From 'Made in China' to 'Created in China'

My hope is that the next iPad will be created, launched and marketed by a Chinese company in China.

This isn’t to imply, however, that Chinese people weren’t involved in the creation of Apple’s new iPad; my guess is that ethnic Chinese and Chinese nationals make up a fifth of Apple’s workforce.

Unfortunately, many of these creative Chinese minds are innovating while working for overseas companies and studying at prestigious Western universities.

With the economic crisis in full swing many Chinese who previously sought out opportunities in the USA and Europe have returned to China to develop their careers. This is an encouraging sign.

In Japan and South Korea, the transition to knowledge-economies took decades. China’s manufacturing sector will gain tremendous credibility as innovative and cutting-edge products and created and made in China and exported as high-value products.

I recently participated in a lecture conducted by the Hong Kong Trade Development Council, the “spokesbody” and marketing cheerleader for manufacturers in Hong Kong. I was presented with statistics highlighting Hong Kong’s relative advantage over Shanghai or Beijing as a Greater China headquarters location for multinational companies.

Why choose Hong Kong? According to the HKTDC, Hong Kong’s educational system and dynamic workforce make it a knowledge and innovation centre – and not just a factory to the world.

I, too, would like to see China continue transition from being the world’s manufacturing hub and become the world’s innovation and R&D hub – the good news is that the transition is well underway and it has the backing of the Government. From building China’s “national champion” companies to expanding investment in R&D capacities and IP rights, China has turned a page when it comes to innovation.

When the dust settles on the global economic crisis, Chinese companies will have come away stronger. The economic crisis has redoubled the efforts to transform the Chinese economy and finally make the leap from “Made in China” to “Created in China.”

Just last at the 3rd session of the 11th Chinese People's Political Consultative Conference in Beijing, Li Wuwei, CPPCC Vice Chairman, said: "From Made in China to Created in China, the word itself explains the transformation of the economic growth pattern. That requires us through technological innovation and cultural creativity to push forward our industrial development. That will enable our manufacturing industries to increase the value of their products and reduce environmental pollution. For example the creative industry has developed rapidly. In 2009, the growth rate of the industry was more than 17 per cent, making a great contribution to country's economy."

As I wrote in an earlier piece, China is looking to the Green Technology sector as an opportunity to lead as both the product innovator and manufacturer. The ongoing financial crisis has made it clear that export-dependent economies, such as China, need to strive to innovate and export high-value products.

A shift is underway: Chinese people are becoming more aware that copying other people’s products at a low cost is not the best path to success. Chinese enterprises are now looking inwards – at our 5,000 year history – to innovate and create unique products that represent that best of our abilities.

China’s education system will certainly play a major role in this transition; rote memorisation needs to be integrated with lessons that emphasize creative thinking, design and a global mindset. Innovation is sprouting in all sorts of places across China.

When you think of cutting edge jewellery does China come to mind?

From the People’s Daily regarding a January 2010 jewellery design competition in Beijing:

“China is overwhelming the world with its economic boom, the country has also been stereotyped as a "world factory" that only knows how to churn out shoddy products or copy from others, but lacks of the ability to create their own. The argument may no longer apply to the country's jewellery designs as China is set to stand out as a genuine creator in this field.”

The awards ceremony of the 6th China Jewellery Design (Zhaoyi Cup) Contest, themed "Chinese style, Chinese originality", which was held recently, in Beijing, once again shows this.

"I see a great improvement in both jewelry craftsmanship and design in this year's contest compared to the previous one. The designs really give me a surprise. I think Chinese jewelry is moving fast to change from 'Made in China' to 'Created in China'." said Wang Chunli, the chief judge of the Contest and also Vice President of the Gems & Jewellery Trade Association of China (GAC).

Another recent example of Chinese innovation highlights this trend very well: Huawei Technologies beat Ericsson to a telecommunications bid in Sweden.

As Xinhua remarked: “Beating Ericsson to a telecommunications bid in Sweden is like beating Toyota to an auto-making bid in Japan. And guess what, China's Huawei Technologies Co, Ltd landed with a 4G mobile phone infrastructure contract not because of its inexpensive ‘Made in China’ products but thanks to its valued ‘Created in China’ technologies.”

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