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Crisis Under Prosperity-- Analysis of Innovation in China

achievement of Expeditors is Hong Kong’s international business network and environment.

Unlike the restricted business environment in China, Hong Kong has a relatively loose
control over the circulation of commodities. Moreover, the condition of free-trade port,

where goods may be landed, stored, or re-exported without customs duties, give the logistics
industry advantages to develop.

(Figure 4. Expeditors logo)

When comparing Tencent and Expeditors, we can easily perceive that the
government plays a critical role in industrial development. Under the restrictive regulations

from the Chinese government, Tencent has to put its own interests behind national security.

As a result, Tencent wouldn’t put much effort into going global despite its ambition toward
the global market. In this way, Tencent is somehow limiting itself from its greater potential.

Furthermore, Tencent’s current business strategy––pure money investment instead of
developing its original products––indicates that Tencent need not be innovative, which is

alleged to be one of its enterprise spirits. It was China that helped Tencent reach the position
it has now, but it is also China that impeded Tencent’s potential future.

C. Impeded Innovation in China

Tencent’s impeded innovation mirrors that of the technology sector of China as a
whole. Struggling to innovate due to Darwinian competition, Tencent successfully

established a ubiquitous mobile payment system in China that enables users to pay with their

smartphones; however, in the case of profound innovation, that is, the creation of its own
video games, even the titan Tencent has nothing to do. Similarly, China has been working to

get rid of the common negative impression of “ Made in China” as the synonym for “cheap
knockoff” by promoting indigenous innovation, but still, China faces a lot of obstacles to its

ambition.

Among the barriers, the education system that encourages deference to the authority

does not equip students with creative and risk-taking skills which are prerequisite for
innovation. Another setback is the environment China offer for the intellects. In China, only

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