00:01 Welcome,
00:03 everyone.
00:04 Uh,
00:05 my name is Milo Bianchi,
00:06 and I'm very pleased.
00:09 To have
00:10 today
00:11 John Gong,
00:12 Professor John Gong,
00:13 Vanessa Zhang,
00:14 and
00:15 Yi Jing Lee.
00:18 They will be talking about
00:20 from standard takers to standard makers,
00:22 the case of China and South Korea.
00:25 So this is part of the WDR 2025 seminar series.
00:30 And we are very happy to have them today because
00:33 a central part of the WDR
00:35 will be to show our country
00:37 transition from being
00:39 standard takers to standard makers
00:41 or the way we say it
00:43 from
00:43 adopting and adapting standards
00:46 to aligning them with international standards
00:49 to altering them.
00:52 So I think both China and South Korea
00:55 can provide very,
00:56 you know,
00:57 interesting examples of,
00:58 of this evolution.
01:00 And we are very honored to have
01:02 3 world experts on,
01:04 on these topics.
01:06 John Gong is professor of economics at
01:08 the University of International Business and Economics
01:12 and vice president of Research and strategy at
01:15 UIBE Israel.
01:18 He's also an expert in in patent litigation
01:22 and is also very active in media and dissemination event.
01:28 Doctor Vanessa Zhang is head of Greater China Practice
01:31 and executive vice vice president of Compass Lexicon,
01:35 and she's based in uh New York and,
01:38 and Beijing.
01:40 She
01:41 has a PhD in in in Toulouse.
01:43 We are very proud of having her as
01:45 as an alumni.
01:48 And she's also an expert
01:50 in competition policy.
01:52 And uh finally,
01:53 Doctor
01:54 Jing Lee is professor at the Graduate
01:56 School of International Studies at Yonsei University.
02:00 He has a PhD in information systems from the London School of Economics
02:04 and is is an expert in digitization and and South Korea in particular.
02:12 So the way we organize this,
02:14 we'll have 30 minutes
02:17 uh starting with Professor John Gong
02:19 and uh uh Doctor Vrea Zhang talking about China.
02:23 Uh,
02:24 then we'll move to the South Korean case
02:28 and then we'll have about half an hour for for questions.
02:33 So,
02:34 if you have any question,
02:35 please raise your hand.
02:36 We'll have
02:37 maybe just clarifying question during the presentation and
02:39 we'll leave the more substantive one for,
02:42 for the end.
02:44 Uh,
02:45 so thanks again for,
02:47 for being here.
02:47 Thanks in particular
02:49 to,
02:49 uh,
02:50 our friends in Asia.
02:51 For them it's a bit late.
02:53 Uh,
02:53 let's,
02:54 let's get started.
02:56 So the first presentation is China Evolution International Standardization
02:59 from Flower to Global Leader.
03:02 Please
03:03 Thank you so much,
03:04 Milo.
03:05 Thank you for your nice present uh introduction and
03:08 uh thank you everyone for attending this session.
03:10 I just want to,
03:11 uh,
03:12 kick off uh with our observations um
03:15 about the China's evolution in the international standardization process.
03:19 So,
03:19 our presentation will Uh,
03:21 have the three parts.
03:22 The first is economic,
03:24 uh,
03:24 resonances,
03:25 uh,
03:25 of this,
03:25 um,
03:27 institutional,
03:27 um,
03:28 setup of the standardization in China.
03:30 And the second is,
03:31 uh,
03:32 how does this,
03:33 uh,
03:33 give this,
03:34 um,
03:34 experience or,
03:35 you know,
03:36 some,
03:36 um.
03:37 Implications for the developing countries
03:40 in Asia.
03:41 And the third is the case study to investigate the 3
03:45 cases that may give you some um
03:48 insight how China arrived to its current status.
03:53 OK,
03:53 let's move on to the first slide,
03:54 please.
03:56 OK,
03:57 so China's standardization has three stage uh evolution.
04:00 The first stage is before 2000.
04:03 Uh,
04:03 in during this stage,
04:04 China is mainly the adopters of the international standards.
04:08 The second stage is uh between 2001 to 2014.
04:12 Uh,
04:13 this stage,
04:13 uh,
04:14 captures the,
04:14 uh,
04:15 the catching up of,
04:16 uh,
04:16 with the international or foreign standard setters.
04:19 And the third stage is after 2015.
04:22 Uh,
04:22 that's the,
04:23 um,
04:24 time period that,
04:25 um,
04:25 China becomes a global leader of the standard setting.
04:29 So,
04:29 during the first stage,
04:31 um,
04:31 China has the,
04:32 um.
04:33 Uh,
04:34 the milestone of the in the legal system
04:36 in 1988,
04:38 uh,
04:38 standardization law was,
04:40 uh,
04:41 released by the China,
04:42 uh,
04:42 People's Republic of China.
04:44 And during,
04:45 uh,
04:45 even before that date,
04:47 uh,
04:47 China actively participate in the international standards citing process.
04:53 In the 1957,
04:55 China joined IEC.
04:56 In the 1978,
04:58 China joined the ISO
04:59 and in 1980s,
05:00 China joined the VIPO.
05:02 So by the time of 2001,
05:05 uh China has the conversion rate from
05:07 the international standards to the national standards
05:10 of 38%.
05:13 But the most significant change happened during the second stage.
05:17 After joining WTO in 2001,
05:21 China has uh um established the SAC and CNCA
05:27 in 20 2001.
05:29 And um
05:30 uh also China has hold The 10 key positions um in the technical committees
05:36 of the ISO and IEC.
05:38 By the year of 2015,
05:40 the conversion rate has exceeded 80% in various industries
05:46 and contributes to the formulation of 182 international standards.
05:52 After 2015,
05:53 that that's um
05:55 another milestone uh stage that China has uh
05:59 translated to the market driven model uh and elevates international engagement.
06:05 And uh after 2015,
06:07 China becomes a leader of the international standards uh
06:10 standardization in various sectors and also
06:13 contribute to the the original standardization,
06:16 uh,
06:16 for example,
06:17 uh,
06:17 you know,
06:18 benefiting from this Belt and Road Initiatives.
06:22 Uh,
06:23 let's go to the next page,
06:25 please.
06:27 Um,
06:28 next one.
06:32 Oh,
06:32 OK.
06:33 So,
06:33 uh,
06:33 there is an increasing participation
06:35 in the international standardization organization.
06:38 So from this uh uh chart that you can see that there
06:41 is a rising share of the China secretaries in the ISO during the
06:46 2012 and 2022 time period.
06:50 The ISO secretaries hold by the Chinese,
06:53 the Chinese
06:54 officials
06:55 has increased from 51 to 76 during the 10 year time period.
07:00 And the experts appointed by the ISO has increased from 75 to 226.
07:06 And the members in
07:08 the ITU has increased from 16 in 2013
07:12 to 106 in 2022.
07:16 And more significantly,
07:18 uh Mr.
07:18 Zhao Houling becomes the first Chinese Secretary General of ITU
07:23 in 2014 and was re-elected in 2018.
07:28 So,
07:28 China's officials have played a significant role in the standard
07:33 setting organizations uh in the past um
07:35 10 years.
07:37 So,
07:37 let's move on to the next slide.
07:41 So,
07:41 China has also increased the,
07:44 uh,
07:44 has increased the contributions to the international standards citing
07:47 in the IEC international standards proposed and published by
07:52 China has increased from 62 to 2000 in 2012
07:57 to uh.
07:58 368 in 2021.
08:01 And um as of 2022,
08:05 the proposals for the ISO and IEC standards submitted by the
08:09 uh by China has reached
08:12 1,337.
08:15 And uh from this chart,
08:16 you can observe that China's PCT applications um
08:20 has reached 70
08:23 700 and 700
08:27 in global share has reached um
08:29 uh 25.6%
08:32 as of 2024.
08:34 So,
08:35 uh you can probably see that,
08:36 um,
08:36 during the past 30 years,
08:37 China has,
08:38 um,
08:39 you know,
08:39 moved from being a follower and participant of the exciting
08:44 and becomes the uh the leader of the standard citing um status.
08:49 So let's move on to the next page,
08:51 please.
08:53 By observing these uh statistics that you,
08:56 you probably have some question how China has achieved this current status.
09:00 Uh,
09:01 I would describe the China's uh standards uh standardization development model
09:05 as the following.
09:06 Uh,
09:07 it's a combination of the uh top down and bottom up approach.
09:12 Top down means there's a government uh
09:14 led or government guided uh standardization citing.
09:18 And also there is an industry and market driven standard citing as a bottom up.
09:24 Uh,
09:24 so,
09:24 if you look at the,
09:25 the left hand side of this charts that um China standardization system
09:31 has two parts.
09:33 The one part is the uh the government developed standard
09:37 that comes from the national standards,
09:40 the sector standards and the local standards.
09:43 So,
09:43 the national standards was um
09:45 supervised by the summer State Administration for market regulation.
09:51 It's a combination of both um mandatory and the voluntary standards.
09:56 And the sector standards was mainly uh driven by the industry uh ministries
10:02 and the local standards was driven by the uh the local government.
10:06 But that is the uh the government's developed uh standards.
10:10 That's one part from the government.
10:12 But there's also another part in parallel.
10:14 It's a market driven standards,
10:16 is combination of the association standards,
10:19 mainly by the industry associations,
10:21 and also the uh industry and enterprise standards by the uh
10:25 uh the enterprises.
10:28 So,
10:28 this dual uh role or the the dual system
10:32 um
10:32 really give the China the benefits of the government uh regulation
10:37 and the uh industry and the market efficiency.
10:41 So,
10:41 we call it the two parts uh mechanism,
10:43 that means that
10:45 um
10:46 as a whole,
10:47 that you have the regulatory um
10:50 Uh,
10:51 mandate from the government,
10:52 but you also have the flexibility of the the markets and
10:56 you can adjust the,
10:58 uh,
10:58 the industry standards and the,
11:00 the enterprise standards,
11:02 um,
11:02 by adopting,
11:03 uh,
11:04 you know,
11:04 different market conditions.
11:06 So,
11:07 uh,
11:07 besides thisd system,
11:09 um,
11:09 there's also other standards with uh,
11:11 you know,
11:11 for example,
11:12 with a higher technical requirements,
11:14 there's a mandatory national standards
11:16 as a side,
11:17 uh,
11:17 standards.
11:18 So,
11:18 next slide,
11:19 please.
11:23 So under this,
11:24 um,
11:25 System,
11:26 this,
11:27 uh,
11:27 as we can recall,
11:28 this uh combination of the top down and the bottom up,
11:31 uh,
11:32 uh system.
11:33 So,
11:33 we have observed uh a significant change in the composition of the standards.
11:38 Uh,
11:38 there are three major,
11:39 uh,
11:39 changes.
11:40 For example,
11:41 the first change is a reduction in the
11:43 mandatory national standards.
11:45 And the second change is the reduction in the government led standards.
11:50 Uh,
11:50 for example,
11:51 the government standard has um
11:53 decreased from the 25.54% in 2018
11:57 to 16.53% in 2023.
12:02 Um,
12:02 and there's uh the third,
12:04 um,
12:05 The third part is the rise of the market driven standards.
12:09 For example,
12:10 the association led standards has increased from 6.08% in 2018
12:18 to 27.57% in 2023.
12:23 Um,
12:23 next slide,
12:24 please.
12:27 Next one,
12:28 please.
12:34 Uh,
12:35 OK,
12:36 uh.
12:38 So,
12:38 if uh if we're looking at,
12:40 uh,
12:40 you know,
12:41 the um
12:42 different standards,
12:43 then uh
12:44 we understand why China has achieved this,
12:47 uh this result.
12:48 Um
12:49 if you can uh move on to the next slide,
12:51 Sandy.
12:54 OK,
12:54 great.
12:56 Uh,
12:56 so,
12:57 uh,
12:57 as we have described,
12:59 that the whole,
12:59 uh,
13:00 standardization,
13:01 uh,
13:01 model that has,
13:02 uh,
13:02 China has adopted,
13:04 um,
13:04 has the,
13:05 the two,
13:06 parts of the,
13:07 um,
13:07 the advantages.
13:09 Uh,
13:09 the first part is the mandatory national standard.
13:12 This,
13:12 uh,
13:12 mandatory national standard sets a safety floor
13:15 to make uh to make sure that uh all the standards will meet the safety
13:20 requirements.
13:21 But also there uh it has adopt the
13:23 Competing voluntary standards.
13:26 It's a market-driven
13:27 standard,
13:27 um,
13:28 which,
13:29 uh,
13:29 meets the,
13:30 the market volatility and the changes of market conditions.
13:34 Um,
13:34 so,
13:35 overall,
13:35 it has helped China achieve in this um dynamic innovation and the market efficiency
13:41 in this economy.
13:43 So,
13:44 uh,
13:44 there,
13:45 um,
13:46 uh,
13:46 there are 4,
13:48 characteristics from this,
13:49 uh,
13:50 standardization,
13:51 uh,
13:52 development model.
13:53 The first one is to enhance the transparency and the intensify the competition.
13:58 This whole system has,
13:59 um,
14:00 uh,
14:01 guaranteed that,
14:02 you know,
14:02 this firm signal uh and superior,
14:04 um,
14:05 Uh,
14:06 quality and innovation or the efficiency by adopting
14:09 the voluntary standards that give the um flexibility
14:13 in addition to this mandatory baseline.
14:15 And also it in foster the uh differentiations on
14:19 the technical merits and cost and users' needs.
14:22 Um,
14:23 the second characteristic is to reduce the monopoly risk.
14:27 And we understand that the standards always give
14:29 the uh certain level of the monopoly power to
14:32 the industry and also the enterprises.
14:34 Uh,
14:35 this
14:37 specific model,
14:38 uh,
14:38 will prevent outdated and inefficient monetary standards
14:43 from prevailing and due to the uh regulatory
14:45 uh delay and regulatory,
14:47 um,
14:48 uh,
14:48 protection.
14:49 And it also helped to curb the monopoly rent,
14:53 rent seeking and the technical locking.
14:56 And the third characteristic is the uh the market driven solutions.
