This is the best of times, this is the worst of times!
In the volatile global industrial landscape, Dickens's classic quote has become a true footnote for countless companies today. On the one hand, as geopolitical conflicts and tariff wars escalate, the relationship between Chinese manufacturing and the US market is growing increasingly distant. On the other hand, Chinese manufacturing companies continue to expand internationally, with emerging markets such as South America, Southeast Asia, and the Belt and Road Initiative becoming their preferred destinations.
Turning our attention to the domestic market dominated by "rat-race", how to actively adjust the supply chain and production model and build the ability to reduce system costs has become the key for enterprises to break through the bottleneck; at the same time, as domestic substitution is moving towards China's leadership, foreign-funded enterprises have to face a new role change.
PHIIDF
A brand new upgrade and a fresh start
At this complex and volatile juncture, Phoenix Contact's PHIIDF, after a year of development, is back with a fresh start. On May 20th, in Shenzhen, a hub of Chinese industrial development, the event showcased the strategic decisions of a multinational company at a crossroads, its courage to forge ahead amidst the undercurrent of anti-globalization, and its unwavering confidence in continuously increasing its investment in the Chinese market and steadily advancing its Phoenix Contact China 2.0 strategy.
From Gu Jiandang, President of Phoenix (China) Investment Co., Ltd., who declared a "second entrepreneurship," to Zhu Xingming, Chairman of Shenzhen Inovance Technology Co., Ltd., who reframed the value of automation; from Chu Jian, founder of Supcon Technology Group, who explored industrial AI practices; to renowned economist Professor Xiang Songzuo, who deconstructed the tariff war, PHIIDF 2025, through a series of dialogues spanning industry wisdom, unveiled a new dimension of China's industrial globalization strategy and reflected the complex spectrum of supply chain reconstruction in the new era of globalization.
Comprehensive upgrade of deep localization
The current Chinese market has become a game for the brave; only those who are determined to act can survive. Counter-cyclical strategies require not only business courage but also a deep understanding of the underlying logic of the Chinese market and a long-term perspective that is optimistic about future development.
On the stage of PHIIDF 2025, Phoenix Contact Group CEO Dirk Görlitzer once again conveyed his confidence in the Chinese market with powerful figures.
China is a key investment area for the group. By 2030, Phoenix Contact will have invested 2.5 billion RMB in China. The infrastructure area of Phoenix Contact China will reach 75% of the group's headquarters.
In fact, this trust has been rooted since 1993. For 32 years, Phoenix Contact has grown steadily, adhering to the philosophy of "100% local team, 100% local management," into the company recognized by its ecosystem partners as " the most Chinese of German companies ." As the group's largest overseas R&D and production base, Phoenix Contact China boasts seven wholly-owned subsidiaries and one joint venture , continuously contributing its local innovations to the global market. Even Phoenix Contact's new Mexican base benefits from strong support from Chinese companies.
Phoenix Contact has demonstrated strong "dual circulation" capabilities - deeply participating in China's industrial upgrading and transforming China's experience into global competitiveness.
In the face of significant global changes in recent years, Phoenix Electronics China has further upgraded its localization strategy: Embarking on a "second entrepreneurial journey" through its "In China, For China" positioning and its "In China, Helping Asia, Connecting the World" approach. By simultaneously upgrading local R&D capabilities, deepening local supply capacity, and consolidating local manufacturing capabilities, Phoenix Electronics China is further strengthening its Local Innovation 2.0 strategy. The construction of its third base in Nanjing, supporting the development of emerging industries such as new energy vehicle charging and swapping infrastructure, and the orderly progress of the second phase of its second base, aiming to create a world-leading, full-value chain super factory, all form a key element in the implementation of this three-pronged strategy.
Gu Jiandang stated, "The trust of headquarters and our Chinese customers has enabled Phoenix China to take root in this land of tremendous strength. Here, we are equally confident in fully embarking on a new journey of secondary entrepreneurship. As long as we identify the right direction, Phoenix is willing to go against the tide. I believe time will give us the answer. Our choice is not to go against the tide, but to move forward in both directions toward the future."
