Li Yizhong, Standing Committee, CPCC National Committee: “Innovation” at APEC China CEO Forum

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Keynote Address by Li Yizhong, Standing Committee of the CPCC National Committee, Deputy Director of Economy Committee of CPCC – “Innovation Reform and the New Industrialisation”

Please note: The speaker was simultaneously translated from Mandarin to English and then I wrote bullet points. There are no doubt flaws in reporting. Instead of a faithful transcript, this post provides an overview of the issues.

。        CPCC National Congress proposed by 2020 we will realize industrialization

。        Increase resource efficiency, apply advanced technologies, break energy-resources constraints

。        Protect ecological environment. Build economy in harmonious manner with ecology

。        Be quality oriented to satisfy consumption demands of people

。        Chinese characteristics of developing economy

Use resources carefully – not like Western societies who used resources without care and led to environmental disasters. We need to engage in clean production

Integrate ICT and industrialization – leverage era of advanced technologies. Great engine to improve company performance

Develop agriculture sector using industrialization and ICT

。        Must use modern technology

。        Accelerate industrial restructuring to innovate, transform China’s economy

。        Deep level problems and structural issues with China’s economy

China grew by leaps and bounds since earlier development, yet structural issues remain that constrain growth

Many key technologies are not owned by China – we must import green technology. China accounts for 3% of world’s patents – far below South Korea, as example

Electronic manufacturing is #1 in world – yet 80% of high end chips need to be imported

Aeronautics and navigation rely on imports and foreign patents. Now decided by CPCC a priority industry

High speed rail still requires advanced technology imports

。        2.5% of industries in China are in technology. We don’t have big groups that can compete internationally.

。        We need to compete on quality. You cannot say that Made in China means low quality

。        Balance between different regions and different industries. Oil and water imported within China. We need to t plan industry to ensure better balance of industries across regions

。        We should not follow blindly number of GDP

。        Currency conflicts mean price of resources increase

。        Posing significant challenges

。        Try to catch up with industrialized nations

。        We must innovate in key technologies and move from lower end to higher end. We cannot buy key or core technologies. In the past we could exchange technology in market. That era has passed. Now we must develop within.

。        Improve independent innovation capacity. We can import from abroad and re-innovate on their technology. Must invest in academic research and technological innovation

。        Need to open market to rely on allocation of resources. Allow domestic demand to balance international demand to ensure balanced economy

。        Micro and small organisations need to be healthy

。        30 years of opening up. Public policies of an advancing economy are essential

。        Return focus to real economy, not financial economy

。        Environment beneficial to real economy

。        Currently our economy has integrated into world economy. As a developing economy we still have challenges to be well integrated into global economy

。        Without the resources and labour of the middle and Western parts of the nation, the Eastern part will not be able to realise full industrialization

。        Develop industrial chain led by large enterprises but supported by SME and micro companies. Allow companies of different sizes to complement each other

。        All companies must contribute to the realisation of China’s dream

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