General Secretary Hu Jintao pointed out that in order to speed up development, it is essential for enterprises to develop imported technologies into more advanced ones and to improve their independent research ability. Premier Wen Jiabao noted that competition in the future would be in the field of intellectual property last year. At the beginning of 2004, Vice-Premier Wu Yi also pointed out that we should consider our position, identify our needs and push forward our IP strategy. These statements made by central government leaders have enabled us to understand the situation in our country and the world we are facing.

As a result of technology development and economic globalization, the era of a knowledge economy has arrived. The importance of IP has been identified by the international community. In such a community, respecting others' IPR and having, utilizing and protecting IPR of our own are two conditions for being part of the global economy and gaining an upper hand in it. Many countries consider creating and utilizing IP as an important way to improve their national strength and to accelerate a balanced economic development.

As for China, formulating the national IP strategy is the requirement posed by the opening-up policy and social and economic development. It is a necessary condition for us to meet the challenge of the rapidly-changing international IP trends and to protect the national interests and economic security. It is also good for establishing a sound and fair market and for improving the creative ability and competitive edge of our country. This important event has begun in 2005.

In January 2005, the State Council set up the National IP Strategy Formulating Working Group, with Vice-Premier Wu Yi as the chairman and 28 heads from central departments including SIPO as its members, in order to organize and coordinate the work in national IP strategy formulation. On June 30, 2005, Premier Wu Yi, the chairman of the Working Group, held the first meeting. All the group members and heads from various ministries and commissions were present at the meeting. Documents were discussed and Premier Wu Yi made an important speech. The Chinese National IP Strategy is being formulated on full-scale and has entered substantive phase. We wish it be concluded by year's end.