In recent years, the concept of smart homes has gained significant traction, with everyday appliances like routers, TVs, and air purifiers being transformed into intelligent devices through the Xiaomi Smart Operating System. This system doesn’t rely solely on internal engineering efforts; instead, it leverages the collective wisdom of thousands of users via the internet, enabling a form of "crowdfunding" development. By integrating user feedback and innovative ideas, Xiaomi has successfully expanded its presence in smart devices such as televisions, routers, and set-top boxes. The company also focuses on the "two ends of the smile curve"—R&D design and marketing—while outsourcing manufacturing to foundries. With around 8,000 employees, Xiaomi achieved a revenue of 74.3 billion yuan last year, averaging over 100 million yuan per 11 employees.
Zhongguancun, known as China’s Silicon Valley, is home to many companies that use minimal human resources to tap into global markets, capital, and manufacturing networks. In 2014, it took only 56 employees to generate 100 million yuan in revenue, a significant reduction compared to previous years. According to data from the Beijing Survey Team, Zhongguancun generated a total revenue of 3.57 trillion yuan in the last year, growing by 17.2% year-on-year. Profits reached 283.23 billion yuan, up 25.1%, and tax revenue was 186.73 billion yuan, rising by 23.9%. These figures show that Zhongguancun plays a vital role in driving Beijing's economy, contributing 28.3% of the city's total industrial and tertiary sector income.
Beyond cutting-edge technology, companies like Xiaomi and others in Zhongguancun are transforming traditional industries using internet thinking and innovative business models. This approach has become a key competitive advantage. The National High-tech Zone Internet Cross-border Integration and Innovation Zhongguancun Demonstration Project aims to accelerate the integration of the internet with various sectors. It includes initiatives such as smart manufacturing, e-commerce, smart logistics, and more. The project also emphasizes cross-industry innovation, focusing on technological breakthroughs, network security, and collaborative efforts among different entities.
Guo Hong, director of the Zhongguancun Management Committee, emphasized that by 2020, Zhongguancun aims to become a global hub for internet economy technologies, emerging high-tech industries, and offshore internet services. The goal is to foster high-end, service-oriented, and sustainable development in the national high-tech zone industry, shifting toward a quality-driven, efficient, and intensive economic model. Through continuous innovation and cross-border collaboration, Zhongguancun is shaping the future of the internet economy and leading the way in smart and connected living.
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