Deep coupling with China's ecology
The current competitive landscape is no longer limited to simple product comparisons; it encompasses a comprehensive contest of ecosystems and system capabilities. Only by building a triple barrier of technical standards, platform architecture, and ecosystems can we seize the initiative amidst the dramatic restructuring of the global supply chain.
The Phoenix Contact Group's product portfolio encompasses over 100,000 products, ranging from standard printed circuit board terminals to advanced control units. In 2024 alone, factories worldwide will produce a staggering 8 billion units. Phoenix Contact's strong DNA of "connectivity" and its commitment to "always supporting giants" have become the driving force behind its deep integration with the Chinese ecosystem.
Beyond the company's own development, Gu Jiandang and his team have been diligently promoting cross-sector integration for years, building an industrial ecosystem and cooperation system aimed at the globalization of China's industry. They have established a nationwide digital industrial "ecosystem" and forged strategic partnerships with numerous leading local companies. Across multiple dimensions, including intelligent devices, intelligent control, intelligent production, and networked collaborative manufacturing, they are empowering the industrial ecosystem and helping more Chinese industries achieve digital, intelligent, and automated transformation and upgrades.
In Gu Jiandang's view, the key to building an ecosystem lies in two main aspects : first, partners must truly achieve co-creation and co-construction, which is the origin of value. Second, Phoenix Contact must continuously explore new models of strategic cooperation with leading Chinese companies.
To further align with its partners, Phoenix Contact is actively building regional competitiveness. Based in Nanjing, it is gradually establishing three regional centers, centered in Shenzhen, Beijing, and Shanghai . The Shenzhen Center, located in a strategic location in China, integrates a regional business hub, marketing center, application center, and R&D and technical service center. It serves the Greater Bay Area's diverse sectors, analyzes challenges and opportunities from multiple perspectives, and resonates with industrial upgrading.
Overseas Initiative
China's answer to the future
Amidst emerging industry trends, "going global" has become a strategic choice that Chinese companies cannot ignore. At the PHIIDF2025 Greater Bay Area Special Summit Forum, Phoenix Contact China, together with industry experts and representatives of leading Chinese industrial companies, officially launched the " Shenzhen Initiative for Global Cooperation ." Focusing on the contemporary challenges of global industrial chain restructuring and the globalization of Chinese industry, the initiative proposes six core action plans aimed at building industry consensus, enabling Chinese industrial companies to seize opportunities in the global industrial chain restructuring, and empowering the industry's international development.
From expanding its business overseas to expanding its capabilities overseas, Phoenix Contact is actively exploring business paths to accompany Chinese customers overseas. By matching customers' overseas expansion strategies, it builds an overseas expansion bridge for Chinese customers based on Phoenix Contact China, and connects it with the headquarters' global sales network, comprehensively enhancing the influence of Chinese industry on the world stage.
Phoenix Contact's comprehensive overseas support services focus on three dimensions to empower Chinese companies:
Industry perspective : Market opportunities for manufacturing, new energy vehicles, photovoltaics, pharmaceuticals, cross-border e-commerce and other companies to expand overseas
Customer perspective : Gain insights into customers' international needs, from product and production capacity expansion to industrial chain and sales network expansion.
Product perspective : We provide comprehensive solutions and services, taking into account customers' diverse needs such as standardization and customization, meeting international standards/certification/testing specifications, and leveraging global network resources to improve service efficiency and rapid response capabilities.
During the roundtable discussion, corporate guests engaged in in-depth discussions on the opportunities and challenges facing Chinese companies in their overseas expansion, as well as new paths to breakthroughs. Case studies such as the overseas expansion of charging piles, the implementation of microgrids in Asia, Africa, and Latin America, and the entry of European customized servo motors into the German market, offer insights into how supporting industries are contributing to the grand narrative of "China's globalization solutions."
From "Empowering an All-Electrified Society" to "China's Industrial Globalization," we have consistently leveraged technological innovation and industrial collaboration to drive the transition of Chinese industry from "exporting products" to "exporting capabilities" and "exporting value." This initiative represents not only a strategic upgrade but also a voice from China on the global industrial landscape.
--Gu Jiandang
President of Phoenix (China) Investment Co., Ltd.