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"Phoenix Contact: Witness, Participant, and Beneficiary of China's Innovation"

Release Time：

2025-02-13

Founded in 1923, German company Phoenix Contact is a global "hidden champion" in electrical manufacturing and one of the world's first batch of nine "lighthouse factories" for smart manufacturing. Over the past 30 years since entering Chinese market, Phoenix Contact has developed from selling products to localized operations, and ultimately to leveraging Chinese market to serve global needs. The Chinese market has not only become an indispensable part of Phoenix Contact's global innovation chain, but also an increasingly important base for implementing its intellectual property (IP) strategy and accelerating innovation-driven development.

"Phoenix Contact is a witness, participant, and beneficiary of China's innovation. China's high-level IP protection not only strengthens our confidence in continued development in China, but also enhances the quality and level of our trade and investment cooperation," said Yin Hongjun, Vice President of Technology and Chief Local Innovation Officer of Phoenix Contact China.

Equal protection strengthens confidence

"The IP administrative protection system with Chinese characteristics has provided us with unprecedented support and convenience. The integrated model of administrative and judicial protection combines the speed and flexibility of administrative measures with the authority of judicial protection, offering comprehensive and multi-level safeguards for the IP of foreign enterprises in the Chinese market," Yin added that China's exploration and practice in IP administrative protection have not only provided foreign enterprises, including Phoenix Contact China, with a safer, more stable, and predictable market environment, but also injected new vitality into the global IP protection system.

Under the equitable IP protection environment, Phoenix Contact China has achieved a strong combination of technology and IP. To date, the company has filed 544 patent applications in technical fields such as circuit devices, control/regulation systems and measurement devices, with 427 patents granted, 73% of which are invention patents.

Shared development toward future

"From the beginning of its entry into China, Phoenix Contact adopted a 100% localized management model, with a management team entirely composed of Chinese professionals," Yin explained. For a German company, this was no easy feat. However, driven by trust in Chinese market, Phoenix Contact China made this bold choice.

Yin recalled that 20 years ago, Phoenix Contact China hired its first local R&D personnel, providing only basic technical support. As the company deepened its penetration of the Chinese market, it began a series of "mission-oriented" R&D projects under the guidance of its German headquarters, marking the "Local Innovation 1.0 Era" for Phoenix Contact China.

"Since 2019, we have entered the 'Local Innovation 2.0 Era'," Yin noted. In recent years, the expansion of emerging industries and the cultivation of future industries in China have led to significant changes in the industrial ecosystem. Many Chinese companies have not only ventured into uncharted territories of innovation, but also become leaders in their respective fields. To move forward alongside these outstanding companies, Phoenix Contact China recognized the need to establish an independent innovation and R&D system tailored to China's unique needs, to better support and drive innovative development.

In just five years, the company's R&D team has grown to over 300 members, with R&D investments increasing by 20% annually. It has filed over 100 international patent applications through the Patent Cooperation Treaty (PCT). Phoenix Contact China has transformed from a sales-focused company and a traditional manufacturing company into a company of full value chain with a growing focus on R&D and innovation, making it one of Phoenix Contact's largest overseas R&D and production bases.

In China, for the world

The Chinese market has shaped Phoenix Contact China, and China's innovation has opened up more possibilities for the company. "We always resonate with Chinese companies, building industrial ecosystems and advancing alongside China's industrial development," Yin said.

Through localized operations, Phoenix Contact China has better aligned with the needs of Chinese market. "Global first launches take place in China," Yin stated. Many of Phoenix Contact China's products are 100% developed in China and also serve global markets.

In Lishui District, Nanjing, Phase I of Phoenix Contact China's third manufacturing base, a smart manufacturing project for new energy vehicle (NEV) equipment, was recently completed. Once operational, it will have an annual production capacity of 1 million AC/DC charging guns and 1 million vehicle charging sockets. This large-scale production project not only injects strong momentum into China's NEV industry, but also marks a significant step forward for Phoenix Contact China in advancing global green energy transitions.

"We firmly believe that China's IP protection will continue to reach new heights, offering more robust safeguards for the IP of foreign enterprises. Phoenix Contact will further increase its strategic investment in China, deepening its localization efforts," Yin stated.

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