Gasgoo Munich- Speaking on October 23 at the 14th Automobile & Environment Innovation Forum and the 8th Gasgoo Awards ceremony "China Solutions, Global Value"—hosted by Gasgoo—Fu Yuwu laid out a dual imperative. He is honorary chairman of the Society of Automotive Engineers of China (SAE-China) and the China Automotive Talent Institute (CATI). The industry's innovation system, he argued, must not only crack "hard" technologies that choke off progress but also accelerate the buildup of "soft" power. That power requires a joint effort from academia, research, and application to forge a new ecosystem and create fresh value.
Image source: Gasgoo
China's shift from development-oriented reform toward construction-driven and inclusive reform offers a lesson for industrial growth. For the auto sector, the priority is strengthening soft power. That begins by cultivating the "sunshine, rain, and soil" for innovation—particularly original breakthroughs—creating an environment where talent can rise to the top.
Equally critical is establishing a rule-of-law mindset to safeguard the innovation ecosystem. The urgency of legal management is becoming clear, given current realities. Fu noted that while China's smart-connected and new-energy sectors are booming—boasting the world's most complete supply chain and an overall lead—the industry's image is being tarnished. Cutthroat internal rivalry, disorderly competition, inefficiency, and chaotic market behavior are taking a heavy toll.
Fu emphasized that the core issue isn't a shortage of laws or policies. Instead, the damage stems from a failure to enforce existing regulations across many areas. The Chinese auto industry, he warned, must transition toward rule-based management.
Beyond legal governance, building resilience requires adhering to ESG standards—aligning sustainable development with environmental harmony and social responsibility. Fu warned that the industry must quickly close the gap in ESG, or risk stumbling in global markets. Yet ESG cannot rely solely on administrative fiat. It demands a boost in soft power and a genuine respect for talent—especially when economic headwinds hit. Talent, after all, is the primary resource. The industry must also deepen collaboration and pursue win-win outcomes, integrating R&D, production, supply, sales, and service across the entire value chain.
Looking ahead, Fu predicted that China will achieve major breakthroughs in core technologies, including basic software, within the next few years. As governance and inclusive reforms take hold, the industry is set to move further toward legalization and deeper integration into the global market.
