Value Proposition: A New “Long March” & E³ Economy on China’s Integrated Development of Internet, Big Data, AI and Manufacturing Industry

178 Pages·2020·1.253 MB·English

by  Jian Yuchi

Jian Yuchi
Value Proposition
3
A New “Long March” & E Economy on
China’s Integrated Development of
Internet, Big Data, AI and Manufacturing
Industry
Value Proposition
Jian Yuchi
Value Proposition
“ ” 3
A New Long March & E Economy
’
on China s Integrated Development
of Internet, Big Data, AI and Manufacturing
Industry
123
Jian Yuchi
Ministry of Science
andTechnology of China
HighandNew Technology
Development andIndustrialization
Beijing,China
Translated by
Jian Zuo
Schoolof Architecture
andBuilt Environment
University of Adelaide
Adelaide, Australia
ISBN978-981-15-5024-9 ISBN978-981-15-5025-6 (eBook)
https://doi.org/10.1007/978-981-15-5025-6
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Foreword by Zhenhua Zhao
It is not necessary to have met with each other before we become the best friends.
Indeed, the communication of spirit and ideas play the most critical role. I did not
know Yuchi Jian before. Professor Chen Fu forwarded this book to me. I read it
carefully and found it very useful.
First, this book is easy tounderstand. Book is written to be read. If it ishardto
understand,nobodywillreadit.Exceptforthesmallnumberofspecialists,mostof
us are more used to master knowledge and accept ideas in a relaxed state. To me,
the essence of this book is to explore how the Chinese economy, especially the
manufacturingindustrycantransformfrombigtostrong.Thismeanstobeaserious
topic. A Ph.D. student may utilize various theories (e.g. mathematical economics,
advanced macroeconomics, advanced microeconomics) and draw conclusions
through complex arguments. By contrast, this book has been written in a way that
everyone accepts the new idea of “asset-light” in a relaxed state. Following this
idea, the Chinese economy can be transformed and upgraded. The gap between
China and advanced countries has been bridged, finally fulfilling the “China
Dream”(i.e.therejuvenationoftheChinesenation).AsfarasIcansee,“BigData”
writtenbyTuZipei(whomIdidnotknoweither)isagoodbookonbigdata.This
bookwrittenbyYuchiJianisaverygoodbookthatintegratesInternetandbigdata
with real economy. Although contents are on Internet and industrial economy, the
language used is so elegant.
Second, this book is full of thoughts. Looking back the human history, most
booksthatarepastdowntofuturegenerationsarefullofthoughts.Thisisaneraof
knowledgeexplosion.However,itdeservesdeepthinkingwhatcanbeleftafterthe
explosion.Everyday, amagnanimity of booksare publishedand then converted to
pulp straightaway. In essence, it is because of the lack of thoughts. After carefully
reading, I believe there are plenty of thoughts in this book. For instance, the
Germany “Industry 4.0” is summarized to a transformation from “asset-heavy”
industrialdevelopmentmodeto“asset-light”industrial Internetdevelopmentmode
with an aim to operate the core values of the industrial ecological chain. The
Chineseleadingenterprisesshouldadopta“stripped”strategyforwhichtheirlarge
number of production, processing and assembling workshops and service links
v
vi ForewordbyZhenhuaZhao
shouldbegraduallypassedontoSMEs.Bycontrast,leadingenterprisesshouldpay
more attention to the R&D of core technologies, high-end manufacturing, estab-
lishing industrial standards and digital standards, as well as the deep integration
between the Internet, software, big data and informationization. Ultimately, the
Chinese leading enterprises must adopt the new development mode, i.e.
“asset-light” industrial Internet.
Third,thisbookisfullofconvincingcases.Theauthorhasconductedthorough
study of the industrial economy of various developed countries such as Germany,
USA and Japan. The use of cases has made it very easy for readers to understand
the principles and theories.
Ofcourse,noproductisperfect.Itrusttheauthorwillcontinuouslyimprovethis
book. I am looking forward to the future editions of this book.
April 2016 Zhenhua Zhao
Economist, the Dean of the Graduate
College of the Party School of the
Central Committee of CPC
Beijing, China
Foreword by Yiming Wang
I was invited to write recommendation forward for this book. Therefore, I per-
sonallymetYuchiJian,theauthorofthisbook.Despiteashortmeeting,Iamvery
impressed by his thoughts on the Internet Economy.
During the travel, I managed to find time to read this book. To be frank,
nowadaysveryfewbooksaresointerestingthatreadersarehappytoreadfromthe
beginning to the end. However, I read this book all at once. The topics covered in
this book is very interesting. In addition, the logic is very clear, and the art of
writingisshownthroughoutthebook.Internettechnologiesmayseemveryhardto
understand,howeverthisbookisnothardtofollow.Moreimportantly,theanalysis
and argument in this book clearly show the unique opinion and in-depth thinking
of the author.
Sinceitsintroduction,thereisnever-endingdebateofInternet.However,inmost
cases, Internet is considered as a technology, tool or approach. By contrast, very
few studies approach Internet in terms of economic form. From the perspective of
industrial development mode and production mode, this book proposed that
“asset-heavy” mode which aims to operate the value-added of the enterprise itself,
willbereplacedby“asset-light”developmentmodewhichaimstooperatethecore
valuesoftheindustrialecologicalchain.Intermsofeconomicform,thetraditional
manufacturing industry, financial investment industry and service industry are
relatively independent. By contrast, following the new development mode of
Internet Economy, the Internet and Industrial Internet will become the core of the
national economy. Meanwhile, the Internet and Industrial Internet will be deeply
integrated with traditional manufacturing industry, financial investment industry
and service industry. Indeed, the boundary of industries becomes increasingly
