Interview: CTA President says China has advantage in becoming innovation power

Back from a joyous Christmas recess, Gary Shapiro still recalled the experience of voice- messaging with his wife via Wechat, a novel mobile app devised by a Chinese company, on a sunny beach.

Shapiro, president and chief executive officer of Consumer Technology Association (CTA), which runs the annual Consumer Electronic Show (CES), has access to stylish instant messaging tools from WhatsApp to Line.

Shapiro and his family, however, are greatly impressed by Wechat, which is developed by China's Tencent, for its extraordinary hold-to-talk voice messaging and group chatting functions.

"Wechat works for us," Shapiro told Xinhua. He asked his team to use Wechat as their official communications vehicle in running this year's CES which is scheduled to take place in Las Vegas, Nevada, from Jan. 6-9.

At this year's CES, the annual bazaar of the latest electronic gadgets and technology held in Las Vegas, thousands of companies across the world will showcase their state-of-the-art consumer novelties.

More than a quarter of them are from China and Tencent is also coming. No doubt to say, they have risen to become a major power at the CES, Shapiro said.

Chinese companies share greater limelight at CES, Shapiro suggested they have to learn more to transform from great manufacturers to great brands.

"If a Chinese company wants to be well-known like American or Japanese companies, that requires major commitment, investment in training of employees, being part of the local culture and creating services that consumers expect with the brand," he said. "So people see a Chinese brand will say, I want that product because that company stands behind the product, they always give me good experience."

Shapiro believed China has its unique advantage of transforming itself into a hub for innovation.

"The Chinese government works very closely with the businesses to get things done quickly. In the United States, that could be pretty slow," he said.

According to Shapiro, China places high priority on innovation in government policy by making companies to start their new business more easily and curbing corruption and bureaucracy. Also, China encourages new business formation and new ideas.

Shapiro said taking risk is encouraged in the United States as an innovation culture. "I think the Chinese government is heading that direction very quickly though there are more can be done."

As more and more Chinese companies moved their assembly lines to the United States to tap bigger market, Shapiro suggested Chinese electronic manufacturers follow suit.

Investment in local manufacturing anywhere in the world allows you to adapt to local marketplace and build brand loyalty in a quicker fashion, he said, adding that the production cost difference between China and the United States is shrinking. Endit