Companies in the traditional sector are becoming “traditional” through digital transformation.
On November 21, 2019, the “Innovation Economic Forum” officially opened in Yanqi Lake, Beijing, with about 500 influential politicians, corporate executives, technology innovators and experts from more than 50 countries and regions around the world. Scholars gathered here to propose solutions to the challenges in the process of economic transformation.
In the first round of the roundtable forum “From National Plan to Market: Exploring China’s Reform”, Shen Nanpeng, global executive partner of Sequoia Capital, said that the Chinese economy has shown strong momentum in the process of shifting to high quality development. The development of super-large technology enterprises and small and medium-sized enterprises complement each other to form an efficient and innovative ecosystem. China’s new economic enterprises have many bright spots in innovation breakthroughs in science and technology, empowerment and upgrading of traditional industries, and internationalization.
Former Australian Prime Minister Kevin Rudd, Ning Jizhen, Deputy Director of the National Development and Reform Commission of China, Xie Fuzhan, President of the Chinese Academy of Social Sciences, former US Trade Representative Charlene Barshefsky, and Chief of Mubadala Development Corporation Executives Hallerton Mubadala and Shen Nanpeng participated in the forum to discuss the new opportunities and new vitality brought about by China’s economic reforms.
The following are the main contents of Shen Nanpeng’s speech:
In the past few years, we have seen that the Chinese economy is still showing strong momentum in the process of transition to high-quality development, and a large part of it is benefited from the breakthrough of more and more business models in innovation and technology. . It can be said that China has established a dynamic and innovative ecosystem. The best choice for top graduates in colleges and universities is no longer just to go to the world’s top 500, many people will choose to start a business. The transformation of young people’s mentality and thinking and the release of engineers’ dividends are the source of vitality for the development of the new economy. As an investor, we will always keep up with the talents.
More and more incubators have provided important support for the growth of SMEs. Active VC institutions in China are also providing support for these enterprises. Many preferential policies such as loans and taxes are tilting towards SMEs. We clearly know that not all companies can become unicorns or oversized companies, but a healthy SME ecosystem is very important and more obvious in the service industry.
Today we are talking about the innovation economy. In the past 20 years, China has produced a number of international leading Internet companies, such as Tencent and Alibaba. In addition, we have also seen a trend that companies in the traditional sector are becoming “traditional” through digital transformation. For example, consumer goods companies will realize supply chain optimization through the application of new technologies, obtain better brand image and market communication effects through social media, achieve new breakthroughs in product sales through e-commerce, and enhance through different SaaS platforms and big data capabilities. Internal management efficiency and more. These applications are not limited to consumer goods companies, and all areas of automotive, real estate, education, and medical care are infiltrating.
We are also concerned that China is catching up in some areas that have been behind. For example, the biotechnology field has attracted a large number of talents with international perspectives, and the new drug approval process has been optimized and upgraded. These new changes have enabled Chinese companies to quickly catch up in areas such as biotechnology and medical equipment that have lagged behind international competition.
China’s dynamic and innovative ecosystem is also reflected in the increasingly competitive market. We will see the ups and downs of many companies, especially in the new economy, some companies will become industry giants, others may be eliminated in the competition, and industry integration is becoming more and more obvious. We have also seen many companies in the new economic field, such as Ctrip, bytebeat, etc., in the search for internationalization opportunities. Previously, China’s manufacturing industry sold overseas, and now the service industry has gone out. China’s new economic enterprises have played a hard battle in the fierce domestic market competition, accumulated rich experience, and have the opportunity to develop overseas with strong competitiveness.