Technological innovation in China still has “much room for improvement” and the country needs financial support to develop new ideas, according to a prominent economist.
Tian Xuan, chairman of Tsinghua University’s national institute of financial research, said there is a particularly large gap with the United States.
He said nine out of the 10 biggest American firms by valuation were tech companies or funds that invested in technology.
In contrast China’s largest firm was the drinks maker Kweichow Moutai, followed by four state-owned banks. The battery maker Contemporary Amperex Technology was the only tech-related firm in China’s top 10 by valuation.
Xuan also said that Apple was valued at US$3.5 trillion, “which is two times or more higher than our top 10’s total”.
He added: “The crux of the issue is that how can the financial sector help expedite technological innovation and push the development of new quality productive forces.”
He also said foreign investment should be encouraged, because a “healthy and open capital market is necessary for enhancing innovation”.
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