The mainland must improve its regulatory environment if it is to achieve its hi-tech ambitions, according to a top US academic and former chairman of the SAR's Commission on Innovation and Technology.
Professor Tien Chang-lin said the country's soft infrastructure, including its legal and regulatory systems, continued to represent a fundamental obstacle to development of enterprise in hi-tech industries.
'There is still too much government interference,' said Professor Tien, formerly president of the University of California at Berkeley. 'China has talent and there is capital, but it is really lacking a regulatory legal system, including one that protects, for instance, intellectual property rights.' He argued that further problems would arise if the Government failed to move towards democracy. 'It is certainly moving into an economic democracy, but there will be problems if it does not fully integrate political and economic democracy,' he said.
Professor Tien said he saw the mainland gradually moving towards political reform. 'The system is undergoing an evolutionary process. It's like Taiwan 20 years ago,' he said. 'The process is going on, but the question is how fast and how slow.' He urged Beijing and corporate leaders to embrace, rather than fight, globalisation. 'Whether you like it or not, it's coming,' he said. 'The more you resist, the more isolated you become.' Instead, mainland industries needed to improve their production. 'They must institute reform and improve their international competitiveness.' He said competition between the mainland's self-proclaimed hi-tech zones was healthy. 'China is so big you can support three, four or even five. Even in the United States we have about 10 centres.' Professor Tien said none of the mainland's self-proclaimed hi-tech bases possessed a decisive advantage in the race for value-added dollars.
'Shenzhen is good, except it lacks an adequate education system and research and development facilities nearby,' he said.
He said Beijing had many advantages, but was subject to more interference by the central and local government.
