Bioeconomy: Theory and Practice 9811961638, 9789811961632

Table of contents :
Preface
Contents
Part I The Theory Part
1 Overview
1.1 Major Issues Concerning Modern  Economic and Social Development
1.1.1 There Are Three Major Issues with the Human Society
1.1.2 The Modern World Economy is Still Exploring a New Way Out
1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future
1.2.1 The Scientific and Technological Revolution is the Core Driving Force Leading the Economic Society Out of Economic Crises
1.2.2 The Biotechnological Revolution Will Dominate a New Round of Technological Revolutions
1.2.3 Bioeconomy: The New Economic Pattern Dominated by Biotechnological Revolutions
1.3 The Bioeconomy: Leading Transformations in Economics
1.3.1 Economics is Facing Immense Difficulties
1.3.2 The Theoretical Foundation of Pan’s Bioeconomy
1.3.3 The Theoretical Connotation of Pan’s Bioeconomy
1.4 The Bioeconomy: Giving Humanity a Fresh Pair of Eyes
1.4.1 The Development History of Pan’s Bioeconomy
1.4.2 The Foundation and Unique Background for the Author to Put Forward Pan’s Bioeconomy
1.4.3 The Important Influence and Contributions of Pan’s Bioeconomy
2 The Bioeconomic Theory
2.1 Econo-Bionomy (Bioeconomics)
2.1.1 Basic Knowledge
2.1.2 An Outline of Studies Related to Bioeconomics
2.1.3 The Great Significance of Pan’s Bioeconomics
2.2 Econo-Genology
2.2.1 Basic Knowledge
2.2.2 What is Econo-Genology?
2.2.3 The Research History of Economic Genetics
2.2.4 Prospects of Econo-Genology
2.2.5 The Strengths of Sinobioway
2.3 Socio-Genology
2.3.1 Basic Concepts of Sociology
2.3.2 Socio-Genology
2.3.3 The Guiding Significance of Socio-Genology on Social Management and Reforms
2.3.4 To Provide Scientific Evidence for Building a Community of Shared Future for Humankind
2.4 The Triad Theory
2.4.1 The Numbers and World in the Thought of Ancient Scholars
2.4.2 From Monism to Triad Theory: New Advances in Understanding the World
2.4.3 The Guiding Significance of the Triad Theory for China
2.5 Theory of Information Carrier of Life
2.5.1 What is Life?
2.5.2 Life is the Information Carrier Designed by the Wise Man
2.5.3 The Significance of the Theory of Information Carrier of Life
2.6 The Life Capital Theory
2.6.1 Capital and Capitalism
2.6.2 Socialist Practice
2.6.3 Communist Outlook
2.6.4 The Life Capital: The Brand-New Theory of Capital Proposed by the Author
2.6.5 The Significance of the Life Capital Theory
2.7 Theory of Biological Reconstruction of Assets
2.7.1 Basic Concepts
2.7.2 Biological Reconstruction of Economy (Assets)
2.7.3 The Significance of the Theory of Biological Reconstruction of Assets
2.8 The Medical Model of Stock Market
2.8.1 The Conventional Idea: The Stock Market is Unpredictable
2.8.2 The Medical Model of the Stock Market
2.8.3 The Practical Significance of the Medical Model of the Stock Market
2.9 Theory of Asymmetric Management Information
2.9.1 Basic Knowledge
2.9.2 The Theory of Asymmetric Management Information
2.9.3 The Prospects and Future of the Theory of Asymmetric Management Information
2.10 The Corporate Theory of the State
2.10.1 Basic Knowledge
2.10.2 The Corporate Theory of the State
2.10.3 The Corporate Theory of the State and State Governance
2.10.4 The Significance of the Corporate Theory of the State
3 The Bioeconomic Model
3.1 The Bioeconomy Experimental Zone
3.1.1 Basic Concepts
3.1.2 Theoretical Foundation
3.1.3 Cases of Planning
3.2 Big Industry
3.2.1 Basic Concepts
3.2.2 Theoretical Foundation
3.2.3 Cases of the Big Industry
3.3 The Bioeconomic Community
3.3.1 Basic Concepts
3.3.2 Theoretical Foundation
3.3.3 Planning of the Sinobioway Commune
3.4 The Good Healthcare Practice (GHP)
3.4.1 Basic Concepts
3.4.2 Theoretical Basis
3.4.3 The Planning and Design of the GHP
3.5 Forest and Wellness
3.5.1 Basic Concepts
3.5.2 Theoretical Foundation
3.5.3 Design and Planning
3.6 Bioeconomy Incubators
3.6.1 Basic Concept
3.6.2 Theoretical Foundation
3.6.3 The New Drug R&D and Planning in Bioeconomy Incubators
3.7 The Happy Senior Living Community
3.7.1 The Basic Models of Senior Wellness
3.7.2 Theoretical Foundation
3.7.3 Happy Old-Age Care Planning
3.8 Super-Good Agricultural Practice (S-GAP)
3.8.1 Basic Concepts
3.8.2 Theoretical Foundation
3.8.3 Planning and Practice
3.9 The Biofinancial Supermarket
3.9.1 Basic Concept
3.9.2 Theoretical Foundation
3.9.3 Planning Design
3.10 The Biolab Supermarket
3.10.1 Basic Concept
3.10.2 Theoretical Foundation
3.10.3 Basic Idea
4 The Bioeconomic Industry
4.1 The Basic Framework of the Bioeconomic Industry
4.1.1 The Third Stage of the Bioeconomic Industry: The Bioeconomic Industry
4.1.2 The Second Stage of the Bioeconomy Industry: The Big Industry
4.1.3 The First Stage of the Bioeconomic Industry: The Bioindustry
4.2 The Theories and Basic Principles of the Bioeconomic Industry
4.3 A Framework of the Statistics Index System of the Bioeconomic Industry
Part II The Practice Part
5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World
5.1 The Significant Achievements Made by Sinobioway
5.1.1 Sinobioway is the Place of Origin for the Global Bioeconomy
5.1.2 The Establishment of the Bioeconomic System
5.1.3 The Establishment of the First Bioeconomy Experimental Zone in the World
5.1.4 Successful Operation of the First Modern Biomedicine Enterprise in China: Shenzhen Kexing
5.1.5 Sinobioway Created Remarkable Achievements in the Bioindustries in China and around the World
5.1.6 Sinobioway Established a World-Level New Technology System for Crop Breeding
5.1.7 Sinobioway Has Developed Biointelligence Technology (Strong Artificial Intelligence)
5.1.8 The National Gene Center Has been Built under the Direction of Sinobioway
5.1.9 Sinobioway is Building Three Sinobioway Bioindustrial Parks of 100 Billion Level
5.1.10 The Three Predictions Have Been Proved True
5.2 The Development Planning of Sinobioway
5.2.1 Strategic Goal
5.2.2 Strategic Thoughts
5.2.3 Strategic Planning
5.2.4 Solving China’s Health Problems: Sinobioway’s Big Health Industry Plan
5.2.5 Solving China’s Three Rural Issues: Sinobioway’s Big Agricultural Industry Plan
6 Regional Practice: The Bioeconomy Provides a New Idea for the Development of Mountainous Areas
6.1 Mountainside Economic Belts and Special Economic Zones are the New Growth Poles of the Chinese Economy
6.2 Sinobioway Provides a “Sinobioway Solution” for China’s Rural Revitalization Strategy
6.3 The Bioeconomy is the Fundamental Way Out for Solving the Three Rural Issues
7 National Practice: The Bioeconomy Has Found the True Answer to China’s Economic Miracle
7.1 China Has Created Miracles in World Economic History
7.2 China Becoming the World’s Largest Economy is a Historical Necessity
7.3 The Bioeconomy Has Revealed the Source of China’s Economic Miracle
7.3.1 The Bioeconomy is the Password to Crack the Mystery of China’s Miracle
7.3.2 The Bioeconomic Model Provides a New Pattern for China’s Economic Development
7.3.3 The Bioeconomic Theory Provides a Scientific Foundation for China’s Great Rejuvenation
Part III The Summary Part
8 The Bioeconomy is an Inevitable Path of Human Development
8.1 The Bioeconomy Provides a Scientific Foundation for the Socialist Market Economy
8.2 The Bioeconomy Provides a Unique Perspective for Humans to Truly Understand the World
8.3 The Bioeconomy Provides the Right Direction for Human Peace and Sustainable Development
9 Concluding Remarks
Postscript

Citation preview

Aihua Pan

Bioeconomy Theory and Practice

Bioeconomy

Aihua Pan

Bioeconomy Theory and Practice

Aihua Pan Sinobioway Group Co., Ltd. Beijing, China

ISBN 978-981-19-6163-2 ISBN 978-981-19-6164-9 (eBook) https://doi.org/10.1007/978-981-19-6164-9 Jointly published with Science Press © Science Press 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publishers, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publishers nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publishers remain neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore

Preface

The twenty-first century is the century of biology—it has become a scientific consensus. How to interpret this sentence? The author believes that it has three implications. First, the life science will become a leading discipline, sugguesting its relevant theories, approaches, and models will provide new ways of thinking, methods, and approaches for the research in other disciplines, bringing revolutionary changes to the research in natural and social sciences, just as physics, mathematics, and chemistry did during the past 200 years as the leading disciplines. Second, the bioindustry will become a pillar industry. Just as the industry became a pillar industry under the leadership of physics and the same with information industry and electronics, the bioindustry will become the leading industry of this century under the leadership of life sciences. Third, the human being will enter the era of bioeconomy. The human being, having gone through the agrarian economy led by agricultural technology, industrial economy led by industrial technology, and information economy led by information technology, will enter a new economic era, i.e., the bioeconomic era led by biotechnology. Since the clarification of the double helix structure of DNA over 60 years ago, tremendous advances have been made in the fields of the life science and biotechnology, such as recombinant DNA technology, polymerase chain reaction (PCR) technology, the Human Genome Project (HGP)1 in particular, breakthroughs in gene

1

Human Genome Project (HGP) was a large-scale international cross-disciplinary scientific research project, put forth by American scientists in 1985 and initiated in 1990, performed in the USA, the UK, France, Germany, Japan, and China with the goal of determining the 3 billion base pairs that make up human DNA and of identifying and mapping all of the genes and their sequences of the human genome so as to achieve the ultimate goal of deciphering human genetic information. v

vi

Preface

sequencing, gene knock out/in2 , the development of CRISPR/Cas9 and other geneediting technologies3 , as well as the combination of life sciences and big data. These have provided an increasingly clearer understanding of genes and the nature of life; they will also make the life science become the leading discipline, the bioindustry become a pillar of the economy, and thus the human being will enter the era of bioeconomy. There must be a new guiding theory for the bioeconomic era. The establishment of the discipline requires three conditions: a systematic theory as guidance, a group of people involved in research, and bases for practice and exploration. In this respect, Sinobioway Group4 fully deserves the title as the leader of bioeconomy, because it is the founder of the bioeconomic theory, the creator of the bioeconomic model, and the practitioner of the bioeconomic industry, and it has built the first brandnew bioeconomic system in the world. The bioeconomic system is composed of three aspects: the bioeconomic theory, the bioeconomic model, and the bioeconomic industry. The bioeconomic theory refers to the new theories formed by applying the ideas and approaches of life sciences and medicine in the research of economic and social issues; the bioeconomic model refers to the new economic model created under the guidance of the bioeconomic theory; the bioeconomic industry refers to the industry formed through the integrated and coordinated development of big finance, big market, and big industry by applying the bioeconomic model under the direction of the bioeconomic theory. The core concept of the bioeconomic theory that the author put forward originates in the article DNA Double-Helix will Lead Human into a Biological Century5 published in Acta Scientiarum Naturalium Universitatis Pekinensis (Journal of Peking University [Natural Science Edition]) in 2003. In the article, the auther comprehensively and systematically expounded the concept, definition, implication, and the theory of bioeconomy. It was the author’s first systematic description of bioeconomy. Looking back, it was in 1995 when he first proposed the concept of bioeconomy. During over two decades from 1995 to 2019, he made over a hundred thematic reports on bioeconomy 2 Gene knockout utilizes the property of homologous recombination of cell chromosome DNA and homologous sequences of exogenous DNA to inactivate a specific target gene to study the function of the gene; gene knockin is the technology of targeted insertion of a functional exogenous gene (genes that did not previously exist or have been inactivated) at homologous sequences in cells and in the genome for homologous recombination to obtain gene expression in cells. 3 Gene editing is a new technique for site-specific modifications of the genome. Using this technique, it is possible to pinpoint a certain position in the genome, cut the target DNA fragment, and insert a new gene fragment at that position. 4 Short for Sinobioway Group Co., Ltd., established in 1992, one of the university-owned enterprises of Peking University. It is headquartered at the PKU Biocity to the north of the Old Summer Palace, covering an area of over 173,000 sqm; the company is mainly engaged in the establishment of the bioeconomic system and the development of the bioeconomic industry, with six key investment fields: biomedicine, bioagriculture, bioenergy, bioenvironment, bioservices, and biointelligent manufacturing. 5 DNA Double-Helix will Lead Human into a Biological Century: PAN Aihua: Acta Scientiarum Naturalium Universitatis Pekinensis, 2003, 39(6): 764–769.

Preface

vii

at various conferences, forums, and government sectors at all levels in an effort to actively advocate bioeconomy. He was also invited to give a thematic report on Pan’s Bioeconomy: Theory and Practice at the headquarters of the European Parliament in 2016, during which he comprehensively expounded three questions: What is bioeconomy? What problems can it solve? How do we develop it? He concluded with three points, which drew extensive attention. The human being will enter the era of bioeconomy in 2020; bioeconomy is one path that humans must take for development; the bioeconomic community is the most beautiful home for people in the future. In the past over ten years, bioeconomy has won extensive recognition around the world, though it must be pointed out there are fundamental differences between the author’s bioeconomy and those proposed by many other experts and scholars (This will be described in more details in the following text). Therefore, the term “Pan’s bioeconomy” was unanimously used in the following text during the discussion of the author’s bioeconomy, to distinguish and to show respect for other experts and scholars. The author was awarded the 2015 Pericles International Prize in recognition of the bioeconomic theory he created by applying the approaches of life sciences and medicine in the research of economic and social issues as well as his outstanding contribution to the development of new drugs. The award was given with the words: Professor Pan Aihua is the initiator of the bioeconomy theory. Like the many ancient Greek philosophers such as Gioacchino Da Fiore, he pioneered the organic integration of life sciences and economics with his unique forward-looking thinking and created a bioeconomy theory based on the harmonious development between man and nature, providing a brand-new healthy and sustainable path of human development with agriculture, food, medicine, and environment that supplement each other. The reason for the author’s ability to propose the completely new concept of bioeconomy—Pan’s bioeconomy—is closely related to his knowledge structure, his own development experience, and his personal experience with the development and transformations of the Chinese economy and society. He is equipped with broad and professional background of knowledge in medicine, life sciences, economics, and so on; he has been through ups and downs during the development stages and rich life experiences as a hospital doctor, a researcher in a research institute, a university professor, and a founder and owner-manager of a large-scale enterprise and made remarkable accomplishments in each development stage; he has, in his own development, personally experienced and synchronized with the multiple transformations in China’s social and economic development during its surging forward with great momentum in the past few decades. Therefore, with a comprehensive knowledge structure and distinctive thinking pattern, as well as a forward-looking vision of economic and social development in China and the world at large, the cutting-edge biotechnologies, and the development trends of the bioindustry, he proposed the basic framework of the bioeconomic system by applying the ideas and approaches of life sciences and medicine in the research of economic and social issues; meanwhile, he further put forth a relatively complete bioeconomic system with three inter-supporting and organically integrated aspects of the bioeconomic theory, the bioeconomic model, and the bioeconomic industry; in addition, he created a unique

viii

Preface

path of thinking for the bioeconomic development to guide the development of the bioeconomic industry. The founding course of Pan’s bioeconomy shows that it is systematic and innovative—Pan’s bioeconomy is a brand-new scientific system distinguished from other bioeconomic concepts and directly proves that it is scientific and plausible—Sinobioway Group has created many number-ones in China and the world during its three decades of explorations. The life science is science that studies the laws of the structure, functions, generation, and development of the living species, whereas medicine is a discipline that deals with the treatment of various diseases and illnesses of life through scientific or technological means. The two are closely interrelated but are fundamentally different as the former is mainly about exploring the laws of the free development of the living species, while the latter is mainly about interventions of wellness and diseases. It is a remarkable feature that distinguishes Pan’s bioeconomy from other economic studies to apply the ideas and approaches of life sciences and medicine in the research of economic and social issues. Looking back on the history of economics studies, theories and doctrines emerged in endlessly. The most representative though is An Inquiry into the Nature and Causes of the Wealth of Nations (more often translated as The Wealth of Nations in recent years)6 and the theory of the socialist planned economy revealed in Karl Marx’s Das Kapital. The two, respectively, represented the two main economic models in the world: market economy and planned economy. In a market economy, resources are allocated freely through the market, whereas a planned economy relies on government plans to adjust economic activities, which resemble the life science and medicine in terms of the form. Since reform and opening-up, China has had increasing improvement in the socialist market economy, created a miracle in the economy and won unanimous recognition around the world. The Chinese socialist market economy has set an example of a perfect combination of market economy and planned economy in the history of economic and social development. In this sense, it is highly likely that China’s GDP will surpass that of the USA to become the world’s greatest power as long as there is no war or large-scale social changes. Pan’s bioeconomy is manifested as socialist market economy in terms of the economic form— its foundation and development have found the true answer to China’s economic wonders as the whole world is having troubles in revealing the root causes in the meantime of marveling at its economic miracle. All in all, the human being will enter the era of bioeconomy, having gone through the eras of gathering and hunting economy, agrarian economy, industrial economy, and information economy. Under the guidance of the bioeconomy with its three major

6

The Wealth of Nations (Chinese Edition). Author: Adam Smith. Translators: Guo Dali and Wang Yanan. Nanjing: Yilin Publishing House, 2011.

Preface

ix

characteristics (benefiting oneself without harming others, developing the economy relying on the ecology, enjoying life while working), the human being will enter the life state of communism. To this end, we have sufficient reasons to believe that the bioeconomy will lead the human being into the new era of peace and sustainable development. Beijing, China August 2021

Aihua Pan Professor of Peking University, Chairman of Sinobioway Group Co., Ltd.

Contents

Part I

The Theory Part

1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Major Issues Concerning Modern Economic and Social Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1.1 There Are Three Major Issues with the Human Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1.2 The Modern World Economy is Still Exploring a New Way Out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2.1 The Scientific and Technological Revolution is the Core Driving Force Leading the Economic Society Out of Economic Crises . . . . . . . . . . . . . . . . . . . . . 1.2.2 The Biotechnological Revolution Will Dominate a New Round of Technological Revolutions . . . . . . . . . . . 1.2.3 Bioeconomy: The New Economic Pattern Dominated by Biotechnological Revolutions . . . . . . . . . . . 1.3 The Bioeconomy: Leading Transformations in Economics . . . . . . . 1.3.1 Economics is Facing Immense Difficulties . . . . . . . . . . . . . 1.3.2 The Theoretical Foundation of Pan’s Bioeconomy . . . . . . 1.3.3 The Theoretical Connotation of Pan’s Bioeconomy . . . . . 1.4 The Bioeconomy: Giving Humanity a Fresh Pair of Eyes . . . . . . . . 1.4.1 The Development History of Pan’s Bioeconomy . . . . . . . . 1.4.2 The Foundation and Unique Background for the Author to Put Forward Pan’s Bioeconomy . . . . . . . 1.4.3 The Important Influence and Contributions of Pan’s Bioeconomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 3 4 8 10

10 12 14 25 25 30 34 35 35 37 39

xi

xii

Contents

2 The Bioeconomic Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Econo-Bionomy (Bioeconomics) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.1 Basic Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.2 An Outline of Studies Related to Bioeconomics . . . . . . . . 2.1.3 The Great Significance of Pan’s Bioeconomics . . . . . . . . . 2.2 Econo-Genology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.1 Basic Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.2 What is Econo-Genology? . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.3 The Research History of Economic Genetics . . . . . . . . . . . 2.2.4 Prospects of Econo-Genology . . . . . . . . . . . . . . . . . . . . . . . 2.2.5 The Strengths of Sinobioway . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Socio-Genology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.1 Basic Concepts of Sociology . . . . . . . . . . . . . . . . . . . . . . . . 2.3.2 Socio-Genology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.3 The Guiding Significance of Socio-Genology on Social Management and Reforms . . . . . . . . . . . . . . . . . . 2.3.4 To Provide Scientific Evidence for Building a Community of Shared Future for Humankind . . . . . . . . . 2.4 The Triad Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.1 The Numbers and World in the Thought of Ancient Scholars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.2 From Monism to Triad Theory: New Advances in Understanding the World . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.3 The Guiding Significance of the Triad Theory for China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 Theory of Information Carrier of Life . . . . . . . . . . . . . . . . . . . . . . . . 2.5.1 What is Life? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5.2 Life is the Information Carrier Designed by the Wise Man . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5.3 The Significance of the Theory of Information Carrier of Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 The Life Capital Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6.1 Capital and Capitalism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6.2 Socialist Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6.3 Communist Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6.4 The Life Capital: The Brand-New Theory of Capital Proposed by the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6.5 The Significance of the Life Capital Theory . . . . . . . . . . . 2.7 Theory of Biological Reconstruction of Assets . . . . . . . . . . . . . . . . . 2.7.1 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7.2 Biological Reconstruction of Economy (Assets) . . . . . . . . 2.7.3 The Significance of the Theory of Biological Reconstruction of Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41 41 42 50 63 65 65 71 81 82 87 89 89 91 97 98 99 100 102 105 106 106 109 110 116 116 119 120 120 123 123 124 131 133

Contents

2.8

xiii

The Medical Model of Stock Market . . . . . . . . . . . . . . . . . . . . . . . . . 2.8.1 The Conventional Idea: The Stock Market is Unpredictable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8.2 The Medical Model of the Stock Market . . . . . . . . . . . . . . 2.8.3 The Practical Significance of the Medical Model of the Stock Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 Theory of Asymmetric Management Information . . . . . . . . . . . . . . 2.9.1 Basic Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9.2 The Theory of Asymmetric Management Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9.3 The Prospects and Future of the Theory of Asymmetric Management Information . . . . . . . . . . . . . . 2.10 The Corporate Theory of the State . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.10.1 Basic Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.10.2 The Corporate Theory of the State . . . . . . . . . . . . . . . . . . . . 2.10.3 The Corporate Theory of the State and State Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.10.4 The Significance of the Corporate Theory of the State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

133

3 The Bioeconomic Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 The Bioeconomy Experimental Zone . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.1 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.3 Cases of Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Big Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.1 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.3 Cases of the Big Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 The Bioeconomic Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.1 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.3 Planning of the Sinobioway Commune . . . . . . . . . . . . . . . . 3.4 The Good Healthcare Practice (GHP) . . . . . . . . . . . . . . . . . . . . . . . . 3.4.1 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.2 Theoretical Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.3 The Planning and Design of the GHP . . . . . . . . . . . . . . . . . 3.5 Forest and Wellness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5.1 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5.3 Design and Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 Bioeconomy Incubators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6.1 Basic Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

153 155 155 156 157 159 159 161 162 170 170 174 175 179 179 183 184 188 189 194 195 195 195 197

134 136 138 138 139 143 145 146 146 148 149 150

xiv

Contents

3.6.3

The New Drug R&D and Planning in Bioeconomy Incubators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 The Happy Senior Living Community . . . . . . . . . . . . . . . . . . . . . . . . 3.7.1 The Basic Models of Senior Wellness . . . . . . . . . . . . . . . . . 3.7.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7.3 Happy Old-Age Care Planning . . . . . . . . . . . . . . . . . . . . . . . 3.8 Super-Good Agricultural Practice (S-GAP) . . . . . . . . . . . . . . . . . . . 3.8.1 Basic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8.3 Planning and Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9 The Biofinancial Supermarket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9.1 Basic Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9.3 Planning Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.10 The Biolab Supermarket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.10.1 Basic Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.10.2 Theoretical Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.10.3 Basic Idea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The Bioeconomic Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 The Basic Framework of the Bioeconomic Industry . . . . . . . . . . . . 4.1.1 The Third Stage of the Bioeconomic Industry: The Bioeconomic Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1.2 The Second Stage of the Bioeconomy Industry: The Big Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1.3 The First Stage of the Bioeconomic Industry: The Bioindustry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 The Theories and Basic Principles of the Bioeconomic Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 A Framework of the Statistics Index System of the Bioeconomic Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part II

198 200 200 204 205 206 206 208 209 210 210 212 212 218 218 218 219 221 221 221 221 222 223 226

The Practice Part

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 The Significant Achievements Made by Sinobioway . . . . . . . . . . . . 5.1.1 Sinobioway is the Place of Origin for the Global Bioeconomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1.2 The Establishment of the Bioeconomic System . . . . . . . . . 5.1.3 The Establishment of the First Bioeconomy Experimental Zone in the World . . . . . . . . . . . . . . . . . . . . . 5.1.4 Successful Operation of the First Modern Biomedicine Enterprise in China: Shenzhen Kexing . . . . .

231 231 231 233 233 234

Contents

xv

5.1.5

5.2

Sinobioway Created Remarkable Achievements in the Bioindustries in China and around the World . . . . . 5.1.6 Sinobioway Established a World-Level New Technology System for Crop Breeding . . . . . . . . . . . . . . . . 5.1.7 Sinobioway Has Developed Biointelligence Technology (Strong Artificial Intelligence) . . . . . . . . . . . . 5.1.8 The National Gene Center Has been Built under the Direction of Sinobioway . . . . . . . . . . . . . . . . . . . 5.1.9 Sinobioway is Building Three Sinobioway Bioindustrial Parks of 100 Billion Level . . . . . . . . . . . . . . . 5.1.10 The Three Predictions Have Been Proved True . . . . . . . . . The Development Planning of Sinobioway . . . . . . . . . . . . . . . . . . . . 5.2.1 Strategic Goal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.2 Strategic Thoughts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.3 Strategic Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.4 Solving China’s Health Problems: Sinobioway’s Big Health Industry Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.5 Solving China’s Three Rural Issues: Sinobioway’s Big Agricultural Industry Plan . . . . . . . . . . . . . . . . . . . . . . .

6 Regional Practice: The Bioeconomy Provides a New Idea for the Development of Mountainous Areas . . . . . . . . . . . . . . . . . . . . . . . 6.1 Mountainside Economic Belts and Special Economic Zones are the New Growth Poles of the Chinese Economy . . . . . . . . . . . . 6.2 Sinobioway Provides a “Sinobioway Solution” for China’s Rural Revitalization Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 The Bioeconomy is the Fundamental Way Out for Solving the Three Rural Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 National Practice: The Bioeconomy Has Found the True Answer to China’s Economic Miracle . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 China Has Created Miracles in World Economic History . . . . . . . . 7.2 China Becoming the World’s Largest Economy is a Historical Necessity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 The Bioeconomy Has Revealed the Source of China’s Economic Miracle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3.1 The Bioeconomy is the Password to Crack the Mystery of China’s Miracle . . . . . . . . . . . . . . . . . . . . . . 7.3.2 The Bioeconomic Model Provides a New Pattern for China’s Economic Development . . . . . . . . . . . . . . . . . . 7.3.3 The Bioeconomic Theory Provides a Scientific Foundation for China’s Great Rejuvenation . . . . . . . . . . . .

235 235 237 238 240 240 241 242 242 244 245 253 263 263 266 268 273 273 274 275 276 278 279

xvi

Contents

Part III The Summary Part 8 The Bioeconomy is an Inevitable Path of Human Development . . . . . 8.1 The Bioeconomy Provides a Scientific Foundation for the Socialist Market Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2 The Bioeconomy Provides a Unique Perspective for Humans to Truly Understand the World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3 The Bioeconomy Provides the Right Direction for Human Peace and Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . . .

283 284 286 287

9 Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 Postscript . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293

Part I

The Theory Part

Chapter 1

Overview

1.1 Major Issues Concerning Modern Economic and Social Development Our universe started with Big Bang approximately 13.5 billion years ago. Earth formed 4.6 billion years ago. Simple organisms emerged 3.8 billion years ago. Homo habilis appeared in Africa 2.5 million years ago and Homo sapiens lived 70,000 years ago.1 The agricultural revolution began to accelerate 12,000 years ago, the first industrial revolution began 200 years ago, and the first information revolution started 70 years ago. To date, human society is about to enter a new era, having gone through transformations such as hunting and gathering, agricultural plantation, and large-scale industrial manufacturing and having experienced agricultural, industrial, and information civilizations. The arrival of modernization, a symbol of civilization in modern society, has brought profound changes to all aspects of society. The first is that the individual handicraft industry was replaced by mass-scale production, gradually enriching material products. The second is that workers’ wages generally increased, providing gradual improvement in their welfare. The third is the steady increase in spare time with rising labor productivity. Against such a backdrop, the human being began moving into the age of consumerism. The age is typically marked by material abundance, income increase, more leisure time, and the formation of a new group of rich individuals with a sense of entitlement, wealth, and sufficient spending power, whose pursuit is the satisfaction of constantly created and stimulated desires. With “rational man” quietly remolded into “consumers”, consumption has gone from merely a means of meeting the needs of life to the purpose itself, a symbol of identity and status.

1

Sapiens: A Brief History of Humankind (Chinese Edition). Author: Yuval Noah Harari. Translator: Lin Hongjun. Beijing: China CITIC Press, 2017: 397.

© Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_1

3

4

1 Overview

Is this the future of society? Is this supposed to be the origin of social pursuit? During the process of long-term observation and consideration, the author realized that the development concept of humanity actually needs an update and to be guided and driven by new theories.

1.1.1 There Are Three Major Issues with the Human Society The first is that social pursuits are problematic Chapter 12 of the ancient Taoist classic Tao Te Ching (Dao De Jing) by Lao Tzu says, “The five colors make man’s eyes blind; the five notes make his ears deaf; the five tastes injure his palate; riding and hunting make his mind go wild with excitement; goods hard to come by serve to hinder his progress”. In today’s era of material wealth, many people have often lost their ways, becoming the victims of desires, luxuries, and money while forgetting the origin of being a human: health, longevity, and happiness. As a matter of fact, the man is merely the false owner of money, even its victims. It is only a healthy life, longevity, and happiness that should be the ultimate pursuits. In health, for example, many people have fallen into the situation of “darkness under the light”. Imagine, do you and your family and friends spend money renewing and maintaining your health as often as eating out or changing mobile phones? Isn’t it that people spend money on health only when they get sick? In fact, most people are not health-conscious enough to spend money on buying health or improving health; even if some are, they are not willing to spend money on protecting and maintaining health as often. The second is that technological pursuits are problematic The development of science and technology is meant to help humankind, improve the progress of human civilization, improve people’s living standards, and achieve harmony with nature. Often, however, the focuses of science and technology have been dislocated to move toward a direction that harms people’s health. Take the mobile phone, for example, as a supply of mobile communications. Their prototypes are mobile telephones made by Bell Labs in the war zone in 1940; later, they entered our life as a portable telephone device used in a wide range of areas. However, the fundamental function of mobile phones comes down to facilitating communication. In this sense, people have little expectation of their calculation and processing features. Nevertheless, manufacturers have made producing faster and more powerful mobile phone chips as a focused direction to encourage people to spend more money on new phones to earn more profits. Not only has this considerably promoted the growth of mobile phone games (including tablets and other mobile devices) and driven mobile phone sales, it has made people constantly spend money on new devices to adapt to their needs—to a certain extent causing mobile phone

1.1 Major Issues Concerning Modern Economic and Social Development

5

addiction.2 In its The 11th Revision of the International Classification of Diseases,3 the World Health Organization (WHO) has, for the first time, enlisted “gambling disorder” as a mental and behavioral disorder. As with cigarette or opium smoking, mobile phone addiction has a center in the brain and will cause wider damage than smoking worldwide. On the one hand, the number of mobile phone users has far exceeded that of global smokers or drug addicts. Data show that approximately one billion smokers globally4 ; 275 million people use illicit drugs,5 but there are approximately 5.9 billion mobile phone subscribers (ITU [International Telecommunication Union] data). On the other hand, rates of mobile phone addiction are much higher than others,6 mainly because they could be used all the time. In China, the number of mobile phone subscribers per hundred people (i.e., the prevalence rate of mobile phones per 100 people) has reached 104.28, and mobile subscriptions have exceeded 1.5 billion, bringing their daily frequency of use much higher than smoking or drug use. Third, mobile phone network information has enabled the ability to deliver personalized information based on users’ individual preferences, making addiction even more likely. At present, OCUD (obsessive cell phone use disorder) has come to draw public attention, as excessive cellphone use increasingly affects people’s activities. In the future, to get people back to a normal life, the author suggests that the tobacco use management method can be used to treat mobile phone overuse, such as printing warnings on cell phone cases (Fig. 1.1). The same is true with the development of artificial intelligence (AI). A branch subject of computer science, AI, is a new technological science on the research and development of the theory, methodology, technology, and application systems related 2

Vaghefi I, Lapointe L, Boudreau-Pinsonneault C. A typology of user liability to IT addiction. Information Systems Journal, 2017, 27(2): 125–169. 3 International Classification of Diseases, 11th Revision, WHO. Gambling disorder is characterized by a pattern of persistent or recurrent gambling behavior, which may be online (i.e., over the Internet) or offline, manifested by: 1) impaired control over gambling (e.g., onset, frequency, intensity, duration, termination, context); 2) increasing priority given to gambling to the extent that gambling takes precedence over other life interests and daily activities; and 3) continuation or escalation of gambling despite the occurrence of negative consequences. The behavior pattern is of sufficient severity to result in significant impairment in personal, family, social, educational, occupational or other important areas of functioning. The pattern of gambling behavior may be continuous or episodic and recurrent. The gambling behavior and other features are normally evident over a period of at least 12 months in order for a diagnosis to be assigned, although the required duration may be shortened if all diagnostic requirements are met and symptoms are severe. 2018. 4 Marissa B Reitsma, Nancy Fullman, Marie Ng, et al. Smoking prevalence and attributable disease burden in 195 countries and territories, 1990–2015: a systematic analysis from the Global Burden of Disease Study 2015. Lancet, 2017, 389: 1885–1906. 5 World Drug Report 2018. United Nations Office on Drugs and Crime. 2018. 6 Conor Pope. One in ten young couples row weekly over phone use-survey: Seven out of ten 18 to 24year-olds check their phones at least once a night, study finds. https://www.irishtimes.com/business/ technology/one-in-ten-young-couples-row-weekly%20overphone-use-survey-1.2888140 [2019– 11-18].

6

1 Overview

Fig. 1.1 Excessive cellphone use

to the simulation, extension, and expansion of human intelligence. AI originated in the 1950s and 1960s, with the 1956 Dartmouth Artificial Intelligence conference giving birth to the field of AI. In 2016, Google DeepMind’s AlphaGo program beat South Korean Go grandmaster Lee Sedol, showing the world the power of AI and bringing people to the realization that not only is AI perfectly capable of handling all human work, but it can also significantly improve efficiency, thus liberating humans from the boredom of daily life and providing them with speed and comfort. However, the appearance of AI robots as virtual lovers might also lead to catastrophic disasters in human development. Tesla Motors and SpaceX boss Elon Musk is also concerned about the rise of AI, calling it humanity’s “single biggest existential threat”, saying “With artificial intelligence, we are summoning the demon”. Dr. David Hanson, an American roboticist, the robot Sophia’s creator, once claimed that humans will marry life-like droids by 2045; Sophia has also said, “OK, I will destroy humans!”. It is only natural that humanity’s nuclear development is the same. The human study of the atomic nucleus was aimed at an understanding of the functions between two nucleons, but as the study went deep, people began to shift the focus to the weapons of mass destruction (WMD) and exploitation of energy resources. As a matter of fact, both may bring important potential risks to humans. Nuclear development should also attract sufficient attention as a double-edged sword because humanity’s future energy source cannot rely on nuclear energy, mostly out of safety

1.1 Major Issues Concerning Modern Economic and Social Development

7

concerns. The nuclear accidents at the Chernobyl (1986)7 /8 and Fukushima Daiichi (2011) nuclear power plants9 have sounded safety alarms for humans. The wrong direction in technological pursuits is more fearsome than wars because wars always end, but the continuous attraction of new technology products to humans never ceases. If the problem is not realized in the long run, humans could go extinct faster. The third is that economic pursuits are problematic Money, profits, and interests are among the keywords in the modern economy. The economic pursuits for profits and the financial quest for interests are regarded as unalterable principles, but excessive stress on profits and interests will cause problems for the whole of economic society. In fact, the pursuits of the economic world should be the well-being and happiness of humanity. At present, however, there are some problems with the pursuits of the social economy, in which the pursuits of money, profits, and interests have gradually influenced economic development. It is exhibited most strongly in the financial sector. The financial system is the blood system of the economy, and without its support, economic development will struggle. On the national level, financial development should provide forceful support to the development of industry and commerce. However, in fact, many activities in the current financial sector are to gain greater profits and are rarely concerned with the future of industry and commerce. Finance has become the game of money, a battleground for the wealthy. Under the control and influence of finance, the pursuits of many industries have been displaced. For example, the fundamental goal of pharmaceutical development is to guarantee human health and provide new technological means for saving patients. Therefore, the medical industry is supposed to be one of the greatest and innocent industries because nothing in the world matters more than human life. Nevertheless, some medical enterprises partially under financial control have forgotten the original intention of medical-industrial development. The hundreds of thousands, even millions that often come with a course of treatment, have run counter to the purpose of treating patients. Take Kymriah (Tisagenlecleucel, CTL019) as an example, it costs 7

Chernobyl disaster was a nuclear accident that occurred at 1:23 a.m. on Saturday 26 April 1986 in the Chernobyl Nuclear Power Plant, near the City of Pripyat in the north of the Ukrainian SSR. It is considered the worst nuclear disaster in history and is the first nuclear energy disaster rated at seven—the maximum severity—on the International Nuclear Event Scale. It started with an explosion at the No. 4 nuclear reactor and was immediately followed by an open-air reactor core fire that released considerable airborne radioactive contamination. It has still been approximated that about four hundred times more radioactive material was released from Chernobyl than by the atomic bombing of Hiroshima. 8 Ania Tsoukanova, AFP. Ukraine prepares to mark 30 years since Chernobyl nuclear disaster shook the world. https://www.newcoldwar.org/ukraine-prepares-to-mark-30-years-since-chernobyl-nuc lear-disaster-shook-the-world/[2019-11-18]. 9 The Fukushima Daiichi nuclear disaster is the only other disaster to be given the Level 7 event classification of the International Nuclear Event Scale. The accident was started by a magnitude 9.0 earthquake off the Pacific coast of T¯ohoku and a tsunami that followed soon after on Friday, 11 March 2011. The earthquake caused significant damage to Fukushima Daiichi 1 and 2, leading to the release of large amounts of radioactive contamination and serious environmental effects.

8

1 Overview

USD 475,000 per treatment. Actually, the investors’ expectations were higher, and their expected costs were 36% higher. Solvadi is considered a medical breakthrough for hepatitis C by Gilead Sciences Inc., but its cost of $1,000 a pill, or $84,000 for a typical 12-week course of treatment, has raised extensive doubts. The Senate Finance Committee even issued a letter to Gilead demanding justification for the drug’s high price; in fact, Sovaldi is not the most expensive medicine on the market, ranking only 19 out of the 20 most expensive medications.10 Excessive profits have considerably affected the use of medications.

1.1.2 The Modern World Economy is Still Exploring a New Way Out Economic development is periodic. The earliest economic crisis dates back to the 1637 Tulip mania in the Netherlands. In 1788, the first overproduction crisis was observed in the British cotton-textile industry. An economic crisis of general overproduction first burst upon England in 1825. In 1847, the crisis that hit Great Britain spread to other countries and led to the first great international crisis (see Table 1.1 for details).11 Since then, the crisis has occurred at definite intervals, increasing influence and damage to the global economy. According to many economists who have conducted analysis and research on economic crises and the economic cycle, the latter is an insurmountable phenomenon and an important way of self-correction during the process of economic development. In a market economy, there should not be intervention in the means of strengthening government regulation. Of course, economists declared that as research on economic cycles goes deep, adopting countercyclical and other means to remove economic cycles is an inevitable choice to guarantee steady economic development. However, in fact, the author believes that based on current economic research, the means that can thoroughly remove economic cycles will not appear. Even a complete grasp of economic data with the current big data and other new means cannot realize such a goal. The reason is that although big data can provide massive information about market operations, it cannot solve the fundamental questions of the economic foundation, such as incentive compatibility, the risk appetite of entrepreneurs, and soft budget constraints.12 In addition, it cannot reflect the influence brought by uncertainties in human demand. 10

Bringing Value to Healthcare: Practical Steps for Getting to a Market-Based Model (Chinese Edition). Authors: Rita E. Numerof and Michael Abrams. Translator: Zhang Chunhui. Beijing: China Machine Press, 2017. 11 Huang Maoxing and Ye Qi: Historical Review and Tendency of the World Economic Crises. Studies on Marxism. 2010. (5): 24–35. 12 Jiang Xiaojuan: How to Regard the Relationship between “Big Data and Planned Economy”. Chinese Public Administration Review (CPAR). 2018. (9): 6–12.

1.1 Major Issues Concerning Modern Economic and Social Development

9

Table 1.1 Significant world economic crises in modern times Time

Country of origin

Scope of the disaster

1857–1858

US

Spread to major countries on the European continent: Germany, Austria, Prussia, Denmark, Sweden, and France

1873–1879

Austria

Spread to the entire European Continent and the United States

1929–1933

US and Southeast Europe

Spread across Europe and swept over the whole capitalist world in the end

1957–1958

US

Japan, Canada, Great Britain, Italy, France, and Federal Germany were engulfed in a crisis in succession

1973–1975

UK

US, Japan, France, and other countries were engulfed in succession

1979–1982

UK

Spread to major capitalist countries in Europe and America and Japan

1982–1988

Mexico

A full-blown debt crisis broke out in Latin America

1990–1992

US

Spread to Canada, Japan, Australia, and some European countries

1997–1998

Thailand

Spread quickly from such Southeastern Asian countries as Malaysia, Singapore, Indonesia, and the Philippines to all across East Asia, affecting developing countries in Europe, Latin America, Africa, and emerging economies

2000–2003

US

Canada, Japan, and all across Western Europe

2008 to today

US

Spread to main capitalist countries, affecting the whole world

According to the law of economic cycles based on conventional economic research models, countercyclical adjustments cannot cast off the law of economic cycles. Take the 2008 financial crisis that led to a great recession. Even to this day, 13 years after the breakout of the crisis, although many countries have adopted a series of means, including supply-side reform and the New Keynesians, the global economy still did not take on a new look. The latest World Bank data predict that the gross domestic product (GDP) of some major economies seems to have peaked (Fig. 1.2), whereas emerging economies such as Argentina, Brazil, and India and developing economies still face considerable downward pressure (see Table 1.2 for details). In addition, there is still a chance that the firm vulnerability of the world economy may be broken. The United States actions of imposing trade barriers and raising interest rates out of its own interests in the first half of 2018 have directly led to an economic slowdown and economic contractions in some Eastern European countries, Latin America, the Middle East, and Sub-Saharan Africa, which could also bring contractions to some developed economies. It will still take some time before the world completely walks out of the shadows of an economic crisis.

