China's Tech Leaders Highlight Healthcare Priorities at Two Sessions: Focus on AI, IoT, Greater Bay Area, and Aging Society
During the Two Sessions, healthcare and medical issues garnered significant attention. Not only did Premier Li Keqiang’s Government Work Report place a strong emphasis on healthcare-related matters（ “Key Points from the 2019 Government Work Report: Summary of Healthcare and Medical Industry Content”）， Moreover, internet tycoons and investors have also elaborated on these points in their respective proposals.
The proposals addressing health-related issues were submitted by Tencent’s Ma Huateng, Sequoia Capital Global Executive Partner Shen Nanpeng, Baidu CEO Li Yanhong, NetEase’s Ding Lei, Xiaomi’s Lei Jun, Lenovo Group Chairman and CEO Yang Yuanqing, 58.com CEO Yao Jinbo, and Qihoo 360’s Zhou Hongyi.
Overall, the topics mentioned by these industry leaders include the Guangdong-Hong Kong-Macao Greater Bay Area, 5G, artificial intelligence, the Internet of Things, boosting fertility rates, elderly care, security, technology, and finance.
Recently, the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area was officially released. Ma Huateng, a deputy to the 12th and 13th National People's Congress, also put forward relevant proposals, aiming to build the Guangdong-Hong Kong-Macao Greater Bay Area into an international science and technology innovation hub with global influence. In fact, over the past two years, Ma Huateng has continuously offered suggestions on the development of the Guangdong-Hong Kong-Macao Greater Bay Area.
As an entrepreneur who grew up in the Guangdong-Hong Kong-Macao Greater Bay Area, Ma Huateng has consistently focused on and promoted the development of the region. Following his consecutive policy recommendations at the Two Sessions in 2017 and 2018,This year, he also submitted the “Proposal on Comprehensively Leveraging Regional Core Advantages to Accelerate the Development of the Guangdong-Hong Kong-Macao Greater Bay Area,” expressing the hope that the development of the Guangdong-Hong Kong-Macao Greater Bay Area will continue to be grounded in reality, highlighting the new features of “market-led, digitally supported, globally oriented, and diverse coexistence,” and putting forward four specific recommendations:
First, better leverage the Greater Bay Area’s advantages as an open gateway to cultivate a cluster of headquarters economies in the region.Attract more high-quality enterprises to establish their headquarters in the Greater Bay Area, deepen technological cooperation between Hong Kong and Shenzhen, support Macao’s diversified development through greater openness, and strengthen collaboration between the Greater Bay Area and the Pan-Pearl River Delta region.
Second, better leverage the advantages of internet technology to promote the comprehensive upgrading of the Greater Bay Area's industrial chain.Establish a “Bay Area Development Bank” with fintech as its distinguishing feature, to promote the integrated upgrading of manufacturing, enhance the development efficiency of modern service industries, and foster digital cultural industries oriented toward global markets.
Third, better unleash the potential of high-end talents and accelerate the research and introduction of the "Bay Area Elite Talent Program."Integrate various talent policies within the Greater Bay Area, explore the establishment of a “Bay Area University,” and strengthen exchanges and cooperation among young people in the region.
Fourth, better leverage the decisive role of the market and enhance the level of participation by entrepreneurs and all sectors of society.Establish a decision-making advisory body for the Greater Bay Area with broad representation; accelerate the development of a digital government in the Greater Bay Area to create a world-class business environment; continuously stimulate the vitality of new economic formats; and cultivate entrepreneurship with distinct characteristics of the Greater Bay Area.
As the only member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) from China’s venture capital industry, Neil Shen, Global Executive Partner of Sequoia Capital, submitted multiple proposals at this year’s Two Sessions. These included proposals on establishing a pilot program for the secure and fluid cross-border flow of financial data in the Greater Bay Area, and on incentivizing non-governmental entities to jointly promote the development of basic scientific research.
Shen Nanpeng believes that there are significant barriers to data flow within the Guangdong-Hong Kong-Macao Greater Bay Area. Achieving sufficient data mobility under the “One Country, Two Systems” framework in the Greater Bay Area faces numerous challenges, particularly concerning cross-border data security. This necessitates innovation in data security technologies and data governance models. As both aspects require specific scenarios for piloting and development, it is urgent to select pilot programs to take the lead in implementation.
This pilot initiative should possess the following characteristics: first, a high degree of informatization; second, large-scale data; third, significant economic and social impact on Guangdong, Hong Kong, and Macao; and fourth, controllable risks. The fintech industry holds distinct advantages over other sectors in the first three aspects. Therefore, it is recommended to prioritize lower-risk areas within this sector for the pilot, adopting a strategy of starting with easier tasks before tackling more difficult ones. For instance, initiatives could begin with fraud prevention and anti-money laundering efforts, enhancing financial risk regulatory capabilities through big data sharing. Given the unique nature of this industry, a successful pilot could have a substantial demonstration effect, serving as a breakthrough that facilitates progress across other fields.
