RECON Group Makes Headlines in “Two Sessions” Publication, Smart New Economy a Hot Topic

2016-10-14 Posted by:admin Categor:News of the group
This year marks the first year of the “13th Five-Year Plan” period, and the term “New Economy” was written into the government work report for the first time. As pointed out by Premier Li Keqiang in the government work report at the fourth session of the 12th National People’s Congress, this is a crucial period in which China currently finds itself, during which we must build up a powerful new drive in order to accelerate the development of the new economy. We need to move faster to develop new technologies, industries, and forms of business, boost the development of a sharing economy through institutional innovations, create sharing platforms, and develop emerging industry clusters such as high-tech and modern service industry clusters, thus creating strong new engines. 

(Outlook - Smart New Economy at the National People’s Congress)

The report explicitly proposed that we will use network-based information  technology and other modern technologies to drive changes in methods of production, management, and marketing, create new industry chains, supply chains, and value chains, and transform and upgrade the conventional drivers, thus injecting them with new vitality. Looking around the world, in the new round of the technological and industrial revolution, it has become an irresistible trend of the times to use network-based information technology and other modern technologies to fully integrate brick-and-mortar industries with the virtual economy, and form a new smart system. This trend is having a strategic and holistic impact on the socioeconomic development of all countries. This new economic phenomenon is referred to as the “Second Economy,” “Smart Economy” or “Smart New Economy” by some experts and scholars. 

As one of the first domestic entrepreneurs to advocate and practice the concept of the second economy, RECON’s Chairman of the Board Xia Jiantong proposed the concepts of “Smart+” and “Smart New Economy,” i.e., a smart information system platform with big data analysis and the Internet of Things at its core. The platform takes the financial sector and the transport logistics sector as its two pillars to integrate food, clothing, housing, transport, culture, sports and other related industries. By effectively grasping consumer information and efficiently utilizing resources, the platform fully integrates brick-and-mortar industries with the virtual economy to form the upgraded smart system, thus enhancing the production and service efficiency and creating value. 

(Outlook - Smart New Economy at the National People’s Congress Henan Sub-Venue)
Then, in the context of “New Economy,” where is the leverage of a company? How can a company use this round of economic transition to achieve rapid development and expansion? During the “Two Sessions”, RECON’s Chairman of the Board Xia Jiantong said in his interview with Outlook of the Xinhua News Agency, the smart new economy concept can help traditional industries achieve breakthroughs and transformations. For example, in RECON’s industrial development plan, the smart information technology is identified as the engine, and the capital finance is considered as the driver for the integration of industrial resources. RECON Capital has set up a number of industry buyout funds for various models of industry M&A and reorganization. The idea is to erect smart pillars in traditional industries, transform traditional industries at a higher level and with a broader vision, and ultimately, achieve the “Smart + Industry” model. 

(Outlook - Smart New Economy on the desks of representatives at the Guangxi Sub-Venue)
As one of the first domestic companies to advocate and practice “Smart New Economy,” RECON has accumulated a lot of practical experience and cases in the smart new economy industries. During this year’s “Two Sessions”, RECON’s achievements in its exploration of the smart new economy were covered by Xinhua News Agency’s Outlook, “Smart New Economy”. Outlook is a decision-making publication of national leaders and government departments. Taking RECON’s practices in smart city, smart agriculture, smart tourism, smart transportation, and other industries for example, from an economist’s point of view, it comprehensively interpreted the ideas, values, practices, and applications of the smart new economy. The coverage by Outlook shows that both government and enterprises fully approve of RECON’s achievements in the implementation of the smart new economy. As the only publication allowed to enter the site of “Two Sessions,” its reports drew much attention from all NPC delegations and gave rise to impassioned discussion. 

(Outlook - Smart New Economy on the desks of representatives at the Yunnan Sub-Venue)
The “Two Sessions” are the barometer of the national economy and of people’s livelihood. In the government work report this year, the most frequently used words were “reform” and “innovation.” It is of strategic importance for China’s economic transformation and upgrading to develop the smart new economy, promote the in-depth integration of information technology and industrialization, and accelerate “Smart + Various Industries” integration and innovation. From smart production to smart life, this new economic ecosystem encompasses many industries. In exploration of the smart new economy and the pursuit of industrial upgrading and transformation, more smart new economy (second economy) enterprises will come to the fore and form the backbone of China’s economic development.