15:01 Um,
15:01 the adopters of the standards can,
15:03 you know,
15:04 quickly shift to the superior
15:06 standards as they emerge and it has the,
15:08 the,
15:08 the efficiency,
15:09 uh,
15:10 you know,
15:11 it offered the efficiency to the enterprises to meet the,
15:14 the market needs.
15:16 And the market signal rather than the the regulatory
15:18 fat will be the determinant of the uh that's,
15:22 you know,
15:22 technical solutions will prevail.
15:24 So,
15:24 we leave it to the market rather than the government's choice.
15:28 And the the fourth characteristics is the stronger uh innovation.
15:33 So,
15:33 the firms um
15:35 are driven to innovate,
15:36 those they compete to innovate and to differentiate and
15:39 by introducing or adopting the leading voluntary standards.
15:43 So,
15:44 this mechanism is uh
15:46 uh flexible and also uh meet the,
15:49 the China's current uh economic um
15:52 uh uh situation.
15:54 So,
15:54 I think it's the decision that the government and the industry and the uh they,
16:00 they both um make the um
16:02 The,
16:03 the ultimate choice.
16:05 So,
16:05 now,
16:05 I will give the uh the floor to Professor Gong
16:08 and uh let him uh continue with our presentation.
16:15 Doctor Gong,
16:16 uh,
16:16 you are mute yourself.
16:20 You're muted.
16:25 Uh,
16:25 Doctor Gong,
16:27 Professor Gong?
16:29 You're muted
16:41 All right.
16:42 Now I,
16:42 I,
16:42 I think everybody can hear me.
16:44 Um,
16:45 thank you very much,
16:46 uh,
16:46 Vanessa.
16:46 Uh,
16:47 Sandy,
16:47 could you please move on to the next slide,
16:49 please?
16:53 We,
16:53 we are on to the next slide.
16:54 I will,
16:55 I will start talking about the,
16:56 the next slide,
16:57 um,
16:58 the,
16:58 uh,
16:59 um,
17:00 it,
17:00 it.
17:02 Sandy,
17:03 could you please move on to the next
17:04 slide?
17:14 Can,
17:14 can,
17:15 can people see my next slide?
17:19 Uh,
17:20 not yet,
17:21 no,
17:22 Sandy,
17:22 thank you.
17:26 All right,
17:27 OK.
17:28 All right,
17:28 so I,
17:28 I,
17:28 I'll start talking about this slide.
17:30 Um,
17:30 so we're talking about the China standard,
17:32 uh,
17:33 model,
17:33 um,
17:34 and,
17:34 um,
17:34 uh,
17:35 Vanessa,
17:35 uh,
17:36 touched upon a few very unique points of,
17:38 uh,
17:39 China's sort of a tiered,
17:41 uh,
17:41 standard system.
17:42 Uh,
17:42 I will talk about some other,
17:44 uh,
17:44 traits of the China development,
17:46 standard development model.
17:47 Uh,
17:47 one of the very interesting thing and very important thing,
17:50 of course,
17:50 regards the,
17:51 uh,
17:51 the,
17:51 the,
17:51 the,
17:52 the convergence.
17:52 A partial
17:53 convergence to the Western model.
17:55 Um,
17:55 you,
17:56 you know,
17:56 like everything in China,
17:57 you know,
17:57 we have a very special
17:59 characteristic,
18:00 uh,
18:01 as described as sort of a,
18:02 uh,
18:03 uh,
18:03 government's very important role,
18:05 uh,
18:05 so I think without exception,
18:07 uh,
18:07 in,
18:07 in this area,
18:08 uh,
18:08 there's also,
18:09 um,
18:10 sort of a,
18:10 a,
18:10 a,
18:11 a,
18:11 a,
18:11 a government land model,
18:13 um,
18:14 previously to a more collaborative government plus market
18:18 approach,
18:18 um.
18:19 So,
18:19 um,
18:20 you know,
18:20 the public-private cooperation and the government coordination has
18:23 been going on for some time as,
18:25 uh,
18:26 um,
18:26 you know,
18:26 China's economy develops,
18:28 as,
18:28 as,
18:28 as the industry develops,
18:29 as also the,
18:30 uh,
18:30 Chinese companies has grown.
18:32 The,
18:32 the standard technical committees and,
18:34 and,
18:34 and,
18:35 you know,
18:35 working groups developed standards with the,
18:37 uh,
18:37 involvement of government agencies,
18:39 uh,
18:40 state-owned research institutes,
18:42 and,
18:42 and private firms.
18:44 Uh,
18:44 now,
18:44 this This is actually a very interesting example,
18:46 you know,
18:46 I list in this slide.
18:48 It is MMIT,
18:50 uh,
18:50 you know,
18:51 very unique role in coordinating,
18:53 uh,
18:53 the development of,
18:54 um,
18:55 so pre-standard standards,
18:57 uh,
18:57 in China before they,
18:59 this,
18:59 this standard proposals being
19:01 sent to,
19:01 um,
19:02 the standard,
19:02 the international,
19:04 the global standard-setting bodies,
19:06 um,
19:07 uh,
19:07 you know,
19:07 proposed by various companies from China.
19:10 Um.
19:11 MIT is the ministry in China that regulates the telecom industry.
19:15 Part of the job is to regulate the telecom industry.
19:17 It's established the 6G working group in June 2019.
19:22 Um,
19:22 participants include,
19:23 uh,
19:24 China's major telcos,
19:25 uh,
19:25 carriers,
19:26 uh,
19:26 universities and research bodies,
19:28 and of course,
19:29 also,
19:29 um,
19:30 uh,
19:31 uh,
19:31 uh,
19:31 companies,
19:32 uh,
19:32 uh,
19:33 Chinese companies as well as,
19:34 uh,
19:34 international companies.
19:35 I mean,
19:35 the idea is to sort of abuse.
19:37 Some consensus regarding
19:38 um the,
19:39 the proposals that will be sent to the 3GPP which is the uh standard
19:44 organization,
19:45 the global standardization
19:46 to set,
19:47 uh,
19:47 you know,
19:47 3G,
19:48 4G,
19:48 5G,
19:49 and,
19:49 and as well as 6G standards.
19:51 So,
19:51 clearly,
19:52 there is a,
19:52 a role played by the government
19:54 uh in terms of coordinating,
19:56 organizing,
19:57 um,
19:58 uh,
19:58 activities,
19:59 uh,
20:00 mostly within the
20:01 domain of Chinese companies.
20:04 Um,
20:05 so,
20:06 regarding the,
20:07 the,
20:07 the development towards sort of a
20:09 more market-driven standards setting uh process,
20:12 uh,
20:13 there are a couple of,
20:14 um,
20:15 uh.
20:16 You know,
20:16 milestones or,
20:17 or big events are listed on the right-hand side,
20:20 uh,
20:20 the association standards gain momentum,
20:22 uh,
20:23 in,
20:23 as,
20:23 as the minister's already said,
20:25 um,
20:26 association standards are mostly used
20:28 as sort of a,
20:29 um,
20:29 a higher,
20:30 as a display or demonstration of a,
20:32 uh,
20:33 higher bar met by,
20:35 uh,
20:35 companies.
20:36 So,
20:36 you know,
20:36 you can interpret this even as a uh sort of advertising or marketing
20:40 uh tool to send a signal to the market that we are a better products,
20:45 we offer better products.
20:46 Um,
20:47 so,
20:47 uh,
20:48 you know,
20:48 this is widely used in China,
20:50 um,
20:51 and,
20:51 uh,
20:52 um,
20:53 you know,
20:53 this is an interesting,
20:54 uh,
20:54 uh,
20:55 development.
20:56 Um,
20:57 enterprise standards also gained a global influence,
21:00 um,
21:00 you know,
21:01 7,000 75,000 2050 enterprise standards developed in 2024,
21:06 um,
21:06 and,
21:07 uh,
21:07 uh,
21:08 uh,
21:08 and,
21:08 and Chinese companies are,
21:10 you know,
21:11 increasingly
21:12 participating,
21:13 uh,
21:13 in,
21:14 um,
21:14 international
21:15 standard,
21:16 uh,
21:16 setting.
21:17 Uh,
21:18 Chinese enterprises are participating in 5200.
21:21 67 international standards in
21:23 2024,
21:25 uh,
21:25 a marked increase
21:27 over
21:27 the last
21:28 two or three years.
21:29 Uh,
21:30 I will talk about the telecom example later on,
21:32 which is a remarkable
21:34 success of uh
21:36 Chinese companies,
21:37 um,
21:38 uh,
21:39 they're expanding overseas as well as they're expanding overseas,
21:42 uh,
21:42 in a space of,
21:44 uh,
21:44 standard setting.
21:46 Next page,
21:46 please.
21:49 Um,
21:52 The,
21:53 uh,
21:53 another interesting,
21:55 um,
21:55 phenomenon of the standard process history in China is that
21:59 we are more and more aligned with international standards,
22:02 uh,
22:02 in standardization.
22:05 Um,
22:05 our paper goes into,
22:06 you know,
22:06 development of,
22:06 uh,
22:07 uh,
22:07 uh,
22:08 several 3 stages,
22:09 uh,
22:09 in China's standard history.
22:11 Um,
22:11 and,
22:11 and the first.
22:12 This is the part of the first chapter,
22:14 the first period is mostly about essentially
22:17 introducing international standards
22:19 um and,
22:20 and adopting international standards and now we are
22:23 moving into an area where,
22:25 you know,
22:25 China is more of an international standard
22:27 contributor
22:28 as well as a promoter
22:30 of China's own standards internationally,
22:32 right?
22:33 Uh,
22:34 convergence with international standards to reduce
22:37 trade barriers and support,
22:38 uh,
22:38 global,
22:39 uh,
22:39 commerce.
22:40 Uh,
22:40 China is,
22:41 you know,
22:42 the world's largest trading nation,
22:43 you know,
22:43 we have the world's largest exports,
22:45 the second largest imports,
22:47 um,
22:48 so naturally,
22:49 uh,
22:49 you know,
22:49 we have an incentive,
22:51 self-incentive.
22:51 Incentive self-interest,
22:52 uh,
22:53 in complying and,
22:54 and converging with the uh international uh uh standards.
22:58 Conversion rate to 82% in 2023,
23:01 uh,
23:02 this promotes mutual recognition agreements to
23:04 reduce redundant certification and facilitate global
23:07 trade.
23:08 Um.
23:11 It's also quite interesting to see that,
23:14 you know,
23:14 China's standard setting,
23:16 standard uh establishing process is also
23:19 uh very much open to,
23:20 uh,
23:21 I'm,
23:21 I'm not done with the,
23:22 yeah,
23:22 yeah,
23:23 please stay here.
23:24 Uh uh not
23:25 just restricted to Chinese companies domestically,
23:27 um,
23:28 actively,
23:29 it also actively involves multinational stakeholders in the
23:32 standardization process as well.
23:34 Uh,
23:34 here's an example,
23:35 TC 260.
23:37 This is essentially a set of standards devoted to,
23:40 um,
23:41 information.
23:41 Security,
23:42 um,
23:42 and,
23:42 um,
23:43 you know,
23:43 interestingly,
23:44 this,
23:44 the process includes,
23:46 um,
23:46 research institutions,
23:47 private companies,
23:49 as well as international companies like IBM,
23:51 Intel,
23:52 uh,
23:52 uh,
23:53 a couple of,
23:53 uh,
23:53 uh,
23:54 foreign companies.
23:55 So,
23:55 uh,
23:55 you know,
23:56 this is,
23:56 uh,
23:56 uh,
23:57 an example,
23:58 a shining example in my view of how the
24:00 standard setting process domestically in China
24:03 is also participated by
24:05 foreign companies operating
24:07 in China,
24:08 uh,
24:08 especially I would say American companies actually.
24:11 Um,
24:14 And,
24:14 and,
24:15 and,
24:15 uh,
24:16 uh as I said,
24:16 uh,
24:17 you know,
24:17 China's also increasingly participating in international standards,
24:20 uh,
24:21 setting process.
24:22 Uh,
24:22 you know,
24:23 uh,
24:23 uh,
24:23 uh,
24:23 here's some examples,
24:24 1,333 international standards of,
24:27 uh,
24:28 ISO uh IEC led by Chinese experts,
24:31 um,
24:32 uh,
24:32 rising recognition of Chinese standards by.
24:35 International
24:36 standard-setting organizations,
24:38 um,
24:38 Chinese states have effectively become de
24:40 facto international standards in certain,
24:42 uh,
24:42 sectors.
24:43 I will talk about some examples later on,
24:45 particularly,
24:46 uh,
24:46 in the,
24:46 uh,
24:47 high-speed railway space.
24:48 Um,
24:49 you know,
24:49 this is a,
24:50 a fast development area,
24:52 developing area,
24:53 um,
24:53 and,
24:54 um,
24:54 you know,
24:54 with the rapid.
24:55 Uh,
24:56 build out of high-speed railway system in China,
24:59 as well as China's,
25:00 you know,
25:00 very aggressive expansion,
25:02 uh,
25:02 in helping other countries to build their high-speed railway infrastructure,
25:06 you know,
25:07 the standard also becomes more and more international and also internationalized
25:11 as well as getting more tractions among uh other countries.
25:15 Next,
25:15 next slide,
25:15 please.
25:20 Um,
25:20 accelerating the,
25:21 uh,
25:21 cooperation of regional standardization,
25:24 um.
25:25 I,
25:25 I,
25:25 the,
25:26 um,
25:26 you know,
25:27 today,
25:28 China is not just the,
25:29 uh,
25:29 you know,
25:29 very large,
25:30 world's largest trading nation,
25:31 it's also a
25:32 country that,
25:33 that see a lot of
25:35 outward foreign direct investment.
25:37 Chinese companies are increasingly going overseas,
25:39 they're becoming more and more
25:41 global or multinational companies,
25:43 um,
25:44 and,
25:44 and,
25:44 and,
25:45 and as a result,
25:46 the companies also see an interest of
25:48 sort of setting up standards,
25:50 help.
