Patent/trademark-related News in China (updated twice a month)
Automaker sees production, sales surge for NEVs (2017-10-12)
Huawei wins a victory in Samsung patent dispute (2017-10-12)
Delegate makes problem solving his mission (2017-10-12)
Scientists asked to get more entrepreneurial (2017-10-11)
China a powerhouse of innovation: UBS (2017-10-11)
China reaffirms commitments to IP law (2017-09-29)
Emerson praises nation's innovation-driven economy (2017-09-29)
Powering toward a clean energy future (2017-09-27)
AI will make robots smarter: Tech executive (2017-09-26)
18-year-old invents auto high-low beam switcher (2017-09-26)
High-tech transforms country's ties with Europe (2017-09-25)
Emerson boss salutes Chinese innovation (2017-09-25)
Young passion poured into indigo dye (2017-09-22)
Xiaomi's giant strides aim to recover lost ground (2017-09-22)
IPR protection boosts internet economy (2017-09-22)
Fighting China's counterfeits in the online era (2017-09-19)
China concentrates on sci-tech innovation (2017-09-18)
CETC speeds reform efforts (2017-09-16)
Domestic rivals make most of falling Apple (2017-09-16)
Electricity not always shocking (2017-09-15)
Mobike wins lock patent dispute (2017-09-15)
China steps up efforts to support innovation (2017-09-15)
High-value patents key to growing industry (2017-09-14)
The four major breakthroughs in modern China (2017-09-13)
Intellectual property progress (2017-09-12)
Mainland grows into nanotech power (2017-09-11)
Chinese happy to pay for content on web (2017-09-11)
New growth drivers expanding fast (2017-09-09)
China's patent operations more than 170,000 in 2016 (2017-09-06)
Reforms advanced to remove innovation barriers (2017-08-31)
Turning new ideas into actual products (2017-08-31)
Customs crack down on infringing exports (2017-08-31)
IPR courts concluded 33,000 cases in three years (2017-08-30)
China aims high in nanotechnology (2017-08-30)
Capital's key tech strategic engine (2017-08-28)
3-D printing 'is booming' (2017-08-25)
China goes up index's innovation rankings (2017-08-24)
Ford, Geely clash over U.S. brand names (2017-08-21)
Accord with Israeli university signed (2017-08-18)
Mobike defends its lock system in court (2017-08-17)
Experts call for IPR protection of online images (2017-08-13)
Lawyers work to resolve cross-border disputes (2017-08-10)
Turning smartphones into smart profits (2017-08-08)
New concepts optimize China's economic development (2017-08-08)
Red Bull license renewal causes rifts (2017-08-03)
Major State-owned miner strikes gold with innovation (2017-08-03)
Human-machine future seen in blink of an eye (2017-08-03)
Self-made cooling jacket a hit for Wuxi electricians (2017-08-01)
Cheetah Mobile wades into artificial intelligence (2017-07-31)
Regulation streamlines application for patents (2017-07-27)
Innovation-driven firms increasingly look abroad (2017-07-27)
New mega medical imaging plant rises (2017-07-25)
Firm fined for patent breaches (2017-07-25)
Patent use increases, but improvements still sought (2017-07-20)
Cradling an enterprise with the bottle (2017-07-14)
Zone pumps money into service providers (2017-07-13)
SF gets OK to use drones for air deliveries (2017-07-07)
Research results commercialized at Guangdong fair (2017-07-06)
Chinese characters go alphabetic (2017-07-06)
China is becoming an innovation-driven developing economy, and innovation, if continued, will help the country ward off the "middle-income trap", according to a recent HSBC report.
While some foreign observers hold pessimistic views on the slowdown of China's economic growth, new growth drivers are rapidly evolving, the report said.
China is the only developing economy in the top 25 most innovative countries, according to the report, which cites the Global Innovation Index compiled by the World intellectual Property Organization (WIPO).
China is also the world's third largest patent originator, and Chinese patents rose to 43,168 in 2016, up 44.7 percent from the previous year, WIPO data showed.
The innovation boom is being driven by economies of scale, financial and manufacturing eco-systems, good infrastructure and supportive policies.
Dynamic financing in different sectors that feature venture capital investment, and a strong network of suppliers also provide an eco-system for China's success in innovation, the report said.
Across China, urbanization is gathering large clusters of consumers, who are connected with the internet. Over 750 million Chinese, more than half the population, are now online, 96 percent of them via smartphones, according to the China Internet Network Information Center (CNNIC).
Rapid urbanization allows China's internet companies to quickly gain high numbers of users, the report said, referring to the cases of Chinese internet giants Baidu, Alibaba and Tencent.
Over the past decade, the central government has put in place measures to support innovation by investing in education and improving human capital and physical infrastructure, which "enabled productivity to rise", noted the report.
In the report HSBC acknowledged Chinese innovation as a sign of the "dynamism of the Chinese economy" and a "vital ingredient" for the country to change its future economic growth model.
China's current innovation is mostly driven by consumer-facing companies, and more efforts are needed to achieve progress in knowledge-based areas of science and technology.
The Alibaba Group announced Wednesday it will set up a research institute, the DAMO Academy, and invest over 100 billion yuan (about 15 billion U.S. dollars) over the next three years in the development of advanced technology.
The academy aims to attract world-class talent in such areas as quantum computing, machine learning, basic algorithms and network security. DAMO stands for discovery, adventure, momentum and outlook.
China places a high value on protection of intellectual property rights (IPR), and hopes that the U.S. will seek cautious action to avoid hindering the sound growth of bilateral economic and trade relations between the two countries, a trade official said Thursday.
The comment came after U.S. representatives gave testimonies on Tuesday, alleging that China has committed "intellectual property theft."
At an International Trade Commission hearing on Tuesday, some groups alleged that Chinese firms stole ideas and software or forced firms to turn over intellectual property as part of the price of doing business with them, Reuters reported.
The report said that the IPR theft committed by China has allegedly cost the U.S. technologies and jobs.
"We have noticed media reports about the hearing. The China Chamber of International Commerce represented China's industrial and commercial industries by providing more than 700 pages of comments and relevant evidence to the Office of the U.S. Trade Representative before the hearing," Gao Feng, spokesman for China's Ministry of Commerce (MOFCOM), told the Global Times at a regular press conference Thursday.
In fact, there was only a small number of enterprises that questioned China's IPR protection at the hearing, while some companies and industrial associations have appealed to the U.S. government for cautious action in order to avoid harming the sound and stable growth of Sino-U.S. economic and trade ties, noted Gao.
China has been attaching great importance to IPR protection, and opposes any forms of unilateralism and protectionism, Gao said.
The U.S. is expected to take the whole picture of Sino-U.S. economic and trade relations as a starting point and comprehensively consider suggestions from all parties whose interests are involved, he said, noting that China hopes that the U.S. will act cautiously and respect the facts as well as multilateral trade rules.
"The Chinese government will closely watch the development of the investigation and will adopt corresponding measures at a proper time to safeguard the legal rights and interests of the country," said Gao.
China will promote the production of generic drugs - while encouraging the development of new medicines - according to remarks made at a China Food and Drug Administration news conference.
The State Council released guidelines on reforming new drug approval procedures on Sunday, addressing ways to boost innovation of drugs and medical equipment.
The government will periodically release a list of drug patents that are no longer valid, to guide drug companies in the production of generics.
New technological regulations will be also released to promote research and evaluation of generics, to speed up evaluation of the quality and efficacy of the drugs.
The protection of drug patents is in line with China's push to build itself up as an innovative country, while upgrading its pharmaceutical industry, said CFDA Vice-Minister Wu Zhen.
"We encourage innovation and we encourage generic drugs too," Wu said.
"When original patent terms lapse, sales of generics will cut down the price of those drugs, and lead to easier access for their clinical usage."
Currently, there are more than 4,000 pharmaceutical companies in China producing generic drugs.
Competition between them used to be unregulated and the quality of their products were sometimes uneven and unsatisfactory.
Analysts of the sector said that as a result China needed to put more effort into promoting innovation in the industry.
The guidelines propose the concept of a pharmaceutical patent linkage system, involving a combination of drug registrations and patents.
The CFDA is responsible for registration of medicines, while the State Intellectual Property Office handles patent applications.
The combination of the two sectors will enable the resolution of patent infringement cases before the drugs are put onto the market and reduce the cases of patent infringement caused by generic drugs, Wu added.
The guidelines suggest pilot programs for compensation for patented drug developers during the administrative approval procedure for new drugs.
The longer the approval process takes, the longer the delay will be for the launch of new drugs onto the market, and the closer to the expiry of the patent - reducing the revenues due to the drug companies and patent owners.
Wu said the government should therefore consider reasonable compensation.
The guidelines also call for a certain period of protection from wider commercial use for the drug developers' experimental data and research.
Those new measures were first defined in developed markets - including the US, Japan and Europe, in the 1980s and 1990s - to facilitate innovation in drug management.
Implementation of them in those markets were successful and stimulated the production of generic drugs, Wu said.
The guidelines will construct a scientific and systematic mechanism to protect the ownership of intellectual patents, he said.
It will also pave the way for more innovation in the booming pharmaceutical industry, especially in Chinese medicine, boosting development in all aspects of the sector, Wu added.
China's flair for innovation has led it to the forefront of exciting sphere of development
China is now the world's biggest patent owner and patent application filer in the business of intelligent connected vehicles, or ICVs - underscoring its rapidly accelerating technological capabilities in the cutting-edge field - a key report has found.
The Global Patent Watch on Intelligent Connected Vehicle Technologies, released by the Institute for Global Industry at Tsinghua University, surveyed patent numbers, applicants and characteristics related to the vehicle technologies.
The development of ICVs will be one of the critical paths for the automobile industry, and China has made an excellent start in the race, a Chinese media report cited Li Donghong, deputy director of the Institute for Global Industry at Tsinghua University, as saying.
The report said there have been more than 45,000 ICV technology patent applications around the world to date, including about 32,000 of them filed over the past 10 years.
The number of annual applications has been surging since 2009, with an average growth rate of nearly 20 percent.
Five countries have had their hands in about 92 percent of the world's ICV-related patents over the past decade, and China is taking the lead with its 37 percent share, the institute said.
Japan ranked No 2 with a share of 20 percent, the United States in the third place with 16 percent, and Germany's 12 percent and South Korea's 7 percent followed closely.
In 2015 alone, China's State Intellectual Property Office received 3,166 ICV patent applications, the most among peer countries including the US, Japan and Germany. The lead position was held by Japan before 2012.
However, Li said China still trails developed countries in the hot areas of ICV, especially in research and development of the technologies for driver assistance systems and onboard communications.
China's patent applicants on driver assistant and onboard communications were below the average, while the accumulated 8,764 applicants for autonomous driving contributed 61.8 percent to the world's total patents.
Over the past decade, the report said the country's patent applications were mainly in the fields of driver alert systems and advanced collision avoidance systems.
The two systems are among the hot areas also covering optical observation equipment, unclassified collision avoidance systems, driver assistant collision avoidance systems, navigation, lane-control and remote communications.
Yang Diange, dean of automobile engineering at Tsinghua University, said ICVs will be the way of the future for mobility development.
ICVs will be smart enough to be able to react in time to dynamically changing situations - involving a vehicle autonomously collecting information via its sensors, rapidly processing it and then issuing action instructions.
Furthermore, the vehicles will also connect with each other and with transportation infrastructure to help the car understand traffic conditions and help traffic control.
With the goal of helping the country's industry to get well prepared for the future development, Li suggested that Chinese auto makers "strengthen partnerships with up-stream and downstream companies in the value chain, and work closely with research institutes and universities".
He also believed that international cooperation with global peers and startups will help Chinese carmakers to make progress in innovation and result in improvements in core competences.
Beijing Electric Vehicle Co says that it expects to see a fourfold rise in new energy vehicle sales in the next three years, thanks to government support for the sector.
Zheng Gang, general manager of the company－the new-energy vehicle arm of State-owned automaker Beijing Automotive Industry Corp (BAIC), said its sales of NEVs would reach 500,000 by 2020.
"We have topped the domestic NEV market in terms of sales volume for four consecutive years," Zheng said at a Monday news conference in Beijing.
"Since 2014, our company has sold 124,000 NEVs, with the total mileage reaching 1.21 billion kilometers, roughly 3,000 times the circumference of the Earth, thus cutting carbon emission by 190,000 metric tons, equivalent to planting 740,000 trees," Zheng said.
"The number of NEVs sold in 2016 amounted to 52,000, an almost 74-fold increase compared to 678 in 2012, taking up 21 percent of domestic market share and snatching the fourth place globally," he added.
The company owes the significant jump in sales to its heavy investment in research and development.
It has invested a total of 3.62 billion yuan ($550 million) in R&D from 2013 to 2017, accounting for 20.35 percent of its total business revenue.
Currently, 45.1 percent of its employees are engaged in R&D, and those employees now own 2,219 patents and 1,053 patents for invention.
BJEV now has 10 different types of NEVs which can run between 200 and 400 kilometers per charge.
Its flagship NEV EU400 runs 460 kilometers per charge. The electricity cost for 100 kilometers is only eight yuan, one-sixth of that needed for fossil-fuel powered vehicles. Owners of the EU400 can save as much as 6,000 yuan each year if their mileage reaches 20,000 kilometers.
According to Xin Guobin, vice-minister of industry and information technology, the government is reviewing the timetable for phasing out the production and sale of fossil-fueled cars.
On Aug 28, MIIT unveiled a new regulation requiring most automakers to sell a minimum percentage of NEVs each year from 2019.
The new policy requires car makers that produce or import more than 30,000 conventional vehicles annually to sell 10 percent of NEVs in 2019 and 12 percent in 2020. Companies failing to achieve such a quota will either have to buy credits from other automakers or face a fine.
"This regulation is great news to us. It means the government has shifted its support to NEV enterprises from offering subsidies to market regulation", said Zhang Yong, deputy general manager of BJEV.
"China is the one of the biggest markets of NEVs in the world. What we do sets an example in the world (and) will have a significant impact for automakers in other countries," Zhang said.
Han Xiaoping, chief information officer of China Energy Net Consulting, said that BJEV started early in NEV research and has accumulated sufficient experience.
"Although China lags behind Western countries in the fossil (fuel) car era, with more policy support and technological breakthrough, we can prevail in the electric car era", Han said.
China rolled out a total of 350,000 NEVs in 2016. The country has manufactured and sold 346,000 and 320,000 NEVs, respectively, in the first eight months of 2017, a year-on-year rise of 33.5 percent and 30.2 percent, according to data from China Association of Automotive Manufacturers.
The same data predict that the total number of NEVs sold this year will reach more than 700,000 by the year end.
Huawei Technologies Co Ltd has scored a point in its patent dispute in China with its rival Samsung Electronics Co Ltd, which may weigh down on the South Korean company's business in the world's largest smartphone market, experts said.
The Patent Reexamination Board of the State Intellectual Property Office said on its official website that some of the patents involved in Samsung's lawsuit against Huawei are invalid.
Among the eight patents, five are not valid, one is partially valid and only two are valid, the office said on Sept 30.
The decision came amid mounting competition between two of the world's largest smartphone vendors. Huawei and Samsung are involved in a slate of patent disputes in China, accusing each other of violating patents related to mobile technology and design.
Of the 16 patents Samsung accused Huawei of infringing in 2016, 10 were announced to be invalid, accounting for 62.5 percent. There is still one patent awaiting a review decision from the authority, according to data compiled by Securities Daily.
Huawei and Samsung declined to comment on the story.
Li Junhui, an intellectual property expert at China University of Political Science and Law, said Samsung cannot sue Huawei with invalid patents. Part of its lawsuits will likely be revoked.
"This is a blow for Samsung's plan to defend itself in the intellectual property battlefield," Li said.
According to Li, the five invalid patents involve technology related to smartphone cameras, screens and basic telecommunication services.
The review decision also came after a Chinese court ruled in April that Samsung's Chinese subsidiaries must pay 80 million yuan ($11.6 million) to Huawei for patent infringement.
In June 2016, Huawei filed a lawsuit against Samsung's units in China, claiming that more than 20 models of the latter's smartphones and tablet products, including the flagship Galaxy S7 and the Galaxy S7 Edge, had infringed its patents.
One month later, Samsung sued Huawei and other companies in Beijing on accusations of patent violation, demanding 161 million yuan in compensation.
Xiang Ligang, a smartphone expert and CEO of telecom industry website Cctime, said the chances are low for Samsung to win a legal battle in China.
"Samsung is losing ground in the local smartphone market. Patent defeats will have a further negative impact on its brand image," Xiang said.
China will ease and speed up approval of drugs and medical devices as part of efforts to deepen healthcare reform, according to a new guideline released by the central authorities.
China will accept clinical trial data gathered overseas for applications to register drugs and medical devices, on condition that they are collected in multiple centers and meet Chinese requirements.
The guideline, jointly released by the general offices of the Central Committee of the Communist Party of China and the State Council, also calls for accelerating the review and approval process for urgently needed drugs and medical equipment.
Those items in early- or middle-stage clinical trials are permitted to enter the market with conditions attached, so as to provide treatment for severe life-threatening diseases that lack effective medication.
In the meantime, the guideline encourages innovation in the medical sector.
"Lack of intellectual property rights protection impedes the drug innovation process," said Wu Zhen, deputy director of China Food and Drug Administration. "The guideline offers measures to stimulate innovation."
The drug review and approval process will be linked with the patent process, so that infringement disputes can be addressed before the drugs hit the market.
Pilot compensation projects will be carried out, and patent holders will receive compensation if their drugs are delayed in going public because of clinical trials and the review and approval process.
Measures including setting up a catalog of marketed drugs and improving the protection of drug trial data will also be introduced, said the guideline.
From 2011 to 2015, 323 "innovative" drugs in China were approved for clinical research, and 139 new chemical generic drugs entered the market.
The guideline also bans medical representatives from selling drugs, and clarifies their responsibilities as promoting drugs in academic settings, introducing pharmaceutical knowledge to medical personnel and collecting suggestions during clinical use.
China started its latest round of healthcare reform in 2009, aiming to provide patient-oriented healthcare services.
As of September, all public hospitals in China had joined the comprehensive reform program to end the 60-year-old practice of drug price markups, helping to rationalize medical care costs.
As the reform proceeds, the share of drug sales in total revenues for hospitals dropped from 46.3 percent in 2010 to 38.1 percent in 2016.
In addition, China aims to build a basic medical services network covering both urban and rural areas, and completed a national reimbursement network for inpatient services in September.
The network allows any patient who is enrolled in China's public medical insurance systems to be reimbursed for inpatient expenses, no matter where they are treated.
Before these efforts, inpatients had to return to the locality where they were enrolled in public medical insurance in order to receive the reimbursement if they were treated at hospitals elsewhere.
Currently, 1.34 billion Chinese people are enrolled in various public medical insurance systems, accounting for up to 98.8 percent of the population.
South Korea-based electronics manufacturer Samsung has lost 10 of the 15 patent infringement cases it filed in China against Huawei out of the court rulings announced since 2016, media reports said on Wednesday.
Analysts said that this outcome won't have a major impact on Samsung's business in China, but it also reflects domestic handset producers' improving research and innovation ability, which may further put pressure on traditional technology giants.
On September 30, China's State Intellectual Property Office announced the invalidation of Samsung's five patents among the eight cases that Samsung launched against Huawei for alleged intellectual property violations since September 2016, according to a statement on the office's website.
Only two of the eight patents involved in the filings were effective, with the one remaining patent also partly invalidated, according to the statement.
Huawei and Samsung have been embroiled in an intensifying patent battle in recent years.
Since 2016, Samsung has 16 similar lawsuits against Huawei for intellectual property infringement. The South Korean electronics giant has lost 10 cases so far, with one patent still waiting for court judgment, news website ifeng.com reported on Wednesday. That translates to a patent invalidation rate of 62.5 percent, the report noted.
The disputed technology patents involve graphic displays, mobile phone cameras, screen controls and some basic communication infrastructure technologies, said the report.
Huawei declined to comment when contacted by the Global Times on Wednesday.
Wang Yanhui, head of the Shanghai-based Mobile China Alliance, told the Global Times on Wednesday that the patent ruling is not likely to have any impact on Samsung's sales in the Chinese market, as the 10 invalidated patents are just "a drop in the bucket" of Samsung's patents pool.
Also, "the electronic equipment maker can either seek to overturn the result through an administrative lawsuit, or pay royalties to use the patents," Wang said, noting that patent lawsuits have been utilized by electronics manufacturers as a weapon against competitors in recent years.
But for domestic electronic equipment suppliers like Huawei, the win is "symbolic," shedding light on the increasing competiveness of domestic technologies, Wang said.
In 2016, telecom equipment supplier ZTE Corp filed 4,123 applications for patents under the Patent Cooperation Treaty, ranking first in patent applications, according to the World Intellectual Property Organization. That was followed by Huawei with 3,692 patent applications.
The rise of domestic smartphone makers may pressure traditional technology giants such as Samsung and Apple, which have already experienced slumping sales in China, Wang added.
Liu Yongdong, a holder of 46 different patents, is a genius at invention in his company in Hunan province, always solving technical problems with his new inventions.
Liu, a delegate to the 19th National Congress of the Communist Party of China who joined the Party in 2010, was awarded the Chinese patent gold medal, the second prize for national technological innovation and many other accolades.
Liu, born in 1976, joined Sanyi Heavy Industry Co. when he graduated from university in 1998. He is now the general manager of Zhongxin Hydraulic Component Co, a subsidiary of Sanyi.
In 2009, Liu, leading a team, invented a new type of oil cylinder and hydraulic block, core components for a hydraulic system which used to be imported. Liu's inventions have been put into use for pump trucks made in China.
In 2010, Liu's team started to improve the hydraulic valve in order to decrease the vehicles' energy consumption.
"It was a tough task. In the first few months, we tried three models and failed. Luckily, we finally found the right direction in the fourth trial," Liu said. "I remember my team stayed up for three nights to solve the last bottleneck, and then everything went well."
The new hydraulic system has improved pumping efficiency by 15 percent, reducing energy consumption by 80 percent, Liu said.
In 2016, Liu's team invented a new hydraulic cylinder which is used in military equipment.
"Although we made a lot of progress in equipment manufacturing, the core techniques of hydraulic components still lag behind," Liu said, adding that his team will develop more hydraulic products to meet domestic needs.
A Chinese-American scientist has suggested that leading Chinese scientists get involved in investment that simultaneously supports science and innovation.
Zhang Shoucheng, a physicist at Stanford University and a foreign academician at the Chinese Academy of Sciences, said that scientists can make better investors because they can grasp cutting-edge technologies better than investors with only business training.
As China is committed to moving from a labor-intensive economy to one that is innovation-driven, it can refer to the successful experiences at Stanford and in Silicon Valley and encourage top-notch scientists to take part in investment that helps advance science and innovation, Zhang said on Sunday at a US-China Summit on Innovation, Entrepreneurship and Collaboration.
The summit, hosted by the Chinese Association for Science and Technology-USA, coincided with the association's 25th annual convention in New York.
"It's a learning society, innovation society; the university should play a leading role in this," Zhang said.
In July, Zhang and his team published in Science magazine findings about their discovery of a particle (Majorana fermion) that can be both matter and antimatter. The finding can potentially lead to more advanced quantum computers.
Italian theoretical physicist Ettore Majorana first predicted the particle's existence in 1937.
Zhang shared with the audience the experience of Danhua Capital, a venture capital fund he co-founded that invests primarily in early-stage and growth-stage companies with a disruptive technology/business model. The fund focuses on areas including artificial intelligence, AR/VR and big data.
"I want this fund to become a bridge between China and the origin of innovation and entrepreneurship - Stanford and Silicon Valley," he said.
Zhang Qiyue, China's consul general in New York, said at the summit that with structural readjustment and reform in China, innovation and entrepreneurship have become the new engines for economic growth, and innovation-driven development is a national strategy.
Last year, China spent nearly $200 billion on scientific research and development, and China became the world's largest patent applicant for the first time, she said.
By encouraging mass innovation and entrepreneurship, new ideas are constantly popping up, and the potential of individuals has been brought into play. Last year, about 40,000 new market entities were registered daily, adding more than 10 million urban jobs.
"Recently, foreign students from 20 different countries in China voted on 'the Four New Great Chinese Inventions'. High-speed trains, online shopping, mobile pay and co-share bikes topped the list. Today, innovation and entrepreneurship have taken root in China and have brought about dramatic changes," she said, adding that China is committed to the strengthening of innovative cooperation with all countries.
A research report released recently by UBS recognized the innovation development of China in past five years, and predicts that China will become a global innovation powerhouse thanks to improved education quality, input in research and development and policy support to innovation, Economic Daily reported on Tuesday.
The current economic model of China is seeking a rapid transition from "Made in China" to "Created in China", and China is expected to rule the technology realm in various fields.
China has been growing fast in education, the report said. China sees 2.8 million graduates majoring in science and engineering every single year, which is five times compared to the U.S.. The proportion of science and engineering graduates per 1,000 people in 2015 is also five times compared to 2005.
According to the QS world university ranking, the average score of top three Chinese universities has exceeded that of German universities. China is narrowing down the gap of academic performance with the U.S. and increasing the advantage over European countries. China has moved up five places in the ranking list from five years ago.
The report also said that China has shown increasing investment in scientific research investment and financing.
Input in research and development in China today takes up more share of GDP than the UK. Meanwhile, the government has stipulated the goal in the 13th Five-Year Plan that the ratio of R&D input in GDP must reach 2.5 percent by 2020. Therefore, UBS predicts that China is likely to surpass the U.S. in terms of the overall scale of research and development investment by 2019.
China's CAGR (compound annual growth rate) of venture investment in innovation has been up to 41 percent since 2012. Unlike in the U.S., where financing in innovative industry mainly relies on venture capital, multiple Chinese technology enterprises make a great deal of investment in internet and AI with their own funds. This establishes a relatively loose financing environment for the development of domestic innovative industry.
With the support of developed fundamental education and optimized investment environment, the patent applications of Chinese firms and individuals at the United States Patent and Trademark Office, an agency that issues patents to inventors and handling trademark registration for products, saw a tenfold increase in the past decade, surpassing the UK.
UBS emphasizes the superiority that China has in exploring AI and fintech and in their view, Chinese enterprises have played a critical role in guiding the direction of global technology development. Its particular advantage in AI can possibly enable China to revolutionize the manufacture industry in respect of technology.
The key for innovation development is Chinese government's promoting and implementing the pro-innovation policies, the report said. Within the last five years, the government has dedicated itself to modernize the economic sectors and boost the industrial value-added and specified the ratio of innovation input in the national Five-Year Plan, which buoys UBS's confidence in China's economy.
