Accelerate Economic Innovation and Boost Corporate Confidence

\"I am deeply impressed by theword 'innovation' that Presi-dent Xi Jinping mentionedmany times in his address tothe opening ceremony of APEC CEOSummit. He said it is important todeepen reform with powers ofinnova-tion， which is quite encouraging forus，\" said Sheng Jia， CEO of Net CreditFinance who attended the summit forthe first time.

After the 22nd APEC LeadersInformal Meeting held on Novem-ber. 11 in 2014， APEC Consensus onInnovation-based Development， Re-form and Growth (hereafter referredto as consensus) mentions that Asiashalllead the world economic growthand innovation shall be invigorated tokeep strong growth momentum. SriMulyani Indrawati， Maraging Directorand Chief Operating Officer of WorldBank， says that although the year 2014is quite disappointing for the worldeconomy， developing East Asia andPacific will remain the fastest-growingregion in the world. APEC emergingmarkets and developing economies areexpected to account for about l/3 0fworld growth.

Chen Fengying， researcher ofChina Modern International RelationsResearch Institute， says that the currentworld economy lacks vigor， vitality andgrowth points. The innovation economyand reform proposed by China is an im-portant approach to get out of the pre-dicament. She also said that the purposeof doing reform and innovation is forgrowth and all the developmentalissuesneed to be resolved by growth. Othercountries and regions also face the samequestion.

Sopport Network Financial Innovation

At this APEC Financial Minis-terial Meeting， people from Chinesecompanies share their practical experi-ences of using big data to finance smalland medium-sized companies throughChina digital commerce platform.

The consensus emphasized thatthe Asia Pacific region shall stick toinnovation-based development andreform to cooperate in five pillar areasincluding economic reform， new econo-my， innovation-based growth， inclusivesupport and urbanization. The consen-sus also touches upon points includinghow to explore and develop the networkeconomy to support network financing，building cooperation policy frameworkto provide service for economic growth，creating an open and inclusive networkeconomic environment to provide se-cure， efficient， low-cost and inclusivefinancing services to delivering benefitsto everybody.

Sheng Jia is very excited aboutthis prospect. He told China's ForeignTrade， \"Our company is dedicated tonetwork financing， an innovation-based business. Our business scope nowcovers p2p， public funding， networkpayment and other network financ-ing business. We are also involved inglobal projects in the U.S.， Europe andHong Kong. We have been thinkingabout expanding our p2p business over-seas and keep innovating our businessmodel. I believe through our sustainedefforts， we can invigorate the financ-ing industry not only in China but alsoaround Asia and the world.\"

He continued， \"Our company wasstarted in 2012 and now ranks first inthe public financing network and stockcrowd funding in China. We focus onareas like technology， cultural innova-tion and public welfare and these areascontain a lot of creative ideas but lackscapital funding. We mainly focus onstart-up factories in stock crowd fund-ing， especially technology-orientedcompany. These companies have cre-ative ideas but lack capitalin their early-phase business. In the P2P realm werank top 3 in terms of single-monthtransaction value.\"

At the summit forum， CamsingGlobal VP Ms. Liu Hui raised thequestion ofhow to assess the impacts ofnetwork financing on current financingindustry. Wang Hongzhang， Chair-man of CCB， said that \"the networkfinancing represent modern financingdevelopment trend and prospect and itsrapid development will challenge thebottom line of financing regulations. Itis a global issue that happens in a lot ofcountries and regions. Insiders of Chi-nese financing industry shall work withtheir global counterparts to deepencommunications and coordination toresolve the issues of network financingand traditional financing.\"

The emerging network financingstill has large development potentialin the new round of economic growth.Sheng Jia thinks that the network fi-nancing has huge potential. He hopessuch growth rate could continue andthe government shall implement vari-ous approaches to regulate and promotethe industry development. \"I thinkthe industry will be driven by servicein the next 5 t0 10 years， includingindustry upgrading. The investmentopportunities mainly exist in the cross-ing between network industry andother industries， like medical service，education and financing.\" He added， \"IfRMB becomes a major settlement cur-rency， this will be very important to thenetwork financing， because capital isthe foundation of all.The easy and con-venient payment approach will facilitatecross-region transactions， on which Ihold confident expectations.\"

Enhance Intellectual PropertyRights Protection

The Consensus points out thatunder the innovation-based growth， thevoluntary technology transfer， promo-tion and commercialization shall befurther promoted and protected. It shallreaffirm the importance of comprehen-sive and balanced intellectual propertyrights system， to share experiences andknowledge， develop innovation experts，strengthen innovation capacity build-ing， improve innovation environmentand seek sustainable innovation devel-opment.

Stephen Groff， Deputy Directorof Asia Development Bank， points thatthe comparative advantages of Chinaand many Asia Pacific countries in laborintensive and capitalintensive manu-facturing industry has decreased. So itiS of vital importance to change towardknowledge-based economic growthmodel.

