In 2018, the Consumer Electronics Show (CES) in Las Vegas had just concluded, and the organizers from the Consumer Technology Association (CTA) were already preparing for the upcoming CES Asia. Five months ahead of the event, a list of nearly 30 companies confirmed to participate was released. Many of these participants were also regular exhibitors at the U.S. edition of CES. Among them, Chinese companies such as Haier, Huawei, Hong Kong University of Science and Technology (HKUST), Skyworth, and Suning were prominently featured.
[Image: A photo of a CES exhibition space]
As the "flagship event" of the global tech community, the U.S. CES has long been a stage where top tech companies showcase their most advanced innovations. The event is known for its strong ceremonial atmosphere, including keynote speeches held both the day before and on the event day—key moments that often reflect the influence and technological standing of participating companies. In contrast, CES Asia appears to have a more subdued and less formal tone.
The differences between the American and Asian editions are quite clear. From the perspective of exhibitors, it's evident that there's still a gap between Chinese consumer electronics companies and their international counterparts. A reporter from First Financial conducted interviews focusing on the automotive and home appliance sectors to explore the differences between Chinese and foreign companies in various fields.
**Automotive: A Gap in Strength**
A year earlier, LeTV was a big name at CES 2017. Its subsidiary, Faraday Future, made a high-profile debut with the FF91 electric vehicle, aiming to capture attention through the event. Although the FF91 showcased impressive data and features, it was ultimately seen as a concept car rather than a production-ready model.
Unfortunately, the dream of redefining the automobile didn’t materialize. After the release, the FF91 faced criticism and delays. At CES 2018, the FF91 returned but in a much lower-key manner, only offering a small media experience. It was considered a second-generation prototype, not yet ready for mass production.
Xiaopeng Motors took a step forward by launching the G3 at CES 2018. This was the first mass-produced internet car developed by Chinese new energy automakers to be showcased at the event. The G3 is an upgraded version of Xiaopeng Auto 2.0, featuring improved autonomous driving capabilities. Alongside Xiaopeng, BYTON also made waves by unveiling the BYTON Concept, a smart luxury SUV, ahead of the event. Chery, the only traditional Chinese automaker at CES 2018, brought the Ariza 5. Chery also signed a cooperation agreement with Baidu and plans to establish a research center in Silicon Valley.
Despite growing visibility, Chinese automakers still lag behind global giants like Toyota, Volkswagen, and BMW. These traditional players are heavily investing in smart, connected, and electric technologies. Toyota, for instance, announced its transformation into a mobility service provider, challenging tech giants like Google and Apple. It introduced the e-Palette, an electric vehicle designed for ride-sharing, logistics, and product delivery.
These established automakers have decades of technical expertise, massive production capabilities, and global sales volumes. In 2016, Toyota’s revenue reached 27.6 trillion yen, while Volkswagen reported operating income of 217.27 billion euros. Their annual sales far exceed those of Chinese automakers, even when considering joint ventures.
While companies like NIO, Xpeng, and Weilai are gaining traction, they still face significant challenges in competing with global leaders. However, their ambition to lead in the automotive revolution remains strong.
**Appliances: "Not Yet There, But Getting Closer"**
Zhou Qun, Managing Director of GFK China, noted that while international companies still lead in AI applications, especially in English-speaking environments, Chinese companies are catching up. For example, Skyworth partners with Google Assistant, and Hisense works with Amazon Alexa. Haier also demonstrated its collaboration with Amazon at CES 2018.
China is the world’s largest producer of home appliances, but in the age of IoT and AI, many Chinese brands rely on foreign platforms for smart features. However, Haier has its own UHomeOS platform, aiming to lead in smart home solutions. According to Zhao Feng, CTO of Haier, the company believes in vertical innovation and is open to partnerships.
Brand recognition is another challenge. High-end markets in Europe and the U.S. are dominated by multinational brands. Companies like Haier, Midea, TCL, and Hisense are working hard to build their presence abroad. For example, TCL aims to become the third-largest TV brand in North America by 2020, and Haier’s refrigerators are sold for over 100 euros in France and Germany.
Despite these efforts, Chinese appliance companies still face hurdles in capturing leadership in the AI-driven smart home market. South Korean firms like Samsung and LG have strong positions in both hardware and upstream components like memory chips and display panels.
However, Chinese companies have made progress in core technologies and patents. Midea ranked first globally in invention patents in 2016, followed by Gree and Haier. Haier also led the development of a standard for large-scale customization in the industry.
In conclusion, while Chinese companies are making strides, the road to global leadership in both automotive and home appliance industries remains long and challenging.
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