A group of Chinese students have invented a system to increase the electricity generation of small and medium-sized hydropower stations during dry seasons.
The system is based on a variable speed, constant frequency motor for small and medium-sized hydropower plants designed by a doctoral team from Hunan University.
"Traditional hydroelectric power stations have a fixed water flow requirement, which means electricity outputs drop dramatically during the dry season," said Lyu Mingsheng, one of the students.
The invention fixes the current situation where power output is directly proportional to river flow, allowing small and medium-sized hydropower plants to maintain output throughout all seasons, according to Lyu.
Improving generating capacity is expected to reduce the number of hydropower plants needed in the future, therefore lessening their effect on the environment.
"The new technology will transform the dam construction in China, making it more environment-friendly," he said.
Lyu cited official figures published in 2013 that stated China had more than 45,000 hydropower stations in rural areas, with the total installed capacity exceeding 65 million kilowatt (kW).
If the new system was applied to all of these stations, the total installed capacity would be increased by 19.5 million kW, almost equivalent to the output of the Three Gorges Dam which is 22.4 millon kW, Lyu added.
The core technology has received 10 national patents and several companies have signed cooperation agreements with Lyu's team.
Intellectual property law in China has always complied with international standards since it began, and the progress of jurisprudence will provide a healthier environment for both domestic and foreign business, said a senior official Friday.
The Office of National Leading Group for Combating Intellectual Property Rights Infringement and Counterfeiting released a document on Sept 28, chronicling the progress made thus far, including recent negotiation on geographic indications with Europe.
"The promotion of IPR started in China later than many countries, with only 30 years' history, but it has achieved fruitful results," said Chai Haitao, deputy head of the office. "China has always valued IPR highly, and will apply the same regulations to both domestic and foreign business."
"China has been talking to member countries in BRICS as well as 20 economies from Asia-Pacific Economic Cooperation on IPR," said Chen Fuli, deputy director-general of the department of treaty and law at the Ministry of Commerce. "China has always been active in conversation with other countries, covering a wide range of topics."
Based on the recently released action plan on IPR for foreign investment, the Chinese government will intensify inspections of IPR violations, especially in the foreign sector, in the next four months.
Gao Feng, spokesman of the Ministry of Commerce, said such action is not only a practical measurement echoing the State Council's call for stimulating foreign investment, but also part of China's ceaseless work on IPR.
"To clean up IPR violations is following up on Chinese IPR protection in order to create a fair market environment," Gao said. "It is never a decision to deal only with certain countries responding to the investigation they filed."
China is an important innovation base for the Emerson Electric Co and Edward L. Monser, president of the Fortune 500 corporation.
Established in 1890, the US-based multinational manufactures products and provides engineering services for a wide range of markets.
Monser has served as president since 2010 and pointed out that about one-third of more than 1,800 patents awarded to Emerson employees globally last year were generated in China.
"This is clear evidence of the capabilities and quality of China's research and development community, and our commitment to developing this indigenous capability," he said during a visit to southern China's Guangdong province.
Emerson started doing business in China in the late 1970s and now boasts more than 23 manufacturing facilities and 22 engineering centers in the country.
Monser said that job training and employee development were a big focus for the company, which works with universities in China to support their engineering and technology curriculum.
"We believe that it's critical to nurture talent to support an innovation-driven economy," he said.
The group also partners with universities in China in boosting teaching capabilities through various cooperation projects, such as summer internship camps, training, lab and technology competitions.
Emerson is also working with the Guangdong's education authority to carry out a cooperation program with higher education and technical schools to train more engineering talent here.
On broader cooperation between Emerson and China, Monser highlighted the significance of collaboration through digital ecosystems and industry alliances.
"We see that digital ecosystems provide enterprises with new and better ways to pursue collaborative innovation," said the entrepreneur, who also serves as an advisor on economic development to the Guangdong provincial government.
"Besides sourcing suitable parts at the best price, enterprises can exchange ideas through digital platforms," he added. "Participants in China or overseas can contribute to the ecosystem and benefit others."
In March, Emerson launched the expanded Plantweb digital ecosystem in China.
It aims to help Chinese users and enterprises in the processing industry, address new challenges in environmental protection, safety, energy-saving and reliability.
Earlier this year, the company partnered with the China Heat Pump Industry Alliance, a subordinate of the China Energy Conservation Association.
They agreed to build the "China Air Source Heat Pump Industry Training Base" at the company's Suzhou training center in eastern China.
"Through this initiative, Emerson is collaborating with the local government to promote the development of China's heat pump industry and create a green, clean living environment," he said.
Monser stressed that the business environment in China is a positive one.
"We are pleased to see the Chinese government has made great progress in protecting IPR (intellectual property rights protection) in the country," he said.
He added that an innovation-friendly environment and a commitment to IPR were vital for companies such as Emerson in China.
Monser also voiced support for fair and open trade, calling it the foundation of international commerce and an effective tool against protectionism that can harm consumers and businesses.
"Emerson believes that governments, enterprises and organizations should promote dialogue between the US, China and other countries on trade and manufacturing policy issues," he said.
"They must address these issues in ways that allow manufacturing sectors to grow, prosper and provide good jobs for each country's citizens," Monser added.
China's latest guideline to focus on protecting property rights of entrepreneurs and create a new mechanism to facilitate interaction between the government and businesses could help build a new type of government-business relations and sustain the country's economy's development, analysts said.
The guideline, the first one that focuses on the entrepreneurial spirit, was released on Monday by the Communist Party of China (CPC) Central Committee and the State Council to spur market vitality, the Xinhua News Agency reported.
The guideline stressed that the government will protect entrepreneurs' property rights according to law, ensure fair competition and strengthen intellectual property rights to encourage innovation, Xinhua reported.
It will also work on rules to protect the IPR of innovative achievements, such as new business models and cultural creativity.
China faces pressure from an economic downturn, which discourages some private companies from further investing and innovating, or even turn to illegal operations, which undermines technological progress and upgrading, said Hu Xingdou, a professor at Beijing Institute of Technology and an expert on Chinese issues.
"Legally protecting the property rights of entrepreneurs is very important. Truly preserving their properties, creating a legal environment and enhancing a sense of security of their wealth could help entrepreneurs feel safe and stable," Chang Xiuze, a researcher at Tsinghua University's National Center for Economic Research, was quoted by The Beijing News as saying.
The guideline further calls for the building of a more tolerant environment for entrepreneurs and an atmosphere that encourages them to innovate.
"The guideline aims to implement the call of Chinese President Xi Jinping to establish a new type of government-business relations based on sincerity and honesty," said Liu Yuanchun, vice president of the Renmin University of China, The Beijing News reported.
The government looks to the entrepreneurial spirit, which includes hard work, excellence, craftsmanship and innovation, and service to society to stimulate mass innovation and create a positive business climate, the guideline said.
"Entrepreneurship is the spirit that gives credit to society, which is consistent with the goal of China's economic structural reform," said Zhu Lijia, a professor of public management at the Chinese Academy of Governance.
"It is the main force in a market economy that promotes technological and institutional creativity," said Hu.
Xinhua quoted Zhang Ruimin, the chairman of appliance maker Haier, as saying that "the guideline provides all-round support for entrepreneurs to focus on quality and sustain innovation-driven development."
Experts added that promoting entrepreneurship is consistent with the agenda of the 19th National Congress of the CPC, which opens on October 18.
"The 19th National Congress is a time to solve problems," Hu said.
After the 19th National Congress, China's reform will be strengthened, and Chinese companies will further go global. And entrepreneurship will play a significant role, Zhu said.
In the field of photovoltaics－the study of converting sunlight into electricity, Pierre J. Verlinden's name shines like the sun.
Born in 1957, the Belgian-Australian engineer has published about 200 scientific papers, generated more than a dozen patents and held senior R&D positions in labs and PV companies across Europe, the United States and Australia.
In 2012, to help China build a clean energy future, Verlinden brought more than 35 years of expertise to his fifth continent, becoming the chief scientist at Trina Solar－one of the world's largest solar product manufacturers, located in Changzhou, Jiangsu province.
Since his arrival, Verlinden has helped the company break 15 world records in the solar energy industry, ranging from solar cell conversion efficiency to power output for solar panels.
In his office, Verlinden has five different types of full-size solar panels leaning against the wall. Above the panels, he has hung a photo of NASA's solar airplane, which he helped design, and his William R. Cherry Award－one of the most prestigious in photovoltaics.
His most prized creations, however, are kept in his bookcase. They are an advanced type of solar cell called Interdigitated Back Contact cells, or IBCs, which set a world record in May with an energy conversion rate of 24.13 percent, the most efficient silicon solar cell ever produced in China.
Unlike conventional solar cells, which have lines of silver electrical conductors running across the panel's surface to carry electricity to the batteries.
"IBCs essentially have these conductors integrated in the back of the panel, meaning more surface area to absorb sunlight and thus higher efficiency," he said.
The lack of surface conductors also means the panels look slick and minimalistic. IBCs are still at the experimental phase, but they have already earned the moniker of the "iPhone of solar panels", for their "elegance and efficiency", he said.
The ups and downs
IBC is just one of the leading innovations coming out of China's PV industry. For decades, China has been eyeing alternative energies, like solar and wind, to meet its economic needs, as well as to cut its coal dependence and pollution.
By 2040, China's electricity production by coal-fired power plants will drop from today's 73 percent to 43 percent, while wind will rise from 3 percent to 12 percent, and solar from 1 percent to 6 percent, according to a report by the International Energy Agency.
"We hope the proportion of solar energy can be even higher," Verlinden said. "China has changed from being a follower into a PV industry leader in the past 10 years, leading the world in PV innovation, solar energy production and market size."
In July, Wang Bohua, secretary-general of China's photovoltaic industry association, told an industry gathering that the solar industry is expected to install 60 gigawatts of generating capacity this year－a 12 GW increase compared with last year.
China already had a total of 101.8 GW installed solar capacity by June, after adding 24.4 GW in the first six months of 2017, Wang said. For comparison, a typical nuclear power plant has a capacity of 1 GW, Verlinden said.
Today, the Yangtze Delta region, which consists of Jiangsu and Zhejiang provinces, produces about 60 percent of the world's silicon solar panels, Verlinden said.
"There is no doubt that the center of gravity for the PV industry is in China. If you were a PV scientist in the 1970s, you would go to Silicon Valley, but now, you would come to China," he said.
Starting with a few small rural projects in the 1990s, China bounded onto the global PV scene just before the 2008 global financial crisis as local manufacturers boomed and eclipsed companies from traditional PV powerhouses, like the US and Germany, according to a report by ENF Solar, a PV information company.
However, China's surge was hit by oversupply issue in 2012 after too many new manufacturers flooded the industry in 2011, leading the number of producers to soar to more than 900. This resulted in a serious price crash as companies fought a cutthroat price war to keep market share, the report said.
At the same time, the global recession chilled demand from European markets－the primary destination for Chinese PV products, resulting in even smaller profits for Chinese companies. As a result, more than 400 Chinese PV companies closed their doors within a year, leading analysts to dub 2012 as China's "Great PV Winter".
"The PV industry is a game of managing cost," Verlinden said. "Since the technology has been around for decades, the bar of entry is low and anyone with sufficient money can set up a factory line and become the number one producer in no time.
"Yet, being number one in the industry typically does not last long, sometimes only two to three years, hence sustainability is much more important."
Lead with innovation
Although China's PV manufacturing has grown at a breakneck pace since 2007, Chinese products are still uncompetitive compared with other PV powerhouses like the US, Germany and Japan, according to a report by Stanford University.
As a result, China has increased efforts to attract foreign capital and experts to help the country innovate, and allow big banks to give massive loans to support the PV industry, Dan Reicher, one of the report's co-authors said in a seminar in March.
Verlinden was one of the first foreign experts brought in under the recruitment program created by the State Administration of Foreign Experts Affairs. The recruitment program began in August 2011, and is aiming to attract about 1,000 foreign experts in the following decade.
After 2012, China's solar industry rebounded due to surging domestic demand and from Japan, increased government support and quotas for solar energy, and more nontraditional energy investors, such as real estate developers, entering the industry, the report said.
Coupled with rising innovation and the global competitiveness of Chinese PV products, Verlinden said the rebound momentum has been the biggest development in China's PV industry in the past five years.
In recent years, however, as companies flocked to install massive, utility-scale, solar farms in the Gobi Desert and barren hills of China's vast North and Northwest, this created enormous inefficiency and waste because the infrastructure could not keep up, Verlinden said.
While these solar farms can produce large amounts of energy, "it has far surpassed the consumption capacity of the surrounding villages", and might not reach the most energy-hungry areas, such as the coastal cities, he said.
This excess energy will be wasted if not stored properly in batteries or transmitted efficiently to the national grid, Verlinden said.
Hence it is essential for China to integrate solar energy transmission into the national grid, and develop new and more efficient storing methods in the following years.
At the same time, China should also advocate for more residential use of solar panels. "In the future, households might be able to reduce their energy bills to zero, and even sell their excess energy to their neighbors or the national grid and make a profit," he said.
Artificial intelligence has never been integrated so closely into robotics, as domestic competitors on the market are gearing up to be at the forefront in the race towards a smarter and more automated journey.
Wang Peng, vice-general manager at the marketing division of Shenzhen-based Qihan Technology Co, said as AI tackles learning, perception, problem-solving, logical reasoning and many other related issues, the new technology will absolutely make robots smarter.
"AI technologies can enable robots to mimic some level of human intelligence, such as the ability of perception and thinking. And the robot will be the best carrier for AI technologies."
"The AI-enabled robots are able to assist in humans' daily work, enabling people to spend their energies on more creative jobs, such as art and education."
With multiple patents in several fields, including robotics and AI, Qihan Technology focuses on the developing the commercialization of AI-enabled service robots. Founded in 2006, the company now aims to use next-generation robotics and AI technologies to improve quality of life and business productivity for consumers.
Wang said the company is working on expanding its portfolio of "robotics-as-a-service" solutions. Thanks to the open application program interface platform, the Sanbot robot, each priced around 79,800 yuan ($12,034) and powered by Qihan Technology, can be customized for different scenarios in many fields, including retail, hospitality, education and healthcare.
During the World Robot Conference held in Beijing last month, Qihan unveiled new intelligent, cloud-enabled robots called Sanbot King Kong. The 1.5-meter high robot features bionic arms, advanced navigation and is able to carry 75-kilograms. Equipped with a four-wheel drive system, the robot can move at up to five meters per second, exceeding the average human walking speed.
Since 2013, China has become the world's biggest market for robot applications. In the first half of this year, China produced 59,000 units of industrial robots, up 52 percent from last year, according to official data.
Qian Dongqi, chairman of the Suzhou-based Ecovacs Robotics Co said as a new era of AI is coming, there will be infinite possibilities to develop the robots.
"The AI technologies will enable more abilities for the robots, and the robots can provide the best application scenarios for the AI. And I believe a qualified robot must be equipped with AI."
Wang, from Qihan Technology, agreed, saying the company will work with more partners to build a better environment for developers and then enable more robot applications on the market.
Zhang Xiaolan, an 18-year-old girl from a village in Henan Province has invented a system which automatically switches a vehicle's lights between high and low beams, which she's now been able to patent, reports youth.cn.
Coming from an underdeveloped rural area of Henan, Zhang Xiaolan's family doesn't even own a car.
"My dad has poor eyesight due to an industrial accident, so it's unsafe for him to walk at night," Zhang Xiaolan explained, "He gets blurred vision when a car's lights are on high beam."
Out of her concern about her father's safety, Zhang decided to improve the way car headlights work, beginning her project during her second year in high school.
"Convex lenses, light screens and photoreceptive circuits are used to judge the brightness of a car's headlights," said Zhang Xiaolan. "Two cars equipped with this device are able to switch automatically from high beam to low beam when they meet head-on."
The automatic auto high-low beam switcher Zhang Xiaolan invented gained a patent from the State Intellectual Property Bureau in August, 2016.
A manufacturer from Guangdong Province has already requested Zhang Xiaolan allow her product to be used in their vehicles.
Zhang Xiaolan is not resting on her one invention. She has enrolled in Jilin University.
"Given there are more opportunities at university, I'd like to make more inventions in the future," said Zhang.
After taking over German robotics firm Kuka, Chinese home appliance giant Midea Group is turning the European company into a global service provider for smart manufacturing.
At the 2017 China (Guangdong)-Europe Investment and Innovation Cooperation Conference held in Foshan this month, Gu Yanmin, vice-president of Midea, said more advanced mobile robots were being developed so that Kuka's industrial robots could be applied in more complicated production scenarios.
"More Chinese technologies have been introduced to the European market. The two-way technology exchange is replacing the previous one-way technology imports from Europe to China," Gu said.
Midea has nine research and development centers in China, and the number of such centers overseas has topped 11. The latest is located in Graz, Austria, and aims to provide technology for home appliance development to the European market.
Jonathan Schoo, China director at Germany Trade and Invest and a conference attendee, said more Chinese companies have invested in the high-tech field in Germany, while German companies have reinforced their investment in China.
"Joint R&D projects in the high-tech field benefit both sides, and we welcome such cooperation," he said, citing a recent partnership between Guangdong Biolight Meditech Company with its German counterpart in establishing an R&D center in northern Germany.
"From Germany's traditional dominant fields such as automobiles, engineering, machinery and transportation, to emerging areas including environmental protection and new energy, cooperation between the two countries is increasing," he said.
Chinese companies have been pouring resources into research and innovation over the years and led the world in certain fields, which is the primary cause of the technical exchange reverse, said Mats Harborn, president of the European Union Chamber of Commerce in China.
"European companies used to invest in China for its cheap labor force, but now they come to acquire new technologies," he said.
Official data showed that in Guangdong province, China's manufacturing hub, R&D investment accounted for 2.58 percent of the total output value in 2016, which was close to the level of developed countries. The southern province has nurtured world-class factories in some emerging industries such as drones, intelligent robots and OLED.
Thomas Schmitz, president of Andritz (China) Ltd, said his company has built a close relationship with local scientific research institutions and invested 3 percent of its revenue in R&D.
Andritz has over 200 employees in China engaged in research and new product design. They completed 155 research projects and obtained 34 patents over the past three years. The company co-developed a new system for garbage disposal and recycling with a Guangdong company.
"Guangdong is no longer a place for low-end trade or a world factory for cheap digital products," he said.
Exchange of scientific research staff members has also become more frequent. China has signed many cooperative agreements with universities and research institutions in Germany, France, Britain and other European countries.
Chinese companies have the advantage of market model innovation, while their European partners lead in industrial manufacturing technologies, according to Liu Chang from the European Union Chamber of Commerce in China. "Those advantages are also the direction for cooperation by the two sides," said Liu.
China is an important innovation base for the Emerson Electric Company, according to Edward L. Monser, president of the Fortune 500 corporation.
Emerson, established in 1890, is a leading U.S. multinational that manufactures products and provides engineering services for a wide range of markets.
In an interview with Xinhua, Monser, who has served as president of the company since 2010, said about one-third of more than 1,800 patents awarded to Emerson employees globally in 2016 were generated in China.
"This is clear evidence of the capabilities and quality of China's R&D community, and our commitment to developing this indigenous capability," he told Xinhua during a visit to southern China's Guangdong Province.
Emerson, which started business operations in China as early as the late 1970s, now boasts more than 23 manufacturing facilities and 22 engineering centers in China.
Monser said job training and employee development were a big focus for the company, which works with universities in China to support their engineering and technology curriculum.
"We believe that it's critical to nurture talent in China to support an innovation-driven economy," Monser said.
The company also partners with universities in China in boosting innovative teaching capabilities through various cooperation projects, such as summer internship camps, teachers training, lab, and technology competitions, he added.
According to Monser, Emerson is also working with the Guangdong's education authority to carry out a cooperation program with higher education and technical schools to train more engineering talent in China.
On broader cooperation between Emerson and China, Monser highlighted the significance of collaboration through digital ecosystems and industry alliances.
"We see that digital ecosystems provide enterprises new and better ways to pursue collaborative innovation," said the entrepreneur, who also serves as an advisor of economic development to the Guangdong provincial government.
"Besides sourcing suitable parts at the best price, enterprises can exchange ideas through digital platforms. Participants in China or overseas can contribute to the ecosystem and benefit others," Monser said.
In March, Emerson launched the expanded Plantweb digital ecosystem in China. It aims to help Chinese users and enterprises in the processing industry address new challenges in environmental protection, safety, energy-saving and reliability.
Earlier this year, Emerson partnered with the China Heat Pump Industry Alliance, a subordinate of the China Energy Conservation Association, to build the "China Air Source Heat Pump Industry Training Base" at the company's Suzhou training center in eastern China.
"Through this initiative Emerson is collaborating with local government to promote the development of China's heat pump industry and create a green, clean living environment," he said.
OPEN AND FAIR TRADE
Monser thinks the business environment in China is a positive one.
"We are pleased to see the Chinese government has made great progress in protecting IPR in the country," he said.
He added that an innovation-friendly environment and a commitment to Intellectual Property Rights protection and enforcement were vital for companies like Emerson looking to invest in China.
Monser also voiced support for fair and open trade, calling it the foundation of international commerce and an effective tool against protectionism that can harm both consumers and businesses.
"Emerson believes that governments, enterprises and organizations should promote dialogue between the U.S., China and other countries on trade and manufacturing policy issues, and address these issues in ways that allow manufacturing sectors to grow, prosper and provide good jobs for each country's citizens," he said.
In the southwest of Liping county in Guizhou province, young women living in the Zhaoxing Dong village endeavor to inherit and promote the unique indigo dyeing skills of their forebears.
Lu Yongmei, born in the village in 1985, is just one daughter of more than 1,000 households of the Dong ethnic group. In 2015, she founded a cooperative to gather inheritors of the thousands of years old technique and attract the attention of more young people to keep indigo dyeing alive.
Indigo dye is produced by soaking locally grown leaves to extract a substance that is then fermented to become a herb dye for cloth. The dyes seep into cloth and leave different shades of indigo behind.
"I have the natural passion for indigo dyeing," Lu said. "My grandparents ran a dye house and I remember when people were busy working among the big dye vats in my childhood."
Lu used to be a kindergarten teacher until she visited a neighboring village and saw some 60 of 70 children there left behind because their parents had to work in bigger cities to earn a living.
"I thought the children would be taken good care of if their parents work near home," Lu said.
With the passion for inheriting indigo dye and the wish to lure back more villagers for their children, Lu opened her cooperative and since then has hired several local women.
Her cooperative produces hats, clothes and scarves featuring Dong elements and has received five patents on dye mixture and nine patents on designs.
Women are trained to not only make better handicrafts but also for online business and marketing.
"Young people are the main force to take over the ancient technique," Lu said. "They will be better motivated if they know more about the market supply and demand."
To expand the market, Lu has opened online shops. The turnover last year reached up to 2.9 million yuan ($440,000) and this year is expected to see doubled business volume.
Xiaomi Corp is expanding its overseas footprint to complete its transformation from a Chinese smartphone maker into a technology giant.
Sitting on a recent $1 billion loan, and armed with more international patents, Xiaomi, which was founded in 2000, is itching for global marketing scraps with Apple Inc and Samsung Electronics Co.
On Aug 24, the Beijing-based company announced its formal entry into Thailand in collaboration with distribution partner VST ECS (Thailand) Co. At the event, Xiaomi announced that its flagship smartphone, the Mi 6, as well as the Redmi Note 4, are now available in Thailand.
The move came shortly after Xiaomi said in July that its wholly owned subsidiary Xiaomi HK had signed a three-year $1 billion syndicated loan agreement with 18 banks.
A big part of the money will be used to accelerate global expansion. So far, Xiaomi has a presence in more than 40 countries and regions, with impressive growth in Indonesia, Russia, Ukraine, India and other markets.
Lei Jun, founder and CEO of Xiaomi, says competing for global market share represents the third wave of opportunities that will shape the Chinese smartphone industry.
The first wave of opportunities came on the back of urban Chinese smartphone adoption. The second wave came thanks to new smartphone users in China's third-and fourth-tier cities.
"Seizing this opportunity marks the beginning of Xiaomi's journey as a technology company on the global stage," Lei says.
According to the company, after three years of investments to explore overseas markets, it has racked up successive wins this year.
"Our performance in India has been especially encouraging. Revenue in the first half of this year is up 328 percent year-on-year and we are now the second-ranked brand in the overall Indian smartphone market," Lei said in a company memo in July.
The performance is in line with forecasts. Data from research consultancy Strategy Analytics showed that in the second quarter of this year, Xiaomi had acquired a 15.6 percent share of India's smartphone market. The figure in 2016 was 3.3 percent.
Neil Shah, research director at Counterpoint Technology Market Research, says Xiaomi is dominating the online sales channel in India with sub-$150 (125 euros; ￡111) phones, similar to the market segment it won in China when it was at its peak.
Such performance marks a turnaround, considering the tough time Xiaomi had a year ago. Back then, its shipments plummeted over successive quarters amid mounting competition in China from fellow Chinese players such as Huawei Technologies Co and Oppo Electronics Corp.
Its online-sales model was also widely questioned as consumers in small cities were still more willing to buy smartphones at brick-and-mortar stores.
In response, Xiaomi stepped up investment in research and development, and embraced the so-called New Retail model, successfully integrating online and offline retail partners.
In the second quarter of this year, it shipped 23.16 million smartphones globally, up 70 percent sequentially, marking a record high for its quarterly smartphone shipments.
Wang Xiang, senior vice-president in charge of Xiaomi's global expansion, says there are plans to open 2,000 brick-and-mortar stores within three years, with half of them overseas.
Also, Xiaomi is channeling more resources into innovation. In February, the company launched the Surge S1, a proprietary chipset, helping it to join the ranks of Apple, Samsung and Huawei which have mastered complex in-house chipmaking capabilities.
"Innovation combined with patent accumulation is the cornerstone of Xiaomi's overseas expansion strategy," Lei says.
The company has 4,806 patents, of which 2,404 are international. According to Lei, Xiaomi will hire thousands of R&D professionals for its smartphone business within the next 12 months, as part of its broader push to reach the goal of shipping 100 million smartphones in 2018.
The company did not disclose how many handsets it shipped last year.
To expand its technology portfolio, Xiaomi signed a multiyear patent agreement with Nokia in July. The agreement includes a cross-license for each other's cellular-standard patents. Xiaomi has also acquired patents from Nokia as part of the transaction.
The move came after it bought around 1,500 patents from Microsoft Corp last year.
"The intellectual property partnership with Nokia, once the world's biggest phone maker, can help it tackle potential legal disputes overseas," says Xiang Ligang, a telecom expert and CEO of telecom industry website cctime.com.
