In 2018, the Consumer Electronics Show (CES) in Las Vegas, USA, concluded, and the organizers from the Consumer Technology Association (CTA) began planning CES Asia months ahead. The first wave of nearly 30 companies confirmed to participate in CES Asia was announced, many of which were also exhibitors at the U.S. event. Among them were notable Chinese companies such as Haier, Huawei, Hong Kong University of Science and Technology (HKUST), Skyworth, and Suning.
As one of the most anticipated events in the global tech community, the U.S. CES has long been a platform for major technology companies to showcase their latest innovations. It's not just about the products—it's about the ceremony, including keynote speeches that often draw significant attention. In contrast, CES Asia appears less formal and lacks the same level of grandeur.
The differences between CES Asia and its U.S. counterpart are clear. From the perspective of exhibitors, it's evident that Chinese consumer electronics companies still have a long way to go compared to their international peers. A reporter from First Financial interviewed industry experts in the fields of automotive and home appliances to explore the gap between Chinese and foreign companies.
**Automotive: The Gap Between China and the World**
Last year, LeTV made waves at CES with Faraday Future’s FF91 electric car, aiming to capture attention with a high-profile launch. However, despite the impressive specs, the vehicle failed to live up to expectations, leading to criticism and delays. At the 2018 CES, the FF91 returned, but much more quietly, as a small media experience. It was considered a second-generation prototype, still far from mass production.
Meanwhile, Xiaopeng Motors launched the G3, the first mass-produced internet-connected car from a Chinese new energy automaker at CES. Beittan, another Chinese automaker, also made headlines by unveiling the BYTON Concept, a smart luxury SUV with a 520 km range. Chery, the only traditional Chinese automaker at the event, showcased its Ariza 5 model and announced plans to collaborate with Baidu on a connected car system.
Despite growing presence, Chinese automakers still lag behind global giants like Toyota, Volkswagen, and BMW. These companies are investing heavily in autonomous and electric technologies, with Toyota even rebranding itself as a mobility service provider. Their financial strength is unmatched—Toyota’s revenue in 2016 reached 27.6 trillion yen, while Volkswagen reported 217.27 billion euros in operating income. Their massive sales volumes allow them to invest heavily in innovation.
Chinese startups like NIO, Xpeng, and Weilai are making progress, but they still face challenges in funding and brand recognition. However, their ambition remains strong, with leaders like Li Bin expressing confidence that domestic companies can challenge traditional giants in the future.
**Home Appliances: "Not There Yet, But Moving Forward"**
According to Zhou Qun, Managing Director of GFK China, international companies still lead in AI applications, especially in natural language processing and user interaction. While Chinese brands like Skyworth and Hisense partner with Google Assistant and Amazon Alexa, there is still a gap in understanding local languages and environments.
Haier, however, is taking a different approach. It has developed its own IoT operating system, UHomeOS, aiming to lead in smart home solutions. Unlike other platforms, Haier’s AI understands specific commands better, showing potential for growth.
Brand recognition remains a challenge, especially in premium markets. Haier’s refrigerators now sell for over 100 euros in Europe, but breaking into the top tier requires time and effort. Despite this, Chinese companies have made strides in innovation. Midea ranked first globally in invention patents in 2016, followed by Gree and Haier. Additionally, Haier led the development of a standard for large-scale customization in the home appliance industry.
While the path to dominance in the AI-driven smart home market is still long, Chinese companies are steadily building their strengths. With continued investment, collaboration, and innovation, they are well on their way to achieving greater recognition and influence on the global stage.
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