The government is pumping funds into research, education and innovative projects, as Chinese tech firms flourish and investors and venture capitalists flock.
With rising production costs, an ageing population and shrinking return on investments it is clear why China’s economy has shifted from labour-intensive manufacturing to an innovation-driven paradigm in just a few years.
Today, Huawei is the largest telecommunications equipment manufacturer in the world and JD.com, Tencent, Alibaba and Baidu are among the world’s top 10 internet companies in terms of revenue. These companies, and the new tech-based businesses seeking to emulate their success, have all benefited from the “innovation ecosystem” China is developing.
So what are the key elements that make up this ecosystem and have enabled China’s economy to rapidly climb the value chain?