25:51 To set up standards with other
25:52 countries where they operate,
25:54 where they enter,
25:55 uh,
25:55 and,
25:56 and develop these standards and you know,
25:58 you can see that,
25:58 uh,
25:59 uh,
25:59 you know,
25:59 there's interest here that by uh promoting these standards,
26:03 uh,
26:03 Chinese companies certainly would have more,
26:06 um,
26:06 business opportunities.
26:08 Um,
26:09 so,
26:09 um,
26:10 uh,
26:10 you know,
26:10 uh,
26:11 one thing that I can,
26:13 uh,
26:13 go by without mentioning of course is the
26:15 China's Belt and Road Initiative.
26:17 Uh,
26:17 70,000 patents fiance by,
26:19 uh,
26:19 by China across 52,
26:21 Belt and Road,
26:22 uh,
26:22 countries between 2013
26:24 to 2023 is very large increase.
26:27 Um,
26:27 you know,
26:27 as China signs this kind of a cooperation agreements,
26:31 uh,
26:31 BII Belt and Road Initiative agreements,
26:34 uh,
26:34 more and more Chinese companies expanding into these countries
26:37 and,
26:38 and they help or,
26:38 or jointly,
26:39 uh,
26:40 develop standards in these countries,
26:42 right?
26:43 Um,
26:44 so,
26:44 uh,
26:44 this is what I mean by contribution to the,
26:46 you know,
26:46 regional standardization efforts.
26:48 Um,
26:49 China has developed 31,
26:51 uh,
26:51 sort of high-speed railway related UIC
26:54 railway,
26:54 uh,
26:55 standards,
26:55 uh,
26:55 with BI partner countries.
26:57 Um,
26:58 you know,
26:58 this is,
26:58 uh,
26:59 a part of the effort of the railway business expanding these countries,
27:03 uh,
27:03 supported aids railway,
27:05 uh,
27:05 cooperation projects,
27:06 um,
27:07 and,
27:07 and,
27:07 uh.
27:07 Uh,
27:08 you know,
27:08 one big project probably I've heard about in Asia is the,
27:11 is the China-Los railway,
27:13 um,
27:14 uh,
27:14 uh,
27:14 project.
27:15 This is a,
27:15 a resounding success.
27:17 Uh,
27:17 there might be some,
27:18 some controversies or some,
27:19 some debate about,
27:20 you know,
27:20 other railway projects,
27:21 but I think
27:22 when it comes to the China-Los railway,
27:24 uh,
27:25 you know,
27:25 the success is just resounding.
27:27 Laos is a,
27:28 uh,
27:28 as you know,
27:28 it's a landlocked country,
27:30 um,
27:30 uh,
27:30 you know,
27:31 uh,
27:31 as a The result of the
27:33 uh uh the,
27:34 this,
27:34 the buildout of this railway system,
27:36 uh,
27:36 trade has dramatically increased in Laos
27:39 and,
27:39 and tourism has poured into Laos.
27:41 It,
27:41 it's,
27:42 it's a system with,
27:43 it's a railway
27:44 project with both traffic and uh,
27:46 the passenger traffic as well as uh freight traffic uh uh railway system.
27:50 So this has,
27:50 you know,
27:51 there's no doubt that
27:52 it has greatly contributed to uh Lao's uh economic development.
27:56 As a matter of fact,
27:57 because of the success of Laos system,
27:59 uh,
27:59 Thailand,
28:00 you know,
28:01 immediately changed its mind
28:03 to,
28:03 um,
28:03 to initiate this project to,
28:05 uh,
28:06 connect with the Laos railways,
28:07 China-Laos railway system.
28:09 Uh,
28:09 they,
28:09 they're right now,
28:11 they're building a,
28:11 a,
28:12 a railway project between,
28:13 um,
28:14 Vanjiang,
28:14 which is,
28:15 uh,
28:15 um,
28:16 uh,
28:16 Lao's capital to,
28:17 uh,
28:18 Bangkok,
28:18 uh,
28:18 which is Thailand's capital.
28:21 Um,
28:23 and,
28:23 and,
28:23 and,
28:23 you know,
28:23 there's also,
28:24 you know,
28:24 some examples of,
28:25 uh,
28:26 energy and grid advancements,
28:27 uh,
28:28 standard
28:28 setting in,
28:29 in,
28:29 in these areas,
28:30 uh,
28:31 uh,
28:31 uh,
28:32 you know,
28:32 in other countries,
28:33 uh,
28:33 you know,
28:34 for example,
28:34 in solar,
28:35 in,
28:35 uh,
28:36 electric grids,
28:37 uh,
28:37 you know,
28:38 these things.
28:38 I won't get into too much detail about that.
28:40 Next slide,
28:40 please.
28:45 Um,
28:46 so,
28:46 uh,
28:46 I,
28:46 I want to,
28:47 uh,
28:47 uh,
28:48 talk a little bit about some lessons for,
28:51 uh,
28:51 uh,
28:51 developing countries,
28:52 developing economies,
28:53 especially,
28:54 I think,
28:54 you know,
28:54 the emerging markets,
28:56 uh,
28:56 economies,
28:57 um,
28:58 you know,
28:58 when it comes to,
28:58 uh,
28:59 the standard issue here.
29:00 Um,
29:01 I think the example,
29:02 uh,
29:02 I,
29:03 I mean,
29:03 I thought,
29:03 uh,
29:03 the,
29:04 uh,
29:04 the model here,
29:05 the government plus the market model,
29:07 uh,
29:07 has served China's economy very well.
29:10 It looks like.
29:10 Like a,
29:10 you know,
29:11 fairly successful
29:12 model,
29:13 um,
29:14 the,
29:14 this,
29:14 this,
29:15 you know,
29:15 collaboration between the government and the private,
29:17 uh,
29:18 uh,
29:18 indus enterprises,
29:19 the,
29:20 the market,
29:20 the government price coordination and support,
29:23 uh,
29:23 encouraging enterprises,
29:24 industry alliances,
29:26 um,
29:26 and,
29:27 uh,
29:27 academic bodies to participate in the development of standards.
29:30 This seems to be a,
29:31 a very good,
29:31 uh,
29:32 uh model.
29:32 Um,
29:33 and I wanna make a note here,
29:34 I mean,
29:34 this is actually a quite
29:35 noticeable.
29:36 difference from the American model if we,
29:38 you know,
29:39 if you know anything about the American model,
29:40 I mean,
29:41 standard setting business in the United States,
29:42 mostly private industry,
29:44 uh,
29:45 uh,
29:45 business,
29:46 uh,
29:46 but here in China,
29:47 uh,
29:48 the government does play its role,
29:50 uh,
29:50 more of a uh coordination support role,
29:53 um,
29:53 and,
29:53 and,
29:54 uh,
29:54 but,
29:54 but,
29:54 uh,
29:55 it's,
29:55 it's sort of a,
29:55 you know,
29:56 we don't have to argue about which model is better,
29:57 but I think,
29:58 you know,
29:58 it quite successful in both countries,
30:00 let me put it this way.
30:01 Um,
30:02 restrained use of compulsion,
30:04 um,
30:05 as Vanessa has explained,
30:06 we have a,
30:07 a tiered system of standards,
30:09 um,
30:09 you know,
30:10 there's some standards are mandatory,
30:11 uh,
30:11 uh,
30:11 a small set of a sort of minimum standard,
30:14 uh,
30:14 that,
30:14 uh,
30:15 you know,
30:15 companies have to meet,
30:16 uh,
30:16 and then you have,
30:17 uh,
30:17 you know,
30:18 other types of standards that are
30:20 sort of voluntary,
30:21 uh,
30:21 as a,
30:21 uh,
30:22 uh,
30:22 uh,
30:23 market signaling mechanism or,
30:25 or,
30:25 or some other means.
30:27 Uh,
30:27 to,
30:27 um,
30:28 um,
30:29 uh,
30:29 you know,
30:29 help companies,
30:30 but in the end,
30:31 I think it greatly
30:32 facilitates,
30:33 uh,
30:34 innovation,
30:35 um,
30:35 and,
30:36 and also in a sense also facilitates competition as well.
30:39 Um,
30:39 as you probably know,
30:40 I mean,
30:40 the,
30:41 the,
30:41 the Chinese market is,
30:42 is,
30:42 is,
30:42 uh,
30:43 is fiercely competitive,
30:44 um,
30:45 you know,
30:45 we,
30:46 when it comes to talking about competition,
30:48 uh,
30:48 in some other countries,
30:49 you know,
30:50 like United States and European Union,
30:52 uh.
30:52 Usually we're talking about competition among maybe
30:54 56,
30:55 maybe 10 companies,
30:56 uh,
30:57 but here in China,
30:58 we're talking about
30:59 3 digit number of companies,
31:00 you know,
31:00 100 companies competing in the market,
31:02 uh,
31:03 more than that.
31:03 Uh,
31:04 for example,
31:04 electric car business,
31:05 in,
31:05 in,
31:06 in
31:06 in automobile business,
31:07 we have more than 100 brands here in China.
31:10 Um,
31:10 so,
31:10 um,
31:11 you know,
31:11 standard is also very much used as a,
31:13 uh,
31:14 competition tool,
31:15 uh,
31:15 by,
31:16 uh,
31:16 uh,
31:16 many companies.
31:18 Um,
31:19 proactive global engagement and the dynamic efficiency,
31:22 I think,
31:23 you know,
31:23 this is an important issue when your economy becomes,
31:26 uh,
31:26 more advanced,
31:27 becomes more integrated into the,
31:30 the global system,
31:31 um,
31:32 you know,
31:32 there's more of an issue of
31:33 Promoting your own standards and
31:35 motivation of adopting international standards.
31:37 So,
31:37 uh,
31:38 uh,
31:38 this is one area I think,
31:39 uh,
31:39 you know,
31:40 Chinese companies have done
31:41 quite well in,
31:42 in the past 10 years or so,
31:44 and,
31:44 uh,
31:44 you know,
31:45 this is,
31:45 uh,
31:45 also a lesson that I was trying to recommend.
31:47 Next slide,
31:48 please.
31:50 So,
31:50 I will very briefly uh go through,
31:52 you know,
31:53 some examples of uh
31:54 uh uh successful standard stories uh in China.
31:58 Uh,
31:58 I,
31:59 I don't mean to brag about it,
32:00 but,
32:00 uh,
32:00 um,
32:01 you know,
32:01 these are,
32:02 you know,
32:02 quite,
32:03 quite interesting examples.
32:04 uh,
32:04 and obviously the examples I picked uh sort of manifest the
32:09 successful uh
32:11 uh story of,
32:12 uh,
32:12 you know,
32:13 related industries in that space.
32:15 So that's,
32:15 that's not surprising at all,
32:16 I would say.
32:17 Um,
32:17 so,
32:18 first example is the,
32:19 uh,
32:19 uh,
32:19 communications,
32:20 uh,
32:21 technology.
32:21 Um,
32:22 as you all know,
32:23 you know,
32:24 the,
32:24 the cellular,
32:24 uh,
32:25 telecommunication involves some
32:26 2G and then 3G 4G,
32:28 and we're currently in a,
32:30 in a 5G.
32:31 China's predominantly 5G right now.
32:33 Uh,
32:33 5G is widely being spreading out through the rest of the world
32:37 and now,
32:37 of course,
32:38 uh,
32:38 you know,
32:38 3GPP
32:39 is
32:40 Working on the 6G standard and,
32:42 and China is a,
32:43 is a big player in that space.
32:45 Um,
32:45 there's some statistics about,
32:47 um,
32:48 you know,
32:48 uh,
32:48 uh,
32:49 China's participation in this,
32:51 uh,
32:51 in this,
32:52 uh,
32:52 uh,
32:52 the SAN organization
32:54 and,
32:54 and,
32:54 and I wanna talk a little bit about this concept called SAP,
32:57 Standard Essential patterns.
32:58 These are
32:59 patterns essentially embedded in standards,
33:02 uh,
33:02 and the way,
33:03 and the reason we put this word.
33:05 Essential in it means that uh you know,
33:07 these standards cannot be
33:08 uh bypassed.
33:09 Uh,
33:10 these are standards that have to be invoked when you adopt the standard.
33:13 So these are,
33:14 you know,
33:15 standards that you have to pay for essentially,
33:17 uh,
33:18 and,
33:18 and,
33:18 um,
33:19 you know,
33:19 in,
33:19 in the,
33:20 I,
33:20 I'm actually,
33:20 uh,
33:21 uh,
33:21 an econo economist,
33:23 uh,
33:23 expert witness,
33:24 uh,
33:25 in the standard setting,
33:27 uh,
33:27 um,
33:27 in a standard essential pattern.
33:30 Litigations,
33:30 OK.
33:31 Um,
33:32 so I've been involved in many cases,
33:33 uh,
33:34 related to,
33:35 uh,
33:35 standard essential patterns,
33:36 and one thing I can
33:37 testify is that,
33:39 um,
33:39 you know,
33:40 I,
33:40 I see,
33:41 uh,
33:41 companies in China moving more and more
33:44 from the position of a licensee
33:47 to the position of a licensor.
33:49 Uh,
33:50 Huawei is a prime example,
33:51 you know,
33:51 I used to work with Huawei
33:53 essentially to help them to To,
33:55 to pay less,
33:55 right,
33:56 uh,
33:56 you know,
33:57 for
33:57 paying for royalties as
33:59 associated with the
34:00 standard essential patterns,
34:02 the,
34:02 the SAPs,
34:03 uh,
34:03 in,
34:04 in the last few years,
34:05 uh,
34:05 and I can clearly see that
34:07 Huawei is staying away from me.
34:08 I mean,
34:09 they're more becoming a licensed sword these days.
34:11 Uh,
34:12 they are,
34:12 you know,
34:12 more and more collecting money.
34:14 So,
34:14 uh,
34:14 you know,
34:15 this is,
34:15 uh,
34:15 I think look at the company of Huawei,
34:17 it's a,
34:18 it's a,
34:18 it's a good example.
34:19 I'm actually
34:20 So sorry and happy for Huawei,
34:22 right?
