Li Keqiang: the necessary condition for innovation is to protect intellectual property rights

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Release time:2016-05-09

On the 24th, Premier Li Keqiang held a discussion with 54 overseas representatives attending the 2014 annual meeting of the China Development Forum in the Great Hall of the people, including the chairman of the board of directors of the world's top 500 enterprises. there are also top experts and professors such as the former chairman of the US President's Council of Economic Advisers and Harvard University. At the symposium, foreign representatives enthusiastically asked questions, and Li Keqiang answered frankly one by one. He said: "Foreign companies have brought advanced concepts and advanced technologies to China. The equal competition between Chinese and foreign companies has in fact promoted the healthy growth of Chinese companies."
 
Li Keqiang thanked the participants for their close attention and practical participation in China's economy. He said: "You and Chinese companies have jointly promoted China's modernization process."
 
Without problems, there is no way to find a solution to the problem and no way forward.
 
Before the symposium, as soon as Li Keqiang took his seat, Douglas Oberhelman, the foreign chairman of the forum and chairman of Caterpillar, handed over a "gift": a thick material formed by the research of the participants. Oberhmann said: "This is homework (homework) that we have carefully prepared. It reflects our attention to some areas and our concern for the entire Chinese economy."
 
Li Keqiang took the materials and said with a smile: "Such a large pile of materials is not only your homework, but also my homework!" In the laughter of the delegates, Li Keqiang "promised" that he would read the "research efforts" of the delegates and transfer them to relevant departments as soon as possible for reference.
 
He invited representatives to speak freely and ask questions: "Without problems, there can be no solution to the problem, and no step forward can be taken."
 
Emancipate the mind, break down the obstacles of system and mechanism, and give scientific research personnel a broader space for creation.
 
Sam Welsh, CEO of Rio Tinto, took the lead in asking: "in what ways is China going to further promote innovation and promote the development and cultivation of entrepreneurial spirit?"
 
Li Keqiang said that reform and innovation are inseparable. The important focus of China's deepening reform is to give full play to market forces and mobilize the creativity of tens of thousands of people, so as to stimulate the endogenous driving force of economic development. He analyzed that China has entered the middle-income stage, and the export trade of medium and low-end products in the past has been unable to meet the needs of market development. To achieve economic transformation, the most important thing is innovation.
 
"What does innovation depend on? It depends on people, on people's brains. How can we realize the ability of innovation?" Li Keqiang asked, "It is to emancipate the mind, break down the obstacles of system and mechanism, and give scientific researchers a broader space for their creation."
 
He admitted that there are still some institutional and institutional obstacles in the field of scientific and technological innovation in China, but science and technology parks such as Zhongguancun are already trying to stimulate the creative vitality of scientific and technological personnel through mechanisms such as multi-post part-time jobs and equity incentives. At the same time, the government is also building a "safety net" of social security, so that entrepreneurs can alleviate the "worries" of failure ".
 
"Of course, one thing is the'forbidden areas'," Li Keqiang emphasized in particular, "this is that intellectual property rights must not be infringed." The attendees laughed when they heard this. Oberhelman immediately took over: "This is also what many entrepreneurs here are most concerned about. I am very glad that Premier Li took the initiative and frankly talked about this topic."
 
A wider and more orderly opening of the market, the formation of a more level playing field
 
Before answering questions from FedEx Chairman, President and CEO Schweider, Li Keqiang introduced him to an ambitious Chinese competitor. Li Keqiang said that when he visited a courier company before the Spring Festival, he once asked the person in charge of the company: "Are you going to be China's Fedex (FedEx)?"
 
The person in charge of the company immediately replied: "No, we want to surpass Fedex and become the world's largest express company!"
 
After listening to this conversation, Schweider was happy from ear to ear. Li Keqiang said: "I believe you will not mind the ambition of this Chinese company, and I believe you will certainly welcome a more level playing field and more benign competitors."
 
In his question, Schwade was particularly concerned about what measures the Chinese government will take to reduce logistics costs. Li Keqiang said that China's current logistics cost is 10% higher than that of developed countries in the world. The State Council is studying a policy document to reduce logistics costs. Two directions are clear. One is to further reduce the tax burden of enterprises through reform measures such as the VAT reform, and the other is to enhance the competitiveness of enterprises by relaxing market access.
 
Li Keqiang said: "China must open its market more extensively and in an orderly manner, so that the logistics industry can form a more level playing field." But he also reminded Schwade to be "mentally prepared to compete with Chinese counterparts".
 
The meeting room again resounded with light laughter. Oberhelman grabbed the words: "I think Premier Li not only reminded Schwade, but also challenged the heads of all the companies present."
 
The necessary condition for China's scientific and technological innovation path is the protection of intellectual property rights.
 
