Complete Smart Economy Industry

2016-10-16 Posted by:admin Categor:News of the group
Outlook Special Edition –Complete Smart Economy Industry Chain

The smart economy has entered the stage of practical operation in boosting China’s industrial development. In today’s world, society and economy are developing in full gear towards intelligentization and networking. With the implementation of the “Internet+” plan, all industries are being intelligentized, creating the whole smart economy industrial chain.
 
As of December 2015, according to the 37th Statistical Report on Internet Development in China released by China Internet Network Information Center (CNNIC) on January 22, the number of Chinese netizens has reached 688 million, representing an Internet penetration rate of 50.3 percent.
 
Mobile internet has brought about a new form of smart living - 110 million internet users received online education; 152 million people used internet-based medical services; 96.64 million people used taxi booking apps; 21.65 million people used private car services; and 358 million people used online payment, an increase of 64.5 percent.  
The internet is no longer a merely auxiliary tool, and its impact on the whole of society has entered a new stage. During the Two Sessions of 2016, 29 of 31 provinces, autonomous regions, and municipalities mentioned “smart”, “Internet+”, “big data”, “cloud platform” or “cloud computing” in their government work reports. “Robot” was also a favorite word in these government work reports. Eighteen provinces, autonomous regions and municipalities set specific targets for smart manufacturing.  
The smart economy has entered the stage of practical operation in boosting China’s industrial development.
 Smart Economy Restructuring China’s Innovation System
 On December 15, 2015, Yaowen Jiaozi, a monthly Chinese linguistic journal, released the “List of Top 10 Buzzwords of 2015” and the term “Internet+” ranked second on the list.
 
What is “Internet+”? Yaowen Jiaozi defined “Internet+” as the combination of the internet with various socio-economic production factors. That is to say, traditional industries are integrated with the internet at a deep level, restructured, and rebuilt into new forms of business. The symbol “+” means “joining”, “integrating”, “upgrading” or “innovative development”. “Internet+” is a new way of thinking, a new development model and a new economic form as well.
 
In his government work report, on March 5, 2015, Premier Li Keqiang proposed to formulate the “Internet+” action plan. The term “Internet+” quickly became a buzzword. In July 2015, The Guiding Opinions of the State Council on Promoting the “Internet Plus” Action Plan was issued, drawing more attention to the term “Internet+”. In 2015, with a new pattern of economic development taking shape, “Internet+” became ubiquitous in the media.
 
Research institutions used data to illustrate the enormous momentum and potential of China’s internet industry. As early as 2014, the McKinsey Global Institute released a report, showing that China’s internet economy accounted for 3.3 percent of its GDP in 2010, lagging behind most developed countries. However, by 2013, China’s Internet economy accounted for 4.4 percent of its GDP, higher than that of the United States, France, Germany and other developed countries. In 2013 alone, China’s e-commerce retail sales were nearly 300 billion US dollars, overtaking the United States to become the world’s largest online retail market.
 
In the future, the contribution of the internet economy to China’s GDP growth is likely to increase. The internet-based smart economy has reconstructed the country’s economic innovation system and has gradually become the precursor for the transformation of regional economy and the upgrading of traditional industries. With the rapid development of the internet economy, the integration and innovation of “Internet+” and regional economy will create a new regional development ecology.
 
As a basic vehicle for the future’s information society, “Internet+” is not just a thinking pattern or a model of economic production, but also the summation of a set of world outlooks and methodologies using internet technology for economic development. According to the economist Chen Shiqing, the largest impact that the internet economy has on regional economic development is on thinking patterns. In the context of the internet economy, the internet thinking with “opening and sharing, cross-boundary integration, people-orientation and big data innovation” at its core is spreading quickly; traditional industries are becoming flat and platform-based; and information resources are becoming strategic assets in regional development. Through online and offline integration in regional industrial development, internet information services and real production are effectively connected, and resources are rationally utilized, pushing regional economy up to the stage of deepened services.
 
According to Chen Shiqing, the most essential feature of “internet + regional economy” is that the regional economy is combined with the internet to optimize the industrial structure, update development ideas and promote regional economic upgrading and transformation. Relying on the internet, the originally isolated traditional industries within the region are interconnected, sharing information through big data and big search. To date, the internet has completed industrial integration and upgrading in fields such as finance, logistics and retail, and certain results have been achieved. In the era of the internet economy, the locational factors that are traditionally considered as important such as transport, geography and natural conditions are of less significance for regional economic development.
 
On the other hand, “internet + regional economy” has reshaped the regional economic development model. “Internet + regional economy” has changed the traditional extensive development model of relying on the heavy input of material resources. Instead, it relies more on the additional effects of information technology and the knowledge-based economy to improve the quality of regional economic development. The emergence of internet-based new industries has laid a solid foundation for the transfer of information and knowledge. And the development of e-commerce, software development, P2P platforms and other internet-based industries is not constrained by geographical locations and natural resources, which is of particular significance for the development of economically outdated areas.
 
Boost China’s Industrial Transformation and Upgrading
 
In today’s world, as Chen Shiqing pointed out, a new round of information technology revolution is restructuring the industry value chain, and the economy and society are developing in full gear towards intelligentization and networking. With the implementation of the “Internet+” action plan, industries will be intelligentized to build a complete smart economy industry chain.
 
The smart economy is more than a label, a buzzword or a concept for speculation. It represents an economic growth model, a development model, a scientific theory and a paradigm of economics. As a new growth model, a development model and a paradigm of economics, the smart economy has a profound theoretical foundation, and is inevitable in social development.
 
Firstly, the smart economy is not just about smart facilities, smart cities or communities, information systems, the internet, the IoT or Internet+. On a normal scale, the core implications of the smart economy are as follows: It is driven by intelligence and knowledge, based on creative industrial parks, smart tools and Internet+, and different advantageous assets are combined according to specific circumstances to complement each other and complete an ecological, reproducible, systemic and sustainable industry chain. The symmetry between subject and object is leveraged to help enterprises achieve scale operation, technological upgrading, industrial restructuring, infrastructure improvement, regional economic development, and the urbanization of rural areas and the ecologicalization of urban areas.
 
Secondly, the information highway, highway and high-speed railway are links between the urbanization of rural areas and the ecologicalization of urban areas, while the urbanization of rural areas and the ecologicalization of urban areas are two bridges connecting the macro-economy and the micro-economy. The urbanization of rural areas and the ecologicalization of urban areas will cause chain reactions. They will be far-reaching and will have a great impact on the overall situation, constituting new economic growth points for the smart economy. The smart economy is to achieve vertical integration through horizontal integration, to optimize allocation of resources, change the structure of resources and to make resources renewable, so that the structure delivers productivity, that enterprises grow in clusters and on a large scale, and that industries and regional economy achieves systematic and sustainable development.
 
Thirdly, the “Internet+” action plan will create a favorable atmosphere for the public to start businesses and innovate, activate the market “cells” and cultivate more innovators. With “creativity, innovation, creation and entrepreneurship” as the core, essence and soul, the smart economy is an innovation-driven economy. The smart economy has brought a new meaning to innovation. In the era of the knowledge-based economy, creativity comes before real innovation, and innovation comes before true entrepreneurship. An enterprise cannot start, survive or develop without entrepreneurship. We should drive innovation with creativity, promote knowledge-based industries with innovative industries, use the national system of innovation to advance the national system of entrepreneurship with mass entrepreneurship and innovation, and use that system of entrepreneurship as a catalyst for the national system of innovation. This should be China’s model of economic development under the new normal as well as a shortcut for China to overtake developed countries in its economic development. (Text / Reporter Yao Bucheng)