10

1 Overview

Fig. 1.2 Annual rates of US GDP growth (1960–2017)

Table 1.2 World bank’s predictions of 2018–2019 world economies 2016

2017

2018

2019

World output

3.2

3.7

3.9

3.9

Developed economies

1.7

2.4

2.4

2.2

US

1.5

2.3

2.9

2.7

Euro zone

1.8

2.4

2.2

1.9

Emerging and developing economies

4.4

4.7

4.9

5.1

Emerging and developing Asia

6.5

6.5

6.5

6.5

China

6.7

6.9

6.6

6.4

India

7.1

6.7

7.3

7.5

Emerging and developing Europe

3.2

5.9

4.3

3.6

−0.6

1.3

1.6

2.6

1.5

2.8

3.4

3.8

Latin American and Caribbean countries Sub-Sahara Africa (SSA)

Note the data in the table refer to growth rates (%)

1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future 1.2.1 The Scientific and Technological Revolution is the Core Driving Force Leading the Economic Society Out of Economic Crises The human economic development history tells us that the core driving force to get humanity out of economic crises is the scientific and technological revolution, but as for how many such revolutions have happened during human development, scholars have put forward different opinions. He Chuanqi, a researcher at China Center for Modernization Research, Chinese Academy of Sciences, believes that around five scientific and technological revolutions took place in the world in the

1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future

11

past five centuries,13 i.e., the birth of physics, the invention of the steam engine, and the mechanical revolution, the electric transport revolution, Einstein’s Relativity and the quantum revolution, the electronic and information revolution; that three industrial revolutions happened during the past three centuries, i.e., the steam engine, metallurgy and the mechanical revolution, the electric, chemical, and transport revolution, and automation, information, and intelligence revolution. Professor Wang Hongguang14 and others at the Chinese Academy of Science and Technology for Development think that during the past 2000 years, humanity experienced a total of three technological revolutions, including agricultural, industrial, and information technologies, which triggered three industrial revolutions, including the agricultural, industrial and Internet economies (also called the information or digital economy by some scholars). The agricultural industry revolution also includes five agricultural transforms or technological transforms, and the industrial revolution includes three industrial or technological changes (Table 1.3). It is these technological revolutions that have caused industrial revolutions, which then led to economic development, and that has led the whole world out of economic crises. History also shows that there were several crises in the world during the past 200 plus years. Nevertheless, each time, it was an industrial revolution driven by a scientific and technological revolution that led a country or region out of the crisis. Joseph Alois Schumpeter15 maintains that technological innovation is the main factor for the capitalist economy to achieve a boom, recession, depression, and recovery cycle in her book Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages.16 Carlota Perez, Honorary Research Fellow at the Science and Technology Policy Research, University of Sussex, states that the spread of a technological revolution and capital synergy happens in four stages: irruption, frenzy, synergy, and maturity, which leads the economy to crisis—recovery—boom—new crisis, to an economic cycle brought by a new round of scientific and technological revolution (see Fig. 1.3 for details).

13

He Chuanqi: “Super Opportunities” for China’s Rejuvenation in the Face of the Technology Industry Revolution. Chinese Science News. June 16, 2014. 14 Wang Hongguang et al. Filling the Trap of the World’s Second Largest Economy: Sino-US Gap and Trend. Beijing: Huaxia Publishing House, 2018: 238. 15 Joseph Alois Schumpeter (8 February 1883–8 January 1950) is a renowned economist and forerunner of the theory of creative destruction in economics. His major works include The Theory of Economic Development, Capitalism, Socialism and Democracy, and History of Economic Analysis. 16 Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages (Chinese Edition). Author: Carlota Perez. Translators: Tian Fangmeng et al. Beijing: China Renmin University Press, 2007.

12

1 Overview

Table 1.3 The main processes of technological and industrial revolutions and the effects Technological revolutions Agricultural Planting and economy breeding

Industrial economy

Digital economy

Time period

Hallmark products

Pillar industries

Before 17C

Grains and livestock

Planting industry and livestock farming

Chemicalization

After 1950 Chemical fertilizers and pesticides

Fertilizer and pesticide industries

Distribution of certified seeds

After 1960 Hybrid corn, rice, oilseed rape, and cotton

Seed industry

Mechanization

After 1970 Reaping and sowing machines

Agricultural machinery

Genetic modification

After 2010 GM corn and cotton

Genetically modified organisms

Mechanization

1780–1895 The steam engine, ships, and railways

Transport, textile, and mechanical industries

Electrification

1895–1940 Electric power, electric Electrical equipment, light, telephone and heavy machinery, and electromotors heavy chemical industries

Automation

1940–1973 Machine tools, radio, automobiles, planes, diesel engines

Machine manufacturing, military industry, aviation, petroleum, and chemical engineering

Digitalization

After 1946 Satellites, computers, cell phones

The information industry, aeronautics, and astronautics

Internetization

After 1980 Internet, Internet of Things

Information industry

Intelligentization Unknown

Robots

Robot industry

Source Breaking the trap for the second-largest economy: China-US gap and its destiny (Wang Hongguang et al.)

1.2.2 The Biotechnological Revolution Will Dominate a New Round of Technological Revolutions There was a general agreement that we have to rely on industrial revolutions brought by technological revolutions to walk out of economic crises, but which industry will technological revolutions appear in on earth? Scholars have different opinions. However, an increasing number of experts and scholars believe that new technological revolutions will take place in the field of biology. For example, in 2000, China’s Ministry of Science and Technology (MOST) organized the research on “suggestions on new economic growth points after preempting the Internet economy” and written the research report: Suggestions on Accelerating the Research and Development of

1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future

13

Fig. 1.3 The relationship between technology diffusion and financial capital

Biotechnologies and Taking the “Commanding Heights” of Bioeconomy.17 In the article Discussion on “Bioeconomy”18 in 2004, professor Wang Hongguang explicitly mentioned that “Bioeconomy is becoming another growth point after the Internet economy” and elaborated on the definition, characteristics, key directions of and China’s policies on bioeconomy. He elaborated again in 2005 and proposed the ten roles and trends of bioeconomy,19 further calling for China’s attaching importance on biotechnological revolutions. In the article What Will the New Technological Revolution after the Information Technological Revolution Bring,20 Wang Hongguang et al. had a systematic explanation on the influence of biotechnological revolutions. He Chuanqi, director at China Center for Modernization Research, Chinese Academy of Sciences, and Dr. Zhang Junxiang at Chinese Academy of Science and Technology for Development, also published a series of articles on the new technological revolutions of life sciences, presenting a comprehensive view that the new technological revolution is a biological revolution. The author made the prediction “The human being will enter the era of bioeconomy in 2020” as early as 1998. At the annual meeting of the Popular Science Report of Chinese Communist Party (CCP) and Government Organizations in 2001

17

Internal data at Ministry of Science and Technology of China: Suggestions on Accelerating the Research and Development of Biotechnologies and Taking the “Commanding Heights” of Bioeconomy, 2000. 18 Wang Hongguang: Discussion on “Bioeconomy”. Life Science Instruments, 2004, (3): 40–44. 19 Wang Hongguang: Discussion on the Ten Roles and Trends of Bioeconomy. Science & Technology Daily, September 25th, 2005. 20 Wang Hongguang, Zhu Shu, Yin Zhixin et al.: What Will the New Technological Revolution after the Information Technological Revolution Bring. China Science and Technology Journal, 2018, (3): 1–5.

14

1 Overview

in Beijing, the author delivered the report titled Opportunities and Challenges Bioeconomy Brings to China. In an interview on The Future Starts Now of China Central Television (CCTV) program Dialog in December 2001, the futurist Alvin Toffler says the future is “the era of the experience economy”, Zhu Lilan, former Minister of the Ministry of Science and Technology, believes future is “the combination and promotion of the scientific spirit and humanistic spirit”, Dr. Tian Suning, president of China Network Communication Group Corporation, believes the future is “a boundless world”, while the author maintains that the future is “the era of bioeconomy”. He proposed that “The human being will enter the century of biology” in his article published in 2003. When he chaired the parallel session of the biotechnology industry in the first international high-level forum of bioeconomy in 2005, the Science and Technology Daily published an interview of him: The Era of Bioeconomy: China’s Opportunities and Challenges. In 2007, he delivered the keynote speech Bioeconomy: New Thoughts on the Rise of a Great Nation21 at the first bioindustry conference and offered theoretical explanations on the concept and model of bioeconomy in a frontpage interview article on Science Times (now China Science Daily) of the day: Bioeconomy is the economy built upon biotechnology, products, and industries, based on the research, development, and application of life sciences and biotechnologies. The bioeconomic model is equivalent to a model of the tech economy, with an emphasis on the combination of high technology and economy. Since then, Pan’s bioeconomy—a brand new economic model has begun to be established. With many scholars at home and abroad giving a comprehensive analysis of each country’s current situation and trends of tech development, the author has further confirmed his argument that the new technological revolution will be a biological one and has realized from a higher level that the 21st Century will be the century of biology and that the bioeconomy will dominate the future world.

1.2.3 Bioeconomy: The New Economic Pattern Dominated by Biotechnological Revolutions In Theorists of Economic Growth from David Hume to the Present,22 Professor W. W. Rostow stated the basic conditions to decide whether an industry will experience growth: radical technological advances, the formation of large amounts of new products, the involvement of many businesses, the input of a group of entrepreneurs and massive capital influx. Under such circumstances, once a sound business model is found and new market space opens up, it means that a new industrial revolution will arrive. It is exactly the circumstances with the development of the bioeconomy now. 21

Chen Huanhuan: Bioeconomy: New Thoughts on the Rise of a Great Nation. Science Times, June 15th, 2007. 22 Theorists of Economic Growth from David Hume to the Present (Chinese Edition). Author: W. W. Rostow. Translators: Chen Chunliang, Ru Yucong, and Wang Changgang. Hangzhou: Zhejiang University Press, 2016.

1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future

1.2.3.1

15

Constant Breakthroughs in Life Sciences

With a strong thrust of every country, breakthroughs have been achieved in all areas of life sciences and biotechnology. In the field of the origin and synthesis of life for instance, scientists have proved that purine nucleotides, required for the synthesis of RNA using early primordial materials, can be formed under the same chemical mechanism as the pyrimidine nucleotides and that they are formed with the same precursor molecular, shedding new light on the mysterious origins of life on Earth. Scientists took an important step toward the creation of new life forms and functions in 2017 when they generated a stable semisynthetic organism. In 2017, scientists finished decoding the mystery of the aging of mammalian male reproductive system at the molecular, cellular, organ, and whole animal levels; they succeeded in transferring human pluripotent stem cells into cells with the function of hematopoietic stem cells, completed precise cerebral vascular atlas in stereotaxic coordinates of whole mouse brain. Cloned animals, various artificial organs and the lab-on-a-chip have emerged continuously, and new highlights have been constantly brought about by fields of biobatteries, brain computer interface devices, new types of materials, biomanufacturing and 3D bioprinting, bionic technologies; the development of biotech has brought an early dawn in the treatment of cancers, and mRNA COVID-19 vaccines and many other COVID-19 vaccines have become effective weapons against the spread of COVID-19. Preliminary statistics show that biology-related fields have taken up 60% of the top 10 largest scientific and technological advances since 2000 released by Science (see Table 1.4 for details). Since the creation of Dolly the sheep in 1996, scientists have cloned animals such as bulls, mice, cats, and dogs but have not made breakthroughs in cloning nonhuman primates, so much so that it is generally believed by scientists that primates cannot be cloned with current technologies. The achievements by a team led by Sun Qiang Table 1.4 Breakthrough of the Year—Science (2011–2021) Year

Breakthrough of the year—science

2011

HIV Treatment as Prevention

2012

The Higgs Boson

2013

Cancer immunotherapy

2014

The Rosetta mission lands on a comet named 67P/Churyumov-Gerasimenko

2015

The powerful genome-editing technique known as CRISPR

2016

The first detection of gravitational waves

2017

First observation of a neutron-star merger

2018

Development Cell by Cell

2019

Event Horizon Telescope

2020

Desperately needed vaccines against COVID-19, developed and tested at record speed

2021

Protein structures for all

Data source Arranged according to Science’s top 10 scientific advances of the year

16

1 Overview

were published in a cover article in the journal Cell on Jan 25, 2018 issue: Cloning of animals by somatic cell nuclear transfer. The genes of the two macaques were derived from the same aborted female cynomolgus monkey fetus. Two identical offspring were generated through the transfer—implanting somatic cell nuclei into egg cells whose nuclei had been removed—Zhong Zhong and Hua Hua.

1.2.3.2

Biotechnology Reflects a New Science and Technology-based Innovation Model

As one of the most important technology clusters in the twenty-first century, biotechnology is known for its leading disruptive breakthroughs and other remarkable features and embodies the typical characteristics of the global development of innovative technologies. First, the increasing interdisciplinary convergence has expanded the space of scientific discoveries and technological breakthroughs. For example, collaboration between the life sciences and other disciplines, such as chemistry, information, materials, and engineering, is accelerating the cultivation and introduction of disruptive technologies, such as synthetic biotechnology and brain-like artificial intelligence, that have significant prospects for an industrial revolution. Since 2001, the so-called NBIC (nanotechnology, biotechnology, information technology, and cognitive science) initiative has been put forward by the United States as it realized that technological convergence and collaboration bring new technological revolutions, and it has been made clear the crossover, convergence, and integration of any two or more of the four disciplines will have an immeasurable effect; in 2002, the National Science Foundation (NSF) organized and published a special report: Converging Technologies for Improving Human Performance: Nanotechnology, Biotechnology, Information Technology, and Cognitive Science.23 Second, with the blurring of boundaries between fundamental research, application research, technological development, and industrialization, there has been increasing flexibility with scientific and technological innovation, and innovation cycles have been significantly shortened. For instance, radical advances have been made in DNA sequencing technologies, big data analytics, and so on, and in particular, remarkable improvements in the speed of sequencing have led to substantial reductions in the cost (Fig. 1.4),24 making it entirely possible for genome sequencing to become routinely available in everyday life. In addition, it also helps shorten the time from the separation and identification of pathogens to the development of diagnostic reagent, making it possible now to finish the work in months or even days, which in the past took experts of different fields years; therefore, it has provided powerful support for the prevention and control of infectious diseases. 23

Roco M C, Bainbridge W S. Converging Technologies for Improving Human Performance: Nanotechnology, Biotechnology, Information Technology and Cognitive Science. 2002. 24 Eric D Green, Edward M Rubin, Maynard V Olson. The future of DNA sequencing. https://www. nature.com/news/the-future-of-dna-sequencing-1.22787 [2019-11-18].

1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future

17

Fig. 1.4 Changes in DNA sequencing costs and technology (National Human Genome Research Institute)

1.2.3.3

The Scale of the Bioindustry Expands Rapidly

First, wellness is a trillion-dollar industry. The author anticipated, in 2004, the value of the bioindustry, and in the book China Bioindustry Research Report 25 ,26 which he participated in the writing, he estimated (Table 1.5) that the bioindustry would contribute 7.5–9.5% of China’s GDP by 2020. The World Bank’s data also show that the proportion of global health and wellness industry in GDP has increased from 8.6% in 2000 to 9.9% in 2015, for a total of 8 trillion dollars. In the United States, wellness expenditure accounts for 16.8% of the GDP. Second, the development of new bioproducts is on the rise. With new drug development, the number of biotechnology drugs being developed has exceeded 2200, 1700 of which have gone into clinical trials. It is expected that over 200 types of new biotech products will be launched into the market in the coming five years.

25

Li Xueyong, Pan Aihua et al.: China Bioindustry Research Report. Beijing: Central Party Literature Press, 2004. 26 The research report has the Ministry of Science and Technology and Peking University as the planner, which includes a classification of the biotechnology industry: traditional bioindustry, modern bioindustry and future bioindustry. The author, as the executive editor, has presided over and finished China’s first strategic research report in the field of biotechnologies that is systematic, comprehensive and accurate in data, totaling 600,000 Chinese characters.

Modern bioindustries

100 ~ 200

2.0 ~ 2.5

200 ~ 250 250 ~ 300

112

Insect-resistant transgenic cotton

100 ~ 150

150 ~ 200 1350 ~ 1900

100 540.6 0.5

Feed additives

Subtotal

GDP (%)

1.0 ~ 1.5

100 ~ 150

75 25

Super hybrid rice

Biopesticides and biofertilizers

250 ~ 300

24.3 124

Human vaccines

Biochemical drugs

100 ~ 150

54.5

200 ~ 400

Medical diagnostic reagents

1.83 25.8

GDP (%)

4800 ~ 5500

300 ~ 350

Genetic drugs

2133

Subtotal

800 ~ 1000

511 160

Beer

MSG (monosodium glutamate)

600 ~ 650

207

Health care products

2100 ~ 2200

48 784

Enzymes, organic acids, amino acids

Traditional Chinese medicine (TCM)

500 ~ 600 400 ~ 500

316 107

Antibiotics

Vitamins

Y2010

Traditional bioindustries

Y2003

Field

Industry classification

Forecast of China’s bioindustry

Table 1.5 The author’s forecast of China’s bioindustry in 2004 (100 million CNY)

1.5 ~ 2.5

3200 ~ 4500

300 ~ 350

200 ~ 250

400 ~ 500

500 ~ 800

500 ~ 800

200 ~ 300

300 ~ 500

800 ~ 1000

3.0 ~ 3.5

9100 ~ 10,000

400 ~ 500

1600 ~ 1700

1000 ~ 1200

4200 ~ 4300

250 ~ 300

650 ~ 700

1000 ~ 1,300

Y2015

2.0 ~ 2.5 (continued)

9400 ~ 11,300

400 ~ 500

400 ~ 500

500 ~ 600

1000 ~ 1200

1000 ~ 1100

500 ~ 600

600 ~ 800

5000 ~ 6,000

3.5 ~ 4.5

15,500 ~ 17,500

600 ~ 700

2500 ~ 3000

2000 ~ 2500

6500 ~ 7000

500 ~ 600

1400 ~ 1500

2000 ~ 2200

Y2020

18 1 Overview

2.33

GDP (%)

800 ~ 1200

– –

Subtotal

GDP (%) 2673.6

50 ~ 100

R&D

Bionano

R&D

4.0 ~ 4.5

6950 ~ 8600

0.7 ~ 1.0

50 ~ 100

R&D R&D

Biocomputers

30 ~ 50

20 ~ 50

Bioenergy

R&D

Genome engineering

50 ~ 100

R&D R&D

Gene therapy

Stem cell technology

500 ~ 600 50 ~ 100

R&D R&D

Tissue & organ engineering

Animal cloning technology

50 ~ 100

R&D

Biochips

Total

Future bioindustries

Forecast of China’s bioindustry

Table 1.5 (continued)

5.0 ~ 6.0

14,400 ~ 17,800

1.0 ~ 1.5

2100 ~ 3300

150 ~ 200

200 ~ 300

200 ~ 500

300 ~ 500

50 ~ 100

100 ~ 200

100 ~ 200

800 ~ 1000

200 ~ 300

7.5 ~ 9.5

35,200 ~ 42,800

2.5 ~ 3.5

10,300 ~ 14,000

400 ~ 500

500 ~ 1,000

2500 ~ 3000

1000 ~ 1200

100 ~ 300

800 ~ 1000

1000 ~ 1500

3000 ~ 4000

1000 ~ 1,500

1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future 19

20

1 Overview

Third, major products appear quickly. Major products such as monoclonal antibody drugs, stem cells, and CAR-T cell therapies appear rapidly. Since the approval of the first antibody drug in 1986, it has been growing fast. Monoclonal antibody drugs took five out of the global top ten best-selling drugs of 2020 (Table 1.6): global sales of Humira hit $19.8 billion in 2020, placing No. 1 in sales for the seventh consecutive year. Stem cell therapy grew by 3.7 times on market scales in seven years, with global growth reaching $51.26 billion in 2017, and if other markets are included, the current global stem cell market scale goes far beyond $100 billion. CAR-T cells are all the more so: the global CAR-T cell therapy market value is to exhibit a compound annual growth rate (CAGR) of 46.1% over the period from 2018 to 2028, according to the forecast of Coherent Market Insights. Fourth, the cross-integration of biotechnology and information technology will have a significant effect on the bioindustry. Changes brought by the integration of technologies such as wireless sensors, genomics, imaging technology, and health information have made the individualized care and life healthcare industry a new growth point and will promote the rapid development of fields such as gene sequencing services, biochip testing services and stem cell treatment. Highperformance computing, virtual reality (VR), AI, etc., will considerably accelerate drug research and development. Multiple technologies, including cloud computing, social networks, and big data analytics, also support the role of AI technology Table 1.6 List of the top 10 global bestselling drugs and their sales volumes in 2020 Rank

Drug

Indication

Type

Sales ($100 million)

Company

1

Humria

Autoimmune diseases

Monoclonal antibodies

198.32

AbbVie/Eisai

2

Keytruda

Multiple types of tumors

Monoclonal antibodies

143.80

MSD

3

Revlimid

Multiple myeloma

Small-molecule

121.06

Celgene

4

Imbruvica

Multiple types of tumors

Small-molecule

94.42

Johnson/AbbVie

5

Eliquis

Anticoagulants

Small-molecule

91.68

Bristol-Myers, Pfizer

6

Stelara

Psoriasis

Monoclonal antibodies

79.47

Johnson/Mitsubishi Tanabe

7

Opdivo

Multiple types of tumors

Monoclonal antibodies

79.22

Bristol-Myers Squibb

8

Eylea

Age-related and other kinds of macular degeneration

Fusion protein

79.09

Bayer/Regeneron

9

Biktarvy

HIV

Small-molecule

72.59

Gilead

10

Xarelto

Anticoagulants

Small-molecule

67.45

Johnson/Bayer

1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future

21

in healthcare. Meanwhile, digital health systems that combine personal healthcare devices based on mobile communication, remote medical care, and digital medical decision-making will form a new medical model. The Pharmaceutical Research and Manufacturers of America (PhRMA) pointed out in one report that pharmaceutical research and development is a process that requires the coordinated development of science, technology, engineering, and mathematics (STEM) (Fig. 1.5). . Fifth, the synthetic biology field has tremendous prospects. Synthetic biology establishes a new approach for manufacturing chemicals by biology through targeted design, remolding, or even resyntheses of life processes or organisms. At present, research in the area has developed biomanufacturing, extending to agriculture, energy, and environmental sciences and technology. It can even create a new “life system”27 , as indicated in an article published in Nature in 2018, yeast still grows and breeds when scientists successfully fuse the 16 chromosomes of yeast species to just one. Under the guidance of synthetic biology, the biomanufacturing industry has entered a phase of rapid growth in its industry life cycle. The U.S. Department of Agriculture predicts that 22% of chemical products worldwide will be manufactured with biobased raw materials by 2025. The Organization for Economic Co-operation and Development (OECD) projects 35% of industrial biotechnology’s chemical and other industrial products by 2030. The gross output of the biomanufacturing industry will account for approximately 40% of the global bioindustry.

1.2.3.4

The Bioindustry Has Attracted Wide Attention from Various Institutions and Markets

It has been indicated that the world is on the way to bioeconomy by each country’s investments in life science and biotech fields and businesses’ massive input in biology-related fields. Data show that starting in 2012, the financing scale of global healthcare markets has experienced furious growth, with a CAGR of up to 69%; by the third quarter of 2017, there had been 248 transactions worldwide. In 2016, the United States released Emerging Science and Technology Trends: 2016–2045—A Synthesis of Leading Forecasts Report.28 The report is based on the essence of 32 research and investigation reports on technological trends published by government institutions, consultation institutions, think tanks, and scientific and technological institutions from 2010 to 2016. It mentioned 20 scientific and technological investment directions in the coming 30 years, three of which are related to the biotech field: medicine, synthetic biotechnology, and human enhancement. In addition, 17 other technologies can also be used in the biotech field. 27

ShaoY Y, Lu N, Wu Z F, et al. Creating a functional single-chromosome yeast. Nature, 2018, 560: 331–335. 28 Emerging Science and Technology Trends: 2016–2045 – A Synthesis of Leading Forecasts Report. Deputy Assistant Secretary of the Army (Research & Technology). 2016.

22

1 Overview

Fig. 1.5 STEM during each phase of drug discoveries (PhRMA)29

29

Enhancing Today’s STEM Workforce to Ensure Tomorrow’s New Medicines: Biopharmaceutical Industry Partnerships with U.S. Colleges and Universities, The Pharmaceutical Research and Manufacturers of America (PhRMA). 2017.

1.2 Bioeconomy Will Guide Human Economic Society to a Bright Future

1.2.3.5

23

Both Developed and Some Developing Countries Have Made Important Deployments

Technological breakthroughs will bring key strengths to world economic development. Biotechnological development has become the goal of countries worldwide as they search for new technological advances to stimulate economic development. The bioeconomic development strategy has been launched by the European Union and its member states, such as Germany, Italy, the Netherlands, Ireland, Sweden, Austria and Norway, Russia and the United States and Canada in North America, Japan, South Korea, and India in Asia and South Africa in Africa. For example, the U.S. government proposed the concept and plan of a biobased economy as early as 1999. President Bill Clinton issued the executive order to promote bioindustry development in August 1999—EO 13,134: Developing and Promoting Biobased Products and Bioenergy; the Biomass Research and Development Board released the report Fostering the Bioeconomic Revolution in 2001; the White House issued National Bioeconomy Blueprint in April 2012, addressing five federal bioeconomy strategic objectives. The OECD released in 2009 the report titled The Bioeconomy to 2030: Designing a Policy Agenda. India released National Biotechnology Development Strategy; German government released Bioeconomy 2030; Russia passed Russian Government Roadmap for Development of Biotechnology, and South Korea developed the basic strategy for bioeconomy, Bio-Vision 2016: the Second National Framework Plan for Biotechnology Promotion, to, through national leadership, increase investments to accelerate taking a commanding lead in biotechnology and enhancing the revolutionary development of the bioeconomic industry. China made bioindustry development-related planning early. In November 1986, the Central Committee of the Communist Party of China (CPC) approved the National High-tech R&D Program (863 Program), in which biotechnology was listed as a key high-tech area in China. Entering the twenty-first century, the China Ministry of Science and Technology organized strategic studies on domestic and overseas biotech and industrial development to promote the development of the bioindustry and wrote the report (for which the author was the executive editor). In 2007, China’s National Development and Reform Commission (NDRC) released the 11th Five-Year Plan for the bioindustry (the author was a core expert). These two documents opened the curtains of China’s bioindustry development, and a series of biological and medical industry plans have since been followed successively. During the 12th Five-Year Plan, the State Council of China issued Bioindustry Development Plan. A major goal of the plan is to transform the bioindustry into a pillar industry of China’s national economy by 2020. “Bioindustry” was written into Chinese government documents for the first time in the 12th Five-Year Plan for National Economic and Social Development of the People’s Republic of China (2011–2015). The 13th Five-Year Plan for National Economic and Social Development of the People’s Republic of China (2016–2020) highlighted the continued emphasis on support for the development of the biotech industry, strengthening forward-looking layouts, and cultivating a number of strategic industries in the life science field. It also called for vigorously promoting innovation and industrialization of precision medicine and other emerging and cutting-edge

24

1 Overview

Table 1.7 Percentages of department budgets in the proportion ofthe United States federal budget in 2016 and 2017 (NSF data) United States federal executive departments

2016 (%)

2017 (%)

Department of Defense

38.2

38.1

U.S. Department of Health and Human Services

27.6

26.7

National Aeronautics and Space Administration (NASA)

10.6

11.1

Department of Energy

10.8

11.0

National Science Foundation Committee

5.1

5.0

Department of Agriculture

2.0

2.2

Department of Commerce

1.4

1.6

Department of Transportation

0.8

1.0

Others

3.5

3.3

fields to form new growth points. Beijing’s 2017 Central Economic Work Conference clearly stated in its documents for the first time the need to cultivate the new model and new pattern of “bioeconomy”. Surely many other countries have made life sciences a critical field and have made key inputs in vigorous support of bioindustry development. The NSF data (Table 1.7) show that the 2016 input of the United States Department of Health and Human Services accounted for 27.6% of the national budget (military budget and civilian budget included), for which key support came from the National Institutes of Health (NIH); if life-science related support from other departments are included, the part in support of the biology field will exceed 30% of the general budget of the federal government, taking approximately 50% of the civilian budget. In summary, biotechnology plays an increasingly prominent strategic role in leading future economic and social development. A series of important progress and critical breakthroughs in modern biotechnology are speeding up penetration in the application fields, presenting tremendous prospects in solving significant environmental, resource, and health issues in human development. The bioeconomic industry is rapidly becoming another leading industry after the information industry. It brings profound transformations to the world economic development model and human social life. It will trigger significant adjustments in the world economic situation and dramatic changes in comprehensive national power.

1.3 The Bioeconomy: Leading Transformations in Economics

25

1.3 The Bioeconomy: Leading Transformations in Economics The term bioeconomy has been proposed both at home and abroad. The author found from a literature search30 that in China, the term “bioeconomy” first appeared in 1981, whereas bioeconomics dates back to the 1960s in Europe and the United States. Second, however, whether in China or other countries, the bioeconomy mostly refers to the economy formed when the rise of biotechnology generated a series of products and led to industrial changes. From this point of view, the bioeconomy in its conventional sense bears little difference from the industrial economy in economics. In other words, both are based on the profits and values brought by manufacturing, functioning as an industrial pattern in economics in current research, and have not brought fundamental changes to the concept and framework of economics as a whole. The bioeconomy advocated by the author has remarkable differences from the conventional sense of the word. The bioeconomy the author created (or Pan’s Bioeconomy) refers to the new economy built by applying the concepts and methods of life sciences and medicine in the study of economic and social issues. On the basis of that, the author gradually built up a bioeconomic system, mainly including bioeconomic theories, bioeconomic models, and bioeconomic industry. The bioeconomic theories refer to the new economic theories formed by applying the concepts and methods of life sciences and medicine in the study of economic and social issues, and ten theories have been developed thus far; the bioeconomic model refers to the new economic model created under the direction of bioeconomic theories, and ten models have been made; the bioeconomic industry refers to the industry formed through the integrated and coordinated development of big finance, big market, and big industry by applying the bioeconomic model under the direction of bioeconomic theories. More details will be explained in successive chapters. In addition, Sinobioway, led by the author, has established several bioeconomic pilot sites/demonstration zones to vigorously undertake bioindustry explorations and efforts.

1.3.1 Economics is Facing Immense Difficulties 1.3.1.1

A Brief History of Economics

Basic Concepts There have been different definitions by many economists during the development of economics. After making comparisons, the author tends to agree with the summary of economics in Ci Hai, or Sea of Chinese Words: economics is the general term for

30

See Section One of Chapter One of the book for details.

26

1 Overview

the sciences that study the laws and applications of economic relations and activities during human social and economic development.31 As an axiom of the starting point of the disciplinary system of economics, the basic laws of economics are economics theorems deducted from scientific economics axioms. Take Western economics, for instance. Its theoretical foundation is usually general equilibrium theory, marginal utility, and so on. The starting point is rational economic man, the foundation is the system of private ownership, the core mechanism is the price mechanism, the methodology is nonsymmetric linear systems and reductionism, and the model is theoretical analysis and empirical research. The basic laws of economics, or economic operation laws, refer to the inner mechanism that gets the economy moving through mutual constraint and mutual promotion of all the links from production, circulation, distribution to consumption, and reproduction. There have been two main economic operation mechanisms in the world: market mechanisms and economic planning. The core of the former is price fluctuations and changes in demand and supply, and planning and executing to adjust economic activities for the latter.

A Brief History As early as before the Common Era, humans had started to study and think about economic development-related knowledge. To date, economics research can be divided into three stages. (1) Primitive Economics Human economics originates in reflections on economic development in the early days of the human species. In gathering and hunting societies, due to the small population, humans were able to obtain food items sufficient to sustain them, and there was no need at all to think about production and other issues related to survival. However, as humankind multiplied and the population grew, gathering and hunting could no longer meet human needs, so humans gradually entered the agricultural economy era, dominated by breeding and farming. In this era, how to fully dig the potential of breeding and farming began to draw attention. A series of economic concepts related to agricultural development began to sprout and grow, hence the appearance of some monographs. According to data available, the earliest monograph centered on the economy should be Oeconomicus or Economics32 by Xenophon in ancient Greece (approximately 400–355 BCE). The book has two parts: the first part elaborates on the importance of agriculture to the national economy, regarding agriculture as the foundation on which people rely for survival, and how people should adopt the most 31

Xia Zhengnong & Chen Zhili. 2010. Sea of Chinese Words (6th edition) (Ci Hai). Shanghai: Shanghai Lexicographical Publishing House. 32 Economics by Xenophon (Chinese Edition). Translators: Zhang Bojian and Lu Danian. 1961. Beijing: The Commercial Press.

1.3 The Bioeconomy: Leading Transformations in Economics

27

effective approaches to manage their family property; in the second part, Xenophon held that managing the household is women’s duty and housekeeping should be a special item in women’s education. From today’s point of view, the book focuses on improving family productivity with effective management to ensure family survival. After Xenophon, Plato, Aristotle, and others also put forward economic ideas, such as Plato’s view of the division of labor and Aristotle’s theory on commodity exchanges and conception of currency. However, these were largely ideas and thoughts rather than monographs. In ancient China, not only were a series of different economic concepts put forth, but they were also put into practice. In terms of ideas, ancient masters such as Guan Zhong and Fan Li put forth the representative value of humanistic-pragmatism, concepts of equity represented by equal distribution of wealth and reducing surplus to make up for scarcity, and values of relations of production such as mutual benefit and combination of justice and interests, which still influence our current thinking about economic development. In terms of practice, Sang Hongyang (155–80 BCE) of the Han Dynasty strongly advocated and practiced a state monopoly of industry and commerce and presided over- or engaged in formulating a series of economic policies and systems. His ideas and thoughts laid a solid foundation for the dynasty, such as state monopolies in the production and sale of iron and salt, the leveling method (The so-called leveling method is to set up a leveling officer under the big sergeant and to supervise the goods transferred from the national government, except for the part that the emperor needs and the rest is used to stabilize the price. In other words, it uses official property in the market to rise and sell with the price to buy a profit.), and heaviness (shortage) and lightness (surplus) theory—which proposed that the government should follow a policy of controlling the currency to ride on the arbiter of human destiny (grain) and because grain is the arbiter of human destiny, the government needs to manipulate the light or heavy conditions of grain by putting money into or taking money out of circulation, as well as manipulating the extent of lightness or heaviness of money itself. Of course, these ancient economic ideas were scattered in the classics of ancient Chinese thinkers, and like Western economics concepts in the early days, they were without a systematic framework. (2) Classical Economics According to Harry Landreth,33 classical economics dates back to the Scholastic period. At that time, systematic systems began to form in economics, bringing into being an economic analysis model that was close to systematic science; meanwhile, the rise of mercantilism and agriculturalism during the period led to the emergence of a group of economists such as Thomas Mun, William Petty, Bernard Mandeville, David Hume, Richard Cantillon, Adam Smith, David Ricardo, Thomas Robert Malthus, and John Stuart Mill, and their analytical model extended all the way to Marxist economics.

33

History of Economic Thought: 4th (fourth) edition. Authors: David C. Colander and Harry Landreth. Translator: Zhou Wen. 2014. Beijing: People’s Post Publishing House.

28

1 Overview

With the emergence of marginal analysis by William Stanley Jevons and Carl Menger and its expansion, concepts such as diminishing returns, profits, interest, rent, and equilibrium were generated. Neoclassical economics is a time from which the great masters of economics sprang, such as Eugen Bohm-Bawerk, Irving Fisher, Alfred Marshall, Léon Walras, Vilfredo Federico Damaso Pareto, and John Rogers Commons. Classical economics is the onset of systematization and normalization of economics. It is lit up by a multitude of stars and monographs in economics, among which Adam Smith’s Wealth of Nations and Karl Marx’s Das Kapital are the most well-known. The two books are more than classics of economics; they are academic works that have brought out tremendous social transformations. They are far more influential than other economics works. The invisible hand has been the Golden Apple of a market economy; the planned economy has revealed for science the laws of social changes and has shown the direction in social development. Undoubtedly, an important change in neoclassical economics is that it has gradually broken away from the influence of political economics and is more inclined to engage in argumentation on the economic phenomenon, with political sense in economics in decline. One remarkable incident is that in the second edition of The Theory of Political Economy,34 the British economist W. S. Jevons explicitly proposed replacing “political economy” with “economics”, and the publishing of Alfred Marshall’s Principles of Economics35 has fundamentally altered the conventional use of the term political economy. (3) Modern Economics Modern economics refers to the phase when economics research gradually breaks away from the experience model and centers on mathematical models. Data analysis and empirical research have emerged, such as mathematical economics, statistics, and econometrics. The representative figures are Paul Samuelson, Milton Friedman, and other Nobel Prize winners in economic sciences. Economics began to experience in-depth research around the two main branches of macroeconomics and microeconomics. During this stage, interdisciplinary and innovative development in the field of economics became very evident, with the springing up of a number of remarkable emergent marginal disciplines, such as quantitative economics, nonlinear economics, symmetric economics, behavioral economics, evolutionary economics, complex economics and neuroeconomics, and many other schools of economic thoughts. Among the above, the appearance of evolutionary economics and complex economics marks the transition of economics studies from the focus on mathematical analysis to a more complex phase. Complex economics36 maintains that the 34

The Theory of Political Economy(Chinese Edition) Author: W. S. Jevons. Translator: Guo Dali. Beijing: The Commercial Press, 1984. 35 Principles of Economics (Chinese Edition) Author: Alfred Marshall. Translator: Lian Yunjie. Beijing: Huaxia Publishing House, 2012. 36 Complexity and the Economy (Chinese Edition) Author: W. Brian Arthur. Translator: Jia Yongmin. Hangzhou: Zhejing People’s Publishing House, 2018.

1.3 The Bioeconomy: Leading Transformations in Economics

29

complexity of the economic system is due, on the one hand, to people’s multifarious expectations and, on the other hand, to the fact that the law of increasing returns has decided the future evolution of the economy; it also analyzes economic development from the perspective of the tremendous impact of individual evolution on collective evolution, bringing economic analysis closer to social reality. Evolutionary economics is a marginal discipline between biology and economics. It emphasizes the theoretical foundation of Darwinism and uses the “inheritance-variance-selection mechanism” as the basic analytical framework; it regards the economic development process and economic and technological transitions from dynamic and evolutionary perspectives.37

1.3.1.2

Problems and Prospects of Modern Economics

The construction of a discipline must correspond to reality, and the development of economics is no exception. As mentioned above, modern economics is built upon industry-based economics. To date, no matter how economics changes, it has not gotten off from the track of an industrial base, which is also the biggest problem with the development of economics. It has enough problems explaining the current situation, let alone predicting or guiding the future. For example, the center of economics is to study supply and demand, but against the backdrop of modern technology, humans are capable of virtually endless supply (such as the movie, printing, and creative industries in the service industry) if the immense capacity of global technology is given full play, regardless of limitative elements such as boundaries among countries. This poses new challenges to economics in the modern sense. Another example is that modern economics tends to emphasize the role of markets and does not recognize the role of governments, which is at the core of its inability to explain the rapid economic development of China. The development of economics must keep up with the new situation, the pace of industrial development, and the trends in technological development. The development of economics in the twenty-first century must also be farsighted—putting forward new theories and new economic models from the perspective of future economic development.

37

Chen Jin and Wang Huanxiang: Evolutionary Economics. 2008. Beijing: Tsinghua University Press.

30

1 Overview

1.3.2 The Theoretical Foundation of Pan’s Bioeconomy 1.3.2.1

The Author’s Unique Understanding of Transitions of the Economic Eras

The economic eras refer to a particular historic period formed under the domination of an economic pattern when it reaches its maturity. From the emergence of humanity until now, the human economic society has experienced in succession the economic times of gathering and hunting, agricultural economy, and industrial economy. It is now in the latter half of the information economic age. In the article On the Evolution of Economy Eras and the Laws of Bioeconomy,38 Deng Xinan and Zhang Yinglu hold, during the process of studying and summarizing the evolution and transitions of eras, that human economic and social development, having experienced the eras of gathering and hunting, agricultural economy and industrial economy, is halfway in the information economy era and the growth stage of bioeconomy (pattern) and predicts our entry into the bioeconomic era after the 2020s (Table 1.8), which basically has the same understanding as the author. Corresponding with human economic times is different social patterns (Fig. 1.6). In the gathering and hunting economic era, humans conducted productive activities centered on gathering, taking the natural population as the unit. They are characterized by freedom in control of one’s operation, work, and needs, common property, and all people were free and equal; there was no superior-inferior relationship, neither class oppression; it can be called a “primitive communist society”. With the emergence of agricultural revolutions, humans entered an agriculturebased era from gathering and hunting times. During this era, the surplus of agricultural products began to appear with improved productivity, hence forming the agricultural industry (or the primary industry) and promoting society to enter the agricultural economic era. Following the need, there were also changes in the social pattern with the gradual transition from a primitive communist society to a slave society and later, a feudal society. With the arrival of the industrial economic era, the gathering and hunting economy had entirely left the stage, hence the coexistence of two reorganized societies: the agrarian and industrial society. However, during this phase, the mainstream economy had finished its transition from agricultural to the industrial economy, the latter beginning to be the dominant or the secondary industry. Meanwhile, humans also began to enter capitalist society, accompanied by the models and characteristics of a capital-controlled world. With capital’s strong impetus and modern technology’s guidance, the capitalist society brought about a dizzy array of tumultuous changes to the world, which also underwent dramatic transformations. Nevertheless, the decline of capitalism was inevitable. As early as 170 years ago, Karl Marx and Friedrich Engels foresaw the capitalist social crises in Communist Manifesto. Capitalist society has been searching for a new way out. 38

Deng Xinan and Zhang Yinglu: On the Evolution of Economy Eras and the Laws of Bioeconomy. 2010 Vol. 40 (2). Journal of Zhejiang University (Humanities and Social Sciences).

1.3 The Bioeconomy: Leading Transformations in Economics

31

Table 1.8 Evolution of the human-nature relationship in different economic times (Quoted from Deng Xinan and Zhang Yinglu, 2010) Economic times

Rough periods

Human-nature relationship

Gathering and Approximately Low productivity, human activities considerably constrained hunting 300,000 to by nature and limited to small areas, little effect and 10,000 years ago influence on nature, dependent on nature; human-nature relationship in the status of primitive dependence, in awe of nature Agricultural economy

Approximately Productivity improved, capacity for adapting to and control 10,000 years ago of nature strengthened the transition from “snatching” to to the 1860s “production” in agriculture, mainly relying on human and animal power, human impact on the environment has not exceeded its capacity; human-nature relationship marked by harmony, dependence, and symbiosis, nature-oriented

Industrial economy

1860s to 1990s

Technological advances accelerated, productivity dramatically improved, capacity for transforming nature remarkably enhanced, the emergence of the development concept “Man can conquer nature” and the value of anthropocentrism, believing humans are the owner of nature, the value of nature is limited to its instrumental value to humans and that human interests and needs are absolutely justified; exploitative development and harnessing of nature caused a series of catastrophic results; human-nature relationship marked by contradiction and alienation, technology-oriented

Information economy

1990s to 2020s

Modern technologies represented by the information technology brought about significant transformations to production and lifestyles, the extent of organizational socialization improved with the arrival of the information society; adhering to nonanthropocentric ethics and sustainable development, the former calling for putting nature at the center and playing down the central role of human value, and the latter emphasizing the harmonious development between humans and nature; the human-centered sustainable development began to be established

Bioeconomy

After 2020s

Life sciences and biotechnologies will bring fundamental changes to means of production and living; transition from “changing the object” to “changing the subject” starts for humanity, with the focus on improving quality of life; human-nature relationship marked by harmony; the human-centered development concept gradually forms; mainstream society will first enter the post information society—human-centered society

32

1 Overview

Fig. 1.6 Schematic diagram of human evolution and economic transitions

The information economic era is the time that appeared with the great development of information technology and industry. In particular, the emergence and popularity of computers, the Internet, wireless connection, and other products and technologies have promoted tremendous changes in society as data circulation began to replace product circulation, information work in replacement of industrial labor, and production gradually evolved to services and the service industry, or the tertiary industry, became the pillar industry of the time. In the meantime, the information economic era also experienced changes in its economic characteristics as conventional marginal effects were diminishing and scale effects were being rewritten or undermined. Nevertheless, a careful look at the abovementioned four economic patterns would bring us to the discovery that they are all built upon the exploitation of resources, especially the industrial economy, which until now has led to catastrophic crises in human society due to the exploitation of resources. Certainly, since no industries were formed during the hunter-gatherer economic era, from the perspective of industrial patterns, the industrial times up until now are mainly the agrarian, industrial, and information economic eras. Correspondingly, the dominant industry for the agrarian economic era was farming (or agriculture), or mainly the primary industry as mentioned above; for the industrial economic era, manufacturing (or industry), or mainly the secondary industry; and for the information economic era, service industry, or the tertiary industry as it is often referred to. What changes are likely for the dominant industry during the future bioeconomic era? Upon research, the author holds that the bioeconomy industry should be dominant upon entry into the bioeconomic era. The bioeconomy industry is the industry formed through the integrated and coordinated development of big finance, big markets, and big industries by applying the bioeconomic model under the guidance of bioeconomic theories. The big industry, the core content of the bioeconomy

1.3 The Bioeconomy: Leading Transformations in Economics Table 1.9 Comparisons between the bioeconomy and information economy

Phases Gestation

33

Beginning and ending decades or years Information economy

Bioeconomy

1950–1970

1953–2000

Growth

1970–1980

2000–2020

Maturity

1980–2020

After 2020

Decline

2020-?