With many new models of electric cars making debut at Frankfurt Motor Show (IAA) 2017, the new trend of automotive industry - new energy and intelligent driving - has been highlighted again.
"The cars of the future will be automated, connected and emission-free," Matthias Wissmann, president of the German Association of the Automotive Industry (VDA) has said.
It is obvious that the ecology of the global automotive industry is undergoing restructuring, and many countries including China have adapted to the new trend featuring energy-saving, connected and automated driving.
Trend of electric mobility
At the IAA, worldwide carmakers unveiled new models of electric cars, making "electric" the key word for the grand event. Beyond the exhibition hall, many countries are mulling fossil fuel car ban.
China, after France and Britain among others, is gearing up to ban manufacturing and sales of diesel and gas cars in the world's largest car market, by announcing that it had started research on a timetable to phase out manufacturing and sales of fossil-fuel powered cars.
"In the 21 century, new energy vehicles surpassing traditional fuel cars is an inevitable future trend," said Yang Yuwei, technology department manager of Beijing Electric Vehicle Co.
"For one thing, it is doubtable whether fossil fuel could last till the end of this century; for another, nowadays customers expect their cars to be intelligent, internet accessible and entertaining, and it is easier to realize these functions in NEVs than in traditional ones."
China now leads the world in new energy vehicles development. The Chinese leading electric bus builder and the world's largest manufacturer of rechargeable batteries BYD has mastered the core technical chain of battery, electric motor and electric controlling system in NEVs field, Du Guozhong, head of the company's media relations department, told Xinhua Thursday.
Chao Xue, Manager of contract administration and project management of BYD, told Xinhua recently that "range is no longer the bottleneck, as BYD buses in most of the cases, have more than enough range to cover a full day service."
BYD is in leading position on efficiency, cost, service life that is the new direction of the industry, and its new energy vehicles have been used in more than 200 cities around the world.
In the megatrend of automotive industry, intelligent and connected car which can communicate with its surroundings and with other road users, would bring about great impact on the traditional car industry.
In the future, people will communicate with cars by speaking out ideas, making gestures, or giving a look, the autonomous driving engineer Bernhard Vaighinger told Xinhua at Frankfurt Motor Show.
Seizing the momentum, China has started to draft the innovation development strategy for intelligent cars, outlining the strategic direction of China's auto industry in a near future.
According to a report released at a forum held by Tsinghua University, China has surpassed Japan, the United States and Germany in patents of intelligent and connected cars, accounting 37 percent of the total patents worldwide.
Chinese artificial intelligence giant Baidu launched "Apollo" in April, an open, complete and reliable software platform for the automotive and autonomous driving industry.
It has conducted successful road tests for its fully autonomous cars on the highways and roads of Beijing in late 2015 and finished the open trial operation of its autonomous car fleet in late 2016.
BYD has also forged an ecology chain of Internet and autos, and has mainly realized integration of mobile and automotive systems, Du said, adding that "BYD autos will not only be a vehicle in the future, but also an interactive device, a virtual assistant even a money maker."
Challenge to traditional auto industry
Speaking at the opening ceremony of the IAA, German Chancellor Angela Merkel said German and international car makers now face many challenges from the governmental adjustment on diesel motors, including China's move that might eventually ban combustion engines in the largest car market and further change the whole industry.
Against such background, car manufacturers have taken refuge in grand promises of an electric and hybrid future.
Although electric cars are the future of the industry, as Merkel predicted, combustion engines would still be needed as a bridging technology as demand was booming in many parts of the world.
For electric cars, "there are still many technical difficulties to overcome, such as batteries, engines, intelligence, lightweight operating and internet connectivity. Besides, charging piles and other infrastructure need to be improved to accelerate the adoption of new energy vehicles," Yang said.
While raising doubts over China's intellectual property laws and practices, the United States should not ignore the progress Beijing has made in those areas. For example, guaranteeing full protection to intellectual property rights online is a difficult task, yet the government has taken measures to address the problem and make remarkable progress in this regard.
According to a China Internet Network Information Center report, by the end of last year China had about 731 million internet users and the total value of internet copyrights exceeded 560 billion yuan ($86.8 billion). But online piracy, too, has grown with the internet industry, harming IPR protection online.
Piracy is the most serious online copyright violation, because of the low costs and low risks involved, and the high profits it can fetch. This year's China Network Intellectual Property Development Report indicates the country's core online copyright industry increased 31.3 percentage points last year compared with 2015, with the online game industry being worth 180 billion yuan, online literature 10 billion yuan, and online videos 5.21 billion yuan. But for online piracy, these figures could have been bigger.
Data from iResearch Consulting Group, a market research and consulting company, show that in 2015 and 2016 piracy caused losses of 7.97 billion yuan and 7.98 billion to the online literature sector, with the mobile paid reading being 4.36 billion yuan and 5.02 billion.
There is little doubt that China, despite some drawbacks in its IPR laws and practices, has made tremendous efforts to protect IPRs online.
Since 2005, government departments such as the National Copyright Administration and the Ministry of Industry and Information Technology have been leading a campaign, called "Sword Net", to combat online piracy in literature, music, videos and games. Thanks to the campaign, many websites involved in IP piracy have been shut down. And because of the increasing awareness of IP protection, establishing a foolproof system for protecting online copyrights has become an important task for the government, for which it has implemented more comprehensive laws.
Besides, to combat piracy and protect new media's copyrights, 10 mainstream media outlets and websites formed an association at the National Conference on Copyright Protection in Digital Environment in April. The association is expected to play an active role in managing copyrights, making rules and negotiating prices, and thus help its members protect their legitimate rights.
The National Copyright Administration directly supervises more than 3,000 websites, including Baidu, Youku and 18 other highly influential video websites, to ensure they closely monitor the contents published on their websites.
Moreover, thanks to strengthened IPR protection, more online video copyright owners are getting their share of payment. And this year's Global Music Report issued by International Federation of the Phonographic Industry says the digital music industry markedly increased in scale last year to hit 15 billion yuan.
Strengthened online copyright protection has also facilitated technological and cultural innovations and creations, a new driver of economic growth. As such, better IPR protection will boost the mobile internet, Internet of Things and other related sectors, including artificial intelligence, and help China to become a stronger internet economy.
Leading Chinese biopharmaceutical company Innovent Biologics is now on the move, after announcing a landmark deal on the potential cancer therapy front that has global implications.
In early September, the company said it would pay $457 million to the Shanghai Institute of Organic Chemistry at the Chinese Academy of Sciences.
Under the terms of the deal, the company is acquiring the worldwide rights for a small molecule inhibitor of indoleamine 2,3-dioxygenase, also known as IDO.
By inhibiting IDO, pharma companies are aiming to restore the responses of the immune system - enabling cancer cells to be more readily identified and subsequently destroyed.
The institute is to get a total of $457 million in a combination of upfront and milestone payments, which Innovent said is the biggest amount ever paid to an academic institution under a Chinese industry deal.
The institute is also eligible for royalties.
The magnitude of the deal has ensured that the agreement has captured widespread attention from the industry.
Innovent plans to pair the IDO inhibitor with its PD-1 candidate, IBI308, both used in cancer immunotherapy, according to BioCentury, an industrial publication headquartered in the United States.
The IDO inhibitor is potentially complementary to the innovative antibody PD-1.
Their combination has promising curative effects, Innovent Chairman Yu Dechao told the Chinese media.
"The partnership will not only yield a more effective treatment - which will benefit patients in China and other parts of the world - but also advance Chinese biopharmaceuticals' expansion into international markets and help to promote the China-innovation brand in the industry worldwide," Yu said.
Wang Zhaoyin, a researcher at the Interdisciplinary Research Center on Biology and Chemistry, said research had found "over-expression" of IDO in multiple types of tumor cells, including those in the prostate, pancreas, breast and stomach, which was one of the reasons for the difficulties in detecting early-stage cancer.
The center is an affiliate of the Shanghai Institute of Organic Chemistry.
As tumor cells produce excessive IDO, they prevent the activation of a proliferation of immune cells.
As a result, the IDO over-expression enables tumor cells to escape the monitoring of the immune system, industry insiders said.
Wang and his colleague Zhu Yindong - as well as their research teams - developed the inhibitor, which curbs the over-expression and helps the immune cells to become reactive.
The researchers filed Chinese and foreign patent applications for the invention in around 2015, China Intellectual Property News reported.
For other Chinese pharmas, the collaboration model in this case is worth noting as a reference to learn from, Huang Renmin, a partner of Lecome Intellectual Property Agent, told the Beijing-headquartered newspaper.
She said that considering the enormous costs - as well as the prolonged timescale and high failure risks in research and development in the industry - Innovent Biologics' combined payment method enabled both parties to share the risks and benefits.
The attorney has focused on patent filings and IP protection in the biopharmaceuticals sector.
She noted that although milestone payments were more often found in the engineering sector, its use in drug R&D was beneficial to both investors and researchers.
Investors have to face considerable unmanageable risks for a prolonged period, which can take years, from medical research in a lab to rolling the finished product onto the market.
That is due to huge investments and concerns over multiple and stringent administrative approvals. The milestone payment helps to reduce the risks, Huang said.
For researchers, the payment method enables them to secure sufficient R&D funds at the early stage to sustain the project and reduce risks.
Otherwise they couldn't profit until their research proves to be a success, or might give up due to a shortage of funds, she added.
The Suzhou-based drugmaker has made the headlines before on the cancer therapy front.
Along with US group Eli Lilly and Company, a global pharma giant headquartered in Indiana, it agreed to milestone payments in a $1 billion deal to co-develop three bispecific antibodies for cancer treatment in 2015.
A secret team in Chinese e-commerce giant Alibaba has the task of pretending to be online consumers who test-buy purchases from the billion-plus products on its platforms.
They spot check about 100,000 products and invest around 100 million yuan (about 15.15 million U.S. dollars) a year on average. Around one in four online shops are checked annually.
"Spot checks are not random. They are guided by big data from our platforms," said team leader Qin Seng. Using product ratings, consumer disputes and other information, the team builds a model to identify suspected counterfeits and shops that sell counterfeits.
The whole process is videoed to retain evidence. The sample purchases are sent to rights holders or authoritative quality inspection agencies. If identified as fake, the products are removed from the platform. The vendors can face the closure of their online shops. If identified as genuine products, they are stored as Alibaba' s assets.
Alibaba's Storehouse of Counterfeit Evidence is a 300-square-meter warehouse in Alibaba Group's Xixi Park, in Hangzhou, Zhejiang Province. Counterfeits can be stored there for more than three years as legal evidence.
The spot checks are symptomatic of China's battle against counterfeits in the Internet era.
Chai Haitao, deputy director of the Office of National Leading Group of the Fight against IPR Infringement and Counterfeiting, said that with the rapid development of China's Internet economy, infringements and counterfeits are constantly renewed.
"We need to strengthen cross-sector, cross-regional, and cross-border cooperation to combat counterfeits. We also need to mobilize enterprises, industry organizations and the public," Chai said.
Alibaba's Anti-Counterfeiting Special Task Force, formed last year, actively works with local law enforcement agencies, said Qin Seng.
"After we clean up online shops selling counterfeits, the counterfeiters usually change their identities and places of dispatch, using more covert means to continue selling online," Qin said.
The team uses big data to identify counterfeits and the vendors, affiliated dealers and factories suspected of producing or selling counterfeit items. They pass evidence to the public security, administration of commerce and industry, quality inspection, food and drug supervision and other law enforcement agencies. At the same time, they investigate the evidence in the field.
The team faces many risks in their offline probes.
"Most counterfeiting dens are hidden and well-organized. For example, we encountered a village producing counterfeits. The villagers installed cameras everywhere and when they saw outsiders entering, they became vigilant and even threatened us," Qin said.
Alibaba's cooperation with local authorities to locate counterfeit sources has proved effective. They have partnerships with the public security bureaus of 13 provinces.
In 2016, Alibaba submitted 1,184 leads to law enforcement agencies; helped public security bureaus arrest 880 suspects; assisted in the closure of 1,419 counterfeit manufacturing locations; and helped seize merchandise worth more than 3 billion yuan (about 455 million U.S. dollars).
In August, with evidence from Alibaba, police in Loudi, Hunan Province, broke up a ring producing and selling counterfeit weight-loss drugs, with a sales network in more than 20 provinces. Total trade by the ring exceeded 100 million yuan (about 15.15 million U.S. dollars).
In the eyes of Sun Jungong, vice president of Alibaba, spot checks and data-driven proactive monitoring protect a good shopping environment on the platform itself, while cooperation with law enforcement agencies shows effective collaborative governance.
"We hope to take advantage of Alibaba's big data and strong data-mining capabilities. By expanding offline cooperation, we aim to tackle this issue at its source," Sun said.
Professor Wang Xin, of Peking University Law School, said the rapid development of China's e-commerce platforms and the emergence of new online shopping models have provided more sales channels for fake goods.
Wang said China has made great efforts in recent years to stamp out intellectual property right (IPR) infringements, by improving laws and setting up specialist IPR courts.
However, the penalties for counterfeit producers and sellers are not enough of a deterrent, Wang conceded. Many counterfeit makers receive suspended sentences or fines.
He suggested recidivists should be banned from entering the market again forever.
Alibaba' s analysis has also found some online consumers buy counterfeits knowingly.
Sun Jungong said raising awareness among consumers is essential to fight counterfeiting.
"Everyone can do their bit to stop counterfeit goods. If society reaches a consensus, as with drink-driving, we are more likely to tackle this problem," Sun said.
Microsoft will launch an intellectual property protection program for its Azure customers in China on Oct 1, the technology giant announced in Shanghai on Tuesday.
In February, Microsoft became the first technology company to offer uncapped indemnification coverage to its Microsoft Azure cloud customers. It now offers customers protection against patent trolling with its collection of 10,000 legal patents, covering 42 countries and regions worldwide.
Jason Zander, corporate vice-president of Microsoft, said the purpose of bringing Azure IP protection program in China is to make sure that its Azure cloud partners, users and developers can accelerate their innovation on cloud computing.
Wind turbine technologies developer Envision Energy based in Jiangsu province is one of the domestic companies to set up an Internet-of-Things platform on Azure cloud. The company's senior manager Pan Yihong said the IP protection program will help them to focus on technology innovation and avoid unnecessary waste.
Xia Yiping, chief technology officer of bike-sharing company Mobike, said the technology and legal protection provided by Microsoft can largely reduce risks related to IP since Mobike has started businesses in seven overseas markets.
According to global online market intelligence platform IPlytics, the number of IP lawsuits related to cloud products has surged by 700 percent since 2012 in the United States. A similar trend can also be noticed in China, as the number of cloud products IP lawsuits jumped by 158 percent between 2011 and 2016.
Microsoft Azure entered the Chinese market in March 2014, with its services operated by Beijing-based carrier-neutral internet data center service provider 21Vianet.
The Chinese government has begun a campaign to protect the intellectual property rights (IPR) of foreign companies.
The campaign will focus on malicious trademark registration and imitation of foreign brands, the Ministry of Commerce said Monday, citing a joint action plan by 12 government departments.
From September to December, the campaign will also target infringement of online IPRs, patent rights and plant variety rights, as well as industrial espionage, according to the plan.
China has promised to improve IPR protection for foreign companies with campaigns against violations and stepping up judicial and administrative protection, according to a guideline on ensuring foreign investment growth released last month by the State Council.
"China has attached great importance to IPR protection and seen visible results," deputy minister of commerce Wang Shouwen told a press conference last month.
China's IPR spending to overseas owners rose to 24 billion U.S. dollars in 2016 from 1.94 billion dollars in 2001, an annualized increase of about 18 percent. In the first half of this year, the amount rose 23 percent year on year to 14.3 billion dollars.
Wang Junfeng and seven fellow Chinese researchers at Harvard Medical School gave up life in the United States to move to a small island on the outskirts of Hefei, capital of east China's Anhui Province.
"Science Island" is home to more than 10 research institutes and 1,000 top researchers - and an ideal place to focus on their research, they said.
In the 1990s and early 21st Century, many Chinese college students flocked to developed countries to pursue studies and professions with the help of more advanced research equipment.
In the past two decades, as its economy blossomed, China has attached greater importance to science and technology, making it an increasingly attractive base for researchers.
Wang said he came to the island because advanced experimental equipment on steady high magnetic fields was to be built there. It would make China the fifth country in the world to have such equipment.
Kuang Guangli, leader of the project, said the team has already made an impact in international academic circles and that the members have made greater academic achievements here than they did in Harvard.
Experience in China over almost a century has shown that it is necessary to mobilize efforts and resources to concentrate on major tasks. Now the experience is being applied to scientific and technological innovation.
Innovation is at the heart of China's 13th Five-Year Plan (2016-2020), which sets the aims to become an "innovation nation" by 2020, an international leader in innovation by 2030, and a world powerhouse in scientific and technological innovation by 2050.
At the forefront of fundamental research and strategic key technologies in fields such as space, deep sea, super computers and quantum communication, China has shown determination and speed, capturing world attention.
Over the past year, Chinese have been inspired by landmark achievements in science and technology.
Chinese scientists completed all the experiments designed for the world's first quantum satellite a year ahead of schedule, laying the foundation for a hack-proof global quantum communication network.
China's supercomputer, Sunway TaihuLight, was crowned the world's fastest computer at both the 2016 and 2017 International Supercomputing Conferences held in Frankfurt, Germany.
In early July, China made breakthroughs in the search for alternative clean energy sources by completing a 60-day trial of mining gas hydrates, commonly known as combustible ice, in the South China Sea.
"Combustible ice is considered a strategic alternative to oil and natural gas," China Geological Survey Bureau's deputy director Li Jinfa said. "The whole world is looking towards it."
In mid-June, China launched its first X-ray space telescope to observe black holes, pulsars and gamma-ray bursts.
"I am really impressed with how China is developing its scientific space program," said Arvind Parmar, head of the Scientific Support Office in the Science Directorate of European Space Agency (ESA). "The recent launches of the Dark Matter Particle Explorer and the Quantum Experiments at Space Scale missions highlight China's capabilities and commitment to science as does the range of missions under study for future launch opportunities."
China took a major step toward becoming a global aviation powerhouse as its homegrown large passenger plane, the C919, took to the sky on May 5. The flight makes China the fourth jumbo jet producer after the United States, Western Europe and Russia.
Last year, China launched its first space lab, Tiangong-2, and sent the Shenzhou-11 manned spaceship to dock with it. Two Chinese astronauts stayed in Tiangong-2 for a month, setting a new Chinese record for space residency.
In April this year, China launched its first cargo spacecraft, Tianzhou-1, to dock with Tiangong-2, to test space refueling technology, laying the foundation for building the country's space station.
This string of achievements shows the innovation-driven development strategy is paying dividends.
A report jointly issued by the National Center for Science and Technology Evaluation and Clarivate Analytics said China's expenditure on research and development accounted for 1.42 percent of GDP in 2006 and the ratio increased to 2.1 percent in 2016.
In 2016, China had over 1.1 million patents for inventions, ranking the third after the United States and Japan.
The latest Global Innovation Index showed China rose three places to 22nd on the list of the world's most innovative nations in 2017, the only middle-income country to join the top 25 innovative economies.
ORIGIN OF INNOVATION
In the 13th Five-Year Plan, the evolution of the universe was given pride of place on the scientific research list. It was followed by material structure, the origins of life, and neurology.
"Fundamental questions, like this, have the power to influence solutions to some of the most prominent problems faced by society and the world at large," said Han Song, a Chinese sci-fi writer.
With economic pressures forecast to continue, China is committed to fostering new development momentum through innovation.
China has been striving to upgrade its industrial structure and shift its economy to a growth model that draws strength from innovation as its competitive advantages in low labor and raw material costs are eroded.
Zhang Xinmin, a researcher with the Institute of High Energy Physics of the Chinese Academy of Sciences (CAS), said China is starting to value basic science.
Zhang, who studies primordial gravitational waves in Ngari, southwest China's Tibet Autonomous Region, said research is the origin of innovation. Without it, innovation on a large scale is unachievable.
Studying the evolution of the universe seems unrelated to more pressing issues, such as lifting tens of millions of people out of poverty by 2020.
However, Hugo Award-winning author Liu Cixin said many advances rely on science and technology.
Wu Ji, director of the CAS National Space Science Center, said that since China's first satellite was launched into space nearly 50 years ago, a number of communications, remote sensing and navigation satellites have followed.
"If China wants to be a strong global nation, it should not only care about immediate interests, but also contribute to humankind. Only that can win China the real international respect," Wu said.
China will produce another five or six scientific satellites by 2020, which will aid research into black holes, dark matter, quantum physics and the space environment.
"If you want to innovate, you must have knowledge of the sciences. Space science is inseparable from China's innovation-driven development," said Wu.
A Chinese probe is expected to land on Mars in 2021.
"Exploring the red planet and deep space will mean that China can establish itself as a scientific and technological leader. The knock-on effect is that inventions and independent intellectual property rights will surge, and, as a result, China's core competence will increase, pushing development in other industries," said Jia Yang, deputy chief designer of China's Mars rover.
"Although China still lags behind scientifically-advanced countries in some areas, we have made great strides in basic science and space science. As long as we are diligent, in the near future we will achieve great success," said Chang Jin, vice director of the CAS Purple Mountain Observatory.
China Electronics Technology Group Corp, a State-owned technology giant, will step up efforts to optimize corporate structure and encourage innovation amid the central government's deepening of State-owned enterprise reform.
"Our goal is to lead the development of China's electronics industry and build the cornerstone of national security," said Xiong Qunli, chairman of CETC. "We will ramp up resources to cultivate innovation and accelerate structural reform."
As of August, the company has successfully integrated 19 research institutes to set up seven units, simplifying hierarchy, boosting operational efficiency and saving costs.
CETC has already been working to overhaul its structure, which previously consisted of 47 electronic information research institutes. Such a fragmented structure led to a slate of problems such as scattered investments, redundant construction and disordered internal competition.
"We have shifted our focus to five areas - military electronics, civilian products, international management, scientific and technological innovation, and asset management and capital operation," Xiong said.
In 2016, CETC recorded 188 billion yuan ($ 28.7 billion) in revenue, marking an almost 20-fold increase compared to the number in 2002, when it was founded. Its profit also surged to 18.3 billion yuan, highlighting the company's strong momentum.
The reform is part of the wider SOE reforms administered by the State-owned Assets Supervision and Administration Commission, the country's top regulator of SOEs. It is designed to increase the competitiveness of SOEs as China works to replace old growth drivers with new ones, with emphasis on innovation, technology and efficiency.
According to Xiong, the company also has been closely aligning businesses with national strategies. It has stepped up overseas investments to better serve countries and regions related to the Belt and Road Initiative. CETC is also ramping up resources to cultivate innovation.
It has set up an intellectual property center, intended to motivate employees to come up with innovative ideas and experimenting with cutting-edge technologies. As part of its financial incentives, the company said at least half of the revenue generated from new patents will be rewarded to core employees who invent the patent.
As a result, the number of patent applications at CETC surged 80 percent after the reform.
"SOEs are the backbone of national scientific and technological innovation. CETC is engaged in information technology, a sector where global R&D spending is pouring in to get a dominant position. Innovation is exploding. CETC has done a very good job," said Xiang Ligang, an independent expert of the information technology.
The State Council, China's Cabinet, issued an action plan earlier this year, ordering the country's major SOEs supervised by the central government, excluding financial and cultural enterprises, to complete corporate reforms by the end of 2017.
Tim Cook, the chief executive officer of Apple Inc, launched three new products－iPhone8, iPhone8 Plus and iPhoneX－on Tuesday but, unlike in the past, the Chinese market's response at best was lukewarm.
Today Apple ranks fifth in the Chinese smartphone market. Worse, in the second quarter of this year, only 8 million iPhones were sold on the Chinese mainland, dragging its market share from 9.2 percent in the first quarter down to 7.1 percent. And among the top five best-selling smartphones, iPhone is the only one to see its market share drop.
According to an online survey, about 37 percent of the iPhone users and 49 percent users of other brands said they would not buy any of the three new products after watching their launch. Established brands such as iPhones have lost their shine because "innovative" new products no longer catch the fancy of many youths.
South Korea-based Samsung faces an even bigger challenge. The launch of its new product on the same day attracted so little attention from Chinese consumers that there were hardly any reports about the event on Chinese websites.
Among other things, perhaps Apple's attitude toward Chinese users and companies is responsible for its decline in the Chinese market. It has always had a big appetite for profit, even trying to make money from the apps loaded on the iPhones. For instance, in April, Apple asked Tencent, the owner of WeChat, to pay 30 percent of all the bonus money as a kind of "tax". That Apple has fallen behind in the fierce competition for iPhones' outer designs, performances and prices has also contributed to its decline.
From iPhone4 in 2010 to iPhone8 this year, Apple has stuck to the same design pattern. In particular, iPhone8 looks almost the same as iPhone7, prompting many to say that iPhone8 users should keep their "new buy" upside down on the table so that those around can see the glass back and realize it is the new model.
The decline of big global brands has seen a corresponding rise in the fortunes of Chinese smartphone companies, which have upgraded their models several times in the past years.
MI, a domestic smartphone company, was founded in April 2010, but its share in the Chinese market in the second quarter was 11.8 percent, higher than that of iPhones.
Besides, both MI and Huawei have entered the US market and are competing with Apple in its homeland and Europe. Inspired by the strategy of "Made in China 2025", the Chinese cellphone companies are catching up fast by investing huge amounts of money in research and development. For instance, thanks to its robust R&D investment, Huawei topped the innovation list last year with 4,906 patents.
In other words, the changing cellphone market reflects the increasing potential of Chinese mobile phone producers.
Zhou Gang turned on the shower and aimed the stream of water at an electrical outlet connected to a water heater in a simulated bathroom. The heater kept working, and he didn't get a shock.
Near the bathroom, a woman connected a light bulb with a plug to a socket that had been submerged in a cylinder of water. No short circuit resulted. The bulb stayed on. And she wasn't shocked, even when she reached into the water to disconnect the bulb.
The demonstrations took place during a recent visit to a showroom at Chengdu ArGangle Technology, in Chengdu, Sichuan province.
Zhou, 32, is the chairman of ArGangle, which focuses on the research and development of insulated electrical technology.
A native of Chengdu, Zhou suffered from an electric shock as a child. Because of his interest in electricity, he suspended his studies at the Nanchang Institute of Technology in Jiangxi province after one year and returned to Sichuan to set up his company 10 years ago.
The company has now developed an electrical concept known as an "insulated electricity connection", which can connect to an outlet in water without causing an electric shock or shorting out.
The secret? There is an insulating material in each socket. Zhou said they will be sold for 85 yuan ($13) apiece when they appear on the market at the end of this year.
Zhou patented the insulated connection in China, South Korea, Japan, Australia and the United States. He obtained additional patent protection from 95 national signatories to the patent cooperation treaty.