Using fintech as a pilot initiative will yield multiple positive impacts, not only consolidating Hong Kong’s status as an international financial center but also enhancing the convenience of life for residents in the Greater Bay Area and driving development across various industries.
In this regard, Shen Nanpeng suggests:
1. Establish a joint task force as soon as possible.Due to significant policy differences among the three regions, a joint special task force must be established to facilitate collaboration and break down policy barriers in financial data security management across Guangdong, Hong Kong, and Macao. Its specific responsibilities include formulating relevant work agendas and policies, initiating projects, coordinating the development of data security standards and norms for the Greater Bay Area, and providing as many legal channels as possible to support reasonable and orderly pilot initiatives.
2. Select key fintech institutions as pilot implementation entities.The entities participating in the pilot program for cross-border data transfer are specialized institutions. These institutions are required not only to establish robust compliance frameworks to provide a legal foundation for cross-border financial services, but also to explore specific implementation methods for secure data transmission across various scenarios, ultimately formulating them into industry standards. Given the diversity of such institutions and their multifaceted business operations, a comprehensive rollout is inadvisable. Therefore, selected key institutions with substantial business volumes and strong risk control capabilities should serve as the initial pilot implementers.
3. Conduct data sharing under the CEPA framework as a specific pilot vehicle.The security boundaries touched upon by the fintech industry vary. Under the CEPA framework, where consensus has been reached among the three regions, we can identify data that can be prioritized for sharing. Specifically, efforts can focus on areas conducive to strengthening the development planning of the Greater Bay Area, resource allocation, prevention and control of financial risks, and optimization of emergency measures. For instance, support can be provided for Hong Kong to establish a “Know Your Customer (KYC) Center.”
KYC will include information on corporate clients transferred from mainland China to Hong Kong, which can be used for overseas compliance reviews by domestic enterprises, particularly those in the Greater Bay Area, when conducting international business.
Regarding 5G and the Internet of Things, Xiaomi’s Lei Jun submitted three proposals this year: “Proposal on Deploying 5G Applications and Promoting Innovative Development of the Internet of Things,” “Proposal on Enhancing Innovation Capacity and Vigorously Developing the Commercial Aerospace Industry,” and “Proposal on Further Deepening the Implementation of Information Accessibility Construction.”
First, it is recommended to proactively plan for 5G industrial applications and promote the innovative integration of 5G with the Internet of Things (IoT). Key initiatives include: accelerating the adoption of Industrial IoT to facilitate the intelligent transformation of factories; developing smart agriculture to support the implementation of the “Rural Revitalization” strategy; advancing autonomous driving and vehicle-to-everything (V2X) technologies to enhance transportation intelligence; and popularizing medical IoT applications to contribute to the “Healthy China” initiative.
In recent years, the Internet of Things (IoT), as a novel connectivity paradigm, has witnessed rapid advancement. According to IoT Analytics, the number of global IoT devices reached 7 billion in 2018; the number of active IoT devices is projected to rise to 10 billion by 2020 and further increase to 22 billion by 2025.
The global IoT industry scale grew from $50 billion in 2008 to nearly $151 billion in 2018. In China, the large-scale application of IoT is integrating with a new round of technological and industrial transformation. The "White Paper on the Development of China's 5G Industry and Applications in 2018" predicts that by 2025, the number of IoT connections in China will reach 5.38 billion, of which 5G IoT connections will account for 3.93 billion. According to relevant reports released by Qianzhan Industry Research Institute, it is estimated that by 2022, the market size of China's IoT industry will exceed 7.24 trillion yuan.
5G is the new engine of the digital economy. Its industrial applications are not limited to areas such as smartphones and base station construction; it will also drive the development of Internet of Things (IoT), blockchain, video-based social networking, and artificial intelligence products and applications. As 5G technology can meet the high requirements for network speed, stability, and latency in machine-type communications, massive-scale communications, and mission-critical communications, IoT application scenarios are extremely extensive. In particular, 5G is deeply integrated with industries such as connected vehicles, autonomous driving, ultra-high-definition video, and smart homes, and is further applied to manufacturing, agriculture, healthcare, security, and other fields, bringing new growth opportunities to various industries.