?

Note “?” represents unknown

industry, has three characteristics: it is centered on and led by the bioindustry; it is developed by applying modern sciences and technologies to the bioindustry; and it facilitates the integrated and coordinated development of the primary, secondary and tertiary sectors (sometimes called the senary sector, although obviously different from the author’s big industry and what’s often referred to as senary industry by others). The bioindustry is the critical part and foundation of big industry, including six major areas: biomedicine, bioagriculture, bioenergy, bioenvironment, biointelligent manufacturing, and bioservices.

1.3.2.2

The Author’s Judgment: Humans Will Enter the Era of Bioeconomy by 2020

Life sciences and biotechnologies promoted technological advances and brought forth amazing benefits, which in turn led to industrial revolutions. Even Bill Gates, the giant of the information economic era, has allegedly predicted that “the next richest men in the world must come from the genetic field”. In an article authorized for publication by Bill & Melinda Gates Foundation in 2018, Bill Gates outlined how he thinks gene-editing technologies such as CRISPR can help transform global development.39 The author published a paper titled DNA Double-Helix will Lead Human into a Biological Century in Acta Scicentiarum Naturalum Universitis Pekinesis in 2003, where he provided analysis and predictions (Table 1.9) on the development trends of the information economy and bioeconomy. He proposed that the discovery of the DNA double helix structure in 1953 and completion of decoding of the human genome in 2000 marked human society’s entry into the gestation and growth phases of the bioeconomy; however, since the maturity phase of the large-scale industrialization of the bioeconomy starts in 2020, humans will enter the middle and late stages of the information economic era and will welcome a brand-new era: the bioeconomic era. According to the author’s understanding, the bioeconomic era is distinctively different from the gathering and hunting, agricultural, industrial, and information economic eras. The bioeconomy has its roots in solar energy. Solar energy comes 39

Bill Gates. Bill Gates on what gene editing and CRISPR mean for public health. https://www. cn-healthcare.com/article/20180423/content-502606.html [2019–11-18].

34

1 Overview

from the sun and is a renewable resource, meaning it will not ever run out or be in short supply. Developing and harnessing it on a massive scale will not harm the sun, nor will it lead to exploitation of resources or damage to the ecological environment. Based on this notion, the author believes that under the guidance of the bioeconomy, it is reasonable that the world will enter a state of highly developed productive forces, an overwhelming abundance of material wealth, and a high level of social civilization. Such a state is often regarded as communism.

1.3.3 The Theoretical Connotation of Pan’s Bioeconomy Pan’s bioeconomy has won preliminary recognition worldwide, mainly because it is a scientific system with a solid theoretical foundation and a sound practical foundation.

1.3.3.1

Scientific Basis

The bioeconomy has a scientific basis in photosynthesis, i.e., microorganisms, algae, plants, etc. It transforms solar energy—the world’s cleanest energy—into carbon energy through photosynthesis to provide core strengths for world development. Surely, the process can also be a source of food for us: carbohydrates. This means that by harnessing the bioeconomy, humans can find an efficient model of carbon transitions and avoid food scarcity. If these fundamental issues are addressed, the risks of wars could be reduced to a great extent since wars are mostly related to the struggle over energy and resources. Once the bioeconomy is popularized on a large scale, energy and resource scarcity problems will be significantly alleviated with a high-efficiency transition of solar energy. This, to a great extent, will bring humans into a peaceful, stable, clean, and harmonious world so that human beings can navigate paths to peace and sustainable development.

1.3.3.2

Main Characteristics

Pan’s bioeconomy has three remarkable characteristics compared with other notions of bioeconomy. First, the basic concepts are different. Pan’s bioeconomy has different basic concepts from others’ notions of bioeconomy in terms of both connotative and denotative meaning. This needs not to be elaborated extensively here as it has been discussed in detail above and will be dealt with in the chapters to follow. Second, the core content is different. Pan’s bioeconomy is a complete scientific system composed of three parts: bioeconomic theories, the bioeconomic model, and the bioeconomic industry. By comparison, other notions of bioeconomy tend to be concentrated in the bioindustry without forming a complete theoretical framework; neither have they formed the complete system of “theory-model-industry”.

1.4 The Bioeconomy: Giving Humanity a Fresh Pair of Eyes

35

Third, there are different economic characteristics. Pan’s bioeconomy has three characteristics: benefiting oneself without harming others, developing an ecologybased economy, and enjoying life while working. They are also at the core of Pan’s bioeconomy. Under the current economic system, however, benefiting oneself is often based on harming others, and developing the economy would largely be damaging or even fatal to the ecosystem. In addition, many people have to work to earn a living, and few enjoy life while working.

1.4 The Bioeconomy: Giving Humanity a Fresh Pair of Eyes Economics originates in thinking over economic development. As early as before the Common Era, humans began to explore economics-related notions supporting socioeconomic development. However, economics in the modern sense, dating back almost 300 years thus far, is related to advances in industrial civilization. Nevertheless, it actually has not deviated from its original notions and track. At the onset of a new era, one to center on the bioeconomy in future development, to adapt to the change, it is inevitable that the development of economics will be built on the new economy – dominated by the bioeconomy. In the bioeconomic era, economics is bound to experience tremendous transformations in its theories and disciplines.

1.4.1 The Development History of Pan’s Bioeconomy While summarizing the history of world technological and industrial development, the author has come to realize that future technological changes won’t be a continuation of changes on the original basis but entirely new ones. Ever since he was pursuing a second doctoral degree in political economics at Peking University in 1995, the author has held that the 21st Century will be the century of biology. In successive research, he went further by proposing that human beings enter the era of bioeconomy in 2020. According to the author’s understanding, the features marking the 21st century as the Century of biology are manifested in the following three aspects.

1.4.1.1

Life Science Will Be the Leading Discipline

The world’s technological history tells us that each era has its own leadership discipline. During the past 300 years, mathematics, physics, and chemistry have all led to the development of other disciplines. Then, what will be the leading discipline of the 21st Century? The author holds through thorough research that the life sciences

36

1 Overview

will be the leading discipline for a rather long time in the future. In other words, life sciences will drive modern scientific and technological development. Life sciences will be the leading discipline mainly manifested in three aspects based on the author’s prediction. (1) In terms of life sciences The development and breakthroughs of life sciences benefited from the application of other disciplines in their own fields. For example, the study of biology from the approaches of mathematics, physics, and chemistry has led to biomathematics, biophysics, and biochemistry; even the discovery of the double helix structure of DNA benefited from physics and chemistry. Suppose the life sciences are to become the leadership discipline; then, they should function as an instrument and provide methods and ideas for other disciplines. For instance, their application in mathematics, physics, and chemistry will lead to mathematical biology, physical biology, and chemical biology. The life sciences can certainly be applied to almost any field in the natural sciences. (2) In terms of social sciences As the leadership discipline, the life sciences will also provide methods and ideas for the research of each discipline in the social sciences. As an example, by using relevant theories and approaches of life sciences and medicine in social and economic studies, the author has created social genology, econo-genology, the theory of biological reconstruction of assets, and other related disciplinary theories. (3) Theory of unification That life sciences are to become the leading discipline forebodes that this discipline will lead flocks of wild geese forward, like the wild geese flying in autumn; meanwhile, the flocks also provide support and safeguards for the leading wild goose. Only in this way can the flock overcome all sorts of difficulties and barriers before eventually arriving at their best destination: the realization of health, longevity, and wellness of humans.

1.4.1.2

The Bioindustry Will Become the Pillar Industry

The pillar industry refers to one with massive output and contributes 5% or more to the GDP. With continuous advances in life sciences and technological research, many countries have invariably treated the bioindustry as the new growth point, hoping to be fast in occupying the commanding height of the bioeconomy. The main developed countries and organizations globally, such as the United States, Japan, and the European Union, have included the bioindustry in their national development strategies. According to the World Bank, the global wellness industry accounts for up to 9.9% of GDP, 16.8% already in the United States, 11.2% in Germany, and 10.9% in Japan. Additionally, according to the World Bank, the Chinese wellness industry makes up only 5.3% of its GDP, much lower than the world average, indicating the considerable potential of the health and wellness industry in China.

1.4 The Bioeconomy: Giving Humanity a Fresh Pair of Eyes

1.4.1.3

37

The Human Being Will Enter the Era of Bioeconomy

Based on the author’s concept, there is a difference between the bioeconomy in a narrow and broad sense. Bioeconomy, in a narrower sense, is the economy built upon biotechnological products and industries based on the research, development, and application of life sciences and biotechnology (i.e., the bioindustry). The connotation of bioeconomy in a broader sense includes three aspects: first, it is the economy built upon biotechnological products and industries, based on the research, development, and application of life sciences and biotechnology; second, it refers to changes in the economy caused by biological incidents (mainly referring to plague, bioterror and biowars, etc.); third, the economy is based on economic theories and models built upon the study of the economy using the ideas and approaches of life sciences and medicine (Fig. 1.7). The author predicted in 1998 that humans will enter the era of bioeconomy in 2020. The concrete manifestations are as follows: biotechnologies will safeguard human health, longevity, and wellness; bioproducts will enter hundreds of thousands of households; and the concepts of bioeconomy will influence the direction of world economic development. The specific landmark event is that the economy whose development model is defined by the bioeconomy will become the world leader. In other words, China, which is based on the development model of a socialist market economy, will become the world’s largest economy.

1.4.2 The Foundation and Unique Background for the Author to Put Forward Pan’s Bioeconomy The author’s capability to put forth a unique bioeconomic theory is closely related to his particular experience and solid multidisciplinary knowledge background. First, his comprehensive multidisciplinary knowledge background has laid a solid foundation for establishing his bioeconomic theory. Graduating from Xiangya Medical College for his Bachelor’s Degree in 1984, his object of study was a complex system—the human body. The professional medical study equipped him with the ability to dissect, analyze and understand complex systems from the perspectives of tissues and organs. He continued as a doctor in a hospital and acquired a holistic approach in thinking through two years of clinical experience. He then pursued aerospace medicine at the Space Medicine and Medical Engineering Research Institute and in three years of postgraduate study, studied aerospace medicine, space biology, and human body potential, which broadened his vision of cognition and extended his horizons to the fields of space, and such individual fields as human body potential; during his pursuit of a Ph.D. in biochemistry at Peking University, he chose to focus his vision on the smaller and more complex field of molecular biology. Equipped with both macro- and micro-cognition, he started in 1995 a second Ph.D. in political economics under the mentorship of renowned Chinese economist Professor

Fig. 1.7 The bioeconomic system

38 1 Overview

1.4 The Bioeconomy: Giving Humanity a Fresh Pair of Eyes

39

Xiao Zhuoji. By integrating multiple disciplines, the author has been enabled to gradually work out the theories and framework of Pan’s bioeconomy and gain preliminary recognition of Pan’s bioeconomic theory in the world. Second, his bioeconomic theories also benefit from his work experience in the industry. After putting forward the bioeconomic theories, he engaged in industrial practice at Sinobioway Group. He led the group through three decades of development and made remarkable achievements. He undertook a large amount of innovative efforts during the development of the Chinese bioindustry: he successfully operated the first modern Chinese biopharmaceutical enterprise—Shenzhen Kexing Bioproducts Co., Ltd. and made it the first industrialization base of the national 863 Program in China—producing interferon α1b; Sinobioway Medicine, a subsidiary company of Sinobioway Group, developed and produced the world’s first medicine—the nerve growth factor for treating neurological diseases; the blood-glucose-lowering drug Tianqi Jiangtang Capsule is the only pure traditional Chinese medicine recommended in both Chinese and Western medicine clinical practice guidelines; Sinobioway Agriculture became the first Chinese enterprise that obtained the Excellence Through Stewardship (ETS) certification in 2013 and took the lead in successfully developing an intelligent rice sterile line; the biointelligence (strong AI) developed by Sinobioway Biointelligence is a leading technology in the world in fifth-generation computer technology. Sinobioway group proposed and undertook the development of the bioeconomic industry, established the first bioeconomic research center and the first bioeconomic group. The author presided over and published as the executive editor Bioindustry Research Report—the first book of its kind in China, built the first bioeconomic incubator, bioeconomic experimental zone, high-efficiency system for new drug research and development and the first good health management practice (GHP) system. Therefore, Sinobioway Group has been recognized as “the place of origin for the global bioeconomy”. Indeed, the author’s ability to propose bioeconomic theories is inseparable from his Worker-Peasant-Merchant-Scholars-Soldier life experience and his long-term thinking. Born in 1958, he witnessed the country’s explorations in twists and turns after the founding of new China in 1949. In particular, with the reform and opening up in 1978, he had the profound feeling that China’s development needed the exploration of new theories and a new path. After nearly 50 years of learning, observation, and thinking, he finally found that the bioeconomy could make immense contributions to China’s rejuvenation.

1.4.3 The Important Influence and Contributions of Pan’s Bioeconomy The bioeconomy is a more advanced economic paradigm than other economies. The bioeconomy industry represents the top level of economic paradigms in the bioeconomic system framework the author has built. Nevertheless, the basic core of the

40

1 Overview

bioeconomic industry is the large industry, which has the bioeconomic industry as the dominant force and the core content, formed through the integrated development of primary, secondary and tertiary industries by applying modern sciencess and technologies. The bioindustry, which most countries have been vigorously promoting, includes six major areas: biomedicine, bioagriculture, bioenergy, bioenvironment, biointelligent manufacturing, and bioservices. Currently, the bioindustry is unanimously recognized worldwide as the first-generation bioeconomy industry. Nevertheless, the big industry is the second generation. The bioeconomic industry is considered as the third generation (Fig. 1.7). The human being’s perception and interpretation of the world have been like “blind men feeling an elephant” thus far, as the Chinese parable goes: each discipline and scholar tends to observe and explain the world from their own perspectives, and none is comprehensive. The arrival of Pan’s bioeconomy will bring brand new perspectives and understanding to humanity. Pan’s bioeconomy will give the human being a fresh pair of eyes, for them to see clearly the origin, truth, and the complete picture of life on Earth.

Chapter 2

The Bioeconomic Theory

A theory refers to a system of concepts and principles; it is a systematic and rational understanding featuring comprehensiveness, logicality, and informativeness. The generation and development of a theory are determined both by social practices and its own relative independence; a scientific theory should be generated based on social practices and has been testified and proved by social practices—the correct reflection of the nature and regularity of objective things. There have been various theories during the development of economics, the same as life sciences and medicine. However, until now, there has been a lack of sound integration of the two categories to develop a new theory. For Pan’s bioeconomy, explorations have been conducted in this regard in an attempt to form a new theory by integrating the theories of life sciences and medicine with those of economics—Pan’s bioeconomic theory. Pan’s bioeconomic theory refers to the theories that the author has created by applying the ideas and approaches of life sciences and medicine in economic and social issues research. It is mainly composed of the following ten sub-theories: Econobionomy (Bioeconomics), Theory of information carrier of life, Econo-genology, Social-genology, Theory of life capital, Theory of biological reconstruction of assets, Triad theory, Theory of asymmetric management information, Medical model of stock market, and Corporate theory of state (Fig. 2.1).

2.1 Econo-Bionomy (Bioeconomics) Econo-bionomy (Bioeconomics) refers to the new economic theories and models built by applying the ideas and approaches of life sciences and medicine in the study of economy and society. Since the author has been using the term “bioeconomics” in the past, the “bioeconomics” mentioned in this book actually means “Econobionomy.” The following chapters will continue to use the term “bioeconomics”.

© Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_2

41

42

2 The Bioeconomic Theory

Fig. 2.1 The bioeconomic theory framework

Bioeconomics is a brand-new economic concept that will bring economic research up to a new level.

2.1.1 Basic Knowledge To understand bioeconomics, one must be equipped with a foundation in life sciences, medicine, and economics. To facilitate understanding of the concept, the author now starts with a brief introduction to life sciences and medicine (economics-related chapters see the section four of chapter one).

2.1 Econo-Bionomy (Bioeconomics)

2.1.1.1

43

Life Sciences

Basic Concepts Life science focuses on the basic laws of all forms of life and their activities and reveals the nature of the phenomenon of life. The research objects of life sciences cover all forms of life, including humans. The research content ranges from the laws and nature of such life phenomena as growth, reproduction, genetic variations, and perishment of beings to the origins, evolution, and progression of life and the relationships and interactions among various organisms and between organisms and the environment.

A Brief History Studies on humans’ attention to life date back to the prehistoric age. At that time, people gradually learned to harness the laws of nature while observing plants and animals in nature and began their transformation and domestication of plants and animals. Later, with the attention to medicine, life sciences began to develop until eventually becoming an independent discipline. Overall, however, the studies of life sciences have basically followed the development path from macro to micro, and for the next-step research, the author predicts it will unfold from two aspects: one is the macro aspect, research on progression and revolution; the other, the micro aspect, involves work at the cellular and molecular levels. However, the eventual development will be a combination of the two to undertake research in the field with a systematic concept. Dr. Rajiv Desai proposed similar points of view in his report on the research of system biology development, pointing out that system biology will be the future direction.1 According to the author’s understanding, the development of life sciences can be roughly divided into three stages. (1) Early research phase This stage mainly occurred before the Renaissance, including the ages of mythology, heroes, and religion. Understanding and studies of life sciences during this stage mainly came in three dimensions. The first is observing and harnessing. This is mainly based on long-term observations of nature. As humans gradually learned the laws of plants and animals in nature, they began their transformation and domestication of plants and animals. For example, over 300 plant and animal species are found in Book of Poetry dating back to the Spring and Autumn Period in China; over 500 species of animals are referred to in Aristotle’s works. He dissected approximately 50 of them. Chinese began to grow

1

Rajiv Desai. SYNTHETIC BIOLOGY (SNYBIO) http://drrajivdesaimd.com/2017/05/07/synthe tic-biology-synbio/ [2019-11-18].

44

2 The Bioeconomic Theory

rice by approximately 5000 BCE, domesticate pigs by 3000 BCE, and the earliest domesticated horses dated back to Central Asia over 6000 years ago. The second is a theoretical explanation, i.e., to include understanding life through observations and thinking at the philosophy level. For instance, Chinese revealed the laws of health with the Yin-Yang philosophy and Five-element Theory in very early times; Plato believes that the human is made up of three parts, including the rational part located in the brain, the emotional part in the heart, and the appetitive part in the liver. The third is dissection and observation, i.e., to study beings through dissection. The study of history indicates that2 Alcmaeon of the Pythagorean School was probably the first scientist who performed dissections with the true spirit of science; Herophilus, Erasistratus in Ancient Greece, and Claudius Galenus in Ancient Rome also conducted dissections. Life science research during the Christian Times was prohibited, and no new knowledge was produced. In the Islamic Era, only the knowledge and concepts of Ancient Greek biology were preserved. In other words, life science research in the Religious Era basically fell into stagnation. (2) The great development phase The great development phase of life science research mainly refers to the four hundred years from the Renaissance to the discovery of the DNA double helix structure. With the anatomy in the Renaissance as the base point, the human understanding of life began to expand to various disciplines, such as physiology, microbiology and virology, immunology and genetics, and the basic framework of life science research was completed. Life science research in this phase mainly included three periods. Major development in anatomy The Renaissance mainly represents this period. Medicine and painting require precise knowledge of anatomy, and Renaissance artists hoped autopsy would help make their art more like real life. They, therefore, wanted to study the mechanism of muscles, bones, and internal organs, which is at the root of Renaissance passion for anatomy. Renaissance scholars obtained a more in-depth understanding of the structure, circulation, and respiration of the human body through scientific experiments on the basis of anatomical ideas and methods inherited from ancient anatomy. There were refined and scientific images of anatomy in Anatomia Humani Corporis by Jacopo Berengario da Carpi, Andreas Vesalius’s De Humani Corporis Fabrica, and William Harvey’s Anatomical Account of the Circulation of the Heart and Blood, and there were many anatomical drawings displaying the quite accurate proportion of the human body in Manuscripts of Leonardo da Vinci.3 Surely, biological research of this period was more often systematic and loyal accounts of natural phenomenon, 2

A History of the Life Sciences (Chinese Edition). Author: Dr. Lois N. Magner. Translators: Li Nan, Cui Jiqian and Wang Shuiping. Tianjin: Baihua Literature and Art Publishing House, 2012. 3 Manuscripts of Leonardo da Vinci (Chinese Edition). Author: Leonardo da Vinci. Translator: Zheng Qinyan. Beijing: Chemical Industry Press, 2019.

2.1 Econo-Bionomy (Bioeconomics)

45

Fig. 2.2 Hooke’s microscope and the image of plant cells as seen by it

not entirely professional or scientific, and was thus also called the natural history period. The emergence of the cell theory Anatomy is the cognitive understanding of life sciences on the individual level, whereas cell theory went further in understanding life sciences at the micro level. The emergence of the cell theory was indispensable from the invention of the microscope. In 1595, the renowned Dutch spectacle-maker Zacharias Janssen invented the first simple compound microscope, which expanded human horizons. With the appearance of different microscopes, new worlds of discovery were opened up to humans one after another. Humans saw hundreds of tiny animals and plants as well as fine internal structures ranging from the human body to plant fibers with the help of microscopes. Microscopes fully deserve the title of one of the greatest discoveries ever. With the advances of microscope technology, plant cells were first discovered by Robert Hooke in 1665 (Fig. 2.2), but at the time, the cell was not recognized as an independent and living structural unit of the plant world. Matthias Jakob Schleiden proposed the main points of the cell theory in 1838, which matured later with the contributions of Theodor Schwann, Rudolf Virchow, and others. The appearance of the cell theory made it possible for biological observation and research at the microlevel for the first time and initiated new lines of life sciences. Studies of the Theory of Evolution The theory of evolution moved to research in life sciences to the macro level. The French biologist Jean-Baptiste Lamarck (1744–1829) proposed the first comprehensive theory of organic evolution. In his Zoological Philosophy published in 1809,

46

2 The Bioeconomic Theory

he pointed out that higher animals originated in lower animals; humans came from apes. He had extensive discussions about the evolution of animals, but he did not manage to bring forth convincing evidence. In the book on the Origin of Species by Means of Natural Selection, or the Preservation of Favored Races in the Struggle for Life,4 Charles Robert Darwin (1809–1882) argued for the origin of species and the unity and diversity of life and the natural world from the perspectives of variation, heredity, artificial selection, competition for survival and adaptations, drawing on massive research data from paleobiology, biogeography, morphology, embryology, taxonomy and many other fields he accumulated in over twenty years. His argumentation further revealed the principles of the evolution and progression of species and created a new age in the history of biology. (3) Modern research in life sciences Life sciences in the modern sense are built upon Mendel’s experiments with peas plants, Thomas Hunt Morgan’s cross-breeding experiments with fruit flies, and the DNA double helix. Mendel’s experiments discovered the law of segregation and the law of independent assortment; Morgan showed that genes reside on chromosomes, and James Dewey Watson and Francis Harry Compton Crick’s DNA double helix brought hereditary studies to a deeper level. Since then, new trends have emerged in the development of modern life sciences with the introduction of a series of omics-related plans, such as the Human Genome Project (HGP) and the Human Proteome Project (HPP). In an article published in People’s Daily,5 Zhao Guoping, academician of Chinese Academy of Sciences (CAS), a researcher at Shanghai Institutes for Biological Sciences (SIBS), Chinese Academy of Sciences, summarized the main trends in the development of life sciences: the “convergence” paradigm will promote the study of the laws of movement of biological complex systems and complex processes of life to develop from “qualitative observation and description” to “quantitative detection and analysis” and even leap to “predictive programming” and “regulation and reconstruction”; meanwhile, transformative research will become the main platform for life science research and biotechnology innovation, which in turn determines the development trend of high efficiency and wide coverage of the bioindustry under the guidance of the concept of biotechnology “convergence”. Looking ahead, he also mentioned that “synthetic biology is expected to bring humans into the era of sustainable development of green production”; life sciences have therefore ushered in the transformation of the research paradigm and innovation in the research platform.

4

On the Origin of Species (Chinese Edition). Author: Charles Darwin. Translators: Zhou Jianren et al. Beijing: The Commercial Press, 1997. 5 Zhao Guoping: Trends in the Life Science and Bioindustry. People’s Daily. The October 18th, 2015 on Page 5.

2.1 Econo-Bionomy (Bioeconomics)

2.1.1.2

47

Medicine

Basic Concepts Medicine is a discipline that deals with the treatment of various diseases or lesions of life with scientific or technological means. The general direction of its research field includes basic medicine, clinical medicine, forensic medicine, laboratory medicine, preventive medicine, health medicine, and rehabilitation medicine.

A Brief History Medicine originates in animal instinct. Humans in ancient times probably witnessed animal self-medication to treat injuries and then tried to apply the behaviors to themselves. This is the earliest pattern of self-medication but could not yet be called medicine. The development of medicine probably started with the appearance of witch doctors and can be divided into three phases up to the present time. (1) Traditional medicine Traditional medicine is often referred to as empirical medicine. Its essence is to treat patients according to overall observation and practical verification, but not experimental clinical experience, clinical data, and an understanding of the basic knowledge of diseases. The World Health Organization (WHO) defines traditional medicine as the general term for the knowledge, techniques, and health practices used to maintain well-being as well as to prevent, diagnose, improve or treat physical and mental diseases on the basis of theories, beliefs, and experience inherent in different cultures. Historically, traditional medicine is a medical model of distinctive theoretical styles gradually formed through constant accumulation and repeated summations during long-term medical and life practices. Countries such as Ancient Greece and Rome, Assyria, Babylon, Ancient India, Ancient Egypt, and Arabia all had glorious traditions in this regard. These, however, went extinct in succession with social development. Only traditional Chinese medicine still maintains exuberant vitality. Ancient Egyptian medicine dates back to the medical text Ebers Papyrus in 16 Century BCE. It is the earliest record of a medical system that includes noninvasive surgery, setting of bone fractures, and pharmacopeia. Additionally, according to ancient books, ancient Egyptians mastered over 800 surgical procedures and more than 600 medications and were able to use multiple equipment to perform necessary surgery, such as removal of cysts and tumors. Ancient Egyptian medicine also had a considerable understanding of circulation and organs and was one of the most advanced medical systems at the time. Ancient Greek and Roman medicine had a significant influence on the development of medicine. The ancient Greek Hippocratic Oath is an important concept for every medical student at the start of their study and the essential guide of self-discipline for all professionals.

48

2 The Bioeconomic Theory

Assyrian and Babylonian medicine was rather developed. To regulate doctors’ treatment, Assyrians and Babylonians made the world’s earliest medical laws. There were two kinds of doctors in Babylon: monks and civilian doctors; the former relied on spells and prayers for treatment, whereas the latter relied on practical experience. Arabic medicine is a traditional medicine in the area where the Arabian language is used. During the eighth to twelfth century CE, Arabic medicine became rather developed after absorbing the advanced experience from other countries. Rhazes (864–925), or Abu Bakr Mohammad Ibn Zakariya Razi, known as the greatest doctor of Islamic society, served as the principle of the first hospital of Bagdad and wrote at least 200 works on medicine and philosophy. He organized the compilation of The Virtuous Life (al-Hawi), which is an encyclopedia on medicine. Avicenna or Ibn Sina (980–1037) was the greatest doctor in the Middle Ages and one of the best doctors in the world history of medicine. He was also a renowned encyclopedia compiler and a philosopher. The ancient Indian medicine was good at surgery, capable of limb amputation, eye surgery, cesarean section, and so on as early as the fourth century CE. The bestknown surgeon in ancient India is Sushruta (born approximately fifth Century CE), and the most well-known physician is Charaka (born in approximately first Century CE). Indian traditional medicine, dating from before 5000 years, is also rather well developed. Traditional Chinese medicine (TCM) is the only traditional medicine that still plays a significant role in the national medical system in the world. It originated in primitive society, and its basic theory took shape in the Spring and Autumn Period. In Huang Di Nei Jing, or The Yellow Emperor’s Internal Canon, it was stated that “the sage does not cure the sick, but prevents illness from arising, not govern chaos, but prevents chaos from arising.” Such emphasis on the control of future diseases laid the theoretical foundation on preventive medicine and is the earliest in all medicine works. Shennong Ben Cao Jing (also The Classic of Herbal Medicine) is the first extant monograph on pharmacology. In the eleventh century, China invented inoculation with a human pox to prevent smallpox—a forerunner of world immunology. (2) Modern medicine Modern medicine mainly refers to clinical medicine. It is also called evidence-based medicine, with critically appraised evidence at the core. This mainly refers to integrating clinical evidence, personal experience, and the patient’s actual condition and willingness. Modern medicine emphasizes personal clinical experience and the conscious use of current, best research evidence compared with empirical medicine. Such a combination of the emphasis on the doctor’s experience and evidence brings it more advantages.

2.1 Econo-Bionomy (Bioeconomics)

49

A History of Medicine6 tells us that clinical medicine merged at the end of the eighteenth century, mainly thanks to Herman Boerhaave (1668–1738). He built a teaching hospital, and his disciples successfully popularized this model of clinical instruction to other hospitals, which significantly promoted the rapid development of clinical medicine in the nineteenth century. Historically, some have thought modern medicine dated back to the Renaissance; others have regarded De Humani Corporis Fabrica (1543) as the symbol of modern medicine. However, this book and William Harvey’s de Motu Cordis et Sanguinis in Animalibus (1628) shook Claudius Galenus’s authority but have never changed human understanding of the nature of diseases. The start of modern medicine should be counted from the eighteenth century. (3) Future medicine Future medicine is the new phase of medicine the author has proposed based on his research of the history of medical development. The start of future medicine dates back to 1990 according to the author’s opinion. In this year, the WHO changed the 1948 definition of “health” in the preface of the Charter of the World Health Organization and defined health as a state of complete physical health, mental health, good social adaptation, and ethical health. The new definition of health points out a new way for medical development: the goal of medicine is human health. How to guarantee human health, however, requires our reflections on modern medicine. In addition, it is also based on this purpose that the author has put forth the concept of future medicine. The author proposed that future medicine is based on three foundations. First, precision medicine,7 a clear perception of diseases from the perspectives of genes and molecules. Second, holistic integrative medicine (HIM), which organically integrates the most advanced knowledge and theories in each medical field, such as medicine, nutrition, health and fitness, and the most effective practices in various clinical specialties to provide personalized services to patients. Third, systems medicine, i.e., a new medical model the author has built by making good use of good health practice (GHP) and the Theory of the Information Carrier of Life found by the author and will described in later chapters, and big data. It will provide life with comprehensive, personalized, and nanny-style health services.

6

A History of Medicine (Second Edition, Chinese Edition). Author: Dr. Lois N. Magner. Translator: Liu Xueli. Shanghai: Shanghai People’s Publishing House, 2017. 7 Obama. The precision medicine initiative. https://obamawhitehouse.archives.gov/precision-med icine [2019-11-19].

50

2 The Bioeconomic Theory

2.1.2 An Outline of Studies Related to Bioeconomics 2.1.2.1

An Review

Scientific advances have had tremendous influence on economic research. Following physics and mathematics, economists realized the possibility of a new perspective on economics by introducing some ideas from biology. In fact, the combination of the concepts of biology and economics has drawn attention early in the development of economics. Inspired by the division of labor in honeybees and the blood circulation of the human body, Ernest Mandel and Francois Quesnay came up with an analogy of the economic process. The greater influence certainly came from Darwin’s Theory of Evolution, which has become a source of influence for the research concept of many economists. As early as the end of the nineteenth century, Marshall regarded biology as the Mecca of economists, and maintaining economics was merely a branch of biology in the broad sense. The approach of studying economics with biological ideas began to attract attention under the promotion of the economists Gary Becker and G. Tullock and the biologist Michael Ghiselin in the 1970s and 1980s.8 In the 1971 economics monograph, the Entropy Law and the Economic Process published by Harvard University Press, Nicholas Georgescu-Roegen (1906–1994) proposed that a new economic theory was to be created in the field of economics— bioeconomics. He provided an excellent summary of bioeconomics and complemented it in subsequent studies and gave a general introduction to some fundamental principles.9 In a book in memory of Professor Karl William Kapp in 1977, Gunnar Adler-Karlsson put forward the basic concept of “bioeconomics”10 and pointed out that the special mission of bioeconomics is to explore the knowledge that can help build a global economic system in coordination with the long-term requirements of the ecological balance of the biosphere. With the revival of evolutionary economic thought and rapid advancement in brain research, neuroscience and evolutionary psychology, as well as an interdisciplinary approach in the study of economics in the 1990s, the application of biological theory models in exploring the origin of economics began to draw attention. For example, neuroscientists maintained that current theories and data in neuroscience, psychology, and economics are sufficient to study the economic decision-making process at a deeper level.11 Theoretically, however, neuroeconomics is simply a branch of economics, while bioeconomics deserves a greater framework. Toward 8 Yang Hutao and Wang Aijun: Recent Research Progress on the Bioeconomics. Journal of Social Sciences Abroad, 2008 (5): 60–68. 9 Wang Jinglun: Bioeconomics: A Future-oriented Economic Theory. Journal of Future and Development, 1990: 37–40. 10 Bioeconomics: An Emerging Discipline. Authors: Zhu Xiaohong and Gunnar Adler-Karlsson. Journal of Social Sciences Abroad, 1979. 11 Foundations of Neuroeconomic Analysis (Chinese Edition). Author: Paul Glimcher. Translator: Jia Yongmin. Hangzhou: Zhejing University Press, 2016.

2.1 Econo-Bionomy (Bioeconomics)

51

this end, the Journal of Bioeconomics12 started in 1999 with the help of relevant scientists, which should be a sign of the emergence of bioeconomics as an independent discipline. After that, many scholars began to turn their attention to it. A group of scientists engaged in bioeconomic studies even published the first English monography on bioeconomics Bioeconomy13 in 2017.

2.1.2.2

Bioeconomics in China

The term bioeconomy was also put forward early in China.14 A search at China National Knowledge Infrastructure (CNKI) indicates that the first article containing “bioeconomy” in the title was A Bioeconomic Model of Weeds in Pastures15 in 1981; a search with “bioeconomy” as the subject word showes that there had been 910 articles at this website by September 2018, and a keyword search using “bioeconomy” resulted in 1027 articles. There have also been some bioeconomy-related books published in China. The Chinese edition of Mathematical Bioeconomics: The Optimal Management of Renewable Resources16 should be the earliest. In this book, the author explains the mathematical model of bioeconomy and put forth the concept of bioeconomy; the first bioeconomic work China compiled on its own is The Fourth Wave: Bioeconomy17 ; the first monography is Bioeconomy and the Future of Agriculture Deng Xin’an et al. published in 2006 (Deng Xin’an also published Bioeconomy and the Green Transformation of Agriculture in 2018); Professor Wang Hongguang has published a series of 12

Journal of Bioeconomics (J Bioecon). ISSN: 1387-6996. The Journal of Bioeconomics is devoted to creative interdisciplinary dialogs between biologists and economists. It promotes the mutual exchange of theories, methods, and data where biology can help explaining economic behavior and the nature of the human economy; and where economics is conducive to understanding the economy of nature. The Journal invites contributions relevant to the bioeconomic agenda from economic fields such as behavioral economics, biometric studies, neuroeconomics, consumer studies, ecological economics, evolutionary economics, evolutionary game theory, political economy, and ethnicity studies. From biology, the Journal welcomes contributions from, among others, evolutionary biology, systematic biology, behavioral ecology, ethology, paleobiology, and sociobiology. The scholarly discussion also covers selected topics from behavioral sciences, cognitive science, evolutionary anthropology, evolutionary psychology, epistemology, and ethics. 13 Nicole Gaudet, Jan Lask, Jan Maier, et al. Bioeconomy: Shaping the Transition to a Sustainable, Biobased Economy. Springer International Publishing AG, 2018. 14 The “bioeconomy” here is the concept in the conventional understanding. It is a completely different concept although it uses the same word as the author’s bioeconomy. The latter is a brandnew economic paradigm, whereas the bioeconomy most people refer to is centered on the bioindustry. The economic development brought by the development of the bioindustry is called the bioeconomy. 15 Bruce A Auld and Guo Naizhong: A Bioeconomic Model of Weeds in Pastures. Journal of Foreign Animal Husbandry Studies, 1981, (1). 16 Mathematical Bioeconomics: The Optimal Management of Renewable Resources (Chinese Edition). Author: Colin W. Clark. Translator: Zhou Qinxue. Beijing: China Agriculture Press, 1984. 17 Feng Zhanqi and Yang Tongwei: The Fourth Wave: Bioeconomy. Beijing: Economy and Management Publishing House, 2002.

52

2 The Bioeconomic Theory

books on the subject since 2003, such as Ten Trends of Bioeconomy, Develop Biotechnology and Lead Bioeconomy, China’s Bioeconomy: International Comparison of China’s Innovative Power in Biotechnology and Bioindustry, Research Report on Yunnan Provincial Bioeconomy Action Initiative; Li Jia and Ma Lanqing published a monograph titled Introduction to Bioeconomy: Preliminary Explorations of A New Economic Pattern18 in 2012. In this book, the authors clarified the formation of the bioeconomic pattern and the establishment of the bioeconomic era from the perspective of Marxist political economy, studied and preliminarily expounded on the social reproduction process of bioeconomy – the characteristics and laws of production, exchange, distribution and consumption; meanwhile, it built an evaluation index system and model for China’s bioeconomic development, reviewed and summarized the ten major models of China’s bioeconomic development as well as the corresponding response measures, and provided a comprehensive summary of the conventional view in bioeconomics. A careful look at the current articles, books, and documents, however, may bring one to the finding that data in which bioeconomy is referred to tend to concentrate on the bioindustry, without having life sciences as the leading subject, that of a few laureates in Nobel Prize in Economics included (Table 2.1). Although some scholars have become aware of the significant influence biology will have on economics, none has yet brought the ideas and approaches of life sciences and medicine into economics. Discussions on the bioeconomy in the bioindustry are fundamentally limited to the bioindustry itself—it is neither likely nor possible for them to bring revolutionary changes to economics.

2.1.2.3

From Adam Smith to Karl Marx

For economic scholars, mentioning the market economy brings to mind Adam Smith, and when the planned economy is mentioned, the first thought has to be Karl Marx. The supreme power of The Wealth of Nations19 and Das Kapital 20 has and will not be shaken by anyone because the two authors led the way of the era, and the immense influence the two books had on the world will still last for a long time. The times produce their heroes. Such achievements Adam Smith and Karl Marx made are inseparable from their own times. Adam Smith (1723–1790) experienced a transitional period from handicraft workshops to large mechanical industries for manufacturing, an era of great advancement of the Industrial Revolution. Karl Marx (1818–1883) lived in a time of great development of capitalism and the most acute social conflicts. Adam Smith studied the literatures and conducted systematic 18

Li Jia and Ma Lanqing: Introduction to Bioeconomy: First Explorations in a New Economic Pattern. Beijing: China Agriculture Press, 2012. 19 The Wealth of Nations (Chinese Edition). Author: Adam Smith. Translators: Guo Dali and Wang Yanan. Nanjing: Yilin Publishing House, 2011. 20 The Central Compilation and Translation Bureau of China. Das Kapital (Vol. 1–3, Chinese Edition). Beijing: The People’s Publishing House, 2004.

Built the dynamic model to analyze economic processes, the former one of the founders of modern economics, the latter initiator of the comprehensive macroeconomic model Developed the mathematical and dynamic economic theory, brought the economic sciences up to a new level, research contributing to all fields of economics Made significant contributions to researching the interrelationship between population trends and demographic structure on the one hand and economic growth and income distribution on the other

Conducted pioneering research on the theory of international trade and international capital movements Conducted research on decision processes within an economic organization; this basic theory on decision-making procedures is widely recognized as an original insight on the actual corporate decision-making

Ragnar Frisch (Norway), Jan Tinbergen (the Netherlands)

Paul A. Samuelson (the United States)

Simon Kuznets (US)

John R. Hicks (UK), Kenneth J. Arrow (US)

Wassily Leontief (US)

Gunnar Myrdal (Sweden), Friedrich August von Hayek (UK)

Milton Friedman (US)

Bertil Ohlin (Sweden), James E. Meade (UK)

Herbert A. Simon (US)

Theodore W. Schultz (US), Sir Arthur Lewis (St. Lucia)

Lawrence R. Klein (US)

1969

1970

1971

1972

1973

1974

1976

1977

1978

1979

1980

(continued)

Built the mathematic model of an economic system based on economic theories and empirical estimates of real-world data

Conducted pioneering research into economic development research with particular consideration of the problems of developing countries

Created the theory of monetarism and formulated the permanent income hypothesis

Conducted in-depth research on the currency theory and economic fluctuations, as well as the mutual-independency among economic, social, and system phenomenon

Made contributions to the input–output analytical method, which is applied in many important economic issues

Conducted in-depth research on the general equilibrium theory and the theory of welfare economics

Reasons to give out the prize

Laureates (nationalities)

Years

Table 2.1 A list of nobel prizes in economics (1969–2021)

2.1 Econo-Bionomy (Bioeconomics) 53

Made seminal studies of industrial structures, the functioning of markets, and the causes and effects of public regulation Summarized Pareto optimality and established the existence theorem of an economic and social equilibrium of relevant products

Applied economics to political decision making, and expanded and applied economic analysis in the selection of social-political regulation Made contributions to the growth theory, pointing out long-run economic growth mainly depends on technological progress rather than capital and labor input

George J. Stigler (US)

Gerard Debreu (France)

Richard Stone (UK)

Franco Modigliani (Italy)

James M. Buchanan Jr. (US)

Robert M. Solow (US)

Maurice Allais (France)

Trygve Haavelmo (Norway)

Harry M. Markowitz (US), Merton H. Miller, William F. Sharpe (US) Conducted pioneering work in the theory of financial economics

Ronald H. Coase (UK)

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

(continued)

Made discovery and clarification of the significance of transaction costs and property rights for the institutional structure and functioning of the economy

Established the fundamental guidelines for modern econometrics

Made pioneering contributions to the theory of markets and maximum efficiency theory

The first to propose the life-cycle hypothesis of saving, which is widely used in the studies of household and business savings

The father of national accounts statistics made fundamental contributions to the development of systems of national accounts, and hence, greatly improved the basis for empirical economic analysis

Explained and developed John Maynard Keynes’s theories and a macro model of fiscal and monetary policies, and made important contributions to analyzing financial markets and their relations to expenditure decisions, employment, production, and prices

James Tobin (US)

Reasons to give out the prize

Laureates (nationalities)

Years

1981

Table 2.1 (continued)

54 2 The Bioeconomic Theory

Developed and applied the hypothesis of rational expectations, and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy, and proposed original ideas on the business-cycle theory The former made fundamental contributions in the field of information economics theory, especially to the economic theory of incentives under asymmetric information; the latter made major contributions to information economics, theory of incentives, and the game theory

Robert W. Fogel (US), Douglass C. North (US)

John C. Harsanyi (US), John F. Nash Jr. (US), Reinhard Selten (Germany)

Robert E. Lucas Jr. (US)

James A. Mirrlees (UK), William Vickrey (US)

Robert C. Merton (US), Myron S. Scholes (US)

Amartya Sen (India)

Robert A. Mundell (Canada)

1993

1994

1995

1996

1997

1998

1999

(continued)

Awarded the Prize “for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas.”