34:22 I mean,
34:22 Huawei is not my customer anymore,
34:24 let's say it,
34:24 put it this way,
34:25 but you know,
34:26 Huawei is,
34:26 is a company is doing great.
34:28 They are moving into the licensed source space.
34:30 Um,
34:31 uh,
34:31 uh,
34:31 let,
34:31 let's move on to the next slide.
34:33 Uh,
34:33 uh,
34:33 I wanna show you a slide about um,
34:36 Uh,
34:37 uh,
34:38 the,
34:38 um,
34:39 the,
34:40 uh,
34:40 you know,
34:41 the,
34:41 the,
34:41 how,
34:42 how much of a
34:43 progress that Chinese companies have made,
34:46 uh,
34:46 in,
34:47 uh,
34:47 you know,
34:48 making innovations in,
34:50 uh,
34:50 uh,
34:51 finding patterns,
34:52 uh,
34:52 in the cellular communications,
34:54 uh,
34:55 space,
34:55 uh,
34:56 and particularly Huawei is a,
34:57 is a good example.
34:59 Uh,
34:59 today,
34:59 uh,
35:00 let me put it this way,
35:00 Huawei,
35:01 uh,
35:01 is the largest contributor,
35:04 uh,
35:04 of SEPs,
35:05 uh,
35:06 standard essential patents
35:07 for 5G technology.
35:09 Uh,
35:10 it accounts for about 15%,
35:12 um,
35:12 and there are a couple of other Chinese companies are behind like ZTE,
35:16 uh,
35:17 like Opel,
35:18 uh,
35:18 like Xiaomi,
35:19 like Tatang,
35:20 like,
35:20 uh,
35:20 Uh,
35:21 uh,
35:21 uh,
35:21 some other,
35:22 you know,
35:22 smaller China,
35:23 China,
35:23 uh,
35:24 uh,
35:24 I'm sorry,
35:24 uh,
35:25 uh,
35:25 uh,
35:25 China Mobile,
35:26 for example,
35:26 is also a
35:27 very sizable contributor of,
35:28 uh,
35:29 uh,
35:29 essential patterns in the 5G space.
35:31 Jointly,
35:32 you know,
35:32 these Chinese companies jointly
35:34 accounts for about 30%
35:36 of all the SEEPs in that space.
35:37 So it is actually a
35:39 fairly significant growth over the years.
35:41 Um.
35:46 In the,
35:46 in,
35:46 in the,
35:47 in the,
35:47 in the,
35:47 in the 6G area,
35:49 you know,
35:49 we,
35:49 we haven't,
35:50 you know,
35:50 adopt,
35:51 entered into the 6G yet,
35:53 uh,
35:53 but already,
35:54 uh,
35:54 you know,
35:54 the standard setting process ongoing,
35:57 um,
35:57 many
35:58 patents already being filed,
36:00 uh,
36:00 for,
36:00 for 6G,
36:02 um.
36:02 And uh you know at least uh
36:05 China has filed 3,435 patents uh
36:10 applications
36:11 uh which ranks the second in the world,
36:13 so already China is is more
36:16 of a player in the in the sixties space.
36:19 Next slide please.
36:24 Um,
36:24 another example is that the high-speed railway,
36:27 uh,
36:27 in,
36:27 in a high-speed railway industry,
36:29 um,
36:30 you know,
36:30 it's also not a surprise that,
36:32 uh,
36:32 you know,
36:32 as China has built out the,
36:33 uh,
36:34 the world's largest network of,
36:35 uh,
36:36 high-speed railway,
36:37 uh,
36:38 the technology is becoming more and more mature.
36:40 Uh,
36:41 there've been many standards being developed over the years by,
36:44 uh,
36:44 the companies involved in that,
36:46 in that,
36:46 uh.
36:46 Area,
36:47 um,
36:48 and I can also tell you that,
36:49 uh,
36:49 uh,
36:49 most of the companies involved in the,
36:51 uh,
36:52 uh,
36:52 uh,
36:52 uh,
36:53 in the railway business,
36:53 high-speed railway business are,
36:55 uh,
36:56 state-owned enterprises.
36:57 Nevertheless,
36:57 they are also,
36:58 uh,
36:59 very innovative,
37:01 um,
37:01 you know,
37:01 this is a,
37:02 a,
37:03 a market departure from the stigma
37:05 associated with the state-owned enterprises being not so innovative,
37:09 being slow.
37:10 Uh,
37:10 that kind of things,
37:11 but I think at least in,
37:12 in China's case,
37:13 uh,
37:13 the state-owned enterprises in the railway business
37:16 or in high-speed railway business are highly,
37:18 highly innovative
37:19 and,
37:19 and they're very aggressive,
37:21 uh,
37:22 internationally,
37:23 um,
37:23 you know,
37:23 they're building a lot of railways all over the world.
37:26 Um,
37:27 China's railway participating in over 300 international standard projects,
37:31 um.
37:32 Formulate all 13 system-level international standards established by the USC US
37:37 is the International Standard for the railway industry for high-speed railway,
37:41 uh,
37:41 account for 70% of all global high-speed railway
37:44 patent applications as of
37:46 2023.
37:47 So this is actually a very dominant player,
37:49 uh,
37:50 uh,
37:50 China being a,
37:51 a dominant player in the high-speed railway business.
37:54 Um.
37:56 And its contribution to other countries,
37:58 you know,
37:58 this is where,
37:59 uh,
37:59 these railways are being currently built,
38:01 high-speed railways being currently built,
38:03 uh,
38:04 in RCN countries,
38:05 um,
38:06 and,
38:06 and,
38:06 uh,
38:07 you know,
38:07 uh concurrently,
38:08 of course,
38:08 uh,
38:09 you know,
38:09 Chinese standards are being adopted in,
38:11 in,
38:11 in,
38:11 in these,
38:12 in these projects.
38:13 Um,
38:14 let's,
38:14 let's go on to the next page.
38:16 Um,
38:17 uh,
38:17 the last example I want to,
38:19 uh,
38:19 briefly touch upon is the solar energy industry.
38:22 This is also an industry that is heavily,
38:25 uh,
38:25 dominated by,
38:26 uh,
38:26 Chinese companies.
38:27 Um,
38:28 and,
38:29 um,
38:29 um.
38:30 You know,
38:30 uh,
38:31 uh,
38:32 this,
38:33 it's actually an odd joke.
38:33 It's actually a fact that the,
38:35 the 10 largest solar companies in the world,
38:38 uh,
38:38 out of the 10 largest solar companies,
38:40 solar panel companies in the world,
38:41 uh,
38:42 8 are Chinese companies,
38:43 uh,
38:44 and,
38:44 and,
38:44 and,
38:45 and,
38:45 and there's also a half Chinese company.
38:47 It's a Canadian company,
38:48 but
38:48 it's pretty much a Chinese company,
38:50 uh,
38:50 and the res and,
38:51 and,
38:51 and the,
38:51 and,
38:52 and the only one left is a,
38:53 is a,
38:53 is a friend,
38:54 is a South Korean company.
38:56 Um,
38:56 and so this is a Industry that is
38:58 heavily dominated by Chinese companies and of course,
39:00 uh,
39:00 you know,
39:00 these Chinese companies have been very innovative over the years.
39:04 Um,
39:04 they have also dramatically drive the cost down.
39:07 Uh,
39:08 you know,
39:08 the price of solar panels is,
39:10 is,
39:10 is,
39:10 is very cheap these days compared to its
39:13 initial cost in 1975 when it was first,
39:16 uh,
39:16 invented and came,
39:17 came onto the market,
39:18 you know,
39:19 something like 20 cents per watt or uh something like that,
39:22 maybe even less than 20 cents per watt,
39:23 whereas in 19
39:24 75,
39:24 it was uh
39:25 over $100 per watt,
39:27 you know,
39:27 you can see
39:28 the,
39:29 the kind of a price
39:30 uh decline curve over,
39:32 over the decades.
39:33 Um and,
39:34 and,
39:34 and in more recent years,
39:35 of course,
39:35 there's been many,
39:36 many
39:36 uh innovating um innovations in this space by
39:40 Chinese companies as well the standards being developed,
39:43 um,
39:44 you know,
39:44 I won't quote,
39:44 quote these numbers here.
39:46 Um,
39:46 I,
39:46 I vividly remember reading
39:48 uh a,
39:49 a paper uh published,
39:50 I think in Uh,
39:51 this is the,
39:52 during the height of the first China-US trade war initiated by,
39:55 uh,
39:56 President Donald Trump,
39:57 uh,
39:57 during his first term,
39:59 um,
39:59 and,
39:59 uh,
40:00 there was a paper I remember that I read by,
40:02 published by,
40:03 uh,
40:03 uh,
40:04 a think tank,
40:04 uh,
40:05 in Washington
40:06 saying that in the solar business,
40:08 you know,
40:08 uh,
40:09 Chinese companies haven't been very innovative,
40:11 they,
40:11 um,
40:12 they,
40:12 uh,
40:13 uh,
40:13 they drive the cost down,
40:14 but,
40:15 you know,
40:15 they can't innovate,
40:16 the cost margin is so low,
40:17 blah blah blah.
40:18 Um,
40:19 uh,
40:19 but look at what's happened in,
40:21 in the last few years since,
40:22 uh,
40:23 2018.
40:24 Uh,
40:25 most of the innovations,
40:27 uh,
40:27 in that space are actually made by Chinese companies
40:29 and they continue to drive the cost down.
40:32 So,
40:32 uh,
40:32 you know,
40:32 this is one area,
40:33 uh,
40:34 that China has played a very important role and,
40:36 and many standards have been developed so far.
40:39 I think I'm,
40:39 I'm done,
40:40 I think,
40:40 right?
40:41 So,
40:41 uh,
40:41 I will,
40:41 I will stop here,
40:42 uh,
40:43 and if you have questions,
40:44 we can discuss later.
40:48 Oh,
40:48 all right.
40:49 So thank you very much,
40:51 uh.
40:52 Doctor
40:53 Zhang
40:54 and and Professor Gong for your
40:56 super interesting presentation.
40:57 We have,
40:58 I think we have question,
40:58 but we postpone this to,
41:00 uh,
41:01 after the.
41:02 The next talk,
41:03 so,
41:04 um,
41:05 Professor Lee,
41:05 please,
41:06 uh,
41:06 the floor is yours,
41:08 and Professor Lee will talk about
41:10 from standard adopter to author,
41:12 the case of South Korea.
41:20 Uh,
41:21 we cannot hear you.
41:23 You're muted.
41:30 Professor Lee,
41:30 you're,
41:31 you're muted.
41:35 I think he has to be unmuted first by the organizer.
41:39 Sorry,
41:41 OK,
41:41 now it's fine.
41:43 OK,
41:43 Sandy,
41:43 are you going to help me or should I,
41:45 uh,
41:47 show my slide myself?
41:52 I,
41:52 I,
41:52 I think if you can do it,
41:53 it can be smooth.
42:17 She sandy.
42:19 OK.
42:21 Thank you very much.
42:23 All right,
42:23 uh,
42:23 I'm He Jin Lee.
42:24 Uh,
42:24 I'm going to talk about,
42:25 uh,
42:26 how Korea has become,
42:29 uh,
42:29 a standard author from standard adapter.
42:32 Uh,
42:32 while the previous presentation on China,
42:35 uh,
42:35 highlights China's rise in standardization in the 20th century,
42:40 as far as I understand.
42:41 Uh,
42:42 my presentation gives more weight on Korea's
42:45 standard development in the 20th century,
42:48 even from 1960s to 1990s.
42:51 Uh,
42:52 of course,
42:52 I covered the the the current development in ICT in in recent years.
42:58 So,
42:58 uh,
43:00 uh,
43:01 when,
43:01 uh,
43:01 those years when Korea was adapter of the standards,
43:05 uh,
43:05 the,
43:05 the standard,
43:07 uh,
43:07 for export driven industrialization,
43:09 I think it may be useful for many developing countries in their
43:13 early stages of
43:15 uh national quality infrastructure building.
43:18 Uh,
43:18 yeah,
43:19 uh,
43:19 then.
43:20 Uh,
43:21 the,
43:22 the,
43:23 the,
43:23 uh,
43:23 after the introduction,
43:25 the,
43:25 uh,
43:26 I will present the evolution of the national quality infrastructure in Korea.
43:30 Uh,
43:30 4 stages are identified in Korea's NQI development
43:34 by the authority in charge of standardization.
43:38 And then
43:40 I will discuss some challenges uh Korea is facing,
43:42 uh,
43:43 in the
43:44 the journey.
43:44 Uh.
43:45 And then,
43:46 uh,
43:46 I'm going to give you some lessons for developing countries.
43:50 I divide the lessons
43:52 uh into those for standard adapters and those for uh would be standard authors.
43:59 The next slide please.
44:05 Right.
44:05 So,
44:06 uh,
44:06 Korea's development has been examined from various perspectives.
44:11 Uh,
44:12 this paper,
44:12 uh,
44:12 this background paper revisited it,
44:15 uh,
44:15 from a rarely investigated perspective,
44:18 that is a standard.
44:20 Uh,
44:20 in fact,
44:21 to support export,
44:23 uh,
44:23 was a starting point of
44:25 a national quality infra structure building in Korea.
44:29 Uh,
44:30 later,
44:31 uh,
44:31 National NQI,
44:32 I will call it NQI from now on,
44:34 uh,
44:35 particularly meteorology provided,
44:38 uh,
44:38 accurate measurement of services required for
44:41 heavy chemical and the electric and electronic industries.
44:45 And since uh late 1990s,
44:48 uh,
44:48 Korea has actively participated,
44:51 uh,
44:52 in,
44:52 in international standardization,
44:54 particularly in ICT.
44:56 Uh,
44:56 through these,
44:57 uh,
44:57 uh,
44:58 processes,
44:58 uh,
44:59 Korea has become a,
45:00 a standard author.
45:02 Uh,
45:03 next slide please.
45:05 Uh,
45:05 there are,
45:06 uh,
45:06 some numbers I'm going to share,
45:09 uh,
45:09 showing,
45:10 uh,
45:11 next slide,
45:12 uh,
45:12 Korea's growth in standardization.
