Guangdong has been playing a leading role in reform and opening-up, with great enthusiasm for reform. In the future, it must be able to make great achievements in innovation-driven development following the principle to give priority to innovation to promote economic development of Guangdong to enter the “new normal” stage.

 

On February 7, the Third Session of the 11^th CPPCC Committee of Guangdong Province was held, and representatives of the CPPCC members from different circles had a symposium, which lasted for two hours and forty minutes. The attendees showed great enthusiasm and 17 of them gave speeches. Nine of them talked about innovation-driven development, while four focused on rule by law.

 

“Innovation has been the ultimate cause of the leapfrog development of the Chinese economy.” The reform and opening-up of China in the past more than 30 years fully manifest these words of Premier Li Keqiang at the opening ceremony of the 8^th Summer Davos. Especially in Guangdong, which serves as a pioneer for reform and opening-up and has Shenzhen and other special economic zones, economic innovation has been an engine promoting a high-speed development for many years. This has laid a solid foundation for the economic development of Guangdong. With the change of the global economic pattern, traditional economy centering on manufacturing has entered a "dead lane". There is a problem in urgent need of solution: where to find the "rich mine" for the economic development in the future?

 

Let's have a look at the cost and profit structure of a kind of popular high-end mobile phone: a unit price ranging from USD649 to 849, a gross profit rate of about 70% and a manpower assembly cost of only USD4 to 4.5. The assembly factories at the downstream of the “food chain” only have the "residues”. Again, such cruel fact proves that, without innovation, there is no way for further development and transformation of extensive and low-end economy.

 

Premier Li Keqiang said at the opening ceremony of the 8^th Summer Davos that, the Chinese economy should be able to maintain a medium-high growth rate and move toward medium-high level of development, and the "two hands" of the government and the market should be taken good advantage and "two engines" should be started. The first is to form up a new engine to promote public business launching and innovation. The second is to reform the traditional engine to provide more public products and services. The encouragement for innovation will directly promote technical and product innovation. Take Alibaba's listing in the United States for example. The success of Jack Ma and Taobao.com made many people surprised of the new economic miracle brought by innovation. Strictly speaking, it is still Internet application and innovation at lower level. There is still great potential for profound industrial reform and innovation.

 

The objective to activate market potential and drive a further development by innovation cannot be realized by words. In the practice, all the mechanisms that are adverse to innovation should be adjusted. There will be no economic innovation without related mechanism, management and mode innovation. Reform of administrative examination and approval should be carried out to change the systems with rigid management, less incentives and restrictions on productivity and creativity into flexible and incentive ones and get rid of the obstacles placed by some authorities for enterprises. To streamline administration and delegate power to the lower levels is one of the tasks. The other tasks also cover the fields of education, finance, tax and business starting. In addition, a package supply system should be established.

 

Guangdong has been playing a leading role in reform and opening-up, with great enthusiasm for reform. In the future, it must be able to make great achievements in innovation-driven development following the principle to give priority to innovation to promote economic development of Guangdong to enter the “new normal” stage. During the visit to the south at the beginning of the new year, Premier Li Keqiang gave an appraisal on Shenzhen Qianhai Webank (the first Internet bank of China) that, “A small step of Webank marks a big step of financial reform.” He even witnessed the first loan operation of the Internet bank. It is a great approval for the innovation-driven development of Guangdong and shows a kind of expectation.

 

There are both challenges and opportunities, as well as difficulties and solutions. However, as long as we continue to work bravely to make innovations with clearly-defined objectives and guidelines and proper measures, we will greatly promote further innovative-driven development and have a bright future from the new start.

Source: Guangzhou Daily, February 9, 2015