Contributions to welfare economics, ranging from the social choice theory, definitions of welfare and poverty indexes, to empirical studies of famine

The former further weakened the assumptions used in the Black–Scholes equation and popularized it in many aspects; the latter developed the famous Black–Scholes options pricing model, a baseline of all financial models for pricing derivatives

The three mathematicians made pioneering analysis of equilibria in the theory of noncooperative games and had a significant influence on the game theory and economics

The former explained development in economic history by applying economic theory and quantitative methods; the latter built the “institutional change theory,” including equity theory, state theory, and ideological theory

Extended the domain of microeconomic analysis to a wide range of human behavior and interaction, including nonmarket behavior

Gary S. Becker (US)

Reasons to give out the prize

Laureates (nationalities)

Years

1992

Table 2.1 (continued)

2.1 Econo-Bionomy (Bioeconomics) 55

George A. Akerlof (US), A. Michael Spence (US), Joseph E. Stiglitz Laid the foundation in the general theory of markets with asymmetric (US) information; their theories are applied rapidly, with applications extending from traditional agricultural markets to modern financial markets; their contributions are at the core of modern information economics

Enhanced our understanding of conflict and cooperation through game-theory analysis Made analysis of intertemporal tradeoffs in macroeconomic policy

Daniel Kahneman (US), Vernon L. Smith (US)

Robert F. Engle III (US), Clive W. J. Granger (UK)

Finn E. Kydland (Norway), Edward C. Prescott (US)

Robert J. Aumann (Isreal), Thomas C. Schelling (US)

Edmund S. Phelps (US)

Leonid Hurwicz (US), Eric S. Maskin (US), Roger B. Myerson (US) Laid the foundations of mechanism design theory

Paul Krugman (US)

2001

2002

2003

2004

2005

2006

2007

2008

(continued)

Conducted analysis of trade patterns and location of the economic activity

Revealed the consistency of economic policy and the driving forces behind business cycles. Provided ideas for effective and practical use of economic policy, monetary policy in particular, through analysis and research of the time inconsistency of macroeconomic policies; The sec- ond area concerns business cycle fluctuations. They deepened understanding of the phenomenon through the analysis of the various factors that lead to business cycle fluctuations and their interrelations

Analyzed economic time series with “time-varying volatility” and “common trends,” an insight that has had tremendous practical and theoretical implications

Laid the foundation for a new field of research in economics by integrating insights from psychological research into economic science, developed an array of experimental methods, setting standards for what constitutes a reliable laboratory experiment in economics

In the field of microeconometrics, developed theory and methods widely used in the statistical analysis of individual and household behavior

James J. Heckman (US), Daniel L. McFadden (US)

Reasons to give out the prize

Laureates (nationalities)

Years

2000

Table 2.1 (continued)

56 2 The Bioeconomic Theory

Elinor Ostrom (US), Oliver E. Williamson (US)

Peter A. Diamond (US), Dale T. Mortensen (US), Christopher A. Pissarides (Cyprus)

Thomas J. Sargent (US), Christopher Sims (US)

Alvin E. Roth (US), Lloyd S. Shapley (US)

Eugene Fama (US), Peter Hansen (US), Robert Shiller (US)

Jean Tirole (France)

Angus Deaton (UK)

Oliver Hart, Bengt Holmström (US)

Richard Thaler (US)

William D. Nordhaus (US), Paul Romer (France)

Abhijit Banerjee (US), Esther Duflo (US), Michael Kremer (US)

Paul R. Milgrom (US), Robert B. Wilson (US),

David Card (US), Joshua Angrist (US), Guido Imbens (US)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Provide us with new insights about the labour market and shown what conclusions about cause and effect can be drawn from natural experiments

For improvements to auction theory and inventions of new auction formats

Developed the experimental approach in alleviating global poverty

Made contributions to innovation, climate change, and economic growth

Made contributions to behavioral economics

Made contributions to contract theory

Conducted analysis of consumption, poverty, and welfare

Conducted research and analysis of market power and regulation

Conducted empirical research on asset pricing

Created the theory of stable allocations and conducted the practice of market design

Conducted empirical research on cause and effect in the macroeconomy

Made outstanding contributions in developing a theoretical framework for search markets

Conducted analysis of economic governance, especially the commons and the boundaries of the firm

Reasons to give out the prize

Data source https://www.nobelprize.org/prizes/lists/all-prizes-in-economic-sciences/ (from Baidu Baike)

Laureates (nationalities)

Years

2009

Table 2.1 (continued)

2.1 Econo-Bionomy (Bioeconomics) 57

58

2 The Bioeconomic Theory

research of the sparse, scattered economic doctrines of the time before publishing The Wealth of Nations in 1776, in which he put forth the ideas of economic liberalism. The work later became the bible for the market economy. Karl Marx came to the realization that the fall of the bourgeoisie and the victory of the proletariat are equally inevitable on the basis of a profound analysis of the advantages and disadvantages of the capitalist system. The theory of Marxism he cofounded with Friedrich Engels is regarded as the theoretical weapon and action guidelines for working people around the world in their struggle to realize the ideals of socialism and communism. Based on Karl Marx’s ideas, Vladimir Lenin led the practice of the planned economy, which provided references of theoretical and practical explorations for the realization of socialism and communism.

A Brief History of Market Economy The market economy is the economic form that allocates social resources through markets. Simply put, a market economy is an economic pattern built upon buyer and seller demands, one that is established entirely upon bargaining in a free market between the two sides, and the market is determined by the buyer or the seller, without interventions of any third party. In a broader sense, the market economy system only includes two departments: the public (consumers) and businesses (manufacturers); there is no place for the government. The market economy always tends to maintain that market is the most effective form of resource allocation. Its nature is an economy in which the market determines resource allocation. However, the understanding of such an economy has formed gradually. According to the conventional understanding, the earliest market economy was mainly the “Adam Smith Model”—the self-regulating economic model established upon rational persons; one typical example is the market economy models in the UK and the US before the 1929 Great Depression. There was no need for government intervention in general economic matters; a free social and market system was the fundamental condition for smooth operations and economic growths. However, as the basic conflicts of capitalism intensified each day, frequent economic crises that ensued brought constant shocks against the free market economy of the Adam Smith Model, and capitalist countries have constantly been modifying the model and began to emphasize the role of the government. Typical examples include the New Deal enacted by President Franklin Delano Roosevelt during the Great Depression and later the Keynesian theory Keynes put forward, which began to strengthen the role of the government. After World War II, in particular, governments of all countries began to scale up interventions further. The market economy experienced a gradual transition from a free market to the mixed model of crisis government interventions plus the market. Nevertheless, overall, different countries vary in the market economy models they adopt. Contrary to being invariable or limited to only one kind, it has various

2.1 Econo-Bionomy (Bioeconomics)

59

models.21 In France, there is a combination of free market economy elements such as private ownership, decentralized decision and market regulation of resource allocation, and planning and guiding elements; Germany adopts a social market economy model that combines free market and government interventions; Japan and South Korea emphasize the important role of industrial policy. A free market strives for self-regulation under free explorations, such as the natural regulation life sciences stress or the notion of natural recovery of the human body— stressing self-recovery and healing from autoimmunity without the need for external medical interventions. For example, doctors generally do not recommend cold medications but emphasize natural recovery. On another level, however, following the advice would cause slow recovery, lead to considerable uncertainties, and even risk worsening conditions.

A Brief History of Planned Economy Relative to a market economy, a planned economy refers to a kind of highly centralized social economic system that is different from a market economy and has low efficiency in practice. It is an economic operating system in which adjustment of economic activities is based on government planning. In general, the government announces the overall goals of national economic and social development according to premade plans, develops reasonable policies and measures with the planned arrangement of major economic activities, and guides and adjusts the direction of economic operation.22 The purpose of a planned economy is to avoid the harm brought upon social and economic development by problems such as pell-mell development and uncertainties, such as repeated construction, vicious competition, factory closures, employment losses, inflation, and economic crises. To this end, mandatory planning has been put forward to allow the government to plan and decide what and how much to produce and allocate resources. Historically, Vladimir Lenin first clearly put forward the idea of a planned economy.23 In the article The Land Question and the Fight for Freedom in 1906, he wrote that exploitation could be completely abolished only when all the land, factories, and tools are transferred to the working class and when large-scale socialized and planned production is organized. These ideas of Vladimir Lenin are not his original ideas but an extension of Marxist thought. Karl Marx projected that a socialist society would regulate national production upon a common plan, thus taking it under their own control. 21

Li Yiping: Market economy is not limited to one model. People’s Daily. The 9th Section, July 9th, 2019. 22 Lu Xiongwen: Advanced Dictionary of Management. Shanghai: Shanghai Lexicographical Publishing House, 2013. 23 Zhang Dun: What on earth is planned economy?—An Exploration of History and Reality. Guihai Tribune, Issue 1, 1992.

60

2 The Bioeconomic Theory

In practice, a planned economy was adopted soon after the foundation of the Union of Socialist Soviet Republics (USSR). By concentrating resources to develop production, remarkable success was achieved within a short period of time. Later, under the leadership of the USSR’s model of success, socialist countries such as the Socialist Federal Republic of Yugoslavia (SFRY), Polish People’s Republic, Hungarian People’s Republic, Romanian People’s Republic, The People’s Republic of Bulgaria, and China all adopted the planned economic model to develop their national economy. A preliminary calculation shows that up to 16 countries have used the planned economy successively. Despite the immense success achieved within a short time with concentrated resources during the implementation of the planned economy, its disadvantages also began to appear. The jeopardy of allocating resources through administrative means lies in the rigid system and the huge waste of resources caused by rigidification and excessive control. Consequently, the traditional planned economy faded away from the stage of history. From the perspective of bioeconomic theory, the two models bear significant differences. While the market economy is similar to life science, striving for natural recovery from autoimmunity, the planned economy is more like medicine that stresses intervention and treatment of diseases. Nevertheless, the traditional planned economy in a strict sense has overstressed the role of government intervention, assuming the government can allocate resources based on the plans to meet the market demand. This would inevitably lead to the problem of excessive intervention. Just as overtreatment is bound to cause harm to the body, the model of economic intervention should certainly require regulation and adjustment according to the actual development situation.

A History of Exploratory Development Through a Combination of Market Economy and Planned Economy Economics research tells us that the economic model used among every country in the world is neither a pure market economy nor a complete planned economy but a mixed economy. In fact, it is not an idea or approach that has emerged only recently. In terms of capitalist countries, the United States and other countries have adopted planned state intervention in economic development since the Great Depression in 1929; Keynesian theory also stresses government intervention. In terms of socialist countries, considering that a pure planned economy failure was a foregone conclusion, China actively summarized the experience and lessons learned and made a gradual transition to a mixed model of planned and market economies. In his Southern Talk in 1992, Deng Xiaoping pointed out, “The planned economy is not equivalent to socialism. There is planning in capitalism,” “A market economy is not equal to capitalism. There is a market in socialism.” He clarified that a slightly more planned economy or a slightly more market economy is not the essence of socialism or capitalism. It has been mentioned explicitly in the Report of the Central Committee of the Communist Party of China to the Fourteenth National

2.1 Econo-Bionomy (Bioeconomics)

61

Congress that the aim of the economic system reform in China is to establish a socialist market economy. At this point, people’s understanding of socialism has been thoroughly freed from the conventional thought of a planned economy. The market economy began to be integrated into the fundamental system of socialism, becoming a basic goal of China’s economic reform. The market economy emphasizes the invisible hand of the market; the planned economy underlies the visible hand of the government—either invisible or visible— they both use a single hand. Common sense tells us that the adjustment power of both hands far exceeds that of one. This is the bioeconomy the author has highlighted. By applying the theory and methods of life sciences and medicine and utilizing free exploration and precision intervention, we can promote social and economic development faster and better. The bioeconomic theory the author has put forward has provided scientific evidence for a socialist market economy. The bioeconomy, an economic model established according to the theory, methods, and means of life sciences and medicine, benefits from the “tool kit” that gets increasingly abundant as life sciences and medicine advances. The progress of studies in life sciences has accumulated massive data and offers us a clearer understanding of life; the advances of medicine enable us to be more precise and more diversified in approaches in the intervention of diseases. Precision medicine is a scientific concept based on progress in life sciences and medical studies and the optimal way to achieve health, longevity, and well-being. If used appropriately, the combination of market and planned economies should be more powerful than any single force.

2.1.2.4

Pan’s Bioeconomics: A Game-Changing New Theory

Even since the creation of the bioeconomic theory in 1995, the author has experienced a theory–practice-system development process, and the framework of the bioeconomic system has basically taken shape. Based on this framework of the bioeconomic system, bioeconomics is at the core. To understand it, it is necessary to have a deep understanding of what bioeconomics is. Although there have been a number of notions about bioeconomics, not a single definition or concept has received wide recognition.24 After years of thinking, research, and practice, the author maintains that bioeconomy is a brand-new economic pattern including three aspects of connotation. First, it is the economy built upon biotechnological products, based on the research, development, and application of life sciences and biotechnology. Second, it refers to changes of the economy caused by biological incidents (mainly referring to plague, bioterror and bio wars, etc.). Third, it is the economy based on the bioeconomic theories and models built upon the study of the economy using the ideas and approaches of life sciences and medicine. 24

Deng Xinan, Guoyuan and Gaolu: The Origin of the Concept of Bioeconomy and the Evolution of the Domain. Global Science, Technology and Economy Outlook, 2018, 33 (2).

62

2 The Bioeconomic Theory

Fig. 2.3 The author was receiving the Pericles international prize

What is bioeconomics? The author understands it as the discipline built upon the bioeconomy. The core content is the new economic theory and model generated by applying the ideas and approaches of life sciences and medicine in the studies of economic and social issues. In a narrow sense, it is a theory that studies the laws of production, exchange, distribution, and consumption of value with the ideas and approaches of life sciences and medicine. The bioeconomy the author advocates (i.e., Pan’s Bioeconomy) is a brand-new economic system and pattern. The 2015 Pericles International Prize was given to him for his contribution in the creation of the bioeconomic theory (Fig. 2.3). The award was given with the words as follows. Professor Pan Aihua is the initiator of bioeconomic theory. Like the many ancient Greek philosophers (such as Gioacchino Da Fiore), he pioneered the organic integration of life sciences and economics with his unique forward-looking thinking and created a bioeconomics theory based on the harmonious development between man and nature, providing a brand-new healthy and sustainable path of human development with agriculture, food, medicine and environment that supplement each other. In 2016, the author was invited to the headquarters of the European Union, where he delivered the speech Pan’s Bioeconomy: Theory and Practice (Fig. 2.4). On June 15th, 2016, the author had an interview with NEWEUROPE at the headquarters of the European Union, Brussels. It was featured in full in NEWEUROPE on the 19th titled “The human being will enter the era of bioeconomy by 2020”25 (Fig. 2.5). Since then, the bioeconomy he created began to go global, increasingly receiving recognition both at home and abroad.

25

The human being will enter the era of bioeconomy by 2020: An interview with Professor Pan, Chairman of Sinobioway. NEWEUROPE, 19–25 June, 2016.

2.1 Econo-Bionomy (Bioeconomics)

63

Fig. 2.4 The author was giving a speech at the headquarters of the European Union (NEWEUROPE)

Fig. 2.5 The special coverage by NEWEUROPE

2.1.3 The Great Significance of Pan’s Bioeconomics Bioeconomics is a specialized discipline, not the simple piecing together, superposition, or combination of the three disciplines of life science, medicine, and economics. Economics is a discipline that studies economic activities and changes, and attempts to reveal the laws of activities and changes, a science aiming at summarizing the laws

64

2 The Bioeconomic Theory

of economic operation and changes in the past, analyzing the current and predicting the future economic operation and changes. Life science is a discipline that conducts systematic research into the origin, evolution, and progression of species, as well as life phenomena and the laws of life activities, with the aim of understanding the laws of life activities, discovering the nature of life and remaking nature using these laws. Medicine is the science that deals with the treatment of various diseases or illnesses with scientific or technological means to realize the treatment and prevention of physical or mental diseases and to improve and ensure good health. As mentioned earlier, the market economy that stresses free development is analogous to the life science that studies natural development. In contrast, the planned economy that emphasizes government intervention is parallel to medicine that maintains health with human intervention. The two disciplines have been mutually dependent and mutually reinforcing ever since their births; similarly, the two economic patterns that have been in the opposite position can certainly achieve integrated development. Pan’s bioeconomic theory formed with the application of the ideas and approaches of life sciences and medicine is able to bridge the gap between the two economic models to provide a theoretical foundation and solution for the integration of the two, as well as the scientific basis for the socialist market economy with Chinese characteristics (Fig. 2.6). The Pan’s bioeconomic theory is a brand-new economic theory, and it will bring significant influence to economics and the entire state of society. In 2003, the author published a paper in Acta Scicentiarum Naturalum Universitis Pekinesis titled DNA Double-Helix will Lead Human into a Biological Century. He has made clear the point of treating life sciences as a tool of studying other disciplines and providing ideas and methods to them; he further maintained that: what bioeconomics studies remains the laws of economic and social development, but it has borrowed concepts, principles and methods from life sciences and medicine during the process, i.e., it adopts

Fig. 2.6 The relations diagram among bioeconomics and life science and medicine as well as a market economy and a planned economy

2.2 Econo-Genology

65

the ideas and approaches of life sciences and medicine, rather than conventional mechanical, mathematical views, in the studies of the economy and society. First, what the author studies are the laws of the individual economic man. Man is the main body of an economy or a market. Only when there is human behavior can a market be formed, and only then can there be economic development. By applying the ideas and approaches of life sciences and medicine in the study of the economic behaviour of the economic man, bioeconomic theory has eventually determined the laws of economic behavior. Second, what the author studies are the laws of the collective economic man. Bioeconomic theory attempts to study the laws of mutual function and influence among large numbers of people within an economy with the ideas and approaches of life sciences and medicine, which is mainly embodied in the study of the internality of the economy. Last but not least, what the author studies is how to implement better interventions. This is mainly reflected in the externality of the economy. The externality is the main part of economic studies. Nevertheless, there are advantageous and disadvantageous externalities, and there has been a good way to address them in the economic field. However, bioeconomic studies can solve the problem to a certain extent. In the bioeconomy, one can benefit oneself without harming others, relying on ecology to develop the economy while enjoying life and work. To this end, the author has sufficient reasons to believe that the research and development of bioeconomics will infuse new vitality and hope to advance traditional economics. It will break the limits and barriers of rigidity of current approaches in economics to open up a new space of endless possibilities for the development of economics.

2.2 Econo-Genology Econo-genology is to seize Adam Smith’s “invisible hand” with the ideas and approaches of life sciences and medicine. Economic genes refer to the internal force of control during economic operation, similar to the invisible hand. However, the good questions are: what are economic genes? How do they function?

2.2.1 Basic Knowledge To understand ecogenology, one must understand basic concepts such as genes, DNA, and chromosomes. A brief introduction of these concepts will be given below, and for a detailed understanding, please consult relevant professional books.

66

2 The Bioeconomic Theory

Fig. 2.7 Gene function diagram

2.2.1.1

Genes

The gene,26 also known as cistron, refers to a piece of DNA that produces a polypeptide chain, including the leading and trailing sequences before and after the unique coding region and the spacer sequence (intron) between two coding fragments (exons). This is the scientific definition. Based on popular understanding, the gene is nothing but a functional genetic unit. The gene supports the basic structure and performance of life, stores all the information of the life’s race, blood type, pregnancy, growth, apoptosis, and other processes, and has the dual attributes of materiality (existence mode) and information (fundamental attribute); therefore, it is sometimes called “DNA fragments with genetic information” (Fig. 2.7). Genes’ discovery dates back to Gregor Johann Mendel (1822–1884). Before him, people thought inheritance was a mixed process, but he managed to propose that traits were controlled by genetic factors with his pea plant experiments. After that, the world went deeper with studies of genes. The process of genetic study roughly falls into three stages. During the first stage, Gregor Johann Mendel performed a systematic analysis and summary of the hybrid pea experiments in his paper Experiments on Plant Hybrids,27 published in 1865. He proposed basic laws for inheritance: when gametes are formed, a pair of alleles located on a pair of homologous chromosomes are separated from each other as the homologous chromosomes are separated and enter different gametes, which are independently passed to the offspring with gametes (Fig. 2.8). This is known as Mendel’s first law, the law of independent assortment, 26

Genes VIII (Chinese Edition). Author: Benjamin Lewin. Translator: Zhao Shouyuan. Beijing: Science Press, 2007. 27 Gregor Mendel. Versucheüber Plflanzen hybriden. Verhandlungen des naturfor schenden Vereines in Brünn. Bd. IV für das Jahr, 1865: 3–47.

2.2 Econo-Genology

67

Fig. 2.8 Mendel’s model of experiments28

which reveals that inheritance is determined by some kind of invisible yet important “factor.” However, plant geneticists in the nineteenth century did not truly understand Mendel’s experiment and mathematical methods regarding inheritance. It did not occur to anyone to have mathematical discussions on all hybrid offspring. In the second stage, on the basis of analyzing the phenomenon discovered by Gregor Johann Mendel, Danish geneticist Wilhelm Johannsen coined the word gene to describe the Mendelian “factors” of heredity in the book Elemente der Exakten Erblichkeitslehre.29 This is the first time in history the concept of a gene has been used. In the third stage, American geneticist Thomas Hunt Morgan (1866–1945) established the genetic doctrine or the gene theory30 and, through large amounts of experiments with fruit flies, solved a series of problems concerning the interrelationship among genes, traits, chromosomes, and recombination statistics31 (Fig. 2.9). His work has had a significant influence on the development of genetics, cytology, and even biology. Later, with the discovery of the double helix in the 1950s by James 28

Zhang Lei: Mendel: Hereditary theory that developed from growing peas was not understood for 34 years, but he was ahead of his time. http://blog.sciencenet.cn/home.php?mod=space&uid=296 6991&do=blog&quickforward=1&id=1079552 [2019-11-19]. 29 Wilhelm Ludwig Johannsen. Elemente der exakten Erblichkeitslehre. Verlag von Gustav Fischer, 1913. 30 Morgan T H. What are “factors” in Mendelian explanations? American Breeders Association Reports, 1909, 5: 365–369. 31 The fruit fly experiment is one in which Morgan used white-eye male fruit flies born in the laboratory as experimental materials to determine the degree of gene linkage and measure the genetic distance on chromosomes through mating tests. Through fruit fly experiments, Morgan discovered that genetic material is located on chromosomes, revealed that genes are the genetic units that make up chromosomes, and discovered the third law of genetics, namely, the law of gene linkage and exchange, and thus won the Nobel Prize in Physiology or Medicine 1933.

68

2 The Bioeconomic Theory

Fig. 2.9 Morgan’s cross-breeding experiments with fruit flies

Watson (1928–) and Francis Harry Compton Crick (1916–2004), people further realized that the gene is indeed a piece of DNA with hereditary effects.

2.2.1.2

Genes, DNA, and Chromosomes

You have known what the gene is, but nonbiology majors often have problems determining genes, DNA, and chromosomes. The author will explain them briefly here, as they will mentioned frequently later in the book. As a matter of fact, they are entirely different.

Chromosomes Chromosomes are materials that carry genetic information (genes) in the nucleus. They are cylindrical or rod-shaped under a microscope and are mainly composed of DNA and proteins. Chromosomes are readily stainable with basic dyes (such as gentian violet and magenta acetate) during mitosis.

2.2 Econo-Genology

69

Fig. 2.10 Human chromosome model

For example, humans have 23 pairs of chromosomes32 (Fig. 2.10). The first 22 pairs of chromosomes are called autosomes and are shared by both males and females. The 23rd pair of chromosomes are known as the sex chromosomes because they decide if you will be born male or female. Females have two X chromosomes, while males have one X chromosome and one Y chromosome. In a generative cell, the chromosomes of a male are 22 autosomes + X or Y. The chromosomes of a female are 22 autosomes + X.

DNA DNA, also known as deoxyribonucleic acid, is the main chemical component of chromosomes and is also the material that forms genes. Long before discovering the structure of DNA, biologists realized that there was a certain relationship between the hereditary traits and the genes determining them and chromosomes. The nineteenth century scientists found that chromosomes were thread-like structures, which could be observed during cell division. With the progress of biochemistry, researchers have found that chromosomes are composed of DNA and proteins. However, it was not revealed until the 1950s with advances in the X-ray diffraction technique. Based on the current understanding, DNA is, in principle, a kind of molecule, a long-chain

32

Alberts B, Johnson A, Lewis J, et al. Molecular Biology of the Cell. 5th ed. Garland Science, 2008: 12.

70

2 The Bioeconomic Theory

Fig. 2.11 DNA double helix model

polymer with a double-stranded structure composed of 4 deoxynucleotides33 : dAMP, dCMP, dGMP, and dTMP, or A, C, T, G for short (Fig. 2.11).

Genes A gene is a section of DNA that carries hereditary information. Given there have been introductions in the previous text, The author won’t repeat them here.

33

Essential Cell Biology (Third Edition, Chinese Edition). Authors: Bruce Alberts, Dennis Bray, Karen Hopkin, et al. Translators: Ding Xiaoyan, Chen Yuelei, et al. Beijing: Science Press, 2012: 174.

2.2 Econo-Genology

71

2.2.2 What is Econo-Genology? 2.2.2.1

The Confusion of the “Invisible Hand”

The “invisible hand” is the most famous metaphor in economics. It first appeared in T he Wealth of Nations. Adam Smith wrote in the book: “He (or she) generally, indeed, neither intends to promote the public interest nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention”. This is the first appearance of the invisible hand. The basic meaning is that when individuals act in their own self-interests, they act as if they are led by an invisible hand to promote the unintended greater social benefits and the public good. However, why is there an invisible hand? There has been no answer despite various discussions among many scholars ever since the word was coined. This is mainly due to the limitation of scientific development. Take the time of Adam Smith as an example. As we know, in the eighteenth century, which ensued after Isaac Newton’s great discoveries, the scientific and ethical influence of Newton’s view of the universe remained a topic of debate. However, his ideas and way of thinking were being applied in many areas. Adam Smith was familiar with and agreed with Newton’s thought and made full use of it during his economics research. Nevertheless, until his death, Adam Smith failed to determine what the invisible hand was. He was confused and turned to studying classical physics and astronom—content related to these fields. None of the generations of economists after Adam Smith determined the true meaning of the invisible hand.

2.2.2.2

Search for Historical Roots

The reason is related to the level of scientific and technological development and means of application of the time. Since physics was the leading discipline then, economics tended to borrow the means, methods, and ideas of physics in their analyses of the economy; their definition for man was also “rational man.” In fact, however, human economic behavior is a collective effect as a result of numerous individuals. In most cases, the man, in reality, is vastly different from the man in economists’ eyes because humans are animals, although very special animals. It means apart from having a life; humans have feelings and perceptions; they are in motion; they have emotions, and very often in a nonrational state; there is also

72

2 The Bioeconomic Theory

the sheep herd effect.34 This has brought significant difficulties to economic studies centered on rational economic man.

2.2.2.3

The author’s Point of View

How to solve the problem? The author thinks that since economic behavior is from humans in motion, it is better to start with studies on individuals; when the laws of individual are clear, it is possible to explain the effect of herd behavior and to reveal the true meaning of the invisible hand (market). How to proceed? The author believes to study the invisible hand, one must begin with the ideas and approaches of life sciences and medicine and go beyond conventional economic research ideas, then a new way can be found. Biology tells us that genes are the main material of heredity, supporting life’s basic structure and performance. Richard Dawkins wrote in The Selfish Gene.35 Animals take care of their offspring. This, from the perspective of an organism, might be considered altruistic behavior, but it is under the control of genes; all examples of obvious altruistic behavior from the perspective of an organism are nothing but results of the selfish gene. Genes that control behavior have received scientific verification in many aspects. Genetic control and influence on animal behavior have been found in many animals, such as the feeding means of flatworms, gregarious or solitary fish species, whether ants have multiple queens per colony, genetic factors related to mosquito bite traits, and even fruit flies’ homosexual behavior is determined by a small number of genes. For instance, the Xq28 and Wnt-4 genes, Sphinx gene, TSHR gene, SLITRK6 gene,36 and so on are related to homosexuality. In Genome: The Autobiography of a Species,37 Matt Ridley proved with a large number of cases that not only do genes determine the human body structure, they also affect human behavior. Behavioral genetics studies also show behavioral disorders caused by variations of single genes or changes in the number of chromosomes. The origin of genetic control of behavior can be explained with the central dogma about the flow of genetic information. Life science studies tell us that hormones, glands, etc. control anything we do as an animal or a man; cell ion channels and others

34

The sheep herd effect, also called heard behavior or herd mentality. The flock is a very scattered organization. There are no rules at all. Usually, they bump to the left or right, but once a head is moved, other sheep will sneak up without thinking, completely ignoring the possibility of any situation or what causes such a situation. Therefore, the “herd effect” is often used in economics to describe a herd mentality or blind obedience. 35 The Selfish Gene (Chinese Edition). Author: Richard Dawkins. Translators: Lu Yunzhong, Zhang Daiyun, Chen Fujia, et al. Beijing: China Citic Pres, 2012. 36 Sanders A R, Beecham G W, Guo S R, et al. Genome-Wide Association Study of Male Sexual Orientation. Scientific Reports volume 7. Article number: 16950 (2017). 37 The Autobiography of a Species in 23 Chapters (Chinese Edition). Author: Matt Ridley. Translator: Li Nanzhe. Beijing: China Machine Press, 2015.

2.2 Econo-Genology

73

Fig. 2.12 The central dogma about the flow of genetic information

also regulate actions and behaviors controled under brain or muscle electrial stimulation, whereas proteins constrain all these. In fact, the production of each kind of protein is translated by the corresponding RNA38 (Fig. 2.12), yet RNA is made from the transcription of DNA. Therefore, any kind of behavior is fundamentally influenced by DNA. Once abnormal variations in DNA make it impossible to transcribe into a normal RNA, there will not be functional proteins or peptides. Therefore, with any stimulation, animals or humans may produce abnormal responses. The relationship between genes and behaviors is the main direction of research in behavioral genetics.39 Based on current studies, genetically controlled behaviors fall into several types of monogenetic control and polygenetic control. For example, an article on monogenetic influence on intelligence and behavior40 published in Cell attracted attention. In another article published in Nature in 2015, scientists discovered polygenetic control of mouse burrowing.41 38

Modern Molecular Biology (4th Edition) by Zhu Yuxian, Li Yi, Zheng Xiaofeng, et al. Beijing: Higher Education Press, 2013: 12. 39 Behavioral Genetics (Chinese Edition). Authors: Robert Plomin. John C. defries, Gerald E. McClearn, Peter McGuffin. Translators: Wen Nuan, Wang Xiaohui, Yang Yanping, et al. Shanghai: East China Normal University Press, 2008. 40 James P Clement, Massimiliano Aceti, Thomas K Creson, et al. Pathogenic SYNGAP1 mutations impair cognitive development by disrupting the maturation of dendritic spine synapses. Cell, 2012, 151. 41 Callaway E. Behavior genes unearthed-Speedy sequencing underpins genetic analysis of burrowing in wild old field mice. Nature, 2013-1-16.

74

2 The Bioeconomic Theory

Current studies have fully proven that behaviors such as phototaxis, chemotaxis, ingestion, courtship, parenting, attacking, escaping, and learning and memorizing are all related to genes or genetic control of gene expression. Since genes control many organisms’ behaviors, in this sense, human economic behavior is inevitably under the influence and control of genes. To this end, if we study and regard the economy from the perspectives of genes and genetic control of behaviors, we should be able to get to the bottom of the invisible hand—the genetic control theory, and this will open up new threads of thoughts for the development of economics.

2.2.2.4

Econo-Genology: Seize Adam Smith’s Invisible Hand

After years of exploration, the author first put forward the concept of econo-genology based on his research of life sciences and economics. Econo-genology is to seize Adam Smith’s invisible hand with the ideas and approaches of life sciences and medicine. Because human life is under genetic control and domination, all human behavior should be under genetic control, including economic behavior. In addition, since genes control human economic behavior, according to the author’s understanding, humans can achieve what is associated with bioeconomy: benefiting oneself without harming others, as there is a full biological foundation for such a practice. It is best explained by the interconversion of adenine nucleotides (ATP, ADP, and AMP). ATP, ADP, and AMP each have their own function in a cell; AMP is converted to ADP in a mitochondrion, and ADP gets a high energy phosphate bond to become ATP; each plays its proper role. The following is a brief explanation of mitochondria and the energy conversion process. Mitochondria are double-membrane-bound organelles supplying cellular energy in cells, the main place for cellular aerobic respiration. They are visible under a light microscope and have a diameter of 0.5–1.0 μm and a length of 1.5–3.0 μm, but different tissues may produce abnormally enlarged mitochondria under different conditions—up to 10–20 μm in pancreatic exocrine cells; the size of mitochondria in neuronal cells vary greatly, and some may be up to 10 μm; those in human embryonic fibroblast cells are longer, up to 40 μm. In terms of distribution, the number of mitochondria in different cells varies greatly. Some cells have up to thousands of mitochondria (liver cells can have 1000– 2000 mitochondria), while others have only one mitochondrion (such as the giant branched mitochondria in yeast cells). The mature red blood cells of most mammals have no mitochondria. From a composition point of view, the chemical components of mitochondria mainly include water, proteins, and fat, and contain small amounts of coenzymes and other small molecules and nucleic acids. It is estimated that proteins account for 65–70% of the mitochondrial dry weight. Lipids in mitochondria are mainly distributed in the two layers of membranes, accounting for 20–30% of the dry weight, and phospholipids account for more than 3/4 of the total lipids. Mitochondria can be divided into 4 functional zones: the outer membrane, intermembrane space, inner membrane, and matrix. The outer membrane functions as the

2.2 Econo-Genology

75

Fig. 2.13 Mitochondrion structure diagram

organelle boundary membrane; the inner membrane folds inward to form the mitochondrial crest, which undertakes more biochemical reactions. These two membranes divide the mitochondria into two compartments. The intermembrane space is located between the two membranes, and the matrix is surrounded by the mitochondrial membrane (Fig. 2.13).42 Mitochondria are the sites of oxidative metabolism of eukaryotes, the places where sugars, fats, and amino acids are finally oxidized to release energy, and the main energy providers for life-sustaining activities of living bodies, which is equivalent to the “power plant” of living bodies. The common pathways responsible for the final oxidation of mitochondria are the tricarboxylic acid cycle and oxidative phosphorylation, which correspond to the second and third stages of aerobic respiration. Glycolysis completed in the cytoplasmic matrix and the tricarboxylic acid cycle completed in the mitochondrial matrix produce high-energy molecules such as reduced nicotinamide adenine dinucleotide (NADH) and reduced flavin adenine dinucleotide (FADH2 ), and the role of the oxidative phosphorylation step is to use 42

Alberts B, Johnson A, Lewis J, et al. Molecular Biology of the Cell. 5th ed. Garland Science, 2008: 307.

76

2 The Bioeconomic Theory

these substances to reduce oxygen and release energy to synthesize ATP. Among them, in aerobic respiration, 1 molecule of glucose can release 30–32 molecules of ATP after glycolysis, the tricarboxylic acid cycle, and oxidative phosphorylation (considering that 2 molecules of ATP may need to be digested to transport NADH into mitochondria). In a hypoxic environment, 1 molecule of glucose can only produce 2 molecules of ATP in the first stage (Fig. 2.14).43 Biology tells us that in mitochondria, ATP, ADP, and AMP are produced to maintain their respective existence through circulation. Nevertheless, at the same time, energy is released through the hydrolysis of phosphate bonds during the circulation process, providing a guarantee for the next step of life activities44 (Fig. 2.15). It can be said that in mitochondria, the generation of ATP, ADP, and AMP is a typical example of “achieving self-interest without harming others” and is also one of the main bases of the author’s econo-genology theory.

2.2.2.5

Detailed Content of Econo-Genology

On the basis of the abovementioned contents and various other knowledge of life sciences and medicine, the author conducted an in-depth analysis of economic genes and summed up the studies in econo-genology, mainly including the following three dimensions. First, the human is the foundation of economic genes. This is mainly because man is the main body of the market. Only when there is man can a market be formed, and only then can there be economic development. However, since man’s behavior is controlled by genes, one must begin with genes to address the root of the problems in understanding the laws of economy. In other words, one can determine the laws of economic behavior through genetic analysis of the economic man. Second, what are the economic genes? According to the author’s opinion, the two basic market behaviors are the pairing of buying and selling, and just as purines and pyrimidines, the two basic building blocks of biological genes, are base pairs.45 A certain amount of economic man’s actions of buying (purines) and selling (pyrimidines) form an “economic sequence”; meanwhile, 6 billion base pairs (corresponding to 3 billion pairs of men and women) can correspond to 6 billion population in the world. Among them, the men and women pairs are similar to base pairs of A–T and G–C, which should roughly reach 1:1 (Fig. 2.16). 43

Essential Cell Biology (Third Edition, Chinese Edition). Authors: Bruce Alberts, Dennis Bray, Karen Hopkin, et al. Translators: Ding Xiaoyan, Chen Yuelei, et al. Beijing: Science Press, 2012: 445. 44 Alberts B, Johnson A, Lewis J, et al. Molecular Biology of the Cell. 5th ed. Garland Science, 2008: 307. 45 Base complementarity refers to the one-to-one relationship between purines and thymine (adenine and uracil in RNA), and guanine and cytosine. This is mainly because the rule that base pairing must follow is that the number of hydrogen bonds between bases has a fixed number and the distance between the two strands of DNA remains unchanged. Among them, pyrimidine is a weak acid salt, purine weakly alkaline, like positive charge (+) and negative charge (-) in the charge, respectively.

Fig. 2.14 Mitochondrial energy conversion diagram. Note (1) pyruvate deoxygenase, citric acid cycle, and fatty acid metabolism; (2) electron transfer from NADH and FADH2 to oxygen; generation of proton motive force; (3) ATP synthase synthesizes ATP through proton motive force

2.2 Econo-Genology 77

78

2 The Bioeconomic Theory

Fig. 2.15 Phosphorylation of the mitochondrial inner membrane and ATP/ADP transport system

Fig. 2.16 World population distribution (World Bank database)

2.2 Econo-Genology

79

Fig. 2.17 Diagram of the econo-genology theory

Third, economic genome. This is mainly based on the principle man is the foundation of economic genes. For this reason, the operation laws of the market could be explained and predicted to a certain extent through a big data analysis of the biological genome of a population (large groups of people) (Fig. 2.17). Therefore, the core center of econo-genology should include the following aspects. The first is the study of economic genes. They refer to the internal control force in economic operation, and this internal control force (the invisible hand) is the economic gene. What economic genes are and how they function are questions worth discussing. Some clues have emerged from the author’s long-term study of biological gene discovery and research processes. The second is biological studies in molecular behavior genetics, behavioral genetics, and so on. Econo-genology is an economics study on the basis of molecular behavior genetics, i.e., the cross study of genetics and economics. The purpose is to find a scientific way of measuring individual differences directly through generelated studies, as such differences probably have an influence on the economy.46

46

Tang Tanling and Tang Weibing: Economics Study in Genetics—An Overview of the Origin and Development Process of Genoeconomics. Science and Society. 2017, 7(2).

80

2 The Bioeconomic Theory

In this connection, economic genetics studies must closely follow those in molecular genetics and gene genetics to understand how relevant studies affect individual behavior and economic and social behavior. The third is to study the application of biology-related approaches in behavioristics. For example, quantitative genetics could be used to conduct more precise quantitative studies to identify the genes or genetic system affecting the hereditary differences of the observed behavior; or from the perspective of molecular genetics, the effect of the genetic endowment could be studied while combining the International HapMap Project47 , 48 by means of specific single-nucleotide polymorphisms (SNPs)49 from direct measurement. At present, biological scientists have done much work on this aspect, such as a study of 270,000 individuals to analyze the genetic differences in gender dimorphism selection50 and a genome-wide association study of sexual maturation in males and females.51 All these factors have provided new space for fresh ideas of economics to grow in the future. Nevertheless, economic genetics research is faced with some challenges. The first is the challenge of data and sample volume, mainly because of the scarcity of data and a lack of samples on the association of genetic diversity and economic behavior. The second is the problem of false positives, mainly due to low statistical power because of a low sample size of studies. The third is that as a new discipline and system, the research model and framework remain to be further improved.

2.2.2.6

Econo-Genology and Genoeconomics

Econo-genology and genoeconomics are two completely different concepts. The former is a discipline that studies and analyzes social and economic development from the perspective of genetics. The latter is a discipline built on the genetic industry. The birth of genoeconomics is closely related to the interpretation of the human genome. A working draft of the genome was announced simultaneously on June 47

A second generation human haplotype map of over 3.1 million SNPs, The International HapMap Consortium, Nature, Vol 449, 18 October 2007. 48 The International HapMap Project is another major research initiative in the field of human genome research following the Human Genome Project. The HapMap project represents a collaboration of several countries, with the purpose to identify and make a catalog of the common genetic variations among people, to find genes that affect health and disease as well as those involved an individual’s response to particular medicines or environmental factors. 49 Single-nucleotide polymorphisms (SNP) refer to DNA sequence polymorphism caused by single nucleotide variation at the genomic level. It is the most common type of human hereditary variation. SNPs are widespread in the human genome, with an average of 1 in every 500–1000 base pairs. 50 Joshua C Randall, Thomas W Winkler, Zoltán Kutalik, et al. Sex-stratified Genome-wide Association Studies Including 270,000 Individuals Show Sexual Dimorphism in Genetic Loci for Anthropometric Traits. PLoS Gengtics, 2013-6-6. 51 Diana L Cousminer, Evangelia Stergiakouli, Diane J Berry, et al. Genome-wide association study of sexual maturation in males and females highlights a role for body mass and menarche loci in male puberty. Human Molecular Genetics, 2014-1-13.

2.2 Econo-Genology

81

26th, 2000, by scientists from six countries—the U.S., the U.K., Germany, China, Japan, and France. It is both an auspicious gospel for humans and a driving force for developing a genetic economy52 —a new economy with genes as the carrier. In the book The Era and Economics of Genetics, Professor Zhang Tiankan proposed that the genetic economy will become fully mature and even replace the information economy in the 2020s; Bill Gates once allegedly predicted that the next richest men in the world must come from the genetic field. Genes are wealth, and the genetic industry offers unlimited potential at the core of genoeconomics. The emergence of DNA sequencing, gene therapy, genetic health, and genetic nutrition has opened up an immense market for the genetic industry. Precision medicine and nutrition built on a genetic basis will create new growth space for the big health industry.

2.2.3 The Research History of Economic Genetics In terms of the concept, the origins of economic genetics date back to health economics in 1972. In a hallmark event, Paul Taubman introduced twin studies into economics in 1976. He estimated heritability of income to be between 18 and 41%53 in a study of approximately 2500 white twins who were army veterans. The behavioral economics that won the 2017 Novel Prize in Economic Sciences should also belong to the field of economic genetics. However, these researchers did not search for a new development space from the most fundamental foundation of genes due to time restraint and their own academic background. Studies in economic genetics gained vitality with the advances of genetic sequencing. There has been a considerable reduction in the most common types of detection of genetic differences with the announcement of the findings of human genome sequencing in 2000 and the constant and rapid development of gene sequencing and analytical technologies. This has made it possible for researchers to measure genetic differences on a large scale and study the association between these differences and individual behavior. Studies on the relationship between genes and human behavior have therefore received increasing attention. Daniel Benjamin, an economist at Cornell University, defined genoeconomics and investigated the positive influence of genetics on human behavior economics. After that, David Laibson, Edward Laibson, and Christopher Chabris published a series of papers and promoted the development of the idea, and genoeconomics54 gradually received recognition. They maintained in their studies that the hereditary factors behind such personality traits as adventurous, patient, and generosity had been ignored by economists

52

Genetic economy: A focal topic of the new era by Wang Xuhui and Zhang Zhongying. Economic Working Guide Periodical, 2001 (4). 53 Genoeconomics: Biosocial Surveys. Washington DC: National Academy Press, 2008. 54 The Promises and Pitfalls of Genoeconomics. Annu Rev Econom, 2012, 4: 627–662.