45:17 Mm.
45:18 So,
45:18 uh,
45:19 Korea presents a good example showing
45:21 that economic development is accompanied by the growth of standards.
45:26 I am not talking about a causal relationship.
45:29 I'm just,
45:29 uh,
45:30 showing
45:30 standard accompanied the economic development as well as,
45:35 uh,
45:35 the export growth.
45:36 The,
45:37 the line is a number of the,
45:39 the number of Korean standard and the uh the bar shows uh the,
45:43 the value of export for the last several decades.
45:47 Uh,
45:47 for,
45:47 uh,
45:48 its economic development strategy,
45:50 Korea at that time adopted the
45:53 export-driven industrialization.
45:55 To export the product,
45:57 uh,
45:57 manufacturers had to meet
45:59 a minimum quality and the safety requirement.
46:03 That's why
46:04 the government promoted the standard at that time.
46:09 Next slide.
46:12 And uh this uh the table uh shows uh
46:15 uh the new uh work item proposals made by Korea
46:21 uh in ISO IEC.
46:23 Uh,
46:23 it just it shows uh if uh in early 2022,
46:30 uh,
46:30 from just a two digit number,
46:32 now we have
46:33 uh over 1400.
46:36 It does not mean they all become standard because it's
46:40 the new work I pro uh uh uh proposal,
46:43 but it shows the increase of activities,
46:46 uh,
46:47 participation and contributions made by Korea
46:50 uh in this area.
46:51 Next slides,
46:52 please.
46:55 And
46:55 it also shows,
46:57 uh,
46:57 uh,
46:57 I think that it is shown by the,
47:00 the,
47:00 the previous presentation,
47:02 China's leadership roles in many uh international standard organizations.
47:07 It also shows the increasing number of Korean experts
47:10 who take leadership roles in ISO and the IEC.
47:14 Uh,
47:14 all these,
47:15 uh,
47:16 next slides,
47:17 please,
47:17 uh,
47:18 all these factors raise
47:20 questions like
47:21 how has Korea,
47:22 uh,
47:23 developed its national standards system
47:25 and what factors contributed to success of its NQI
47:30 that in turn,
47:31 uh,
47:31 contributed to the economic development.
47:34 And what challenges are uh faced by Korea at uh right now?
47:39 And uh
47:40 uh what can other countries,
47:42 uh uh uh including uh particularly
47:44 developing countries learn from Korean experiences?
47:47 Next slide,
47:48 please.
47:49 And then,
47:50 uh,
47:50 to answer these questions,
47:52 we have,
47:53 uh,
47:54 three aims,
47:55 as you see,
47:56 next slide.
48:01 Right.
48:02 Uh,
48:03 this background paper,
48:04 uh,
48:05 can make a contributions to development and understand the communities
48:10 by identifying a mechanism of the
48:13 relationship between standard and the development
48:16 and by suggesting practical recommend
48:18 uh recommendations for developing countries.
48:21 As the paper deals with the historical fact uh
48:24 that took place uh uh even several decades ago,
48:27 uh,
48:28 we conducted,
48:28 uh,
48:29 some interviews as well as examination of historical,
48:33 uh,
48:33 document.
48:35 Next slide,
48:36 please.
48:36 And the key interview is uh include uh the former government officers and experts
48:42 who had several,
48:43 uh,
48:43 who had served for some decade in
48:46 key top positions in NQI of Korea.
48:49 Then,
48:50 uh,
48:50 next to the uh the uh section
48:54 is evolution of NQI.
48:56 Uh,
48:57 we use the framework of NQI presented in the concept paper of this,
49:01 uh,
49:01 uh,
49:02 the 2025 WDR uh project.
49:06 NQI consists of,
49:08 uh,
49:08 meteorology,
49:09 standardization,
49:10 conformity assessment,
49:11 and accreditation.
49:13 And the,
49:14 the,
49:15 the,
49:15 the evolution of NQI in Korea has passed through 4 stages.
49:21 Uh,
49:21 the division was made by the main,
49:24 uh,
49:24 agency that took place,
49:26 uh,
49:26 that took the responsibility of standardization.
49:29 Uh,
49:29 as the needs for standardization at NQI grew,
49:34 there was structural changes in which a new agency was set up.
49:39 Next slide,
49:40 please.
49:43 And this table summarizes the main characteristics of each stage,
49:49 uh from
49:50 1960s to the current today,
49:55 current stages.
49:56 Uh,
49:57 the main characteristics of each stage,
49:59 uh,
50:00 in the following pages,
50:02 I will,
50:02 uh,
50:03 touch up on some key interesting aspects of,
50:06 uh,
50:06 from each stage.
50:09 And next slide,
50:11 please.
50:14 In
50:15 the,
50:16 uh,
50:16 the first stage,
50:17 I call it the founding stage,
50:20 uh,
50:20 the,
50:21 the Bureau of Standard was set up in 1961.
50:25 And uh and uh in early 1960s,
50:28 uh,
50:29 Korea adopted,
50:30 as I said,
50:31 export-driven industrialization as a strategy for economic uh growth.
50:36 Uh,
50:36 in doing so,
50:37 the importance of vigorous national standard system was recognized.
50:42 In order to enhance the
50:44 export quali uh the product uh uh quality,
50:48 productivity,
50:49 and competitiveness uh in export.
50:53 So,
50:54 for example,
50:54 uh,
50:55 I just show uh some of the characteristics,
50:57 uh,
50:58 uh,
50:58 the standard uh
51:00 uh the standard uh began to be made
51:02 from light industries and the industries for necessities.
51:07 And uh
51:07 then uh KS uh Korean Standard marker was implemented in 1963.
51:14 Uh,
51:15 the KS mark product were prioritized in public procurement,
51:19 in fact.
51:21 So it was one of the success factors that made
51:24 uh companies in 1960s
51:27 adopt the Korean standard.
51:29 Uh,
51:30 another factor was a promotion.
51:32 Uh,
51:34 as I said,
51:35 uh,
51:35 uh,
51:36 Korean standard uh was highly promoted even to the pub general public.
51:42 Uh,
51:42 for example,
51:43 a short movie titled The Industrial Standardization
51:47 was screened in all the film theaters across the country
51:52 before the main movie was,
51:53 uh,
51:53 running,
51:54 uh,
51:55 in 1960s,
51:56 I mean.
51:56 Uh,
51:57 it contributed to enhancing
51:59 the awareness of the importance of standard.
52:03 And uh uh it made a perception,
52:06 uh KES market goods uh equal to good quality.
52:10 That's why companies uh adopted those uh standard uh uh very fast because uh
52:16 uh it was well received in the uh in the market by the consumers.
52:21 And then,
52:22 uh
52:23 there was uh uh the 10-year industrial standardization
52:27 plan uh from as early as 1971.
52:31 And there was some conformity,
52:33 the,
52:33 the advancement in conformity of assessment.
52:36 Next slide,
52:37 please.
52:41 In growing
52:43 Uh,
52:44 the second stage,
52:45 I call it the growing stage,
52:47 uh,
52:48 a new,
52:48 uh,
52:49 the,
52:50 the agency was made called the Industrial Advestment Administration.
52:55 Uh.
52:57 Uh,
52:59 In,
52:59 in meteorology,
53:01 uh,
53:01 there was also a very interesting development in the 1970s.
53:06 Uh there was an increasing need for accurate measurement
53:10 uh from changing industry structure.
53:13 Uh in 60s,
53:14 uh uh Korea focused on light industries,
53:17 from uh the mid 70s,
53:19 uh we changed to
53:21 uh heavy and uh,
53:22 the chemical industry and electric,
53:24 elec electronic industries.
53:26 Uh.
53:26 So,
53:27 the new industries uh
53:29 uh required uh a high uh regency.
53:33 High frequency,
53:34 the,
53:34 the measurement,
53:35 the meteorology.
53:36 So,
53:37 the,
53:37 the
53:39 the Korea Standard Research Institute was set up in 1975
53:45 by use of loan from uh US aid.
53:48 In fact,
53:49 uh,
53:49 the,
53:50 the loan of 5 million from US aid was
53:54 used to make this institute Korea Standard Research Institute.
53:59 But it was not enough for procure to buy
54:04 uh uh uh the sophisticated equipment for advanced meteorology.
54:08 The government arranged a further loan of 8 million from Asia Development Bank.
54:16 Uh,
54:16 it,
54:16 it was,
54:17 it was a really big,
54:18 uh,
54:19 the amount.
54:20 Uh,
54:20 let me just make a simple comparison.
54:23 In mid 1970s,
54:25 a big apartment complex with about 1500 unique dwellings
54:31 was built in Seoul
54:33 by a loan over
54:34 10 million from the USA,
54:36 the same is from the same US aid.
54:39 And the KISTE Korea Institute of Science Technology was founded by a loan of
54:45 6 million uh from the USAid too.
54:48 So this is simple comparison shows the scale and the vision of
54:53 Korea Standard Research Institute.
54:55 Institute
54:56 uh the at its inception.
54:59 Uh,
54:59 this institute later became
55:02 the CRISS,
55:03 which is a Korea Research Institute for Standard and the Science,
55:07 uh,
55:07 that,
55:08 that is the National Meteorology Institute in Korea.
55:12 And then,
55:13 uh,
55:13 when it,
55:13 uh,
55:14 standardization,
55:15 there was a sharp increase of Korean standard,
55:18 uh,
55:18 at that time.
55:19 And,
55:20 uh,
55:20 uh,
55:20 as I just uh said,
55:22 uh,
55:22 standard,
55:23 uh,
55:24 in heavy chemical and electronic and electronic industries,
55:28 uh,
55:28 were made in those periods.
55:30 And there was also 5-year,
55:33 uh,
55:34 the strategic plan for standardization,
55:36 uh,
55:36 twice in 1988 and 1993.
55:40 And uh in
55:42 uh in conformity assessment,
55:44 there was a
55:45 a clear standard mark order uh was implemented then.
55:49 Uh,
55:50 it stipulated that uh to protect the consumer and enhance public safety.
55:56 All the products in the designated categories like uh
56:00 lighting,
56:00 electric wires,
56:01 building materials
56:03 should have KS marker,
56:04 which means
56:05 uh in those categories,
56:07 any product cannot be produced and sold without
56:11 uh KES marker.
56:12 So that kind of system became a
56:15 foundation for conformity assessment later in Korea.
56:20 Next to slider,
56:21 and then.
56:24 Uh,
56:24 in stage three,
56:25 in 1990s,
56:26 uh,
56:27 uh,
56:27 there was,
56:28 uh,
56:28 the,
56:29 the,
56:29 the Korean uh Agency for Technology and Standard was made,
56:34 uh.
56:36 Uh,
56:36 in standardization,
56:38 uh,
56:38 as the,
56:39 there are 3,
56:40 national standard development plan was made,
56:44 and the,
56:45 the participation as,
56:46 uh,
56:47 from this stage,
56:49 national standard strategies were,
56:51 uh,
56:51 pushed not just as a tool for quality control,
56:55 as we have seen before in the previous stages.
56:58 The government and the businesses,
57:00 they began to realize and to share the idea
57:03 that
57:04 uh those who set standards dominate the market.
57:07 So with such a belief standardization effort will further accelerated.
57:12 So,
57:13 the first and the second national standard of development plans was implemented,
57:18 made and implemented in 3,
57:20 in 3 periods.
57:22 And uh uh uh there was uh
57:24 the active participation started in international standardization,
57:29 and the harmonization with international standard war,
57:32 uh,
57:33 the,
57:33 that started to uh the uh uh the,
57:36 the,
57:36 the,
57:36 after the uh WTO uh TPT agreement.
57:40 And uh there are some efforts
57:43 uh to uh link R&D with standardization.
57:47 And uh uh I I'm going to tell us briefly about each in the next few slides.
57:52 And there was uh
57:54 uh also efforts to promote
57:57 uh private sector participation like a
57:59 cooperation Organization for Stan development.
58:03 And uh also there is an interesting uh system
58:06 called the National Standard coordinate uh coordinator System.
58:10 And uh from this
58:12 uh stage,
58:13 ICT standardization started
58:16 as ICT became a growth engine for the Korean economy from 1990s,
58:21 uh,
58:21 enormous efforts were made for standardization in ICT.
58:25 So the,
58:26 the,
58:26 the leading,
58:27 uh,
58:27 the state ICT institution uh at uh AR,
58:31 uh,
58:31 they set up a new center for these purposes called uh like this.
58:38 And next slide,
58:39 please,
58:40 uh.
58:40 Let me begin with the
58:42 uh cooperating COSD uh Cooperating Organization for Standard Development.
58:49 Uh,
58:49 it,
58:49 the system was uh designed to encourage and enable
58:54 private
58:55 organization to uh develop.
58:58 Uh,
58:58 the,
58:58 uh,
58:58 standard,
59:00 and then to transfer for the government,
59:02 uh,
59:02 responsibilities in standard and development
59:05 and the management
59:07 to,
59:07 uh,
59:07 industrial organization and the trade associations.
59:10 It is,
59:11 uh,
59:11 uh,
59:11 to increase their engagement and the participation in a standard-making.
59:17 And uh they now conduct surveys on
59:20 necessary standard and the plan for standard development
59:23 and the 69 uh COSD is in charge of
59:27 uh 81 TC and uh uh sub uh subcommittees
59:32 uh as of 2023.
59:34 And the harmonization was
59:38 made.
59:39 So now,
59:40 As you see from the graph,
59:42 there was a sharp increase growth in the number of Korean standard.
59:47 Uh,
59:47 it was,
59:48 uh,
59:48 uh,
59:49 the rapid increase in this period,
59:51 uh,
59:51 is attributed to,
59:53 uh,
59:53 harmonization was international standard.
59:56 And uh it is followed by the,
59:58 uh,
59:59 some drops in the number of standardization.
1:00:02 The reason is,
1:00:02 uh,
1:00:03 uh,
1:00:04 The,
1:00:05 the,
1:00:05 uh the,
1:00:06 the,
1:00:06 there was a concern uh with too many uh standard.