Currently, the development of the 5G industry still faces difficulties and challenges due to factors such as the incomplete construction of 5G infrastructure, unclear relevant standards, and insufficient 5G service and application resources. However, considering that 5G is a key area for future information infrastructure and technological competition among countries in the coming period, and has a strong driving effect on socio-economic development, it is recommended to plan ahead for 5G industrial applications and promote the innovative integration and development of 5G and the Internet of Things (IoT). Therefore, the following recommendations are proposed:
Global competition in manufacturing is driving factories toward intelligent transformation. As a key enabling technology connecting people, machines, and devices, the Internet of Things (IoT) has garnered significant attention from enterprises. For devices that generate small amounts of production data and are not latency-sensitive, existing connectivity technologies can meet their networking upgrade needs. However, traditional connectivity solutions fall short for devices that are latency-sensitive, require high reliability, or generate large volumes of production data. In such scenarios, 5G technology offers distinct advantages that effectively address industrial control requirements. It also provides manufacturers with remote control and data traffic management tools, enabling more efficient and intelligent management of large-scale device deployments, as well as over-the-air software updates via wireless networks.
It is recommended that the state increase fiscal, tax, and financial support for key areas such as high-end equipment, intelligent manufacturing, and the Industrial Internet of Things (IIoT). Central and local industrial investment funds, along with social capital, should be guided to carry out vertical transformations around the upstream and downstream sectors of large manufacturing enterprises. Efforts should be strengthened in the research and development of major technologies—such as automated production lines and unmanned factories—and in the commercialization of technological achievements, thereby creating a virtual industrial closed loop to enhance industrial production efficiency and overall international competitiveness.
The Internet of Things (IoT) technology has extensive application potential in the healthcare industry. In terms of patient services, Location-Based Services (LBS) can be employed to enable intelligent triage and optimize clinical workflows, while wearable sensors and service solutions can facilitate remote care. Regarding equipment quality assurance, specialized sensors can be utilized to monitor device usage, allowing predictive maintenance to address potential issues in critical medical equipment and thereby enhance the equipment operation and maintenance system. For environmental monitoring, sensors can be deployed to monitor and provide early warnings for special areas such as Intensive Care Units (ICUs) and operating rooms. Meanwhile, based on health big data covering the entire continuum of medical care, it is particularly urgent to refine data standards under robust security safeguards and improve the comprehensive utilization of integrated data networks.
It is recommended that relevant national authorities gradually promote the application of 5G technology in the healthcare sector, accelerate the improvement of standards related to the Medical Internet of Things (IoMT) and health big data, formulate industry standards for intelligent medical wearable devices and their supporting information platforms, and introduce incentive policies to encourage IoT enterprises to invest in scientific research and application development within the medical field. These measures aim to facilitate the integrated innovation and convergent application of technologies such as cloud computing, artificial intelligence, virtual/augmented reality, the Internet of Things, and blockchain in the healthcare industry, thereby meeting the people’s growing new demands for health and medical services.
Artificial Intelligence of Things (AIoT) has emerged as a new growth frontier in the information industry. China has built the world’s largest consumer-grade IoT platform, leading globally in the number of connected smart devices. By leveraging the synergy between AIoT and smart hardware, the cost for people with disabilities and the elderly to access the information society can be significantly reduced. For instance, individuals with visual or physical impairments can use voice interaction via smart speakers to conveniently perform tasks such as activating robot vacuums, turning on air conditioners, and accessing text, image, audio, and video content.
It is recommended to unify data and exchange standards for elderly care, enabling smart hardware manufacturers to develop products based on these standards, thereby advancing the construction of a nationwide interconnected big data network for elderly care in China.
In the “Proposal on Accelerating the Development of the Industrial Internet to Promote High-Quality Development of the Real Economy,” Ma Huateng recommended vigorously advancing the construction of information infrastructure, solidifying the foundation for the development of the industrial internet, and accelerating the comprehensive commercial deployment of 5G and IPv6.; promote the innovative development of cloud computing, encourage the accelerated growth of various cloud platforms—including industrial cloud, financial cloud, government cloud, healthcare cloud, education cloud, and transportation cloud—and accelerate the digital transformation of the real economy.
Baidu CEO Robin Li, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), addressed three key areas in his proposal: strengthening ethical research on artificial intelligence, establishing an online management system for electronic medical records, and developing intelligent transportation solutions.
Turning to artificial intelligence, he believes that AI technology has advanced rapidly in recent years. It is essential to establish regulations and engage in proactive foresight at an early stage to steer AI away from undesirable trajectories.
Regarding electronic medical records (EMRs), data in the healthcare sector lacks standardization, and EMR data is not shared effectively. It is hoped that the state will establish relevant standards to facilitate unified, standardized, and orderly data opening and exchange while safeguarding patient privacy.
