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Innovation proves driving force in China

China Daily | Updated: 2017-09-22 08:33

Innovation proves driving force in China
LI MIN/CHINA DAILY

Editor's Note: The Communist Party of China will hold its 19th National Congress on Oct 18. In the runup to the meeting, China Daily asked prominent company executives to provide their views on economic developments here and the country's global leadership role. The first two are Jeremy Hunter, president for Henkel Greater China, and Thierry Garnier, president and CEO of Carrefour China.

What has been China's biggest achievement during the past five years and what is its most notable change?

Innovation proves driving force in China

Jeremy Hunter, president for Henkel Greater China, which is part of Henkel Group, a multi-national consumer and industrial goods company [Photo/China Daily]

Jeremy Hunter: It has to be China's transformation toward becoming an innovation-fueled economy. China is upgrading its manufacturing industry to become more high-end, environmentally friendly, intelligent and service-based. This is shifting focus from "productivity expansion" to "productivity enhancement".

Thierry Garnier: During the past five years, I was deeply impressed by the energy, speed and innovation of China. The rapid economic development demonstrates the vitality of China's market.

The past five years saw the emergence of services designed to help consumers. The introduction of shared bicycles solves "the last mile "problem. The development of O2O (online to offline businesses) makes life more convenient.

For enterprises like us, this offers a wide spectrum of reference data, based on the purchasing habits of customers. This enables us to have a sharper insight into their needs.

What three words would you use to describe China today?

Hunter: Innovative would be one. China is shifting toward an innovation-driven economy. For example, the country is arguably the world's leader in e-commerce and mobile payment, as well as the home of leading internet companies such as Alibaba (Group Holding Ltd) and Tencent (Holdings Ltd).

Sustainable would be another. China has prioritized sustainable development as an important part of its national agenda.

Finally, I would say collaborative. China is becoming an increasingly important force to foster regional and international cooperation.

Garnier: Innovation, openness and happiness represent the feature of China today. Entrepreneurs are seeking to propagate Chinese culture, commodities and concepts worldwide with innovations.

Meanwhile, they also modestly absorb technologies and cultures from around the world, and actively communicate and cooperate with nations worldwide.

What is the biggest challenge China faces and how can the country overcome it?

Hunter: As continued economic expansion exerts an increasing strain on the environment, one of China's biggest challenges will be to balance economic growth with sustainability. This is not limited to China, but applies to all countries around the world.

To overcome this, we need innovative solutions to optimize our processes and reduce, if not eliminate, environmental impact. We also need policy and societal support to achieve our goals together. China is already making progress in overcoming this challenge.

Innovation proves driving force in China

Thierry Garnier, president and CEO of Carrefour China, which is part of Carrefour SA, one of the largest hypermarket chains in the world [Photo/China Daily]

Garnier: China has been confronted with the issue of balancing its eastern and western economic development. Recent years witnessed the efforts of the Chinese government to narrow the gap between its western and eastern regions, with significant success. The rapid progress of China's digital and transport technologies will help transfer the resources of rich areas to western regions in a better way.

For Carrefour, we cooperate with the government to construct a more complete retailing system, while developing new technologies and launching new projects. These include Direct Purchase and China Quality Line with QR codes.

We prioritize natural fruit and vegetable production areas, including those in western regions. We are delighted to see income growth of farmers in central and western regions increasing through this cooperation and technical exchange. The project also enables eastern and western consumers to experience high quality produce at better prices through our store network and online business.

What are your expectations for the 19th National Congress of the Communist Party of China and what key issues will you be watching for?

Hunter: There is huge global attention on the Congress, especially around the composition of the new Chinese leadership. Regardless of any changes, I expect the Congress to reaffirm China's development agenda and strategic priorities.

Garnier: Carrefour has been in China for 22 years and our exploration and innovation of various formats are inspired and supported by national policies. We have grown together with the country and we change together.

As for the 19th National Congress of the Communist Party of China, I'm looking forward to the policies to maintain fast economic growth. A fast-growing economy in China will offer us a more stable environment and will influence the future development of the retail industry.

What is your impression of President Xi Jinping?

Hunter: I think he is a very visionary leader. The Belt and Road Initiative and the Asian Infrastructure Investment Bank are great examples of his forward-looking proposals. On the domestic front, he has also advocated for China to carry out industrial upgrading by developing smart manufacturing.

Garnier: President Xi Jinping has unique political wisdom. We can see China is leading the world in many aspects, such as the digital economy, culture and industry under the leadership of President Xi.

His globalization (views) at the World Economic Forum in Davos earlier this year was of considerable significance for economic development, cultural integration and resource-sharing worldwide.

How do you view China's role in the world today?

Hunter: The country is already playing an indispensable role as it takes a more proactive part in shaping the future of the global economy. China is vital for the stability of the global economy and is also increasingly creating value for the world through its innovation.

Garnier: As the second largest economy in the world, China shoulders important missions in the globalization process. This is not only about trade and economic exchanges with different countries, but also about export values and culture.

The country today demonstrates an overwhelmingly rapid development trend in terms of culture and economics."Made in China 2025" is gradually transforming into "Innovated by China", with new brands, new products, and new technologies.

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