介绍:
Welcome to Biz Buzz, where we look at emerging trends in the Chinese business world. I'm Luo Yu in Beijing.
In this week's show we will talk about promoting innovation in China.
We also hear about Xiaomi becoming the most valuable tech start-up.
And finally, we discuss the possible Hong Kong- Shen Zhen stock connect.
That's all coming up in this edition of Biz Buzz.
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(0110 Biz Buzz Q&A1)
Anchor:
Innovation is crucial for China's future growth. But for the world's second largest economy, which has long depended on cheap labor to win the market, gearing China toward innovation-based growth is by no means an easy job.
Efforts to foster innovation need to come from multiple fronts. First, China needs to continue incremental investment into innovation spending. It also has to make sure that it is spent on the right areas and with high efficiency.
Second, innovation needs to tap into the potential of different players. They include enterprises, both state-owned and privately-owned, as well as universities and research institutions. For this matter, China needs to seek a more balanced role among the different players by letting the markets decide which direction that innovation should go.
So what are experts saying about all these important factors in driving innovation? How can China foster genuine innovation through institution building?
For more on this, Zheng Chenguang speaks with Dr. Wang Qing, Professor of Marketing and Innovation, at Warwick Business School in the UK.
That was Zheng Chenguang speaking with Dr. Wang Qing, Professor of Marketing and Innovation, at Warwick Business School in the UK.
You can get in touch with us via email with any questions at newsplus@cri.com.cn. Visit newsplusradio.cn to know more.
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Report: Xiaomi becomes most valuable tech start-up
Anchor: The Beijing based company Xiaomi has grown to be the most valuable technology startup company in the world. It is now valued at 45 billion US dollars.
We go to Sam Duckett for the details.
Reporter: Chinese company Xiaomi has become the world's most valuable technology startup company. More impressively, Xiaomi has managed to achieve this goal within just four years of operation.
Lei Jun is one of the founding members of the Xiaomi Company.
(soundbite 1 in Chinese)
"Xiaomi is a very small company, the company was built four years ago, I am sure that three years ago nobody believed that Xiaomi would become the number three. In a miraculous place like China, apart from Alibaba, which is a great company, a small company like Xiaomi has also been a small miracle."
The firm raised $1.1bn in its latest round of funding, giving it a valuation of $45bn. The company's worth is now more than quadruple the $10bn valuation it received during its last financing round in the previous year.
From a sales perspective, Xiaomi is already one of the biggest smartphone providers in the world. They are currently only trailing behind Samsung and Apple in Sales.
Xiaomi has set a target of selling 60 million smartphones this year, up from less than 20 million in 2013.
Tech guru Frank Yu, previously worked for Xiaomi president Bin Lin during their time at Microsoft.
(Soundbite 2 in English)
"The value that Xiaomi provides, in one sentence is that they take generic products from Shenzhen and have branded them. China has always been known for producing affordable handsets and they (Xiaomi) printed their own smartphones using the components that were already being used in Shenzhen and they were able to brand it into a unified eco-system, the Xiaomi brand."
Frank Yu also discussed how Xiaomi's success could also be interlinked with their strong international staff. Although the company is based in Beijing they have a lot of international talent, which previously worked for google, Microsoft and other various technologic giants.
One of the core reasons for Xiaomi's success is the cheap production methods they use; their affordable and competitive handsets have given them a strong brand. This has given them the opportunity to surpass Samsung in terms of Sales in China.
China, the world's second largest economy, is seeing rapid growth in the smartphone market.
Frank Yu discussed Xiaomi's sales outside of China.
(Soundbite 3 in English)
"The Android market for handsets is quite fragmented. It is divided not just between the google makers, the motorollas, the huaweis. It is really fragmented between a wide spectrum of technology companies. If you was to take out China then you would see that Xiaomi would be very small around the world, not because there is not a demand for it but because a distribution system for it is not set up anywhere beyond India and Singapore. Once they get those channels and distributors around the world we will see there is a segment in those countries that are willing and able to buy Xiaomi phones."
Xiaomi's skyrocketing valuation comes despite the intellectual property challenges it faced earlier this month in India, where sales were temporarily halted after Swedish firm Ericsson filed a patent complaint.
The success Xiaomi has enjoyed is a strong indication that they will be able to continue to branch out and produce more high quality affordable products in the future and tap into new markets, further increasing their value.
The company is also set to unveil a new flagship device this month (January 2015)
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(0110 Biz Buzz Q&A2)
Finally, Chinese premier Li Keqiang says a Shenzhen-Hong Kong stock link scheme should be established.
Li Keqiang is the highest-ranking official to suggest a cross-border stock trading arrangement involving Shenzhen after the opening of the Shanghai-Hong Kong Stock Connect in November.
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