Wang Zhongcheng, deputy Party chief of Pidu district in Chengdu, said the district government has signed an agreement with ArGangle to jointly build an insulated electricity connection base.
A plant for manufacturing outlets using the insulated connection has been built on 5 hectares in Pidu.
"When the plant starts production at the end of this year, it is expected to produce up to 20 million socket outlets a year," Wang said.
An auto parts technician from Shanghai who claimed that the locking system Mobike uses on its shared bicycles infringed on his patent has lost a lawsuit against the company.
Shanghai No 3 Intermediate People's Court on Thursday ruled in favor of Mobike, saying its technical process for unlocking bikes is not the same as the intellectual property held by the plaintiff, identified only as Hu.
"Their technical characteristics and the technical paths of unlocking the bikes are different," judge Shang Jiangang said in announcing the verdict.
She Yifeng, the attorney for Mobike, had argued that the company's unlocking process－which involves a Mobike smartphone app, cloud server and lock controller on each vehicle connected by a wireless signal－is more complicated than Hu's patent.
Hu said he submitted an application to patent his invention for an operation method to unlock bicycles to the State Intellectual Property Office in June 2013, and was awarded the patent in May 2016.
He told a court on Aug 16 that the unlocking procedure he invented involved users' smartphones and the vehicles.
"When a user scans a QR code with a smartphone to unlock a bicycle, the system will compare the image to the one stored in its database to determine if they are identical. If yes, it will signal the controller to unlock the bicycle," he told the court.
He argued that Mobike's lock controlling system has the same technical characteristics as his patent. In April he requested the court to order the company to stop manufacturing shared bikes with such a system, destroy all locks on existing Mobike bicycles and pay 500,000 yuan ($76,300) in compensation.
Mobike's attorney told the court that the first step of the bike-sharing company's unlocking process is when a user scans a QR code on the bike with a smartphone and the system sends an unlocking request to the cloud server.
"The request includes the user data and the information of this bike. Upon receiving the request, the cloud server will check if the user is qualified. The process will stop for any user with a substandard credit record or who does not have enough money in their prepaid account," She said.
If the user is qualified to ride the bike, the cloud server will send a signal to the lock controller on the bike, which will then check if the bike is in good condition to be used, She added. "Bikes that are reported by previous users to be out of order will not be unlocked."
Mobike, which began operating in Shanghai in April last year, has distributed more than 7 million bikes in 160 cities on the Chinese mainland and in Singapore, Japan, the United Kingdom and Italy.
China will roll out a series of measures to boost innovation, according to a circular issued by the General Office of the State Council.
A total of 13 reform measures will be carried out in eight comprehensive innovation pilot areas, including the Beijing-Tianjin-Hebei region, Shanghai and the Pearl River Delta, and then further promoted nationwide.
According to the circular, the government will enhance the support for innovation by small and medium-sized enterprises by offering one-stop investment and financing information.
One-stop service for patent examination, rights protection and verification will also be offered to enterprises, said the circular.
In the meantime, the government will streamline the procedures for foreigners to apply work permits in China, and encourage foreign students to find career opportunities, start their own businesses and apply for work and residence permits.
The circular also stressed the need to accelerate the transformation of military production into civilian use.
German industrial group Siemens AG announced Thursday that it has entered into a partnership with Tsinghua University, one of Siemens' center of knowledge interchange universities, to jointly set up a robotics research center in Beijing.
"China's digital transformation is already having a profound impact on its economy. With Made in China 2025 and the Belt and Road Initiatives, China intends to upgrade its national industry and boost its global competence through digitalization-focused innovations," said Roland Busch, chief technology officer and member of the managing board of Siemens AG.
Siemens is investing heavily in the future of China and partnering with the country and many customers on its way to digitalization, he said.
The company said Siemens China will lead the firm's global research in autonomous robotics.
As part of the company's innovation strategy to master technology fields that are critical for future success, a global research community comprising experienced experts from around the world will focus on the research and development of new mechatronics systems, human-robot collaboration and the application of artificial intelligence in robotic controllers.
Siemens has also teamed up with a number of local governments and 87 local universities and technology institutes in China to conduct scientific research and develop talent.
"We're constructing an open, inclusive and trust-based innovation eco-system in China aimed at value co-creation in the digital age," said Lothar Herrmann, CEO Siemens Greater China. "Siemens is bringing the next generation of innovations to life for our customers and society, in China and the world."
China has become one of Siemens' largest R&D locations worldwide. In its fiscal year 2016 ended on September 30, 2016, Siemens had over 4,500 R&D researchers and engineers, 20 R&D hubs and more than 11,000 active patents and patent applications in China.
As the world's top patent filer, China needs to develop more high-value patents that feature cutting-edge technology, market competitiveness and legal stability, industry insiders said at a seminar held last week as part of the China Patent Annual Conference 2017.
Li Cheng, deputy general manager of Intellectual Property Publishing House, a patent intelligence provider, said patent creation is the source of the entire patent industry.
However, "compared with those strong patent powerhouses around the world, China lacks basic, original and high-value patents, especially in some core sectors," he said.
Liu Huabing, head of the patent information department at the publishing house, said a high-value patent is the integration of high-quality technical solutions, a well-composed patent application, high-standard examinations and good market potential.
"The quality of patents in China needs to improve so that companies can find more value from technology," he said.
"A more urgent need is to commercialize many unused patents. But before commercialization, we have to analyze their value."
With two years' effort, Intellectual Property Publishing House has developed a system to recognize, analyze and develop high-value patents and patent packages. Its demo version was unveiled at the seminar.
Using big data technology, the system has identified about 46,500 patents in China as high-value patents. More than 630,000 patents could become high-value ones if they were further developed, and another 1.5 million patents or more "have some potential value", according to Liu.
The system's initial version is planned to launch by the end of this year, Liu said.
Shi Liangyan, IP director at China's leading wind power developer Goldwind Science and Technology, said a high-value patent must be "related to the necessary functions of a product".
"As technology advances quickly, the best solution yesterday may no longer be the best today, and we will no longer renew the patent," she said.
"In that case, the patent cannot be called a high-value one despite its high quality, because of its short life span."
Shi said the development of high-value patents in a company requires proper culture, systems and talent.
"We should have an environment that encourages innovation and tolerates failures," she explained. "We should also have incentive systems and build up professional teams of researchers and developers, as well as lawyers and market personnel."
Xiao Dongmei, dean of the law school at Xiangtan University, said it is challenging to find high-value patents among numerous patents, and called for greater data accessibility, including on patent examination, to make it easier for companies and researchers engaged in patent evaluation.
Ancient China came up with four inventions which had a massive impact on the world - papermaking, gunpowder, printing and the compass.
Fast forward to the 21st Century and four modern-day breakthroughs have revolutionized daily life for millions of people around the country.
First, the high speed rail network. Connecting most major cities, the high-speed railway system has been praised as fast, comfortable and more punctual than air travel.
Second, mobile payment. This has transformed China into a predominately cashless society, where even credit and debit cards are seldom used. The penetration rate of cellphone payments now stands at 65 percent, with everything from high end department stores right down to street food vendors allowing customers to scan a QR code to pay for goods and services.
Third, the shared bicycle system. This has had a massive impact on the way Chinese people travel and single-handedly sparked a bicycle revival in China. Scan to ride, then lock and leave. No docking stations are needed at all! This phenomenally popular model has even been exported to countries such as Singapore and the UK.
And finally, online shopping. In China, not just clothes and books can be bought at the touch of a button...quite literally everything can be found and bought online. Takeout food, laundry and manicure services, flowers, goods storage. The list is, quite literally, endless.
Of these four areas which have revolutionized life in China, entrepreneur Bruce Nikoo says he has been most impressed by the explosive popularity of mobile payments.
"It is not just money; China is creating lots of foundations and programs, they encourage Chinese enterprises, specifically information and communication technology to invest research and development, the key driver behind the new growth trajectory of China is going to be science, technology and innovation," he said.
However, Nikoo did point out that China has been growing so rapidly in the last four decades that some worry further development might be difficult.
In 2016, the State Council issued a national scientific and technological innovation plan to improve the country's technology and innovation capabilities, and to bring comprehensive innovation capabilities up into the world's top 15 by 2020.
In 2015, 213 billion US dollars were spent on scientific research and experiments. Invention patent ownership reached 630 per million people. In addition, the contribution rate of technology to economic growth increased from 21 percent in 2010 to 55 percent in 2015.
Furthermore, the development of Artificial Intelligence (AI) in China is also thriving. According to Bruce Nikoo, the next wave is going to be AI, and the strategy of every company is going to be an AI first strategy.
Pudong-based enterprises have made a breakthrough and acquired protection from Shanghai Customs for their intellectual property assets after a rigorous strategy to do business overseas.
The three-month campaign ensured enterprises can now safeguard their intellectual property rights over traditional export products with comparative advantages, such as: Home appliances, consumer electronics, engineering machinery and several other featured items.
Customs sent officers to several key enterprises for intellectual property law enforcement coordination to work with intellectual property law enforcement staff to launch a crackdown on offenses against intellectual property.
The Shanggong Shenbei (Group) Co, on Luoshan Road, is the parent of Shanghai Shanggong Butterfly Sewing Machine Co and owns brands "Shanggong" and "Butterfly" which are often counterfeited by industry peers.
Shanghai Customs carried out surveillance protection on products with high risks of being counterfeited and seized 100 fake "Butterfly" sewing machines exported by a trade firm in Ningbo City. As a consequence, an offender was discovered and eventually found guilty by the No.3 Intermediate People's Court of Shanghai last September.
First IPR Center launched
Shanghai's first intellectual property protection center was established in July, in Zhangjiang Hi-tech Park, to shorten the patent application process and enhance protection. The China (Pudong) Intellectual Property Rights Protection Center helps to halve the application process by 15 months. Previously, applications had to be lodged with the State Intellectual Property Office in Beijing, a process which could take up to two-and-a-half-years.
The center hires an expert panel to evaluate and help improve the patents before submitting them to the national office.
Those submitted through the Pudong center will also enjoy a faster "green channel" in Beijing.
At present, the center offers fast access on high-end manufacturing and bio-pharmaceutical industries for Pudong-based companies from both home and abroad. The service will expand later.
The two pillar industries of Pudong generated more than 140 billion yuan ($21.42 billion) in production value in 2016, and more than 6,500 approved patents. Most came from leading companies, such as: Commercial Aircraft Corporation of China (COMAC), MicroPort Scientific Corporation and Semiconductor Manufacturing International (Shanghai) Corp.
High demand for patent protection
Pudong is home to burgeoning high-end equipment manufacturing and bio-pharmaceutical industries, where demand for intellectual property rights service is high.
In the last year, Pudong enterprises filed more than 9,500 patent applications in high-end equipment manufacturing industry with 2,300 coming from the bio-pharmaceutical industry.
A complaint channel and a range of mechanisms will be established by the center to protect intellectual property rights, including: Fast response mechanism of complaints, a multiplex mechanism of disputes solution, and an online rights protection mechanism of competitive industries.
In addition, the center will initiate coordinated and cooperative actions to protect intellectual property rights in all industries. They will investigate and penalize illegal practices on patent, trademark and copyright.
They will also carry out special law enforcement operations, and promote fast response to infringement of IPR in key fields, areas and markets.
The center will also work with the Shanghai intellectual property court (the No.3 Intermediate People's Court of Shanghai) to enhance the protection.
Pudong has adopted a series of measures to reform the intellectual property rights management system since 2014 and the Pudong Intellectual Property Bureau was founded on January 1, 2015 to combine patent, trademark and copyright services into one.
Pudong has stepped up the protection of intellectual property rights since it opened China's first independent intellectual property bureau to handle disputes over trademarks, patents and copyrights.
Unlike other places in China where intellectual property rights disputes are handled by different departments with poor efficiency, the Pudong Intellectual Property Bureau is the merger of three departments for separate protection of trademarks, patents and copyrights.
Shanghai Upper Biotech Pharma Co Ltd, for instance, bought a global IP composite insurance from Cathay Insurance last November. The deal was brokered by the bureau which promotes intellectual property insurance to potential buyers.
The bureau also set up an intellectual property rights service platform in Shanghai Pilot Free Trade Zone to encourage innovation and establish long-term cooperation with the Walt Disney Company to solve intellectual property rights complaints. Last year it confiscated 727 pirated Disney products.
Dispute settlement system
Pudong also devised an intellectual property rights dispute settlement system involving government mediation, judicial mediation and third-party mediation. Last year, the bureau resolved 57 dispute cases through third-party mediation.
In the first 11 months of 2016, Pudong generated more than 26,000 patent applications, up 33.2 percent from the same period of last year. Moreover, an intellectual property tribunal was set up in Shanghai Pilot Free Trade Zone in April 2015.
The intellectual property tribunal is administrated by Shanghai Pudong New Area People's Court to meet the increasing demand for intellectual property protection in the zone.
An intellectual property rights judicial protection liaison office of the Supreme People's Court of China (SPC) was unveiled in the zone at the same time. With the liaison office, emerging or complex issues concerning intellectual property rights cases of the zone are more efficiently communicated to the SPC.
China has become a nanotechnology powerhouse, according to a report released at the 7th International Conference on Nanoscience and Technology in Beijing recently.
China's applied nanoscience research and the industrialization of nanotechnology have been developing steadily, with the number of nano-related patent applications ranking among the top in the world, said the report.
The report was co-produced by Springer Nature, the National Center for Nanoscience and Technology, and the National Science Library, which is part of the Chinese Academy of Sciences or CAS.
According to Bai Chunli, president of CAS, China faces new opportunities for nanoscience research and development as it builds the NCNST and globally influential national science centers.
"We will strengthen the strategic landscape and top-down design for developing nanoscience, which will contribute greatly to the country's economy and society," said Bai.
Nanoscience is the study of the interaction, composition, properties and manufacturing methods of materials at the nanometer scale.
The science encourages integration of many disciplines and has a direct impact on daily work and life because it leads to the discovery of advanced technology.
In 1997, around 13,000 nanoscience-related papers were published worldwide. By 2016, the number had risen to more than 154,000, the report said.
The number of papers related to nanoscience from China grew from 820 in 1997 to over 52,000 in 2016.
Since 2007, the average compound annual growth rate of China's most cited nanoscience papers was 22 percent－three times the global rate, the report stated.
In terms of the number of nano-related patent applications, China has reached 209,344 over the past 20 years, accounting for 45 percent of the world's total.
In 2003, CAS and the Ministry of Education co-established the NCNST. Key to the NCNST's success has been the involvement of three of China's top research institutions－Tsinghua University, Peking University and CAS, said Liu Minghua, director of the NCNST.
Liu said that thanks to robust funding, a growing number of Chinese scientists have been attracted to research of nanomaterials. Additionally, more foreign-trained Chinese researchers have returned to China under favorable policies.
Energy nanotechnology and catalytic nanomaterials are the top two fields in which China has made remarkable achievements.
Faced with mounting public pressure to tackle deteriorating environmental problems, China is putting great effort into the research and development of new energy, as well as energy efficiency and environmental protection technology.
This has made energy-related nanotechnology a promising area, leading Chinese researchers to research batteries and energy storage and conversion, Liu said.
Catalytic nanomaterials research is considered China's most promising area of nanoscience. Nanostructure-based catalysts can speed up chemical reactions and could be useful in chemical industries and oil refining, experts said.
Bai said both challenges and opportunities await China.
More breakthroughs in basic nanoscience research need to be made, and the gap between basic research and application should be closed.
CAS will foster more young scientists who can innovate, accelerate the building of value chains, and foster broad and efficient international collaboration, Bai said.
"Through our joint efforts, we expect to apply nanotechnology to various sectors that will benefit the people and help China to be a global leader in science and technology," Bai said.
Chinese are willing to pay for online content, showing their readiness to protect copyright online, experts said.
"The market for paid online content just started in China and shows remarkable growth. ... Without copyright protection, paying for content would no longer exist, particularly when large scale pirating occurs," said Lyu Benfu, a professor specialized in online economy at the University of Chinese Academy of Sciences in Beijing.
Netizens are increasingly willing to pay for valuable content.
"Five years ago, it was almost free to listen to music online. Nearly all music websites were free. I had no idea that what I downloaded was pirated copies, which harmed my favorite singers' intellectual property," said Zhang Hui, a magazine editor in Shanghai.
As a magazine editor, Zhang has sometimes been upset to find her articles being stolen online. But previously, it rarely occurred to her that she was encouraging copyright infringement by never paying to read or listen to music online.
"I do now," she said.
Zhang is not the only one to raise copyright protection awareness in China.
A recent study by iResearch, a Beijing-based consulting firm, showed that nearly half of Chinese netizens are willing to pay or have paid for online content, compared with 30 percent in 2014.
"Valuable content created by scholars, scientists and artists was published online for free in the past. But in recent years, more and more people have started to believe they should pay for access to that content.
"So, many websites have created platforms to collect payment," said Xiang Songzuo, deputy director of the International Monetary Institute at Renmin University of China in Beijing.
"It will be an inevitable trend. Knowledge, especially high-quality knowledge, should command a good price. ... Authors will pay more attention to their content when it costs money to access. It is mutually beneficial. Consumers willingly pay for high-quality content. Authors will be encouraged to create better content," he said.
Some new technology prevents digital content infringement online.
"Suizhi uses a new technology involving code and digital copyright technologies to prevent online infringement. The company has obtained seven patents. Digital content including video, audio and text files can be sold at a certain price. Payment is for one copy. The new technology helps turn knowledge into money," said Liu Tongpeng, founder of Suizhi.com, an e-commerce content website.
Suizhi allows authors to upload their works and sell their knowledge at a certain price.
China has compiled a new index to reflect the contribution of new growth drivers to the country's economic growth, said its statistical head on Thursday.
"After five years of exploration and application, China has established a statistical system that can reflect the development of the country's new growth drivers and industries," said Ning Jizhe, head of the National Bureau of Statistics.
He made the announcement at the ninth meeting of the heads of national statistical offices of the BRICS countries in Hangzhou, Zhejiang province.
The New Growth Driver Index shows the role of economic vitality, digital economy, restructuring, knowledge capacity and innovation as new growth drivers.
Each of the five is again measured by way of a sub-index.
The new index has 2014 as its starting point. In 2015, it reached 129, up 29 percent year-on-year, said Ning.
The rise of the index in 2015, the latest year for which data is available, shows that China's new growth drivers are expanding at a fast pace.
China's economic vitality is growing, said a development report on China's new economic momentum, released for the first time by the NBS at the BRICS meeting.
The Chinese Academy of Science and Technology for Development, a think tank affiliated to the Ministry of Science and Technology, released a similar index in January to reflect the role new growth drivers, such as innovation and emerging industries, have played in expanding the Chinese economy.
That index had continued to grow in the 2012-15 period.
China has made strenuous efforts to restructure its economy, with focus on maximizing the potential of the economy through encouragement of innovation and support for the development of some key emerging areas such as new materials, artificial intelligence, internet and the digital economy.
NBS data show that from January to July, China's patent applications rose by 8 percent year-on-year to 1.83 million.
During that period, China's online retail sales increased by 33.7 percent, 6.2 percentage points higher than the same period of last year.
In the Global Innovation Index rankings compiled by the World Intellectual Property Organization, China stood at the 22nd place this year, up from 34 in 2012 and is the highest among mid-income economies.
The two-day statistical office head meeting of BRICS－Brazil, Russia, India, China and South Africa－opened in Hangzhou on Thursday, shortly after the three-day BRICS Summit ended in Xiamen in East China's Fujian province.
NBS' Ning urged statistical authorities of the five countries to improve cooperation and standards of statistical work related to new growth drivers.
Payment for the use of China's intellectual property by overseas economies skyrocketed nearly 500 percent in the first seven months, as the country's service export improves, data from the Ministry of Commerce indicated on Thursday.
China's service trade deficit has narrowed significantly, according to Gao Feng, the ministry's spokesman. In July, the figure decreased 30 percent month-on-month and 1.8 percent year-on-year to 141.5 billion yuan ($21.8 billion).
The structure of service trade has been optimized, with exports of the emerging sectors' services racking up the biggest increase, Gao said.
In the first seven months, exports of emerging sectors' services totaled 405.6 billion yuan, up 8.3 percent year-on-year. This was 3.9 percentage points higher than the overall growth rate, accounting for over half of total service export.
Specifically, exports of culture and entertainment services surged 20.4 percent year-on-year, and those of maintenance services by 14.4 percent year-on-year.
Liu Chao, deputy director-general of legal affairs at the China Council for the Promotion of International Trade, said: "China has made reasonable changes in response to foreign companies' opinions especially in areas such as IPR protection, foreign investment categories and the labor environment, as these elements connect directly with the country's foreign direct investment flows."
"In addition, all the free trade agreements, such as China-South Korea FTA or China-Australia FTA China signed with partner countries, have stipulated clear policies and measures in tackling crimes regarding the protection of intellectual property rights," said Liu.
Guo Xiaojun, deputy director of the CCPIT Patent and Trademark Law Office, said the rising payments for the use of China's intellectual property by overseas economies indicated that the patent market is "quite lively" and "on a trajectory toward maturity."
"In the past, China urged companies to apply for high-quality patents. Now the country is encouraging them to use patented technologies and copyrights in a lawful way, which helps them better realize their business value."
Earlier this year, China pledged a further opening up of services and industries related to healthcare, finance, insurance, telecommunications, technical service, energy-saving and environmental protection.
The government has also increased its supervision of daily necessities, electronics, cosmetics, garments and pharmaceutical products being exported to overseas markets, and cracked down on illegal activities such as forged export certificates and official seals.
Between January and July, China's total imports and exports of services reached 2.65 trillion yuan, a year-on-year increase of 10.6 percent, according to the ministry.
Service imports showed a similar uptrend. The country's imports of telecommunication, computer and information services surged by 74.2 percent to 71.8 billion yuan. The figure for intellectual property costs rose by 25.8 percent to 112.6 billion yuan.
Nation open to further free-trade deals
China takes a positive and open attitude toward reaching free-trade deals among BRICS countries, the Ministry of Commerce said on Thursday.
So far, China has reached 15 free trade agreements with 23 countries and regions, according to Gao Feng, the ministry's spokesman.
Gao said China is making strenuous efforts to promote related negotiations and conducting joint feasibility studies, in order to further boost regional trade and investment.
"Economic and trade cooperation has always been an important pillar of BRICS relations. We are committed to strengthening economic integration in the area," he told a news conference.
Gao's comments underscored China's resolve to deepen comprehensive cooperation with other BRICS countries: Brazil, Russia, India, and South Africa.
The nations are home to over two-fifths of the world's population, with their combined gross domestic product totaling more than $16 trillion.
During the recently concluded BRICS summit in Xiamen, China announced it would offer 500 million yuan ($76.4 million) for a BRICS-related economic and technology cooperation plan, and another $4 million for projects at the New Development Bank.
Meanwhile, the five nations agreed to further enhance cooperation in such fields as insurance and reinsurance, taxation reform, and customs.
A Chinese self-balancing vehicle maker that recently won a patent case launched by U.S. competitors told the Global Times on Wednesday that despite the victory, the company had sustained massive losses in business.
Hangzhou Chic Intelligent Technology Co said in a statement that the case cost the company "a huge amount of capital and personnel and seriously lowered the company's ability to invest in research and development and innovation."
The company was accused by U.S. company Razor USA LLC, which also makes self-balancing vehicles, and two other parties of copyright infringement over the technology in the vehicles, which are also known as hoverboards. The companies asked the U.S. International Trade Commission (USITC) to ban imports of hoverboards from China.
But the USITC on July 28 ruled in favor of the Chinese company, saying the commission did not find a violation of Section 337, under which the commission determines if there was unfair competition for the imports, and subsequently closed the investigation.
Though that's good news for the Chinese company, it's hardly a cause for celebration.
"Innovation is the core competitiveness of Chic, but in the past year, we had to postpone research and development of more products because of a capital shortage. This caused many potential losses for the company," Chic said in the statement sent to the Global Times on Wednesday evening.
Furthermore, the company still faces a separate case on copyright from another U.S. company, a decision on which is due in late October, according to the statement.
Chic's case in the U.S. has become a common situation for many Chinese companies that are seeking to tap into the market but which face legal and other issues, according to media reports.
The company did not disclose specific amount of cost for the lawsuit, but some domestic news outlets had said the lawsuit cost Chic upward of $1 million in legal fees and that the 337 Investigation had become a common pain for Chinese companies.
Chic on Wednesday also offered a suggestion for Chinese companies that face such cases. The company said that as many Chinese companies are expanding overseas, they need to make sure to register properly their copyrights and patents and if they face any unfair treatment, stand up and fight.
The number of China's patent operations stood at more than 170,000 in 2016, a year-on-year increase of nearly 20 percent, according to the latest data from the Patent Information Annual Conference of China 2017 held in Beijing from Sept. 5 to 6.
Patent operations include patent transfer, license and pledge.
Intellectual property (IP) is playing an increasingly important role in China's exchange with other countries in fields like economy, trade, science and technology, and culture, Shen Changyu, head of the State Intellectual Property Office, said at the opening ceremony.
"China will continue to boost international IP cooperation and facilitate the building of an inclusive, balanced and efficient international IP standard," Shen said.
From establishing its IP system in 1980s, China has become the country that has filed the most patent applications, said Yoshiyuki Takagi, assistant director general of the World Intellectual Property Organization.
China will step up reform to support innovation by removing barriers to entrepreneurship and innovation.
The decision was made at a State Council executive meeting chaired by Premier Li Keqiang on Wednesday.
The meeting decided that the government will roll out a host of reform measures that have been tested in eight areas, including the Beijing-Tianjin-Hebei region, Shanghai and the Pearl River Delta, since June 2016.
Among them: Eligible foreign students with academic backgrounds equal to or above the master's degree level would be able to apply for a work permit or a work-related residence permit. The one-stop application and issuance of work permits for foreign experts will also be made available nationwide.
The meeting also decided to test a program in the aforementioned eight areas that allows foreigners to apply for permanent residence if their income, tax payments and duration of work in China meet a certain standard.
Chinese leaders have stressed the importance of the innovation-driven development strategy on multiple occasions.
President Xi Jinping said systematic, comprehensive and coordinated reform should be tested with innovation-driven development as the target, innovation in science and technology at the core and the removal of systematic and institutional barriers as the main focus of the efforts.
Li called for major progress in systematic and institutional innovation, with focus on breaking the fragmentation in the allocation of innovation resources.
"We must give full play to the role of innovation in spurring entrepreneurship and employment, and speed up the transformation of innovation into real productivity," he said.
