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Lei Jun at NPC: ‘Up to the Sky, Down to Earth, Convenient Financing and Global Talents’
COVID-19 and China
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► On May 21, the CEO of Xiaomi Corporation took part in the National People’s Congress (NPC).

► He touched upon the development of China’s space science, the disaster warning system, better financing for SMEs and foreign talent acquisition for China's 14th Five Year Plan.

As a National People’s Congress (NPC) Deputy of China, Mr. Lei Jun gave his proposals covering four areas:  space science, disaster warning system, better financing for SMEs and foreign talent acquisition, which we believe somehow reflects his blueprints for Xiaomi.

First Mr. Lei suggested that the ‘Internet of Satellites,’ as an emerging industry, should be one of the priorities in China's 14th Five Year Plan. The concrete measures include encouraging commercial space science, optimizing and simplifying the satellite network declaration, opening satellite-related business to private sectors, and setting national development funds for private space companies. Earlier this year, EqualOcean reported on Xiaomi’s intention to increase investment in 5G and IoT-related technologies. Consequently, the company’s new-gen smartphones with lower cost and more competitive price may have opportunities to preemptively take over a bigger 5G smartphone market share. 

Then construction of a disaster warning system, which will be realized through smart terminals, was the following point. Connected with the world’s largest earthquake monitoring (in Chinese) sensor network, warning signals, along with instructions on how to escape, can be sent to smartphones, TVs and other types of smart devices once an earthquake is detected. In January 2020, Xiaomi declared to be the first in the world that connected it's AIoT and operating platform with an earthquake warning system. With the national support in the future, a more comprehensive and multifunctional IoT of Xiaomi can be achieved. 

Financial services for SMEs are calling for improvements regarding convenience and price efficiency. Mr. Lei suggests setting more differentiated panels for financial institutions and SMEs for a more efficient financing match. Meanwhile more favorable policies should provide banks specialized in services for small and micro business with a lower capital cost. Driving venture capitals, equity investments and supply chain finance is another effective way for the better finance of China’s SMEs. For Xiaomi, building a business ecosystem by investing in Xiaomi eco-companies has been a core strategy. If a more radiant  financial mechanism can be achieved with government’s policy assistance for the following five years, Xiaomi will have the opportunity to benefit from its investment income and business expansions into every corner of the ‘smart life’ as well. 

For globalization, it is essential for both stepping out overseas and letting the world into China’s universities, enterprises and research institutions. Lei Jun believes creating a community where is comfortable for global talents to work and live will stimulate market vitality in Beijing, Shanghai and Shenzhen. This suggestion reveals Lei Jun’s ambitions and long-term plan in Xiaomi’s global business, for talents are always the most important element to drive development. The first quarter of 2020 witnessed a 50% amount of revenue generated from overseas; more operations and investments are very likely to be conducted in the future. At the same time, risks of international politics turbulences, exchange rate fluctuations and the macroeconomic environment around the world should be noticed if the proportion of Xiaomi’s international business keeps growing. 

Editor: Luke Sheehan

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