Chinese Tech Firms Are Looking To The US For Demand
Reuters reported that a poll of analysts sees Chinese GDP falling to 7.2 percent in the fourth quarter of 2014, below the nation’s 7.5 percent target and the weakest figure Beijing has published in 24 years.
While the nation’s central bank will likely ease further in order to kick-start a stalling economy, Chinese firms are looking to the US to improve sales as domestic demand continues to struggle.
The Consumer Electronics Show in Las Vegas included a host of Chinese electronics companies, all trying to get their foot in the door for American brand recognition. Japan’s Sony Corp (NYSE: SNE), South Korea’s Samsung Electronics and Taiwan’s HTC all represent Asian electronics that have become name-brands in American households, but China’s tech sector has yet to make an impression on US consumers.
A lack of trust in Chinese brands remains a barrier for some firms, but partnerships and increased awareness is starting to draw in more American interest.
China’s ZTE, a cheap smartphone manufacturer, announced on Monday that its Grand X Max+ smartphone would go on sale for $199 through Cricket Wireless on January 9. The company has gone unnoticed for the past year, supplying Americans with generic, cheap phones through several US carriers, but hopes to become a household name are high.
Lenovo, already a well-known brand in the US but typically not associated with Beijing, revealed a new series of light-weight laptops at CES this week. The brand has inched its way into the US through a series of acquisitions, its latest being the purchase of Motorola Mobility.
Hisense, meanwhile, has been manufacturing home appliances for companies like Costco Wholesale Corporation (NASDAQ: COST) for years, but of late, it's hoping to push its brand name forward. At CES, the company presented a laser TV projector and a beverage dispenser designed for use in individual homes.
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