The meeting on Wednesday decided to enhance the support to the innovation of SMEs and micro enterprises with more targeted measures. One-stop investment and financing information service for small and medium-sized enterprises would be made available nationwide. That would include a pledge for patent rights associated with loans, insurance and risk compensation.
The protection of intellectual property rights will be taken to further heights, and measures will be promoted nationwide to better safeguard the legitimate rights of innovators and their legitimate earnings.
Such measures include one-stop service for patent examination, rights protection and verification. They also include innovation-oriented evaluation and incentive plans within State-owned enterprises, and flexible remuneration in colleges and research institutes to attract high-caliber and urgently needed talent.
"We need to create a good environment for innovation, which can also provide lasting support to the buoyant momentum of the economy. Innovation-driven development relies on adjustment in industry and product structure and the transformation of the development model," Li said.
Meeting participants also called for local offices of the State Administration of Taxation and local taxation bureaus to further integrate their resources and provide one-stop services.
Fu Rao, a patent engineer at Chinese home appliance maker Midea Group, has no time for cooking yet knows everything there is to know about kitchen ventilators and microwave ovens.
Standing in front of a wall of patent certificates, Fu said his job is to clear patent barriers from other companies to make sure Midea's kitchen products can reach the shelves of any market.
"Protection of intellectual property rights enables us to break through the patent wall built by our competitors and expand our own businesses," he said.
Starting as a rural production unit of just 23 members half a century ago, Midea has grown into a global home appliance giant with an annual revenue nearing 160 billion yuan (24 billion U.S. dollars).
Last year, after taking over German robotics firm Kuka and several arms of Japan's Toshiba, Midea announced plans to enter patent-intensive smart industries, including intelligent supply chains, automation, and heating ventilation air-conditioning.
Midea applied for more than 13,500 patents in China in 2016 alone, including 5,500 invention patents.
Sun Mingyan from the law department said the company had also stepped up international patent application.
"We will probably encounter major setbacks in global market if we can't protect our technological assets effectively or manage our intellectual property properly," Sun said.
He said Midea had invested 20 billion yuan in technology research and development from 2012 to 2016. The investment, patented technologies, 17 R&D centers across the world as well as over 10,000 technicians have become Midea's most important assets.
For instance, the core technologies of inverter microwave ovens had long been monopolized by Japanese companies, Fu said, but Midea made a major breakthrough in converter technology in 2016 after ten years of continuous investment.
"Concerning converter technologies, Midea has applied for 57 patents, including eight international ones. Midea is becoming a world leader in this field," Fu said.
Hao Chuanxin, director of a patent and trademark agency for multi-national Chinese companies, said quite a few high-tech start-ups in China had paid a lot of attention to building intellectual property from the very beginning.
Midea has a patent team of over 90 members, including 70 patent engineers. Each new product will go through at least four patent examinations before being put on the market.
"As Chinese companies gain progress in IPR protection, efforts to contain their expansion and development in overseas markets using patent and intellectual property barriers have proved futile," Hao said.
As an emerging business model in recent years, bike sharing is becoming a symbol of China's fast-developing sharing economy, representing its cutting-edge innovation and entrepreneurship, but industry experts have warned of potential intellectual property risks now that domestic operators are seeking to expand globally.
"Bike sharing, as well as many other new industries and business models, is a combination of IPs itself, and it cannot grow well without IP," Wang Bing, director of the IP law research center at Tsinghua University, told China Intellectual Property News.
Ofo, founded in Beijing in 2015, is one of China's earliest bike-sharing operators. It has expanded its business to seven foreign countries, including Singapore, the United Kingdom, the United States, Thailand and Japan.
The company operates more than 8 million bicycles, clocking in more than 25 million rides a day, making it one of the world's largest bike-sharing networks.
It has applied for about 500 trademarks in China and abroad.
Ofo's competitor Mobike has applied for more than 140 patents and registered 180 trademarks in China and overseas. Its service covers more than 100 cities internationally.
Each Mobike vehicle is equipped with a Beidou-GPS-Glonass positioning chip. Big data, cloud computing and internet of things technologies have allowed for riding trends forecasting and smart parking management in the background managing system.
"The sharing economy features integration of capital and IP," Wang said, adding that IP is an attractive element for investors.
Ofo's direct investor is Didi Chuxing, which is funded by Tencent, Foxconn and Ant Financial. Tencent and Foxconn are also direct investors in Mobike. Ant Financial has also invested in another bike-sharing operator Youon.
Mobike CEO Wang Xiaofeng said there will be greater potential if the major players join hands.
Despite increasing their popularity, Chinese bike-sharing companies that have expanded into the overseas markets "generally have few international patent applications", said Cao Xinming, deputy director of the center for IP rights studies at Zhongnan University of Economics and Law. He called for IP deployment prior to market expansion.
"Competition is increasingly intense in both the Chinese and overseas markets, and the overseas markets have higher challenges in IP," he said.
There are already competitors in many overseas markets, including Citi Bike in the US, Velib in France and Docomo Bikeshare in Japan.
According to a report by ResearchInChina, an independent provider of Chinese business intelligence, there will be 61.7 million bike-share users in China this year, double the number last year. The report expects that number to hit 198 million by 2021.
The report said the industry's revenue will reach 8.86 billion yuan ($1.34 billion) this year and estimated it will reach about 29 billion yuan by 2021.
Amid such a huge market and increasing competition, companies should enhance their IP capacities, conduct research and analyze the IP map of their targeted markets, Cao said.
More than 500 delegates attended a forum on Tuesday in Zhuhai, Guangdong province, focusing on intellectual property commercialization and innovation in finance. Attendees included government officials, scholars and executives from companies, financial institutions and IP agencies.
Commercialization involves all the processes required to turn IPs - such as patents and copyrights - into products available for consumers, including licensing, transfers and industrialization.
"It is the only way to fully unleash the value of IP rights and it is the purpose of all IP work," said He Hua, deputy commissioner of the State Intellectual Property Office.
He said that SIPO has made a series of attempts, including the establishment of IP commercialization and trading centers, as well as nurturing IP-intensive industries, to seek new IP operation models to realize higher value in the industry.
Besides the main public IP service platform based in Beijing, two pilot IP commercialization centers have been founded in Xi'an and Zhuhai, as part of the national IP operation network. The Xi'an, Shaanxi province, institution specializes in the integration of patents and technology from the civilian and military sectors. The one in Zhuhai focuses on innovative IP financing methods.
SIPO has also invested in 20 IP operation organizations nationwide and has supported four provinces in their efforts to launch patent-pledge loan risk funds, He said.
The value of patent-pledge loans in China totaled more than 2 billion yuan ($303.9 million) over the past five years, with an average annual increase of 33 percent.
Chen Hongbing, head of the World Intellectual Property Organization's China office, said China has made "remarkable achievements in IP after 30 years of development, and is becoming a strong IP powerhouse".
Chen said the Pearl River Delta - where Zhuhai is located - already has a strong foundation, with its advantageous geographical position in the center of the Hong Kong-Macao-Guangdong region. "Zhuhai's IP operation emphasizes innovative finance and international trade, aiming at the excavation of IP value."
Universities and research institutions are major generators of patents, but less than 10 percent of their patents have become products on the market, said Song Hefa, a researcher at the Institute of Policy and Management at the Chinese Academy of Sciences.
He said some effective IP commercialization models include patent pools, patent auctions, and crowdfunding.
"China should strengthen IP operation analysis to identify the patents that are worth commercialization on the one hand, and find profitable operation models on the other hand," he said. "But ultimately, it depends on people - comprehensive IP operation personnel."
Nationwide campaign launches, aiming to tackle fraudulent goods, to support companies selling goods overseas
Customs authorities across China will start a three-month special campaign, code-named Longteng, on Friday to protect the intellectual property rights of exporting Chinese companies.
Enforcement will focus on small home appliances, electronics, engineering equipment, daily commodities and local specialties that are exported to Africa, the Middle East, Latin America and countries and regions related to the Belt and Road Initiative.
Yang Zongren, head of the policy and regulation department at the General Administration of Customs, said the operation will help to nurture those Chinese companies with IP advantages in their respective exported goods.
"Customs offices nationwide will concentrate their forces to strike the import and export companies that infringe IP rights, and will facilitate an environment of order and fair play for those companies seeking global development," he said at a recent meeting in Qingdao, Shandong province, briefing the campaign to about 150 local companies.
The General Administration of Customs listed 156 key companies in the campaign, which own well-known trademarks or core patents in their industries, or have self-developed products accounting for at least 10 percent of their total export volume.
The companies include high-tech giants, such as Huawei Technologies and ZTE, and those in traditional businesses, such as traditional Chinese medicine-maker Beijing Tongrentang Group and vinegar-maker Jiangsu Hengshun Group.
Among them, 28 are based in Shandong, accounting for 18 percent of the total number.
Customs offices will analyze those companies' import and export data to find elements of risk and to create solutions, Yang said.
Authorities in the Yangtze River and Pearl River deltas and the Beijing-Tianjin-Hebei area will establish regional cooperation and quick response mechanisms.
Yang said that by carrying out the campaign they want to encourage the companies to resort to customs protection actively.
Chinese companies have so far registered 18,000 intellectual properties at the General Administration of Customs, accounting for 55 percent of total registrations.
Since 2013, China's customs authorities have seized nearly 110,000 batches of goods involving IP infringement in the foreign trade segment, including 6,721 batches in the first six months of this year. The total illegal value involved amounted to more than 1.5 billion yuan ($226 million).
More than 2,100 rights owners from 62 countries and regions have been protected, Yang said.
The Chinese and United States customs offices conducted a monthlong joint operation in April last year, focusing on consumer electronics, auto parts, food, drugs and sportswear via post delivery. It aimed to enhance the enforcement partnership between the two countries in an attempt at new cooperation models.
In November and December last year, the General Administration of Customs launched a campaign targeting exported self-balancing scooters. During the campaign, customs offices nationwide seized more than 12,000 IP rights-violating scooters in 28 batches, with a total value of nearly 13 million yuan.
Three intellectual property rights (IPR) courts have concluded the proceedings over 33,000 cases in the past three years, according to a report submitted to the top legislature Tuesday.
These cases include more than 8,000 concerning highly technical issues such as patents, new species of plants, layout designs of integrated circuits and computer software, according to the report from the Supreme People's Court.
Chief Justice Zhou Qiang presented the report to the ongoing bimonthly session of the National People's Congress (NPC) Standing Committee. Top legislator Zhang Dejiang attended the session.
The three courts were established in Beijing, Shanghai and Guangzhou in late 2014 following a resolution from the NPC Standing Committee.
They have handled landmark cases including granting punitive damages to trademark infringements and covering applicants' counsel fees in the compensation.
The courts also employed 61 technology investigators to assist judges in 1,144 cases, said the report.
The report called for an appellate mechanism for IPR cases at the national level and more IPR courts.
China has become a nanotechnology powerhouse, according to a report released at the 7th International Conference on Nanoscience and Technology (ChinaNANO 2017) in Beijing on Tuesday.
China's applied nanoscience research and the industrialization of nanotechnology have been developing steadily, with the number of nano-related patent applications ranking among the top in the world, said the report.
The report was co-produced by Springer Nature, National Center for Nanoscience and Technology (NCNST), and the National Science Library of the Chinese Academy of Sciences (CAS).
According to Bai Chunli, president of CAS, China faces new opportunities for nanoscience research and development as it builds the NCNST and globally influential national science centers.
"We will strengthen the strategic landscape and top-down design for developing nanoscience, which will contribute greatly to the country's economy and society," said Bai.
Nanoscience is the study of the interaction, composition, properties and manufacturing methods of materials at the nanometer scale.
The science encourages integration of many disciplines and has a direct impact on daily work and life because it leads to the discovery of advanced technology.
In 1997, around 13,000 nanoscience-related papers were published worldwide. By 2016, the number had risen to more than 154,000, the report said.
Over the same period, the number of papers related to nanoscience from China grew from 820 in 1997 to over 52,000 in 2016.
Since 2007, the average compound annual growth rate of China's most cited nanoscience papers was 22 percent -- three times the global rate, the report stated.
In terms of the number of nano-related patent applications, China has reached 209,344 over the past 20 years, accounting for 45 percent of the world's total.
In 2003, CAS and the Ministry of Education co-established the NCNST. Key to the NCNST's success has been the involvement of three of China's top research institutions -- Tsinghua University, Peking University and CAS, said Liu Minghua, director of the NCNST.
Liu said that thanks to robust funding, a growing number of Chinese scientists have been attracted to research of nanomaterials. Additionally, more foreign-trained Chinese researchers have returned to China under favorable policies.
Energy nanotechnology and catalytic nanomaterials are the top two fields in which China has made remarkable achievements.
Faced with mounting public pressure to tackle deteriorating environmental problems, China is putting great effort into the research and development of new energy, as well as efficient energy and environmental protection technology.
This has made energy nanotechnology a promising area, leading Chinese researchers to research batteries and energy storage and conversion, Liu said.
Catalytic nanomaterials research is considered China's most promising area of nanoscience. Nanostructure-based catalysts can speed up chemical reactions and could be useful in chemical industries and oil refining, experts said.
Bai said both challenges and opportunities await China. More breakthroughs in basic nanoscience research need to be made, and the gap between basic research and application should be closed.
CAS will foster more young scientists who can innovate, accelerate the building of value chains, and foster broad and efficient international collaboration, Bai said.
"Through our joint efforts, we expect to apply nanotechnology to various sectors that will benefit the people and help China to be a global leader in science and technology," Bai said.
Beijing aims to strengthen the software sector as a key pillar of the city's industry, according to local officials, as it leads the capital's system of advanced industries.
Last year, the software and information service sector's operating revenue reached 728.76 billion yuan ($109.23 billion), a year-on-year rise of 10.2 percent. The operating revenue of each company on average was 260 million yuan in 2016, a year-on-year increase of 13.6 percent.
During the 13th Five-Year Plan period (2016-20), Beijing made the sector a strategic engine for the digitization and informatization of its economic and social development. The city will focus on quality improvements and increasing efficiency in the industry, in striving to become an internationally influential software innovation city.
Beijing abounds in software products and technological innovation. Software copyright registrations in the city reached 82,490 in 2016, up 27.8 percent year-on-year and accounting for 20.2 percent of the national total.
Patent applications in Beijing's software and information services sector amounted to 17,499 in 2016, up 30 percent compared to the previous year. By 2016, the sector's valid invention patents had reached 17,784.
The city is home to many leading and up-and-coming companies in the sector. Ten Beijing companies were included in the 2016 Deloitte Technology Fast 50 China report, nine of which were from the software and information services industry.
There are eight national-level enterprise technology centers in the sector in Beijing and 159 city-level centers. Companies' internal expenditure for scientific research totaled 68.65 billion yuan last year, a year-on-year increase of 29.2 percent.
Nationwide equity investment in Beijing's software sector amounted to 80.23 billion yuan last year, up 56 percent compared to 2015. About 54 percent of that investment went to regions outside Beijing.
Beijing's software sector also promotes collaborative innovation in the Beijing-Tianjin-Hebei region and assists in wider national innovation efforts, local officials in Beijing said.
Software and information service enterprises in Beijing have expedited their expansion in nearby Tianjin and Hebei province, since the Beijing-Tianjin-Hebei collaborative development became a national strategy in 2014.
From 2014 to 2016, 470 such companies from Beijing set up 1,120 branch organizations in Tianjin and Hebei. The organizations are mainly based in the Binhai New Area in Tianjin and cities in Hebei such as Shijiazhuang and Qinhuangdao.
Collaboration related to software among Beijing, Tianjin and Hebei has expanded in recent years and achievements can especially be seen in cloud computing, big data and the Beidou Navigation Satellite System, insiders said.
Beijing and Hebei are cooperating in building a cloud-computing center in Zhangbei county in Hebei. The center plans to have 1.5 million servers in its data center and house at least 200 enterprises by the end of 2020.
The Beijing-Tianjin-Hebei big data comprehensive experimental zone began construction on Dec 22, 2016.
China's Ministry of Commerce has worked with other departments to draft a document on protecting the intellectual property rights (IPRs) of foreign companies in China, an official said Friday.
The document will intensify the crackdown on malicious trademark registration, online IPR infringement and stealing business secrets, deputy minister of commerce Wang Shouwen said at a press conference.
"China has attached great importance to IPR protection and seen visible results," Wang said.
IPR spending to overseas owners rose to 24 billion U.S. dollars in 2016 from 1.94 billion dollars in 2001, an annualized increase of about 18 percent. In the first half of this year, the amount rose 23 percent year on year to 14.3 billion dollars.
"China's IPR protection has brought huge benefits to foreign IPR holders," Wang said.
The country will improve IPR protection for foreign companies by launching campaigns against violations and stepping up judicial and administrative protection, according to a guideline on ensuring foreign investment growth released last week by the State Council.
China's many industries and fields use a well-developed ecosystem to embrace the new technology
Medical, automotive, machinery, consumer electronics, aviation, toys, home decor, even art - it appears there is no industry, sector or field of human endeavor in China that has not been touched by revolutionary 3-D printing technology.
Three-dimensional printing technology has helped create things like clothing, houses, sculpture, tumor models, machine parts and even drones.
Take, for instance, a patient who underwent brain surgery in Beijing recently.
The operation was unconventional, and almost like science fiction. Yet, it was real as well as successful.
In the end, the patient's brain was covered with ReDura, a 3-D-printed membrane, by experts at Peking University Third Hospital.
ReDura is a product of Medprin Regenerative Medical Technologies Co, a Guangzhou-based 3-D bioprinting company.
Yuan Yuyu, chairman of Medprin, says: "Brain surgery incisions used to be covered with membrane made up of animal-sourced materials, which exposes patients to risks of disease transmission.
"It also takes a long time for these animal tissues to be fully integrated into patients' own tissues, which prolongs suffering," he said.
ReDura, which is created using 3-D printers, is made up of biodegradable material.
Suffice it to say that it's magical, amazing and wonderful enough to be a worthy replacement for previous versions of the membrane.
No wonder ReDura has received the approval of the China Food and Drug Administration and gained acceptance in the European Union.
But ReDura is just the tip of the 3-D printing iceberg.
Chinese companies have made rapid advances in 3-D printing technology, whose formal name is additive layer manufacturing.
Progress spans both fundamental research and manufacturing techniques. Different from traditional manufacturing, which is based on the removal of material by cutting and drilling, 3-D printing creates objects by consistently laying down materials, such as wax, metal or polyurethane, based on virtual blueprints from computer-aided designs.
One impressive example in the aviation sector is the C919, China's first large passenger jetliner, which has 3D-printed components that help reduce its weight and shorten the delivery schedule. The plane made its debut flight earlier this year.
Wang Peng, secretary-general of the Additive Manufacturing Alliance of China, says that after years of development, 3-D printing is entering a new phase in China, from an innovative concept to something quite helpful in upgrading manufacturing plants, hospitals and even classrooms.
"3-D printing is booming. We have cultivated a relatively good industrial system, with manufacturing techniques close to, or on a par with, leading foreign countries. The sector is leaping from laboratory research into industrial applications," Wang says.
Last year, the output value of China's 3-D printing industry hit nearly 8 billion yuan ($1.2 billion; 1 billion euros; ￡931 million), up by 87.5 percent year-on-year and highlighting the strong momentum, according to date from the Additive Manufacturing Alliance of China.
Beijing, Shanghai and Shaanxi, Guangdong and Hubei provinces have formed a 3-D industry chain, in terms of geography, that covers product design, materials, key components, equipment and applications. Shaanxi province has applied for more than 1,000 patents related to 3-D printing.
"The technology represents the future direction of intelligent manufacturing, as it combines the advantages of large-scale production with personalized manufacturing. It is highly efficient and cost-effective," says Zuo Shiquan, a manufacturing expert at the Beijing-based China Center for Information Industry Development, a research institute affiliated with the Ministry of Industry and Information Technology.
China's 3-D printing industry is expected to reach $7.68 billion in output value, or one-third of the global market, by 2020, according to a forecast by the China Industry Information Institute.
The ministry is drafting a 2017-20 plan to accelerate the development of 3-D printing. It established the National Innovation Center by forging extensive partnerships between universities and companies. The idea is to help address technological bottlenecks that impede commercial applications.
Not surprisingly, companies such as Shining 3D Tech Co, a Hangzhou-based 3-D printing specialist, are optimistic about the sector.
Shining has already provided 3-D printing and scanning services to over 10,000 customers worldwide. Its clients include global corporate icons such as Intel Corp, Robert Bosch and Adidas.
Huang Xianqing, senior vice-president of Shining 3D, said 3-D printing can meet consumers' growing demand for environmentally friendly and personalized products.
The company has successfully applied its techniques to manufacture exhaust pipes for Ford cars. Different from traditional exhaust pipes, whose simple design can lead to bad air flow and huge power loss, the company's 3-D-printed pipes weigh 67 percent less. They can also help save energy.
Earlier this year, Shining partnered with US tech company Hewlett-Packard Inc to offer better 3-D printing services. The two sides will deploy hardware and software in 50 locations across China, including Beijing, Shanghai, Guangzhou, Chengdu and Nanjing.
It's not just high-tech or top-end segments that are embracing 3-D printing. In Beijing's suburban Huairou district, Chinese engineers in an economic and development park are scrambling to make 3-D printers that can produce household items.
The engineers are employed by about 300 companies in the zone, among which is Beijing Tiertime Technology Co, China's first exporter of 3-D printers.
Tiertime Tech sells tens of thousands of 3-D printers to more than 40 countries every year. Its 150-plus employees print products ranging from toys and cartoon figures to mobile phone shells and home decor.
Luo Jun, secretary of the World 3D Printing Technology Industry Alliance, says China needs to step up research and development on the "ink" for 3D printers (that is, material with stable qualities).
China is steadily progressing in its overall ability to innovate, a report released last Friday by the Chinese Academy of Science and Technology for Development showed.
The nation overtook Belgium to rank No 17 among 40 countries in the national innovation index report 2016-17, moving one place up from last year's ranking.
The top five countries on the index are the United States, Japan, Switzerland, South Korea and Denmark. China is the only developing country among the top 20.
Wu Yishan, vice-president at the Chinese Academy of Science and Technology for Development, said the national innovation index is an important indicator reflecting the nation's comprehensive innovation capability.
The report said China's research and development expenditure hit $227.54 billion in 2015, remaining the world's second-highest spender and accounting for 15.6 percent of the global total. This proportion stood at only 1.7 percent in 2000.
The number of China's R&D personnel accounted for 31.1 percent of the world's total in this year's report, ranking No 1 for nine consecutive years since 2007.
Wu said the 40 countries in the index altogether contributed 95 percent of the world's total R&D expenditure.
The country's Science Citation Index papers amounted to 281,000, accounting for 14.4 percent of the global total. More than 263,000 invention patents have been granted, surpassing Japan for the first time and ranking No 1 globally, according to the report.
The report's analysis showed the 40 countries in the index fall into three groups. The top 15 countries on the comprehensive index belong to the first group, mainly European and North American developed economies, commonly known as innovative countries.
The second group, ranking from No 16 to 30, are other developed countries and a few emerging economies, where China is in a leading position.
Among the 10 emerging economies evaluated, only China's ranking moved up compared with last year's results. Russia dropped one place, while another eight countries maintained the same rankings.
Among the five sub-indices constituting the national innovation index, China's knowledge creation marched four places ahead and its corporate innovation ranking moved up one place. Its rankings for innovation resources, performance and environment were all one place lower than last year's results.
The innovation environment survey suggested China's innovation market environment has been affected amid the wider context of a downturn in economic growth, but the Chinese government is still in a leading position globally in terms of support given to innovation, said Xuan Zhaohui, a senior researcher at the Chinese Academy of Science and Technology for Development.
Lincoln marque owner objects to similar-sounding Lynk & Co's launch in home market
Chinese conglomerate Geely Holding has hit a speed bump on its way into the United States, as Ford Motor has challenged the trademark application for its new car brand Lynk & Co.
Lynk & Co's first car, a compact SUV, is set to hit the Chinese market later this year and was scheduled to reach the United States around 2018.
Alain Visser, senior vice-president of the new brand, expected the U.S. market to generate some 20 percent of Lynk & Co's annual global sales, which he estimated will reach 500,000 vehicles around 2020.
As Geely applied for a trademark in this major target market, however, Ford argued that Lynk & Co sounds too similar to its premium arm Lincoln and may confuse its customers, according to the U.S.-based website Automotive News.
Ford was granted an extension earlier this month by the U.S. Patent and Trademark Office to formally oppose the trademark. It has to file its opposition by Nov 15.
"The Lincoln brand has a rich 100-year history and we intend to protect its reputation," Automotive News quoted a Ford representative as saying.
"Lynk & Co is infringing on the Lincoln trademark and we are taking legal actions to prevent them from using their infringing mark. Their name as it stands will confuse customers."
Song Zhaoheng, a spokesman at Geely Holding, told China Daily on Thursday that the automaker is confident in gaining the trademark in the U.S..
"I don't think the application will encounter big trouble. It is currently going smoothly," said Song, adding that the automaker is very likely to acquire the trademark, through either the normal legal process or consultations with Ford.
Lincoln China did not immediately answer a call for comment on the possibility of any consultation.
Gui Shengyue, executive director of Geely Auto, told Chinese reporters that Geely and Ford have good relations.
It was from Ford that Geely bought Volvo Cars, which is sharing technology with Geely Auto and Lynk & Co.
An Conghui, CEO of Geely Auto, a shareholder of Lynk & Co, said at a news conference in early August that Lynk & Co cars are to rival those from mainstream international brands, such as Volkswagen, GM, Ford and Toyota, while Volvo is to compete in the same segment as Lincoln.
As such, the products themselves are not to compete with each other directly.
Featuring Volvo technology, Lynk& Co models will be initially made in the group's Luqiao plant, which is the same plant Volvo will use to produce its XC40 for the local market.
Besides, Volvo－which now holds 30 percent of Lynk & Co's equity－will give a hand in the overseas markets in other aspects, including its sales and after-sales channels, according to An.
The Swedish marque is also helping to boost the design and quality of the new generation of Geely-branded cars, whose sales from January to July surged nearly 90 percent year-on-year to 621,731 vehicles.
Geely has scaled up its whole-year sales goal to 1.1 million vehicles.
In the first half of the year, the Hong Kong-listed carmaker posted operating revenue of 39.4 billion yuan ($5.9 billion), up 118 percent year-on-year.
A number of Israeli patents and national innovation technology projects will settle in Futian district of Shenzhen, Guangdong province, according to a memorandum of understanding signed on July 12 between the Futian district government and Yissum Technology Transfer Company of the Hebrew University of Jerusalem.
The two parties also agreed to build a Sino-Israeli Global Innovation Center in Futian to support Shenzhen's technology development.