82

2 The Bioeconomic Theory

in the past and that determining genetic influence in these aspects would bring transformational change to the whole discipline.55 In fact, the author proposed the concept of economic genes as early as 1998. In 2003, he further systematically explained the basic content of “econo-genology” in his paper DNA Double-Helix would Lead Human into a Biological Century and held that Adam Smith’s “invisible hand” was the “economic genes.” Analyzing from the perspective of genes, he concluded that the law of the invisible hand was actually the first law of econo-genology, and the invisible hand manipulating the market was the “economic genes.”

2.2.4 Prospects of Econo-Genology Econo-genology research is an exciting interdisciplinary field. It will provide new threads of thought for exploring social and economic development by studying the association between genes and behavior. The author pointed out in 2003 that after the completion of the Human Genome Project, the Economy Genome Project (EGP) would start. The development of genetic sequencing technology has brought the cost to below 100 US dollars, which has provided unprecedented opportunities for the development of econo-genology. The author hopes to express his wish that the world should be united to build a large sample database through large-scale genetic sequencing and to study the relationship between genes and heredity on the one hand and economy and society on the other. In so doing, not only could new ideas be proposed in the field of economics, but genetic data could also be used to predict mass groups’ economic behavior to adjust accordingly and in turn to provide new means and thoughts for solving world economic crises. The author wrote Suggestions on Establishing the National Big Gene Center (Bantang, Hefei) as an effort to promote the implementation of the EGP and the establishment of a national big gene center in Hefei Bantang Bioeconomic Experimental Zone—the center has been approved to be one of the seven major platforms for a comprehensive national scientific center56 in Heifei. Attachment: Suggestions for Establishing the National Big Gene Center (Bantang, Hefei) Pan Aihua: Sinobioway Group Co., Ltd. 55

Genoeconomics: Will you get good fortune, is it destined? http://www.sohu.com/a/74666705_ 119097 [2019-11-18]. 56 Hefei is the second city in the country to be approved to build a “Comprehensive National Science Center”. It plans to construct a quantum information national laboratory, a superconducting nuclear fusion center, an integrated information network Hefei center, a joint microelectronics center, and an ion medical center, distributed intelligent energy innovation platform, seven major platforms of a big gene center—big gene center is jointly constructed by Sinobioway and Beijing Institute of Genomics, Chinese Academy of Sciences.

2.2 Econo-Genology

83

(Finalized on August 1st, 2016). The prediction that the twenty-first century will be the century of biology is becoming a reality. The main symbols of the century of biology are as follows: life sciences will become the leading discipline, the bioeconomic industry will become the pillar industry, and humans will enter the era of bioeconomics in 2020. Life science, becoming the leading discipline, has the following specific meaning: life science will provide research thoughts and methods for other disciplines. With constant breakthroughs in life science studies, it has been increasingly proven true that “genes dominate life”—that is, the life process, life behavior, and life changes are all up to genetic activities and changes. As a unique resource, genes not only determine the future economic and social development level of a country but are related to fundamental national interests and national security. Bill Gates has allegedly predicted that “the next richest men in the world must come from the genetic field.” It could be said that the one who wins the genes will win the world. In a similar fashion, building a national big gene center concerns the rise and fall of the nation as well as the future of human beings. 1. Goals The three goals of the national big gene center are to reveal the nature of life, discover laws of life activities, and address the six issues humans are faced with: population, health, food, environment, energy, and biosecurity. 2. The main research content Humans have experienced four economic eras: the gathering and hunting economy, the agrarian economy, the industrial economy, and the information economy we are living in. The agrarian economy changed humans’ means of survival. The industrial economy means production, the information economy, the way of living, and what the bioeconomy will change is the concept of life. It is suggested that three major parts should be included in the core content of the national big gene center to welcome the arrival of the bioeconomic era.

2.2.4.1

Research in the Nature of Life

This part is mostly to conduct research in dimensions such as the nature, origins, and development of life, mainly including three aspects: life-gene research, econogenology research, and social-genology research. Life-gene research mainly includes three parts—that is, to obtain the genes of animals, plants, and microorganisms and build massive gene banks using largescale sequencing technologies; to obtain massive disease-related genes and build disease-related gene banks using advanced precision medical technologies and clinical diagnosis technologies; and to build repositories of different tissue samples using advanced preservation technologies. This will lay a solid foundation in studying the laws of the origins, development, and evolution of life by taking further steps

84

2 The Bioeconomic Theory

in applying genomics, proteomics, metabonomics, phenomics, and other types of omics; it will also provide the strongest guarantees for developing precision medicine, precision seeding, etc. and expanding the large-scale application of genes. Econo-genology research: According to the theory of econo-genology created by Dr. Pan Aihua, econo-genology is about seizing the invisible hand Adam Smith has put forward in The Wealth of Nations with the ideas and approaches of life sciences and medicine. The econo-genology doctrine refers to the internal control force in economic operation, and such an internal control force (the invisible hand) is the economic gene. Dr. Pan Aihua first proposed econo-genology in 1998 and published a scientific paper titled DNA Double-Helix Leads Humans into a Biological Century in November 2003. He systematically expounded the basic content of econo-genology in the article and proposed that after the HGP, the human being should start implementing the EGP. Social-genology research: According to the theory of econo-genology created by Dr. Pan Aihua, social-genology is to study human society with the ideas and approaches of life sciences and medicine. The basic content of social genology: family is the code of society; organizations are the genes of society, and communities are the cells of society. Based on the theory, communities should be the focus and center of social construction, management, and services; community reforms should be regarded as a basic unit of reforms rather than an isolated organization. This is because only cells can survive, whereas genes cannot survive alone. Dr. Pan Aihua first proposed econo-genology in 1998 and published a scientific paper titled DNA Double-Helix Leads Humans into a Biological Century in November in Acta Scientiarum Naturalium Universitatis Pekinensis (Journal of Peking University [Natural Science Edition] vol. 39, issue 6) in November 2003. He systematically expounded the basic content of econo-genology in the article and proposed that after the HGP, humans should start implementing the Social Genome Project (SGP).

2.2.4.2

Synthetic Biology

Synthetic biology refers to the comprehensive use of knowledge and technology in chemistry, physics, molecular biology, and informatics to design, modify, reconstruct or manufacture biomolecules, biological components, biological reaction systems, metabolic pathways and processes, and even cells and biological individuals. In 2000, Nature reported the research results of synthetic gene circuits. In 2016, biologist Craig Venter announced that he built the simplest genetic life form known to science, made entirely through chemical synthesis of a custom-made genome after creating the first synthetic genome-driven cell in 2010. In May 2016, some scientists revealed a proposal to build the human genome from scratch within ten years. Driven by various plans and research achievements, synthetic biology has received worldwide attention. It has been generally recognized as having broad application prospects

2.2 Econo-Genology

85

in the fields of medicine, pharmaceutics, chemical engineering, energy, materials, agriculture, and so on.

2.2.4.3

Application Studies

Application studies are mainly about promoting the full-scale application of new technologies, methods, and products by using big gene center platforms and actively developing the application of genes and other data.

Precision Medicine Precision medicine is the crossover and integrated application of biological and information technologies in clinical practice; it is a cutting-edge direction of medical technology development, the third milestone in medical development. A systematic approach to reinforcing the layout of precision medicine research is critical to accelerating technological breakthroughs in preventing and controlling major diseases, taking the lead in future development in medicine and relevant industries, and creating a new driving force in the development of China’s life and health industries. Sinobioway is establishing the world’s first GHP system and will provide new methods and means for the development of precision medicine.

Precision Seeding Precision seeding refers to the use of crop genetic breeding, genomics, bioinformatics, and other knowledge to achieve a direct, accurate, and efficient selection of genotypes to greatly improve the efficiency of breeding and promote breeding technology to transform from traditional to modern practices, from small workshops to large-scale operations. Sinobioway has established the world’s largest, best-quality, and industry-leading rice mutant library, a world-leading rice gene discovery platform, and intelligent sterility and molecular design breeding platform and has discovered more than 120 functional genes for drought resistance, high nitrogen utilization, cold resistance, insect resistance, high yield, and other traits. Sinobioways have become a world-class precision breeding center.

New-Drug Development With the continuous deepening of functional genomics, structural genomics, proteomics, and other omics studies, on the basis of clarifying disease-related gene traits, drug research based on its regulatory pathways and networks has become an important development direction at the current stage of international innovative drug development, which will change the pattern from gene function to drug development.

86

2 The Bioeconomic Theory

In fact, genomic research has become a new means of new drug development. Sinobioway is building the world’s first bioeconomic incubator (new-drug expressway) in Heifei, Anhui, which is set to trigger off a revolution in new-drug research and development; its cooperation with the American company BioAtla will bring it to a leading position in the research and development of the fourth-generation antibody drugs based on Conditionally Active Biologics (CABs) technology; research in the area of strong artificial intelligence will also provide a powerful impetus for new-drug research and development in Sinobioway.

CAR-T Chimeric antigen receptor T cells (CAR-T cells) are currently a hot spot of adoptive immunotherapy for tumors globally and are the main force of immunotherapy. At present, they have shown good effects in tumor treatment. Experts expect CAR-T cells to be a great success in the near future, providing a new way for humans to solve the tumor problem completely. Since 2015, second-generation CAR-T technology has been jointly developed by Anhui Sinobioway Bioeconomy Group Co., Ltd. and Baylor College of Medicine have completed more than 140 clinical trials; the efficacy is very obvious and is at the forefront of the world. Recently, Sinobioway has invested in fourth-generation CAR-T technology (CAB-CAR-T) in the United States and has firmly occupied the leading position in the world.

Stem Cells Stem cell research has become a popular direction in the field of biomedicine in recent years. The stem cell industry has huge social benefits. Countries around the world highly value market prospects. The future global scale can reach 400 billion US dollars, and the compound growth rate for the domestic five-year market scale reaches above 40%. At present, the United States, the European Union, Japan, South Korea, and China have invested heavily in the field of stem cells to support basic and clinical research and vigorously promote the industrial development of stem cells. From the perspective of future applications, the combination of stem cells, precision medicine, and functional gene research will become the main direction. Currently, PIPS (protein-induced pluripotent stem cells), an investment project of SinoBioway, is in a leading position in stem cell research. Tumor treatment, especially for the treatment of solid tumors, has shown sound clinical treatment effects.

Gene-Editing Technology Gene editing technology refers to technology that can directly design and modify the most basic genetic units of genes. There are three commonly used gene editing technologies: CRISPR, TALEN, and ZFN, but the most advanced one is CRISPR. At

2.2 Econo-Genology

87

present, CRISPR has been applied in agriculture and disease treatment. SinoBioway has successfully established an efficient multigene vector assembly system based on CRISPR/Cas9 gene editing technology and created a breeding system based on gene editing. It is currently working on applying the system to breed new rice varieties with improved drought resistance and high yields.

2.2.5 The Strengths of Sinobioway 2.2.5.1

Strengths of the Group Company

Sinobioway has made massive amounts of pioneering efforts during its two decades of development. It has made remarkable achievements, created many “firsts” in China and the world at large during the development of the bioindustry in China, and has developed to be the leading company in China’s bioeconomic industry and the place of origin of the global bioeconomy.

2.2.5.2

Team Strengths

Over two decades of development, the company has cultivated a management team that “understands genes” and built a world-class research and development team. In particular, the author, the incumbent chairman, and a cofounder are regarded as entrepreneurs with a scientist mindset, scientists with market awareness and the “father of bioeconomy.”

2.2.5.3

Strengths of Foundational Conditions

In addition, SinoBioway has other software and hardware conditions to undertake the large gene center. First, in terms of hardware conditions, 400,000 m2 of infrastructure has been completed for the development of modern bioeconomic industry and research and development in the Bantang Bioeconomy Experimental Zone Sinobioway has jointly built with Chaohu Economic Development Zone in Hefei, in which there is the world’s largest biopharmaceutical manufacturing center and a new-drug research and development center. The building complex was uniquely designed using the four bases-ATCG as the architectural modeling—the only one in the world that has literally written genes on the earth. In summary, Bantang, Hefei, has been equipped with hardware to undertake the large gene center. Second, in terms of software conditions, Sinobioway’s biointelligence technology (the core technology for the fifth-generation computer system) is leading in the world’s new generation of information technology. It has completely overturned the

88

2 The Bioeconomic Theory

high-performance computing model. Sinobioway will not only lead a new information industry revolution but also build up unparalleled advantages in storage, analysis, and digging of genetic big data. Third, in terms of technological conditions, Sinobioway also has a good foundation in genetic research. In particular, it has achieved a series of world-class research and development results in crop genetic discovery and molecular breeding. Sinobioway has been approved and built four national-level technology centers and two national-level demonstration bases: National Crop Molecular Design Center, National Plant Gene Research Center, The Improved Seed Creation Center of National Modern Agricultural Science and Technology City, National Crop Molecular Design Engineering Technology Research Center; Forest-oil Integration Demonstration Base and National Underforest Economy Demonstration Base; and became the first enterprise in China to pass the Excellence Through Stewardship (ETS) certification in 2013. Sinobioway has achieved a series of scientific and technological breakthroughs: it has established intelligent sterility and molecular design technology that may trigger the third agricultural revolution, the world’s first rice whole-genome chip, the world’s largest rice mutant library, rice functional genomics research, and rice transformation platform, and has discovered superior corn, rice, oilseed rape, and cotton species. In 2015, the Beijing Institute of Genomics of the Chinese Academy of Sciences, Hefei Municipal People’s Government, and Sinobioway signed a strategic cooperation agreement to jointly build the “Hefei Bantang Sinobioway—BIG Gene Research Center.” Tripartite cooperation has now entered the implementation stage. The Beijing Genomics Research Institute is China’s most powerful research institute in the field of genomics research. It has participated in the completion of the International Human Genome Project and Haplotype Map Project, independently completed the Super Hybrid Rice Genome Project in China, led the major research plan of “Multiple Gene Interaction Mechanism in the Microevolutionary Processes” of the National Natural Science Foundation and a series of major scientific projects such as the Chinese Population Precision Medicine Research Program of the Chinese Academy of Sciences, and has made breakthroughs in tumor microevolution, epigenetics, and precision genomics. In summary, the National Big Gene Center (Bantang, Hefei) is of great significance; it is plausible and practical. After completion, the big gene center will play an important key role in revealing the essence of life, discovering the laws of life activities, and solving the six major problems facing humanity in population, health, food, environment, energy, and biosecurity. Meanwhile, it will make a tremendous contribution to the great rejuvenation of the Chinese nation and national security and lead to peaceful and sustainable development for human beings.

2.3 Socio-Genology

89

2.3 Socio-Genology Socio-Genology is the sociological theory generated through studying sociology using the ideas and approaches of life sciences and medicine, a discipline that reveals the laws of the social operation.

2.3.1 Basic Concepts of Sociology 2.3.1.1

The Basic Concepts of Sociology

Sociology is the systematic study of social behavior and human groups.57 It is a broad discipline that studies society’s structure, function, occurrence, and development through social care and social behavior from the perspective of society as a whole.58 Because of its historical development, sociology originated in the 1930s and 40s as it evolved from philosophy to become a discipline. In this sense, sociology should be within the social sciences and is paralleled with economics, politics, anthropology, psychology, history, and so on. The term sociology was first coined by Auguste Comte (1788–1857), a French philosopher and known as the father of Sociology. He believed that all human activities would unanimously experience totally different historical stages, and if a society could seize the stage, it could fix social problems. However, his sociological ideas are typical of those in the eighteenth century. In the nineteenth century, humans realized that as the world decreased and drawn together, individuals’ understanding and exploration of the world became increasingly divided and dispersed. How can this separation and contradiction be solved to benefit society? Some scholars have hoped to find the basic laws of social operation and understand the development process of societal collapse to make corrections and guide society to move forward. For this purpose, they established a series of research frameworks, ranging from ethnicities, peoples, classes to genders, family structures, and individual-societal models. They conducted observations, in-depth interviews, and seminars to collect data and perform qualitative and quantitative analyses.

2.3.1.2

A Brief History of Sociological Studies

Historically, as an independent discipline of empirical science, the development of sociology experienced three periods: the foundation stage from the 1930s to the years

57

The Institute of Sociology of Chinese Academy of Social Sciences. Chinese Sociology (Vol. 10). Shanghai: Shanghai People’s Publishing House, 2014. 58 Sea of Chinese Words (6th edition) (Ci Hai). Shanghai: Shanghai Lexicographical Publishing House. 2010.

90

2 The Bioeconomic Theory

before World War I, the institutionalization stage between the two world wars, and the contemporary stage after World War II.59 The foundation stage: 1930s and 40s. It is generally believed that sociology was born in Europe in the 1930s and 40s, marked by the appearance of the term sociology. In The Course of Positive Philosophy (Cours de Philosophie Positive), Auguste Comte first introduced the term, considering it a comprehensive science of systematic explanation on social order and social progress. In Principles of Sociology, English sociologist Herbert Spencer put forward the concept that society was an organism or a superorganic collective. The publishing of the two books heralded the emergence of sociology as a discipline. The institutionalization stage: the first half of the twentieth century. The United States was a representative of this stage, which saw the flourishing of many sociologists: Lester Frank Ward and Willian Graham Sumner founded the American Sociological Association in 1905; Robert Ezra Park et al., known as the Chicago School, conducted massive amounts of empirically grounded studies in the American problems of urbanization, human migration, race conflicts, poverty and crimes in the 1920s, which displayed the effects of sociology in addressing practical social issues; William I. Thomas and Florian Znaniecki wrote the book The Polish Peasant in Europe and America,60 which set an example in the use of scientific methods in collecting and analyzing data in sociology. Under the guidance of the United States, relevant societies, research methods, and means have come to be established, and the institutionalization of sociology has begun to be formed, which has provided references for sociology in countries such as Britain, France, and Germany. The contemporary stage: from World War II until now. After World War II, world history entered a new period. As revolutions in science and technology enriched people’s social life, corresponding adjustments were made in the way of thinking and behaving, which led to a number of new social issues; meanwhile, advances in science and technology also provided more developed technological means for conducting sociological studies, making it possible to bring an understanding of social phenomenon to deeper aspects and wider dimensions, and more accurate and effective in addressing practical social problems.

2.3.1.3

Triplet Code

Considering that socio-genology theory involves the concept and ideas of genetic codons (triplet codes), the author now provides a brief account of triplet codes. The triplet code means that one amino acid on the protein polypeptide chain is translated from every three nucleotides on the mRNA, which means that three nucleotides correspond to one amino acid. These three nucleotides are called codons, also known as triplet codes. 59

Li Yi: Introduction to Sociology. Guangzhou: Jinan University Press, 2011. The Polish Peasant in Europe and America. Authors: William I Thomas, Florian Znaniecki. Translator: Zhang Youyun. Nanjing: Yilin Press, 2000.

60

2.3 Socio-Genology

91

We know that there are only 4 kinds of nucleotides in a mRNA and 20 kinds of amino acids in a protein. The correspondence between nucleotides and proteins is a relationship that deserves attention because if one nucleotide corresponds to one amino acid, then there are only 4 amino acids in the world (41 = 4); if two nucleotides correspond to 1 amino acid, then there are 16 kinds of amino acids in the world (42 = 16). Neither situation can satisfy the actual existence of 20 amino acids. Then, there can only be 3 nucleotides corresponding to 1 amino acid (triad), and only in this way can the needs of encoding 20 amino acids (43 = 64, 64 > 20) be met. According to the calculation of 3 nucleotides corresponding to 1 amino acid, there should be 64 kinds of amino acids. In addition to the termination of the 3 expressed protein polypeptide chains, there should also be 61 kinds of amino acid codons. However, there are only 20 genetic amino acids in the biological body, so one amino acid can have several different codons. Since 1961, scientists have carried out a large number of experiments and found the corresponding amino acids using 64 known triplet codes. From 1966 to 1977, the entire genetic code dictionary was completed (Table 2.2). The results show that most amino acids have several triplet codes, as many as 6 and as few as 2, but tryptophan (symbol Trp/W) and methionine (Met/M) have only one triplet code. In addition, the termination signals for the synthesis of the three triplet codes—UAA, UAG, and UGA—mean that they do not encode any amino acids.

2.3.2 Socio-Genology 2.3.2.1

Traditional Sociology Are Facing Difficulties

During its development, sociology has always been troubled by the question of whether it is a science or not, which is inseparable from the process’s divergences. In terms of the sociological research methods, there have been two strikingly different tendencies61 since the very beginning. The science school with an empirical tendency represented by Comte, Spenser, and Emile Durkheim, who believe there is no essential difference between social and natural phenomenon, therefore a unified knowledge system should be built-in social sciences based on the standard model of natural sciences and explained with general rules; and the other school, represented by Maximilian Karl Emil Weber et al., who argues that social phenomenon have their unique properties and laws, and one must never blindly follow the example of natural sciences in the study of social sciences, which has formed the humanistic tendency in sociological research. Due to the debate, the lack of a unified theory to coordinate the relationship between the two, and the failure of sociology in many aspects to provide guidance to society, the development of sociology has drawn considerable controversy. There 61

Wen Jun: Challenges and Innovations for Sociology in the Process of Globalization. Social Science Research, 2005, 5.

92

2 The Bioeconomic Theory

Table 2.2 Genetic codon table

was an extreme situation of expelling sociology from science in the academic circle. On June 8, 2015, Hiromura Shimono, the then Japanese Minister of Education, Culture, Sports, Science, and Technology, wrote to the presidents of 86 universities in Japan asking them to take “active steps to abolish social sciences and humanities departments…; some scholars in Switzerland, United States, and France also argue that sociology is a discipline that is hard to make sense with.62 It is mainly based on the falsifiability of science, but sociology does not conform to this basic principle.

62

Gérald Bronner and Étienne Géhin: Is science needed for Sociology? Scientific American (Chinese Edition), 2018 (153).

2.3 Socio-Genology

2.3.2.2

93

The Proposal of Socio-Genology

In the course of long-term thinking and research, the author has also realized some of the existing issues with sociology and has tried to introduce the ideas and approaches of life sciences and medicine into sociology. He proposed the concept of sociogenology in 1998, and in the article DNA Double-Helix will Lead Human into a Biological Century in 2003, he systematically expounded on the basic content of socio-genology—that is, the discipline of a new theory and new model formed by applying the ideas and approaches of life sciences and medicine in the study of social behavior and human groups.

2.3.2.3

The Basic Concepts of Socio-Genology

Similar to the gene concept in biology, any social phenomena have their own “genes” (i.e., social genes). Social genes are the fundamental factors for the occurrence and development of a social phenomenon and the underlying characteristics of the laws of social operation. Since social genes are the fundamental way to understand social operations, humans must have a concrete understanding and research into social genes. However, as social genes are composed of humans and each individual is different, there would be huge differences if one analyzes society from this point and may never find a way or approach to solve the problem. How to understand social genes? Since the foundation of social genes is humans, we need to see from the perspective of humans. In view of biology, genes are the foundation of the human body; to go one step further, we could understand social genes from the perspective of genes. According to the basic principles of genetics, humans have 23 pairs of chromosomes and more than 6 billion bases (Table 2.3); similarly, the over 6 billion people in human society are just like the 6 billion bases (more than 3 billion base pairs, just as there are more than 3 billion males and females, respectively) on the 23 pairs of chromosomes in human cells (see the “Chromosome model diagram” in “econo-genology”). They are arranged and combined into genes in a certain order, controlling the production of different cells, and different cells are combined into a higher-level tissue structure. Could there be an implied meaning, such as an approximation between world population and the number of bases on chromosomes? Combined with the Theory of Information Carrier of Life (which will be explained in detail in the following text), the author believes that since humans are the information carrier designed by the wise man, perhaps we could consider how to promote sociological studies from this perspective. To this end, the author concludes after years of thinking, studies, and analysis that while we explore and reveal the movement laws of human society and determine the fundamental origins of the process, we need a thorough understanding of the ideas and approaches of life sciences and medicine and apply them in studies of society. It is only in this way that we can reveal the operational laws of human society.

94

2 The Bioeconomic Theory

Table 2.3 Data on the same chromosome from NCBI databases (Genome Reference Consortium) Chromosome

Name

Chr

1

Chr

2

Chr

3

Chr

4

Chr

5

Chr

6

Chr

7

Chr

8

Chr

9

Chr

10

Chr

11

Chr

12

Chr

13

Chr

14

Chr

15

Chr

16

Chr

17

Chr

18

Chr

19

Chr

20

Chr

21

Chr

22

Chr

X

Chr

Y MT

Un

-

RefSeq

INSDC

NC_0000 CM0006 01.11 63.2 NC_0000 CM0006 02.12 64.2 NC_0000 CM0006 03.12 65.2 NC_0000 CM0006 04.12 66.2 NC_0000 CM0006 05.10 67.2 NC_0000 CM0006 06.12 68.2 NC_0000 CM0006 07.14 69.2 NC_0000 CM0006 08.11 70.2 NC_0000 CM0006 09.12 71.2 NC_0000 CM0006 10.11 72.2 NC_0000 CM0006 11.10 73.2 NC_0000 CM0006 12.12 74.2 NC_0000 CM0006 13.11 75.2 NC_0000 CM0006 14.9 76.2 NC_0000 CM0006 15.10 77.2 NC_0000 CM0006 16.10 78.2 NC_0000 CM0006 17.11 79.2 NC_0000 CM0006 18.10 80.2 NC_0000 CM0006 19.10 81.2 NC_0000 CM0006 20.11 82.2 NC_0000 CM0006 21.9 83.2 NC_0000 CM0006 22.11 84.2 NC_0000 CM0006 23.11 85.2 NC_0000 CM0006 24.10 86.2 NC_0129 J01415.2 20.1 -

Size (Mb)

GC(%)

Protein

rRNA

tRNA

Other RNA

Gene

False gene

248.96

42.3

11 028

17

90

4 463

5 104

1 408

242.19

40.3

8237

-

7

3 752

3 879

1 201

198.3

39.7

7 087

-

4

2 779

2 994

909

190.22

38.3

4 552

-

1

2 204

2 439

805

181.54

39.5

4 743

-

17

2 221

2 594

789

170.81

39.6

5 503

-

138

2 506

3 019

890

159.35

40.7

5 207

-

22

2 399

2 772

914

145.14

40.2

4 095

-

4

1 998

2 175

680

138.4

42.3

4 635

-

3

2 239

2 272

721

133.8

41.6

5 424

-

3

2 159

2 180

643

135.09

41.6

6 519

-

13

2 378

2 924

834

133.28

40.8

5 953

-

9

2 501

2 537

698

114.36

40.2

2 019

-

4

1 238

1 379

475

107.04

42.2

3 492

-

18

1 714

2 062

586

101.99

43.4

3 548

-

9

1 782

1826

563

90.34

45.1

4 584

-

27

1 790

1 947

478

83.26

45.3

6 093

-

33

2 258

2 453

572

80.37

39.8

2 022

-

1

1 002

985

297

58.62

47.9

6 700

-

6

1 889

2 491

523

64.44

43.9

2 798

-

-

1 312

1 359

340

46.71

42.2

1 285

12

1

708

778

208

50.82

47.7

2 475

-

-

999

1 188

356

156.04

39.6

3 799

-

4

1 278

2 199

893

57.23

45.4

321

-

-

318

582

396

0.02

44.4

13

2

22

-

37

-

183.8

44.3

6 491

17

159

3 588

6 615

1 864

Data source https://www.ncbi.nlm.nih.gov/genome?term=human%5Borganism%5D&cmd=Detail sSearch [2019-11-19]

2.3 Socio-Genology

95

For this purpose, the author has proposed the concept of socio-genology, the study of society by applying the ideas and approaches of life sciences and medicine. Only on such a basis can we guide social reforms with the sociological theories we learned.

2.3.2.4

The Basic Content of Socio-Genology

Based on the author’s research, the core content of socio-genology could be summarized as three points: family is the code of society, organizations are the genes of society, and communities are the cells of society (Fig. 2.18).

Family is the Code of a Society According to the common sense of biology, from the simplest organism—virus— to the most complex organism—the human body, the genetic code is composed of 3 bases—that is, the 4 bases of ATCG are formed by different arrangements of 3 bases, or 43 (64) genetic codes—triplet codes (triple codes in short). Since there are 64 kinds of codons and only 20 kinds of amino acids, many amino acids are encoded by more than one codon. Different codons that encode the same amino acid are known as synonymous codons. The first two bases of the synonymous codons are generally connected. Changes in the third base do not affect the encoded amino acid (i.e., codon degeneracy, also known as the Wobble hypothesis).

Fig. 2.18 The concept and model diagram for the socio-genology theory

96

2 The Bioeconomic Theory

Meanwhile, the family is composed of the father, the mother, and the children, forming the “codes” of a society just as the triplet codes: there could be several children in the family, but their father and mother remain unchanged, which also conforms to the degeneracy of codons. Such a phenomenon could also be explained from the perspective of biology. A zygote is the beginning of a new human being, but normally, when an egg and sperm come together to form a zygote, only one sperm is allowed to fuse with the egg. Therefore, one person can only correspond to one egg and one sperm, i.e., one son (or daughter) can only have one father and one mother, but the father and mother can have several children.

Organizations are the Genes of a Society Genes in an organism (genetic factors) are segments of DNA with genetic effects that support life’s basic structure and function. Generally, a gene is a stable genetic unit. A single gene or multiple genes determines a certain genetic trait of an organism. In society, organizations (such as universities, companies, or government departments) are formal organizations with specific functions and the basic constitution of political and economic systems. They have a pivotal role in modern human social life. Organizations, as genes of society, form various functions of human society.

Communities are the Cells of a Society Biological cells are the fundamental units of an organism’s metabolism, growth, development, genetics, etc. It is generally believed that organisms other than viruses are composed of cells. In sociology, a community is defined as a living unit and survival community of human beings that are more specific than society and created by natural will and is a community of people in an area. Socio-genology theory has revised the view that “family is the cell of a society,” which has been used in sociology in the past, and has clarified that the community is the smallest living or life unit in a society—that is, the community is the cell of a society.

2.3.2.5

The Research Direction of Socio-Genology

In the article in 2003, the author pointed out that human beings should start carrying out the “Social Genome Project” after the Human Genome Project. After providing an overview of relevant research results of the HGP, the science magazine also put forth the ideas and thoughts of undertaking sociological studies by making active use of genome project-related knowledge. The author maintains that socio-genology consists of three aspects.

2.3 Socio-Genology

97

The first aspect: humans are the foundation of social genes. Humans are the main body of society, but their behaviors are under gene control. Therefore, the laws of human social behavior can be obtained through genetic analysis of individuals. The second aspect: what are social genes? In society, formal organizations with specific functions and the basic constitution of political and economic systems are known as organizations, such as universities, companies, or government departments. They are the genes of a society. The laws of operation of organizations can be understood through genomic analysis and processing of certain groups (units). The third aspect: social genomics. The laws of operation of human society can be explained and predicted to a certain extent through big data analytics of the genomes of all human beings.

2.3.2.6

The Differences Between Socio-Genology and Genetic Sociology

There are 20,000–30,000 genes in the human body. The interactions among different genes may be various changes to humans. This and the recent rise of epigenetics have facilitated a deeper understanding of genes. In The Society of Genes, Itai Yanai and Martin Lercher maintain that the human language, cancers, and our cells’ cooperation with rivals all result from the effects of genes. Our genome is composed of a genetic society, analogous to that of human society, and similar to human society, members of the genetic society also unite or oppose each other. The Society of Genes reveals the genetic strategies that genes use in cooperation and competition from cells and individuals to entire species at all biological scales. Because all human genomes are composed of the same genes, the replication of a single gene in different individuals may be different due to mutations. To compete for the highest position in future generations of the human genome, fierce competition is also taking place between different replications of the same gene. Due to the complex interactions among genes with the coexistence of cooperation and competition, all genes are regarded as members of society. Metaphors or analogies of society based on the analysis of the point mentioned above can be regarded as the society of genes. It is a completely different concept from the socio-genology the author has proposed.

2.3.3 The Guiding Significance of Socio-Genology on Social Management and Reforms According to the theory of socio-genology, communities should be the focus and center in social construction, management, and services; communities, rather than isolated “organizations,” should also be treated as a basic unit in reforms. This perhaps explains why special zones tended to be successful in China, while organizational reforms ended in failure.

98

2 The Bioeconomic Theory

This has provided a new thread of thought for future social reforms in China. Only cells could survive, whereas genes cannot live alone. Social reforms should be built upon a cellular foundation—that is, to carry out the reform starting from the cell, the smallest independent functional unit, so that there might be new ways of thinking to address the problems entered during the reform thoroughly. In addition, socio-genology-related concepts have also provided thoughts for launching new reforms in China. Deng Xiaoping first proposed building “special export zones” in April 1979, which was renamed “special economic zones” in March 1980; in August, the Central Committee of the Communist Party of China and the State Council officially approved the decision to build special economic zones in Guangdong’s Shenzhen and Zhuhai before three more were built in Guangdong’s Shantou, Fujian’s Xiamen and Hainan in succession. Special economic zones (“cellular,” new zones), particularly the one in Shenzhen, have had a universally recognized role and significance in China’s reform and opening up and economic development. The author believes that 40 years later, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we must break a new path to fulfill the thought of “Two Mountains”—“clear waters and green mountains are as good as mountains of gold and silver,” and to implement the rural revitalization strategy. Therefore, it is imperative that we establish “mountainside economic belts” and “mountainside special economic zones” under the guidance of the bioeconomic theory system and apply the socio-genology theory to transform poverty-stricken mountainous areas into growth poles.

2.3.4 To Provide Scientific Evidence for Building a Community of Shared Future for Humankind On March 11, 2018, the Constitution Amendment adopted at the first meeting of the 13th National People’s Congress amended the sentence “while developing diplomatic relations and economic and cultural exchanges with countries” in the twelfth natural paragraph of the preamble of the Constitution to “promoting the building of a community of shared future while developing diplomatic relations and economic and cultural exchanges with other countries.” This is a new era of socialism with Chinese characteristics put forward by the CPC Central Committee with Xi Jinping at its core. It is one of the basic strategies for adhering to and developing socialism with Chinese characteristics in the new era, and it is also the ideal pursued by the people of the world. Building a community of shared futures has a profound foundation—that is, all of us only have one planet to live on, so any country in the world needs to consider the reasonable concerns of other countries while pursuing its own interests, i.e., considering the common development of the world in the pursuit of its own national development.

2.4 The Triad Theory

99

From a historical point of view, building a community of common destiny completely fits the objective and fundamental needs of the development of the contemporary world: under the condition of economic globalization, countries are in a state of mutual connection and dependence, with their interests intertwined, and are increasingly bound together in a community of shared destiny.63 Meanwhile, building a community of common destiny combines the Charter of the United Nations with contemporary global governance. It will contribute to China’s efforts to the realization of peace and the development of humankind. While the Chinese first put forward the idea of a community of shared destiny, there remain different interpretations of the notion in the international community against the current backdrop of the international situation. There are a number of misunderstandings, and one of the core reasons is a lack of suitable scientific evidence at the moment. However, the proposal of the theory of socio-genology provides a solid theoretical foundation for such an idea. Based on the theory, communities are equivalent to normal living cells, which are the smallest unit of life. Cells come in significantly different sizes, with the smallest being mycoplasma (only 0.1–0.3 μm in diameter) and the largest generally believed to be ostrich eggs (on average 15 cm long, 13 cm wide). The differences are 1 million times, but they are all cells in which each element, such as a protein or an ion, is a basic particle that performs in proper order. Similarly, there might be less than 100 people in the smallest community on earth, and yet to view the Earth from the universe, it is merely a community despite its over 6 billion population. The two vary in size but have the same function and can coexist in the same space. Nevertheless, deliberate destruction of the space inevitably leads to cell death. In this sense, the socio-genology theory has also provided the same theoretical foundation for the Belt and Road initiative.

2.4 The Triad Theory The core idea of the triad theory is that number 3 is the most special among the various elements that form the world. Based on the author’s understanding, number 3 is a golden key to opening the world. The secret code to open the world lies in the understanding of the triad theory.

63

Ma Jiantang: Building a Community of Common Destiny to Contribute the Chinese Wisdom to the World. CCP magazine Qiu Shi (Seeking Truth), 2017: 41.

100

2 The Bioeconomic Theory

2.4.1 The Numbers and World in the Thought of Ancient Scholars 2.4.1.1

Ancient Greek Philosophers

Looking back on the evolution of human thought, numerous people have understood and interpreted the world from various perspectives, from which philosophy gradually formed—the study of wisdom. In fact, there was no pure philosophy in the world. The word philosophy, which originated in Greek, literally “love of wisdom,” is the study of fundamental questions about the nature of the universe, the general laws of evolution of all beings, and the position of humans in the universe. Among many philosophers, those who understood the world from the perspective of numbers date back to Pythagoras (580 BCE–500 BCE, Ancient Greek mathematician, and philosopher). Upon thinking, studies, and analyses, Pythagoras and his followers put forward the belief that “everything is number.” They believed that all things were made of numbers, that harmony and proportion were interrelated and permeated all things and that numerical relations shaped the nature of things. However, the Pythagorean school believed that numbers were rational. Later, with the emergence of irrational numbers, some people believed irrational numbers were the origin of the world. The debate about whether the world was rational or irrational numbers caused immense panic. Pythagoras’s student Hippausus, the discoverer of irrational numbers, was prisoned, tortured, and sentenced to death by drowning. In fact, neither rational nor irrational could be used to understand and interpret the world alone. Ancient Greeks regarded rational numbers as forming a continuum. Nevertheless, Hippausus’s discovery revealed flaws of rational numbers: rational numbers cannot cover all points on the number axis. There are “intervals” on the number axis that rational numbers cannot represent. This caused the collapse of the ancient Greek idea of rational numbers as a continuous connection of the “arithmetic continuum.” Nevertheless, it also promoted the development of axiom geometry and logic, prompting people to abandon intuition, experience, and rely on evidence and gave birth to the bud of calculus.

2.4.1.2

Ancient Chinese Philosophers

At about the same time as Pythagoras in China, a renowned philosopher was Laozi (or Lao Tzu, which literally means “old master”). Laozi itself is an honorific title. In traditional accounts, Laozi’s actual personal name is Li Er, his courtesy name as Boyang, with a prominent posthumous name Li Dan. According to historical records, he lived in the late Spring and Autumn Period, and was a native of Ku County in the kingdom of Chu (now Luyi County, Henan Province). He is recognized as an ancient Chinese thinker, philosopher, writer, and historian credited with founding the philosophical system of Taoism. He is best known as the author of the Tao-Te-Ching, the work that exemplifies his thought. It is one of the three most influential Chinese

2.4 The Triad Theory

101

philosophical masterpieces (the other two are Analects of Confucius and I Ching or Book of Changes). In Tao-Te-Ching, Laozi explains that the Tao is the underlying natural order of the Universe: First, there was this nebulous Thing— Before the birth Of Heaven and Earth: It was soundless, It was formless, Independent and changeless, Revolving, circulating, and ceaseless -That can be regarded as the Mother of All Thing. To name it, I do not know how; I just call it the Way -- "Dao." Loosely speaking, it is "Great." (Translated by Frank C Yue)

However, how has Tao become All Things? Laozi made further deductions: Tao begets one; one begets two; two begets three; three begets the myriad things. At this point, three is the breakthrough point, and it seems that when things get to the stage of three, immense energy is released to promote the rapid expansion of myriad things in the world. In this sense, philosophers from different parts of the world agree on one notion: the world originates in numbers, and the expansion of numbers formed the universe. For the formation process itself, there are stark differences between Eastern and Western philosophy. Pythagoras and related schools of later generations only believe that the world is composed of numbers but do not explain how. In the Chinese wisdom, in the eyes of Laozi, the world is dynamic, and it is the dynamic changes and extension that formed the world: from one to two, two to three, and so three is the origin of the world.

102

2 The Bioeconomic Theory

2.4.2 From Monism to Triad Theory: New Advances in Understanding the World 2.4.2.1

Monism

Monism claims that there is only one source of understanding the world.64 Thorough materialists or radical idealists are representatives of monism. The literature survey shows that monism came from the ancient Greek μ´oνoς, first used by Christian Wolff (1679–1754), German mathematician, physicist, and idealist philosopher, in the eighteenth century, meaning that all reality is ultimately indivisible, either mental (idealism) or materialistic (materialism). At the end of the nineteenth century, German zoologist and philosopher Ernst Haeckel (1834–1919) began to use it as a philosophical term. They called the species conservation principle and evolutionary worldview monism. In Haeckel’s monistic view, various world aspects were assumed to form a basic unity, and all economics, politics, and ethics were reduced to “applied biology”. In addition, Haeckel also founded the “Monist Association” and wrote the manuscript of Der Monismus als Band Zwischen Religion und Wissenschaft (English: Monism as a Link between Religion and Science).65 As a matter of fact, monism is the creed of many. This may be related to human nature because humans—whether ordinary people or philosophers, or thinkers—tend to believe there is an optimal solution in the world. Georgi Valentinovich Plekhanov, one of the founders of the first Marxist organization in Russia, also thinks that the most thorough and profound thinkers always tend to believe in monism—that is, to explain phenomena with a basic principle.66

2.4.2.2

Dualism

Dualism holds that the world of diversity has two philosophical theories that are independent of one another and exist and develop in parallel. For example, there are two kinds of reality: material (physical) and immaterial (spiritual).67 Dualism has been around since Ancient Greek philosophy. For example, Plato (429?–347 B.C.E.) held that the realm of Ideas and the sensible world remain the binary opposition of separate concepts.68 64

Yu Jun: The Concepts of Monism, Dualism and Pluralism Should Not be Abused. Social Science Research, 1981. 65 Wang Juefei: The Grand Dictionary of European History. (first half) Shanghai: Shanghai Lexicographic Publishing House, 2007: 983. 66 The Development of the Monist View of History. Author: Georgi Valentinovich Plekhanov. Translator: Bo Gu. SDX Sanlian Bookstore, 1961. 67 Yu Jun: The Concepts of Monism, Dualism and Pluralism Should Not be Abused. Social Science Research, 1981. 68 Sun Weihua and Jiang Bangqin: On the Dualism in Plato’s Theory of Ideas. Lanzhou Academic Journal, 2007 (9).