1:00:09 So,
1:00:10 uh,
1:00:10 some standard became useless and unused because of
1:00:14 relevant products are not produced or not sold anymore in the market.
1:00:18 So
1:00:19 that's why uh they decided to cancel some of the standards.
1:00:23 That's the reason why it drops in that period.
1:00:27 And then next slide,
1:00:28 just please,
1:00:28 uh,
1:00:29 and then
1:00:30 uh to link,
1:00:31 there was a concern that
1:00:33 uh despite the next slide.
1:00:36 Uh,
1:00:38 there was a,
1:00:38 uh,
1:00:39 a,
1:00:39 a concern shareholder,
1:00:41 uh,
1:00:41 that despite the huge investment on R&D,
1:00:45 national R&D.
1:00:47 Next Sunday,
1:00:48 next one,
1:00:48 please.
1:00:49 Uh,
1:00:49 uh,
1:00:50 they may not lead to standardization and com uh commercialization.
1:00:55 So,
1:00:55 that's why,
1:00:56 uh,
1:00:57 the,
1:00:57 the,
1:00:57 uh,
1:00:57 the research project,
1:00:59 uh,
1:00:59 the
1:01:01 Designed and developed
1:01:05 uh to ensure the outcomes of national
1:01:06 R&D programs are translated into standardization.
1:01:10 So one of the aim is to promote international standardization.
1:01:14 Some projects generate international standard out of this project.
1:01:20 And then,
1:01:21 uh,
1:01:21 uh,
1:01:22 next,
1:01:22 then,
1:01:22 uh,
1:01:24 next slide please.
1:01:28 And next,
1:01:31 And that uh the last stage,
1:01:33 uh,
1:01:33 I call it uh expanding stage.
1:01:36 Next slide the
1:01:39 And there was uh some reform in that period,
1:01:42 uh,
1:01:42 the government,
1:01:43 uh,
1:01:44 the code,
1:01:45 the pan-government participation standard system uh in 2015.
1:01:50 Uh,
1:01:50 there was a reform uh in this reform,
1:01:53 uh,
1:01:54 the,
1:01:54 the,
1:01:55 this reform,
1:01:56 this uh the system uh was developed to address
1:01:59 the increasing diversification of industries
1:02:02 which posed challenges to some existing manufacturing center,
1:02:06 the standardization flowing framework.
1:02:08 Uh,
1:02:09 for example,
1:02:11 there was an incoherence between standard and technical regulations.
1:02:15 Uh,
1:02:15 there were cases where,
1:02:17 uh,
1:02:17 separate,
1:02:18 uh,
1:02:18 uh,
1:02:18 standard KES and the technical regulation,
1:02:22 uh,
1:02:22 existed
1:02:23 for one particular project.
1:02:25 So which caused the confusion and the cost to businesses.
1:02:29 Uh,
1:02:30 in principle,
1:02:31 when we make a new uh regulation,
1:02:34 uh,
1:02:34 we are supposed to use existing standard.
1:02:37 However,
1:02:38 some ministries were not familiar with the standardization.
1:02:42 And uh uh there was a a a tendency to think that
1:02:46 using Korean standard,
1:02:47 the KS mean,
1:02:49 uh,
1:02:49 put them under the realm of the other uh agency,
1:02:53 which is uh in charge of standardization.
1:02:56 So that kind of uh the some competition or mindset,
1:03:00 uh.
1:03:01 Uh,
1:03:02 the,
1:03:02 uh,
1:03:03 made us some regulations,
1:03:05 uh,
1:03:05 made the separate regulations.
1:03:07 So that was the,
1:03:08 uh,
1:03:09 one of the motivations for over,
1:03:11 uh,
1:03:11 pre-government participation standard system in there.
1:03:15 And they transferred,
1:03:16 the system transferred the standardization repo responsibilities to
1:03:21 other industries.
1:03:22 Uh,
1:03:22 let me show the uh the some numbers in the following page here.
1:03:26 And there was also national standard development plans
1:03:30 and uh in,
1:03:31 in,
1:03:32 in ICT standardization,
1:03:34 uh actually uh upgraded its standard unit to
1:03:37 standard research division in 19 uh 2019.
1:03:41 And they played the role of some uh control power in ICT standardization,
1:03:47 uh,
1:03:47 working closely with the TTA
1:03:49 and the government has a strategic plans for
1:03:52 national strategic technologies,
1:03:55 uh,
1:03:55 in which they emphasize the international cooperation on standards development
1:04:01 uh in uh critical and emerging technologies like AI,
1:04:05 quantum,
1:04:05 and the 6G.
1:04:07 Next slide,
1:04:08 please.
1:04:11 And this uh uh table shows uh,
1:04:14 uh,
1:04:14 the some standard activities are,
1:04:17 uh,
1:04:17 the transferred to other ministries from the cuts to other ministries.
1:04:22 So as you see,
1:04:23 the Ministry of Science and IT takes the largest portion as ICT is a key
1:04:28 area for standardization in Korea.
1:04:31 And the,
1:04:32 uh,
1:04:32 the
1:04:34 The,
1:04:34 this is the,
1:04:35 the table shows that the ICT standardization growth.
1:04:39 Korea is the 3rd largest uh contributor to ITU uh uh these days.
1:04:45 And next slide,
1:04:47 then,
1:04:47 uh let me move on to challenges.
1:04:51 Uh,
1:04:52 one,
1:04:53 we need more participation from the private sector.
1:04:56 Uh,
1:04:57 uh,
1:04:57 for example,
1:04:58 out of 263 leadership positions in ISO and IEC only 24 are from industry as of 2023.
1:05:07 Uh,
1:05:09 There are,
1:05:09 uh,
1:05:10 there have been,
1:05:10 uh,
1:05:11 many,
1:05:11 uh,
1:05:12 uh initiatives for this purpose.
1:05:14 Some of them are successful,
1:05:16 others less than expectation.
1:05:18 As I have mentioned,
1:05:19 the COSD
1:05:20 are making some change,
1:05:23 making impact.
1:05:24 So they are now in charge of the COSDs in Korea now
1:05:28 in charge of more than 80% of the standard development and management.
1:05:33 So,
1:05:33 uh,
1:05:34 the tradition is that the the the begin
1:05:36 to walk according to some researchers studies,
1:05:39 and there's a more stake stakeholder inclusiveness and,
1:05:44 uh,
1:05:44 and agenda setting.
1:05:46 And various standard stakeholders needed to participate in standardization,
1:05:50 particularly to represent
1:05:52 the underrepresented groups like the consumers and the CSO.
1:05:56 And nowadays,
1:05:57 uh,
1:05:58 the UN,
1:05:58 uh,
1:05:59 the Human Rights Office even pub published a report on
1:06:03 human rights and the technical,
1:06:05 uh,
1:06:05 the,
1:06:05 the standard setting in digital technologies.
1:06:08 So
1:06:09 the value and the some,
1:06:11 the,
1:06:11 the,
1:06:11 uh,
1:06:12 the agenda
1:06:13 uh are being uh the high emphasized nowadays.
1:06:17 So,
1:06:18 uh,
1:06:18 as a standard author and to become a leader,
1:06:21 I think we need to contribute more to discourses on value and agenda setting,
1:06:27 not only contribute to technical aspect.
1:06:30 And uh another,
1:06:32 the,
1:06:32 the third challenge comes from.
1:06:35 Uh,
1:06:36 the,
1:06:37 the,
1:06:37 the geopolitical circumstances.
1:06:39 And there's a,
1:06:40 uh,
1:06:40 next slide please.
1:06:42 Uh,
1:06:42 there is a concern that,
1:06:44 uh,
1:06:44 the,
1:06:45 the,
1:06:46 the,
1:06:46 the,
1:06:46 the,
1:06:46 the fragmentation of international standardization systems.
1:06:50 So,
1:06:51 uh,
1:06:51 to,
1:06:52 uh,
1:06:52 uh,
1:06:52 mitigate the risk that we needed to,
1:06:55 uh,
1:06:56 to increase enhance
1:06:57 bilateral and multilateral cooperation.
1:07:01 Next slide,
1:07:02 uh,
1:07:03 next slide,
1:07:04 2 lesson.
1:07:06 One more lesson,
1:07:07 I move on to quicker.
1:07:09 Yes.
1:07:10 And uh as I said,
1:07:11 uh,
1:07:11 lessons,
1:07:13 I have two
1:07:14 parts of lessons,
1:07:16 one for standard adapters
1:07:18 and the other 4 would be standard uh offers.
1:07:23 Uh,
1:07:24 the,
1:07:24 the first,
1:07:25 the first,
1:07:25 uh,
1:07:25 standardization,
1:07:26 uh,
1:07:27 for developing countries,
1:07:29 uh,
1:07:29 developing countries needed to identify the areas of priority for their,
1:07:34 uh,
1:07:34 development,
1:07:35 standard development.
1:07:36 In Korea,
1:07:37 it began with the light industries for export and the necessity industries like
1:07:43 light bulbs,
1:07:44 bulbs.
1:07:45 And uh uh uh there there was uh the,
1:07:47 the export inspection and the Korean market system.
1:07:51 As I mentioned in my presentation,
1:07:54 uh,
1:07:54 the quality control was strongly emphasized for exporter.
1:07:58 And uh it uh it developed the system developed into
1:08:03 a CA uh in later stages.
1:08:05 And,
1:08:06 uh,
1:08:06 uh,
1:08:07 as I just uh uh touched upon during my presentation,
1:08:11 uh,
1:08:11 there was,
1:08:12 uh,
1:08:12 systematic plans for strategies in standardization
1:08:17 every 5 years throughout several decades.
1:08:20 So
1:08:20 there was explicit plans for strategy for standardization at the national level.
1:08:26 And even it is mandated by
1:08:29 uh the law,
1:08:30 uh,
1:08:30 uh,
1:08:30 the framework uh framework act on national standard.
1:08:35 And uh
1:08:35 uh
1:08:36 the resource allocation,
1:08:38 uh,
1:08:38 resources were allocated uh uh prioritized for standardization.
1:08:44 uh even uh the resources funded from aid and the laws were allocated
1:08:49 uh to.
1:08:51 Uh,
1:08:51 standardization and the national quality,
1:08:54 uh,
1:08:55 the,
1:08:55 the infrastructure.
1:08:57 All these four led to me,
1:08:59 uh,
1:08:59 led me to ask a question.
1:09:01 Uh,
1:09:01 what made it,
1:09:02 uh,
1:09:02 possible to make a strategic plans they made,
1:09:05 uh,
1:09:06 and they are implemented and the resources
1:09:09 are allocated for standardization and NQI.
1:09:13 I think there was a high level of
1:09:15 uh the awareness on the importance of standard and NQI among
1:09:21 top level policymakers in early stages of the development.
1:09:25 Uh,
1:09:25 this is the major factor for the successful implementation of NQI.
1:09:30 I was asked by the,
1:09:31 the World Bank team,
1:09:33 uh what is the most important factor,
1:09:35 I do,
1:09:36 do you think,
1:09:37 uh,
1:09:37 and uh that is the my,
1:09:39 uh,
1:09:39 my response to those questions.
1:09:41 So,
1:09:42 uh,
1:09:42 the,
1:09:43 the,
1:09:43 the awareness of leaders on this importance of this issue,
1:09:48 uh,
1:09:48 led to contributed to uh economic development that it is the type of
1:09:53 uh because uh
1:09:54 the,
1:09:55 they used the loans and aid for uh uh standard infrastructure,
1:10:01 uh,
1:10:02 which is not visible to the general public.
1:10:05 Uh,
1:10:05 so it takes,
1:10:07 it requires some courage to.
1:10:09 And the uh the the the
1:10:13 the the the some uh resources
1:10:15 uh to
1:10:16 uh those invisible area.
1:10:19 So
1:10:19 if we use those uh loans aid from Asia to build the roads,
1:10:25 it is easy to justify.
1:10:27 However,
1:10:27 when we use those standard use for
1:10:31 uh the meteorology,
1:10:32 which is not uh easy uh to make such a decision.
1:10:37 And next slide.
1:10:41 So this picture shows
1:10:43 uh when the President Johnson visited Korea in 1965,
1:10:48 among his gifts was included
1:10:51 uh the standard weight and the measures,
1:10:53 the international prototypes of the kilogram and the meter.
1:10:57 The message was quite straightforward.
1:11:00 The national standard and meteorology,
1:11:02 meteorology system is essential for both industrialization and the science,
1:11:07 and the message was well received by the policymakers.
1:11:11 And the gift was in
1:11:14 there was a very interesting episode.
1:11:15 The gift was delivered personally to President Park Chung-y uh
1:11:20 by the US special advisor uh uh on science technology.
1:11:25 Uh,
1:11:25 President Obama was about to touch it.
1:11:28 Then the advisor shouted,
1:11:30 Don't do,
1:11:31 don't touch it.
1:11:32 Uh,
1:11:32 it,
1:11:33 uh,
1:11:33 makes them inaccurate.
1:11:34 It makes,
1:11:35 uh,
1:11:35 uh,
1:11:35 useless.
1:11:36 So this kind of uh episode uh made uh some deep impression on him.
1:11:41 And that's why they were able to make us uh some contribution investment on
1:11:46 meteorology and the standard infrastructure.
1:11:49 And the uh next slide.
1:11:55 Uh,
1:11:55 I'm not going to talk about this,
1:11:57 uh,
1:11:57 I think,
1:11:58 uh,
1:11:58 uh,
1:11:58 this,
1:11:58 uh,
1:11:58 the,
1:11:59 the,
1:11:59 the,
1:12:00 this comes from the Kevin,
1:12:02 the book from Kevin Rudd.
1:12:04 Kevin Rudd was the Prime Minister of Australia,
1:12:07 and he was also served as ambassador to China.
1:12:11 And uh he,
1:12:12 uh,
1:12:12 wrote a book about uh Xi Jinping's worldview.
1:12:15 Uh,
1:12:16 one of the,
1:12:17 uh,
1:12:17 uh,
1:12:17 the interest worldviews,
1:12:20 uh,
1:12:20 uh,
1:12:20 uh,
1:12:21 you know,
1:12:21 over the Xi Jinping according to Kevin Rudd.
