Chinese billionaire featured in ‘American Factory’ shares lesson for firms going global

Chinese billionaire Cao Dewang, whose glass-making business was highlighted in the Oscar-winning film American Factory, has advised Chinese investors venturing abroad to respect local laws, regulations, and culture. The CEO of Fuyao Glass made these remarks during a lecture at the University of Hong Kong, emphasizing that this approach was pivotal to his company's success in the United States.

Despite the complex US-China relations, Cao stressed the importance of employing American people and resources when operating in the US. His Fuyao operations in the United States currently employ between 6,000 and 7,000 people, with only a small fraction, fewer than 200 staff members, being brought from China.

Cao, also known as "China's glass king," founded Fuyao in 1987 and grew it into the world's leading automotive glass manufacturer. The company's expansion to the US was the subject of the Oscar-winning documentary, American Factory, which won the Academy Award for best documentary feature in 2020. The film explored the cultural and labor tensions that arose at the Ohio plant.

Fuyao's US operations have since become a case study in the opportunities and challenges faced by Chinese manufacturers going global, especially amidst trade tensions and tariffs between the world's two largest economies. Cao stepped down as chairman of Fuyao last year, passing the role to his son, Cao Hui, marking a generational transition in one of China's most prominent privately-owned manufacturers.

He has since shifted his focus to education and philanthropy, notably establishing the Fuyao University of Science and Technology in Fujian province to develop engineering talent and innovate higher education.

Cao announced his retirement during the HKU event, emphasizing that Fuyao University of Science and Technology is not about personal recognition or merely creating another educational institution. Instead, it aims to explore reforms to China's private university model, with a pledged donation of 10 billion yuan (US$1.7 billion) into the university, of which less than half has been spent. Cao believes that wisdom, knowledge, and character are more valuable than wealth.