CTPLO Blog

The ARJ21-700 jet is one of a series of initiatives launched by the ruling Communist Party to transform China from the world's low-cost factory into a creator of profitable technology in aviation, clean energy and other fields. China is one of the biggest aviation markets but relies on foreign-made aircraft. Beijing wants to capture more of those sales.

——First made-in-China jetliner makes debut commercial flight，by The Times of India

comment

In recent years, the global aviation industry has grown by leaps and bounds. The ARJ21-700 jet not only reflects China's ability in innovation, but also boasts one of the sign projects of China building itself into innovative country. It brings new energy to international competition in the future. 

As customers became more discriminating, entrepreneurs learned to move from imitation to incremental innovation, improving their products and their processes. The "fit for purpose" pattern represents innovation driven by market necessity. But many Chinese companies have chosen a more ambitious route of innovation by choice: innovation that drives the market rather than being driven by the market.

——The "Three Phases" Of Chinese Innovation, by Forbes

comment

From copying to incremental innovation, then from followers to world standard, it has been fascinating to watch China's transformation over the past decades. It will be even more fascinating for the whole world to see China being a world innovative country and a global scientific core in 2050. 

China will have evolved from an "innovation sponge", absorbing and adapting existing technology and knowledge from around the world, into a global innovation leader. To date, when we have evaluated how well Chinese companies commercialize new ideas and use them to raise market share and profits and to compete around the world, the picture has been decidedly mixed. China has become a strong innovator in areas such as consumer electronics and construction equipment.

——Gauging the Strength of Chinese Innovation, McKinsey Quarterly

comment

The extent and speed of China's advances in innovation will have significant implications for the country's growth. Multinationals and Chinese companies are now using China as an R&D base for global innovation. A more innovative China ought to be good for a global economy that seeks new sources of growth. 

Some of its achievements are visible: a doubling of the global percentage of patents granted to Chinese inventors since 2005, for example, and the growing role of Chinese companies in the wind- and solar-power industries. Other developments—such as advances by local companies in domestically oriented consumer electronics, instant messaging, and online gaming—may well be escaping the notice of executives who aren't on the ground in China.

——A CEO' s Guide to Innovation in China, by McKinsey

comment

Chinese innovation is evolving in diverse ways and at an uneven pace across a range of different industries. Dynamic domestic players are helping China churn out a growing number of innovative products and services.

Governments can and do play a critical role in spurring innovation–actively creating new markets, instead of just fixing them. In China, the state-owned development bank is offering billions of dollars in loans to some of the country's most innovative companies, including Huawei and Yingli Solar. These types of public investments are critical in creating and shaping new markets.

——The Creative State，by Project Syndicate

comment

In some of the world's most famous innovation hubs, the government has played a key creator role, envisioning and financing the creation of entire new fields, from information technology to biotech, nanotech, and green tech. Especially for China's innovative companies, the goverment played a crucial role in their going abroad strategy. 

The unique circular high-speed railway in China's Hainan Island, the world's first such train around a tropical zone, has been operating smoothly since last year, braving extreme weather conditions. Considering the characteristics of high temperature, high humidity and strong corrosion on the tropical island, a number of new technologies, materials and techniques have been used in the construction of the 653-km rail belt.

——This China Train can Beat Heat, Quake and Typhoon, by Times of India

comment

Chinese high-speed train industry leads in the world. The construction of Hainan high-speed railway shows that independent innovation capabilities of Chinese high-speed train have achieved higher stage, and may contribute to expand overseas market.

In the race for driverless car technology, Chinese companies are taking big strides competing with the likes of Google and Tesla. With the Beijing Motor Show under way, the days when the country's domestic car firms was brushed off as mere copycats are well and truly over. And a lot of this year's buzz is around driverless cars in particular. In past years, innovation might have come from Silicon valley, but Chinese companies are pushing ahead.

——China's Push for Driverless Cars Accelerates, by BBC

comment

Innovation is the primary driving force for China's development. With years of fierce competition, Chinese enterprises have realized the importance of innovation and intellectual property in global market, which certified again by enterprises of Chinese driverless cars.

n building its relationship with FIFA, Chinese conglomerate Dalian Wanda Group Co. is filling an opportunity that opened up after some sponsors walked away and a corruption scandal erupted, tarnishing the soccer federation's image. The Beijing-based entertainment and property giant will become FIFA's first major Chinese partner, with the highest level of sponsorship rights including the next four World Cup tournaments.

——China's Dalian Wanda Steps in to Partner with FIFA, by Wall Street Journal

comment

With the development of Chinese economy and mature overseas layout, Chinese enterprises pay more attention to brand promotion in international field. Wanda is able to obtain top-level resources in world sport industry by cooperating with FIFA, which is a great step to Wanda's global arrangement.

Huawei has signed a declaration confirming that it will be developing a joint Innovation Centre to develop "Safe City" solutions aimed at helping public administrations react to threats. The Innovation Centre will develop Safe City solutions, an all-in-one, nation-wide safety and surveillance plan, which will combine alarm reporting, data transmission, video surveillance, etc.

——Huawei to Develop "Safe City" Solutions in Malta, by Times of Malta

comment

Owing to years of global experiences and good overseas IPR layout, Huawei becomes more competitive in the world market. The 'Safe City' solutions in Malta show that more foreign public administrations believe in Huawei's product and service.

World Robotics recently published their annual update on the industry. It captures very clearly the trend in China towards higher value added production and towards substituting capital for labor. They believe global sales of multipurpose industrial robots last year was around 162,000, of which 25,000 were sold in China, slightly fewer than were sold in North America or Japan. By only 2016, they forecast that China will be consuming 38,000 robots, 20% more than either Japan or North America is expected to buy.

——Coming To A Factory Near You: Chinese Robots, by McKinsey

comment

Robotics is one of the booming industries driven by the process of transformation from low value-added manufacturing to high value-added manufacturing of China. The report of WIPO shows that Chinese applicants account for more than a quarter of patents worldwide in the area of robotics since 2005, which demonstrates China's competitiveness in the field.

Over the past five years, China-based companies have successfully participated in high-profile infrastructure projects. In the rail sector about 80 per cent of Malaysian rolling stocks are Chinese made. The Malaysian rail business is so lucrative that China Railway Construction Corporation (CRCC) opened a $97m rolling stock manufacturing plant in the country in July 2015. 

——China Takes the Lead in Malaysian Mega-Projects, by Financial Times

comment

The increasing projects of Chinese companies in Southeast Asia show that Chinese companies have kept footholds in overseas markets because of technological innovation and independent intelligent property rights.

China has made is a dramatic shift up the value curve in terms of what it manufactures. It is not about t-shirts and toys any more, but about much more impressive stuff. As long as it continues to invest in R&D and get more people into higher education, the country formerly known as "the workshop of the world" looks set to evolve into a much more exciting economy.

——From White T-shirt to White Collar: Meet the "New China", by Money Observer

 comment

 With the encouragement of innovation and much more R&D investment in recent years, China is supposed to be an innovation-oriented country.