1:12:24 Uh,
1:12:25 determining the global technology standard of uh the future.
1:12:29 So
1:12:30 the plan and the uh intention to lead in standardization have existing,
1:12:34 uh,
1:12:35 China's leaders,
1:12:37 uh,
1:12:37 for,
1:12:37 for long decade,
1:12:39 at least since 1990s,
1:12:41 according to my own research,
1:12:42 I have written,
1:12:43 uh,
1:12:44 uh,
1:12:44 many papers on China's standardization.
1:12:46 So,
1:12:47 uh,
1:12:47 the leaders shared they had a very strong belief on the standardization,
1:12:51 according to my interpretation.
1:12:53 And the last slide,
1:12:55 uh,
1:12:55 so
1:12:57 Next question please.
1:12:59 For the,
1:13:00 it is the lessons for uh standard would be standard authors,
1:13:04 uh,
1:13:05 we,
1:13:05 uh we need to focus on standardization in specialized area.
1:13:10 In the case of Korea,
1:13:11 it was ICT standardization.
1:13:13 And the
1:13:14 the link to the uh link standardization to R&D is necessary.
1:13:20 So to become an author,
1:13:22 standardization needs to be supported by
1:13:25 continuous continual uh uh R&D.
1:13:29 So uh there was uh the Korean system was Korea
1:13:32 that developed a system called
1:13:33 the Standardization Capacity enhancement Program,
1:13:37 uh,
1:13:37 which made some impact.
1:13:39 And also the,
1:13:41 the,
1:13:42 the,
1:13:42 the,
1:13:42 the fostering export efforts to foster effort,
1:13:45 uh,
1:13:45 the human resources uh to continue.
1:13:49 Uh,
1:13:50 I'd like to close my presentation with the implement
1:13:54 implications for uh develop uh development of cooperation.
1:13:58 So,
1:13:59 uh,
1:13:59 in this research,
1:14:01 uh,
1:14:01 I have found uh uh legitimacy for increasing ODA resources for standard and
1:14:08 uh standardization and NQI.
1:14:10 And we also needed to develop
1:14:13 diverse modes,
1:14:14 uh,
1:14:15 the,
1:14:15 the,
1:14:15 the,
1:14:15 uh cooperation mode uh for
1:14:18 capacity building and standardization and the NQI.
1:14:23 Uh,
1:14:23 thank you very much.
1:14:24 That's it for,
1:14:24 uh,
1:14:25 from,
1:14:25 uh,
1:14:25 for me,
1:14:26 uh,
1:14:26 from me today.
1:14:29 Thank you very much,
1:14:30 uh,
1:14:31 Professor Lee,
1:14:32 this.
1:14:33 It was very interesting.
1:14:36 We,
1:14:37 we incorporate quite a lot of this
1:14:39 insight in the in the report.
1:14:41 So,
1:14:42 uh,
1:14:42 thanks.
1:14:43 Let,
1:14:43 let me open up the floor to to to question please,
1:14:46 uh.
1:14:48 Raise your hand if you have any question.
1:14:54 Philip
1:15:01 Yeah,
1:15:01 now,
1:15:01 thank you so much for for these really um in depth presentation.
1:15:04 It's very interesting,
1:15:05 and especially contrasting China,
1:15:07 um China and Korea.
1:15:09 I like one question um specifically for the China presentation
1:15:14 about the decline in mandatory
1:15:18 standards and technical regulations,
1:15:19 which I found particularly interesting.
1:15:22 I was
1:15:23 wondering,
1:15:23 could you say a few words about to what extent
1:15:26 this meant like a shift in the regulatory approach
1:15:30 that is like relying less on mandatory standards and
1:15:33 maybe like other regulatory instruments or like a,
1:15:36 The switch to kind of like post-market
1:15:38 surveillance um approach.
1:15:41 Um,
1:15:41 because I assume that still there's like a large interest in
1:15:45 achieving like the regulatory objectives.
1:15:47 Um,
1:15:48 so it's interesting to see that there's like a decline in in the use of standards,
1:15:52 uh,
1:15:52 of,
1:15:52 of,
1:15:52 of mandatory standards.
1:15:54 And the second question,
1:15:55 um,
1:15:56 is actually like on um both Korea and and China.
1:16:00 I'm interested in,
1:16:01 of course,
1:16:01 like your presentations were mainly about standards,
1:16:04 but I would be curious to see
1:16:07 to what extent there has been like a shift in the
1:16:10 conformity assessment
1:16:11 um system
1:16:13 because like one of the hypothesis that we
1:16:15 have in the world development report is that
1:16:18 there's somehow a shift over time from
1:16:21 the government
1:16:22 doing conformity assessment themselves like testing and certification.
1:16:27 And to switch to more
1:16:29 private laboratories uh doing this,
1:16:31 and I wanted to just like know like kind of a broad strokes,
1:16:35 to what extent you've seen this happening,
1:16:37 um,
1:16:38 in Korea and China.
1:16:39 Thank you.
1:16:44 Um,
1:16:45 Vanessa,
1:16:46 you wanna
1:16:47 take on the first question?
1:16:49 Yeah,
1:16:49 uh,
1:16:50 I can probably,
1:16:51 you know,
1:16:51 respond to what Philip just asked and uh
1:16:54 Professor Gong,
1:16:54 you can,
1:16:55 you know,
1:16:55 give a compliment,
1:16:56 uh comment on that.
1:16:57 So,
1:16:58 I think,
1:16:58 you know,
1:16:58 Philip,
1:16:58 you just observed very important characteristics that
1:17:01 monetary standard uh has really significantly dropped.
1:17:06 I think that's thanks to the uh
1:17:08 uh importance of the non SOEs.
1:17:10 So China has been heavily concentrated with the
1:17:13 state owned.
1:17:13 Enterprise in the past,
1:17:15 but
1:17:15 ever since the economic reform that no SOEs have
1:17:19 taken
1:17:20 a significant part of the economy.
1:17:23 I think as we just described in our paper,
1:17:26 that the China standardization process is the mix of the,
1:17:30 the government's led and industry driven,
1:17:33 that is a top down plus the bottom up.
1:17:36 So given that,
1:17:37 you know,
1:17:37 China leave the It's flexibility to the industry to,
1:17:41 you know,
1:17:41 let the enterprise uh drive the standardization process.
1:17:45 And that,
1:17:45 uh,
1:17:45 you know,
1:17:46 the non IOC economy
1:17:48 that has played a significant role
1:17:51 in in the whole standard citing process.
1:17:53 I think that's why we have been observing,
1:17:55 you know,
1:17:56 the emerging of the uh
1:17:57 um important uh companies like what Professor Gong just described,
1:18:01 like Huawei and many other.
1:18:03 You know,
1:18:03 top,
1:18:04 um,
1:18:04 Chinese companies,
1:18:06 uh,
1:18:08 interestingly that you probably see that um
1:18:11 most of them are not SOEs.
1:18:12 So they're like non SOEs and they have been leading
1:18:15 in many sectors in in China.
1:18:17 So,
1:18:18 I think that's probably why uh we have observed and
1:18:21 that it's kind of the trend that mandatory um
1:18:24 standards or like governments
1:18:26 uh you know,
1:18:27 led standards has been dropping
1:18:29 over the years.
1:18:31 Yeah.
1:18:32 I,
1:18:32 I,
1:18:32 I want to uh try to answer the second part
1:18:35 of your questions.
1:18:36 Um,
1:18:37 it,
1:18:37 it is my observation that,
1:18:39 um,
1:18:40 you know,
1:18:40 as the economy develops as the industry advances,
1:18:44 usually,
1:18:44 you know,
1:18:45 there
1:18:45 becomes,
1:18:46 uh,
1:18:46 there's a development of a sort of ecosystem,
1:18:49 uh,
1:18:49 with the companies,
1:18:50 with the trade organizations,
1:18:52 with the,
1:18:53 um,
1:18:53 you know,
1:18:54 research organizations sort of
1:18:56 jointly working together.
1:18:58 Um,
1:18:58 and,
1:18:58 and this is really the foundation of the,
1:19:01 the standard-setting activities on the part of the industry,
1:19:04 on the part of the market.
1:19:06 Um,
1:19:06 so,
1:19:07 so I,
1:19:07 I,
1:19:07 I would say,
1:19:08 you know,
1:19:08 if you only have a few companies in that space,
1:19:10 it's very difficult.
1:19:11 Now,
1:19:11 if you have,
1:19:12 uh,
1:19:12 the whole set of industries,
1:19:13 the entire value chain,
1:19:15 um,
1:19:15 and,
1:19:15 and,
1:19:16 and the ecosystem essentially,
1:19:17 uh,
1:19:18 deeply rooted in your market,
1:19:20 and I think,
1:19:20 you know,
1:19:20 we,
1:19:21 we can talk about
1:19:22 more of a sort of establishment of the Standard setting uh process.
1:19:26 Um,
1:19:26 another interesting observation,
1:19:28 my interesting observation is that,
1:19:29 you know,
1:19:30 these standard setting activities are getting immensely,
1:19:33 immensely
1:19:34 complicated these days.
1:19:35 So let's say you use the
1:19:37 electric car as an example.
1:19:38 There are so many aspects of an electric car that needs to be,
1:19:42 uh,
1:19:43 developed,
1:19:43 that it needs to develop standards for these,
1:19:46 for these,
1:19:46 uh,
1:19:46 products uh for these things
1:19:48 in your car,
1:19:49 um,
1:19:49 so.
1:19:50 Such,
1:19:50 such that it's extremely difficult essentially
1:19:53 for the government to take on this role,
1:19:55 it just cannot do it.
1:19:56 It's so complicated,
1:19:57 so many things are being,
1:19:58 you know,
1:19:59 covered
1:19:59 and the government doesn't want to get involved in this.
1:20:02 So I think it's sort of working both ways that,
1:20:04 uh,
1:20:04 you know,
1:20:04 you need a,
1:20:05 a mature,
1:20:06 fast developing,
1:20:07 sizable
1:20:09 industry to do this.
1:20:10 On the other hand,
1:20:11 you know,
1:20:11 it,
1:20:11 it,
1:20:11 the government doesn't want to do it anymore,
1:20:14 so I think that's probably working both ways.
1:20:19 Right,
1:20:19 so as far as I know,
1:20:20 the,
1:20:21 the conformity assessment is uh the,
1:20:23 the downstream businesses
1:20:25 uh in standard the national quality in uh infrastructure.
1:20:29 Uh
1:20:31 The standard uh itself cannot make uh
1:20:34 uh cannot bring money,
1:20:35 in fact,
1:20:36 because the idea of the standard is uh just sharing.
1:20:40 So,
1:20:40 uh,
1:20:41 they can make uh uh uh some uh ecosystem or businesses,
1:20:46 the system can make money through uh
1:20:48 uh CEA like a certification,
1:20:51 testing,
1:20:52 inspection,
1:20:52 all those things.
1:20:54 Uh,
1:20:54 for example,
1:20:55 black,
1:20:55 uh,
1:20:56 uh,
1:20:56 Bluetooth itself doesn't make money to those who made,
1:21:00 who made it.
1:21:01 Uh,
1:21:01 they make,
1:21:01 uh,
1:21:02 big money through the,
1:21:03 the certification as far as I know.
1:21:06 So,
1:21:07 uh,
1:21:07 in Korea as well,
1:21:08 uh,
1:21:08 there are some,
1:21:09 uh,
1:21:10 the,
1:21:10 that industry,
1:21:11 uh,
1:21:12 the,
1:21:12 uh,
1:21:13 uh,
1:21:13 uh,
1:21:13 I may call it the CEA industry or CA the downstream businesses.
1:21:18 Uh,
1:21:18 and,
1:21:18 uh,
1:21:19 there's still
1:21:21 a long way to go,
1:21:22 in fact,
1:21:23 so,
1:21:24 uh,
1:21:24 they,
1:21:24 uh,
1:21:25 there are,
1:21:25 there are some,
1:21:26 uh,
1:21:26 CA uh institutions,
1:21:28 uh,
1:21:28 as I just mentioned in the uh presentation,
1:21:32 they developed from the,
1:21:33 the export inspection,
1:21:35 their origin,
1:21:36 uh,
1:21:36 a long,
1:21:37 long time ago.
1:21:38 So
1:21:38 they're trying to make a business,
1:21:40 uh,
1:21:40 the,
1:21:41 the,
1:21:41 there are some uh efforts to make a CEA business develop and prosper.
1:21:46 But as far as I know,
1:21:47 the,
1:21:48 the,
1:21:48 there's uh some
1:21:50 uh,
1:21:51 some Korean uh CAE
1:21:54 institutions are not
1:21:55 uh globally competitive yet.
1:21:59 That's what I heard from those in,
1:22:01 in the field.
1:22:06 Javier.
1:22:07 OK,
1:22:07 so I,
1:22:08 I,
1:22:08 I see Chavia as a
1:22:10 follow up question.
1:22:11 Yeah,
1:22:12 so I have uh 22 questions.
1:22:14 So one is,
1:22:16 and,
1:22:16 and moving away a little bit from compatibility standards.
1:22:20 It's a follow up.
1:22:21 First question is a follow up for China on um
1:22:24 on this top down
1:22:25 and to what extent at the early stages there
1:22:28 were mandatory standards going to areas like quality,
1:22:32 not necessarily on,
1:22:34 on the,
1:22:34 the key areas where normally these mandatory standards are like food safety,
1:22:39 health,
1:22:39 and so on.
1:22:40 But whether they mandate it
1:22:42 also
1:22:43 uh issues on quality using through SOEs and and
1:22:47 and industry more more general
1:22:49 and the second question for both is
1:22:52 on the role of other policies,
1:22:54 right?
1:22:54 Because
1:22:55 I want to understand better as well whether they had been heavily subsidizing,
1:22:59 for example,
1:23:00 conformity.
1:23:01 And certification,
1:23:02 right?
1:23:02 Because I think one challenge that we have is that we look only at the
1:23:06 trajectory of the standards
1:23:08 we may be missing the full package of the quality policies,
1:23:11 right?
