A Plenary Luncheon was held at Liangjiang Hall A on the first day of the Global Automotive Forum. Gao Xiqing, Cheng Yu-tung Chair Professor, School of Law, Tshinghua University and Former President and Chief Investment Officer, China Investment Corporation, were the main speakers for the luncheon. The theme of the speech was “Innovation, Reform and Legal Society.” Gao put forward that innovation needs the protection of the law and an environment that protects fair competition.
Gao mentioned that the traditional “drive and control” role of driving has existed for more than ten years. With the development of electric and autonomous cars, this traditional role is drastically changing. With this change it is crucial to remember that innovation and economic development have an inseparable relationship with law. Innovation cannot be promoted without a sound legal environment. “If we want to accelerate innovation, we must accelerate the construction of our legal society.” Gao said that innovation is the most important part of industry development, however innovation without a sound legal environment is impossible.
Innovation drives development that is necessary for the Chinese economy. Competition and conflict brought by this transformation needs to be solved under a legal framework. As an important tool for governing the country, the law is fundamental in the county’s ability to manage and support itself. We need to pursue a development strategy in conjunction with the law, which is crucial for the Party to manage this development.
Gao also mentioned that state owned enterprises hold a significantly high percentage of the current domestic auto enterprises and the only way for these SOEs to innovate is to accelerate reform. The present over-protection policy in the SOE, in fact, slowed the pace of improvement. He postulated, “Only when we put SOE and private enterprises on a fair stage to compete can we promote and accelerate the development of SOE.”
The Global Automotive Forum 2016 was held in Chongqing Yuelai International Convention Center on June 6 and 7. The theme for GAF 2016 was: “Pivoting to a New Round of Development”. Hundreds of domestic and foreign experts gathered together to discuss the structural changes in the future of the auto industry.