Embrace Emerging Industries, Embrace New Industrial Revolution

--speech by Mr. Zheng Xiongwei, economist and global executive chairman of Asia-Pacific CEO Association, at the “European Union – China Economic Forum” 

Monday, May 10, 2010

Mr. Chairman, ladies and gentlemen:

First of all, on behalf of Asia-Pacific CEO Association ,I would like to extend sincere gratitude to the European Parliament and all the friends who come from different sectors to support and participate in the “European Union – China Economic Forum”.

I am delighted to be in Europe, the birthplace of world industrial revolution, and join all of you at the European Parliament. I am very glad that just now Ambassador Song and President Franz have both mentioned the industrial revolution, for this is what I am going to talk about:  Embrace Emerging Industries, Embrace New Industrial Revolution.

History has witnessed four industrial revolutions. The first began with the invention of steam-engine. The second was marked by the emergence of electric lighting. The third one, which is a technological transformation, was characterized by the invention of computer. The fourth was another technological transformation characterized by the rise of the internet. Now the fifth one is on its way to transform the world yet another time. With information and bio-technology leading the way, the fifth industrial revolution features technological advancement in new energy, new material, micro-electronics, telecommunication, etc.    

Every industrial revolution has had profound impact on people’s production mode and way of living, with new industrial chains, new demands and markets being formed. We have seen in the past that technological and industrial revolutions often follow an economic crisis. Currently, every country, especially developed countries are leading the whole world in a race of economic and technological development. What we have in store is an age of innovation and industrial rejuvenation, with emerging industries being the driving fore of world economic growth.

We can see in the history of economic development that emerging industries are built on deep integration of emerging science and technology, finance, industry and business. They not only lead the way in technological innovation but also speak volume for where future industries go. Empowered by technological innovation, emerging industries breed and grow stronger in the battle against economic crisis. They form fresh growth areas and become the fundamental strength to drive the economy out of crisis and spur a new round of prosperity. Led by developed countries, emerging industries will be the focus of global industrial restructuring as well as industry and technology transfer.

In previous industrial revolutions, China played a lesser role. This one, however, presents China with unprecedented challenges and enormous opportunities. The Chinese government is well aware of that and has great determination to push the development of strategic emerging industries, such as new energy, new material, energy efficiency and conservation, biomedical, information network and high-end manufacturing.

Europe is much stronger is terms of technology and industrial foundation, which makes it the focus of the coming revolution. We strongly hope to join hands with Europe to advance the development of emerging industries. Here I would like to highlight that recently the State of Council of China has unveiled “Proposals on better utilizing foreign investment”, which suggests amending “Guidelines for Foreign Investors” in line with our national condition and expanding investment areas. The proposal also encourages foreign investors to invest in industries like high-end manufacturing, high-tech, modern service, and new energy. With strict restrictions on high-pollution, energy-intensive and resource-based projects in place, China’s international cooperation will take on new features.   

Judging from the present stage, developing emerging industries will bring the following strength:

First, developing emerging industries will enhance our innovation ability and help us lead the way in technology advancement. Characterized by high-tech and great market potential, emerging industries have become the key development areas for countries, one after another. It’s obvious that he who takes the lead will enjoy remarkable economic returns, plus greater say in the global arena. Developing emerging industries is the fundamental solution to global economic development, trade imbalance and employment. 

Second, developing emerging industries can give traditional industries a push for upgrading, laying solid foundation for future development. This is of particular significance to developing countries.

Third, from the perspective of average people, developing emerging industries can bring a lot of benefits to their daily life.

Asia-Pacific CEO Association will jointly hold the World Emerging Industries Summit with Jilin provincial government this September. On behalf of the Association and Jilin provincial government I would like to invite all of you, whether you are from political circle, business circle or academia, to participate in the summit. 

I am also taking this opportunity to make a special proposal that is establishing a new cooperation mechanism featuring emerging industries and founding an “Emerging Industry Development Fund” in order to promote cooperation.

I welcome all of you to the upcoming World Emerging Industries Summit and Shanghai Expo. Thank you.