The financialization trend among Chinese auto companies has drawn significant attention. Among them, the Dongfeng Group stands out as one of the most notable examples. All of its subsidiaries operate through joint ventures, and the group's profitability heavily relies on equity returns, effectively transforming it into a financial entity in practice. Experts argue that capital control, stemming from technological dependency, is pushing the Chinese auto industry toward financialization.
Is this an active strategy or a last resort? The use of financialization to reform state-owned enterprises is often driven by business operators seeking quick gains. Before full-scale joint ventures, Dongfeng faced tough times. Once considered a third-tier enterprise for national readiness, it functioned more like a small society than a modern company. Despite being one of China’s largest automobile cities, its performance lagged behind FAW due to inefficiencies rooted in its state-owned structure. Slow movement of talent and internal breeding led to poor management and declining competitiveness. Years ago, even basic salaries were hard to maintain. Using joint ventures was a fast way to revamp old SOEs, and Dongfeng successfully addressed many accumulated issues through such partnerships.
If we measure financialization by contribution to business performance, Dongfeng isn’t the only example. Financialization can generate quick profits—owning shares allows for passive income through dividends, making it a logical choice for operators aiming for rapid results.
When facing modern enterprise reforms, financialization can be either a proactive strategy or a desperate move. This issue is highly sensitive, and while motives matter, the focus should be on outcomes.
Corporate culture within highly financialized auto companies is increasingly diluted. Surveys of employees at automotive joint ventures show low loyalty to their own companies, with greater allegiance to foreign partners. For instance, many young Dongfeng employees know little about the company’s history, while showing stronger admiration for foreign cultures. At the recent Shanghai Auto Show, Dongfeng didn’t even present a unified brand image. Its affiliated Shenlong company even abandoned the Dragon brand to fully align with Citroën. Similarly, Huatai Automobile announced it would not pursue independent R&D, relying entirely on Hyundai technology and positioning itself as part of Hyundai’s Chinese strategy. Meanwhile, Beijing Auto’s younger employees take pride in being part of Mercedes-Benz, showing less interest in BAIC’s culture.
Foreign companies dominate press conferences at auto shows, presenting a unified global image, while Chinese brands remain fragmented. World-renowned automakers like Toyota, Ford, and Mercedes-Benz have deep corporate cultures that guide all operations. Toyota’s lean production method, combined with its strong corporate culture, fosters loyal employees who produce high-quality vehicles. Similarly, Korean carmakers leverage their cultural appeal to enter new markets. However, after joint ventures, Chinese auto companies face a dilution of their own identity, leading to weakened brand value and fragmented product images.
Financialization has also weakened China’s business strength. A focus on short-term profits has led many Chinese auto companies to compete for foreign capital, often without clear strategic direction. Joint ventures are frequently formed without long-term plans, creating complex interests and competition among Chinese firms. In many cases, key positions are controlled by foreign parties, leaving Chinese companies with limited influence and slow development of core capabilities.
While some foreign companies have established R&D centers in China, these often focus on localized adaptations rather than core research. For example, the Dongfeng Nissan R&D Center does not conduct independent R&D but focuses on minor modifications. Even if products are localized, if trademark rights remain with foreign investors, Chinese companies remain in a passive role, acting as cheap labor rather than innovators.
Experts warn that international auto giants are using their capital and technology dominance to turn Chinese automakers into dependent financial entities. Dr. Li Xianjun from Tsinghua University notes that financialization involves using capital operations over industrial operations to achieve financial goals. This trend is a result of technological hollowing, where parent companies lose control over industrial strategies. Unlike insurance or investment firms, non-financial companies struggle to match financial institutions’ strength, increasing risks like hostile takeovers.
To avoid financialization, companies must ensure that financial capital serves as a tool for enhancing competitiveness, not an end goal. Examples like Wanxiang Group’s participation in GAC show how financial investments can support industrial growth. Other companies, such as Hafei, Chery, and Geely, have chosen non-joint venture collaborations to retain control and independence.
In contrast to global leaders like Toyota and Ford, which prioritize long-term industrial development, Chinese groups like Dongfeng and Beijing Auto often focus on short-term profits. This difference highlights the need for a shift in how state-owned enterprises are evaluated, moving away from purely profit-based metrics to encourage sustainable, innovation-driven growth.
Water Chiller System
Introduction to GENT water chiller system series
The products under GENT water chiller system series are mainly water chillers that can produce cold water or realize indoor space cooling, that is, the produces under this category are mainly used to meet users’ demand of cooling.
There are many units under this category, and these units all belong to the chiller series, but each has its own difference and characteristic. Users can choose the right unit according to your needs.
Commonalities of several units
The output form of these chiller is cold water. The cold water produced by these units can directly meet the users’ need of cold water. As for the users with the need of indoor space cooling, you need to equip the water chiller with matching indoor terminals to realize the heat exchange between the cold water and indoor air so as to realize indoor space cooling.
Differences among several units
The biggest difference between these units is the different cooling source used by them. Among them, the Cold Plunge Water Chiller and air cooled chiller use air as the cooling source, water cooled chiller uses natural water at normal temperature or cooling equipment as the cooling source, Evaporative Water Chiller uses the tap water that is cooled after evaporation through the wet certain as the cooling source. The different cooling sources used by these units make it necessary for users to determine what kind of cooling source is available before choose the unit, so as to ensure the unit can operate normally once it is in place.
The above categories are mostly distinguished according to their respective characteristics, and the products under each category are the same products with different modes. In contrast, the industrial chiller category is distinguished according to the usage scenario, which means that the chiller can be used in industrial scenario, and the products under this category are not limited to a certain product. Under normal circumstances, all chillers can be classified under this category, because all chillers can be used in industrial scenario.
Therefore, there are several chillers for users to choose, and these units all have its own difference and characteristic, users can definitely choose the chiller system that best suit you.
Water Cooled Chiller,Water Cooled Chiller System,Industrial Chiller,Chiller System,Air Cooled Chiller
GUANGZHOU GENT NEW ENERGY TECHNOLOGY CO., LTD , https://www.gentgz.com