CHINESE ECONOMY NEWS-- Premier Li Keqiang puts forward an important point of view that it is must to accelerate the replacement of old growth drivers with new ones on promoting the transformation of economic structure on April 18 at the symposium held at the National School of Administration.
With respect to the explanation of new growth drivers, Premier Li believes that we should be led by technological innovation; center on new technologies, new industry trends, and new models; be supported by knowledge, technology, information, data and other new production factors. New growth drivers reflect the development trend of new productive forces; it is the powerful driving force to develop and upgrade real economy.
What is the old growth drivers that opposites to the new ones? The common understanding for which should be the way to promote traditional economic growth, that is what Premier Lee called "flood irrigation" type of strong stimulation and over-reliance on investment and export-led economic growth. This old growth pattern that strongly promotes China’s rapid economic development in the past 30 years shall fail to play its positive role anymore and in dire need to find breakthrough for new growth drivers.
In dealing with how to develop new growth drivers, Premier Li mainly focused on three aspects: First, simultaneously adhering to the "incremental rise" and "stock changes", not only cultivate the development of emerging industries with great prospects, but also to deal with the elimination of backward production capacity by using new technologies to transform and upgrade traditional industries, so as to achieve "old tree germinate new branches" and overall promotion of social productivity; second, boosting mutual promotion and joint progress for effective investment and consumption, taking domestic market demand as "navigation light", vigorously offsetting the weakness, promoting product and service innovation for achieving a higher level of matching and optimization of supply and demand structure. Third, we should not only base on the domestic market, but also initiatively participate in international competition to seize the new round of opportunities concerning technological revolution and industrial transformation, and actively cultivate new advantages to open up and expand development space.
As a prime minister of a government, Li Keqiang, in his address, attaches more importance to policies made by government to promote the realization of replacement of old growth drivers with new ones. The policies are creating a good conversion mechanism and environment; however, whether the result meets our satisfaction depends on the enterprise innovation ability and the driving force, which is what Premier Li requires toward company to enhance the initiative and sense of urgency, to carry forward the entrepreneurial spirit and craftsmen spirit to make the surging power of transformation from old growth drivers to new ones to continually promote economic transformation and upgrading to obtain high growth towards a high-end level.
How to achieve "incremental rise" and "stock changes"? In the current situation that internet has deeply integrated into every aspects of industry, companies need to do nothing but engage in building platform and fructify content. Speaking of the building of platform, Alibaba, Tencent, Baidu, and a variety of big platforms and professional websites, etc. have provided a big stage for business growth and personal entrepreneurship as well as for economic transformation and upgrading; until now, these powerful enterprises are on the one hand to a more extensive and significant stage at non-stop pace, on the other hand they are constantly exploiting new content; while some platform-type enterprises which start relatively late may achieve overtaking success standing on the shoulder of these giant companies in the process of development. This phenomenon will shine in the current situation where cross-border integration becomes more and more popularized.
For example, Porter is originally started up from commercial real estate planning. This private enterprise located in Shenzhen catches up with the internet trend and explore on the stance of commercial service and inadvertently positioning itself as a comprehensive financial services platform. "Hamburger model" created by Porter is constructed by commercial real estate entity which was deemed as carrier (bottom bun of hamburger); by gathering of regional headquarters along with building up image for chain development as operation content, and taking e-commerce marketing for the coverage of market as core method. (a piece of beef and cheese at the middle of hamburger); by synthesized catalyst of financial settlement of credit services as well as investment and financing for listing incubation (top bun of hamburger). At the early stage, this "hamburger pattern" emphasizes on commercial real estate and the middle part of corporate brand image store and e-commerce, which is typical of O2O; but with the development of Porter group, they recognized the overall coordination function of the top of hamburger that financial services is wildly needed by corporations while it is also the most difficult part to be satisfied. On the basis of the sound O2O, Porter group now highlight the overall governance of financial functions among its projects, the aim for which is to achieve incremental expansion and stock transformation for the small and medium-sized enterprises it serves. From this point of view, Porter's effort to develop the Porter City project has outrun the ordinary business platform. For those who are possible settled in Porter City, the financial services from O2O coupled with other types of additional services would become an incredible incubator for enterprises to achieve transformation and upgrading so as to obtain rebirth success.
Platform is the service, while the continuous enrichment of service content would constantly promote "incremental rise" and "stock changes" for enterprises. Please don’t quote the great quantity of platform companies. The more platform companies like Porter to conduct such innovative business, the more opportunities would we have to replace old growth drivers with new ones.