(Yicai) Nov. 7 -- Northern.tech, a Norwegian device lifecycle management firm, aims to localize its Chinese business and take advantage of China's fast-growing internet of things and smart manufacturing sectors to better serve local customers.

"We want to have our presence very local, native, and not just operate from Norway to serve China, but operate from China to serve our Chinese customers," Shoaib Zafar, head of global operations at Northern.tech, told Yicai during the ongoing China International Import Expo in Shanghai.

Northern.tech, which develops open-source based and enterprise-grade software solutions for over-the-air updates and device security, is showcasing its flagship platform Mender at the CIIE. Mender delivers robust, secure, and customizable OTA software updates for smart devices.

Northern.tech plans to localize its solutions to meet the needs of Chinese customers while maintaining its core offerings. It already serves the healthcare, automotive, smart home and other critical infrastructures globally, and the goal for China is to understand what partners and customers need and serve them accordingly, Zafar noted.

The Oslo-based company established its China subsidiary in Shanghai's Jing'an district in June, less than eight months after Zafar's first visit to China.

"After [visiting] all those different cities, we came to realize that Shanghai is the right place for us," he said. "Our local partners, both the government and the private ones, really helped expedite this process.

"What we heard before we came to China is that it can take a long time, but it took less than six months," he added. “So it was a very efficient and effective process.”

The Shanghai office operates with a small team, though Northern.tech's global workforce provides full support. "Our Chinese operations are as integrated with our headquarters as our US operations," Zafar explained. “Hopefully, in the future, we'll have a much bigger team in China.”

Eyes on Global Expansion

Zafar believes that the potential of China's IoT sector is limitless. He sees China as a global innovation leader that not only builds smart products but also scales them worldwide.

Northern.tech positions itself as a bridge for Chinese manufacturers entering new markets with strict cybersecurity requirements.

For example, the European Union's new Cyber Resilience Act mandates compliance for all imported connected products. "It's a new European law any smart product needs to comply with, and we offer compliance in a software updating mechanism," Zafar said.

"If we help Chinese companies, we will end up helping a big part of the world because Chinese products are everywhere," he added.

SMEs: Between Challenges and Prospects

Despite his confidence in the Chinese market, Zafar told Yicai he is worried about the potential challenges, especially from the perspective of a medium-sized enterprise.

"Competition is not our concern," he said. “It's the bureaucracy and regulatory challenges.”

While large corporations may have the resources to navigate complex rules, it can be very expensive. "It can be very difficult for smaller-sized companies to comply with too many regulations," Zafar explained. “I think that's the biggest challenge that we expect.”

However, these concerns are not too serious. "That is why our decision to localize ourselves," he said, noting that the environment is improving. "We are optimistic in that regard as well.

"China has taken steps to make it easier for not only large companies, but for medium-sized companies to establish in China as well," he pointed out.

Zafar is attending the CIIE for the first time. He is impressed by its huge scale and diversity. For him and Northern.tech, the new office in Jing'an is just the beginning. When it comes to helping Chinese companies go global securely, "the right time was yesterday," he said.

Editor: Futura Costaglione