Professor Zhang Yuchen from the Department of Innovation and Strategy (under preparation) of Tongji SEM has recently been invited to the live room of the 632 Observation column of the Oriental Financial Pudong Channel and talked with the members of Pudong’s first mission “going overseas to attract investment” over a link. With a focus on the resumed face-to-face enterprise exchanges overseas since the COVID-19 restrictions were lifted, Professor Zhang expounded on China’s role and strength in overseas markets, highlighted the many advantages of face-to-face enterprise exchanges overseas, analyzed the assisting role that open innovation centers have played in the development, and proposed that Pudong should “comply with common rules, provide government support and tap into market opportunities” in order to promote investment in the future. The interview footage and a sample of its material are provided below.

Q1

Since China’s COVID-19 prevention policy was changed, a large number of enterprises have decided to shift their attention back to overseas markets. For example, relevant Pudong government departments have been abroad to promote investment. What do you think it reveals?

Zhang Yuchen:

Firstly, the government and enterprises are firmly committed to the idea that “economic development remains the top priority”, so they take advantage of any opportunity to develop the economy;

Secondly, the government and enterprises resolutely advance reform and opening up, and their development is highly correlated with the common development with global partners, so they go overseas to attract investment; and

Thirdly, “going overseas” shows how thoroughly China’s economy has been integrated into the global industrial system and how much more reliant China has become on international markets. With its rapid development in recent decades, China has established itself as a major global manufacturing center. The world and China are intertwined.

Q2

The government and enterprises have reduced their foreign exchanges over the past three years due to the impact of COVID-19. What roles will resuming face-to-face exchanges play in promoting economic development?

Zhang Yuchen:

Firstly, “one meeting outperforms a thousand e-mails.” Going overseas for face-to-face talks can sincerely and accurately show the attitude and willingness of the government and enterprises to cooperate;

Secondly, the government’s policies can be described in detail in face-to-face communication. For example, as a pilot zone, Pudong has launched many new technology applications, scenarios and experimental technologies, and such complicated technologies can be explained clearly in face-to-face communication; and

Thirdly, economic exchanges involve human interactions, and long-term face-to-face exchanges help establish a sustainable and reliable cooperation mechanism.

Q3

What do you think are the benefits for overseas enterprises to join the Group Open Innovation (GOI) initiative to develop in China?

Zhang Yuchen:

Firstly, enterprises can access a wide range of global innovation resources by joining the GOI initiative. Only by opening the GOI can people from outside can engage in its innovation activities. For example, thanks to the GOI, Japanese enterprises can effectively combine their resources with those of Shanghai;

Secondly, joining the GOI initiative is beneficial to the synergy of the industrial chain. The industrial chain today is an open, world-wide industrial chain. Only open innovation has the potential to unite numerous entities in the industrial chain to advance the shared goals. Connection is crucial in the Internet era;

Thirdly, joining the GOI initiative can encourage the creation of new business forms and new enterprises. For example, some small companies in Shanghai participating in the nationwide innovation of large companies may create a new technology growth point and a new industry, which will produce a variety of new business forms and new technologies.

Q4

How do you think the core enterprises or industries in Pudong can best blend the characteristics of Japanese industries?

Zhang Yuchen:

It’s important to put innovation cooperation into practice. Innovation is a fundamental aspect of the modern world. Enterprises that truly integrate into the core industries in Pudong to play the leading role must collaborate with those enterprises in the industrial chain to innovate. They are all interconnected.

Q5

What are your expectations and suggestions for Pudong’s investment promotion in the coming year?

Zhang Yuchen:

Firstly, the main goal of investment promotion is to increase cooperation, but the cooperation is conditional. It’s important to comply with common business rules and logic; and

Secondly, government support and vast market opportunities should be made available. The enormous market potential in China are more significant than the government’s strong support, so it’s important to foster a climate of openness and offer ample market opportunities there.

Source: Oriental Financial Pudong Channel, January 17, 2023