Xiaoying Dong · Yanni Hu  Weidong Yin · Estela Kuo Zhongguancun Model: Driving the Dual Engines of Science & Technology and Capital Zhongguancun Model: Driving the Dual Engines of Science & Technology and Capital Xiaoying Dong Yanni Hu Weidong Yin Estela Kuo • • Zhongguancun Model: Driving the Dual Engines of Science & Technology and Capital 123 Xiaoying Dong Guanghua School of Management Peking University Beijing, China Weidong Yin Zhongguancun Listed Companies Association Beijing, China Yanni Hu Guanghua School of Management Peking University Beijing, China Estela Kuo Zhongguancun Listed Companies Association Beijing, China ISBN 978-981-13-2266-2 ISBN 978-981-13-2267-9 https://doi.org/10.1007/978-981-13-2267-9 (eBook) Jointly published with Peking University Press, Beijing, China The print edition is not for sale in China Mainland Customers from China Mainland please order the print book from: Peking University Press Library of Congress Control Number: 2018952901 © Peking University Press and Springer Nature Singapore Pte Ltd 2019 This work is subject to copyright All rights are reserved by the Publishers, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publishers, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publishers nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publishers remains neutral with regard to jurisdictional claims in published maps and institutional affiliations This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore Foreword I In 2012, while riding the high-speed train to Nanjing, Yin Weidong and I discussed a report analyzing the overall statistics of 198 Zhongguancun listed companies (ZLCs): I found the report quite surprising In the past, discussions about Zhongguancun focused heavily on its emerging tech companies and their innovations Although ZLCs’ total market capitalization had already reached 1.3 trillion RMB at that time, there was a lack of data and integrated information on these companies Subsequently, Yin Weidong and I sat down with a number of officials at China Securities Regulatory Commission, China Investment Securities, and other relevant institutions to discuss Zhongguancun and its exciting achievements These meetings eventually led to an annual paper, Competitiveness Report of Zhongguancun Listed Companies, which provides an independent review of the latest Zhongguancun developments The innovation-driven development strategy, which was proposed at the 18th CPC National Congress, emphasizes the importance of scientific and technological innovation in strategic support At present, during this critical time for China’s economic transformation, scientific and technological innovation has become an important driving force for the transformation mode of the country’s economic growth As Kang Youwei said, “adopt new thoughts and technology for self-improvement, abandon old routines for the society’s development.” Scientific and technological innovation is an expectation for China moving forward and is being promoted at all levels of government and the public sphere; it is also the mission of companies and entrepreneurs in Zhongguancun Mass entrepreneurship and innovation is one of the important engines of China’s economic development As China’s leading innovators, ZLCs shoulder an important responsibility As of 2015, ZLCs’ total market capitalization exceeded the 4.8 trillion RMB, its net investment reached 200 billion RMB, and its research and development input exceeded 80 billion RMB This significant amount of capital fully demonstrates that technological innovation can drive economic development In fact, the scale that ZLCs have achieved is inseparable from China’s overall emphasis on innovation As the first national independent innovation demonstration zone, Zhongguancun bears an important historical function and also creates a good v vi Foreword I environment for innovation and entrepreneurship This ecosystem is inseparable from the innate characteristics of ZLCs as companies that remain steadfast when faced with hardships and the success and failures of start-ups When we first founded Lenovo, we met a lot of uncertainties; in fact, we were only certain about one thing: entrepreneurship is tough Thirty years later, Lenovo has carved out a way for high-tech industrialization; further, it is a Zhongguancun listed company and a member of the Fortune Global 500 In 2015, we (refer to the founders of Lenovo including Liu Chuanzhi) pushed Lenovo to the capital market, thus providing investment services for technological innovation In fact, many of Legend Holdings’ investments are in Zhongguancun companies Lenovo is a real start-up company with rich history Similarly, most ZLCs are also blazing the path of entrepreneurial innovation We are glad to see the number of ZLCs increasing year by year At present, there are more than 200 domestic listed companies and over 100 overseas listed companies, such as Baidu, BOE, and Lenovo Scientific and technological innovation has no geographical limitations; Zhongguancun does not only belong to Beijing or China, but rather it belongs to the world We have seen the increasingly rapid pace of Zhongguancun’s internationalization, and, in some areas, we are consistently narrowing the gap with competitors and reaching global leading standards In particular, President Xi Jinping has identified strategies, such as the Belt and Road Initiative and the coordinated development of Beijing, Tianjin, and Hebei Province, which provides future direction for