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Opinion: Let the Market Supercharge China’s Tech

Published: Jun. 16, 2025  3:52 p.m.  GMT+8
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Huawei CEO Ren Zhengfei.
Huawei CEO Ren Zhengfei.

Beijing is once again grappling with a familiar challenge: how to transform its prodigious scientific output into economic dynamism. At a recent State Council study session, Premier Li Qiang rightly stressed that converting research breakthroughs into commercial successes demands an environment where “an effective market and a capable government” work in tandem. His call to “make greater use of market forces” by attracting private capital and encouraging financial innovation is a welcome diagnosis for an economy seeking new growth engines. Indeed, a vibrant, healthy capital market is the lifeblood of technological commercialization.

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  • China leads globally in scientific output and patents, but only 13.3% of institute patents and 3.9% of university patents are commercialized.
  • Key barriers include researcher incentives, weak commercialization intermediaries, and insufficient risk-tolerant capital; contract values for tech transfer rose to 205.4 billion yuan in 2023.
  • Recent policy shifts stress enterprise-led innovation, multi-tiered capital markets, and support for SMEs to improve research commercialization and emulate successes like Huawei.
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Who’s Who
Huawei Technologies Co. Ltd.
Huawei Technologies Co. Ltd. is highlighted as a successful Chinese high-tech enterprise. Its CEO, Ren Zhengfei, emphasizes that greater openness fosters progress. The article suggests that China needs to cultivate more companies like Huawei by building a robust tech-finance ecosystem, developing multi-layered capital markets, and nurturing patient capital.
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What Happened When
1996:
China enacted its Law on Promoting the Transformation of Scientific and Technological Achievements.
2019:
The contract value for tech commercialization was 108.6 billion yuan.
2022:
A survey by the National Intellectual Property Administration revealed 48.1% of enterprise invention patents were industrialized, 13.3% for research institutes, and 3.9% for universities.
2023:
The contract value for tech commercialization nearly doubled from 2019 to 205.4 billion yuan.
By the end of 2023:
Research institutions in China held over 1 million valid invention patents.
2025:
At a State Council study session, Premier Li Qiang emphasized the need for greater use of market forces and financial innovation to commercialize research.
2025:
Recent progress in China's chip sector was highlighted as influenced by market forces.
2025:
The Third Plenum of the 20th Communist Party of China Central Committee signaled new policies to support tech commercialization and innovation.
2025:
People’s Daily interviewed Huawei CEO Ren Zhengfei, discussing Huawei’s success and the importance of openness and a robust tech-finance ecosystem.
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