Yang Yuanqing, Chairman and CEO of Lenovo Group, put forward several proposals centered on artificial intelligence (AI), the Internet of Things (IoT), and the high-quality development of the manufacturing sector. These include promoting the deep integration of AI and the internet, advancing the high-quality development of China’s manufacturing industry, and creating efficiency dividends. Mr. Yang’s key recommendations are as follows:
First, vigorously enhance the core competitiveness of the manufacturing industry and promote its high-quality development. Efforts should be made to improve the development level of China’s manufacturing sector by accelerating the intelligent transformation across all links of the domestic manufacturing value chain, establishing and refining high-standard quality supervision systems, and building Chinese brands with global influence. Strengthen quality improvement in the era of “Intelligence Plus” and accelerate the construction of a quality powerhouse.
Second, develop the Intelligent Internet of Things (IIoT), revolutionize production technologies, and enhance the productivity of traditional industries. Create efficiency dividends, strengthen policy support for the IIoT industry, and refine standards for implementation. Strengthen the development of benchmark IIoT cases and promote the replication of proven experiences from pilot projects to broader applications.
Committee Member Ding Lei believes that the momentum for optimizing and upgrading China’s economic structure is now evident, and that deepening the integration of “Internet Plus Advanced Manufacturing” can effectively promote high-quality economic development.We should proactively leverage artificial intelligence and big data to understand user needs and optimize production, thereby advancing Chinese manufacturing toward intelligence, high-end development, and market orientation. NetEase Yanxuan represents an active practice in promoting supply-side structural reform; it has reshaped and transformed industrial chain processes, shortened the link between production and sales, improved supply quality, and set benchmarks for quality and service standards in the e-commerce industry. Ding Lei believes that there is still substantial room for deeper integration between “Internet Plus” and advanced manufacturing, expressing hope to facilitate more high-quality “Made in China” products in serving “Chinese consumption.”
Zhou Hongyi submitted four proposals focused on cybersecurity, the most critical of which calls for state support to foster collaboration between state-owned and private enterprises in promoting the interconnectivity of a national-level cybersecurity brain.
Today, the entire world faces threats from cybercrime and cyberterrorism. With the development of Internet of Things (IoT) communications, cyberattacks have inflicted significant damage on critical infrastructure and social stability.
Amid the increasingly severe landscape of cyber offense and defense, Zhou Hongyi believes that the only way to address and detect unknown cyberattacks against China is to integrate big data from across cyberspace.
In this regard,Ma Huateng also proposed that robust security safeguards should be implemented for the industrial internet, and a multi-stakeholder collaborative governance mechanism involving government, enterprises, and service providers should be established. Furthermore, international exchanges and cooperation should be actively pursued to promote the development of an open world economy.
Yao Jinbo, CEO of 58.com and a deputy to the National People's Congress, submitted three written proposals to this year’s Two Sessions., including “reducing labor costs and promoting employment absorption by small and medium-sized enterprises,” “addressing shortcomings in the rental housing market to meet the housing needs of new urban residents,” “"Hot topics such as 'taking multiple measures to boost the fertility rate.'"
Following the relaxation of the one-child policy to allow two children per family in 2016, birth rates continued to decline in 2017 and 2018. In the long term, fertility rates and the proportion of young people in the population will significantly influence future aging trends, the employment landscape, and the sustained momentum of China’s social development.
Yao Jinbo suggested that families having a second child should be granted individual income tax reductions or living subsidies. Currently, the state mainly provides tax benefits to families with children through special additional deductions for children's education in individual income tax. For families with children aged 3 and above, a monthly deduction of RMB 1,000 per child is allowed from taxable income. However, the actual effect of tax reduction is not significant.It is recommended that for two-child families with incomes above the individual income tax threshold, a direct monthly individual income tax reduction of 1,000 yuan per child be implemented (if the actual tax liability is less than 1,000 yuan, the exemption shall be applied based on the actual amount paid), so as to alleviate the economic burden on two-child families to the greatest extent possible.
He further recommended prioritizing the resolution of shortages in educational resources and gradually making preschool education compulsory. Currently, China faces a relative scarcity of preschool educational resources, with certain regions experiencing difficulties characterized by high costs and limited access to kindergarten enrollment. He suggested that the government, adhering to the principles of inclusiveness and public welfare, should vigorously expand the construction of public kindergartens while encouraging non-state actors to establish schools through national fiscal subsidies. This approach aims to increase the supply of preschool educational resources and gradually incorporate preschool education into the framework of compulsory education. Specifically, he proposed a phased rollout to universalize one- or two-year compulsory preschool education across localities, with three-year compulsory preschool education being implemented in regions where conditions permit.
Finally, Yao Jinbo proposed abolishing the regulations on levying social maintenance fees to effectively implement policies encouraging childbirth. Amid the continued decline in fertility rates, he suggested that institutions such as the National Health Commission take the lead in coordinating with local relevant departments to gradually eliminate provisions like social maintenance fees across various regions. This approach should involve comprehensive assessments and location-specific measures to fundamentally prevent conflicts between local law enforcement and national policy directions, thereby demonstrating policy goodwill and further encouraging childbirth.