Zhongguancun companies and offers them unlimited possibilities for future development Technological innovations have brought about disruptive changes to industry and even to the society as a whole When it comes to scientific and technological innovation in China, Zhongguancun is the first entity that comes to mind One must observe ZLCs to understand sci-tech, innovation-oriented enterprises Zhongguancun Model: Driving the Dual Engines of Science & Technology and Capital analyzes the overall situation and presents typical case studies of ZLCs over the past five years I hope this book can help you understand Zhongguancun It is my hope that in the next five years, Zhongguancun’s total market capitalization doubles and its new model will be even greater! Beijing, China September 2017 Mr Liu Chuanzhi Chairman of Legend Holdings Foreword II We are in a great era marked by change, creation, and uncertainty For enterprises, this era presents both great challenges and unlimited opportunities Generally speaking, this era has three important characteristics: First, the explosion of science and technology has caused dramatic changes in enterprises’ development models and in our way of life; second, global economic integration and development has led to a dynamic and constantly evolving global economic structure and competition; third, the interaction and competition between the fictitious and real economies has led to subversive innovation in market behavior In the face of these new characteristics, How should enterprises make strategic adjustments? How should they change their development path? How can they continue to drive innovation? I always say that there is commonality in the failure of enterprises, but successful enterprises are distinct So, the first thing we must address is preventing enterprises from making common mistakes that lead to failure Then, on this basis, we must continuously innovate and change, in order to promote the success of enterprises In order to achieve this end, enterprises must engage in learning and use learning as a source of inspiration and reference It is my belief that gaining insights from the experience and lessons of other enterprises is a very effective learning method Zhongguancun Model: Driving the Dual Engines of Science & Technology and Capital is an invaluable book It includes an overall data analysis of ZLCs and case studies from a variety of industries with detailed information and comprehensive analyses It is worth reading and is a great reference to macroeconomic researchers and entrepreneurs, as well as government officials and young scholars As the old Chinese proverb says, “Stones from other hills may serve to polish the jade of this one.” Beijing, China June 2017 Mr Xu Jinghong Chairman of Tsinghua Holdings vii Preface In a March 2009 investigation interview with Guo Jinlong, Mayor of Beijing, (Zhongguancun Science Park had just been approved as the first national innovation demonstration zone)1 he asked me: “In ten years from now, what would be the marker of Zhongguancun’s success? I answered: if Zhongguancun had produced ten more enterprises like Lenovo, then Zhongguancun would be considered successful Now, it has been less than ten years and Zhongguancun has produced more than ten listed enterprises with a market capitalization of over 50 billion RMB and dozens more enterprises with a market capitalization of over hundreds of billion RMB, such as Baidu and JD.com Zhongguancun high-tech enterprises have shown explosive growth; their scientific and technological innovations are remarkable, and countless scientific achievements have emerged Indeed, Zhongguancun is now a powerhouse of technological innovation At present, Zhongguancun has produced more than 20,000 enterprises As all of its enterprises focus on innovation, ZLCs demonstrate typical innovation-driven development As public companies, ZLCs have made fruitful achievements in the global capital market: In 2015, Zhongguancun’s total market capitalization reached 4.8 trillion RMB, net investment reached 20 billion RMB, and research and development input reached over billion RMB ZLC’s total market capitalization increased from 1.3 trillion RMB in 2011 to 4.8 trillion RMB in 2015, thus achieving over 50% growth for three consecutive years I think this remarkably rapid growth is primarily due to scientific and technological innovations In 2013, when the CPC Central Committee Political Bureau conducted a collective study on the implementation of innovation-driven development strategy, President Xi Jinping emphasized the importance of comprehending the global innovation-driven development trend and effectively implementing its strategy In the future, Zhongguancun should strengthen the implementation of innovation-driven development strategy and increase the speed of its efforts to establish a science and technology innovation center with global influence, in order to play a leading role in “Zhongguancun” mentioned below refers to Zhongguancun National Innovation Demonstration Zone ix x Preface implementing innovation-driven development strategy across the country President Xi’s speech encouraged many board members of listed companies to report on their business innovation The policies of the Party Central Committee have provided a new world for the rapid development of innovative technology-based enterprises in Zhongguancun In the transformation of China’s economy, Zhongguancun has pioneered a new economy, characterized by the Internet’s cross-border