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Chinese Economic Boom
But, being the world’s leader is not enough. The government does not plan to sit on its laurels at the top of the mountain, its plans to lap the field. The government is offering numerous for patent filings, including cash prizes, subsidized housing and targeted tax breaks. More innovation at home is not enough; the Chinese government is also encouraging more patent filings in other markets, including the US. China has already filed numerous US patents in the alternative energy fields. Patent filings are a measure of technological prowess and innovation. China’s twelfth Five- Year Plan reveals a national strategy with several worrying developments for multinational corporations. The economy will focus on seven aims to dominate on a global level: alternative energy, biotechnology, new- generation information technology, high- end equipment manufacturing, advanced materials, alternative- fuel cars, and new energy technologies. Much of the growth will be designed to meet increasing domestic demand, but China will be unable to consume all it produces. High- tech exports, then, will necessarily become a vital component of its plans. Product quality is a major concern in China. If global companies are to compete in China’s strategic sectors, they will have to work hard to produce reliable products, continue to innovate, and remain protective of proprietary technologies. China’s lack of intellectual property rights protection and its focus on replication dissuades creative thinking, leaving domestic companies often a few steps behind.
China’s plans are not only call to rally China’s domestic industries overseas, they are warning for foreign multinationals. China is beyond commoditizing t- shirts and solar panels. The world should get ready.
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