Futian district promised to provide preferential policies such as allocating government guidance funds to the innovation center, while the Israeli side will introduce patented technologies and development programs to Futian district, including seed funds and incubators of the Hebrew University of Jerusalem, parts of the technological patents of Tel Aviv University and Israeli national innovation technology programs.
At the signing ceremony, Gao Shengyuan, head of the Futian government, said that Israel has obvious strengths in innovative technology while Futian enjoys unique advantages in preferential policies, industrial space, incubation resources and a comprehensive environment for enterprises. The cooperation will help Futian become a center for turning international innovation into industrial products.
Itamar Borowitz, a representative from the Hebrew University of Jerusalem, said: "We come to Futian because of the expectation of a bright future.
"We are very happy to share our knowledge and innovation results with Futian district to help turn them into a reality," he added.
Chinese bike-sharing giant Mobike testified in a Shanghai court on Wednesday that its technical process for unlocking the shared bikes is different from the invention of an auto parts technician surnamed Hu, who sued the company for patent infringement.
"The unlocking process of Mobike－which involves the Mobike App on users' smartphones, a cloud server and a lock controller on each bike that are all connected via wireless signal－is more complicated than the patent Hu holds," She Yifeng, attorney for the defendant Mobike (Beijing) Information Technology Co, said at the Shanghai No 3 Intermediate People's Court.
Hu said he submitted a patent application for his invention of an operating method to unlock bicycles to the State Intellectual Property Office in June 2013 and was granted a patent in May 2016.
Hu said that his invention also involved users' smartphones and the vehicles.
"When a user scans a QR code with a smartphone to unlock a bicycle, a system will compare the image to the one stored in its system to determine if they are identical. If yes, it will signal the controller to unlock the bicycle," he said.
He said he believed the lock-control system in use by Mobike carries the same technical characteristics of his patent. He requested the court to order the company to stop manufacturing shared bikes with the system, destroy all locks on its bicycles and pay compensation of 500,000 yuan ($75,000).
Mobike's attorney, She, said the first step of the unlocking process is when a user scans a QR code on a bike with a smartphone and an unlock request is sent to the cloud server.
"The request includes the user's data and the information about this specific bike. After receiving the request, the cloud server will first check if the user is qualified. The process will stop for any user with a substandard credit record or who doesn't have enough money in the prepaid account," She said.
The cloud server, having found the user qualified to ride the bike, will send a signal to the lock controller on the bike, which will then check if the bike is in good enough condition to be used, said She, from Shanghai Fangda Law Firm.
"Bikes that are reported by users to have broken down will not be unlocked," he said.
A verdict is pending.
Yin Xu, a 22-year-old man from Lianyungang, Jiangsu Province, invented an "epilepsy alarm" for his grandmother before leaving home for an internship.
Yin majors in clinical medicine at Kangda College of Nanjing Medical University. According to thepaper.cn, for as long as he could remember, his grandmother had suffered from epilepsy, and her seizures have happened on average once a month, often around midnight.
Epilepsy seizures can occur with convulsions, loss of consciousness, urine and feces incontinence, even cardiac arrests or deaths.
Therefore, prompt detection of epilepsy seizure is of crucial importance.
Yin spent an entire night sleepless when his grandma's epilepsy hit during this past Spring Festival. He became worried that a seizure could come when he's not with his grandma. After not finding a monitoring device for the disease on the Internet, Yin decided to make one himself.
Yin started by tackling the symptom of "gritting teeth," developing a brace with elastic silicon materials, which reduce the damage to teeth and the risk of tongue biting.
"If an epilepsy seizure occurs, gritting teeth will form a closed circuit, and the device will raise an alarm reminding families to act in time," said Yin.
From April to June, Yin, along with his team, made full use of his spare time to complete the "epilepsy alarm." With a cost of less than 500 yuan, the device works quite well. In order to avoid mistaking occasional gritting as seizures, the team set the alarm to sound after detecting eight seconds of gritting.
Further improvements have been made to develop a mobile app connecting the device via Bluetooth. The app can record and store medical information for patients, such as seizure time and duration, so as to provide doctors with a medical history. Meanwhile, family members can read treatment guidance on the app.
The device has already been granted a national patent, yet it has yet to be sent to Yin's grandmother.
"It should have a nicer look, and the circuit can be more optimized," said Yin as he hopes to receive some advice from experts.
Some manufacturers have expressed the intention to put the "epilepsy alarm" into pilot production, and Yin hopes that more epileptics like his grandmother can use the device.
Chinese experts appealed for more efforts in intellectual property rights (IPR) protection for online images at a workshop in Beijing.
Experts in IPR protection and visual content suggested improvement in legal protection, establishing industry norms and more public awareness.
The workshop, hosted by the Copyright Society of China, was the first one to discuss copyright infringement of online images in China.
Online pictures are often "stolen" on popular services such as WeChat and Weibo, and those who post the images usually do not know they are violating IPR protection rules, said the experts.
"Public awareness of IPR protection is most important for copyright protection for online images," said Wang Ziqiang, an official from the Copyright Society of China.
Infringement is not just committed by individual users but also online organizations, including news providers and big companies.
According to Yang Dejia, a judge from the Beijing Haidian District People's Court, the district-level court tried more than 2,800 cases related to online image copyright infringement in the first seven months of 2017.
It is necessary to update the current IPR law and regulations to meet the new demands of today's digital world, said Lin Qiang, an official from the Images Copyright Society of China.
Chai Jijun, founder of Visual China Group, suggested a communication and cooperation plan with large Chinese Internet companies to protect online image copyright.
As the first to achieve quantum key distribution from a satellite to the ground, China is confident in making more scientific and technological breakthroughs.
The achievement, based on experiments conducted with the world's first quantum satellite -- Quantum Experiments at Space Scale (QUESS), lays a foundation for building a hack-proof global quantum communication network.
QUESS, nicknamed "Micius" after a fifth century B.C. Chinese philosopher and scientist, was launched on Aug. 16, 2016.
Published in Nature magazine, the achievement was described by reviewers as "impressive" and "constitutes a milestone in the field."
Traditional public key cryptography has the risk of being hacked, while quantum key technology, used in quantum communication, rules out the possibility of wiretapping and secures the communication.
Over the past two years, in addition to QUESS, China has also launched a series of space science satellites, including the Dark Matter Particle Explorer, the recoverable satellite SJ-10, and the Hard X-ray Modulation Telescope.
Since the start of this year, Chinese have been inspired by landmark achievements in science and technology which contribute to an easier life.
A new railway line, linking Baoji in northwest China's Shaanxi Province with Lanzhou, capital of neighboring Gansu Province, began operation in early July.
The route was a result of China's continuous efforts to improve the construction of high-speed railways, enabling the western provinces to be connected to the national high-speed rail network.
It is also part of China's efforts to boost connectivity along the Belt and Road, where transportation demand is high.
Also in early July, China made breakthroughs in the search for alternative clean energy sources by completing a 60-day trial of mining gas hydrates, commonly known as combustible ice, in the South China Sea.
Starting on May 10, a mining operation in waters near the Pearl River estuary has beaten previous expectations and set world records in both the length and total amount of extraction, according to China Geological Survey Bureau.
China has set innovation as the core of its 13th five-year plan (2016-2020), with the aim to become an "innovation nation" by 2020, an international leader in innovation by 2030, and a world powerhouse in scientific and technological innovation by 2050.
Such efforts will help the country improve the convenience of transport, raise living standards, resolve energy resource shortages, and boost economic development.
Inspired by their country, the Chinese public have also stepped up efforts in scientific and technological innovation.
In 2016, China had over 1.1 million patents for inventions, ranking third after the United States and Japan.
Alibaba unveiled a quick-response platform on Thursday for handling reports of counterfeit goods, aiming to boost the protection of intellectual property rights.
Complaints about knockoffs from copyright and patent holders that are filed through the e-commerce company's new online express channel will be handled within 24 hours, instead of three or four days, as was normal before.
"We've streamlined our work system and improved efficiency," said Zheng Junfang, chief platform governance officer. "What we want is to provide better services for protecting IP rights more quickly for the rights holders."
During a one-month pilot program that began in June, 96 percent of complaints about fake products received a response within a day. Of those, 83 percent of the links to fake products were deleted, according to Alibaba.
Rights holders can register accounts on the platform free and submit reports of fake products found on the company's online shopping sites, including Tmall and Taobao, Zheng said. She added that her team will quickly give feedback after a big-data analysis.
"All the services are available not only in Chinese and English, but also in French, Russian and Spanish," she said.
Zhang Lin, manager of the China branch of the German Association of the Automotive Industry, applauded the company's attitude to protect intellectual property.
"Alibaba's quick-response platform helps us find information about fake product sellers or producers in a timely manner, and provides clues to police officers, which can protect our brand and reduce our economic losses," he said.
But Xie Huijia, an associate professor specializing in IPR protection at South China University of Technology, said it is not enough only to accelerate the handling of fake product claims: "More important is how accurate the fight is."
"To delete links of online shops selling fake products, the company has to compare the goods provided by sellers and the brand owners, but I don't think it's easy to verify whether the IP rights were infringed or not," he said. "Even courts often need several months to identify infringement."
Alibaba has taken action against counterfeits over the past two years. In June it said that it has used big-data technology to help it detect more than 61,000 individuals or groups suspected of operating shops that sell fake goods on Taobao.
It has also detected 1,640 factories that produce counterfeit goods and supply them to online dealers.
Legal professionals from China and countries participating in the initiative are establishing a mechanism to counter a growing problem that could become an obstacle to development, as Zhang Yan reports.
In recent years, China's rapid economic development and growing international role have seen a large number of Chinese enterprises expanding overseas or planning to invest in countries participating in the Belt and Road Initiative.
However, the Ministry of Justice said the process of "going global" has seen a sharp rise in the number of cross-border legal disputes and cases of arbitration involving Chinese businesses.
Meanwhile, many Chinese investments in countries that have embraced the initiative have failed as a result of differences in legal procedures and national cultures.
Faced with the growing number of cross-border lawsuits, Chinese lawyers and their counterparts in 65 countries participating in the initiative have compiled guides of foreign laws, with the aim of providing legal support for businesses and reducing the risks they face when investing overseas, according to Wang Junfeng, chairman of the All China Lawyers Association.
"Legal services are important for safeguarding Belt and Road projects, and a proper legal system is crucial for forging ahead with projects such as transnational investment and building strategic maritime channels," he said.
In 2013, President Xi Jinping proposed the Silk Road Economic Belt and the 21st Century Maritime Silk Road, known together as the Belt and Road Initiative.
As an active exploration of a new model of international cooperation and global governance, the initiative embodies development, cooperation and mutual benefit.
According to Xiong Xuanguo, vice-minister of justice, since 2013, the trade volume between China and participating countries has increased greatly, but legal services have "lagged far behind the practical needs required for social and economic development".
Statistics from the Ministry of Commerce show that last year, the total import and export volume between China and the 65 participating countries reached 6.3 billion yuan ($940 million), while Chinese investment in those countries was $14.5 billion.
Chinese businesses also established 56 economic and trade cooperation zones in more than 20 participating countries, with a total investment value of more than $18.5 billion. That generated $1.1 billion in tax revenues and created about 180,000 new jobs in participating countries.
He Yong, secretary-general of the lawyer's association, said cooperation between Chinese lawyers and their foreign counterparts will "offer professional legal support, including dealing with lawsuits and offering legal advice to their clients, and boost trade and promote international economic and cultural exchanges".
According to the Ministry of Justice, a typical example occurred in March last year, although it declined to name the parties involved.
The ministry said a State-owned company which makes safety and monitoring equipment in Beijing signed an investment agreement related to research and development with a technology company in Israel.
The Israeli company claimed to have bought the rights to a mature technology and had also obtained a patent license granted by local authorities.
The Chinese side hired the Beijing Globe-Law Law Firm to conduct a survey of the Israeli company to ensure its authenticity, the application of the technology and its ownership rights in the Chinese market.
"We sought assistance from our counterparts at leading Israeli law firms who specialize in intellectual property protection and are familiar with Israeli law and legal procedures. They were able to collect information or connect with relevant local authorities to offer valuable information," said Wang Zhengzhi, a senior partner at Beijing Globe-Law.
The Israeli lawyers discovered that the company had not obtained patents issued by Israel's intellectual property protection authorities, and its technology was not as mature as claimed.
Last month, concerned that it might face risks if it invested in the technology, the Chinese company consulted lawyers. As a result, it decided to revise the agreement and invest in several stages, based on the project's technological research and development.
"Professional legal support will play an essential role in helping businesses to take the initiative in negotiations and make the correct business decisions and then maximize their commercial interests," Wang Zhengzhi said.
According to Jiang Junlu, deputy director of the lawyers' association's international commission, last month, lawyers from top-tier law firms in China and participating countries compiled two books containing practical guidance on laws related to foreign investment.
Jiang said the advice included in the books covers laws related to investment, trade, labor, environmental conservation, intellectual property and dispute resolution.
The first volume, which focuses on investment laws in 43 countries, including Myanmar, the Philippines and Russia, has already been published. The second, related to the remaining 22 countries, will be published at the end of the year.
"This guidance will enable Chinese politicians, businesspeople and experts to fully understand the legal systems and environments involved in the initiative and provide legal support for Chinese businesses to ensure they have safe, smooth investments abroad," Jiang said.
Khamsay Soulinthone, chairman of the Laos Bar Association, said: "The idea of the Belt and Road Initiative put forward by China is very creative and considered revolutionary. Although lawyers in different countries face different challenges, they all work for global equality and justice. It's the right time to set up a regional lawyers' cooperation organization."
Although cooperation between China and countries participating in the initiative has made great progress, the lawyers' association still faces practical challenges in expanding legal cooperation.
Shen Lin, a senior official at the department of directing lawyers and notarization at the Ministry of Justice, said most participants are underdeveloped economies with unsound legal environments, and they are in urgent need of financial and technical support from China.
"In the past few years, failures in foreign investments involving Chinese businesses have risen, and it's essential to boost cooperation with legal professionals in participating countries to improve professional legal services to help Chinese investors," she said.
According to He, of the lawyers' association, to improve cooperation the association has established a database containing the details of 86 Chinese lawyers and 121 foreign lawyers from top-tier firms, who will "use the platform to analyze the laws and share information and experience to better serve Belt and Road projects".
His comments were echoed by legal professionals in participating countries.
Prashant Kumar, chairman of the Bar Association of India, said: "The Belt and Road Initiative is considered a historic moment and opportunity. It has built a communication bridge for lawyers from China and relevant countries to handle legal disputes and set an example to resolve problems between nations in the future.
"Although we have differences in laws, culture and environment, I believe our lawyers will join with their Chinese counterparts to unite consensus and create values together."
According to Jiang, the lawyers' association will set up representative offices in participating countries and regions to build joint operating relationships and business alliances with foreign counterparts.
In addition, the association will establish an annual forum with its foreign peers to discuss concerns and exchange views on international legal services during the promotion of projects related to the initiative, including infrastructure construction, international trade and shipping finance.
"The publication of this guidance is timely for businesspeople in all relevant countries, and it's crucial for Chinese investment in foreign countries," said Maria Slazak of the National Council of Legal Advisers in Poland.
"The Belt and Road Initiative is an opportunity for cooperation, including sharing information and the mutual exchange of needed products, which will help Chinese lawyers to go global," she said.
The U.S. government's threat to investigate China's trade practices is by no means wise, as such a move based on trade protectionism would hurt its own businesses and international image, experts said on Monday.
The administration of President Donald Trump has been mulling to ask the Trade Representative's Office to open an investigation into China's trade practices under the obsolete 1974 Trade Act's Section 301, which enables unilateral U.S. imposition of tariffs on trade partners.
TRADE NOT A ZERO-SUM GAME
Trump and his team attributed the economic slowdown and job losses to trade deficits, which are expected to be reduced by imposing tariffs and other non-tariff trade barriers when necessary, as the administration has promised.
Under the "America First" policy, the United States will also rethink alliances, shifting its focus from multilateral trade pacts to bilateral cooperation to ensure the protection of "American interests."
Many economists and foreign policy experts saw the trade protectionism and anti-globalization tendency in the current U.S. government and rejected the idea that trade is a zero-sum game.
Liu Zhenmin, U.N. under-secretary-general for economic and social affairs, said economic globalization is an irreversible trend, with the establishment of international division of labor and the growing volume of international trade.
"Countries that question economic globalization can hardly escape this process," Liu told Xinhua in a recent interview.
As for China-U.S. trade relations, Stephen A. Orlins, president of the National Committee on United States-China Relations, said that bilateral trade deficits are not really meaningful.
Orlins, who has been doing business with China for more than three decades, said that the United States used to have trade deficits with Japan, South Korea and countries in Southeast Asia.
"What happened over these years is that a lot of the semi-finished goods would go to China (for China to export), so what's happened is the trade deficit we used to have with those other countries has been transferred to China," said Orlins.
"Now that is not China's fault and we should not blame China for that," he added.
Many experts voiced concerns on the U.S. government's plan to adopt Section 301, a trade tool used before World Trade Organization (WTO) came into existence, which allows Washington to unilaterally impose tariffs on another country.
In general, trade disputes among WTO members should be resolved through the WTO mechanism rather than a state's domestic law.
"Even if China has problems with intellectual property rights, the use of Section 301 to punish China will make people think that the United States puts its domestic rules above international law, which will further tarnish the country's international image under President Trump," said Zhiqun Zhu, professor of Political Science and International Relations Bucknell University in the U.S. state of Pennsylvania. [ Zhu added that if the U.S. slaps unilateral sanctions, China will certainly react in tit-for-tat retaliation. In the end, consumers and businesses in both countries will suffer.
"In an age of globalization and interdependence, it is hard to believe that some people still think economic sanctions will solve trade problems," said Zhu, emphasizing that it would be a lose-lose option.
FIRM HAND ON INTELLECTUAL PROPERTY
Chinese companies involved in international trade pointed out that the Chinese government has paid high attention to protecting intellectual property and has implemented regulations as strict as those of the United States.
In 2015, China started a three-year campaign to protect the image of "Made-in-China" products internationally.
By April of this year, more than 43,000 batches of goods suspected of intellectual property rights (IPR) infringement had been seized during the campaign, involving more than 81 million individual items, according to China's General Administration of Customs.
The country has also taken an active part in IPR-related affairs under multilateral frameworks, including the World Intellectual Property Organization and the World Customs Organization.
"Honestly I don't think China would single out the U.S. companies to violate their intellectual property rights. It's simply too costly," said an automotive industry source who declined to be named because the White House has not made a public announcement yet.
The White House initially planned to announce last week the launch of the investigation, but postponed the schedule. The announcement might come out on Wednesday, according to U.S. media.
He added that the Chinese government has attached great importance to this issue, because Chinese companies should learn to respect rules and the spirit of contract in order to do businesses in global markets.
"To be fair, the country has made great improvement in the past three decades," he said.
Innovation appears to be paying off for BOE Technology Group as it rolls out high-tech AMOLED screens
Editor's Note: This year marks the 70th anniversary of the establishment of the Inner Mongolia autonomous region. In a birthday tribute, China Daily takes a far-reaching look at the region's industries and how they have helped generate growth.
Smartphones are translating into smart profits for BOE Technology Group Co Ltd.
The company is a leading supplier in semiconductor display products, and has its headquarters in Beijing and a manufacturing base in Ordos, North China's Inner Mongolia autonomous region.
In the first half of this year, BOE expects profits to reach at least 4.2 billion yuan ($624 million), an increase of 900 percent compared with the same period in 2016.
"For two consecutive years, we have ranked No 1 globally in terms of patent application numbers in the field of semiconductor displays," Wang Dongsheng, chairman at BOE, said in a major speech last year.
"Displays are the hardware interfaces of IoT (internet of things) systems and thin-film sensors are their core data-collection devices," he added. "We will dedicate ourselves to technological innovation and the exploration of applications in these areas."
With cutting-edge technology at the heart of BOE's business, the majority of the group's production lines have operated at full capacity.
Crucial to this for the internet of things, company has been the manufacturing of smartphone display panels and, in particular, the 5.5-generation LTPSLCD/AMOLED products.
This is a low temperature polysilicon liquid crystal display and active matrix organic light emitting diode unit.
The LTPSLCD/AMOLED plants churn out flexible screens for high-end smartphones, tablets and wearables. Extremely pliable with sharp colors, the display units are transforming the mobile sector.
For BOE, the decision to invest 22 billion yuan on a line which can produce 8 million smartphone screens a month has paid off.
Launched in 2013, the production facility in Ordos was the first of its kind in China. It was also only the second such facility in the world to manufacture up-to-date small and medium-sized LTPS and AMOLED products, according to the company.
Ordos Yuansheng Optoelectronics Co Ltd, a subsidiary of BOE, runs the operation in Inner Mongolia, and its clients include major global and domestic smartphone makers.
According to market data, BOE's global market share of TFTLCD panels for mobile phone, tablet and notebook ranked No 1 in the first half of this year, and that of its panels for monitors and TVs were No 2.
In 2016, BOE's yearly new-patent applications amounted to 7,570, 80% of which are invention patents. In the first half of 2017, BOE's new-patent applications exceeded 4,000. In total, BOE has over 55,000 usable patents, ranking among the top of the industry.
BOE production lines and manufacturing factories run with a highly-automated smart operation system. At present, BOE has 11 production lines (two under construction), including the world's biggest production line in Hefei, capital of East China's Anhui province, and two 6th generation flexible AMOLED production lines in Chengdu and Mianyang in Southwest China's Sichuan province.
This is part of the company's commitment to innovation, and the nation's industrial strategy to move from "Made in China" to "Created in China".
China's economy has been optimized in both growth and structure guided by the five development concepts of innovation, coordination, greening, opening up and inclusiveness, according to economists.
"During the past five years, China has achieved tremendous results in economic and social development by adhering to these new concepts," said Xing Zhihong, spokesperson for the National Bureau of Statistics.
The country has made progress in reforms and adapted to the "new normal" of lower yet sustainable and balanced growth rates.
FROM IMITATOR TO INNOVATOR
With innovation at the core of the new development strategy, China, once seen as an imitator churning out mountains of cheap, low-quality goods, has become a source of creative products and ideas.
From its quantum satellite to shared bicycles and mobile wallets, Chinese technology has drawn global attention.
"Innovation has played a bigger role in leading and boosting economic and social development," said Li Yunlong, a professor at the Party School of the Central Committee of the Communist Party of China.
China moved up the list of the world's top 25 innovative economies, rising three notches from 25 to 22, according to a key innovation index released in June by the World Intellectual Property Organization, Cornell University and INSEAD.
The country was top in a number of sub-rankings, including domestic market scale, human resources, patents by origin, high-tech exports, and industrial design by origin.
Policy makers are steering the economy onto an innovation-driven growth path, encouraging an entrepreneurial wave, initiating reforms in research and development (R&D), and rolling out the "Internet Plus" and "Made in China 2025" plans.
About 1.57 trillion yuan (over 230 billion U.S. dollars) was spent on R&D in 2016 after a double-digit average annual increase over the past five years, making it second in R&D spending after the United States. Thanks to its big spending, China now ranks second in scientific papers worldwide and is third after the United States and Japan in joining the "million patent club."
China aims to become an "innovative nation" by 2020, an international leader in innovation by 2030, and a world powerhouse of scientific and technological innovation by 2050.
After decades of rapid expansion brought smog and contaminated soil, China is swiftly and steadily shifting from GDP obsession to a balanced growth philosophy that puts more emphasis on the environment.
More energy has been channeled into cleaning up the economy, which had long been powered by polluting heavy industries. Stricter rules were imposed on both factories and officials, and violations received tougher penalties.
The Ministry of Environmental Protection on Monday announced a new round of inspections on local environmental protection efforts covering eight provincial-level areas, the latest in its nationwide campaign to curb pollution.
During last year's inspections, almost 6,500 officials were held accountable for negligence or malpractice.
Ecological development has become a major task in the country's overall plan and has been reiterated in key official documents and high-level meetings in recent years.
Measures have been rolled out to control pollution and set the direction for a green path. The harshest-ever environmental protection law was passed, and a "river chief" system was introduced to purify the water. The government decided to draw "red lines" in certain regions to strengthen protection.
The effort has paid off. The average annual density of fine air particulate matter, or PM 2.5, often used as a gauge for air pollution, dropped by 33 percent in 2016 in the Beijing-Hebei-Tianjin region compared with 2013. Water and soil conditions also improved.
OPENING WIDER TO THE WORLD
China has accelerated the opening of its financial markets to spur economic growth, raise financial sector competitiveness and actively participate in the global market.
Overseas investors gained direct access to the Chinese mainland's 10 trillion U.S. dollar bond market with the launch of the Bond Connect in Hong Kong in July.
This move came after stock connect programs between mainland and Hong Kong bourses were established.
"The Bond Connect is conducive to the internationalization of the mainland's financial market and is a driving force for its financial opening up," said Dong Yuping at the Institute of Finance and Banking at the Chinese Academy of Social Sciences.
In addition, the introduction of foreign banks to the domestic market and attempts by China's financial institutions to go global were also positive steps in developing the financial sector and building a free and open capital market.
"Opening up helps to build a strong and competitive financial sector in China," said Zhou Xiaochuan, governor of the People's Bank of China, at the Lujiazui Financial Forum 2017 in June.
By introducing the five major development concepts and highlighting supply-side structural reform, China has chosen a correct path in improving its growth quality, according to Guo Shengxiang, dean of the Academy of APEC Creative Finance, an Australian think tank.
Red Bull Vitamin Drink's main shareholder is locking horns with its partner in the Chinese market over a trademark dispute, due to the pending renewal of a trademark licensing agreement that expired last year.
The joint venture was established by two Thai companies: TC Pharmaceutical Industries, the creator and owner of Red Bull energy drink and its trademark, and Reignwood Group, which has a smaller share in the company.
Together, they introduced the popular Red Bull beverage to China on a 20-year licensing agreement, with Chanchai Ruayrungruang, founder of Reignwood, serving as board chairman.
"Whatever the final result might be, the Red Bull trouble sounds the alarm - companies need to develop their own brands and increase trademark awareness," Ning Lizhi, director of the Center for Intellectual Property Rights and Competition Law at Wuhan Unviersity in Hubei province, told China Intellectual Property News based in Beijing.
After two decades of sales in China, Red Bull has grown into a market leader in the energy drink segment with a mature and widespread distribution network across the country.
But after the trademark contract expired in 2016, the companies have yet to reach an agreement on an extension of the authorization contract.
This is partially due to speculation around TC Pharma's potential involvement of another trademark licensee in the joint venture, its subsidiary Red Bull GmbH in Austria, according to Chinese media reports. If true, this could reduce Reignwood's control of the joint venture.