integration, innovation and economic sharing, and a new land to explore Statistics show that Zhongguancun’s contribution to Beijing’s economic growth increased from 17.9% in 2010 to 36.8% in 2015—accounting for nearly 40% of Beijing’s economic growth in 2015 Technological innovation drives economic development, and Zhongguancun’s innovation has become an engine of new economic growth in China How much displacement does this “engine” have? How much energy does it consume? How fast can this engine grow? Until now, there has been little to no literature on Zhongguancun that provides its readers with a comprehensive account and analysis of this innovative space As a scientific researcher specializing in bioscience, I have devoted my life to the research and development of vaccines for more than 30 years I formed my first team, started a business in Beijing, and finally established myself and the business in Zhongguancun as the Chairman of a listed company (NASDAQ: SVA) In 2012, I, along with dozens of other ZLCs’ Chairmen, established the Zhongguancun Listed Companies Association, and I have the fortune to serve as the association’s president for the past five years It is precisely because of my rich experience and dynamic identities as a researcher, entrepreneur, and president of an NPO that I have the understanding of the language and data needed to accurately describe the recent the development of Zhongguancun I hope that this book’s account, along with a wealth of data sets and graphs, provides people with a true understanding of Zhongguancun Each year, the Association’s research team publishes The Competitiveness Report of Zhongguancun Listed Companies, which is based on the financial data of listed companies We have found that the data sets have significantly changed over the past five years With the unique access to Zhongguancun’s data, I believe that it is imperative to conduct research and analysis on the Zhongguancun’s innovation phenomenon With this aim in mind, we collaborated with Dong Xiaoying, an Associate Professor at the Peking University, Guanghua School of Management, and his academic team in order to leverage the strengths of both parties in conducting the study The majority of the existing literature on research on development patterns and strategies focuses on macrofactors and variables; this book, however, draws from a large amount of basic data, takes 238 listed companies as the research object, and examines these high-tech enterprises, all of which are active in global capital markets, in order to provide a comprehensive overview of ZLCs’ development over the past five years through an objective account In addition, the research team also conducted a number of interviews and research During the study, the research team selected eight listed companies to serve as a typical case These companies, while not the largest or the fastest growing, they are an accurate representation of Preface xi Zhongguancun enterprises across a wide range of industries; they reflect and highlight the development of Zhongguancun’s science and technological trends Through the combination of quantitative research and qualitative descriptions, this book presents a thorough analysis based on the capital market valuation of enterprises, quantifies the contribution of science and technology innovation to the economy, and explores the circulation of R&D and human capital investment to the improvement of products and service levels to access to capital markets to the promotion of financing and finally to driving a new round of technology innovation investment In this book, Zhongguancun’s innovative ecology is explored; this innovative ecology has not only promoted the development of ZLCs over the past five years, but also continuously affects the operation of Zhongguancun This book plays a valuable role in sparking further discussion on Zhongguancun and will hopefully lead to increased research in this area Firstly, we hope to increase the number of experts that conduct research on Zhongguancun and analyze the development zone as a new economic engine with different research perspectives The increased research in this area will further the general understanding of Zhongguancun as a whole Secondly, we hope that this book will serve as a reference for all levels of government as they develop science and technology innovation strategies Zhongguancun is the first independent innovation demonstration area approved by the State Council Through this pilot, a number of innovation and entrepreneurship projects have taken root and blossomed; further, similar policies have been implemented in other national demonstration zones for the development of innovation In the process of development, which is driven by science and technology innovation, the Zhongguancun Administrative Committee has given its full support and a high degree of independence and freedom to its enterprises, thus forming the area’s unique innovation ecology We hope that such a model can be replicated Thirdly, we hope this book can serve as a “textbook” for Zhongguancun science and technology innovation-oriented enterprises and entrepreneurs Success or failure is never the only criterion in Zhongguancun; however, it is essential for enterprises to reflect and adjust its means of survival, as it moves forward in the tides of innovation and entrepreneurship To some extent, this book is also a textbook for Zhongguancun enterprises; through the book’s lens, they will be able to identify