TheWorldEconomicForum’s10thAnnualMeetingoftheNewChampions,alsoknownasSummerDavos,tookplacefromJune26-28inTianjin.Themed“TheFourthIndustrialRevolutionandItsTransformationalImpact”,theeventattractedmorethan1,700businessleaders,officials,andexpertsfromover90countries.
Astheglobaleconomyenduresanextendeddownturn,fewweresurprisedthatChina’seconomybecamethefocusoftheSummerDavos.WhatistheeconomicsituationinChina?HowwillChinaconductitseconomictransition?WhatwillbethedrivingforcesofChina’sdevelopment?ThesequestionsraisedheateddiscussionsbetweenparticipantsofSummerDavos.
China’sNewBusinessContext
Withthearrivalofthefourthindus-trialrevolutionagainstchanginginternationalanddomesticbackdrops,Chinanowfacesbigchallengessuchasthegrowingelderlydemographicandlossoflabor-costadvantage,notedMaWeihua,presidentofChinaEntrepreneurClub,atasessionthemed“China’sNewBusinessContext”duringthe2016AnnualMeetingoftheNewChampions.
MaaddedthatweaknessininnovationandtechnicalcommercializationisChina’s“Achilles’heel.”“ThekeyisenhancingthequalityofGDPthroughtechnicalinnovation,especiallyinthefieldofmanufacturing,”heopined.
Thecoreofeconomicreformistoallowthemarkettodeterminetheallocationofresources,explainedXuJinghong,chairmanofTsinghuaHoldings.“Toadapttothechangingworld,Chinamustperformconstantinnovation.”
June26,2016:LiDaokui,aneminenteconomistanddirectoroftheCenterforChinaintheWorldEconomyatTsinghuaUniversity,speaksattheSummerDavosForum.CFPSummerDavos,themed“TheFourthIndustrialRevolutionandItsTransformationalImpact”,tookplacefromJune26to28inTianjin.CFPInnovationHighlightedatSummerDavos
Chinawillcontinuetomolditselfintoaninnovation-drivencountryusinginnovativeconcepts,growingtheneweconomyandfosteringnewgrowth,declaredChinesePremierLiKeqiangattheopeningceremonyofthe2016AnnualMeetingoftheNewChampions.
Thecountry’spromotionofentrepreneurshipandinnovationwillamalgamateinnovativeactivitiesbypeoplefrombothelitecirclesandgrassrootslevel,onlineandoffline,aswellasbusinessandresearchinstitutes,saidLi.HealsonotedthatChinawillcontinuetopromotemassentrepreneurshipand“theInternetPlus”initiativetofosternewgrowthengines.
MatthewPrince,CEOofU.S.-basedinternetcompanyCloudFlareandco-chairofthemeeting,highlightedtheroleoftheinternetinthefourthindustrialrevolution.“Thepoweroftheinternetistobringpeopletogether,”hesaid.“Chinatodayhas25percentoftheworld’sinternetpopulation,whichismakingitoneofthemostcreativeenginesintheworld.”
TravisKalanick,CEOandco-founderofUber,notedthattheprevailingrules,whicharemostlydesignedtoprotectexistingplayers,areanimpedimenttoinnovation.Asofhowtheonlinecab-hailingindustrywouldchange,hesaid,“Iguaranteeyouthatby2025,youwon’tbewavingatacaranymore.”
Educationiscrucialforincubatinginnovation,stressedShirleyAnnJackson,presidentofRensselaerPolytechnicInstitute.ShetalkedabouthowmanyChineseuniversitiesareeagertopartnerandcollaboratewithuniversitiesintheUSAandaroundtheworld.“ManytalentsfromChinasharetheirgiftsaroundtheworldandbringtheirtalentbacktoChinatoleadinnovation.”
FinancialInnovationasaGrowthDriver
DespiteworriesaboutChina’ssurgingdebtsandcapitaloutflow,participantsattheSummerDavosremainoptimisticaboutChina’seconomicoutlook,especiallyintheareaoffinancialinnovation.
“Thefutureoffinancialtechnologyistransformative,”predictedGregoryD.Gibb,co-chairmanandCEOofShanghaiLujiazuiInternationalFinancialAssetExchangeCo.,Ltd.(Lufax)atasessionthemedFutureofFinanceinChina.“Inthefuture,morecapitalcouldbeinvestedinnon-governmentcompaniesandthiskindoftransformationwillmaketherealeconomyinChinastronger.”
InternetfinanceisnowflourishinginChina.Gibbaddedthatoverthepastfiveyears,some5,000newfinancialtechnologycompaniesenteredthemarketinChina,whichhasinjectedastrongmomentumintothedevelopmentofthecountry’seconomy,especiallytheprivatesector.
MioTakaoka,managingdirectorofJapan-basedMonexVentures,believesthatChinahasadvantagesintermsofpromotinginnovationinfinance.“Chinahasathrivingecosystemintermsofinnovation,secondonlytoSiliconValleyperhaps.Therearemanypeoplewithaglobalmindsetandalotofentrepreneurialtalent.Andtherearelotsofopportunitiesforcompaniestobringnewtechnology.”
RespondingtoconcernsaboutChina’smountingdebt,JiaKang,presidentofChinaAcademyofNewSupply-SideEconomics,opined,“Wehaveseveralbillionindebtinstocks,soweneedtopushforwardwithstructuralreform,andthebondmarketshouldbegivenanewhighpriority.”
Brexit:AHotTopicatSummerDavos
ThenewsthatBritaindecidedtoleavetheEUafterarecentreferendumshockedtheworld,dominatingtheopeningconversationsatthe2016AnnualMeetingoftheNewChampions.
SomeparticipantsexpressedtheirworryaboutBritain’sdecisiontoleavetheEU.“Itcreatesawholebunchofeconomic,financial,politicalandalsogeopoliticaluncertainties,”remarkedProfessorNourielRoubinifromNewYorkUniversity.
ConsideringthatBritainisanimportanttradepartnerofChina,concernabouttheimpactofBrexitisalsosurgingintheEast.
However,DavidLiDaokui,aneminenteconomistanddirectoroftheCenterforChinaintheWorldEconomy,believesthattheUKreferendumwillhaveanegligibledirectimpactonChina’seconomy.“Theprimarydirectimpactisreflectedinundulationsofforeignexchangeratesandtheflowofinternationalcapital,whichmayresultinlossesforsomeChineseinvestorsinBritain,”heexplained.
ChineseViceMinisterofForeignAffairsLiBaodongcalledBrexitashock,butnotacrisis.Hecalledonallstakeholderstoreactcalmlyandstayunited,torestoreconfidenceandmarketstability.“ChinawouldliketoseeastableandprosperousBritainandastableandprosperousEurope,”hesaid.