Is China in a period of extraordinary innovation?

With Alibaba's listing, more and more eyes are on Chinese technology companies. Like China's growing economy, China's technology industry is also changing. With the booming of mobile culture, the increasing economic activity and the influx of investors at home and abroad, China is now in the "Golden Age" of entrepreneurship. Li Shime, a VC expert, believes China is in a period of extraordinary innovation, even betting that five years from now, the world's most valuable and second-valued companies will be China's technology companies.

In recent years, with the development of economy, China is not only satisfied with becoming an electronic processing factory, but also has been laying the foundation for becoming an innovative technology power. In order to promote the development of High-tech clusters throughout the country, the government has given subsidies, and universities affiliated and independent laboratories are also constantly strengthening the training of young entrepreneurial talent. These efforts are now being rewarded. In the second quarter, China's fast-growing telecoms, media and technology companies traded up to 214 and invested up to $5.35 billion trillion, according to a new report by PwC. In contrast, last year the industry's companies received only 752 million dollars in investment. "Private equity and venture capital are now being fully developed in China's telecoms, media and technology sectors. ”

There are several reasons why China's technology industry is booming. First, due to the widespread use and affordability of services such as cloud computing, the cost of starting a technology company is falling, and the amount of money needed to build a technology company is now much lower than in the past.

In addition, industry insiders also said that the Internet-centric smartphone industry is also one of the reasons for the development. Although some Chinese families do not have personal computers, they can now have smart devices directly as the economy develops. The number of Internet users in China is staggering, and by the end of 2013, China's Internet users reached 618 million, more than 250 million people in the United States. In 2014, Chinese smartphone users were expected to break 500 million. This makes web based businesses attractive, and the popularity of China's internet giant Baidu, Alibaba and Tencent soared.

In order to encourage college graduates to start a business, IDG set up a 100 million dollar fund 3 months ago, the fund mainly for the first-time entrepreneurs. In addition, technology companies have acted. Xu Yuncheng, IBM's strategic director for Greater China, said the company has donated 100 Chinese universities to promote technology-related education and is actively looking for new businesses to fund and collaborate with. "Everyone can be a partner now," she said. It's not just about venture capital, it's about the growth and development of startups. ”

With the increase of opportunities, overseas students also said they would like to set up a company in return. Jiayi, a graduate of Harvard Business School, returned home to set up a green Apple health company in Shanghai after graduating, and its mobile service provided appointments, prescription arrangements for doctors and patients. The application was quickly funded and successfully replicated. Jiayi said: "This is the best time to start a business, mobile health is very active in the field, venture capitalists are very concerned about." "Industry watchers predict there will be more high-tech companies in China than in the US in the future."

Industry insiders said that while China's technology companies are mainly focused on domestic development, but overseas markets have a strong attraction, over time, many companies will begin to intensify global expansion over the next decade. He also predicts that as Alibaba and Sina Weibo are listed in the U.S., more and more Chinese companies will be listed overseas.