Qiu Han: The digital transformation of micro, small and medium-sized enterprises is the key to the integration of the digital economy and the real economy

Qiu Han

Senior Vice President of PayPal

Chief Executive Officer, China

Hannah QIU

SVP; China CEO, PayPal

Q: Digital technology is being fully integrated into all areas of economic and social development. How can we bridge the gap and make the digital economy accessible to more people?

A: Over the past decade, China has made great strides in its digital economy and is a global leader. On the consumer side, digitalization has penetrated into all aspects of people's lives; On the production side, enterprises are also deploying digital solutions in large numbers, and although they still face certain challenges, the integration of the digital economy and the real economy has become an inevitable trend.

In this process, micro, small and medium-sized enterprises are an important part of the real economy, and the digital transformation of micro, small and medium-sized enterprises is also the key to the integration of the digital economy and the real economy. The digital economy is currently evolving from the existing form to the innovative development of a new model, and for the digital transformation of small and medium-sized enterprises, digital finance and capital circulation play an important role in guaranteeing the digital transformation of small and medium-sized enterprises, including the supporting role of digital payment as the underlying infrastructure.

PayPal is the first licensed foreign-owned company to be approved to offer online payments in China. We pay particular attention to government and regulatory policies to help MSMEs drive the development of the real economy. Compared with large enterprises, micro, small and medium-sized enterprises have relatively weak anti-risk capabilities, and need more support from governments and regulators, as well as platform companies like PayPal to give them more help. As the theme of this forum is, this is one of our "common challenges, shared responsibilities".

Q: Technological progress has brought earth-shaking changes to the social economy, and at the same time, it has put forward more requirements for the labor force. On the other hand, the workforce needs to continuously upgrade and acquire new skills. How can governments and businesses provide training to keep the workforce up to date with technological changes?

Answer: The progress of science and technology is bound to bring a painful period for the development of enterprises. Enterprises need to start from the aspects of people's thinking transformation, skill matching and skill transformation, and provide resources and channels that are conducive to people's skill improvement and career development, so as to comprehensively enhance team resilience.

As a multinational company, PayPal provides employees with rich opportunities for workplace training and career improvement, and regularly invites workplace professionals to give lectures to share work experience, teach how to improve professional ability, relieve employee pressure, etc.; At the same time, the company also offers a large number of online courses through PayPal Learning Academy to encourage employees to improve their professional skills and experience. In 2023, the company advocated and promoted a number of trainings based on practical exercises in China, and achieved positive feedback and results.

In addition, the government provides various subsidies and support for enterprises for training, especially for advanced science and technology enterprises, and gives policies for leading science and technology talents, which are also of practical significance for the digital transformation of enterprises and the improvement of employee skills training.

Q: Digital technology is being integrated into every aspect of socioeconomic development. How should we bridge the gap so that the digital economy can benefit more groups?

A: Over the past decade, China’s digital economy has made significant progress and is in a leading position globally. On the consumer side, digitalization has permeated every aspect of many people’s lives; on the production side, enterprises are also deploying digital solutions on a large scale. Although there are still specific challenges, integrating the digital economy with the real economy is increasingly the reality.

Micro, small and medium-sized enterprises (MSMEs) make up a significant part of the real economy, and their digital transformation is critical to integrating the digital and real economies. The digital economy is evolving from enhancing its existing forms to innovating new models. For the digital transformation of MSMEs, digital finance and circulation of funds play a crucial role in ensuring this transition, including the support provided by digital payments as a foundational infrastructure.

PayPal is the first foreign company licensed to provide online payment services in China. We pay special attention to the policies of the government and regulatory authorities that help MSMEs promote the development of the real economy. Compared to large enterprises, MSMEs have relatively weaker risk tolerance and resistance and need more support from the government and regulatory bodies. They also need support from companies like PayPal to provide them with more help. As the theme of this forum suggests, this is one of our “common challenges, shared responsibilities.”

Q: Advances in science and technology place new demands on labor. New entrants to the labor market require the right skills, while the labor force, on the whole, needs to upgrade and master new skills. How should governments and enterprises provide the necessary training to help the labor force keep up with changes in technology?

A: Technological progress is bound to bring a period of growing pains for businesses. Companies need to start with people, specifically the mindsets of employees, skill matching, and transferrable skills, providing resources and channels that facilitate skill enhancement and career development. By doing so, the company can inherently strengthen the team’s resilience. As a multinational company, PayPal offers our employees a wealth of workplace training and career development opportunities, regularly inviting professionals to give talks, share work experiences, teach how to enhance professional skills, and alleviate employee stress, among other topics. Additionally, the company provides many online courses through the PayPal Learning Academy, encouraging employees to enhance their professional skills and experience. In 2023, the company advocated and launched multiple training initiatives in China focusing on practical exercises, which have received positive feedback. In addition, the various subsidies and support governments provide to companies for training have tangible significance for enhancing employee skills. In particular, advanced technology companies should receive increased support, and leading tech talents should be given incentives backed by policies.