In 2007 the Chinese economy is very significant in terms of the year, this year the Chinese stock market in the world's top companies and five Chinese companies, we also see the continuous appreciation of Renminbi, China Prices are continuously rising, all of which actually reflect the fact that China's economic globalization and China's urbanization campaign under way.
This year marks the first reform of our country 30 years of the end, if we run from from 1978, next year should be the second in 30 start. I remember that in the initial reform and opening up, we expect many people, reform and opening up may be five to 10 years time should be completed, and now we have gone 30 years, but we also know that far from complete. But we do see, although the reform and opening up is far from complete, the Chinese economy in the international arena has become a very important phenomenon, any one occasion, if not talk about the Chinese economy is impossible. I remember in the 1990s in foreign countries, the Nobel Prize in Economics, several in the United States can not see the European side, met in China. These reflect a basic fact that China really become a world economy on the move if the light weight of the country, why make such a big success.
The important point is that we implement a market economy, we look back at history, not just China, the world, a country where the market economy system, which will be the country's economic growth will improve people's lives. Human up to now it's 250 years of history, but human are 97 percent of the wealth in the past 250 years of accumulated inside, is the one in the accumulation of time. China's reform and opening up over the past 30 years, every 10 years to double per capita GDP, this rate, speed, the seven countries in the world are not. Whether European countries in the past 250 years of
Inflatable Sports development, or the Chinese in the past 30 years of development, a basic theory is that a market economy, today we Looking back at history, indeed to see the market economy has brought us Substantial changes in 2007 also have another phenomenon, anti-market policies in the market constantly introduced. This is worth our attention. We should not forget where we come from success. If we are not the appropriate policy is not to continue to promote market-oriented reform, but a number of anti-market measures, then we are facing economic problems can not be resolved.
At the enterprise level, a very important point, just two people talking about the trade, Chinese enterprises take the next step how » We rely on the past is the cost advantage, we mainly rely on the international cost advantages, increasing the pressure on costs, the cost advantages of Chinese companies also would be able to maintain the growth of the number of years, this is a question mark. The next step may be to enterprises in terms how the cost advantages from the past to brand, in 2007 I think this successful example is Lenovo, Lenovo International to prove that it do very successful. But I also saw some enterprises into the international, go very hard, very difficult, now can not be successful, these are the fundamental issues, Chinese enterprises in the international time, we should do » What preparations should do some » Lenovo in this regard may be ready to do than some other enterprises should make full point.
No matter what kind of enterprises into the international, cost advantages to gradually disappear, now in the context of globalization, all the labour market are, senior labor market throughout the world, is also a global capital market. Chinese enterprises to global and U.S. companies pay the same cost, how we create value » I want to gradually build our brand.
Innovative achievements of brand value
Advantages in brand building, I would like to make one point warned that too many Chinese enterprises to establish the brand as a marketing Inflatable Sports process, the process of advertising, in fact, the brand is really rely on innovation from the world's no business, if Can not be sustained innovation, continuous introduction of new products, new technology, can become a truly international brand, so I hope that the Chinese enterprises to understand the error of going out and really focus efforts on research and development spending, spend money, to So that their more innovative capacity so as to create a truly global brand.
I would also like to innovation in particular emphasize that there are two types of innovation, we called a company of innovation, and the other called for innovative entrepreneurs. Just mentioned Baidu, Alibaba, which should be the entrepreneurs of the innovation, such innovation in the past of human economic growth has played a tremendous role. However, we must recognize that in developed countries now belong to large companies and innovation of innovation, that is already very mature, they have made innovations in the United States 70 percent of the patents belong to the company's patent, not personal Patents, so Chinese enterprises, in particular have done a certain scale enterprises to explore the internal real innovation capability so that it becomes truly innovative companies, not only for himself, the entire national development is also crucial.
Reminds me of home-style terms of innovation in China Inflatable Sports is still very important. This type of innovation in particular need the support of some funds, so I think in 2007 when there is a very important phenomenon, the so-called PE, we have to understand what is PE » PE is the price-earnings ratio of listed companies, PE is now the private equity funds. This may be growing importance of the show, so we in a few years ago, is now the capital, now more on PE, as in the past hours are not necessarily high-risk characteristics of the capital, is no need to raise public can make These innovative enterprises and innovative talent able to obtain funds to support a very important factor. I think these factors in the coming 2008 may be further developed, I think the purpose of the past 30 to be designated a full stop, the future of the 30 already begun.