The Austrian company - which sold more than 6 billion cans of Red Bull worldwide in 2016, an increase of 1.8 percent year-on-year - has also entered the Chinese market separately to the joint ventures' activities.
Market insiders have noted similarities to the situation Jiaduobao faced, in which the noted Chinese herbal drink lost its pole position in the market due to a failure to renew its trademark license agreement after it came to an end.
In early July, Red Bull Vitamin Drink announced it will invest heavily in a summer promotional campaign nationwide, arousing speculation that the negotiations for the authorization seemed to have made progress.
But that speculation soon evaporated when one of its parents, TC Pharma, filed a trademark-related complaint against ORG Packaging, the Chinese supplier for Red Bull Vitamin Drink, later that month, further increasing tensions. TC Pharma alleges that ORG infringed its rights via unauthorized usage of the Red Bull trademark on packaging distributed since the licensing agreement came to an end.
ORG will continue to fulfill its contract and provide packaging before the court makes its final ruling, according to the company.
ORG had ridden on its close partnership with the joint venture for 17 years, increasing its annual net profits from 405 million yuan ($60.25 million) in 2012 to 1.15 billion yuan in 2016.
The two sides signed a renewal contract in 2012 to extend their cooperation for another 10 years.
Every staff member of Shandong Gold Group, also known as SD Gold, wears a sheer gold badge, revealing a close connection between the major Chinese gold producer and the precious metal.
Yet for the company headquartered in Jinan, Shandong province in East China, its intellectual property portfolio competes with the glistening gold as its most valuable asset, said Cui Lun, deputy general manager of SD Gold.
"The most valuable assets at our company are our seabed mining technologies and a proprietary gold rock drill that has set a record of reaching more than 4,000 meters deep in China," Cui said.
In cooperation with experts from the Chinese Academy of Sciences and the China Metallurgical Geology Bureau, the company began developing the gold-prospecting drill in 2010.
Included in the Geological Society of China's 2011 top 10 technological progress achievements in the industry nationwide, the drill has gained a rich intellectual property portfolio.
The drill is "of strategic significance to China's gold exploration, mineral research, and collection and analysis of geophysical prospecting data", said Chen Yumin, board chairman of SD Gold.
Wang Zhaokun, chief geologist of SD Gold, said the achievement has also boosted the company's confidence in discovering more gold reserves.
"We have to go deeper for more resources, as few shallow mines are left uncovered," Wang said.
The state-of-the-art mining facility has helped the company to discover a gold deposit estimated at more than 550 metric tons in the coastal province, reportedly the largest of its kind in China.
Forecasts estimate it will take 40 years to fully mine the deposit at the Xiling gold mine area in the Laizhou-Zhaoyuan region, with an estimated daily supply of 10 to 15 tons, according to Cui. The potential value is predicted to surpass 150 billion yuan ($22.33 billion), Chinese media reported.
As part of the mine is submarine, it requires complicated technological solutions, according to the company.
Shandong is rich in high-quality gold resources, yet many of them are tucked away deep underground or lying on the seabed, Cui said.
When carrying out deep mining, engineers and workers need to deal with a variety of challenges, such as geothermal changes and ground pressure, he noted.
Submarine mines are even more complicated, as they tend to involve more problems, including water leakage and earth slides resulting from the fault zones, Wang added.
Since 2008, SD Gold has developed a series of technological innovations to increase safety and efficiency in its marine mining activities, which have been granted 11 patents, Board Chairman Chen said.
To date, the company has been granted 272 patents, including 50 invention patents, and led or took part in the formulation of 11 national or industrial standards.
Cui said: "Our patent filings revolve around mineral exploration and development, as well as (gold) production."
During the 13th Five-Year Plan period (2016-20), the company will focus its research on exploring and developing deep resources, automation and the comprehensive treatment of exhausted mines, Chen said.
As a large mineral group, the State-owned enterprise will increase cooperation with research centers and higher learning institutes in developing eco-friendly mining technologies, he said.
SD Gold's Guilaizhuang mining area has been designated a national model industrial tourism site, the only one of its kind in China's gold mining industry, and has been named a national mine park.
Deputy General Manager Cui said: "Our goal is to turn all of our mines green by the end of the 13th Five-Year Plan period."
Data from the China Gold Association show that the country generated more than 450 tons in 2016, ranking No 1 worldwide for 10 consecutive years.
SD Gold contributed nearly 30 tons of that total, according to the company.
A team of Chinese scientists recently invented a micromotion sensor that allows people to control devices and type text by blinking their eyes, according to a paper published in an international science journal.
The sensor is fixed to special eyeglasses and applied through two real-time human-machine interfacesa smart home control system and a wireless hands-free typing system.
It makes direct contact with the wearer's skin around the eyes and responds to changes in pressure when the wearer blinks intentionally to trigger a computer response.
"It is like a third hand," said Hu Chenguo, of Chongqing University's Department of Applied Physics, who led the research.
She said the sensor can help people control devices when both hands are occupied, or help people with disabilities to communicate and perform daily tasks.
Human-machine interfaces, or HMIs, involve communication between a person and an external device. But the skin-sensing interfaces based on bio signals have been developing slowly, owing to the low signal-to-noise ratio and poor stability, Hu said.
In the new study, Hu and colleagues designed a sensor based on what's called a triboelectric nanogenerator－or TENG－to detect the motion of the skin around the corners of eyes, which she said "has never been considered as a good trigger signal source".
"When the TENG sensor is attached to the inside of the glasses' frame, the minuscule muscle movement of a closing eye momentarily pushes the sensor's layers together, generating an electrical signal that can be reliably measured," the study said. It was published last week in the US journal Science Advances.
"It is supersensitive, stable, easy and cheap," said Pu Xianjie, the lead author of the report. "We are now applying for a patent in China and overseas. In the near future, we expect to see it on the market."
The sensor can initiate tasks such as turning a light on or off. When the glasses are connected to a computer screen, the wearer can blink as a cursor passes over different keys, typing out words.
"This TENG-based micromotion sensor is distinct and unique in its fundamental mechanism, which provides a novel design concept for intelligent sensor techniques and shows great potential for application in HMIs," Hu said.
"For our next step, we would like to ... explore the great potential of TENG sensors in intelligent robots."
An electrical engineer in Wuxi has invented a special cooling jacket to help his colleagues survive the summer heat.
Maintaining high-voltage power lines is so dangerous that workers have to wear full-body insulation suit to stop themselves being electrocuted.
But the 10 kg suits can get unbearably hot: The temperature inside the suit is 10 degrees higher than the air temperatures in summer, and workers are often at risk of heatstroke.
"When taking off the suit after working for an hour, you can literally pour the sweat out," said Qin Xiao, senior technician at Wuxi Power Supply Company and inventor of the cooling jacket.
Qin's invention neutralizes this. Weighing less than 500 grams, the jacket has a thin pipe wrapped around it, connected to an air conditioning compressor and two lithium batteries.
The compressor pumps cool water around the pipe, able to keep the water 10 degrees colder than the outside air temperature for two hours.
Qin's jacket has been a big hit with his fellow technicians, and has even been granted a national patent.
"Cooling down outdoor workers in such heat not only makes them feel comfortable, but also guarantees the safety of their lives and equipment," said Qin.
China will prioritize the examination of patents in certain fields to improve patent licensing efficiency, the State Intellectual Property Office of China (SIPO) said Monday.
According to a set of regulations scheduled to go into effect Tuesday, the applications and reexamination of patents on energy saving, environmental protection, new-generation information technology, high-end equipment manufacturing, new energy, intelligent manufacturing and some other industries enjoy such treatment.
Patents that involve the Internet, big data, cloud computing and in sectors with fast evolution in product or technology will also have such priorities.
"The regulations help form a more comprehensive system for prioritizing patent examinations," said Song Jianhua, director of the treaty and law department of SIPO.
Chinese tech firm Cheetah Mobile has said it plans to continue to develop artificial intelligence.
Last week, Beijing Orion Star Technology, owned by Cheetah, won the first place in an online competition organized by Microsoft to recognize a million celebrities in the real world.
Founded in September last year, Beijing Orion Star won the first place in the competition category with external data support. Competitors included teams from Singapore, the United States and other countries.
"We use algorithms to discern interfering data and designed special computing models to improve efficiency," the company said in a statement.
Its facial recognition technology has been used to screen images on the company's live-streaming portal, Live.me. The technology is used to classify users in by gender, age and race.
Over 200,000 hours of live-streamed content is generated on the platform a day, and facial recognition is used to pick up unhealthy content from the videos, the company said.
Beijing Orion Star is also wading into voice recognition. It has used its technology on smart loudspeaker boxes developed by phone maker Xiaomi.
"The opportunities of deep learning is not simply about technology itself, but more about application in real life. Artificial intelligence will be used in wide application areas in the industrial world, and this is the focus of our technology research," said Fu Sheng, company CEO.
According to an industry report, starting from 2012, Chinese facial recognition patents have caught up with those in the United States. Many Chinese tech firms have been honing their edge in the industry.
By May, patents applications in facial recognition had reached 6,432 in China. In 2016 alone, there were 1,755 applications.
Cheetah Mobile says 600 million people use its apps worldwide and 80 percent of the users are from overseas.
Xiaomi announced Friday that its wholly owned subsidiary Xiaomi HK Ltd has signed a three-year $1 billion syndicated loan agreement with 18 banks.
Deutsche Bank and Morgan Stanley served as joint global coordinator for this loan, with Bank of China (Hong Kong) Limited, Deutsche Bank AG, and Wing Lung Bank Ltd as mandated lead arrangers and bookrunners.
Xiaomi founder Lei Jun said that "new retail," which is the integration of online and offline retail, and globalization are two of the company's top five strategic areas for development.
"The syndicated loan will further boost its efforts to develop these areas," he added.
Xiaomi CFO Chew Shouzi said: "The global syndicate of top-tier banks is a strong endorsement of Xiaomi by the international capital markets."
Xiaomi claimed that it shipped 23.16 million smartphones in the second quarter of 2017, an increase of 70 percent from the previous quarter.
Xiaomi recently also fine-tuned its "triathlon" business model from "hardware + software + internet services" to "hardware + new retail + internet services," emphasizing the importance of new retail to the company's strategy.
To date, Xiaomi has opened 149 Mi Home stores across China and will open 1,000 such stores in the next three years, Lei said on the launch ceremony of Mi 5X on Wednesday in Beijing.
Xiaomi is now present in over 40 countries and regions, according to Lei.
"Innovation combined with patent accumulation is the cornerstone of Xiaomi's overseas expansion strategy," Lei said. The company currently has 4,806 granted patent assets, of which 2,404 are international patents.
Earlier this year, Xiaomi signed a multi-year patent agreement with Nokia, which included Xiaomi's acquisition of patent assets from Nokia.
Xiaomi had previously secured a three-year $1 billion syndicated loan in 2014.
There's a growing stockpile of patent filings with the State Intellectual Property Office, but the backlog should be resolved by a new prioritized processing regulation, which is scheduled to come into effect on Tuesday.
As a response to the central government's calling for an improved business environment, streamlined procedures for administrative approval, and the booming market, the Administrative Measures for Priority Examination of Patent Applications is set to reduce filers' burdens and improve the efficiency of related administrative services, said Hu Wenhui, SIPO spokesman, at a news conference last week.
Compared with the version SIPO issued five years ago, which applied only to invention patent filings, the new regulation will expand its coverage to applications for the other two types of patents, utility models and industrial designs, said Song Jianhua, director-general of SIPO's law and treaty department.
The updated version is also applicable to requests for patent re-examination and invalidation, Song added.
Other amendments include streamlined procedures and adding more fields eligible for the regulation, such as the internet, big data and cloud computing, she said.
Zheng Huifen, director-general of the patent affairs administration department at SIPO, said the office has long highly valued the improvement in processing patent filings.
SIPO has employed a third-party organization to assess the quality of its work since 2008.
Its efforts to increase its service efficiency and improve quality include founding an in-house quality evaluation panel, holding regular meetings on quality analysis, offering training in technologies, foreign languages and legal regulations, and collecting feedback from filers, Zheng added.
China has ranked No 1 in invention patent filings worldwide for six consecutive years.
The filing number reached 565,000 in the country in the first half of this year, an increase of 6.1 percent year-on-year, according to the latest SIPO data.
Some 209,000 invention patents were granted during the same period, including roughly 160,000 to Chinese filers, which has enabled the country's total invention patent inventory to surpass 1.22 million.
The average ownership of invention patents in China has increased to 8.9 per 10,000 people. In Bejing, the number is 85.9, making the capital top of the country.
Overseas expansion spurring rapid annual growth in PCT filings; data shows surging interest in Belt and Road Initiative regions
An increasing number of innovation-driven Chinese companies testing the waters abroad are spurring "rapid growth" in international patent applications filed via the Patent Cooperation Treaty in China, according to the State Intellectual Property Office.
The latest SIPO data show PCT filings grew 16 percent year-on-year to 21,600 in China in the first half of this year.
Of those filings, 20,000 were from domestic applicants, increasing 15.3 percent from the same period of last year. The numbers reflect growing momentum in Chinese companies armed with proprietary intellectual property going abroad, SIPO spokesman Hu Wenhui said at a news conference in Beijing last week.
PCT filings from abroad increased 26 percent year-on-year to 1,600 during the period.
Guangdong is the largest PCT filer among 31 provinces, municipalities and autonomous regions on the Chinese mainland, with 11,900 applications filed in the first six months.
Beijing, Jiangsu, Shanghai, Shandong and Zhejiang have all reported more than 500 PCT filings.
The top six have contributed nearly 90 percent of the country's PCT filings by Chinese applicants.
Countries and regions involved in the Belt and Road Initiative are becoming popular destinations among Chinese filers.
The initiative, proposed by China in 2013, aims for increased international cooperation by revitalizing the ancient trade routes. It's also known as the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
The first six months of this year saw more than 2,100 PCT filings from China destined for 17 countries and regions involved in the initiative, representing 17.8 percent growth year-on-year.
With more than 1,000 filings, India ranked top among the destinations, followed by Russia and Singapore.
In comparison, China received more than 2,000 patent applications from filers from Belt and Road countries and regions during the period, up 23.2 percent year-on-year.
"The burgeoning growth in patent filings shows the Belt and Road countries and regions' faith in China's market and our intellectual property protection environment, and also reflects accelerated pace of Chinese companies going overseas," Gan Shaoning, deputy commissioner at SIPO, said at an earlier forum.
Behind the growth is booming foreign trade and investment.
China reported 13.14 trillion yuan ($1.95 trillion) in foreign trade from January to June, a 19.6 percent rise year-on-year, creating a half-year growth record high since the second half of 2011, according to data released by the General Administration of Customs earlier this month.
Exports grew 15 percent year-on-year to 7.21 trillion yuan during the period.
For prudent traders looking to overseas expansion, IP filings are generally considered ahead of business operations in the targeted markets, industry insiders said.
In the investment sphere, Chinese entrepreneurs have completed more than 650 deals each worth at least $100 million in overseas mergers and acquisitions over the past decade, according to a report released by McKinsey & Company, a management consulting firm, in April.
A PwC report released in January shows that investors from the Chinese mainland poured a combined $221 billion in overseas acquisitions in 2016, a more than twofold increase from a year earlier.
Patented technologies, well-established brands and mature marketing channels are among the primary factors for the overseas deals, industrial observers said.
Shanghai's first intellectual property protection center was officially set up Tuesday in the city's Pudong New District, according to local authorities.
The center will launch a "green pathway" to enable a faster examination of patents and decrease the authorization time to less than 15 months from original 30 months, said Lyu Quoqiang, head of the Shanghai intellectual property administration.
Pudong is home to burgeoning high-end equipment manufacturing and bio-pharmaceutical industries, where demand for intellectual property rights service is high.
In 2016, Pudong enterprises filed more than 9,500 patent applications in high-end equipment manufacturing industry and 2,300 in bio-pharmaceutical industry.
A complaint channel will also be launched to investigate suspected violations of patents, trademarks and copyrights.
The center will work with Shanghai intellectual property court to enhance intellectual property rights protection.
Shanghai United Imaging Healthcare Co Ltd, a company specializing in developing and manufacturing advanced medical products, said it is focusing on its plans to invest 2.2 billion yuan ($323 million) in three phases to build the world's largest medical imaging equipment manufacturing plant in southwestern Guizhou province by 2020.
The facility will be built in Guian New Area in Guizhou, under a strategic framework agreement signed by UIH and the Guizhou provincial government in January 2016.
"Guian New Area, as a national level new area, enjoys government policy support as it builds a high-tech zone," said Zhao Ling, chief operating officer of the UIH's Guizhou branch.
"Besides, manufacturing costs in Guizhou are relatively low. That's why we chose Guizhou over coastal provinces."
The first phase of the project, an intelligent manufacturing line in Guian, began operations at the end of last year. According to Zhao, the value of its output to date has exceeded 50 million yuan. The facility mainly serves as a medical big data center and produces high-end medical equipment.
"We are about to start the construction of phase II by the end of 2017, and phase III by 2019," Zhao said.
Apart from the manufacturing line in Guizhou, UIH has a industrial center in Changzhou, Jiangsu province. Overseas, in May this year, it also opened production facilities in California.
According to a report by Firestone Inventing, a consulting company specializing in the medical industry, 402 Chinese companies produce medical imaging equipment, accounting for only 10 percent of China's market share.
However, the market potential is huge. The report said the market size of medical imaging in China is estimated to grow to 600 billion to 800 billion yuan by 2020.
Wang Rongpin, director of the radiology department at Guizhou Provincial People's Hospital, said that UIH had progressed remarkably, expanding to be one of the world's leading high-end medical equipment makers in a short period.
"We have digital X-ray radiography equipment made by UIH in our department, which has the same high-definition image quality as imported products," Wang said.
"However, the price is lower and the design fits Chinese users better. We are satisfied with the operating system."
According to UIH's Zhao Ling, before 2014, locally made equipment had a lower market share compared with international brands such as General Electric Co and Siemens AG.
After several years of research and development, however, UIH was awarded patents for its core technology. The company said its advanced medical equipment gained widespread recognition in 2014.
UIH mainly sells products to the Chinese market, and its products are also exported to Europe, Japan, Korea and Southeast Asian countries.
A Guangdong-based company has been fined 45,000 yuan ($6,665) by the local intellectual property administration for using an invalid patent sign and displaying a forged patent certificate in an exhibition hall in Songjiang District.
It is one of the stiffest such penalties issued in recent years, the administration said.
The administration received a report and found the patent sign on the packaging of products the electric company SunShane displayed in an exhibition hall on Baosheng Road was not valid.
After further investigation, they found the patent had expired and the products where the patent sign was used were not the ones for which the patent had been authorized. The patent certificate the company displayed had been forged, the administration said.
SunShane was ordered to stop using the patent sign and destroy the forged certificate.
The patent sign on unsold goods must be removed or blocked out.
A higher proportion of patents were used in 2016 compared with a year earlier, but small companies and universities still need to improve their ability to commercialize patents, according to a recent annual report by the State Intellectual Property Office.
The 2016 China Patent Data Report was based on a survey covering companies, universities, research institutions and individual inventors in 23 provinces, municipalities and autonomous regions. About 58,000 questionnaires were sent and more than 70 percent of them were returned correctly.
The report showed that last year, 61.8 percent of valid patents were used - either commercialized, licensed or transferred - 3.9 percentage points higher than the figure in 2015.
The report has found that the patent use rate varies among right owners - it goes up and then down as the number of their patents increase. For those who have one or two invention patents, 55.3 percent were used on average. The figure rises to a peak of 64.7 percent for those owning 10 to 29 inventions. And for those with more than 100 inventions, the figure falls to 41 percent.
The same trend is seen in the patent industrialization rate, indicating how many of the patents were actually used in products and put to market. About 40 percent of patents were industrialized for those owning only one or two patents and those with more than 100. Among those who have between 10 and 29 patents, the proportion is over 50 percent.
Li Shunde, a researcher of law and IP rights at the Chinese Academy of Social Sciences, said the efficient use and industrialization of patents to realize their value is a "rigid demand" for China's innovation-driven development strategy.
"Now we still have the shortage of high-value patents and insufficient patent use," Li said. "These problems are keeping the patents from supporting innovation and entrepreneurship.
"Protection is just the means, and utilization is the real purpose," he said. "Combined, they will increase the value of innovation."
Universities have the lowest patent use and industrialization rates, while companies have the highest rates. However, the report noted that small companies and startups have difficulties in commercializing patents because many of them do not have effective financing channels to support production.
The report also found increasing demand for administrative protection.
When asked the most preferred means of protection, 61.3 percent of patent owners said they want the patent administrations to actively launch enforcement operations, which is a 0.9 percentage point increase over the previous year, while 51.3 percent said they will report to the patent administrations, 5.6 percentage points higher. Only 23.6 percent of right owners said they prefer filing a lawsuit at a court, 0.7 percentage point lower than 2015.
"In judicial procedures, many right owners have problems like difficulty in collecting evidence, prolonged procedures, high costs and low compensation. Therefore, administrative protection is more favored for its convenience and efficiency," Li said.
In 2016, law enforcement agencies across China investigated in 48,619 cases involving patent disputes, increasing 36.5 percent year-on-year.
Capable of running at 400km/hr, innovative train poses challenge to Western rivals
○ The debut of next-generation Fuxing bullet trains symbolizes that the shadow cast by the fatal 2011 Wenzhou crash has been dispelled.
○ The new trains, which were totally domestically developed, also mark a milestone in the country's high speed rail exports and its companies' competiveness with the West.
○ However political challenges still pose road blocks to Chinese technology being exported abroad.
Passengers on the brand-new high-speed Fuxing train - whose name literally means renaissance - which has started running between Beijing and Shanghai took to social media to rave about their experience.
The Fuxings are the latest "China Standard" bullet trains, completely designed and manufactured in China, capable of running at 400 kilometers per hour.
But their speed is capped at a mere 300 kilometers, as is the speed of the older trains on the line, which has disappointed many.
These restrictions were implemented after the 2011 Wenzhou bullet train crash killed 40 and injured around 200, following a nationwide chorus of safety concerns.
Several political advisers have proposed increasing the speeds in recent years, but in vain. However some believe that the caps may be lifted for the Fuxings.
"I'm sure the Beijing-Shanghai high-speed rail line speed limit will be raised to 350 kilometers soon," Sun Zhang, a railway expert and professor at Shanghai's Tongji University, told the Global Times. "The Fuxing series will gradually replace the Hexie (harmony) bullet trains when they retire after an around 30-year life span."
However, the major significance of the Fuxings lies not in their speed, but in their standardization, Sun noted.
Ji Jialun, professor at the School of Traffic and Transportation, Beijing Jiaotong University, echoed Sun's opinion, saying the totally-homegrown Fuxing will mark a milestone in the export of Chinese high-speed rail (HSR) technology
"It's a landmark of the change from mix-blood to pureblood, and it will be no longer controversial for China to export our technology," Ji commented to the Global Times.
Blow to development
China first got HSR on April 18, 2007 when the country started running Hexie trains - based on Japanese, German and French technology - on upgraded rail lines at up to 250 kilometers per hour.
Based on technologies purchased and absorbed from foreign countries, China rapidly expanded its HSR network and was soon competing for projects abroad.
However, the fatal Wenzhou crash put a sudden brake on progress. The incident, caused by a signal failure after a lightning strike, ignited a backlash against HSR. Investment and expansion across the country was virtually suspended.
"Construction of many railways was affected. Some projects were interrupted due to a lack of funds, some were postponed. The government also stopped approving new projects. The situation lasted about two years," recalled Li Bo, an employee of a survey and design institute affiliated with the China Railway Construction Corporation in Wuhan, Central China's Hubei Province.
"Our workloads dropped sharply. There was only one survey and design project for a coal-fired railway in the whole year," Li told the Global Times.
China's efforts to build railways abroad were also affected.
"I don't rule out the idea that some Western rivals magnified the incident, fanned the flames and smeared Chinese technologies," Mei Xinyu, an associate researcher at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times.
National pride again
The change in China's top leadership in 2012 turned the tide. The new leaders supported HSR at home and promoted it overseas.
In July 2015, Chinese President Xi Jinping inspected Changchun Railway Vehicles Co., Ltd, a subsidiary of China's biggest train-maker the CRRC Corporation Limited (CRRC), and remarked that high speed trains are a "name card" for China. Chinese Premier Li Keqiang has even been nicknamed "the salesman of Chinese HSR" for his continual promotion efforts at international events and on visits abroad.
Under the slogan of "bringing in advanced technology and creating China's brand," researchers and developers have created the Fuxing, also known as the China standard electricity multiple unit (EMU).
Among all the 254 key standards used in the train, 84 percent are Chinese. Its core technologies, including its power supply, operation management and security monitoring, are all homegrown.
"The standardization will greatly facilitate the production and maintenance of high-speed trains in China," Sun said.
This marks a shift from the Hexie series, which used a variety of different standards in different trains under the Hexie name as the technologies used in their construction were borrowed from different countries.
Besides their attractive appearance, the stability, noise control, energy efficiency and traction power of the Fuxing series are all superior to their predecessors, according to the People's Railway Daily.
The introduction of the Fuxings has also smoothed the road for China to export its HSR technologies and greatly enhanced Chinese discourse power, Ji noted.
"In our previous HSR projects overseas, such as the railway we built in Turkey, we had to use European standards and had little discourse power," Ji said. An HSR line linking Turkey's capital Ankara and its most populous city of Istanbul, built jointly by a Chinese-Turkish consortium, was completed in 2014.
In the past, patent and safety issues had always been negotiation problems when Chinese groups vied for HSR projects with other major players in the sector.
However the patent issue will no longer be a sticking point as the Fuxing series is more or less totally homegrown.
"We have invited top U.S. law firms to make an intellectual property assessment of our standard EMU trains, which concluded that our technology will have no intellectual property disputes when it is exported to other countries," Sun explained.
Mei believes that the Fuxing trains also show that China has completely walked out of the shadow cast by the Wenzhou crash. "The safe operation of the HSR network in recent years has proved Chinese technologies to the world and restored people's confidence," he said.
Sun believes that the Wenzhou tragedy offered China an opportunity to readjust its HSR development plan, making key overhauls and corrections.
The railway construction drive has totally revived, Li Bo sharing that the workload at his firm last year was quadruple what it was in 2010.
Within 10 years, China, a newcomer to this sector, has become home to the longest and busiest HSR system in the world; by the end of last year, there were 22,000 kilometers of HSR lines in China, over 60 percent of the world's total.
The country plans to double the length of HSR lines in service by 2030 and link nearly all its cities that are home to over half a million people.
