Embracing Innovation

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  The Annual Meeting of the New Champions 2013, also known as Summer Davos, opened in northeast China’s port city of Dalian on September 11, with the theme of Meeting the Innovation Imperative.
  History tells us that crisis always calls for innovation. The economic crisis in the 1920s and 1930s, which swept up the whole world, was solved by reform and innovation among major economies. Innovation is inseparably connected with reform. Developments in technology, business models, systems and mechanisms are also reforms.
  Since the international financial crisis erupted in 2008, the Chinese Government has carried out a 4-trillion-yuan ($654 billion) economic stimulus plan. Such a big driving force helped the Chinese economy recover soon. However, such investment-driven economic growth is not sustainable. After the fourth quarter of 2012, China’s economy once again slowed. Many China watchers even predicted a hard landing for the Chinese economy.
  This year, China has resorted to reform and innovation to stabilize its economic growth. Just as Premier Li Keqiang said at the opening ceremony of the forum, when the economy goes down, enhancing growth through short-term stimulus policies is a good solution; however, this cannot solve indepth problems. Therefore, China has chosen a strategy that both benefits the present and favors the future to keep macro policies stable.
  The Central Government now is carrying out a series of policies that would achieve economic upgrading through economic transformation. Recent economic figures have proved the effectiveness of such measures, as the Chinese economy has regained its momentum and has probably entered a sustained and stable growth stage.
  China’s economic recovery may provide a lesson for other economies in the world that reform and innovation remain the driving force behind recovery and prosperity.
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