1:23:12 And I know that in China there has been for a long time some subsidies to
1:23:16 certification and whether these are active and what's
1:23:19 your views for both cases into what role for these complementary policies.
1:23:24 Thanks.
1:23:28 Uh
1:23:30 Vanessa,
1:23:30 you want to first answer that?
1:23:32 Yeah,
1:23:32 I,
1:23:32 I think that's to answer,
1:23:34 to have a simple question regarding what uh Xabi just raised this.
1:23:38 Uh,
1:23:38 I do agree that,
1:23:39 you know,
1:23:39 most the mandatory,
1:23:40 uh,
1:23:41 uh,
1:23:42 standard,
1:23:42 you know,
1:23:43 heavily focused on this,
1:23:44 uh,
1:23:45 safety issues.
1:23:46 And,
1:23:46 uh,
1:23:46 I mean,
1:23:47 as uh Professor Gong just mentioned that the government
1:23:50 cannot intervene in all the aspects of the,
1:23:52 uh,
1:23:53 the industry.
1:23:53 So they all they decide not to intervene,
1:23:56 uh,
1:23:56 when,
1:23:56 you know,
1:23:57 the time uh progress and uh it it will.
1:23:59 To leave the uh the whole industry or the,
1:24:02 uh,
1:24:02 you know,
1:24:02 association to develop their,
1:24:04 uh,
1:24:04 you know,
1:24:05 own industry specific um
1:24:07 standards.
1:24:08 So I think uh take that regard that,
1:24:11 you know,
1:24:11 for the quality issue,
1:24:12 or probably they want to just like,
1:24:14 you know,
1:24:15 make it a
1:24:15 a high level and also put certain
1:24:18 principles,
1:24:18 but for the detailed uh
1:24:20 implementation that they will leave to the industry or even the the enterprise to
1:24:25 make this self disciplined rules.
1:24:29 Professor Gong,
1:24:29 do you have uh additional comment?
1:24:32 No,
1:24:32 yeah,
1:24:32 I,
1:24:32 I,
1:24:32 I totally agree.
1:24:33 I think,
1:24:33 uh,
1:24:34 um,
1:24:34 you know,
1:24:34 the government's role is to maintain essentially minimum level of quality
1:24:38 which many times just is equal to safety,
1:24:41 I would say.
1:24:42 Um,
1:24:43 uh,
1:24:43 you know,
1:24:43 the,
1:24:43 the government is of course is concerned about public outcry that the
1:24:47 the government.
1:24:48 It's not doing anything when it comes to,
1:24:49 you know,
1:24:49 shorting products put on the market.
1:24:51 Uh,
1:24:52 so,
1:24:52 I think it does want to do that but you know,
1:24:53 when it comes to uh uh a much higher boss,
1:24:56 um,
1:24:57 it's pretty much uh left to the industry,
1:24:59 left to the uh the trade groups,
1:25:01 companies themselves to uh to promote
1:25:04 things that essentially serves their interest,
1:25:06 I would say.
1:25:13 OK,
1:25:13 so if I add just one,
1:25:15 the one thing uh from uh uh from what I learned during my researching,
1:25:21 uh,
1:25:22 in principle,
1:25:22 we say the,
1:25:24 the full re technical regulations for mandatory things,
1:25:27 uh,
1:25:27 we needed to uh this uh refer to the standard.
1:25:31 But uh even uh among the ministries,
1:25:34 I noticed that there are some kind of
1:25:37 Uh,
1:25:37 I don't know what to say,
1:25:39 competition or,
1:25:41 uh,
1:25:41 because the standard is an area of one particular,
1:25:44 uh,
1:25:45 the,
1:25:45 the agency,
1:25:46 for example.
1:25:47 So the,
1:25:48 when they want to,
1:25:49 when they needed to make a,
1:25:50 a new regulation,
1:25:52 so the,
1:25:53 they,
1:25:53 in principle,
1:25:54 they know,
1:25:54 uh,
1:25:55 we,
1:25:55 we needed to refer to the,
1:25:56 uh,
1:25:57 the existing standard,
1:25:58 and then,
1:25:59 uh,
1:25:59 but,
1:25:59 uh,
1:26:00 in some cases,
1:26:01 uh,
1:26:01 uh,
1:26:01 they,
1:26:02 they,
1:26:02 they make a technical regulations without uh referring to it.
1:26:06 Uh,
1:26:06 the,
1:26:07 and they,
1:26:07 uh,
1:26:08 they also felt,
1:26:09 uh,
1:26:10 uh,
1:26:10 if you,
1:26:11 if they use uh the standards,
1:26:13 uh,
1:26:13 the,
1:26:14 the,
1:26:14 uh,
1:26:15 KS standard on the the other agency,
1:26:18 so they are put under that kind of feeling,
1:26:20 so.
1:26:21 Uh,
1:26:22 that's why the government,
1:26:23 uh,
1:26:23 uh,
1:26:23 in 2015,
1:26:25 uh,
1:26:25 they made a new system of uh what I call the
1:26:28 the pango standard participation system.
1:26:30 So,
1:26:31 uh,
1:26:31 so,
1:26:32 uh,
1:26:32 it,
1:26:33 uh,
1:26:33 that is the,
1:26:34 uh,
1:26:35 what I found regarding that kind of uh
1:26:38 the technical regulations of the practices in Korea.
1:26:43 It is only 11 aspect I think.
1:26:47 OK,
1:26:47 sorry,
1:26:47 uh,
1:26:48 I,
1:26:48 I also wanna add one more point that I,
1:26:50 uh,
1:26:50 just occurred to me.
1:26:51 Um,
1:26:51 you know,
1:26:52 we have to keep in mind that
1:26:54 in China,
1:26:56 you know,
1:26:56 we have a,
1:26:56 a,
1:26:57 a very complex marketplace where we have many,
1:26:59 many
1:27:00 players.
1:27:01 Some of them are small microbusinesses,
1:27:04 you know,
1:27:04 catering to sort of the lower end of the market,
1:27:07 um,
1:27:07 you know,
1:27:07 we still have a
1:27:08 Very large population here in China who don't have a lot of money,
1:27:12 you know,
1:27:12 they're actually buying things on the cheap.
1:27:14 Um,
1:27:14 so,
1:27:15 I think,
1:27:15 uh,
1:27:15 you know,
1:27:15 if you have a mandatory standards to a very high level,
1:27:19 essentially,
1:27:20 it would put a lot of businesses,
1:27:22 small businesses
1:27:23 out of business,
1:27:24 um,
1:27:25 and,
1:27:25 and there will also be,
1:27:26 um,
1:27:27 an issue for
1:27:28 issue of affordability for Of low-income families in China,
1:27:32 um,
1:27:33 that uh can't afford a sort of more of a high-end,
1:27:35 high-quality products.
1:27:37 So,
1:27:37 I think probably that's also another concern from a policy perspective,
1:27:41 uh,
1:27:41 that,
1:27:42 you know,
1:27:42 uh,
1:27:42 you want to,
1:27:43 uh,
1:27:44 make sure that the
1:27:45 employment is not so much affected,
1:27:47 uh,
1:27:48 people have access to affordable products,
1:27:51 things of that nature.
1:27:55 OK.
1:27:55 So,
1:27:56 so thanks a lot.
1:27:56 I,
1:27:57 I would like to
1:27:59 To,
1:27:59 to,
1:27:59 to thank you,
1:28:00 uh,
1:28:01 for,
1:28:01 for this,
1:28:01 uh,
1:28:02 interesting conversation and,
1:28:03 and also to conclude with one final,
1:28:05 uh,
1:28:06 you know,
1:28:06 question I think both,
1:28:08 uh,
1:28:08 presentation
1:28:09 really stressed the importance of having,
1:28:11 uh,
1:28:12 you know,
1:28:12 leaders.
1:28:14 are aware of the importance of of standard development and the
1:28:19 development of quality infrastructure.
1:28:21 And we hope our
1:28:23 report will contribute to,
1:28:25 to,
1:28:25 to,
1:28:26 to,
1:28:27 to make,
1:28:27 uh,
1:28:28 you know,
1:28:28 to promote this,
1:28:29 this awareness.
1:28:30 So I wanted to ask our our speaker.
1:28:33 You know,
1:28:34 I heard a lot of,
1:28:35 you know,
1:28:36 good impact,
1:28:37 uh,
1:28:37 of,
1:28:37 of standard in your respective studies,
1:28:40 uh,
1:28:40 across,
1:28:41 you know,
1:28:41 many,
1:28:42 uh,
1:28:42 dimension between economic growth,
1:28:44 access to global market,
1:28:46 innovation,
1:28:46 competition,
1:28:48 uh,
1:28:48 political influence.
1:28:49 So if you wanted to pick some,
1:28:51 you know,
1:28:51 key indicators or some,
1:28:54 you know,
1:28:54 key metrics for success in,
1:28:56 in your story that we could use,
1:28:58 uh,
1:28:59 to promote awareness of the importance of standard.
1:29:01 What would you stress
1:29:02 as like 23 key.
1:29:05 Major
1:29:06 uh indicators.
1:29:11 Um,
1:29:12 I,
1:29:12 I,
1:29:12 I,
1:29:12 I would,
1:29:13 uh,
1:29:13 point to,
1:29:14 um,
1:29:15 patents,
1:29:16 uh,
1:29:16 you know,
1:29:16 I think,
1:29:17 you know,
1:29:17 patent,
1:29:18 uh,
1:29:18 standards serve a lot of purposes,
1:29:20 but I think,
1:29:20 uh,
1:29:20 you know,
1:29:21 it,
1:29:21 it's a,
1:29:22 a,
1:29:22 a major venue of innovation
1:29:25 for sure,
1:29:26 uh,
1:29:26 and,
1:29:26 you know,
1:29:26 associated with innovation.
1:29:28 Of course,
1:29:28 there will be
1:29:29 patents.
1:29:29 Um,
1:29:30 so,
1:29:30 uh,
1:29:31 uh,
1:29:31 I think,
1:29:32 uh,
1:29:32 you know,
1:29:32 you,
1:29:33 you want to really look at the,
1:29:34 uh,
1:29:35 the extent of intellectual property protection,
1:29:38 um,
1:29:38 you know,
1:29:39 the easiness of filing patterns,
1:29:41 uh,
1:29:41 those kind of things are,
1:29:43 are very important in my view.
1:29:46 Uh,
1:29:46 I just want to add one more.
1:29:47 Uh,
1:29:48 so,
1:29:48 uh,
1:29:48 I want to highlight that market-driven.
1:29:50 Uh,
1:29:50 so,
1:29:51 uh,
1:29:51 I think,
1:29:51 you know,
1:29:52 there might be some conceptual,
1:29:54 uh,
1:29:54 misunderstanding of the China system that's,
1:29:56 uh,
1:29:57 most people will think that it's a mostly
1:29:59 centralized system.
1:30:00 But actually,
1:30:01 in this specific,
1:30:02 uh,
1:30:02 standardization process that's,
1:30:04 uh,
1:30:04 At least from our
1:30:06 research and observations,
1:30:07 um,
1:30:07 I mean,
1:30:08 having
1:30:09 lived in China for such a long time that
1:30:11 we all agree that,
1:30:12 you know,
1:30:12 um,
1:30:13 it's driven by mostly driven by the market,
1:30:15 although the the government also want to give some guidance,
1:30:18 but,
1:30:18 uh,
1:30:19 you know,
1:30:19 the market is the,
1:30:21 it's taking the the leading role.
1:30:27 OK,
1:30:27 so,
1:30:27 uh,
1:30:28 in my last section on lessons for the developing countries,
1:30:32 uh I divided into two,
1:30:33 the,
1:30:33 the 4,
1:30:34 the standard adopters and the 4 standard,
1:30:37 uh,
1:30:37 the authors,
1:30:38 uh,
1:30:38 I think,
1:30:39 uh,
1:30:40 we have the uh some uh
1:30:43 I,
1:30:43 I'd like to uh uh focus on the,
1:30:45 the standard adapter.
1:30:47 So,
1:30:47 uh,
1:30:47 in,
1:30:48 uh,
1:30:48 some countries,
1:30:49 uh,
1:30:49 for developing countries in early stages,
1:30:51 uh,
1:30:52 uh,
1:30:52 from my research,
1:30:53 I,
1:30:54 I learned that the
1:30:56 number of standards,
1:30:57 uh,
1:30:58 the number of standards used in,
1:31:00 in,
1:31:00 in,
1:31:00 in a particular country,
1:31:02 uh,
1:31:02 adopted uh used by firms.
1:31:05 Uh,
1:31:05 that is the one of the indicators,
1:31:07 uh,
1:31:08 uh,
1:31:08 the,
1:31:09 uh,
1:31:09 for.
1:31:10 Uh,
1:31:10 the,
1:31:11 uh,
1:31:11 potential,
1:31:11 I guess,
1:31:12 for the,
1:31:12 uh,
1:31:13 the industry development in,
1:31:14 in some areas.
1:31:16 So
1:31:16 otherwise,
1:31:17 they cannot uh make uh exporter,
1:31:20 the,
1:31:20 the,
1:31:21 that's why I think that the,
1:31:22 the,
1:31:23 the number of uh uh the standard or international standard
1:31:27 uh used in some in the country industries uh can be
1:31:32 uh some uh uh uh indicator of uh promotional uh aspect.
1:31:43 Uh,
1:31:43 unfortunately time is,
1:31:44 is up.
1:31:44 I,
1:31:44 I see,
1:31:45 and uh we have to,
1:31:46 to close this down.
1:31:47 So let me
1:31:48 conclude again by
1:31:50 Thanking Professor Lee,
1:31:51 Professor Gong,
1:31:52 and,
1:31:52 and Doctor Zhang for their
1:31:54 contribution to the,
1:31:55 to the report and for this
1:31:57 interesting conversation.
1:31:59 Um,
1:32:01 So thanks again and,
1:32:03 and uh
1:32:05 thanks to the participants and I hope to see you at the next
1:32:08 uh WDR seminar.
1:32:10 Thank you.
1:32:11 And thank you very much guys.
1:32:13 Thank you thank you.
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