This rise in confidence domestically is being mirrored by a rise overseas, as China steps up its efforts to share its HSR achievements.
In 2015, China North Railway and China South Railway, the country's top two high-speed rail firms, merged to form CRRC, so as to be better capable to compete with heavy hitters like Germany's Siemens, France's Alstom, or Canada's Bombardier.
According to World Bank estimates, Chinese HSR construction costs, on average, were just two thirds of Europe's and less than half of the U.S.'s. But despite advantages in pricing and efficiency, Chinese companies have not had much luck in contracting foreign HSR projects.
"There is no case of China exporting high-speed rail that can be described as very successful. The situation is very undesirable," Dou Xin, CRRC Qingdao Sifang spokeswoman, was quoted as saying by the South China Morning Post in April.
"The biggest obstacle for countries that have signed deals with China is the lack of financial strength. High-speed railways and bullet trains are unimaginably expensive," said Dou.
Sun believes the political turbulence of some recipient countries and political suspicion has also hindered HSR exports.
"Some may think that Beijing is trying to expand and penetrate by building HSR overseas, some even speculate that the trains might be used to deliver arms, which is all groundless," he noted.
The U.S. private firm XpressWest unilaterally announced in September the termination of its cooperation with a Chinese consortium on an HSR project between Las Vegas and California.
"Our biggest challenge continues to be the Federal Government's requirement that high-speed trains must be manufactured in the U.S.," Tony Marnell, CEO of XpressWest, said in a statement.
Some Chinese observers have cast doubt on this explanation, pointing out that CRRC already has a factory in the U.S. that produces subway trains.
The Pan-Asia Railway Network proposed by ASEAN nations which would link China's Yunnan Province to Singapore via Laos, Thailand, and Malaysia in the middle, Vietnam and Cambodia in the east, and Myanmar in the west, came one step closer to becoming a reality last week when the Thai cabinet approved the Chinese-built Bangkok-Nakhon Ratchasima HSR project.
"Countries like Laos and Myanmar all welcome Chinese technologies, but Singapore didn't. It seems that they choose to stand with U.S. and Japan and prefer their technologies," Sun said.
China is using high-speed railways as "pieces" to play chess and attempts to "leverage the geopolitical landscape," Ma Liang, a research fellow at the Nanyang Centre for Public Administration at Nanyang Technological University, cautioned in an opinion piece published in the Singapore-based newspaper Lianhe Zaobao in July 2014.
Ji says this is misguided. "Via expanding HSRs to other countries and increasing connections, China is willing to share the fruits of its opening-up and reform to the world," Ji argued.
Conversely, some Chinese are skeptical of the country's HSR trade pattern, under which the country provides not only technology but also favorable loans.
But Mei stated that overseas HSR investment is only made after a careful consideration of the destination's political situation, growth, population and profitability.
"China is exporting HSR technologies, not giving them away," he said.
There is a strategic need for China to export HSR, Ji said. "The driving force HSR development has on the manufacturing industry is remarkable. HSR exports will also help lead other industries to the world market," he explained.
A total of 565,000 applications for invention patents were handled in China in the first half of 2017, statistics from the State Intellectual Property Office (SIPO) showed Thursday.
The number was a 6.1-percent rise on a yearly basis, as 209,000 invention patents were issued, according to the statistics.
As of the end of June, the Chinese mainland held more than 1.22 million invention patents, with 8.9 such patents per every 10,000 people on average.
Also, more than 20,000 applications for Patent Cooperation Treaty (PCT) were submitted by Chinese applicants via the SIPO over the first six months of the year, an increase of 15.3 percent on a yearly basis, said Hu Wenhui, spokesperson of the SIPO.
Moreover, up to 15,411 patent cases were solved in China in the same period, up 23.3 percent year-on-year, according to Hu.
Of the cases 8,837 involved patent disputes, while 8,666 related to patent infringement, he continued.
The Guangzhou University of Chinese Medicine has over the past sixty years with sustained effort developed from a pure medical university into a Chinese Medicine University with Chinese medicine as the main body and enjoying harmonious development of multi-disciplines, making outstanding contributions to the Chinese Medicine education. In 2004, the University became a member of the 211 Project of Guangdong Province and has been ranked as a good example of medical morality by the Chinese Government.
The University currently has 18, 000 students on campus of which 2, 400 are from Africa and South-East Asia. Graduates from the University have helped their countries a lot on improving their health conditions. “We have been supporting African Countries because we continue to see the continent as a key partner in development,” Wang Shegliang, President of the University said, and further assured that the University will continue to support Africa so that its citizens will be healthier.
The antimalarial research team of Guangzhou University of Chinese Medicine (GUCM) initiated a strategy called FEMSE through Mass Drug Administration (MDA) with Artemisinin-based combination therapy to eliminate malaria. It was introduced in Comoros, which was a high malaria epidemic area in 2006, and succeeded in lowering the disease without death in a short period.
Artemisinin is a lactone derived from the Artemisia annua plant. This plant’s common plant name is sweet wormwood or Qing Hao in Traditional Chinese Medicine. It has been used for at least 2,000 years to treat fevers, including Malaria. It is currently used for this purpose in modern medicine.
This supplement is also purported to have anti-aging applications, to support the immune system and has restorative properties for febrile conditions.
Malaria is a global pandemic, especially in Africa. The United Nations World Health Organization’s World Malaria Report in 2013 shows about 207 million malaria cases and 627, 000 deaths occurred in 2012. An estimated 3.4 billion people continue to be at risk of malaria, as 80% of malaria cases occur in Africa.
The World Health Organization used Artemisinin during its Mass Drug Administration to control malaria in Sierra Leone in 2014, targeting three million people. WHO succeeded in laying out some successful results from African Countries.
The antimalarial drug, Artequick was invented through the antimalarial team of the Guangzhou University of Chinese Medicine, and it is a fourth generation of Artemisinin-based combination that owns proprietary intellectual property rights and has achieved patent protection in 38 countries and gone in 18 malaria epidemic countries.
In 2003, about 4, 000 people were diagnosed of malaria, with 20 severe cases that resulted to death due to late treatment.
Dr. Jianping Song of the Artemisinin-based combination therapy said there are about 2, 000 cases of malaria in China, most of which are coming from Africa.
“We have a very good cooperation with African Countries and have assisted and will continue to assist in areas like technical and healthcare supports,” he said, and added that African governments need to show interest so as to enable more support to eliminate malaria in the continent. “We care so much about human lives and we are sure that Artemisinin will make a significant contribution in the fight against malaria in Africa,” Dr. Song assured, and stated that "you cannot kill all the mosquitoes in an environment, which is why we are focussing on treating the parasite in the human body."
Imagine you're going to feed your newborn baby and, after a "bip", the consumption, frequency and temperature get automatically recorded and graphed, allowing you to monitor the infant's consumption status when you're working. Isn't that nice?
The job can now be done by Feedibaby - a smart bottle device invented by Juliana Ko and her team comprising three graduates of the Hong Kong University of Science and Technology. It can keep track of, recall and analyze a baby's feeding and growth information by measuring the weight difference of the bottle before and after feeding. The data, with a 15-day local storage, can be sent to an app on a smartphone via bluetooth and updated to clouds.
Ko, who is a cofounder and one of the inventors of Feedibaby, started designing the device two years ago. It consists of two parts, a dock and an adapter. The dock operates like a mini electronic scale, which can sense different kinds of physical data, such as weight and temperature. Different from other smart bottle devices available in the market, Feedibaby gets patent for the adapter, which can fit almost any type of feeding bottle into the dock. It means users don't have to buy a special type of bottle from the company making the smart device.
"Hong Kong parents are very demanding concerning the safety and reliability of a feeding bottle's material. They may be reluctant to buy feeding bottles from small startup companies. Besides, some infants prefer certain kinds of feeders. It's hard to force a new one on them. To compete with other makers of smart bottle devices, our invention is flexible in use with regard to almost all feeding bottles. Parents can still stick to their original bottles while using our product," Ko tells China Daily.
As most parents are usually busy at work, with little time to take care of their babies, and traditional Chinese grandparents tend to feed babies in excess, infants are prone to obesity and nutrient excess problems.
According to the World Health Organization (WHO), the number of overweight children under the age of five globally is estimated to exceed 42 million by 2015, with nearly half of them in Asia.
"I had talked to some mothers before working on this product. I found quite a lot of them are worried about their babies' status while they are at work. I myself intend to continue working after becoming a mother in future, and this gave me the inspiration to come up with the device and start the business," says Ko.
Feedibaby is equipped with scientific data from the WHO and big data, providing the most updated healthy benchmarks for parents to monitor their babies' health status.
According to Ko, their main funds for setting up the enterprise came from cash prize awards, and they launched a crowdfunding exercise in mid May. Customers can now get the product after placing their orders online.
"One of our users during the trial period said Feedibaby is portable and easy to operate. The only thing you need to do is pushing the button, and all the data are ready for you. It's also convenient to carry it when traveling."
Ko says her team, however, is facing challenges in promoting the brand. "Feedibaby is the world's first smart dock to keep track of diet consumption, while Hong Kong parents are usually more conservative about new products."
And, as maternity leave in Hong Kong and on the Chinese mainland is relatively short, she's upbeat about future sales. "A proper diet record of babies shared among all family members is not only essential for a baby's health, but a harmonic relationship within the family."
Ko is looking beyond Hong Kong to boost the product, may be even putting up a dog and pony show. She's seeking cooperation with baby brands in Europe and the United States, and sees the Chinese mainland as a huge potential market in view of the relaxation of China's one-child policy, and Chinese parents' unshakable love for their children. Talks with mainland distributors are on the cards.
As a female entrepreneur, Ko points out she devotes a lot of attention to certain details in business that may tend to be overlooked by her male counterparts.
"There're many opportunities that are easier for female entrepreneurs to obtain, such as in the field of feminine and baby products. So, it's important they stay passionate and patient and support each other. We can and we should strive for a better future together."
The Guangzhou Development District is investing heavily in seeking high-quality intellectual property service providers nationwide.
The GDD government in Guangzhou, capital of Guangdong province, will provide hefty financial rewards for new IP agencies, their large contributions to the local economy, IP-collateralized loans, patent information analysis, and IP protection and training, according to an incentive policy released in May. It is designed to attract high-level professionals in the IP service sector.
The policy is a key move after the Sino-Singapore Guangzhou Knowledge City was designated as a national experimental zone for conducting comprehensive reforms on IP use and protection by the State Council, China's Cabinet, last July. The first of its kind in the country, the area is situated in the GDD.
If an IP service institute or agency is to contribute at least 500,000 yuan ($73,664) a year to the local economy and report a 10 percent rise in annual business revenue, it will be rewarded with up to 10 million yuan, Zhong Zi, an official at the GDD IP office, said at a promotional event in Beijing on Tuesday.
To boost transactions of patents, copyrights and trademarks, the authorities have decided to reward IP market operators with the equivalent of 1 percent of each deal and an IP assessment institution with 20 percent of each deal.
If companies in the GDD industrialize the core patented technologies locally after their purchase from higher learning institutes or research centers, the GDD government will subsidize 20 percent of their technological contracts.
To facilitate IP-collateralized loans, the government has pledged to pay the bills for related assessments, guarantees and insurance.
One of the earliest national economic and technological development zones, the GDD was founded in 1984 in eastern Guangzhou. It has long ranked among the top three of its 200 peers nationwide in terms of its comprehensive strength, said Liu Shi, head of the IP office.
Home to a wealth of high-tech businesses, including intelligent equipment and machines, robotics and biopharmaceuticals, the GDD contributes nearly 40 percent of the annual output value of Guangzhou's manufacturing sector and approximately 70 percent of the city's high-tech industry in yearly revenue, Liu said.
Construction on a new subway is expected to begin in the Sino-Singapore Guangzhou Knowledge City next year. After it is complete, it will take less than eight minutes to reach the city's airport via the non-stop line, he added.
China's cabinet on Wednesday adopted guidelines with detailed measures to boost mass entrepreneurship and achieve innovation-driven growth.
China will deepen reforms in innovation-driven development to expand the scope and raise the level of mass entrepreneurship and public innovation, according to a statement released after the State Council's executive meeting chaired by Premier Li Keqiang.
Promotion of mass entrepreneurship and innovation will help boost employment, optimize the economic structure and facilitate a shift of growth engines.
The government will streamline management procedures such as business registration and registration cancellation and reduce market entry barriers for sectors like education.
Policy support will help protect patents, especially in strategic and emerging sectors.
China will expand financing channels for start-ups to encourage inclusive financial services, promote intellectual property rights financing and establish government venture capital funds.
The government will also promote industrial upgrading by encouraging colleges and research institutions to work with enterprises to build manufacturing innovation centers and developing strategies for the digital economy.
More preferential social security and taxation policies will be rolled out to attract and retain domestic and overseas entrepreneurial and innovative professionals, according to the statement.
The government will take measures to make it easier for foreign professionals to live and work in China and people who choose to set up businesses in towns and villages will also enjoy related preferential policies.
The meeting also decided to solicit public opinion on guidelines for express delivery services, which streamline procedures for expansion, reduce logistics cost and define the rights and responsibilities of couriers.
Several days ago, footage showing Baidu CEO Li Yanhong (Robin Li) live streaming himself in a Baidu self-driving car on Beijing's Fifth Ring Road went viral online. Beijing traffic police said they support technological innovation in driverless vehicles, but will investigate possible violations of existing traffic laws.
On July 11, Li responded to the incident in a speech on Artificial Intelligence at Shanxi University, saying that "self-driving cars will be safer than human drivers in the future."
According to Li, about 500 people in China die in traffic accidents every day, and such tragedies can be prevented with the adaption of self-driving cars. "When self-driving cars become common, lives will be saved. It's of great economic and social significance," he said.
Elon Musk, founder and CEO of Tesla, holds the similar view. After a Tesla driver died in a fatal crash while using autopilot mode last year, Musk said that the mass adoption of self-driving vehicles will save 50,000 lives each year, adding that he would not criticize the safety of self-driving vehicles because of a single accident.
Baidu has been engaged in AI for several years and believes the technology will fundamentally change human society. When there was no Internet, the communication between people and things could not be achieved. AI will solve that. "The Internet has improved the efficiency of people-to-people communication; AI will turn the impossible into the possible," said Li.
Last year, Baidu applied for more AI-related patents than the entire country of Japan, Li revealed. At present, AI enterprises are mainly distributed in a few countries, including the US, China, and the UK. Chinese have performed well in AI research and development. "Forty-three percent of AI-related papers in the world are written by Chinese, and the number of their patent applications is growing rapidly."
Military grants airspace permission allowing parcels to be delivered by air in remote areas
Leading delivery company SF Holding Ltd says it has obtained a landmark license from the military authorities to use drones to deliver commercial packages and is conducting the country's first drone pilot demonstration zone.
The airspace application made by SF and the government of Nankang district in the city of Ganzhou was approved by the Eastern Theater Command, one of the five national military commands.
The flying range covers five counties in Nankang district and Ganzhou in Jiangxi province. The first pilot flight, in the first pilot demonstration zone, was conducted on June 29.
SF says it has launched several types of drone for delivery services, with a maximum load capacity of 25 kilograms and flying distance of 100 kilometers.
SF has invested in a smart distribution logistics and a drone delivery system and has taken out 151 patents. It has established a specialized drone R&D and business operations system.
Zhao Xiaomin, a logistics market consultant in Shanghai, says SF will expand its drone delivery services to third-and fourth-tier cities, and some undeveloped and remote regions, to build an air transportation network.
JD.com Inc, China's second-biggest e-commerce player, has been developing drone deliveries to meet rising retail demand in China's rural areas.
Last year, JD successfully used drones to deliver online purchases to rural shoppers in Jiangsu province, kicking off the e-commerce giant's use of unmanned aircraft for last-mile distribution.
In November, it finished its first drone delivery in Xi'an, the capital of Shaanxi province. On June 18 it began using drones to regularly deliver packages in Xi'an. The company says 40 delivery drone routes have been designed to deliver online purchases to shoppers in the area.
The company has also built a drone R&D center in the city - which is focusing on operating medium-sized and large drones with loads of 200 kg to two metric tons - in order to cut storage costs.
JD also says it will build 150 operation sites for a drone delivery in Sichuan. Liu Qiangdong, its CEO, says the operation sites are expected to open in three years and drone deliveries could help reduce freight costs by 70 percent.
JD says it strictly complies with the laws and regulations of the country, and each of the delivery tasks was carried out after obtaining authorization from the air traffic control department, to ensure the safety of each flight.
Pan Xuefei, a senior analyst at market research firm IDC, says the application of drones in delivery services is still at an early stage.
"We still need time before we see large-scale application," Pan says, adding that drones are mainly used to improve delivery efficiency in remote mountainous and sparsely populated areas.
Nearly 700 agreements on the commercialization of technologies were signed at the first China University Scientific and Technological Achievements Fair held late last month in Huizhou, Guangdong province, with total contracted value of about 4 billion yuan ($589.6 million).
Experts said that universities, with many top research personnel, have produced abundant scientific and technological innovations.
In 2016, Chinese universities invested a total of 3.8 billion yuan in research and filed more than 184,000 patent applications. Nearly 122,000 patents were granted to them that year.
However, the industrialization of the achievements has been "not so satisfactory", said industry insiders.
Lu Chuan, vice-president at the Chengdu Research Institute of the University of Electronic Science and Technology of China, said industrializing innovative achievements from universities involve three parties - the achievement owners, transferrers and users.
In the past, the universities played the roles of all three parties, he said. "But the universities' advantages are their research capabilities, not market operation, so there were few successful cases."
Later, the universities realized they had to commercialize their achievements by cooperating with companies and borrowing their capital. Companies showed strong support for such cooperation. However, this model still has challenges, as companies pay more attention to commercial value while universities focus on technical value.
"Today, Chinese universities are looking for new innovation commercialization models that cater to their own characteristics," Lu said.
Tsinghua University founded Tsinghua Holdings in 2003, based on its integrated technology resources. With initial registered capital of 2.3 billion yuan, the company industrializes the university's research achievements in market approaches. It achieved sales revenue of 95.6 billion yuan last year.
"Tsinghua Holdings develops quickly because it relies on Tsinghua University's powerful scientific research capability and has a well-established industrial layout, operating 70 high-tech parks and 144 startup incubators around the country, which will support the industrialization of the university's technical fruits," said Wang Biao, an executive at the company.
Nanjing University of Science and Technology established the China-university Intellectual Property Operation Platform.
"Like an online supermarket, the platform has gathered information from more than 1 million patents owned by universities nationwide," said Wang Xiaoxu, chairman of the NUST Technology Transfer Center.
The platform evaluates patents, nurtures them to increase their value, and promotes them at business negotiations, Wang said.
Nearly 300 universities took part in the fair, including 13 from overseas, which displayed nearly 10,000 projects.
Huazhong University of Science and Technology brought to the fair a smart defense system against "black flights" by unmanned aerial vehicles that endanger civil aviation safety at airports.
Professor Ma Jie from the university's School of Automation said the system, even left unattended, can recognize drones in restricted areas and send jamming signals to force them to stay in the air, land or return.
An oil-water filter developed by Northwest University can treat 40 metric tons of polluted water in an hour. Its systems can be used in petrochemical industrial zones and during sea transportation of crude oil.
"We met many companies interested in the project in just two days," said the research team leader Gong Yongkuan. "We have reached our target thanks to the fair."
A connection between Chinese characters and the Latin alphabet is currently under construction with the hope that foreigners can learn Chinese characters structure easier.
The news came from a Chinese learning program utilizing Chinese character structures, an alphabetic teaching system and the Gao Character Alphabetic Code System released in Chongqing on June 29.
Lin Gang, Party secretary of the Art and Communication School of Beijing Technology and Business University, presented the teaching system of the program. The Chinese character "善" with 12 strokes can be transferred into an alphabetic form of "KHKO" or "OKHK" through the program.
Gao Xiaoming, founder of Chongqing Zizhao Education Technology Co Ltd, created the innovative learning system, allowing learners familiar with the Latin alphabet can learn to recognize and write Chinese characters quicklier and easilier.
"The program has successfully represented 8,105 Chinese characters with the Latin alphabet and developed a Chinese input method for international Chinese language education which is faster compared to normal pinyin," Gao Xiaoming introduced.
Gao added, "Once the system translates all Chinese characters, foreign learners can find a new way to rapidly recognize, read and write Chinese characters and type in characters on computer with the new input method."
Gao said the program research was inspired by the highly similar structures and meanings between Chinese characters and the Latin alphabet.
The research revealed that the form and structure of Chinese characters have both pictographic meaning and an alphabetic structure, overturning the inherent theory of Chinese character formations.
Zizhao owns all the independent intellectual property rights of the program, which has won two national invention patents and 35 copyrights.
Cao Baoping, a professor of Chinese language at Sichuan International Studies University, said that research on the alphabetic form of Chinese characters has unveiled the original wisdom of Chinese characters, and explores a transformative bridge between Chinese and western languages.
The program has developed various Chinese language teaching tools, including professional guide books, tenon and mortise structure models and colorful character systems.
Chongqing Zizhao Education Technology Co Ltd also signed a strategic cooperation agreement with Chongqing ARTOP Dynamics by AG Technology Co Ltd to further develop the program.
A new report on China’s bio-tech industry released Wednesday in Guangzhou shows that the industry hit 4 trillion RMB in 2016.
Data shows that the industry rose at a much higher rate than other tech industries during the same period. Artemisinin, gene detection, and super rice are at the top of the list.
The public financing of companies in the pharmaceutical, life science, and biotechnology industries reached 167.7 billion RMB in total, while bond financing contributed 90 billion RMB, a 96% growth rate compared to the year before.
The report also highlights the increasing number of patent applications from China, which are gradually approaching the US. Most of them focused on cancer immunotherapy; specially, they focused on CAR-T immunotherapy and a breakthrough is expected.
According to the report, the fermentation industry is another area of growth. Output grew 8.3% in 2016, attributing to 26.29 million tons. The output of amino acids and yeasts are steady.
The report said it is necessary to balance the structure of the bio-tech industry. More attention should be paid to environmental biology and bio-energy and R&D investments should be increased.
Chinese tech giant Xiaomi and Finnish counterpart Nokia announced Wednesday that they have signed a business collaboration agreement and a multi-year patent agreement.
The agreements include a cross license to each company's cellular standard essential patents and Xiaomi also acquired patent assets from Nokia as part of the transaction, according to a statement from Xiaomi.
Nokia will offer network infrastructure equipment designed to deliver the high capacity, low power requirements expected by large web providers and data center operators.
The two companies will work together on optical transport solutions for data center interconnection and other fields. They also agreed to explore opportunities for further cooperation, in areas such as the Internet of Things, augmented and virtual reality, and artificial intelligence.
Collaboration with Nokia will enable Xiaomi to tap on its leadership in building large, high performance networks and strength in software and services, helping Xiaomi create more remarkable products and services with best user experience to Mi fans worldwide, according to Lei Jun, chairman and CEO of Xiaomi.
US citizens or companies were at the center of most international intellectual property disputes heard in China in 2015 and 2016, according to the Supreme People's Court.
French and German were the next most common nationalities, the top court said in a report on Wednesday.
The SPC's work report in March said Chinese courts last year handled 147,000 IP cases involving foreign litigants or defendants. According to Wednesday's report, this was a 41 percent year-on-year rise.
More than half of cases were over copyright disputes, according to the report, which added that judges took on average 105 days to rule on IP cases, while patent disputes took longer.
Most cases in 2015 and 2016 were heard in Beijing as well as Guangdong and Zhejiang provinces, with more than 80 percent of defendants being private business owners, according to the report, which was compiled by the SPC's data center.
The labels "famous trademark", "reputed trademark" and "well-known trademark" were honorary titles issued by governments at different levels to Chinese products in order to encourage competition and help consumers identify quality products. However, the State Administration for Industry and Commerce says the practice is outdated and it plans to put an end to it. Beijing News comments:
Governments at various levels started bestowing the honorary trademark titles shortly after China bid farewell to its decades long planned economy in the early 1980s as a means to set up role-model manufacturers in certain industries.
But the shortcomings of the practice have become increasingly obvious as China's market has evolved. That a State-owned enterprise can more easily obtain such a title than a private company shows the lack of fairness in the evaluation mechanism that originated in an era when most products were manufactured by SOEs. Also, some officials seek illegal gains from the evaluation process for such labels. Once products carrying a government-endorsed trademark label are found to be problematic, the whole system and the government's image will be damaged.
The food safety crisis triggered by the melamine-contaminated baby formula in 2008 is just a case in point. Many problematic dairy products bore the distinction of being a "famous trademark", or "inspection-exempted products", the other kind of honorary title given by the governments.
Moreover, governments now lack the necessary expertise to evaluate some cutting-edge products in today's market.
The trademark evaluation practice has already fulfilled its historical task. In a developed market economy, consumers have the rights and means to decide the popularity of commodities. Market demand is a more precise appraisal than a government's evaluation.
China's ZTE Corp said it will invest 2 billion yuan ($294.8 million) in 5G research and development each year, as China steps up its efforts to build the world's biggest 5G network and to commercialize 5G services in 2020.
Cui Li, vice president of ZTE's wireless product operations division, said her group's R&D spending on 5G would further increase on "a wide range of fields such as infrastructure construction, terminal devices, chips, internet of vehicles, internet of things and big data."
ZTE has invested more than 1 billion yuan annually in the R&D of 5G, with more than 2,000 experts in China, Japan, Europe and North America focusing on leading-edge research into key technologies.
The company says it now commits 10 percent of its annual revenue to R&D.
"We are leading the way in 5G research and working closely with leading operators such as China Mobile, China Unicom, China Telecom, SoftBank, Deutsche Telekom and Telefonica, to accelerate the development and commercialization of 5G," Cui said.
ZTE said it is building on its leadership in 5G network innovation with more than 1,500 related patent applications on 5G.
In April 2016 the company signed a 5G cooperation memorandum with China Mobile on a 5G Joint Innovation Lab. Recently, China Mobile and ZTE conducted a 5G field test in Guangzhou University Town.
In August 2016, ZTE signed a strategic cooperation agreement on joint 5G and internet of things innovation with China Unicom.
Moreover, the Shenzhen-based company is a major participant and contributor on global 5G technology and standardization research activities, with proactive participation in 5G standardization discussions.
During the Mobile World Congress in Shanghai last week, ZTE officially released its 5G end-to-end solutions, including its latest innovations in wireless technologies, bearer networks, and service applications, as well as its 5G core network white paper, presenting the technology route for 5G core network evolution and development.
Zhang Jianguo, senior vice president of ZTE, said the group was willing to go all out with industry partners in standards, spectrum, technology, architecture, practices, and other ecosystem fields in order to make 5G a reality.