News

China's technological landscape is in a state of continuous evolution, yet it still holds significant potential for growth. A prominent economist emphasizes that there is "much room for improvement" in this regard and highlights the crucial role of financial support in fostering new ideas.

Unleashing China's Technological Potential with Financial Aid

Gap with the US: A Disparity in Technological Giants

Tsinghua University's national institute of financial research chairman, Tian Xuan, points out a notable gap between China and the United States. In the US, nine out of the 10 biggest firms by valuation are tech companies or funds invested in technology. In contrast, China's largest firm is the drinks maker Kweichow Moutai, followed by four state-owned banks. The only tech-related firm in China's top 10 by valuation is the battery maker Contemporary Amperex Technology. This disparity showcases the need for enhanced focus and investment in the technological sector. 2: The valuation of Apple at US.5 trillion, which is two times or more higher than China's top 10's total, further emphasizes the magnitude of the gap. It indicates that there is a significant imbalance in the technological prowess of the two countries and highlights the urgency for China to catch up.

The Crux of the Matter: Financial Sector's Role in Innovation

Xuan emphasizes that the key issue is how the financial sector can assist in expediting technological innovation and driving the development of new quality productive forces. Encouraging foreign investment is seen as essential as a healthy and open capital market is necessary for enhancing innovation. This highlights the interconnection between the financial and technological realms and the need for a coordinated effort. 2: By providing the necessary financial resources and creating an enabling environment, the financial sector can play a pivotal role in nurturing technological startups and supporting existing companies in their innovation endeavors. It is through such collaborations that China can bridge the gap and achieve greater technological self-sufficiency.

Path Forward: Harnessing Financial Support for Technological Growth

To address the challenges and seize the opportunities, China needs to focus on leveraging financial support effectively. This involves creating dedicated funds, providing favorable policies for technological investments, and strengthening the linkages between the financial and technological sectors. By doing so, China can accelerate the pace of technological innovation and position itself as a global leader in this domain. 2: Additionally, there is a need for increased collaboration between academia, research institutions, and the business sector. By bringing together the expertise and resources from different fields, China can foster a more innovative and dynamic technological ecosystem. This will not only benefit the domestic economy but also contribute to global technological progress.