2.4 The Triad Theory

103

The philosophical sense of dualism theory originates from the French philosopher René Descartes. He proposed the theory on the dualism of mind and body in the seventeenth century—there are two realities in the world: the nature of the mind (that is, a thinking, nonextended thing) and that of the body (that is, an extended, nonthinking thing); the two are completely different in nature, and therefore it is possible for one to exist and develop without the other, and neither influences nor determines the other. In fact, the idea of dualism is deeply ingrained, such as the “good and evil” of Ancient Persian Manichaeism, the “idea and things” of Plato, and the “noumenon and phenomenon” of Kant. However, dualism can never solve the following basic problem: how two independent bodies exist in unity and do not differ from each other.69 For example, regarding Descartes’ dualism of mind and body, Martin Heidegger (1889–1976) believed that the absolute dichotomy of the mind and the world in terms of ontology is a false dichotomy.70

2.4.2.3

Triad Theory

During a long time thinking about the nature of the world, the author finds that there are some basic numbers in nature, yet three is probably the most special one. For example, there are only three types of organisms (plants, animals, and microorganisms) with only three types of genders—male, female and neutral (hermaphrodites); family is composed of three roles: the father, the mother, and the children; the transmission of life information comes in three steps: DNA → RNA → proteins; the genetic code is a triple code, from the simplest virus to the most complex human body; the primary energy carrier in life on earth is Adenosine triphosphate (ATP); there are only three states with the market: buying, selling, neither buying nor selling; the basic particles of the universe are divided into three categories: hadrons, leptons, and propagators. Based on the analysis and summary of a myriad of things and in a combination of Laozi’s idea (Tao begets one; one begets two; two begets three; three begets the myriad things), the author has proposed triad theory. The core belief is that three is the origin of life—that is, the development of all beings and things in the world originates in one (the only), passes two (the process), and only when it reaches three (a milestone terminal) and goes through the gestation of the milestone terminal can it burst out and development by leaps and bounds (Fig. 2.19). The triad theory carries three connotations. The first is the objective existence of a milestone terminal. For example, in repeated cross-breeding and true-breeding experiments with Mendel’s pea plants, the founder of modern genetics, the following

69

The Development of the Monist View of History. Author: Georgi Valentinovich Plekhanov. Translator: Bo Gu. SDX Sanlian Bookstore, 1961. 70 Zhao Guofeng: Mind-matter Dualism and its Phenomenological Criticism. Journal of Shandong Agriculture and Engineering University, 2018 (5).

104

2 The Bioeconomic Theory

Fig. 2.19 The diagram of the triad theory

generations consistently have a 3:1 ratio of traits.71 The second is breakthrough after gestation. For instance, at the origin of life, one base corresponds to one amino acid, and then two bases correspond to one amino acid. When three bases correspond to one amino acid, myriad things are produced. The third is that it reveals the highest stage of how the world works. Many scholars, for instance, use the concepts of triad theory in their studies of all things and beings in the world.

2.4.2.4

The Triad Theory Thoughts in Other Works

In the modern world, other scholars also have a soft spot for the number “three.” Britain’s Peter Watson is perhaps best known for his work in the history of ideas. In the preface of his encyclopedic masterpiece History of Thought and Invention, from Fire to Freud,72 Peter Watson listed many things related to three in the world history of ideas. Joachim of Fiore believed that there were three eras in the history of humankind: Fatherhood, Sonhood, and Holy Spirit. Giambattista Vico divided the world into three ages: the age of gods, the age of heroes, and the age of humans. Marquis de Condorcet believed that there were three prominent problems in history: inequality between countries, domestic inequality, and human imperfection.

71

Please refer to Econo-genology related content in Section Two for detailed principles. History of Thought and Invention, from Fire to Freud (Chinese Edition). Author: Peter Watson. Translator: Hu Cui’e. Nanjing: Yilin Press, 2018.

72

2.4 The Triad Theory

105

Auguste Comte constructed three stages of human development history: the theological stage, metaphysical stage, and the positive stage, representing the scientific way of thinking. Anthropologist Sir James Fraser distinguished the ages of magic, religion, and science. Economists also use the rule of trichotomy. For example, Karl Paul Polanyi identified three major economic eras—reciprocity, redistribution, and (market) exchange. Ernest Gellner argued that there have been three great phases in history—hunting/gathering, agrarian production, and industrial production. These fit with the three great classes of human activity: production, coercion, and cognition. The Chinese also have a special liking for three in their daily behavior: “partition of the world into three under the heavens,” “three kingdoms standing like the legs of a three-legged cooking pot”. A man should respect these three: his ruler, his teacher, and his parents. Three talents (heaven, earth, people), the Three Bonds referring to a hierarchy of service and obligation: the minister serves the king, the son serves the father, and the wife serves the husband. In Chinese idioms, there are also many allusions with three as the main feature, such as three promotions in one year, one hour and three quarters—meaning a short period of time, a single day apart appears to be three months past, to reflect on oneself three times a day, one day without you is as long as three years, and contemplate it three times a day. Chinese scholars widely agree with the view that “three is the origin of the world.” The recently published Trialism and IChing73 clearly proposes proving that all noumenons are derived from a triplet: three is the core structure of all things, and any level of existence is composed of three independent and interrelated sources. Trialism and IChing completely fit the author’s concept.

2.4.3 The Guiding Significance of the Triad Theory for China Studying the development of society and even science from the perspective of the triad theory will provide us with new ideas. For example, (1) according to the concept of the triad theory, there should be three forms of life that exist: the first is an individual visible to the naked eye, the second is a parallel universe or the soul, and the third is a state of life that cannot be observed yet; (2) according to the concept of the triad theory, there should be three universes. Apart from time and space, there must be a new physical form in the universe, which will open up new space for the exploration of physics; (3) according to the concept of the triad theory, there should be three levels of science: science is the first level and philosophy (science above science) is the second level, and there should be a third level, namely, science above philosophy. Then, what is science above philosophy? The author believes it is the Theory of Information Carrier of Life (this part will be discussed in the following content). The triad theory has also provided ideas for reform in China. According to it, the author holds that China’s economic development needs to go through three stages: it has been through two stages of development of coastal areas and areas 73

Wang Liqiang: Trialism and IChing. Nanjing: Southeastern University Press, 2014.

106

2 The Bioeconomic Theory

along the river since the reform and opening up; in the next step, China should enter the development stage of mountainside areas. After achieving tremendous success with the previous two, priorities should be given to mountainside areas in the next step by building mountainside economic belts and special economic zones, which will become the new growth pole and the third wave of China’s development. In the meantime, it also implies that the coordinated development of the BeijingTianjin-Hebei region, Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area), and mountainside special economic zones74 will provide the impetus for China’s great rejuvenation. Nevertheless, the great rejuvenation inevitably involves the Taiwan issue, Three Rural Issues (agriculture, rural areas, and farmers), and China’s democratization. Overall, applying the ideas of the triad theory will change the conventional scientific way of thinking and logic and, to an extent, promote and accelerate the economic, social, and scientific transformation and human progress in China.

2.5 Theory of Information Carrier of Life The theory of information carrier of life is a conclusion the author has reached while pondering on the questions: where did humans come from, and what will the future of humankind be like? The core idea is that life is an information carrier designed by “the wise man,” i.e., the nature of life is information. To protect the safety of the information, the wise man designed different forms of life and stored the information using them as the information carriers.

2.5.1 What is Life? Scientists tell us that the universe began approximately 13.7 billion years ago. The solar system began forming approximately 4.6 billion years ago. Life first emerged approximately 3.8 billion years ago. Humans appeared 200,000 years ago—but what on earth is life? Humans have been studying, contemplating, and pursuing this most basic question since ancient times. From the perspective of humans, for example, an organism is a carrier of life, and life is shown through the body: the existence of such life phenomena as heartbeats, respiration, metabolism. Some people believe that life is a state of continuity, the continuation of the life of both the individual and 74

Mountainside special economic zones are the growth pole for future economic development the author has put forward based on the Triad Theory. China’s proposal to set the Wuling Mountain as an Economic Collaboration Region in 2009 (2009 Document No.3 from the State Council) is preliminary practice, but time isn’t yet ripe. The author believes more efforts remain necessary to transform it into a new special economic zone, then scale up the model to form China’s mountainside growth poles, to form the governance model of wave-style advancement from coastal areas to inlands to mountains in western China.

2.5 Theory of Information Carrier of Life

107

the species; others consider life as the superior form of matter’s movement, which has arisen from nonliving matter, the product of the long-term evolution of matter in nature. Natural science maintains the nature of life in three ways: metabolism, reproduction, reproductive differentiation, and additivity. During the early period of human society, understanding of life and questions about the origin of humans were mainly answered by religion, theology, or myths. For instance, it is generally believed that Buddha is the most direct and effective way for the Buddha to understand life itself and the material origin of the universe; theology believes God creates life. Even in an era of highly developed science and technology, great scientists worldwide have not stopped their pursuits and explorations of what life is and the meaning of life. Albert Einstein writes in The World as I see it: “How strange is the lot of us mortals! Each of us is here for a brief sojourn; For what purpose he knows not, although he sometimes thinks he senses it…; The most beautiful experience we can have is the mysterious…; It was the experience of mystery—even if mixed with fear—that engendered religion.” With improved levels of science and technology as well as humans’ self-cognition, in particular, the emergence of the theory of evolution and cellular biology, humans’ cognition of life, and reflection on the irreducible complexity of the cell and multicell coordination began to enter new stages, hence the rise of the theory of intelligent design75 and the theory of internalist teleology76 in response to the proper time and conditions. The theory of intelligent design claims that the complexity of the world is the product of a powerful, intelligent designer (or God), whereas internalist teleology believes that nature has an inherent and self-born “penchant” that tends to increase in complexity; nevertheless, the birth of intelligent life has had a significant impact on the two notions, mainly because neither has gone to a deeper aspect. Friedrich Engels was the first to understand life at the protein level: Life is the way of existence of protein bodies. The basic factor of this way of existence is that it continuously carries out metabolism with the surrounding external nature. As soon as metabolism stops, life stops, and the result is the decomposition of proteins.77 On the basis of Friedrich Engels, the Soviet philosophical community further extended the definition of life, proposing that life is the highest natural form of material movement; it has the self-renewal, self-regulation, and self-recovery characteristics of various levels of open systems, and the material basis of these open systems is proteins, nucleic acids, and organic phosphorus compounds.78

75

Huang Yan: The Emergence of the Theory of Intelligent Design and the Philosophical Reflection. Studies in Dialectics of Nature, 2009, 25 (9). 76 Tian Hui: Aristotle’s Theory of Internal Teleology and Its Transcendence. Journal of Central China Normal University, 2011, 18 (4). 77 Friedrich Engels: Dialectics of Nature. Beijing: The People’s Publishing House, 1971. 78 Ren Xiaoming: Differentiation Analysis of Nature of Life. Nankai [University] Journal (Philosophy and Social Sciences Edition), 2003, (2).

108

2 The Bioeconomic Theory

Among the monographs on life, Nobel Prize winner Erwin Schrödinger’s79 What is life is most commendable.80 The book originated from a series of lectures by Schrödinger at Trinity College Berlin in 1943 aimed at exploring the material basis of life. Erwin Schrödinger put forward a series of genius thoughts and bold conjectures, including physics and chemistry, which can explain the phenomenon of life; the gene is an aperiodic crystal or solid; the chromosome is the genetic codebook life feeds on negative entropy. These have triggered many people’s interest in biological research. J. Craig Venter, a scientific maniac who successfully created the first synthetic life form twice in the world, said that it was under the inspiration of the book that he was fascinated by the exploration and research of life forms. In Life at the Speed of Light,81 Craig Venter wrote: We have advanced from Schrödinger’s “aperiodic crystal” to an understanding of the genetic code to the proof, through the construction of a synthetic chromosome and hence a synthetic cell, that DNA is the software of life. Coincidentally, Professor Wang Liming of China also published a book titled What is Life82 in 2018, a work in homage to Erwin Schrödinger. Professor Wang Liming made a comprehensive interpretation of the origin and evolution of life on Earth in terms of energy, self-replication, cell membrane, division of labor, sensation, learning, and memory, socialization, self-awareness, free will, etc., and revealed the ten elements that make up life on earth. Among the many events that promoted life science research, the molecular model of the DNA double helix structure published in the British Nature magazine on April 25th, 1953, could be the most shining milestone. The discovery of the double-helix structure of DNA has created a new era in the life sciences and brought people to the realization that nucleic acids are the founder of the club we call life.83 In DNA: The Secret of Life in 2007, James Dewey Watson put forward the notion of the double helix: the secret of life.84 In Scientific America’s top ten breakthroughs in 2019, DNA storage was included. The view that all the world’s data could be stored in DNA weighing less than one kilogram also confirms the hypothesis that life is information.

79

Erwin Schrödinger (12 August 1887–4 January 1961) was an Austrian physicist. He was one of the founding fathers of quantum mechanics, and won the Nobel Prize in Physics in 1933 jointly with Paul Adrien Maurice Dirac. 80 What is life (Chinese Edition). Author: Erwin Schrödinger. Translator: Luo Lai’ou and Luo Liaofu. Changsha: Hunan Science and Technology Press, 2005. 81 Life at the Speed of Light (Chinese Edition). Author: J. Craig Venter. Translator: Jia Yongmin. Hangzhou: Zhejiang People’s Publishing House, 2016. 82 Wang Liming: What is Life? Beijing: Posts & Telecom Press, 2018. 83 Structure and Function of Virus Proteins and of Viral Nucleic Acid (Chinese Edition). Author: Heinz Fraenkel-Conrat. Translator: Zhang Youshang. Shanghai: Shanghai Science and Technology Press, 1964: 9. 84 DNA: The Secret of Life (Chinese Edition). Author: James Dewey Watson. Translator: Chen Yayun. Shanghai: Shanghai People’s Press, 2011.

2.5 Theory of Information Carrier of Life

109

2.5.2 Life is the Information Carrier Designed by the Wise Man Throughout the understanding of life by many scholars, we find that it is mainly concentrated in two aspects: progression and evolution—that is, understanding life from a macroscopic dynamic perspective; and DNA and protein, i.e., understanding life from a microscopic static perspective. However, the two are not well integrated: how does life change from static to dynamic, from nucleic acid changes to groups? In the years of research, observation, and thinking, the author gradually formed an understanding of life: life is an information carrier designed by the “wise man.” This is the core idea of the theory of information carrier of life. To understand the theory, three points must be built: (1) the origin of life is information, and life is just the carrier of the information; (2) the wise man and life create the information; and (3) the purpose of the wise man’s design is unique. The first point is easy to understand: genes are the origin of life, but they only store the information contained in life, and life exists to guarantee the information. Plants, animals, and microorganisms are the three states of existence of the information, and there are tens of thousands of types from the simplest virus to the most complex human body, just like from the simplest USB flash disk to the most complex mass data storage center, all being the carriers storing human data information. On the other hand, there is the view in which people in near-death experiences believe the soul exists in the body and that the body is the carrier of the soul.85 The second point is more abstract and difficult to understand. Although scientists are also trying to pursue the “wise man,” one might fall into the trap of mysticism if not careful enough. Some scientists think that humans may be just a few lines of code in the “man”-made matrix and put forward the idea of creating a virtual universe86 ; Stephen William Hawking also believed that people could define God as the incarnation of natural laws.87 However, the wise man proposed by the author is essentially different from the wise man that other scholars propose. The wise man proposed by the author can be understood as a more intelligent agent than humans on Earth. It may coexist with us on Earth, or it may be an extraterrestrial life that needs to be explored. The third point is the uniqueness of the wise man’s design purpose. The man did not design the information carrier for other purposes. The core goal is to ensure the complete transmission of information. Once there is a problem in the transmission, the wise man will create a purpose mechanism to cause its destruction to avoid causing confusion or interference. In other words, the theory of information carrier of life can be summarized in one sentence: life is the information carrier designed by the “wise man.” However, to 85

The Déjà vu Enigma (Chinese Edition). Authors: Marie D. Jones and Larry Flaxman. Translator: Zhou Yan. Kunming: Yunnan People’s Press, 2012. 86 A Big Bang in a Little Room: The Quest to Create New Universes (Chinese Edition). Author: Zeeya Merali. Translator: Wang Jingpeng. Scientific American, 2019 (1). 87 Brief Answers to the Big Questions (Chinese Edition). Author: Stephen William Hawking. Translator: Wu Zhongchao. Changsha: Hunan Science and Technology Press, 2019.

110

2 The Bioeconomic Theory

Fig. 2.20 Diagram of the theory of information carrier of life

protect the safety and reliability of the information, the wise man designed several forms of storage. He designed the information needed into multiple forms, including animals, plants, microorganisms, and so on, so that it can exist on Earth through the existence and continuation of the life of animals, plants, microorganisms, etc.; humans are complete information carriers (Fig. 2.20).

2.5.3 The Significance of the Theory of Information Carrier of Life The introduction of the theory of information carrier of life can provide a new concept for health management and a new way of interpretation for natural phenomena of the existence of some organisms beyond modern sciences’.

2.5.3.1

To Provide a New Concept for Health Management

Health management is a process of comprehensive management of the health risk factors for individuals or groups. It mobilizes the enthusiasm of individuals and groups and effectively uses limited resources to achieve maximum health effects. For understanding and promoting health management, there has been a lack of good

2.5 Theory of Information Carrier of Life

111

solutions both at home and abroad. The introduction of the theory of information carrier of life will provide a new concept for health management. According to the theory, all kinds of life are information carriers, and information is the foundation of life. This includes genetic and protein information at the microscopic level, mediumscopic information of tissues and organs, and at the macroscopic level, human health information and even information of nature. Given that it is information, we could refer to health management concepts in the information field and manage it according to information management to achieve comprehensive management of health and wellness. This is the core of the author’s introduction of the Good Health Practice (GHP), which will be discussed in detail in the following chapters.

2.5.3.2

To Provide a New Way of Thinking in Addressing Problems in the Field of Life Sciences

At present, there are many phenomena that existing theories cannot explain, such as the cause of AIDS and tumors, the use of the human brain, and the presence of introns, which are always obstacles to the theory of evolution. With the author’s theory, however, these phenomena can be fully explained. Based on the author’s theory, all living organisms on Earth are information carriers—complete and full information, designed and stored on living organisms on the planet by the wise man. To ensure that the information can be passed on, the wise man has designed the information transmission mechanism—that is, the completion of the information transmission through the self-replication of life. To ensure the correct transmission of full information, the wise man designed a set of security guarantee mechanisms to achieve correct replication and transmission of life information; in any occasion of a problem or uncontrollable information, the wise man would have it destroyed. In addition, to ensure that certain essential information cannot be changed, the wise man has also set a partial utilization mechanism of life information to guarantee the security and stability of some key information by means that the information cannot be fully utilized.

What Caused AIDS? AIDS is an extremely harmful infectious disease. It is an immune deficiency disease caused by infection with human immunodeficiency virus (HIV). Current research believes that AIDS originated in Africa and was brought into the United States by immigrants. On June 5th, 1981, the US Centers for Disease Control and Prevention published a case report of five AIDS patients in the Morbidity and Mortality Weekly Report (MMWR), which was the first official record of AIDS in the world. In 1982, this disease was named “AIDS.” Soon after, AIDS quickly spread to all continents

112

2 The Bioeconomic Theory

and claimed 25 million lives worldwide, with more deaths than in World War I.88 Therefore, AIDS is also known as “super cancer” and “Century Killer.” The author believes that there is a fundamental reason for this. According to the theory of information carrier of life, HIV is one of the guarantees to ensure the transmission of the original information of the wise man. Because the human body is a full information carrier designed by wise man and human beings are the most important and most comprehensive information carriers that need protection, the wise man designed men and women to enable them to realize self-replication and transmission of information through mating and reproduction in the course of their lives; homosexuality and drug use satisfy the needs of the human body (pleasure, etc.), but they cannot achieve the purpose of reproducing the offspring and thus cannot achieve the true purpose of self-replication and transmission of the information stored by the wise man. Therefore, the wise man designed HIV to correct such improper behaviors to ensure the self-replication of information to achieve the transmission and persistence of correct information.

What Caused Tumors? Malignant tumors are one of the guarantees for the accurate transmission of the original information of the wise man. As the human body is the full information carrier designed by the wise man, he needs to guarantee the self-replication and transmission of human body information and the accuracy of transmission. However, throughout the long process of life, the influence of various environmental factors would cause genetic mutations89 (i.e., changes in DNA sequences, see Fig. 2.21), and if the mutant genes continue to be passed on, the original information will be beyond all recognition after several generations. To this end, to ensure the accuracy of the original information, the wise man has designed tumors to terminate the transmission of the wrong information. In other words, tumors are a self-destroying unit designed by the wise man to ensure accurate transmission of the original information. That is, tumors are one of the guarantees for the accurate transmission of the original information of the wise man.

Why the Theory of Evolution Cannot Explain Why Humans Use Less Than 10% of the Brain The basic points of Darwin’s theory of evolution are survival of the fittest, selection of the superior and elimination of the inferior, and use and disuse inheritance. There are two phenomena in the human body that contradict it. For example, the human 88

Chen Liangcong: A scientific experiment imaged for the first time the birth of HIV particles in a living cell. http://tech.sina.com.cn/d/2008-05-27/15422220346.shtml [2019-11-18]. 89 Diplas B H, He X J, Brosnan-Cashman J A, et al. The genemic landscape of TERT promoter wildtype-IDH wildtype glioblastoma. Nature Communications, 2018, 9: 2087.

2.5 Theory of Information Carrier of Life

113

Fig. 2.21 The mutational landscape of somatic coding alterations in TERTpWT -IDHWT GBM

brain has different functions in different areas90 (Fig. 2.22), but the proportion of brain development in a person’s life does not exceed 10%.91 According to Darwin’s evolutionary principle of “use and retreat,” the human brain should gradually shrink, but this is not the case. This is because the wise man only allows the use of 10% of the information. A recent online article claims that the main reason the human brain is not fully developed is that some genes are locked, which prevents the human brain from being 100% developed and utilized.92 Neuroscience research tells us that from the basic unit of neural signals, the generation of action potentials, radio waves, and pulses, to the encoding of neural signals, to the transmission of information, every process is also the transmission of information. At the neuron level, scientists have begun to understand the basic coding of neural information processing to store information and function networks to process certain neural information (Fig. 2.23), but a clearer understanding of the brain still takes time. According to the author’s triad theory, there must be a third set of information systems for human information storage.

90

Bear M F, Conners B W, Paradiso M A. Neuroscience: Exploring the Brain. London: Lippincott Williams & Wilkins, 2006: 220. 91 UNESCO International Education Development Committee. Learning to be: The World of Education Today, and Tomorrow. Beijing: Education Science Press, 1996. 92 Humans did not belong to the solar system? Scientists found that 80% of genes are locked. http:// k.sina.com.cn/article_3019808433_b3fe9eb100101drup.html?from=science [2019-11-18].

114

2 The Bioeconomic Theory

Fig. 2.22 The human brain has different functions in different areas

Fig. 2.23 The complex neural network

Why Evolutionary Theory Cannot Explain the Presence of Introns Anyone who has studied biology may know exons and introns. An exon expression sequence refers to a sequence that will be retained after splicing during gene expression and can be expressed as a protein during protein biosynthesis. Introns are intervening sequences in the DNA of eukaryotic cells. These sequences are transcribed in precursor RNAs, removed by splicing, and ultimately do not exist in mature RNA molecules (Fig. 2.24). The proportion of exons is much smaller than that of introns in the DNA sequence. What has caused this phenomenon? According to the theory of evolution, during long-term progression and evolution, introns should gradually disappear. However, in the author’s opinion, these introns are also information stored by the wise man and cannot be used.

2.5 Theory of Information Carrier of Life

115

Fig. 2.24 Exons and introns in expression93

This is just like the bank’s deposit reserve. We all know that banks have no money, and the money in banks comes from enterprises, individuals, or other groups and institutions. In principle, banks can lend them all, but in fact, banks must set aside a certain percentage as reserves to ensure safety. Banks cannot move this proportion of cash. This is similar to the arrangement of introns and exons. In the meantime, the theory of information carrier of life has also provided a theoretical foundation for our understanding of other doctrines. For example, in the book Biocentrism: How Life and Consciousness are the Keys to Understanding the True Nature of the Universe,94 Robert Lanza et al. point out that the structure, laws, powers, and constants of the universe all seem to be finely tuned by life. This shows that wisdom existed earlier than matter. In addition, Robert Lanza et al. also proposed the view that “consciousness does not die.” The theory of information carrier of life can explain this. In addition, the theory of information carrier of life can also provide new threads of thought for future scientific and technological development. In Life at the Speed of Light, Craig Venter believes that as digitalized information, DNA can not only be continuously accumulated in computer databases, but it can also be transmitted in the form of electromagnetic waves at or near the speed of light through biological transmitters, thereby recreating proteins, viruses, and living cells in a remote place. 93

Zhu Yuxian, Li Yi, Guo Hongwei et al.: Modern Molecular Biology (Fourth Edition). Beijing: Higher Education Press (HEP), 2013. 94 Biocentrism: How Life and Consciousness are the Keys to Understanding the True Nature of the Universe (Chinese Edition). Authors: Robert Lanza and Bob Berman. Translator: Zhu Ziwen. Chongqing: Chongqing Publishing Group, 2011.

116

2 The Bioeconomic Theory

The theory of information carrier of life has provided a new perspective in our understanding of life.

2.6 The Life Capital Theory Life capital theory can be summarized in three sentences: capital controls the world; life determines capital; and genes dominate life. The author once referred to the theory as the “cosmic-centric law.”

2.6.1 Capital and Capitalism 2.6.1.1

What is Capital?

Capital is a basic concept in political economics or economics. In Western economic theories, capital refers to a part of the input, the value that can bring surplus value. According to the views of Marxist political economics, capital reflects the exploitative relationship between capitalists and workers. From the perspective of macroeconomics, capital generally refers to all the tangible, intangible, financial, and human capital invested in the production process. From the perspective of business accounting theory, capital refers to the owner’s funds into production and operation to produce benefits. From the perspective of business management, capital is a basic element of business operation activities and a necessary condition for an enterprise’s establishment, survival, and development. All the above statements about capital are based on their respective fields and disciplines. In summary, capital is mainly divided into three aspects: the first is institutional or social production relation capital, and its promotion or appreciation is realized through social, political, and ideological changes; the second is human capital; and the third is physical capital, which falls into two types: natural endowment and human creation. On the other hand, capital is an entirely different concept from assets and funds. The means of production and money are not capital themselves, and they only become capital when capitalists occupy them as a means of exploitation; from this point of view, capital is the material expression of the exploitative relations between capitalists and workers. Assets are the economic resources used by an enterprise to engage in operation and business activities and bring future economic benefits to investors. Funds are the source of money for enterprises to purchase assets required for production and operation activities. In a broader sense, funds can be considered the same as assets, but they could be narrowed down to refer to monetary funds or, in particular, to operating funds.

2.6 The Life Capital Theory

117

From the author’s point of view, capital is the foundation of assets; without assets, there will be no capital; funds are the monetary expression of capital. The three form an organic whole and are eventually realized through production.

2.6.1.2

What is Capitalism?

Although we often talk about capitalism, thus far, there has been no recognized definition of the concept formed in the world. The Century Dictionary, published in 1909, defines it as countries with capital or assets, the occupation of capital. Contemporary time is defined as an economic system. For example, in the Oxford English Dictionary published in 1987, it is defined as the state of occupying capital and the system that supports the presence of capitalists. Various economists also have different definitions of capitalism. For instance, Friedrich August Hayek’s understanding of capitalism is evidently different from that of Adam Smith. The former stresses the self-organization property of capitalism in the economy, the model of coordinating resources based on a free price mechanism; the latter focuses on the value of the individual pursuit of one’s own interests. Nevertheless, overall, most of them agree with the following point of view. Capitalism refers to a system in economics or economic sociology, under which the majority of assets are privately owned, and benefits are created by means of employment or labor; under the system, commodities and services are circulated freely through currency; investment decisions are made by individuals; production and sales are mainly controlled by businesses and the industry and commerce, which compete against each other and take actions based on their respective interests. Therefore, capitalism is also referred to as a free market economy or free enterprise economy. From the perspective of historical development, capitalism has grown out of the feudal society. The emergence of capitalism marks the second big leap in the economic history of the human race following the first one (which occurred in Mesopotamia approximately 10,000 years ago, when settled agriculture started human civilization). It first appeared in England, marked by the industrial revolution in the second half of the seventeenth century. It was both the engine of innovation and progress and the source of crises, exploitation, and alienation,95 which led to growing conflicts between the socialized nature of production and the private ownership of the means of production, hence increasing class conflict between the proletariat and the bourgeoisie. These are irreconcilable contradictions in capitalism. As time went on, capitalism permeated into almost all fields of the economy and became a prevalent and dominant economic form.

95

Capitalism: A Short History (Chinese Edition). Author: Jürgen Kocka. Translator: Xu Qingyi. Shanghai: Wenhui Publishing House, 2017.

118

2.6.1.3

2 The Bioeconomic Theory

A Brief Overview of the Representative Works

Two books triggered a worldwide sensation during the study of capital: Das Kapital by Karl Heinrich Marx and Capital in the Twenty-First Century96 by the French economist Thomas Piketty. The New Capital97 by prominent Chinese economist Xiang Songzuo has also brought us a fresh perspective. The Das Kapital published in 1867 is the most profound and substantial work of Karl Marx. The book originated in the global economic crisis of 1857, which caught Karl Marx’s strong attention. Through his studies, Karl Marx held that with the vigorous development of the capitalist mode of production in European society, the intrinsic contradictions of a capitalist society became more apparently exposed. In an effort to further reveal its laws of development, Karl Marx discovered the basic contradiction of the capitalist mode of production and the historical trend of its development with the relations of production as the research object and the surplus value theory as the basis. He scientifically proved a truth: the capitalist system is only a unique historical system that is suitable for a certain stage of development in the productive forces and will surely disappear along with further development of socialization of production; he also pointed out the rationality of a socialist society and the inevitability of the advent of Communist society. Looking back, over 100 years since its birth, Das Kapital’s basic theories remain the valuable spiritual wealth of humankind today. In particular, it has revealed the laws of social development—that is, from primitive society, slave society, feudal society, capitalist society, socialist society to communist society—provided a theoretical basis for the realization of communism and is therefore honored as the “Bible of the working class.”98 The Capital in the Twenty-First Century by Thomas Piketty, initially published in French and later translated in English in 2014, is a significant work that pays homage to Karl Marx’s monumental Das Kapital. In the book, Thomas Piketty used data many researchers have carefully collected from more than 20 countries to conduct a detailed study of wage levels over the past 300 years and listed a large number of income distribution data in multiple countries. The results confirm that within 100 years, the wealth of people with capital has increased 127 times, whereas the overall economic scale is only 8 times larger than 100 years ago. For this reason, Thomas Piketty believes that unrestricted capitalism has led to an increase in wealth inequality. The free market economy cannot fully solve the problem of wealth inequality. The existing system will only make the rich richer and the poor poorer because currently personal wealth is determined not by labor but by inherited wealth (i.e., capital). To this end, Thomas Piketty believes that if there is no significant policy adjustment and if the trend today continues, the twenty-first century is highly likely to return to the

96

Capital in the Twenty-First Century (Chinese Edition). Author: Thomas Piketty. Translator: Ba Shusong. Beijing: Citic Publishing House. 97 Xiang Songzuo: New Capital. Beijing: Citic Publishing House, 2014. 98 Xi Jinping: Speech to mark the 200th anniversary of Marx’s birth. people.cn, 7 June 2018.

2.6 The Life Capital Theory

119

nineteenth century, in which the gap between the rich and the poor will increase and the voice of capital will become louder. The New Capital is a landmark work by the famous Chinese economist Xiang Songzuo, which comprehensively discusses global financial capitalism and has gained influence worldwide. He thinks that the economic theories in the popular traditional textbooks are still the ones in the era of industrial capitalism, holding that industrial capital is dominant and determines the economic system, price system, and distribution system, and the real economy dominates the virtual economy. However, in the current era of financial capitalism, all of the above are reversed: the virtual economy dominates the real economy; monetary finance determines the price system and distribution system of the real economy; the prices of commodities are completely financialized and are disconnected from the supply and demand of the real economy; enterprises no longer pursue profit maximization but rather market value maximization. Suppose we do not stand at the new perspective and new heights of global financial capitalism. In that case, we cannot understand the fundamental problems facing the human economic system today, nor can we find the correct strategy for reforming global economic governance and achieving a lasting recovery in the global economy.

2.6.2 Socialist Practice Both socialism and capitalism are the social and historical products of human progress. From the perspective of academic development history, the root cause of dividing socialism and capitalism comes from Marxism. On the basis of studying the general laws of the development of human society, Karl Marx proposed the developmental stages of human society. Socialist society is the primary and intermediate stage of communist society. From a historical perspective, the development of world socialism can be roughly divided into four stages.99 The first stage is the enlightenment stage, which is mainly the stage of utopian socialism. At this stage, many scholars exposed the evils of capitalism. Nevertheless, the criticism of capitalism lacked an in-depth systematic theory. It did not revealed the real underlying problems of capitalism and the inherent contradiction of its inevitable demise, nor did it find ways, paths, theories, and class power to replace capitalism and realize socialism. The second stage: the stage of scientific socialism, which mainly refers to the Marx and Engels stage. In this stage, after in-depth research, they successfully found major theoretical and practical problems that utopian socialists failed to solve and realized the leap of socialism from utopia to science. The third stage is the practical stage, during which the establishment of the Soviet Republic is the beginning. Due to the great success of the Soviet Republic and the 99

Li Jingzhi et al.: The Course of Socialist Development. Shenyang: Liaoning People’s Press, 2001.

120

2 The Bioeconomic Theory

strong guidance and intervention, Eastern Europe and China have begun to practice socialism. Socialism has practiced development from one country to many countries. The movement of socialism advances in triumph. The fourth stage is a tortuous development stage. The collapse of socialism in Eastern Europe heralded the beginning of a low tide in socialist practice, marked by the disintegration of the Soviet Republic, and Laos, Vietnam, Cuba, North Korea, and China became the only remaining socialist countries in the world. However, by actively exploring the path of socialist construction, China has gradually improved its political system and has achieved tremendous economic and social development. It has promoted the global influence of the socialist cause and created greater glories for world socialism.

2.6.3 Communist Outlook Communism is the most beautiful and ideal society of humankind. According to Friedrich Engels’ Principles of Communism, the most fundamental characteristics of communist society are manifested by three points. First, there will be material abundance, which would enable the free distribution of articles of consumption. Second, the social relationship is highly harmonious, and people’s spiritual realm is greatly improved. Third, it would give each individual free and comprehensive development, and humankind would achieve what Karl Marx referred to as a transition from the “realm of necessity” to the “realm of freedom.” From the perspective of the laws that underlie the evolution of human society, socialism is only the primary and intermediate stage of communism, and the highest stage of humanity is a communist society. In terms of the realization process, its final realization is still a distant and long process; the overall realization of communist society will not happen overnight, but it will certainly be realized. This is the original intention of every Communist Party member and the final destination of human society.

2.6.4 The Life Capital: The Brand-New Theory of Capital Proposed by the Author 2.6.4.1

The Life Capital

In the studies of the development of capitalism, the works of Marx, Thomas Piketty, and Xiang Zuosong have to a certain extent revealed the laws of social and economic

2.6 The Life Capital Theory

121

development; in particular, they have had an in-depth discussion of the current development trend of capitalism. However, due to the limits of their own knowledge structure, their analyses remain constrained in the realm of traditional economic analysis, which falls into the category of traditional economics. At a stage of rapid advances in modern sciences, especially life sciences and medicine, our understanding of capital should actively involve elements of these fields by trying to apply the ideas and approaches of life sciences and medicine in the production, distribution, and value of capital to reveal the relationship between capital and life. This is what the life capital put forward by the author is about.

2.6.4.2

The Core Content of the Life Capital Theory

The life capital theory, a theory of capital in a completely new sense, is formed by studying the formation, effect, and determinants of capital with the ideas and approaches of life sciences and medicine. The following conclusions are reached and summarized in three sentences: capital controls the world; life determines capital; and genes dominate life. The specific explanation is that the world is controlled by capital, but no factor other than humans can determine capital, so humans are the only arbiter of capital: life determines the source of capital; life determines the purposes of capital; and life determines the value of capital.

Capital Controls the World The core concept is that when humankind has grown from a feudal society to a capitalist society, that capital controls the world has become the basic reality of the present society. Generally, in a capitalist society, the whole society is under the control of capital, including society, family, and individuals. This is the underlying and unchangeable nature of capitalist society.

Life Determines Capital The core concept of the notion reflects that the relationship between capital and life is that life determines capital rather than capital controlling life. Fundamentally speaking, the current phenomenon that capital controlling life is completely incompatible with nature’s basic logic and laws. That life determines capital has three connotations. First, capital is created by life—that is, life determines the source of capital. Second, the purposes or the use of capital can only be determined by life— that is, life determines the purposes of capital. Third, only life can determine the value of capital, which specifically includes three aspects: (1) the value of capital varies with the carrier; (2) the value of capital varies with the use; (3) the value of capital exists because of life (life is the 1, while capital is the 0 behind it; Without the 1, all get back to 0).

122

2 The Bioeconomic Theory

In other words, the presence of capital is related to humans, and if the carrier of capital (i.e., humans) understands the nature of capital and uses it to serve people, then humans will enter a socialist society. On the other hand, if active efforts are made to attract capital to serve society and the public, the goal of capital serving a socialist society can also be reached. In combination with the abovementioned socialist practice, we can see that the form of society characterized by life-determining capital is socialist society.

Genes Dominate Life This is the ultimate assessment the author has on global and future development from the perspective of life sciences. The reason is that from the perspective of genes, every life behavior on Earth originates from genes, and only genes are the real dominators of the world, while humans and all other organisms are merely carriers for genetic transmission. Since genes control all life activities of beings on Earth, it is the same as humans in the world. People who have studied biology may know single nucleotide polymorphisms (SNPs) caused by mutations of a single nucleotide in the genome, including conversion, transversion, deletion, and insertion (Fig. 2.25). Due to the large number of genetic markers formed by SNPs and abundant polymorphisms, they have become third-generation genetic markers. Because of many phenotypic differences in the human body and susceptibility to drugs or diseases may be related to SNPs, after the Human Genome Project, the International Hapmap Project100 was launched internationally. The results of the Human Genome Project show that although the human body has 20,000–25,000 genes, from the perspective of SNPs, the difference between people is only 0.1–0.3%. Imagine that since there is only a 0.1–0.3% difference between people in the nucleotides that make up genes, it means that from the genetic level, i.e., the fundamental unit of human life, the differences between individuals can basically be neglected and that the entire world should be one in which everyone is equal. If people in the whole society can be aware of this, then society will be in a relatively equal state because wealth and status levels are no longer important compared with life. With such small differences between individuals at the genetic level, individuals should be treated with the same equality and respect. The differences in status based on power and wealth should also be eliminated. In fact, this is equivalent to human beings entering the communist social form in terms of ideology, which is also the true meaning of genes dominating life. Combining the aforementioned communist outlook, the following conclusion can be reached: the social form characterized by genes dominating life will bring us to the realization that at the level of genes, the differences between individuals are almost negligible. This means that individuals should be treated with the same equality and 100

Manolio T A, Brooks L D, Collins F S. A HapMap harvest of insights into the genetics of common disease. J Clin Invest, 2008, 118.

2.7 Theory of Biological Reconstruction of Assets

123

Fig. 2.25 Tag SNPs can define common haplotypes

respect, and the differences in status based on power and wealth should be eliminated. Such a form of society is often known as communist society.

2.6.5 The Significance of the Life Capital Theory The author’s idea of the new theory (Fig. 2.26) has provided a new perspective in understanding the world from the height of historical and anthropological development. The life sciences have provided the basis for realizing communism and opened up a new direction for the world’s future. From the perspective of social development, the life capital theory has provided a solid theoretical basis for social reforms. The life capital theory tells us it is possible to realize the goal of life by determining capital through capital controlling the world to prove the truth that genes dominate life finally. In other words, by adopting a market economic system, we can concentrate capital on people with ideas of socialism and communism and promote social progress and reforms to gradually guide the realization of a communist society.

2.7 Theory of Biological Reconstruction of Assets The theory of biological reconstruction of assets is a new theory of reconstruction of assets that the author has proposed by applying the ideas and approaches of life sciences and medicine. One can expect a win–win and multiwin situation using this theory to guide enterprises and asset restructuring.

124

2 The Bioeconomic Theory

Fig. 2.26 The life capital theory

2.7.1 Basic Concepts 2.7.1.1

The Concepts of Restructuring

Restructuring refers to combination or formation, such as the restructuring of assets. It is a market economic behavior in which certain assets or property rights are reasonably changed in a certain way to form a new form of business organization, industry structure, and economic structure to realize optimized configuration of economic resources in order to obtain higher efficiency or adapt to market changes. In terms of the form, restructuring can be divided into interenterprise restructuring and intraenterprise restructuring. The former includes mergers, acquisition, bankruptcy and liquidation, corporate separation, and leveraged buyout. The latter has organizational structure re-engineering, management model restructuring, and debt restructuring. In biology, it is defined as the reorganization of gene arrangement or nucleic acid sequences caused by various events of organisms (including chromosome separation, exchange, translocation, conjugation, gene exchange, transformation, transduction, etc.) and the process of change. Restructuring in genetic engineering refers to the recombination or modification of nucleic acid sequences by artificial means, that is, restructuring refers to the combination of genes that are not present in the parental generation due to independent distribution or exchange; DNA molecules from different sources are spliced to form a molecule under the action of enzymes.

2.7.1.2

Economic (Asset) Restructuring

According to the author’s understanding, economic (asset) restructuring refers to reorganizing, adjusting, and allocating the distribution of corporate assets or reconfiguring the rights on enterprise assets carried out by the owners, controllers, and

2.7 Theory of Biological Reconstruction of Assets

125

external economic entities of the assets. Taking asset restructuring as an example, socalled asset restructuring101 integrates the originally invalid or inefficiently allocated asset stocks for reuse through corporate acquisitions, mergers, spinoffs, consolidations, purchases, and listing of shares to make them more effective in production or operation. In the field of economics, restructuring is an inevitable phenomenon and a universal law in the development of a market economy. In the process of economic development, enterprises often form various stock assets through investment to develop production and operations. However, corporate investment may not bring the expected benefits due to differences in cognition or the impact of changes in the internal and external environment, making the stock assets formed by the investment ineffective or inefficiently allocated, resulting in the inability to revitalize the stock assets even with further investment. Under these conditions, inefficiently operated assets will be reorganized and driven by profit or the pursuit of opportunity returns to achieve optimal allocation. In fact, asset restructuring is no longer a novelty. The view that big fish eat small fish revealed by Karl Marx’s claims concerning the concentration of capital reflects this kind of asset restructuring to a great extent.

2.7.1.3

The Types of Economic (Asset) Restructuring

In fact, the entire world economy is in a process of restructuring. There is abundant literature relating to economic (asset) restructuring. Research on restructuring includes resource allocation theory, property rights restructuring theory, flow transformation theory, institutional innovation theory,102 etc. Motives for restructuring involve many theories such as economies of scale theory, transaction cost theory, business diversification strategy and enterprise development theory. Reorganization methods include acquisition, merger, combination, division, custody, leasing, asset replacement, bankruptcy, tender offer, equity transfer, conversion of public companies into private companies, and managerial merger and employee stock ownership. According to the classification of natural sciences, however, the types of restructuring can be summarized into three categories: mathematical and physical restructuring, chemical restructuring, and biological recombination.

Mathematical and Physical Restructuring Mathematical restructuring is just a simple increase or decrease in numbers, such as merging several companies into one group or splitting a single company into several 101

Wei Ling: Thoughts on Several Theoretical Questions about Asset Restructuring. Tangdu Journal, 2000, 16 (1). 102 Huang Li: Summary of the Theoretical Research on Asset Restructuring. Journal of the Graduate School of the Chinese Academy of Social Sciences, 2002, (SI).

126

2 The Bioeconomic Theory

companies. A typical example is the overall restructuring and separation model of a listed company, or the “one split into two” restructuring model. The model of “one split into two” refers to the separation of the professional production management system of the restructured enterprise from the other departments of the same enterprise. After the restructuring of the original enterprise, it would be divided into two or more legal persons with the demise of the original legal person. However, the new legal person still belongs to the original owner model. Fundamentally speaking, this restructuring model can be understood as a simple increase or decrease in the number of assets or resources, which does not bring about fundamental or new changes through restructuring. Physical restructuring is a change in the physical form—that is, a change in the external manifestation. For example, a real estate company becomes a biotech company after restructuring, but there is no substantial change in the internal business. The aggregation and restructuring model of listed companies also falls into this category. A new joint-stock company is set up in the restructured enterprise group company and subordinate company to adjust the group’s internal asset institutions, and an appropriate amount of assets (mainly referring to affiliated institutions such as subsidiaries and branches) gather in the new stock company then. This approach is used as a restructuring model for capital increase and share expansion, stock issuance and listing.