Liu Hui said， \"I am impressed byPresident Xi's address that it containsthe idea of 'win-win situation'， ratherthan the philosophy of'winner takes all'.Our company is dedicated to brand op-eration and our core competency lies inthe brand operation and brand introduc-tion capaaty.\" She told Chinas ForeignTrade that their company has four major business， includingbrand authorization， brand design， theme recreation projectdesign and operation， and cinema and sports product develop-ment. \"We have introduced Real Madrid brand and apply itto various industries; we cooperated with CCB credit card tocreate transformer-brand credit card; we design Huskies homeproduct brand and help put CCB commercials into the movieof Transformers.\" she added.

She thinks that the innovation-driven green economyproposed by this APEC summit caters to its corporate busi-ness. Now brand authorization is still rare in China， so shehopes her company could have the chance to cooperate withother countries to integrate resources， introduce foreign brandsinto China or promoting Chinese brands into the world byredesign the brand and maximize the brand value. It can alsoprovide package service for key customers to spread the brandreputation.

However， she also expressed concerns that although themarket potential is huge， there is still lack oflegal regulationto protect the intellectual property rights. When they intro-duce brand elements from abroad and promote them into themarket， there are copycat products in the market. She felthelpless about this， \"We have to pay very high costs to gainthe brand authorization and invest a lot in RD design andmanufacturing. But the low-cost copycat products still giveus a lot of challenge. We hope there will be more protectionson intellectual property rights and innovation.\"

Give more support to innovation of small and medium-sized companies

The Consensus encourages member countries to providemore support to innovation activities of and create favorable fi-nancing environment for small and medium-sized companies.Many company representatives express their feelings.

Small and medium-sized companies employ 80% of thesociallabors， making them an important force to stabilize soci-ety in China.

\"President Xi emphasized the 'new normal' of Chineseeconomy. The economic growth rate will change of highspeed to lower high speed. The third industry demands willplay an important role and innovation will become drivingforce for the economic growth. \"In terms ofinnovation， wepay high attention to product and technology innovation，and invest a lot in process reform and technology RD\" saidXing Jinrong， VP of Huida Sanitary Ware CO.， Ltd.

You Lizhong， President of Ningbo Meijia Tool Co.， Ltd，has been working in foreign trade industry for about two de-cades. He told China's Foreign Trade that in the past Chineseexport mainly relies on price advantage. Since 2008 financialcrisis， his company has made structural reform in its productdevelopment， market positioning and sales model by makingaccurate and detailed analysis. In the past his company's prod-ucts mainly sell to Europe and North America， and not beginto move into Brazil， Russia， Australia and other emergingeconomies. Its tool box products now have 600-800 varieties，including electric tool， hardware box， military police box， cam-era box， outdoor car-used repair box， precision instrument box，gun box and home-used car repair box. In the past the prod-ucts were mainly sold to wholesalers， while now the marketingmodel changed to industrial chain that connecting supermar-ket shelfwith factory. The company products enter supermar-ket directly which have more price advantage.

He said， \"Chinese foreign trade companies shall take intoaccount local market consumption ideas when going overseas.The design and manufacturing of products shall be combinedwith the market features and customer reception. The companyshall know more about the market， the supermarket and con-sumption needs， to incorporate such findings into the manu-facturing and RD. It is also important to introduce advanceddesign approaches and traditional manufacturing experiencesto lower costs and raise competitiveness.\"

How do small and medium-sized companies do foreigntrade? You said that ifinvesting into the overseas market， it isimportant to stabilize traditional market， develop middle andhigh-end markets， as well as prepare for the long-term strate-gic development. This will require a lot of market research todevelop products with different positioning and price level， tocater to customized needs in different markets. He listed an ex-ample that his company provides small and delectable productsfor the Japanese market and large-sized products for Europeanand U.S. market.

However， he still hopes that the Chinese governmentcould formulate a long-term plan to provide more support forsmall and medium-sized companies， to facilitate their overseasbusiness development.

Luan Lixin， chairman of Xinjiang Erdaoqiao CulturalTourism Group and deputy director of Xinjiang CommerceAssociation， expressed the same feeling. He said，\" I hope thissummit will bring tangible support to our private business inXinjiang and along the silk road economic belt， especially infinancing.\" He said that now Chinese small companies facegreat financing difficulties and high interest pressure andtheir profit margin has been squeezed. He hopes the govern-ment will solve financing problem for private business andlower financing costs， which he thinks will benefit the long-term development of small and medium-sized companies.\"Ignoring small and medium-sized companies is ignoringthe fundamentals. So to solve the financing difficulty andlowering financing costs will be the true support to small andmedium-sized companies.\"He added.