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Innovation Tops Agenda At China Summit
by Winter Casey
Despite a growing economy, China still faces the challenge of learning to develop its own technologies instead of continuing to import them, according to government and industry representatives who attended the two-day China Business Summit, that ended Monday.
"A significant chunk of the profit has been ceded because we cannot buy core technologies right now," Chen Yuan, governor of the China Development Bank, said in a statement. "We hope to absorb technologies from abroad and adapt them into our own."
More than 500 business, government and civil society leaders from 27 countries participated in the World Economic Forum summit.
There was broad consensus that innovation and creating a healthy business environment are keys to China's economic success. Still, some panelists noted that companies need to be wary of China's complex regulatory environment and set high ethical standards. Other speakers said China must focus on improving intellectual property rights, produce more qualified workers and embrace democracy.
The government plans to invest in a wide range of fields to help "China leapfrog existing technologies and become more competitive," according to a summary from the summit.
Edward Tse, a managing director at the global consulting management firm A.T. Kearney, said many companies operating in China "are still not doing enough homework about the Chinese market, its regulations and the competition," and "it is very important for the local team and the corporate headquarters to be aligned on the company's business in China, in terms of strategic intent, risk appetite, investments required, financial and other expectations."
Maurice Levy, CEO of the French communications firm Publicis Groupe, and others said China's regulations and its poor intellectual property protection pose big challenges for businesses. Still, Wang Jingchuan, a senior adviser to China's State Intellectual Property Office, said there is a growing support and understanding for IP and the patent process.
Meanwhile, a leading Chinese telecommunications executive said the mobile telephone market will be influenced by an increase in users, demand for new business and new phone services.
"Due to competition, the mobile service providers gradually lowered their price to raise communication demand; therefore, mobile phone services are continuously growing," said Wang Jianzhou, group president of China Mobile Communications.
Wang said he strongly supports initiatives aimed at protecting the environment. Most mobile phones are sent to trash bins, he said. "I strongly support environmental protection."
Wang expressed support for a project dubbed the "Green Box," which was jointly launched at the end of 2005 by China Mobile, Motorola and Nokia. The project provides an environmentally friendly solution for used mobile phones and phone batteries that are collected across the nation.
Wang also said China will be able to sustain its growth in the telecommunications industry via economic development and the development of technology. "The Chinese government's competitive policies and the four domestic telecommunication service providers have helped to create a better atmosphere to carry out effective competition," he said.
In other topics at the summit, Chen Tonghai, chairman of China Petroleum and Chemical, said China's institutions are producing too many researchers but not enough engineers.
The nation is hampered by a lack of experienced and skilled workers, A.T. Kearney's Tse said.
Baba Kalyani, chairman of the Indian automobile components manufacturer Bharat Forge, said China needs to improve its education systems. Meanwhile, Yasuhisa Shiozaki, Japan's senior vice minister for foreign affairs, said human rights, democracy, freedom of speech and the rule of law should be strengthened.
China's Tech Ties To Europe
Chinese and European Union officials expressed support for strengthening ties in science and technology, according to a joint statement released at the conclusion of the Ninth EU-China Summit, which was held in Helsinki on Sunday.
EU and Chinese leaders also called for supporting a transparent and predictable regulatory environment, and they agreed on the importance of enforcing intellectual property laws and cooperating on high-speed electronic infrastructure and education.
Also in China, the Ministry of Culture has worked out a long-term mechanism for the audio and video markets to continue the success of the country's 100-day crackdown on piracy. According to a ministry official, the mechanism, based on the principle of "stringent management and tough punishment," orders both routine checks and occasional raids of stores that sell compact discs and digital videodiscs, and for the establishment of a register of offenders.
And Yahoo China, one of the country's leading Internet search engines, has become the second defendant in a legal campaign launched by a grassroots Internet organization against "hooligan" software applications.
The Beijing-based Anti-hooligan Software Federation began court proceedings against Yahoo China on Monday, accusing the search site of the forced installation of immovable software, principally Yahoo Assistant, on Internet users' computers. Yahoo Assistant is a browser "helper" for Internet Explorer. It appears automatically and without permission.
Elsewhere, Infineon Technologies announced on Tuesday the opening of a new factory in Malaysia. The company said it has invested some $1 billion in the plant and plans to hire about 1,700 people. Infineon is Europe's second-largest maker of semiconductors.
Back in Europe, tech industry representatives and others will convene Nov. 6-7 in the Czech Republic for the eighth annual European Conference of the International Technology Law Association to discuss global technology and telecom issues.
Chamber Wants Standard For Data Transfers
The International Chamber of Commerce has drafted a standard form that companies in all 25 EU countries can use when they are transferring personal data outside the European Union.
Companies have been challenged by tough European legal restrictions and different application forms in each EU nation. The chamber also said it believes that EU data-protection authorities would benefit from a more streamlined process. The proposed form has been submitted to the working group of European data-protection authorities for review.
"I welcome this ICC initiative, and hope that it will lead to a more streamlined and efficient procedure," Billy Hawkes, Ireland's data-protection commissioner, said in a statement.
In other news, Unisys Australia has signed an agreement to develop a biometric and identity authentication solution with the Australian government. The company has signed a contract with the Australian Government Department of Immigration and Multicultural Affairs to initially work on biometric technology that will be used in immigration detention centers.
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