themselves and understand others in relation to the area’s five-year history of development Fourthly, we hope that more investors can understand and discern ZLCs’ distribution in various capital markets Zhongguancun has now become the most active venture capital zone in China, and venture capital investment has played an important role for ZLCs as they enter the capital market and increase in scale and size The book also allows investors to “diagnose” ZLC’s development prospects in relation to its historical trends, which are based on objective data, in order to refuel Zhongguancun technological innovation As an experimental mechanism of innovation and policy implementation in China, Zhongguancun, now with over 20 years of development, has grown into the first national independent innovation demonstration zone It has always been 322 Zhongguancun Model help to extend new creative networks In this process, creativity is more likely to be put into practice if the elements that support the realization of creativity are sufficiently ample and diverse; the network possesses strong reproduction ability and plasticity Therefore, in the process of innovation, a lack of regulations, or extensive regulations are both impracticable; a lack of purpose, or too much purpose are also both impracticable Rather, it is precisely a chaotic state that is most conducive to the creation of innovation, while self-reinforcing and self-defining ecologies are more likely to miss future major development opportunities In general, people tend to avoid chaos and uncertainty, and only those possessing foresight and courage are willing to face difficulty and risks External incentives, strategic patience and a culture of tolerance can give these people a positive and encouraging signal; chaos also contributes to the creation of a great enterprise, which is vital for the long-term prosperity and development of a region Entrepreneurs’ perspective The development of Zhongguancun listed companies proves that the Zhongguancun model is developed under the background of a slowing global economy and an uncertain environment for S&T innovation It is Zhongguancun that creates a new S&T innovation model with rapid economic growth This model is not a result of random collisions, but a strategic approach that has been realized In the future, the Zhongguancun model will play a greater role in China’s economic and social development Afterword In 2015, a joint delegation of Zhongguancun entrepreneurs and Guanghua professors visited Israel to investigate the country’s development of entrepreneurial innovation activities On the bus from Jerusalem to Tel Aviv, Yin Weidong, the president of Zhongguancun Listed Companies Association and chairman of Sinovac Biotech Co., Ltd., and Ms Guo Weiqiong, the secretary-general of Zhongguancun Listed Companies Association, discussed the possibility of future cooperative research Zhongguancun Listed Companies Association has published “The Competitiveness Report of Zhongguancun Listed Companies” for the past, five consecutive years; this report, in large part, illustrates ZLCs significant impact on society At that time, both Wei and Guo, hoped that a group of scholars could build on their report and conduct an in-depth analysis of ZLCs development over the past five years I have long been engaged in researching knowledge management and innovation in high-tech companies In fact, I previously wrote a paper on Cisco—a high-tech company based in Silicon Valley I addition, I have had a strong interest in ZLCs Therefore, I offered my help in taking on this project It was from that trip that we became excited about the idea for this book After returning home, under the leadership and coordination of chairman Yin Weidong and secretary general Guo Weiqiong, the project was formally established The book’s content focuses on ZLCs history, data, cases, facts and policy text; it strives to objectively illustrate the current atmosphere and its development over the past five years On this basis, we try to generalize the development paths and models of ZLCs and Zhongguancun’s innovation ecology To achieve this objective, we organized this book into three parts: (1) digital Zhongguancun, (2) business cases of ZLCs, and (3) Zhongguancun policies Through these three parts, we aim to present figures, cases and policies that illustrate Zhongguancun’s development On this basis, the research team systematically summarized and refined Zhongguancun’s innovative ecological elements and internal relationships We concluded that the “fountain model,” which was formed by multiple elements © Peking University Press and Springer Nature Singapore Pte Ltd 2019 X Dong et al., Zhongguancun Model: Driving the Dual Engines of Science & Technology and Capital, https://doi.org/10.1007/978-981-13-2267-9 323 324 Afterword in Zhongguancun’s innovation ecology, presented the key elements, paths, and patterns of the Zhongguancun’s innovation ecological development In order to ensure authenticity, reliability, and the scientific quality of the research, in the digital Zhongguancun section, we invited Ernst & Young accounting firm (special general partnership) to guide in reviewing ZLCs financial data We also invited Guanghua Prof Zhang Ran to review and comment on the results of the research and analysis, which were presented in “scholars’ perspective” section at the end of each chapter In the chapter on Zhongguancun policies, we interviewed Guo Hong, chairman of the Zhongguancun Bank and former