DuPont President and CEO Ailun Ke, is very concerned about "intellectual property protection". She said bluntly: "We need to further increase investment in research and development, so we must gain more confidence."
 
Li asked her to trust the Chinese government's commitment. He said that last year China handled more than 200,000 cases of infringement of intellectual property rights, and tens of thousands of infringers were punished. This year, the government will continue to increase the punishment for infringement of intellectual property rights. On the one hand, it will strengthen law enforcement, and on the other hand, it will improve laws and regulations, so as to create a fairer market environment.
 
At the same time, he encouraged foreign entrepreneurs attending the meeting to achieve "win-win" by selling more advanced technology to Chinese enterprises and jointly carrying out scientific and technological research and development ". He stressed: "fundamentally speaking, China must take the road of scientific and technological innovation, and the necessary condition for innovation is to protect intellectual property rights."
 
Create a broader development space for the service industry, and let Chinese enterprises burst into greater vitality in the competition with foreign enterprises
 
In response to the question raised by Jean Paul Agong, chairman and CEO of L'Oréal Group, "how can foreign enterprises benefit from the process of comprehensively deepening reform in China", Li Keqiang said that as a part of the service industry, the beauty industry has great potential for development in China. One of the main directions of China's structural adjustment is to develop the service industry. The service industry is the largest holder of employment, and it is also a major measure to save energy and reduce consumption.
 
He cited statistical data to introduce that the beauty industry usually ranks in the top three in the service industries of developed countries above the middle level. He said that in the areas of beauty, elderly care, health, and finance, China will further relax market access, create a broader development space for the service industry, and allow Chinese companies to compete with foreign companies with greater vitality.
 
"The service industry is different from other industries and needs the cooperation of those who serve and those who are served. I hope you will better integrate into China and serve Chinese consumers." Li Keqiang said.
 
Welcome to the huge Chinese market and help us take the road of clean development together.
 
Li Weicheng, chairman, president and CEO of Dow Chemical Company, is concerned about how China can further promote energy reform. He said that this may be a "small problem", but it is closely related to the Chinese economy and the work of the Chinese government.
 
Li Keqiang said: "This is not a 'small problem', it is simply a key 'big problem '." He said that one of the biggest bottlenecks in China's modernization is resources, especially energy. To solve this problem, we must first save energy and form a national awareness of conservation.
 
He pointed to the ceiling of the venue and said, "We have so many lights on in our venue today, mainly because you are VIPs. We don't usually do this at home." This remark made the participants roar with laughter.
 
Li Keqiang continued to elaborate that to solve the energy problem, it is necessary to improve energy efficiency and adjust the energy structure, which in the final analysis depends on science and technology. He pointed out that China's own efforts have been difficult to cope with the severe challenges posed by the environment. Therefore, in the field of environmental protection, it is necessary to continue to expand its opening up to foreign capital, foreign technology and foreign products.
 
He said to the corporate giants present: "Welcome to the huge Chinese market and help us take the path of clean development together."
 
Chinese consumers have the right to choose a wide range of products, which is also the responsibility of the Chinese government.
 
According to the original agenda, the questions ended at this point, and Oberhelman also began his concluding remarks: "Thank the Prime Minister for taking so much time to answer so many challenging questions."
 
Li Keqiang did not evade the question at all: "You can ask another question."
 
In a cheerful laughter, Ma Zherui, chairman of the board of directors and CEO of Total Group, was given the opportunity to ask questions. He said: "Can the Chinese government really treat Chinese and foreign capital equally, and treat state-owned enterprises and private enterprises equally?"
 
Li Keqiang said, "I know some foreign companies have complaints about this, but I have also heard some Chinese companies feel that foreign companies have a light tax burden and are 'unequal. 'Instead of treating them differently and ending up with complaints from all sides, it is better to create a level playing field and let everyone compete fairly."
 
He said that in the past 20 years, China has always been the most favored developing country by foreign investment, which shows that China has a huge market and great attraction, and the Chinese government is indeed constantly improving the investment environment for foreign investors.
 
He introduced that the current reform promoted by the Chinese government is to strive to treat Chinese and foreign enterprises in all fields and all forms of ownership equally. The Shanghai Free Trade Zone is trying to promote the pre-entry national treatment and negative list management model, which will eventually form a set of models that will be replicated and promoted to a wider range of regions.
 
After answering the questions, Li Keqiang once again extended an invitation to the entrepreneurs present to participate in the China Development High-level Forum in the coming year. He said: "Chinese companies will grow healthier only if they compete on an equal footing. At the same time, Chinese consumers also have the right to choose a wide range of products, which is also the responsibility of the Chinese government."
 
Once again, there was a long round of applause.