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Crisis Under Prosperity-- Analysis of Innovation in China

21 percent of Chinese patents are for original invention, and the domestic value of patents in

China is so low that people don’t have the incentive to develop the “deep innovation”
themselves. Instead, they depend heavily on imported intellectual properties by paying

licensing fees, recruiting Chinese scientists who study or work abroad, hiring professionals
from foreign countries, and acquiring international corporates. In exchange for access to

markets, foreign multinationals in China are forced to provide technology transfers. Once
China finished extracting valuable technology, it replaced these leading foreign companies

with successful Chinese firms. All in all, Chinese firms claim nonindigenous innovation to

be their own, as is found in Tencent Games, which claims ownership of games it invests in.

III. Conclusion

While China’s innovation renaissance seems to be unstoppable as we see the popularity of

WeChat, Weibo, and DiDi, there are many challenges that China have to overcome to reach real
innovation. Even though some may argue that China now can offer high-quality and low-cost

products which are considered strenuous in the west, how can China change the existing negative
image of the phrase “Made in China”? Also, if China is satisfied with its domestic market and

neglects the international market, how can China become a global technology leader as it aims to

be? Instead of being panic about the rising power of China, we should take the hidden crisis
under the seeming prosperity of China into consideration.

IV. Reference

Pictures：

Figure 1
Taken by me in Shenzhen July 2018.

Figure 2
Taken by me in Shenzhen July 2018.

Figure 3
騰訊旗下收入占比圖 (2018)。Retrieved Octorbor 1, 2018,

from https://m.jiemian.com/article/2006023.html

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