director of ZhongguancunAdministrative Committee, Wang Rufang, the deputy director of the ZhongguancunAdministrative Committee, and Gao Li, Chen Hong, Wang Yangdan, and Xue Xiaoying from the Zhongguancun Listed Companies Association to contribute their thoughts, experience and expertise During the development of the case studies, with the thoughtful arrangements of secretary generals, Guo Weiqiong and Chen Hong, the research team conducted intensive interviews with key leaders and executives of eight ZLCs These interviews total nearly a million interview records The chairman and senior executives of the eight listed companies gave their strong support and close cooperation, thus resulting in fruitful interviews We sincerely thank them The research team formally started on May 6, 2016, and completed interviews related to case studies and the policy section in April 2017 With the team’s full cooperation and joint efforts, the entire manuscript was completed at the end of May 2017 The book is a crystallization of collective wisdom and efforts, high efficiency and order, as well as productive collaboration During the research and writing process, the project team held a total of 11 seminars, and conducted extensive discussion and debate on topic selection and data analysis, etc.; the staff even worked until am on several occasions as it revised the meeting reports During the writing process, Hu Yanni, a doctoral candidate, and Chen Hong, a member of the Zhongguancun Listed Companies Association, devoted a great deal of effort In particular, Chen Hong tirelessly researched and collected data throughout her pregnancy I believe her baby, Wang Lezhi, is proud of his mom’s work The following outlines the chapters and their respective authors: • Chapter 1: History of Zhongguancun was completed by Zhongguancun Listed Companies Association members Chen Hong and Guo Xiaoying; • Chapter 2: Digital Zhongguancun was completed by Hu Yanni, Chen Hong, Yin Weidong, Guo Weiqiong, and Dong Xiaoying; • Chapter 3: Cases of Zhongguancun was completed by the following individuals: associate professor of Guanghua School of Management at Peking University, Dong Xiaoying; Guanghua doctoral candidates Hu Yanni, Ye Lisha, Cheng Yue, and Jiang Han; associate professor of School of Information at Renmin University of China, Yu Yan; and lecturer of the School of Economics and Management of Beijing University of Posts and Telecommunications, Yan Mengling; Afterword 325 • Chapter 4: Policies of Zhongguancun was completed by Gao Li, Wang Yangdan, and Chen Hong; • Chapter 5: Zhongguancun Model was completed by Dong Xiaoying, Hu Yanni, and Yan Mengling; • The related domestic and international literature was conducted by Hu Yanni, Ye Lisha, Cheng Yue, Jiang Han, Zhao Zeyu, and Si Wen; • The references section was completed by Hu Yanni and Ye Lisha Despite our efforts, we are fully aware that Zhongguancun’s history of entrepreneurship and innovation is like an ocean There are still many hidden treasures that remain unknown, and a significant amount of outstanding companies and invisible champions that have not yet been discovered or comprehended Thus, there is still room for deepening and expanding our research and analysis of Zhongguancun We hope that through our research and analysis, more people will pay greater attention to Zhongguancun and seek to conduct further research and analysis As China’s “Wisdom Valley,” Zhongguancun represents entrepreneurship and innovation during China’s 40 years of Reform and Opening up; it has explored fertile ground for exploration by several generations of scientists, entrepreneurs, and managers It has pioneered an innovation path driven by science & technology and capital, thus creating a “fountain model” where enterprises, governments, research institutes, capital, and third-party agencies develop in coordination Zhongguancun’s managers and entrepreneurs have made outstanding contributions to the innovation practices of China’s S&T companies, development and prosperity of the regional innovation ecology, as well as to the promotion of China’s innovation competitiveness in the world History will truly remember them! – Prof Dong Xiaoying – Guanghua School of Management, Peking University – September 18, 2017 at Weiming Lake Postscript Cooperation between Machine and Human: How was The Zhongguancun Model translated from Chinese into English? Often referred as China’s Silicon Valley, Zhongguancun (Zhongguancun) attracts the attention of people with belief in innovation and technology all over China and even the world Last year, The Zhongguancun Model, the first book centering on Zhongguancunsince the 19th National Congress of the Communist Party of China was published, displaying achievements made in the park over the past three decades This year marks the 40th anniversary of China’s reform and opening up as well as the 30th birthday of Zhongguancun To celebrate the anniversary and also tell Zhongguancun’s stories outside China, we set it as our mission to translate this book into English This task was assigned to me on January 26, 2018 Initially, we did explore the traditional way, looking for a professional translator with proficiency in both Chinese and English But the complexity of the task itself has kept us from pushing ahead First, we need a qualified translator who have a certain understanding of the content of the book Maybe one person isn’t enough, we have to hire 2–3 professional translators The process will take at least