TCL Li Dongsheng: Globalization is entering a period of deep adjustment, multinational enterprises need to focus on building localized industrial chains and supply chains.

TCL founder and chairman Li Dongsheng said at the 16th annual Davos Forum that due to differences in endowment and capabilities between countries and regions, the benefits brought about by globalization are not evenly distributed, leading to imbalances in regional development. This imbalance mainly manifests in two aspects: firstly, the hollowing out of the manufacturing industry in developed countries, as globalization accelerates the transfer of manufacturing jobs from developed countries to developing countries, leading to job losses and industrial hollowing out in developed countries. Secondly, developing countries are often stuck at the low end of the industrial chain, as multinational enterprises usually transfer labor-intensive production processes to developing countries. This division of labor model brings job opportunities to developing countries, but also leads to long-term dependence on low-end manufacturing, making it difficult to achieve industrial upgrading. As globalization enters a period of deep adjustment, multinational enterprises need to shift from solely pursuing efficiency to balancing efficiency and fairness, and from simply exporting products to co-building industrial capabilities with local communities. By constructing localized industrial and supply chains, the economic and social development of the areas where industries are located can benefit.