Innovation, entrepreneurship to lead Chinese economy: Summer Davos attendees

Following a speech by Premier Li Keqiang, economists and business leaders at the Summer Davos forum in the port city of Dalian agreed that innovation and entrepreneurship will become China's new economic drivers.

Li highlighted innovation and entrepreneurship as key growth points for China during his speech on Thursday, saying creativity is the biggest resource for development, and the millions of small and micro enterprises are the hope and future of the nation.

The remarks were echoed by many meeting attendees.

"In the context of a global wave of innovation, it's good to see China make efforts to improve innovation to advance production capacity. It will fundamentally change China's economic growth structure," said Zhu Min, vice president of the International Monetary Fund.

Another attendee, Qin Hongtao, president of a Beijing-based investment management company, said Li's speech will encourage innovative Chinese companies.

"I believe the wave [of innovation and entrepreneurship] will also boost our business and serve as a growth point for companies," Qin said.

The Chinese government has introduced an array of favorable measures, such as cutting red tape and tax breaks, to spur business startups and innovative firms. New firms are registered every day, with many in high-tech sectors.

The growing number of firms explains the robust job creation in China despite economic headwinds, while preferential policies have prompted rapid development of high-tech industries.

Output of high-tech industries expanded faster in July than the previous month, up 9.6 percent year on year, while overall industrial output growth slowed to 6 percent.

In contrast to lackluster economic indicators, high tech industries and rising enthusiasm for entrepreneurship have become the bright spots in the economy.

China's economy expanded 7 percent in the first half of the year, the lowest reading since the global financial crisis that began in 2008. After years of high growth, policy makers are trying to steer the economy onto a sustainable path.

Ma Liya, chief analyst with Management Development Services Ltd. in Beijing, said that China could achieve sustainable development thanks to innovation.

"We have witnessed China's achievements in technological development in the past years," Ma said. "I think Li's speech sent signals of hope that China will also play a positive role in global sustainable growth in the future." Endi