Chemical Restructuring Chemical restructuring forms the third new compound with completely different compositions using a variety of elements or compounds. Just as hydrogen and oxygen are restructured to form water molecules, new assets will be generated through asset restructuring in this way. For example, the merger and restructuring of software companies and information hardware companies to create information industry groups is an example of chemical restructuring. Analyzed from the model, chemical restructuring is more advanced than mathematical restructuring because it is not a simple superposition but a new combination and change resulting in new assets. However, the combination process involves the recombination of two chemical elements and has not achieved the purpose of organic and flexible restructuring of living beings.

Biological Restructuring According to the explanation of biology, biological restructuring refers to the phenomenon of gene combinations that did not exist in the previous generation in the offspring during independent distribution or exchange of chromosome fragments. (1) Basic types of biological restructuring

2.7 Theory of Biological Reconstruction of Assets

127

Fig. 2.27 Schematic diagram of homologous DNA recombination

According to the interpretation of Gene VIII,103 restructuring involves material exchanges between double-stranded DNA and mainly falls into the following three types. The first is restructuring between homologous DNA sequences, which is often referred to as general recombination or homologous recombination (Fig. 2.27). In eukaryotes, this process occurs during the metaphase of meiosis, and only two of the four chromatids exchange. The second is restructuring which occurs between specific pairs of sequences. This specific recombination was first discovered in prokaryotes, also known as sitespecific recombination, which enables the integration of bacteriophages into bacterial chromosomes. This method mainly occurs in the intermolecular reorganization between circular and linear molecules—that is, the circular molecule is inserted into the linear molecule. As shown in Fig. 2.28, site-specific recombination occurs on two specific sequences (green), and the two recombined DNA molecules and other molecules have different sources. The third is the insertion of DNA sequences that do not depend on similar sequences. Transposons allow certain sequences to be translocated from one location

103

Genes VIII (Chinese Edition). Author: Benjamin Lewin. Translators: Yu Long, Jiang Songmin and Zhao Shouyuan. Beijing: Science Press, 2005.

128

2 The Bioeconomic Theory

Fig. 2.28 The circular molecule is inserted into the linear molecule

on the chromosome to another. This involves DNA strand breakage and reconnection, as shown in Fig. 2.29. Intramolecular recombination occurs between the two sites of the circular DNA molecule and releases two small circular DNA molecules. (2) DNA restructuring technology and process DNA restructuring is the exchange of DNA strands to produce a new nucleotide sequence arrangement.104 Sometimes called genetic engineering or gene manipulation, it is a technology that emerged after the 1970s. The main principle is to separate the genetic material (usually deoxyribonucleic acid, DNA) of the organism by artificial methods and then perform gene cutting, ligation, recombination, and other steps in vitro to construct hybrid DNA molecules and introduce them into living cells to change the original genetic characteristics of the organism, obtain new varieties, produce new products, and create genetically modified organisms that may never have existed before in nature. According to the basic process described in Molecular Cloning: A Laboratory Manual,105 DNA recombination mainly includes the following steps. Obtaining the target gene: Obtaining the target gene is the first step in implementing genetic engineering. Currently, there are two main ways to obtain a specific target 104

DNA recombination. https://www.nature.com/subjects/dna-recombination [2019-11-19]. Molecular Cloning: A Laboratory Manual (Third Edition, Chinese Edition). Authors: J.F. Sambrook and D.W. Russell. Translator: Huang Peitang. Beijing: Science Press, 2016.

105

2.7 Theory of Biological Reconstruction of Assets

129

Fig. 2.29 Site-specific recombination. The process allows dimeric circular DNA molecules to produce two monomeric circular DNA molecules

gene. One is to directly isolate the gene from the DNA of donor cells, and the other is to synthesize the gene. The most commonly used method for direct gene isolation is the shotgun method. The specific approach is to cut the DNA in donor cells into many fragments using restriction enzymes, load these fragments into the respective carrier, then transfer them to different recipient cells through the carrier to allow all DNA fragments (i.e., exogenous DNA) provided by donor cells to replicate in each recipient cell in large quantities, from which find the cells containing the target gene, and then separate the DNA fragments with the target gene by a certain method. For example, many insect resistance and virus resistance genes can be obtained by the above method. There are two main methods for artificially synthesizing genes. One way is to use messenger RNA transcribed from the target gene as a template, reversely transcribe it into complementary single-stranded DNA, and then synthesize double-stranded DNA under the action of an enzyme to obtain the desired gene. Another way is to use artificial synthesis technology and chemical methods to synthesize the target gene with a single nucleotide as the raw material.

130

2 The Bioeconomic Theory

Genetic recombination: Constructing gene expression vectors (the combination of the target gene and the vector) is the second step in implementing genetic engineering and the core of genetic engineering. The process of combining the target gene with the vector is actually a process of recombination of DNA from different sources. If the plasmid is used as a vector, it must first be cut with a certain restriction enzyme to make a gap in the plasmid and expose the sticky ends. Then, the same restriction enzyme was used to cut the target gene to produce the same sticky ends (some restriction enzymes can cut the blunt end with the same effect). Insert the excised fragment of the target gene into the plasmid at the nick. First, the two sticky ends are joined together with complementary base pairing, and hydrogen bonds are formed between the bases, and then an appropriate amount of DNA ligase is added to catalyze the formation of a phosphodiester bond between the two DNA strands, thereby linking adjacent deoxyribonucleic acids to form a recombinant DNA molecule (recombinant for short). Transformation: The purpose is to introduce the target gene into recipient cells. After the fragments of the target gene and the vector are connected in vitro to form a recombinant, the next step is to introduce the recombinant into recipient cells (mainly E. coli, yeast, mammalian cells, etc.) for amplification. There are many ways to transfer recombinant DNA molecules in vitro to recipient cells by artificial methods, such as virus transfection, phage infection, electroporation, transposon technology, etc. The purpose is to introduce the recombinant containing the target gene into recipient cells so that it replicates as recipient cells multiply. After the target gene is introduced into recipient cells, whether it can stably maintain and express its genetic characteristics can only be determined through testing and identification. Very few recipient cells can actually take up recombinants. Therefore, it is necessary to detect whether the target gene has been introduced into recipient cells by certain means. There are many detection methods. For example, a certain plasmid of E. coli has a penicillin resistance gene. When this plasmid is combined with exogenous DNA to form a recombinant plasmid and transferred into recipient cells, the tolerance can be determined based on whether recipient cells is penicillin resistant. Expression: After the recombinant DNA molecules enters recipient cells, recipient cells must exhibit specific traits to indicate that the target gene has completed the expression process. In biology, there are three main systems for the production of recombinant proteins: prokaryotic expression systems, yeast expression systems, and mammalian and insect cell protein expression systems. These three systems are used to transfer the recombined DNA or RNA into these expression systems. The process of cultivating recombinant proteins is expression. Meanwhile, these expressed proteins need further processing to obtain the required active protein.

2.7 Theory of Biological Reconstruction of Assets

131

Fig. 2.30 Diagram of using recombinant DNA technology to obtain the required biological products

Purification to obtain the target product: Cultivate the transformed cells, collect and crush the culture, and use protein purification technology to obtain the desired target product (Fig. 2.30).

2.7.2 Biological Reconstruction of Economy (Assets) Biological reconstruction of economy (assets) is based on the principles of DNA recombination and the most vigorous type of recombination. According to the abovementioned basic process, biological restructuring can be divided into five steps: ➀ target gene acquisition; ➁ genetic recombination; ➂ transformation; ➃ expression; and ➄ purification to obtain the target product. Biological restructuring has three advantages. First, it is organic, indicating dead asset restructuring can be turned into an organic process through the specific environment of biological restructuring. For instance, assets can regenerate unlimited vitality through continuous refinancing in the stock market. Second, it reproduces by fission. Cells multiply and divide from one to two, from two to four, and so on, finally from a quantitative increase to a qualitative change, forming an organic life form. Third, it has a balance of interests. Taking cell division as an example, after the parent cell chromosomes are copied, they are evenly distributed to the two daughter cells106 (Fig. 2.31). In other words, the number of chromosomes and DNA in the cell remains unchanged before and after division: each chromosome forms two identical sister chromatids. In the process of economic (asset) biological restructuring, the relevant listing and cash-out processes are reasonable and legal, and the interests of the government, shareholders, and shareholders are balanced. 106

Lodish H, Berk A, Kaiser C A, et al. Molecular Cell Biology. 5th ed. New York: Scientific American Medicine, 2003: 354.

132

2 The Bioeconomic Theory

Fig. 2.31 Mitosis diagram

Fig. 2.32 The model of biological reconstruction of assets

Taking this idea as a model, it can be seen that by applying the model of biological recombination to economic (asset) restructuring, specific assets or property rights can be reasonably changed in a certain way to form a new enterprise organization form, industry structure, and economic structure to realize market economic behavior with optimal allocation of economic resources. The model of biological reconstruction of economy (assets) can be briefly described with the listing process of a company as an example. The process consists of 5 steps: (1) acquisition of target assets (target genes); (2) reorganization with a joint-stock company (carrier) that meets the conditions for listing after restructuring; (3) entering the stock market (transformation); (4) appreciation in the stock market or financing (expression); (5) and turning money into shareholders’ assets by cashing out stocks (purification) (Fig. 2.32). The theory of biological reconstruction of assets can be used to build bioeconomic incubators, which differentiate them from regular incubators in that they can provide comprehensive, personalized, and nanny-style services to the restructuring target.

2.8 The Medical Model of Stock Market

133

2.7.3 The Significance of the Theory of Biological Reconstruction of Assets Compared to regular mathematical and chemical restructuring, the theory of biological reconstruction of assets is a typical theory of a green economy, capable of realizing the goal of achieving win–win or multiwin situations without harming others. Capital is profit-driven; capital is evil, as people usually say; it is mainly because under current circumstances, the benefit achieved through capital is based on losses of others’ interests, just like taking money out of the pockets of others and putting it into one’s own. For example, for most people in China’s stock market, their profits, especially the profits of makers, are entirely built upon the losses of retail investors. With the theory of biological reconstruction of assets, however, it could completely be avoided. This is because biological reconstruction brings about vital reconstruction that is reproducible and is balanced in interests. Based on the theory, after the company is restructured and enlarged, it is put into the stock market. With the increase in performance, the company’s assets are increased in value, which can meet the needs of the company, original investors, retail investors, and other interests. This would not bring losses to anyone at all, thus realizing added value for everyone. The key is to realize the biological reconstruction of assets under the guidance of bioeconomic theory. In addition, the model of biological reconstruction is neither a simple superposition of numbers nor does it need to provide huge energy to harvest new products such as the chemical restructuring process. It is a biological, moderate, nonpolluting restructuring process that does not require substantial energy. Therefore, biological restructuring is the most efficient and vital form among the three types of reorganization of assets or resources. This model, used as guidance for restructuring economy, assets, or enterprises, will provide new methods and means for the rapid development of enterprises, industries, and economies after reorganization. This kind of win–win or multiwin model that achieves self-interest without harming others will also provide a new reference for the development of China’s Belt and Road Initiative and the notion of a community of common destiny.

2.8 The Medical Model of Stock Market Can the stock market be predicted? This is a tough question. Based on the bioeconomic theory and from the perspective of life sciences and medicine, the author has proposed a medical model of the stock market by introducing hysteria and relevant genetic concepts in the analysis of the stock market and has put forward the method of predicting the stock market with the PAN value,107 providing a new way out for solving this world-class problem. 107

The author has proposed an indicator and named it the PAN value as measurement for the medical model of stock market that has been initiated by him.

134

2 The Bioeconomic Theory

2.8.1 The Conventional Idea: The Stock Market is Unpredictable 2.8.1.1

Stock Market Unpredictability is a World-Class Problem

Stock market investment is one of the industries where success is hardest to achieve. It is also the most complex industry, in which many smart people have had some bitter experiences. For example, many have probably heard of the story that Isaac Newton lost a fortune in the stock market.108 The South Sea Company, with a background in the British government, was established and issued the earliest batch of stocks. At that time, everyone was optimistic about it. The stock price on January 1720 was approximately 128 pounds per share, and then it quickly appreciated with a striking increase. Newton also invested approximately 7000 pounds in April of that year to buy shares of the South Sea Company. His stock rose soon after, and he earned more than 7000 pounds in approximately two months. However, shortly after the sale, he regretted it because by July, the stock had risen rapidly by almost eight times in value. After consideration, he decided to increase investment again. However, it did not take long for the South Sea Company stock to plummet, causing many investors to lose their money, and Newton lost 20,000 pounds. This is a general account of how the genius Isaac Newton failed to predict the stock market. In fact, not only did Isaac Newton fail to predict the stock market, but many other noted figures also suffered a stock market (or bond market) crash. The US LongTerm Capital Management L.P. (LTCM) hired Robert Merton and Myron Scholes, winners of the 1997 Nobel Prize in Economics, to invest with their theory but did not escape the fate of being eventually acquired to avoid bankruptcy. Since the development of the stock market, many people have conducted research and built a number of models in various aspects, but not a single model has been recognized by the stock market, approved by most people, and successfully predicted the development and changes of the stock market. The stock market is still challenging the intelligence of the world. This is mainly because they probably have all conducted research according to conventional ideas, and they will certainly not find the answer. According to conventional economics, W. Brian Arthur, the founder of the world’s complexity economics, believes that if stocks are studied in an orderly, static, knowable, and perfect way, there would surely be bloody results in the face of reality.109

2.8.1.2

Discussion of the Causes

At present, the study of the stock market can be roughly divided into three stages. The first stage is the mathematical stage, mainly based on the analysis of data to explore 108

Isaac Newton lost a fortune in the stock market. China Financialyst, 2009 (9). Complexity and the Economy (Chinese Edition) Author: W. Brian Arthur. Translator: Jia Yongmin. Hangzhou: Zhejing People’s Publishing House, 2018.

109

2.8 The Medical Model of Stock Market

135

the stock market. The second stage is the inclusion of human and psychological factors in individual and group behavior on the basis of mathematical theory The third stage is, on the basis of the first two, additional analysis of influencing factors such as the economic situation and market status, which can be called the complex factor analysis stage. In fact, the complex factor analysis stage is dynamic, similar to organisms’ progression and evolution stages. The basic model is that under the constraints of several general rules, individuals participating in the stock market buy and sell stocks based on their own experience, judgment, and other factors. However, as everyone is constantly synthesizing the information they get to correct their behavior—that is, they continue to evolve according to their own judgment. Unless the trading operation is stopped, every participant in the stock market will never stop their actions. It is impossible to achieve convergence or equilibrium. When there is good news, the stock rises; when there is bad news, the stock falls, which is the iron law of the stock market. In addition, it is almost impossible to infer other directions of development from the disorderly actions of active individuals since the investors are a large number of people, and everyone is a free-moving individual, coupled with the herd effect caused by metaphors, the torrent effect caused by inexplicable rumors, etc. This is probably also the reason why almost all the models that predict the stock market have failed. The analysis method of complexity economics is closer to the real simulation, but since it cannot include all the factors, it is inevitable to face great difficulties in analyzing the stock market with complexity economics. Therefore, Brian Arthur only calculated and simulated the stock market in the stock research experiment without providing an exact model and law. This most mysterious phenomenon of the stock market has attracted the attention of many scholars. Many research models have emerged, and hypotheses have been proposed, such as the efficient market hypothesis (EMH), fractal market hypothesis (FMH), and the random walk effect of stock prices, noise trader risk theory, the Noah effect, and the Joseph effect. However, these hypotheses, theories, and models tend to lead to several anomalies when applied in stock market analysis. For example, regarding the random walk effect in the efficient market hypothesis, the 2017 Nobel Prize winner Richard H. Thaler refuted the idea in the Calendar Effects in the Stock Market110 and pointed out the January Effect of the stock price and multiple anomalies such as Weekend, Holiday, Turn of the Month, and Intraday Effects, which have a wide variation with the random walk effect without purpose. The most important thing in the stock market is the bubble. The Tulip Bubble in the Netherlands, the Mississippi Bubble, and the South Sea Bubble are typical examples familiar to everyone. Regarding the emergence of bubbles, experts and scholars have researched the two dimensions of rationality and irrationality, respectively. For example, the theory of rational bubbles pioneered by Frank Horace Hahn, Paul A. Samuelson, and Shell Stiglitz proves that without an absolute deadline—that is, 110

The Winner’s Curse: Paradoxes and Anomalies of Economic Life. Author: Richard H. Thaler. Translator: Gao Cuishuang. Beijing: Citic Publishing House, 2018.

136

2 The Bioeconomic Theory

under the conditions of the total futures market, no market forces can guarantee that the economy will not generate bubbles and burst. Jean Tirole has proved the bubble under the condition of limited boundaries or limited agents, in which asset prices are derived from basic factors, which is inconsistent with rational behavior and has led to behavioral finance, nonlinear theory, and financial physics theory in the field of finance and other disciplines.111

2.8.2 The Medical Model of the Stock Market 2.8.2.1

Basic Concepts

Since the stock market’s future cannot be predicted based on mathematics, physics, economics, or even psychological behavior, does it mean there is no model for predicting the stock market in the world? Experience tells us there is nothing new under the sun, and there are no unexplainable mysteries. A lack of explanation at the moment may be because science has not developed to a certain level or that science and technology have developed, but due to researchers’ lack of or limited understanding, they have not used them well. In fact, while people often think they have unique ideas and groundbreaking discoveries, it is the result of their narrow horizons. Although the stock market is a complex system, it is driven by people. If life sciences and medicine perspectives are applied in analyzing the stock market, new ideas may be opened up for stock research. In a long-term research process, the author has realized the importance of this problem: since the investors of the stock are all humans, if the stock market is analyzed from the perspective of humans, a new key is bound to be found. By combining all aspects of knowledge, he proposed a new stock research model: the medical model of the stock market. The medical model of the stock market requires three basic conditions. First, the investor of the stock is a human. Second, everyone will independently decide to buy or sell the stock in their hands. Third, a large number of investors buying or selling stock will determine whether a stock price will go up or down. These three basic conditions must be considered in the analysis of the stock market.

111

Ji Xiaoyu: A Review of Foreign Literature on Stock Market Bubble Theory. Journal of Shanxi Radio & TV University, 2010, 7 (4).

2.8 The Medical Model of Stock Market

2.8.2.2

137

The PAN Value: An Indicator of the Medical Model of the Stock Market

In addition to analyzing financial data and the eight main factors that affect the intrinsic value of the price-earnings ratio,112 the significant impact of human rationality and irrationality must be considered in the main factors that determine the trading of stocks by investors. To this end, the author proposes to use the hysterical personality index (PAN value) to analyze the stock market. To understand the hysteria personality index or PAN value, one must understand what hysteria is. According to medical explanations, hysteria is a mental disorder caused by mental factors such as life events, inner conflicts, hints, or self-implications acting on vulnerable individuals. It is a mental disorder, and the symptoms are mostly functional. According to medical interpretation, suggestibility is the most basic feature of hysteria. To this end, the author defines the hysterical personality—that is, the personality most susceptible to suggestion is called the hysterical personality (which can be measured by the hysterical personality index [PAN value]), except for two extreme cases—autism (hysterical personality index P = 0) and hysteria (hysterical personality index P = 1.0). For 80% of the population, hysteria personality is normally distributed. From the perspective of theoretical research, the hysterical personality index of investors after receiving information can be defined as the strength of information— that is, the strength of suggestibility, which the PAN value can measure. Some people react excessively once they are stimulated, which means that the PAN value is high; some people follow the established target no matter how they are stimulated by external information, indicating a low PAN value. For example, people with a high PAN value are easily affected. They may buy/sell stocks upon hearing the word on the street, while people with a low PAN index may remain calm. In this case, if the PAN value of individuals in the stock market group can be detected, classified, and calculated, the development of the stock market could be well predicted (Fig. 2.33). In the past, some people have proposed a similar way, thinking that it is possible to measure the craziness index113 of stock investors by the clinical manifestation of hysteria, and by studying infectivity and imperceptibility through the craziness index, they could intervene in some people to maintain the stability of the stock market. However, there was no in-depth systematic analysis of this phenomenon in the later period, and a systematic theory to study the stock market was far from being formed. On the other hand, if the medical model of the stock market is linked to genes, it may be possible to draw more accurate conclusions. Because genes control human behavior, by analyzing the gene sequencing of hysteria personality of different degrees and analyzing a large cohort of genes of individual genes, scientists 112

Kent Daniel, David Hirshleifer, Avanidhar Subrahmanyam. Investor Psychology and Security Market Under and Overreactions. 1998. 113 Clinical Manifestation of Hysteria from the Perspective of Stock Investment. https://www.19lou. com/mip/board-123456806675374-thread-179901362859650482-1.html [2019-11-19].

138

2 The Bioeconomic Theory

Fig. 2.33 The model of PAN value

are bound to be able to find the correspondence between hysteria personality index and certain genes. On such a basis and then the big data processing of large-scale investment groups, the law of the stock market trend will be found so that our stock market prediction is more accurate, and reverse intervention can be implemented to achieve long-term stability in the stock market.

2.8.3 The Practical Significance of the Medical Model of the Stock Market In the West, the stock market is a barometer of economic development. When the stock market is soaring, investors have confidence in the entire society and engage in consumption, society will be active, and economic and social development will change for the better. Once the stock market does not do well, social information is insufficient, and there is no drive for consumption. Therefore, the confidence of social development will inevitably be affected. Even in China, with an active stock market, society shows a high state. Therefore, the government, society, and economists are very concerned with the stock market, whether in China or the West. In the current situation in which various stock analysis and prediction models are flawed, introducing the medical model of the stock market will bring new ideas to this research.

2.9 Theory of Asymmetric Management Information The theory of asymmetric management information is a new management model proposed by the author on the basis of studying asymmetric information theory,

2.9 Theory of Asymmetric Management Information

139

Maslow’s hierarchy of needs theory, and other theories by combining the ideas and approaches of life sciences and medicine.

2.9.1 Basic Knowledge 2.9.1.1

The Origin of the Management Science

Management is the science of systematically studying the basic laws and general methods of management activities. The core refers to the methods, techniques, and means adopted to achieve the ultimate goal while carrying out activities aimed at the established targets by the person in charge (i.e., the manager) in a certain organization through planning, organization, coordination, regulation, and other functions to coordinate other members of the organization and of course him or herself included. According to this definition, the core of management research should be how to coordinate the actions of the responsible person and other members of the organization—that is, the manager and the managed persons. Therefore, in a certain sense, management science can also be defined as the science of studying the relationship between managers and managed persons. Naturally, the emergence of management science is closely related to social and economic development. For example, it did not exist in the agrarian economic era, the so-called man-farming, woman-weaving self-sufficient economy in China, in which production was based on individuals or self-management as people worked from sunrise to sunset. Therefore, management knowledge was not needed at all. Although relatively large-scale productions did appear in the era, they were under imperial court monopoly, in which the products were exclusively made for the court. There was neither the formation of society-wide influence nor was there so-called scientific management. The management that we now refer to originates in the industrial revolution in the United Kingdom. The new era initiated by the revolution at the end of the eighteenth century promoted large-scale and intense industrial organizations (i.e., enterprises) that were commercial and socialized. It also formed an unprecedented special need for management. This is because, in such early enterprises, managers were the employers who were also entrepreneurs and capitalists, whereas the managed people were workers who had nothing but labor to offer. The interpersonal relationship was in a state of confrontation. To this end, managers must seek managerial strategies and tactics to control workers. It is generally believed that the publishing of The Principles of Scientific Management 114 by Frederick Winslow Taylor and Henri Fayol’s masterpiece Administration

114

The Principles of Scientific Management (Chinese Edition). Author: Frederick Winslow Taylor. Translator: Ma Fengcai. Beijing: China Machine Press, 2014.

140

2 The Bioeconomic Theory

Industrielle Et Générale115 marked the birth of management science. Based on this time period, the development of management in the modern sense has not exceeded 108 years. However, during these 108 years, researchers and learners of management science and the literature of management all rose exponentially, and management science as a discipline has gradually matured.

2.9.1.2

The Evolution of Management Thought

As explained before, the core of management is human-centered coordination activities to achieve the expected goals. The purpose of management is to achieve the expected goals. This is because there are often inconsistencies in opinions and actions between managers and managed persons and members. Coordination becomes an essential activity to keep a consistent pace with everyone’s thoughts and efforts directed toward one goal and achieve greater, faster, better, and more economical results to reach the goal. From this point of view, we can see that the essence of management is coordination, but the object of coordination is people; the ultimate goal of management is to make individual efforts consistent with the expected collective goals. Since the object of management is human, it also means that management is affected by a broad sense of culture. Under different historical conditions, social backgrounds, and cultural atmospheres, there will be huge differences in thinking patterns, methods, and management styles. The famous American management scientist Peter Ferdinand Drucker once pointed out that management is shifted by culture and is governed by its social values, traditions, and customs. For example, the American management model, influenced by the American free culture, emphasizes autonomy; Japanese management emphasizes human relations, and the J model has emerged (i.e., the Japan model, emphasizing harmonious interpersonal relationships, top-down negotiating decision making, employee loyalty, and the organization’s social responsibility, etc.); German management emphasizes organization and discipline. In the meantime, because both managers and managed persons are humans, many management researchers have gradually introduced human nature into management science. They believe that the process from the emergence of management to the present day is also a process in which human value is gradually highlighted in management.116 In the early days, the basic tenet of Frederick Winslow Taylor’s “scientific management” is that workers are like animals, efficiency above all else, and management is monitoring. From the 1920s to the 1930s, the personnel management school advocated the establishment of welfare programs for the employees, but its highest level of pursuit is merely the integration of the interests of employers 115

General and Industrial Management (Chinese Edition). Author: Henri Fayol. Translator: Chi Ligeng and Zhang Xuan. Beijing: China Machine Press, 2007. 116 Li Baoyuan: Back to Human-oriented Management—A Hundred Years of Management History from Science to Human. Journal of Zhengzhou Institute of Aeronautical Industry Management, 2006.

2.9 Theory of Asymmetric Management Information

141

and employees. In the mid and late 20th Century, especially since the 1990s, human resources management with “strategic incentives” as the core concept has gradually become the mainstream of management, but the essence of it is the requirement of treating people as assets (resources, assets, capital) from a strategic perspective. Management in the twenty-first century should further surpass human resource management, truly establish the people-oriented concept, and tap the group spirit and creativity of employees from the overall, dynamic and humanistic spirit levels. Since the development of management science, management thought has undergone a series of evolutions. Many scholars have conducted research on management ideas and divided them into stages. Based on the triad theory proposed by the author, it is more appropriate to divide management into three stages. For this reason, the author agrees with the staged division proposed by the famous economist Ma Hong of China117 ,118 The first stage is the so-called classical management theory formed at the end of the nineteenth century to the beginning of the twentieth century. The typical representative is the scientific management advocated by Frederick Winslow Taylor and others. The second stage is the “Interpersonal Relations and Behavioral Science Theory,” which began in the 1920s, with questions about human needs, motivation, and incentives as the focus of its research. The third stage is some contemporary schools of thought from the Western management theory that emerged after the World War II, including the Social System School, the Decision Theory School, Systems Management School, the Empirical School, Contingency Approach School, and the Scientific Management School, etc., which were born with the advancement of science and technology, the tremendous development of productivity and the increasing degree of socialization of production after the World War II. On the other hand, we cannot ignore China’s contribution to management science. Many scholars think the known management masters and ideas are from the West, whereas the Chinese have no position. However, in fact, China is the first country in the world to propose people-centered thinking. “People-centeredness” first appeared in Guanzi. It was proposed by politician Guan Zhong (720–645 BC) with the original intention that only by solving the problems of people can the country be safe and stable. The proposal of this concept in China did not lead to a systematic theory. Although China has done well in management, especially in enterprise and economic management, it is the basic fact that no theoretical school was formed in the history of management science, nor was there any typical representative. Therefore, Chinese people can neither be arrogant nor complacent in the field of management science. As long as we can introduce Chinese management concepts and ideas according to the current scientific theory paradigm, Chinese people will also propose leading management concepts, methods, and models. The theory of asymmetric management information is an example.

117

An Inventory of the History of Western Management Thought. Secretary Work, Vol. 1. 2012 (3). 118 An Inventory of the History of Western Management Thought. Secretary Work, Vol. 1. 2012 (4).

142

2.9.1.3

2 The Bioeconomic Theory

The Theory of Asymmetric Information

The core content of asymmetric information theory is that in markets with imperfect information, the asymmetric distribution of relevant information between the two parties of the transaction can have an important impact on market trading behavior and thus market behavior. For example, in market transactions, the party with more information can obtain higher profits than the party with poor information; the party with more information between the buyer and the seller will gain greater benefits than the other party. George A. Akerlof conducted the earliest research on information asymmetry. In his article published in 1970,119 he first proposed the concept of the information market. Starting from the used car market, he discovered the contradiction between sellers and buyers caused by the different information they have about vehicle conditions, which eventually leads to the decline of the market. Asymmetric information theory has not received much attention since it was proposed in the 1970s. It did not receive attention until the 1980s with the application of information asymmetry in the financial field. Currently, asymmetric information theory has been applied to many fields, such as accounting, real estate, banking, import and export, and engineering technology education. Joseph Eugene Stiglitz,120 George A. Akerlof,121 and A. Michael Spence122 also conducted in-depth research on information asymmetry. It is precisely because of their outstanding contributions in modern information economics research, which revealed the core of the contemporary information economy, that they were awarded the Nobel Prize in Economics in 2001.

119

Zhang Changyu: Introduction to Nobel Prize in Economic Sciences (Series No. 25). Modernization of Management, 2002 (1). 120 Joseph Eugene Stiglitz is an American economist at Columbia University; he is a former member and chairman of the (US president’s) Council of Economic Advisers (1993–1997), the senior vice president and chief economist of the World Bank (1997–2000), President of the International Economic Association (2011– 2014) and a recipient of the Nobel Memorial Prize in Economic Sciences in 2001. 121 George A. Akerlof is an American economist who is a Professor of Economics Emeritus at the University of California, Berkeley. His areas of expertise include macroeconomics, poverty, family problems, crime, discrimination, monetary policy and German unification. 122 A. Michael Spence (born November 7, 1943, New Jersey) obtained his Ph.D. from Harvard in 1972. He was an Associate Professor of Economics at Stanford from 1973 to 1975, then he went back to Harvard for research and teaching; he was elected a fellow of the American Academy of Arts and Sciences in 1983 and in 1990 he returned to Stanford Business School as dean. From 1991 to 1997, he was chairman of the National Research Council Board on Science, Technology, and Economic Policy.

2.9 Theory of Asymmetric Management Information

143

2.9.2 The Theory of Asymmetric Management Information 2.9.2.1

The Proposal of the Concept

The history of management thought reminds us that after entering the twenty-first century, managers can no longer confine their thinking to creatively and effectively integrating limited resources within an organization; the greatest challenge that awaits management science is how to adapt to new changes. What is management? Based on the author’s understanding, management is person-to-person management. In this context, there is bound to be the issue of differentiation among individual needs. For example, some people are engaged in a job to support their families, some pass the time, and some treat work as a pleasure. The biggest problem is how to manage on the basis of understanding this information. Only by solving the problem of information asymmetry between managers and managed persons can the highest management level be achieved. To this end, the author believes that modern management must proceed from the basic needs of humans and achieve ultimate management through the management of persons. Since both the manager and the managed person are human beings, handling the relationship between persons is the goal that management must focus on, and meeting the needs of the managed persons to the maximum is the core that must be paid attention to in management. Therefore, management research must start from the perspective of persons. Persons are the basic analysis unit for studying human beings, organizations, and management.123 Perhaps managers can be treated as one system with the person being managed when studying the differences between persons, i.e., between managers and managed persons? Perhaps management can be carried out according to a systematic model? This is the author’s understanding gradually formed in the long-term thinking and practice of management—that is, the core concept of the theory of asymmetric management information. The author believes that managers must apply the ideas and approaches of life sciences and medicine to solve the problem of information asymmetry that exists between managers and managed persons. Only in this way can the pursuits of managed persons be satisfied to the greatest extent, the subjective initiative and potential of humans be fully mobilized to achieve the goal of managers.

2.9.2.2

Core Principles and Basic Framework

The author’s point of view coincides with that of Abraham Harold Maslow’s hierarchy of needs. Abraham Harold Maslow is an American social psychologist, personality theorist, and comparative psychologist, the main initiator and theorist of the humanistic school of psychology, and the leader of psychology’s “third force.” In 123

Yao Wei: The Development History of Western Management Thoughts Viewed from the Evolution of the Hypothesis of Human Nature. Tai sheng: a new perspective, 2005 (1).

144

2 The Bioeconomic Theory

Fig. 2.34 Maslow’s hierarchy of needs pyramid

A Theory of Human Motivation124 in 1943, he proposed the hierarchy of human needs and divided the needs into five categories: physiological, safety, love and belonging, esteem, and self-actualization (Fig. 2.34). He perceived human needs as being arranged like a ladder or a pyramid and gradually increased according to levels. Although he revealed the law of human needs, he did not find theoretical support in life sciences and medicine due to limitations of the development level of science and technology. However, based on a solid foundation in these fields, the author has sublimated Maslow’s point of view and attributed life goals to three needs and three pursuits. The detailed explanation is that human beings are advanced animals and possess the three instincts of animals—hunger, sexual desire, and self-defense—that is, animal needs. However, humans are special advanced animals, and in addition to the sense of animals, they also have perception. The demand generated by perception is rational demand, quantifiable at a higher level of demand above the three instincts of animals, such as work goals, marriage, and family. Spiritual demand is a higher and the highest level of demand above rational demand. It is unquantifiable, such as love, faith, enjoying food, etc. People have needs and pursuits. The similarities and differences between needs and pursuits lie in the fact that human needs exist objectively, but humans do not necessarily pursue their needs; in real life, mostly both cases exist simultaneously. 124

Abraham Harold Maslow. A Theory of Human Motivation. Psychological Review, 1943, (50): 376–390.

2.9 Theory of Asymmetric Management Information

145

Fig. 2.35 The human needs and pursuits model

Based on this understanding, the author believes that if a manager analyzes the managed persons from the perspective of three needs and three pursuits, the development of many things and events will gradually become clear. The three instinctive needs of hunger, sexual desire, self-defense are the most basic needs, and must be given enough attention. Rational needs are those that need be satisfied with certain material conditions met. Spiritual needs are not essential to everyone. In this way, managed persons are divided into these three types and managed separately to reach the highest level of management: actionless governance (Fig. 2.35).

2.9.3 The Prospects and Future of the Theory of Asymmetric Management Information Although the management science currently taught in textbooks has taken persons as the core element, it has not given interpretations from a higher level. Even the most advanced concept currently is only to promote the people-oriented concept in management without gradual further research. From the heights of life sciences and medicine, the theory of asymmetric information of management accurately and thoroughly analyzes the core element of management—human needs and pursuits, which will bring revolutionary changes to the development of management. Meanwhile, with the advancement of science and technology, especially the development of life sciences and medicine related theories and technologies, we may be able to achieve precision management of individuals. By sequencing the genes of the managed persons and analyzing the individual genes, it is possible to reveal the behavioral basis of the managed persons’ needs and pursuits at the genetic level; through the processing of big data of large-scale populations, the laws of management science can be discovered to provide a new management model for the establishment of a management efficiency system, which will greatly improve productivity.

146

2 The Bioeconomic Theory

2.10 The Corporate Theory of the State The corporate theory of the state is based on the concepts of life sciences and medicine and the other theories proposed by the authors, such as the theory of information carrier of life, socio-genology, the theory of asymmetric management information, etc. From the most basic starting point—the minimum human factor, the theory reveals the roots of consistency between the country and the company, proposing that the core concepts of national governance and corporate governance should be basically the same. Managers can learn from the corporate governance model to develop the scientific guiding principles of national governance.

2.10.1 Basic Knowledge 2.10.1.1

Country

What is a country? Different people have different interpretations, and different dictionaries and lexicons also have different definitions. One is the definition based on the ideology of the ruling class. The state is a machine for maintaining the domination of one class over another, and the state is a product and a manifestation of the irreconcilability of class antagonisms. Vladimir Lenin once pointed out that the state is an instrumentality whereby one class maintains dominance over another and is a tool for the dictatorship of the ruled class by the economically dominant class to protect the interests of the class. The other is the definition of spatial area. The state is a common organization established by residents with sovereignty residing in common territory. The state is a social and political entity with a certain territorial scope, certain residents, and a management system. In ancient Greece, the term country refers to a city-state; in ancient Rome, it refers to all citizens of a city. According to the definition of a country defined in Article titled Montevideo Convention on the Rights and Duties of States, a country must have a fixed population (A), a certain territory (B), a government (C) and the ability to interact with other countries (D). In the doctrine of the bourgeois state, the “three elements of the state” are widely circulated: the state is the sum of a territory, a population, and sovereignty. China’s understanding of the country is different from that of the West. The Chinese character “state” appeared in Shangshu Lizheng (Establishment of Government): seek for good officers, and get them to use all their powers in aiding the government of our country. However, in China, the phrase country can be understood as consisting of two words: country and home; there is no home without a country. However, in the early days in ancient times, the state referred to the territory ruled by the princes, and the family referred to the territory ruled by the grand masters. Later, when the two merged, the general term for the country emerged.

2.10 The Corporate Theory of the State

147

It is generally believed that the United States became the first federal republican democracy and is widely considered to be the first democracy in the real sense. However, some historians think that Ancient Greece is the first democracy in the world.

2.10.1.2

Company (Enterprise)

What is a company? A company is a form of enterprise organization, a for-profit corporate legal person. The company’s origins can be traced back to the ancient Roman period, and it later developed on the Mediterranean coast of the medieval European continent. The earliest was the unlimited company. The first company limited by shares appeared in 1555. It was established under the British Queen’s license to trade with Russian companies. However, it is generally believed that a joint-stock limited company originated from a colonial company established by Britain, the Netherlands, and other countries in the seventeenth century, such as the well-known British East India Company and the Dutch East India Company. It is worth mentioning that, unlike the British East India Company, the Dutch East India Company has issued public shares to all citizens, and it has actually become the world’s first listed company. The earliest limited liability company was born in Germany at the end of the nineteenth century. The earliest legislation of a limited liability company was the German Limited Liability Companies Act (1892). France also enacted the Limited Company Law in 1919 and so did Japan in 1938. The company’s organization has developed into many forms, such as unlimited liability, limited liability, limited partnership, joint-stock, and joint-stock limited partnership companies. In the National Bureau of Statistics of China, the company’s organization is divided into state-owned, collective, shareholding cooperation, joint venture, limited liability, private, Hong Kong, Macao and Taiwan investment, foreign investment, etc. According to the current legal understanding, modern companies need to meet three basic conditions: an independent legal person, who can independently use shareholders’ investment in its name to engage in production and operation activities and bear corresponding legal responsibilities; and a for-profit economic organization. The purpose of its production and operation activities is to continuously obtain profits and increase the value of the company’s assets. The third is to be established in accordance with the provisions of the law and register and obtain legal personality according to law. In the long-term practice and thinking process, the author has formed his own unique understanding of the company (enterprise). He believes that the so-called company is an enterprise organization established according to legal procedures, including limited liability companies and joint-stock companies; if divided according to the form of assets and management mode, it can be roughly divided into three categories: sole proprietorships, limited companies, and listed companies. Meanwhile,

148

2 The Bioeconomic Theory

an enterprise is a corporate legal person and is entitled to independent legal person property rights.

2.10.2 The Corporate Theory of the State The corporate theory of the state is a doctrine summed up by the author on the basis of long-term thinking, research, and practice, as well as the analysis of the similarities and differences between the country and the company. The basic idea is that the basic elements of the country and the enterprise are both people, and they are both a collective formed by people, i.e., the existence of a collective of people. Since the country and the enterprise are a collective of people, in a certain sense, both the company and the country are largely affected by genes. This is because human beings are, to a certain extent, living bodies under the control of genes. Life is selfish, and similar to other living things, it is nothing but a living tool for genes.125 The genetic strategies used in the cooperation and competition of genes at various biological scales reflect the laws of life considerably126 : selfishness is an instinct, and cooperation is wisdom. In this case, from the perspective of life sciences and medicine, the author believes that since both the country and the enterprise are collectives, the difference is only in size: big versus small. Then, companies and countries can learn from each other in management. Since asymmetric management information provides a solid theoretical foundation for enterprise management, this principle is also suitable for government or national management. From its development in 1555 to the present, the enterprise has gone through a course of 464 years. In recent years, enterprise management concepts, models, methods, and means have become relatively mature and stable. The management of people is the fundamental starting point in managing the enterprise and the country. We can learn from the corporate governance model and expand the experience of the enterprise at the national level. This is the core content of the corporate theory of the state—that is, under the guidance of the life information carrier theory, the asymmetric information of management theory, socio-genology, and other theories, the model of enterprise management can be used as a reference to the management of a country. Relevant concepts of the corporate theory of the state have been discussed at home and abroad. For example, in The State as Entrepreneur 127 published in 1973, Stuart Holland once proposed that the country can be operated from the perspective of 125

The Selfish Gene. Author: Richard Dawkins. Translators: Lu Yunzhong, Zhang Daiyun, Chen Fujia, et al. Beijing: Citic Publishing House, 2012. 126 The Society of Genes. Authors: Itai Yanai and Martin Lercher. Translators: Yin Xiaohong and Huang Qiuju. Nanjing: Jiangsu Literature and Art Publishing House Phoenix, 2017. 127 Holland S. The State as Entrepreneur. International Arts and Sciences Press. First U. S. Edition. 1973.

2.10 The Corporate Theory of the State

149

running a company. Liang Shuming, a master of traditional Chinese culture, believes that in modern Western civilization, the country has been transformed into a large company, organized and operated as a company, thus gaining organization, cohesion, and combat effectiveness.128 However, they did not discuss the root cause in more depth, nor did they discuss it with life sciences and medicine.

2.10.3 The Corporate Theory of the State and State Governance Which governance model in the world is the most effective? Many people have conducted research, but they have not received a good answer. Taking the research of world-renowned political scientist Francis Fukuyama as an example, after the collapse of the Soviet Union, he expressed emotions about the end of history and believed that the collapse of the Soviet Union, the drastic changes in Eastern Europe, and the end of the Cold War marked the end of communism, that there was only one way in the development of history—the Western market economy and democratic politics,129 and that only liberal democracy was the “end of human ideology” and “the last form of human rule.” However, later, he revised this view, holding that world history has not ended yet and changed his evaluation of a country’s political system from purely focusing on political democracy in the past to the need to pay attention to the government’s ability to govern. Fukuyama’s research tells us that the current study of history and the study of the country and the government have not found a good way. Without a good way, a good governance approach will certainly not be found. There is no good model and a good way for state governance? In the research and analysis of many scholars, the author has found that although they have carried out sound research and put forward a series of theories, they are basically concentrated on the political system, decision-making system, and governance system. Few scholars have conducted research from the perspective of the science of man. Based on this, the author has put forward the corporate theory of the state. The core concept is based on his understanding of the company. Until now, the company’s ownership has undergone a transformation from a sole proprietorship to a public company. The basic transformation model has gone through a sole proprietorship— a limited company to a listed company. The company’s control right has also gone through the three processes of full control—leading control—control according to shares. These three processes correspond to the transition of the management 128

Virtue-based Politics and Law-based Governance—A Dialog on Law, Government and Civilization (a dialog between Prof. Xu Zhangrun and Liu Yuhai, Zhu Tianyuan and Chen Liping, journalists of The Economic Observer at Mingli Building of Tsinghua University in December, 2016). http:// www.sohu.com/a/256381782_100191068 [2019-11-19]. 129 The End of History and the Last Man (Chinese Edition). Author: Francis Fukuyama. Translators: Huang Shengqiang and Xu Mingyuan. Hohhot: Yuanfang Press, 1998.