half a year and there may be many changes during this period With that in mind, my curiosity about machine translation gave me a bold idea—why not try a machine translation system since artificial intelligence is such a buzz? Taking advantage of our understanding of the scientific and technological development of Zhongguancun, we started with a survey on all machine translation products that can be found, and selected Microsoft Translation Hub after assessment and evaluation Thanks to Ms Rachel Tsao, program manager at Microsoft China, Microsoft Research agreed to help us Their support is the key to the completion of this translation task This book was indeed translated in a novel way First, as a trial, we input several parts of every chapter into the machine translation system The five chapters of this book are in varied styles, such as data statistics, policy description, academic analysis and case study We found that the translation quality of these chapters is © Peking University Press and Springer Nature Singapore Pte Ltd 2019 X Dong et al., Zhongguancun Model: Driving the Dual Engines of Science & Technology and Capital, https://doi.org/10.1007/978-981-13-2267-9 327 328 Postscript also different After discussions with heads of Microsoft Research Department, further steps were taken to train the machine translation system: (1) build a corpus of terms and official English translations of policies mentioned in the book; (2) collect both parallel and monolingual documents as the testing data set to tune the system; (3) retranslate pictures that cannot be translated by the system and adjust formats Not until those were done did we input the whole book (about 184,000 Chinese characters) into the translation system In less than an hour, the machine-translated version of The Zhongguancun Model was produced It was then revised by six postgraduates of English major, Huang Qixia, Guo Ning, Ge Yufang, Wang Qingping, Zhang Shihui and Wu Meng The first round of revision lasted for three months, and the revised translation was sent to a native English-speaking translator, Cleopatra Kamara, for a second revision and proofreading It took Ms Kamara forty days to finish the work After that, Peking University Press is responsible for edition and publication From the revision, our translator team got to know better about the merits and demerits of machine translation First, in terms of speed, machine is undoubtedly superior to human With Microsoft’s translation system, the first draft of translation was generated within one hour We only needed revise and proofread it, which greatly improved our work efficiency Second, machine translation system can keep the formats of the translated document (such as size, typeface and color) Our translator team thus did not have to put much effort into adjusting the formats This brings great convenience The first English version translated by Microsoft’s translation system was very impressive Most of sections were well translated However, the quality is not ready for the officially release yet English and Chinese are two languages with a great many differences For example, English emphasizes the structure, while Chinese focuses on the meaning In English, a sentence must be complete, consisting of essential sentence elements, like subjects, verbs and objects, that can be clearly identified But we Chinese often say “get the meaning, forget the words.” The subject of a sentence in Chinese is often not clearly given but implied between lines Obviously, machines are not smart enough to know the difference nor add the missing subject Therefore, a large number of sentences in machine translation have to be completely rewritten by human translators, which is the greatest challenge during the first round of revision In addition, in Chinese, idioms, analogies, metaphors and short four characters expressions are very widely used to make the expression more vivid, live and compact Most of them are badly translated by the system Besides, the machine translation system also made lots of mistakes in translating terms, dates and units The original Chinese version of this book mentions many names of companies, government documents and departments in China, which not have official English translations nor appear in English news reports The system can only translate them word for word As for dates and units in this book, most of them were not correctly translated For instance, “2004年1月” (January Postscript 329 2014) was translated into “in 2014 year Month”; “亿” (100 million) was translated into “billion” Moreover, footnotes, superscript or subscript texts were all ignored by the system These problems are rather simple, and I believe they can be soon solved through upgrading and optimizing the system Machine translation left the labs to start being used for its actual purpose more and more In high quality bar industry, such as publication which has complicated translation activity and might also require domain knowledge and culture understanding Human editing is still very essential for translation work Trying the new method, we know more about the advantages and disadvantages of machine transition systems, which is definitely helpful for us to use and improve them In the end, we are expecting one day when machine translation can reach the same level as human translation Working in Zhongguancunand surrounded by all the top technology, who would have a better position to what we did! 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