Translation by Ren Zegang
Mass Entrepreneurship and Innovation is a campaign initiated by the Chinese government aiming at encouraging scholars and professionals in universities and institutions and university graduates to set up high-tech start-ups. This campaign is considered important for the transformation of the Chinese economy from labour and resources intensive to high value adding.
“National Mass Entrepreneurship and Innovation Week” jointly organised by state council of the Chinese government and some provincial governments was hold in main host city of Shanghai and several other cities in Sep 15-21, 2017. In this event, along with the exhibition of eye-catching high-tech products such as robots, drones and rocket launchers, there were also on display of supportive technologies for daily business operation.
Shanghai based Ucloud is such a company that has 14 data centres in cities around the world including Singapore, Los Angles and Frankford. It offers services of cloud computing to a wide range of businesses.
“The annual sales of 2012 was 1 million yuan, the average of monthly sales in 2013 was 1 million yuan, the average daily sales was 1 million yuan in 2015, the sales for 2017 is expected to reach 1 billion yuan and profit to be 10 million yuan.” Ji Xinhua, CEO of Ucloud told reporter.
Ji and other co-founders of Ucloud were mainly senior managers in Tencent, one of the largest Chinese IT companies that has a market value bigger than Alibaba.
“In Tencent what I had done was all for Tencent, now with the company we created we can help businesses up to 50-60 thousands.” Ji said.
Shu Chang, CEO of Onespace in Beijing, was born in 1985 and has dual degree in aircraft designing and economics from prominent Chinese Universities. After graduation he got his first job in China Aerospace Science and Technology Corporation, one of the major state owned corporations in China.
Shu expressed that as a professional in space industry he is fully aware of the success of commercial space launch in the US. Now such opportunities are also opened in China as the Chinese government is very supportive to the participation of private businesses in the Chinese space industry.
Shu plunged himself into the creation of Onespace two years ago whose main business is to launch micro commercial satellites and carry on verification of space innovations for customers. Onespace targets 10 percent reduction in weight in their rockets in comparison with the traditional ones through high level of integration and innovation.
Shu’s team are mainly comprised of talents leaving from China Aerospace Science and Technology Corporation and Aviation Industry Corporation of China, two major state owned corporations in the field. Onespace will test its newly designed rocket next year and launch one satellite each in the first and second half of the next year.
Shu told reporter that he and his team is highly motivated by the success of Elon Musk’s Space X in commercial space launch. Shu is confident that Onespace will make difference in this field thanks to its low cost advantage. The launching price for micro satellite is averaged US$30-50 thousands a kilogram internationally and US$20-30 thousands in China. Onespace can further slash it by half.
Luo Xin, who had had 12 years of experience in aircraft designing created Eaglesky with a team of more than 10 professionals in 2011. All of them had been employees of Aviation Industry Corporation of China (AVIC).
It was very sluggish for Eaglesky in the initial stage until 2015 when AVIC organised a hatching platform to support start ups in the aviation and space industries. With the help from the hatching platform, Eaglesky has been able to access to AVIC’s supply chain, orders from the military and participation in the major international events.
In Paris Air show 2017, Eaglesky singed 3 intention orders with three foreign companies valued at US$10 million. Eaglesky is able to achieve breakeven this year with sales expected to reach 30-40 million yuan in 2018.
Wang Yi who had been working as a project manager in Google headquarter returned to China in 2013 in appreciation of the favourable environment for business start-ups in Shanghai. After 4 years endeavouring, his creation “Fluent Say” which is an Englishing teaching program with specialised software goes smoothly. This project has successfully attracted investment valued at close to one hundred million USD recently.
The achievements on mass entrepreneurship and innovation at national level has been encouraging. The increase of business registration has been extraordinary, jumping from 9.46 million in 2012 to 16.51 million in 2016. The size of capital from investment funds dedicated to start-ups in high-tech industries has reached to 358 billion yuan which has expanded by 6 times from the level in 2012.
In Shanghai 19 billion yuan has been allocated to 53 investment funds assigned to help start-ups. In addition venture capital up to 1.8 billon yuan is made available to start-ups through 16 investment funds.
The number of hatching platforms which are supported by the governments at central and local level have reached to 7500 thousands nationally. In Shanghai 500 hatching platforms have provided services to 12000 start-ups. The services provided by the hatching platforms are ranging from office accommodation, business information, use of laboratory, favourable finance and accessing to up and down stream businesses. One of the major incentives is that the inventions brought into start ups by scholars and professionals can be converted into company equity when the products become successful in market places.
The increase of value adding by high-tech industries in China has been far above the conventional manufacturing in the period from 2014 to 2017. In 2014 the growth of high tech industry was by 12.3% while the conventional manufacturing was 8.3%. In the first half of 2017, high tech industries grew by 13.1% while it was 6.9% for the conventional manufacturing.