From software to the internet, mobile phones, and now new energy vehicles, Lei Jun's career shifts over the past 30 years mirror Beijing's industrial evolution. As Beijing aggressively pushes industrial upgrades during its 14th Five-Year Plan, Lei Jun, founder and chairman of Xiaomi Corp., shares his insights on the city's manufacturing transformation and the cultivation of new productive forces.
"Beijing's industrial foundation is Xiaomi's backbone," Lei emphasized. On November 20, Xiaomi Auto celebrated its 500,000th vehicle rollout, setting a global record in the new energy vehicle (NEV) sector. Lei credited Beijing's ecosystem for this milestone, though he acknowledged cost challenges, such as higher logistics expenses due to southern-centric supply chains.
Yet, Beijing's innovation prowess, industrial base, and business-friendly policies proved decisive. The Xiaomi Auto factory was built in just 14 months—a feat unlikely elsewhere. Three national-level automotive innovation centers in intelligent connected vehicles, NEV tech, and batteries are anchored in Beijing, providing cutting-edge R&D support. Located in Majuqiao, the factory benefits from proximity to Beijing Mercedes-Benz and shared supply chains for premium vehicles.
Beijing's NEV output surged from 20,000 units in 2020 to 310,000 in the first seven months of 2024, reflecting its strategic pivot. CATL's nearby battery plant further bolsters regional synergy. "We aim to make Majuqiao the NEV hub of the Beijing-Tianjin-Hebei region," Lei noted, highlighting narrowing gaps with the Yangtze River Delta.
Smart manufacturing amplifies Beijing's strengths. Lei cited Xiaomi's "lights-out" factory in Yizhuang, producing 1 million phones annually with minimal human intervention, and a new Changping facility targeting 10 million units. "Beijing must lead in smart, high-value manufacturing, not labor-intensive models," he stressed.
Lei called for open innovation scenarios, urging flagship firms to pilot smart manufacturing hubs where SMEs can test equipment. Collaboration with universities could spur breakthroughs in processes and software.
Looking ahead, AI promises to redefine industries. "Every sector deserves an AI reboot," Lei said, citing Xiaomi Auto's AI-powered inspections, which are 10x faster and 5x more accurate than manual checks. He envisions a trillion-dollar market in AI-industrial fusion, requiring ecosystem-wide collaboration.
Humanoid robots will soon staff Xiaomi factories, with broader household applications on the horizon. Beijing is also spearheading future industries like commercial aerospace and AI model clusters, leveraging its academic density and innovation mechanisms.
"With half of China's academicians, top-tier research institutions, and world-class policies, Beijing is primed to accelerate new productive forces," Lei concluded.
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