On May 8, 2015, China Information Technology Industry Federation (CITIF) and the Center for International Economic and Technological Cooperation of the Ministry of Industry and Information Technology (CIETC-MIIT) jointly organized a seminar on “2015 European Digital Single Market (DSM) Strategy”. Mr. Luigi Gambardella, Chairman of China-EU Digital Association (ChinaEU) and Vice President of Telecom Italia, presented the plan, mainly focusing on two aspects: “why Europe needs a Digital Single Market” and “the impact of this strategy on China”. Among the participants, there were representatives from Alibaba, ZTE Corporation, China Putian, CEC, State Grid Corporation of China, AsiaInfo, China Standard Software Co., Ltd., China Academy of Information and Communication Technology, CCID Institute, Macro Euro-China Entrepreneurs Club (MECEC), the American AT&T and other research institutes and associations.
The European Digital Single Market Strategy was officially launched on May 6. Today, the European digital market is extremely fragmented, with 28 EU member countries having their independent rules and regulations. The current situation does not facilitate the healthy development of the digital economy. The main purpose for the EU to implement the digital single market strategy is to eliminate regulatory barriers among the 28 member countries and unify the markets of these countries into a single market. If this strategy is successfully implemented, it will bring 415 billion euros of annual economic growth to the EU.
Consumers, SMEs and start-ups, and the industry would be the main beneficiaries of the Digital Single Market. For consumers, it means more choices, better telecom and Internet services, greater transparency and consumer protection, more innovative products and services and more job opportunities. For SMEs, the booming cross-border business will bring a market of more than 500 million consumers, lower costs for cross-border business, lower cross-border parcel delivery costs and lighter burdens in the process of dealing with public sectors. For the industry, it means faster market development, fairer competition between traditional players and newcomers, more public investment and cooperation opportunities, as well as better and safer use of digital technologies.
The strategy builds upon three main pillars. The first pillar is to provide better digital products and services for consumers and enterprises throughout Europe; the second pillar is to create a favorable environment for the prosperity and development of digital networks and services; the third pillar is to maximize the growth potential of the digital economy. These three pillars contain 16 specific action measures, which the European Commission hopes to complete by the end of 2016.
Luigi said the EU strategy would also have a positive impact on “going global” ambition of Chinese companies. The implementation of the European Digital Single Market Strategy would enable Europe to become the world’s richest digital market and make it easier for Chinese enterprises to enter Europe. Today, it is quite difficult for Chinese enterprises to enter the European market. This is because the 28 EU member states have their independent set of rules and regulations, which means that if a Chinese enterprise wants to operate across Europe, it would need to open 28 different stores and follow the rules and regulations of the 28 countries. However, if Europe realized a Digital Single Market, an enterprise could access a market of 500 million consumers by opening a single store, making the market entry much more convenient. Even if a Chinese company has no plans to expand into the European market, it is still important that it understands and keeps abreast with the European legislative process, as rules and regulations set in the EU are likely to be followed by other regions as well.
Before the meeting, Luigi and Ms. Gao Sumei, Executive Secretary General of CITIF, had a friendly talk on bilateral cooperation and other issues.Source: 中国电子信息行业联合会/ China Information Technology Industry Federation (CITIF)