said: "There are certain things that need to be weighed very carefully before a Chinese company goes global. First of all, what part of the business are you going to make global? The capital, products or technology? Second, where is the destination? The Middle East or the US or Europe? Third, why is it that this destination appeals to you? Fourth, are you familiar with the target countries' or regions' political and cultural environment? Last but not least, will they be welcome in the market they want to go to?"

Cao, 68, a devout Buddhist, said he loves reading books about the religion, and his home library is full of classical Buddhist books. The traits of sincerity, integrity and persistence that led him to set up Fuyao Glass and make it what it is today are cornerstones of Buddhism, he said.

Fuyao was founded in 1987 in Fuqing county, Fuzhou, and it now employs more than 20,000 people worldwide. It had about 20 percent of the global market for automotive glass last year, with revenue of 11.5 billion yuan ($1.86 billion), 12.2 percent higher than in the previous year.