blurred. Both Germany Industry 4.0 and U.S. Internet companies (presented by
Google and Apple) will result in revolution of the traditional industries. Internet
economyrepresentsthedirectionofindustrialdevelopment.Indeed,thecorevalues
of industries are flowing to the Internet industry. Traditional manufacturing
industry, financial investment industry and service industry will be completely
transformed by the Internet industry.
vii
viii ForewordbyYimingWang
HowtokeepthepaceoftheInterneteconomy?Accordingtotheauthor,thereare
two fundamental approaches for the transformation and upgrading of the Chinese
traditionalindustriestotheInternetindustry.Thesetwoapproachesare:“+Internet”
model, i.e. letting software company and Internet company “be married” to manu-
facturing enterprises; and “Internet +” model, i.e. letting manufacturing enterprise
“bemarried”tosoftwarecompanyandInternetcompany.Thisisundoubtedlyakey
directiontoadjustthenationalindustrialstructureinChina.Bothmodelswillleadto
the reform of traditional industry and economic form. In this book, the author has
used alarge numberof typical cases to illustrate thereasoning that core values are
flowingtoInternetindustry,softwareindustryandhigh-endmanufacturingindustry.
These are veryconvincing.
I highly agree with the author that priority should be given to the impacts of
InternetonthetraditionalmanufacturingindustryandserviceindustryinChinaand
beyond. The author pointed out that leading enterprises should adopt a “stripped”
strategy that those non-core technologies and businesses could be handed to spe-
cializedSMEs.Bycontrast,theleadingenterprisesshouldpaymoreattentiontothe
R&D of core technologies, high-end manufacturing, establishing industrial stan-
dards and digital standards, as well as the deep integration between the Internet,
software, big data and informationization. They need to place more focuses on
developing the industrial technology systems with industrial supply chains and
service chains. Based on the allocation of superior resources at the national and
international level, new industrial ecosystems will be formed. Those leading
enterprises should be upgraded to “asset-light” industrial Internet companies with
anaimtooperatecorevaluesoftheindustrialecology.Theywillstayatthetopof
industrial value chain, keeping up with the new Internet economy. Indeed, these
thoughts and opinions are very forward-looking.
Of course, I do not necessarily agree with all opinions proposed by the author.
Forinstance,theauthorproposedthreestrategicbasepoints,i.e.plannedeconomy,
marketeconomyandInterneteconomy.Consequently,aneweconomicinstitution,
structure and mode can bedeveloped for China, i.e. “e3theory”. The author might
have mixed up two things, i.e. planned economy and the effectiveness of govern-
ment intervention. As a kind of institutional structure, it is difficult to integrate
planned economy with market economy. The key to promote the socialist market
systemisthedecisiveroleofmarketinresourceallocationwithhighereffectiveness
ofgovernmentintervention,fromtheperspectiveofinstitutionalform.Surely,there
willbenewdemandfortheinstitutionalreformofthenationaleconomyduetothe
development of Internet economy. However, it is not appropriate to mix the
instructional form with economic form.
ForewordbyYimingWang ix
Of course, I never deny the core opinions and unique value of this book. This
book is absolutely worth reading, no matter you are entrepreneur that are keen to
exploretheInternetindustry,oryouarespecialistthatareinterestedintheresearch
of Internet industry and Internet economy.
Therefore, I strongly recommend this book to you.
April 2016 Yiming Wang
Economist, Deputy Director-General
of the Economic Development
Research Center of the State Council
Beijing, China
Foreword by Nanning Zheng
I have known Yuchi Jian since 2000. Due to working commitments, both of us
participated into discussions on the strategic research and planning related to
manufacturing and information technology. At that time, there is a new tide of
Internetdevelopment.Duringthatperiodoftime,YuchiJianisverykeentodiscuss
from experts on the future development of information technology, impacts of
continuousinnovationofinformationtechnologyanditsintegrationwithindustries
on the economy. He is very good at independent thinking, often coming up with
uniqueopinionsonthetechnologicalinnovationaswellasthereformofeconomic
development mode.
As soon as reading the table of contents, I have been impressed and willing to
finishthereadingallatonce.Theopinions,argumentsandexamplesareallclosely
related to the national strategy on Internet Economy. It clearly pointed out the key
for the transformation of the Chinese economy and industrial development mode.
I believe this book will be very popular. Indeed, I strongly recommend entrepre-
neurs, industry circles, financial investment circles, economic circles and govern-
ment decision-makers to read this book and participate into the debate on Internet
Economy and the new development mode.
Recently, the impacts of Internet on economy, industries and enterprises have
drawn extensive attention. This is especially the case for the traditional manufac-
turing industry, financial investment industry and service industry. As a kind of
information technology, how Internet can make such profound impacts on econ-
omy,industriesandenterprises?Iamsureeveryoneisthinkingaboutthisquestion.
Based on the extensive research, the author proposed that Internet has become a
new economic theory rather than a core technology. This has helped us to gain a
better understanding of the major transformation derived from Internet on the tra-
ditionalmanufacturingindustry,financialinvestmentindustryandserviceindustry.
It seems that there is continuous innovation of information technology that is
representedbyInternet,softwareandbigdata.Theemergingnewproductionforces
will inevitably lead to the adjustment of production relations accordingly. Indeed,
opportunities and challenges co-exist.
xi