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 | Tuesday, April 25, 2000, updated at 13:20(GMT+8) | ||||||||||||
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Nation Faces Challenges of New EconomyThe knowledge economy will be crucial to China's development in the 21st century and more attention should be paid to its development, said a top legislator at the China Economic Forum held in Beijing on April 23.Though still in the initial stages of development, the knowledge economy is going to have a great impact on the country's science and technology, education, enterprise management and society in general, said Cheng Siwei, vice-chairman of the Standing Committee of the National People's Congress. Unlike the capital-based industrial economy, the new economy is based on knowledge and powered by science and technology, according to experts at the forum, which was organized by the Chinese Academy of Social Sciences. The rapid development of the knowledge economy in Western countries has substantially enlarged the gap between rich and poor countries over recent years, he said. "The coming knowledge economy age may make it more difficult for China to raise its economy to the level of moderately developed country by the middle of the next century," said Cheng. Knowledge-based technological innovation will help forerunners to gain a significant competitive edge in the global market, Cheng said. Therefore, to promote the development of knowledge economy in China, venture capital funds should play a more important role in boosting high-tech industries, stressed the legislator. The government should also allow more companies to issue stocks and stock options, suggested Cheng. China has made remarkable economic progress over the past two decades of reform and opening up, but most domestic enterprises' capability for technological innovation remains low, said Chen Jiagui, vice-president of the Chinese Academy of Social Sciences.
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