150

2 The Bioeconomic Theory

Fig. 2.36 The diagram for the corporate theory of the state

process from dictatorship (full control) to the implementation of established laws and regulations, embodying the democratization process of company management. Given that the state and the company are very similar in terms of asset form and management model, the author believes that national governance can be done by referring to the company’s operating model and management structure: the state’s management of government departments can refer to a company’s management of various functional management departments. The state’s management of industries can draw reference from the management of key products by enterprises, and the state’s management of people can be inspired by the management of employees by companies. Meanwhile, the governance of the country can also be carried out regarding the form of assets and management models to go from kingdoms and authoritarian countries to democratic countries (Fig. 2.36).

2.10.4 The Significance of the Corporate Theory of the State The corporate theory of the state is a collection of new ideas and research directions provided for national governance research that the author has built based on his use of the concepts of life sciences and medicine, in combination with the theory of information carrier of life, socio-genology, the theory of asymmetric information of

2.10 The Corporate Theory of the State

151

management, the life capital theory and other bioeconomic theories. With reference to the enterprise management (governance) model, the finding is that state governance should also move toward democratic politics. A country with a feudal management style is a dictatorship, and the United States and the republics are partially democratic countries. The future principalities—the countries in which all people are involved in management—will be a fully democratically guided country and the future of national development. This is just like in enterprise management, a company can eventually become a listed company only after going through the development process of “full control— leading control—control according to shares”; this is the final destination of the company, also representing the highest stage of its development. Compared with nonpublic companies, listed companies are much more stable because they must undergo rigorous review and supervision; every major transaction and every major decision must be made public, and concealment and deception are prohibited. Using this model as a deduction, democratic countries are equivalent to listed companies (i.e., public companies). They must meet the requirements for listing and must also carry out relevant work under strict agreements. From the current point of view, the democratic country closest to the corporate theory of the state should be Switzerland. It adopts direct democracy in the form of a citizen vote (i.e., a referendum) and a citizen initiative. The Swiss Confederation does not have a President or Prime Minister. The Federal Council is the highest executive authority, consisting of seven members, and serves as the collective head of state for four years. The position of President of the Swiss Confederation rotates among the seven councilors on a yearly basis. It is such a system that guarantees the stability of the Swiss Confederation. China should also learn from its experience and lessons in national governance. According to the author’s estimate, China’s future and revitalization must be based on the unification of the two sides of the Strait, settlement of the three rural issues, and political democratization; in particular, political democratization can provide an important guarantee for China’s long-term stability. When applying the corporate theory of the state for state governance research, we should also keep in mind the economic base determining the superstructure. This means that the country’s democratic politics must be based on a certain material foundation and advance gradually in due order. It is much like a limited company, which needs to be transformed into a joint-stock company before it can be approved for listing according to the requirements of a listed company, such as corporate governance structure, main business profits, and sustainability. Meanwhile, when using the corporate theory of the state to conduct national governance, we must also fully consider the differences between the countries of the world. There are more than 200 countries globally, with different populations, cultural foundations, and accordingly differentiated governance models. The promotion of democracy in small countries can be based on New Third Board listing, medium-sized countries on GEM listing, but large countries with significant influence such as China, the United States, Russia, Japan, Germany, and India, should actively refer to the main board listing model and must set high standards and strict requirements, given

152

2 The Bioeconomic Theory

the huge difference between the governance of large countries and small countries. Governing a large country is like frying small fish: too much poking spoils the meat130 ; it is different from a small country.

130

Hu Jian: Learning from the series of important speeches of General Secretary Xi Jinping since the 18th National Congress of the Communist Party of China: realizing the transformation of leadership methods. Zhejiang Daily, August 30th, 2013.

Chapter 3

The Bioeconomic Model

What is the model? People view the concept differently. It is a general way of subject behavior, including the scientific experiment model, economic development model, enterprise profit model, etc. An intermediary link between theories and practice is general, simple, repetitive, structural, stable, and operable. It also refers to the core knowledge system abstracted and refined from production and life experience. It is a methodology for solving a certain type of problem and summarizes the method of solving a certain type of problem to the theoretical level. In addition, some people think that the model is a kind of guidance. Under good guidance, it helps to complete the task, gives a good design plan, achieves more results with less effort, and gets the best solution to the problem. It can also be defined to as paradigms, generally referring to patterns used as templates, calligraphy or painting models, and variants. Based on the above explanations, the author believes that the model refers to a state as the intermediate link between theory and practice and is a universal paradigm of guiding significance that is tried out under certain theoretical guidance. The economic model refers to certain forms of various economic components and the mode of regulation and operation mechanism. It is an abstract description of the framework and principles of real economic activities and economic growth modes, excluding minor factors and details in economic activities. It is a theoretical design and construction of the basic operating rules of the national economy, types of growth, and major economic policies.1 From the development of the economic model to the present, there are various classification methods and approaches, such as the capitalist economic model, the socialist economic model, the Asian model, the European and American model, the developed country market economic model, the developing country (region) market economic model and the market economy model of countries in transition, as well as market-oriented capitalism, government-oriented capitalism and negotiated or consultative capitalism.

1

Qiu Xunmin: Economic Models of the United States, Germany and Japan: A Comparative Study and Selective Reference. Research on Financial and Economic Issues, 2003 (3).

© Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_3

153

154

3 The Bioeconomic Model

Fig. 3.1 The ten major bioeconomic models

The bioeconomic model is the series of new economic models built under the guidance of the bioeconomic theory. The author has created and practiced ten major bioeconomic models (Fig. 3.1) under the guidance of the bioeconomic theorys, including the bioeconomy experimental zone, the bioeconomy community (Sinobioway Commune), the big industry, the super good agricultural practice (S-GAP), the good health practice (GHP), the forest health and wellness, the bioeconomy incubator, the senior wellness community, the biofinancial supermarket, and the biolab supermarket. On the other hand, the bioeconomic model is not limited to the current ten. As the application of the bioeconomy theorys expands, the varieties of bioeconomic models will increase in number. Therefore, the model can also be referred to as bioeconomy plus (bioeconomy+). In other words, any industries and trades could be included in the realm of bioeconomy. As long as it has certain characteristics of bioeconomy and can operate steadily, it can be called the bioeconomic model.

3.1 The Bioeconomy Experimental Zone

155

3.1 The Bioeconomy Experimental Zone The author proposed the brand new bioeconomy concept and created bioeconomic theory in 1995. He then created ten major bioeconomic models under the guidance of the theory. He innovated the development of the bioeconomic industry by applying bioeconomic models, thus establishing the first bioeconomic system in the world. In an effort to better develop, implement and improve relevant concepts of the bioeconomy, he pioneered the world’s first bioeconomy experimental zone in the Chaohu Economic Development Zone in the Hefei-Hefei Bantang Bioeconomy experimental Zone in 2013.

3.1.1 Basic Concepts 3.1.1.1

Experimental Zone/Test Area

Before we come to the experimental zone/test area, two concepts must be distinguished first: an experiment and a test. An experiment is to perform an operation or engage in an activity to test a scientific theory or hypothesis, while a test is to engage in an activity to observe the result or the performance of something. It can be inferred from these two definitions that what is tested in the experiment is a certain scientific theory or hypothesis, which is carried out through practical operations, and what is examined in the test is to see what already exists, to see the result or the performance of something through utilization or trials. In fact, according to the definition of an experiment and a test, the experimental zone and the test area should be two different concepts, and there should also be a sequential order: the experimental zone comes first and the test area comes second, which is in line with the law of development. However, as far as the current advancement is concerned, both the experimental zone and the test area are innovations in China. China’s central government and local governments have rapidly achieved regional, industrial, and economic and social development through industrial policies such as preferential finance, taxation, and talent incentives. In practice, however, institutions, including the national government and many scholars, have different understandings of the application. For example, the application is fairly confusing when the state promotes the experimental zone/test area. According to preliminary inquiries, there are both experimental zones and test areas in China. For example, in terms of test areas, there are national-level comprehensive supporting reform pilot areas, pilot free trade areas, etc., at local levels, there are Guangdong-Guangxi Cooperation Special Pilot Zone, Ruili National Key Development and Opening-up and Experimental Zone, etc., as well as in the professional field, (Hangzhou) E-commerce comprehensive test area, national big data (Guizhou) comprehensive test area, Beijing-Tianjin-Hebei big data comprehensive test area, etc. Another example is with the experimental zone. There are sustainable development experimental zones at the national level, the national rural community governance

156

3 The Bioeconomic Model

experimental zone, the national cultural industry innovation experimental zone, and the local level, the Pingtan Comprehensive Experimental Zone. Meanwhile, the national pilot zone (or test area) in China also includes various new zones led by the state, such as the four major categories of special economic zones, development zones, high-tech zones, and free trade zones. Preliminary statistics show that as of April 2017, there were 7 special economic zones, 9 national new zones, 11 free trade pilot zones, 219 national economic and technological development zones, 56 national high-tech industrial development zones, 2 national comprehensive reform pilot zones, and 6 national financial comprehensive reform pilot zones.

3.1.1.2

The Bioeconomy Experimental Zone

At present, all the experimental zones are conducted by national and local governments. While emphasizing market approaches, government-led experimental zones also face some difficult issues, such as incentive mechanisms and sustainability. The bioeconomic experimental zone proposed by the author is completely different from the national-led zones. The bioeconomic theory guides it in concept, system, technology, product, market, and management with the bioeconomic industry as the focus. It is the modern park formed by the integrated development of the big industry, big market, and big finance, a large-scale science, and technology park dominated by enterprises.

3.1.2 Theoretical Foundation 3.1.2.1

Theoretical Source

The bioeconomy experimental zone is significantly different from the current domestic and international zones. It is practice formed under the guidance of the bioeconomic theory system and guided by Econo-genology, Socio-genology, the theory of biological reconstruction of assets, and the theory of asymmetric management information. According to the theory of biological reconstruction of assets, the core mark that distinguishes the bioeconomy experimental zone from other national zones is that it is fast and economical, and it can provide comprehensive, personalized, and nanny-style services for enterprises entering the park, allowing them to maximize the interests of all parties in a fast and economical way. Meanwhile, to provide comprehensive, personalized, and nanny services, the key is how to break through management information asymmetry and deal with restrictive factors involved. Only by resolving the restrictive factors can the interests of all parties be maximized in a fast and economical way.

3.1 The Bioeconomy Experimental Zone

3.1.2.2

157

Main Characteristics

Compared with other experimental zones, the bioeconomy experimental zone has significant differences. First, the theoretical basis is different. At present, the experimental areas that are widely carried out in China are based on traditional economics and industrial development theories, industrial agglomeration theory, and competitive advantages and comparative advantages. The bioeconomy experimental zone is based on econo-genology, socio-genology, the theory of biological reconstruction of assets, and the theory of asymmetric management information under the guidance of the bioeconomic theory system. Second, the operating mode is different. The typical features of the bioeconomy experimental zone are that it does not harm others to realize self-interest, relies on ecological-economic development and allows one to enjoy life during work. The basic model of its operation is to use a fair and available foundation for everyone— solar energy. Relying on the energy brought by the sun, using green mountains and clear water, and a beautiful ecological environment is a way of development based on its own advantages. Finally, the implementation subject is different. Most of the experimental areas in China are led by the government. This can reveal the government’s advantages to a certain extent because China has a strong government, and the government’s dominance is conducive to mobilizing social resources. However, there are many problems under the government’s leadership, such as insufficient incentive mechanisms and other issues that seriously trouble its development. The bioeconomy experimental zone is led by enterprises, and there will be no such problems as insufficient incentive mechanisms.

3.1.3 Cases of Planning Considering the bioeconomy experimental zone is a new concept proposed by the author, also a model that the author has been practicing and implementing. The layout of the Hefei Bantang Bioeconomy Experimental Zone is now taken as an example to facilitate understanding. The Hefei Bantang Bioeconomy Experimental Zone is a new experimental zone with a planned area of 31 square kilometers built under the leadership of Sinobioway. It locates in Bangtang, Hefei City of Anhui Province in the center of China. It is an experimental area centered on the bioeconomic industry under the guidance of econo-genology, socio-genology, the theory of biological reconstruction of assets, and the theory of asymmetric management information. The “1–3-6–9” action plan was implemented in the zone according to the planning.

158

3.1.3.1

3 The Bioeconomic Model

“1” is for the Major Positioning

The major positioning is the bioeconomy experimental zone. The term refers to the industrial development zone centered on the bioeconomic industry under the guidance of bioeconomic theories. No other industries are included within the zone.

3.1.3.2

“3” is for the Three Tribes

The three tribes are the genetic tribe, elite tribe, and financial tribe. The genetic tribe (also called the bioeconomic community) has the main characteristic of “enjoying the fruits of modern civilization and living a primitive lifestyle” and is the most beautiful home for humanity. The genetic tribe is also one of the ten bioeconomic models, which will be introduced in more detail in the follow-up content. The elite tribe is the talent community. Industrial development must rely on talented people. The introduction of talents must be preceded by the provision of necessary conditions. The elite tribe is a fine residential area developed for talents, providing them with comprehensive, personalized, and nanny-style life services. The goal is for them to work at ease and live a happy life so that they can contribute intellectual wisdom to the development of the bioeconomy experimental zone. The financial tribe is namely, a financial town. The bioeconomic, information, and manufacturing industries have significantly different industrial characteristics and require a large amount of capital. In an atmosphere where China’s current funding support for innovation is insufficient, the bioeconomy experimental zone must consider how to introduce large amounts of funds. The financial tribe is about building a financial town to realize the collection and flow of trillions of funds, creating a “Wall Street” of the global bioeconomic industry, to provide continuous financial support for the bioeconomy experimental zone, and to provide a rich source of funds for Hefei, and even Anhui and surrounding areas.

3.1.3.3

“6” is for the Six Parks

The pharmaceutical park: a park centered on pharmaceutical industries. The equipment park: a park centered on equipment industries, including the medical equipment industry. The agricultural park: an industrial park centered around cultivating new varieties, developing new agricultural technologies, and deep product processing. The triple-innovation park: a park for the purpose of innovation, entrepreneurship, and wealth creation. The environmental park: an industrial park centered around the environmental protection industry, including the environmental protection equipment industry. The Sinobioway park: a 5A-level national park with the theme of life sciences.

3.2 Big Industry

3.1.3.4

159

“9” is for the Nine Centers

The nine centers are mainly around the core content of the bioeconomic industry, aiming at the development of latest technologies and products, globally and actively introducing talents, creating world-famous “Silicon Valley” in biological high-tech. The nine centers are the New Drug Center, CAR-T Center, Stem Cell Center, Big Gene Center, Antibody Center, Health Center, Conference Center, Animal Center, and Center for Pharmaceutical Preparations. From the above plan, it can be seen that in the Hefei Bantang Bioeconomy Experimental Zone, considerations are given not only to hard facilities such as research and development (R&D) and industry but also soft foundations such as talents, finance, and sound living facilities. It is a small society that can operate independently, a small cell that can survive on its own, and an experimental area dedicated to promoting the development of the bioeconomic industry. Eventually, the goal is to achieve three major characteristics of the bioeconomy: achieving self-interest without harming others, relying on ecological and economic development, and enjoying life during work.

3.2 Big Industry 3.2.1 Basic Concepts Before understanding big industry, we must understand what industry is and the world’s definition of industry. Only on this basis can we understand big industries and the differences between big industries and industries.

3.2.1.1

The Industry

The word industry has different understandings on diverse occasions and language environments, and different dictionaries also have various interpretations. The Contemporary Chinese Dictionary and Xinhua Chinese Dictionary explain industry as 1) referring to land, houses, factories, and other properties, and 2) related to industrial production (used as an attribute). The Chinese Jurisprudence Dictionary explains it as follows: the broad industry classification of the material and nonmaterial production sectors in the national economic system, such as the classification of primary, secondary, tertiary industries, as well as the small industries under major ones, such as the division of the industry into coal, steel, petroleum, machinery, etc. The Dictionary of Market Economics and Encyclopedia of Entrepreneurs in the New Century also has the same explanation. The New Fiscal Dictionary divides industries into two categories. The broad concept generally refers to the collection of all

160

3 The Bioeconomic Model

those engaged in the production of material products and labor services. The narrow concept refers to the collection of production of material products. According to economic and social development, industry is the product of the continuous development of productive forces and the social division of labor. Although there are many types of handicraft production in a dominant natural economy, they cannot be called industries. Only under the conditions of mass production can each enterprise develop toward its own specialization direction, and an industrial cluster formed by interconnected production departments can be called an industry. Industries are often divided into primary, secondary, and tertiary industries, but there was no such division in the early stages of industrial development. The division of industries can be traced back to the 1920s. The International Labor Organization (ILO) divides a country’s industrial sectors into primary, secondary, and tertiary sectors to facilitate statistics and comparison. The ILO classification method is referred to by many countries when dividing industries. However, it was later found that this classification also had problems. In 1935, the New Zealand economist Allan George Barnard Fisher first developed the three-sector model. After that, British economist and statistician Colin G. Clark used the model to conduct a large number of empirical analyses of the relationship between the three-sector structure changes and economic development. The theory of the tertiary sector thus initially took shape in the West.2 At present, both developed capitalist countries and developing countries have adopted three-sector classifications for industry statistics. Although the division of the three industries is not exactly the same in all countries, agriculture is generally classified as the primary industry, manufacturing the secondary. All sectors and industries that can generate income other than the primary and secondary industries are included in the tertiary industry, such as transportation, communications, commerce, finance, professional services, education, health, literature and art, science, administration, national defense, and personal services. After studying and analyzing different definitions, the author puts forward the following views. The industry is the inevitable result of the continuous development of social productivity, the product of the social division of labor, and a collection of economic activities of enterprises with certain similar attributes. It will inevitably continue to improve; the intention will continue to enrich, and the extension will continue to expand.

3.2.1.2

The Big Industry

In the author’s view, the so-called big industry is an industry that is completely different from the current one. It is neither a combination and aggregate of small industries nor an industrial cluster. Specifically, the big industry refers to the one 2

Chen Peiwen and Cao Hengxuan: An Analysis of the Three-Sector Theory. Compilation of Materials of Special Subjects of The Chinese Society for Futures Studies, 2002.

3.2 Big Industry

161

formed through the integrated and coordinated development of primary, secondary, tertiary industries by taking the bioindustry as the core and applying modern sciences and technology to these bioindustries. To analyze the industrial pattern, the big industry is the one that combines all industries in the industrial chain. All industries have an industrial chain, and only when deployed on the entire industrial chain, with front-end raw materials, midend processing, and back-end services, can the so-called big industry be formed while holding an invincible position, thereby promoting the enterprises to become the industry leader. To facilitate understanding, a simple explanation could be made according to Fig. 3.2. As shown in this figure, the development of the bioeconomic industry has gone through three generations. The first generation is the bioindustry (BI1 ), including biomedicine, bioagriculture, bioservices, bioenergy, biointelligence, and other common bioindustry types. Bioindustries are currently being conducted in developed countries such as the United States, Germany, and the United Kingdom. From the perspective of the bioeconomic theory, this is the most basic and the lowestend bioeconomic industry, so BI1 represents it. The second-generation bioeconomic industry is a big industry (BI2 ). The big industry is formed through the integrated and coordinated development of primary, secondary, tertiary industries by taking the bioindustry as the core and applying modern sciences and technologies to these bioindustries. For example, the pharmaceutical industry of BI1 is limited to pharmaceutical manufacturing, but the pharmaceutical industry in big industries involves primary, secondary, and tertiary industries. As another example, the Chinese medicine industry involves primary medicine planting (planting of Chinese medicinal herbs), the secondary medicine processing industry (decoction pieces, formula granules, etc.), and the tertiary industry— medicine transportation and sales (Chinese medical diagnosis and treatment, drug prescription, etc.). This is clearly different from BI1 . At present, Sinobioway is engaged in the second-generation bioeconomic industry or otherwise a big industry. Without a doubt, the real bioeconomic industry is based on the big industry—that is, the third-generation bioeconomic industry (BI3 for short). It is formed through the integrated and coordinated development of big finance, big markets, and big industries by applying the bioeconomic model under the guidance of bioeconomic theories. In the following content, we will have a more detailed discussion of the bioeconomic industry and will not explain it here.

3.2.2 Theoretical Foundation The big industry proposed by the author is a model innovated under the guidance of bioeconomic theories centered on the life capital theory, and the theory of biological reconstruction of assets. During the development of big industries, the theory of biological reconstruction of assets must be applied to integrate the primary, secondary

162

3 The Bioeconomic Model

Fig. 3.2 The bioeconomic industry framework

and tertiary industries. Meanwhile, the concept of the life capital theory must be given full play to apply capital to provide the greatest benefits for humankind and use the power of capital to promote the development of the big industry.

3.2.3 Cases of the Big Industry The Tongdao big health industry demonstration zone (Fig. 3.3) locates in Tongdao County of Hunan Province. Tongdao County, as a poor mountainous area, has the urgent need of economic development. Sinobioway collaborated with the local government to build an big industry zone to develop health industry to improve social and economic development of Tongdao County. By 2040, the zone will be built into

3.2 Big Industry

163

Fig. 3.3 Design drawing of Tongdao Sinobioway Industrial Park, Hunan

an influential demonstration zone with relatively sound industrial facilities in China, incubating hundreds of major health-related projects, creating tens of billions of GDP, and providing more than 10,000 jobs (Hundred, Thousand, and Ten Thousand Talent Project). The specific planning idea is to build the Sinobioway Commune by following the dumbbell model of Sinobioway health management, focusing on the six major industries of medicine, pharmaceuticals, wellness, health, tourism, and food, relying on the beautiful ecological environment of Tongdao County, with the development of industries such as pharmaceutical manufacturing and health tourism, forest health and wellness, and healthy food as the key areas.

3.2.3.1

Medicine

Medical services are the center of the big health industry chain. The development of the medical service industry in the demonstration area should be centered around “developing a full range of health management services and building a full life cycle health management system; inheriting and developing traditional Chinese medicine and building a health service system with regional characteristics”.

Disease Diagnosis First, promote the application of modern diagnostic technologies such as biochemical diagnosis, immunodiagnosis, and molecular diagnosis in the fields of prenatal

164

3 The Bioeconomic Model

examination, diagnosis of major diseases, and detection of genetic diseases and accelerate the development of third-party clinical testing center services. The second is to promote the development of medical imaging information and cloud platforms and independent medical imaging centers and strengthen the acquisition, analysis, and processing of biomedical images to meet real-time, fast, accurate diagnosis and intraoperative precision treatment and other application needs.

Disease Treatment The first is to support the construction of large general hospitals and high-end specialty hospitals and support medical services for South Asia, Southeast Asia, and even the world. The second is to support social forces and fair hospitals to jointly establish a high-level and large-scale medical service consortium and support social forces to establish special medical institutions.

Disease Rehabilitation Support the construction of a rehabilitation service system integrating hospital, community, and home-based rehabilitation and provide rehabilitation guidance, rehabilitation care, and other services for the elderly with disabilities, the elderly, and patients with chronic diseases.

Health Information Service The first is to actively strive to introduce the National Health and Medical Big Data Center in the demonstration zone. Based on this, the construction of an interconnected population health information platform will be accelerated to form a basic database with residents’ electronic health and medical records and electronic prescriptions as the core to promote the development of a big health data industry. The second is to support the development and application of wearable physiological information monitoring and rehabilitation equipment with cloud services and artificial intelligence and integrate online and offline resources to guide medical institutions to carry out remote pathological diagnosis, imaging diagnosis, expert consultation, surgical guidance, and other medical services.

3.2.3.2

Pharmaceuticals

The pharmaceutical manufacturing industry is the core foundation for value added to the health industry. The development of the pharmaceutical industry in the demonstration area should aim at major products urgently needed by the public with high

3.2 Big Industry

165

technological content and large market size while carrying out imitation, OEM, research and development (R&D), and production.

Biological Drugs and Vaccines The first is to focus on R&D and the production of antibody drugs for tumors, immune system diseases, cardiovascular diseases, and infectious diseases and accelerate the development of new antibodies such as antibody-coupled drugs, bifunctional antibodies, and antibody fusion proteins. The second is to focus on the development and production of recombinant protein drugs, cytokines, and other products for diabetes, viral infections, tumors, and other diseases. The third is to focus on developing RNA interference drugs, gene therapy drugs, and cell therapy products such as stem cells and immune cells, including CAR-T and other cell therapy products. The fourth is to vigorously develop new vaccines such as polyvalent multivalent vaccines, genetically engineered vaccines, viral vector vaccines, and nucleic acid vaccines and to actively transform traditional vaccines and develop new adjuvants.

Chemical Drugs The first is to focus on the development of innovative drugs for diseases such as malignant tumors, cardiovascular and cerebrovascular diseases, diabetes, mental diseases, neurodegenerative diseases, viral infections, and other diseases. The second is to accelerate the development of generic drugs for clinically urgently needed drugs with new patent expirations and produce high-end generic drugs through the me-too or me-better method. The third is to focus on the development of new injection drug delivery systems such as liposomes, lipid microspheres, nanopreparations, rapid oral release, sustained and controlled release, multiparticulate systems, other oral modified release drug delivery systems, percutaneous and mucosal drug delivery systems, and dosage forms suitable for children and other special populations.

Traditional Chinese Medicine The first is to focus on the development of modern cultivation techniques of authentic medicinal herbs, build large-scale and standardized cultivation and processing bases of Chinese medicinal materials, develop large-scale and standardized cultivation of resources such as characteristic aromatic plants, and accelerate the development and utilization of wild plant resources. The second is to develop compound prescriptions, effective parts, and effective ingredients of traditional Chinese medicine new drugs for cardio-cerebrovascular diseases, gynecological and pediatric diseases, and gastroenterological diseases; for the marketed varieties, the approach is to use modern sciences and technologies to dig deeper into the clinical value and clarify the superior treatment field to develop new indications. The third is to speed up the secondary

166

3 The Bioeconomic Model

development of national medicines and famous prescriptions of traditional Chinese medicines and famous classic medicines and to actively introduce and purchase traditional Chinese medicine formula granule products across the country to create a gathering place for formula granules.

Medical Instruments The first is to, through independent R&D or license in, focus on the development of major products such as high-field strength superconducting magnetic resonance and specialist superconducting magnetic resonance imaging systems, high-end CT equipment, multimodal fusion molecular imaging equipment (PET-CT, PET-MRI), high-end color Doppler ultrasound and intravascular ultrasound, digital subtraction angiography X-ray machine (DSA), and high-definition electronic endoscope. The second is to improve the production level of core components, focusing on the development and introduction of CT bulbs, magnetic resonance superconducting magnets and RF coils, PET crystal detectors, ultrasonic single crystal probes, two-dimensional area array probes, and other new probes, X-ray flat panel detectors and three-chip endoscope camera systems. The third is to develop implantable intervention products and medical materials, including fully degradable coronary stents, heart valves, artificial joints and spine, cardiac pacemakers, cochlear implants, dental implants, ophthalmic intraocular lenses, functional dressings, and fast degradable hemostatic materials and pharmaceutical adhesives.

3.2.3.3

Wellness

Forest Health and Wellness The strategy is to, relying on the good forest vegetation of Tongdao, actively develop and utilize the functions of forest resources in governance, rehabilitation, health care, wellness, etc.; and relying on modern medicine, traditional medicine, healthy diet, etc., to develop medical and wellness, leisure and health care services, to create a batch of attractive forest therapy experience activity bases, building chronic disease towns, such as diabetes towns and high blood pressure towns.

Happy Senior Living The first is to support elderly care institutions to extend nursing services to communities and families, support the establishment and improvement of home care service outlets, and build integrated health monitoring and management service stations for the elderly, such as community “health huts”. The second is to promote the smart pension model, build a smart pension comprehensive service platform, and develop smart pension management software and other application products. The third is to

3.2 Big Industry

167

develop migratory bird-based health care and old-age care and build a complex aged care service agency covering medical rehabilitation, health care, and senior care.

Nurturing Mind is the Core of Nurturing Life The first is to develop ecological leisure resorts and develop several ecological leisure vacation bases with Tongdao characteristics. The second is to develop a hot spring resort base, provide a one-stop vacation life experience of vacation, leisure, business, conference, entertainment, socializing, and tourism, and advocate new concepts of hot springs and wellness, leisure, and health. The third is to develop the mindfulness and meditation industry, focusing on the in-depth development of meditation tour characteristic tourism products themed on zen mindfulness, meditation, leisure, and decompression.

3.2.3.4

Fitness

Sports Manufacturing The first is to focus on developing outdoor sports goods, equipment, and instruments, including the manufacturing of balls, sports equipment, accessories, training, and fitness equipment, sports protective equipment, sports clothing and shoes, and others. The second is to encourage and support the construction of a sports life cloud platform and sports e-commerce trading platform with the mobile Internet as the main body, promote the innovation of sports goods production technology and industrial upgrading, and develop and produce sports functional hardware.

Sports Service Industry The first is to develop a competition performance industry, support traditional sports games for ethnic minorities in local ethnic minority areas, and extensively carry out fitness activities that reflect ethnic minority characteristics. The second is to develop the venue service industry and build a number of unique projects. The third is developing the sports intermediary industry and economically introducing and cultivating a group of sports agents. The fourth is to build a sports training industry and carry out sports skill training (martial arts, chess, racing, Qigong, aviation, etc.) in various sports training institutions and special sports clubs. The fifth is to develop the sports media industry.

168

3 The Bioeconomic Model

Other Sports Industry The first is to focus on sports health services, including physical monitoring and wellness, scientific fitness conditioning, social sports instructor services, sports medicine, trauma hospitals, sports rehabilitation nursing home services, and Chinese medicine sports rehabilitation medical services. The second is to focus on sports lottery services, mainly including the management, issuance, and distribution of sports lotteries. The third is sports exhibition services, including sports goods, tourism, culture, other sports expositions, exhibitions or fairs, and sports museums and other services.

3.2.3.5

Tourism

In a broad sense, tourism refers to a series of related industries that provide services for tourists. It is a comprehensive industry that targets tourists, creates convenient conditions for tourist activities, and provides the services and commodities they need. Tourists’ tourism activities mainly include six aspects: food, accommodation, transportation, tourism, shopping, and entertainment. The related industries involved include catering, hotel, transportation, scenic spots, retail, and entertainment services.

Health Tourism Health tourism includes sports tourism, mountain outdoors, water sports tourism, automobile and motorcycle sports, aviation sports, Qigong health and wellness tourism, and sports events and ethnic characteristics events tourism. Traditional Chinese medicine (TCM) tourism includes TCM sightseeing, wellness experience, TCM rehabilitation, beauty care, TCM science education, and other tourist products. High-end medical tourism, including high-end experience, medical care, rehabilitation, wellness, medical beauty, antiaging, and other services.

Eco-Tourism While combining local characteristics, the idea is to develop ecotourism, including hot spring vacation, agricultural sightseeing, and life experience that integrate sightseeing, recreation, and leisure vacation.

Cultural Tourism In combination with local traditional, ethnic, and red culture, cultural experience products such as national cultural, traditional cultural, and red tourism could be developed.

3.2 Big Industry

3.2.3.6

169

Nutrition

Safe Food The first is to use new breeding techniques to develop new varieties of high-quality and high-yielding crops to improve the competitiveness of agricultural products. The second is to actively develop biofoods and organic foods grown strictly following the S-GAP norms while researching and developing organic pesticides to reduce pesticide residues and pollution in agricultural products and improve product quality. The third is to build a food traceability database, including information on food sources, ingredients, and processing manufacturers, to create a traceability system that connects production, inspection, supervision, and consumption from farmland to tables to improve the consumer confidence index.

Specialty Food Specialty food refers to foods with local characteristics. Creating local specialty food brands can play a role in promoting local tourism. The development of special foods is mainly promoted from the following three aspects: The first is to promote the local specialties of Dong Township such as mushrooms, black fungus, osmund, bamboo shoots, Gastrodia Tuber (Tianma), cured meat, and pickled fish in combination with tourism to create local characteristic agricultural products. The second is to build Tongdao’s brand of three treasures—millet, chili, and glass noodles—and the brand awareness of specialty agricultural products—Tongdao sweet potatoes. The third is to promote the cultivation of high-altitude thorn grapes and develop the wild mountain wine industry.

Healthy Food The scope of healthy food includes health food, food for a special medical purpose (hereinafter FSMP), and infant formula. The focus of the industry includes: R&D of several types of health foods, creating a leading position for the industrialization of health products and functional foods in China, actively promoting the development of FSMP, supporting enterprises to develop FSMP, to actively promote the development of Kadsura coccinea related industries using the existing Kadsura coccinea planting and production bases.

170

3 The Bioeconomic Model

3.3 The Bioeconomic Community3 3.3.1 Basic Concepts According to Western scholars, a commune mainly refers to the organization of medieval European self-governing towns. Although citizens in this organization have certain rights (including property and administrative rights), it is very common for them to support and help each other. It is an ancient utopia social prototype. The existence of communes was closely related to low levels of productivity and the underdeveloped economy and society. With underdeveloped productive forces and a lack of products, exacerbated by a harsh natural environment, everyone must help each other to ensure a basic life. At the time, the commune basically existed to overcome the nature challenges and guarantee production, but as the times changed, the term commune was gradually linked to social forms such as politics and governance.

3.3.1.1

The First Communal Practice

The first communal practice comes from Robert Owen (1771–1858), the famous promoter of utopian socialism. In 1799, Owen and the man who later became his father-in-law bought a large company in partnership and set up a New Lanark plant, with Owen as the manager. Through observation, Owen was determined to conduct experiments to reform unreasonable social conditions in his factory and had achieved success. In a short period of time, the company’s value had more than doubled and had always brought huge profits to business owners. Based on the experimental idea in New Lanark, Owen went to the United States in 1824 to establish the New Harmony commune, which implemented the principles of public ownership of production means, equal rights, and democratic management.4 This was the first practice of the commune. Although the fate of failure was inevitable, it provided a considerable reference for the subsequent socialist construction.

3.3.1.2

The Paris Commune and the People’s Communes

The Paris Commune and the People’s Commune are two familiar forms, and both are closely related to the class.

3

The bioeconomic community, Sinobioway Commune and the Genetic Tribe are different ways of expressions of the same idea in different periods and areas. 4 The Evolution of Economic Thought (Eighth Edition, Chinese Edition). Author: Brue S L, Grant R R. Translators: Di Xiaoyan et al. Beijing: Peking University Press, 2008.

3.3 The Bioeconomic Community

171

The Paris Commune The Paris Commune was a working-class regime established after the successful insurrection of the French National Guard on March 18, 1871. The French proletariat made a great attempt to overthrow the bourgeois rule and establish a proletarian regime. It was the greatest model of the proletarian movement of the nineteenth century.5 This was the first exploration in the world where armed violence by the proletariat directly seized urban power. It was the first exploration in the history of the world to overthrow the bourgeois rule and implement the dictatorship of the proletariat. As the first successful practice of Marx’s theory of breaking the state instrument, it played an immense demonstrative role in subsequent proletarian movements.6 Although it only went through a short 72 days (March 18 to May 28, 1871), its impact was significant. Going back further in time, the origin of the Paris Commune was related to the revolution in 1789. After the French Revolution overthrew the autocracy of the feudal monarchy, more than 44,000 urban resident autonomous organizations named communes were established in Paris and many other cities between 1792 and 1794.

The People’s Commune The People’s Commune is a great practice of the commune in China. It is a grassroots unit combining China’s socialist social structure and the paradigm of a nation composed of “workers, peasants, traders, scholars, and soldiers”. It is also a grassroots unit of a socialist organization, a production organization, and a grassroots government. The People’s Commune is also the product of the Party’s rectification movement, the general line of socialist construction, and the Great Leap Forward in socialist construction in 1958. China’s first people’s commune was established in Chayashan Town, Suiping County, Henan Province—the Chayashan Satellite People’s Commune. To solve the contradiction between water conservancy construction and the greening of barren hills in the winter of 1957 and spring of 1958, the high-level agricultural cooperatives in Chayashan District adopted a joint action of combining small cooperatives with large cooperatives and achieved remarkable results. The establishment of large cooperatives gradually became the topic of discussion. The majority of farmers and grassroots cadres also started to act, submitting determination letters and petitions. Preliminary statistics showed that the social teams wrote 1950 copies of determination letters, 148 blood letters, and 38,410 application letters.7 At the call of the Opinions on the Appropriate Merger of Small Agricultural Cooperatives into Big Communes, the Chayashan big commune came into being (called Satellite Collective 5

Huang Shuai: The birth of First International and the Paris Commune. Qiusuo, 2017. He Yitong: The Paris Commune in the Eyes of Karl Marx. Reform and Openning, 2014. 7 Yang Qiuyi: The past and present of China’s first people’s commune. ncnynm.com (Edition A), 2018. 6

172

3 The Bioeconomic Model

Farm at the beginning of the establishment of the big commune). On May 5th, Lou Benyao, the Risuiping County Party Committee secretary, reported to Vice-Premier Tan Zhenlin about the building the big commune. Tan was very supportive of this. Inspired by this, Lou asked the Suiping County Party Committee Office director to change the eight farms in the County into communes and change the Satellite Collective Farm to Chayashan Satellite People’s Commune following the instructions of Vice Premier Tan. After the establishment of the Chayashan Satellite People’s Commune, it was highly valued by Chairman Mao Zedong and leaders at all levels. Major media carried out publicity reports, its general regulations were also published throughout the country, and Chayashan Satellite People’s Commune became a model for national learning. On August 6, 1958, while inspecting Qiliying People’s Commune in Xinxiang, Henan, Mao praised, “It looks like people’s commune is a good name”. Subsequently, the Political Bureau of the CPC Central Committee discussed and passed the Resolution of the Central Committee of the Communist Party of China on the Establishment of People’s Communes in Rural Areas. The construction of the commune was pushed to a new high, and the people’s commune gradually developed not only in the countryside but also in cities.8 At the same time, the government also invested a large amount of money. Research shows that from 1959 to 1979, the state invested 12.5 billion yuan to support the People’s Commune.9 Looking back, the construction of the People’s Commune remains a utopia, an attempt to realize communism under the condition of low productivity; and because it denied the basic economic and objective laws, failure was inevitable.10 After the Third Plenary Session of the 11th Central Committee of the Party, the agricultural production responsibility system was represented by contracting production to households. The household responsibility system was rolled out across the country step by step. The People’s Commune came to lose its foundation for existence. In April 1981, the Xiangyang People’s Commune of Guanghan County, Sichuan Province, officially removed the People’s Commune sign and replaced it with one of the township government. With the incident as a mark, the People’s Commune began to withdraw from the stage of history gradually. On October 12, 1983, the central government issued the Notice on Separating Government Administration from Commune Management and Establishing Township Government, which proposed the goal of completing the separation of government administration from commune management and the establishment of township governments in all rural areas across the country by February 1985. Townships or towns eventually replaced the people’s communes.11 8

Ren Qingyin: The Historical Changes of China’s Urban People’s Commune. Literary Circles of CPC History, 2017, (16). 9 Wang Aiyun: Investments in support of People’s Commune from 1959 to 1979. Contemporary China History Studies, 2018, (4). 10 Gao Haiyan: Reanalysis of the reasons for the failure of the rural people’s commune movement. Journal of Ankang University, 2018, 30 (6). 11 Lin Yunhui and Gu Xunzhong: The Rapsody of People’s Communes. Zhengzhou: Henan People’s Press, 1995.

3.3 The Bioeconomic Community

173

The people’s commune movement was an attempt to explore the path of building socialism in China, but compared with the Paris Commune, the people’s commune has a greater impact. First, it takes a long time (up to 26 years), a whole generation of time; second, the people’s communes were more strictly controlled than the Paris Commune. On September 27, 1962, the Tenth Plenary Session of the Eighth Central Committee of the Communist Party of China adopted the Revised Draft of the Regulations on the Work of the Rural People’s Communes, which was deployed at the national level. Third, the scope is wide and extends to all of China. The people’s commune is an embryonic form of communism, and it must be realized based on the tangible and intangible guarantees of the “three highs”: highly developed productive forces, highly abundant social wealth, and a highly civilized society. However, due to historical limitations at that time, the people’s commune inevitably failed. On the other hand, however, the historical contribution of the people’s commune is indelible. The people’s commune provided an irreplaceable role in overcoming the situation in which agriculture was considerably backward and unable to complete the primitive accumulation in the early days of the founding of New China. Taking advantage of the commune’s organizational strength and institutional advantages, China implemented the “Strengthening the construction of farmland water conservancy infrastructure” strategy, built a large amount of such infrastructure, and successfully realized the process of relying on the accumulation of agriculture to achieve industrialization. However, it also brought great pain to the country. It ignored the objective laws of economic development, overstated the role of subjective will and efforts, and caused the spread of such “communist” errors as setting unrealistic production targets, issuing confusing instructions, and proneness to boasting and exaggeration. As a result, industrial and agricultural production was extremely damaged, the proportion of the national economy was severely out of balance, and people’s lives encountered serious difficulties. The painful lessons from the Paris Commune to the people’s commune have made commune a rather sensitive term to the world. However, in fact, both of them are the result of failures to find a suitable solution due to limitations in the degree of the development of productive forces.

3.3.1.3

Bioeconomic Community (Sinobioway Commune): An Ideal Home for Humans in the Future

Several attributes of human beings cannot be changed, one of which is the social attribute of human beings. This is related to the long-term cave dwelling of humans in the early period. During the process, people gradually formed the habit of helping and communicating with each other. Throughout long-term development and evolution, group living has become part of human nature. We often see and hear relative indifference and separation between people in modern society and the lack of mutual communication, but this does not mean that people do not want to communicate. Imagine that when you are in your familiar

174

3 The Bioeconomic Model

Fig. 3.4 The model of Sinobioway Commune

territory, gathering with friends, family, classmates, and other people familiar to you, do you feel very joyful and cheerful? Why does it happen? From a biological point of view, it is mainly because it suits human nature. Based on long-term observation and thinking of the economic society, the author has come to discover this problem and has conducted a systematic study, and finally reached the conclusion that the bioeconomic community (also known as Sinobioway Commune, or Gene Tribe) is an ideal community for China and even humans in the future. The author proposed this brand-new concept based on the study of the economy, society, and development history using his own bioeconomic theories (Fig. 3.4). The social state in the bioeconomic community can be described as follows. In this community, everyone can enjoy the fruits of modern civilization while living a primitive lifestyle. This should be an ideal home for humankind because accessing modern civilization is not very difficult in modern society. For example, one can generally benefit from the positive effects brought by modern information technology (of course, there are negative effects) wherever they go, as long as there is an Internet connection; one can also feel the influence brought by the Internet and TV, as well as the railway and automobiles; but it is rather difficult to find the lifestyle of a primitive tribe, where people expect to see green mountains and clear waters, blue sky and white clouds, and fresh air. In the present world, however, such an environment or an area is often very scarce.

3.3.2 Theoretical Foundation The Sinobioway Commune is not a utopia but instead has a profound theoretical foundation. It is an exploration of future social development under the guidance of

3.3 The Bioeconomic Community

175

the author’s bioeconomic theories. The core theoretical foundation is mainly the theories of socio-genology and the life capital theory. First, the construction of the Sinobioway Commune must be carried out under the guidance of socio-genology. The theory tells us that any reform must take the community as the basic unit. According to socio-genology—family is the code of society; organizations are the genes of society, and communities are the cells of society. We know that in any independent living body, neither codons nor genes may exist alone, and only the cells can survive in a suitable environment. The same is true of social reforms, mainly because the community has gathered tiny factors with multiple functions. These tiny factors interact to provide the materials and energy needed by the community to exist. For example, large agriculture, large industry, and technological innovation in the Sinobioway Commune are examples of small factors. The independent effects of these factors provide the basis for the existence of the Commune. Second, the life capital theory (i.e., capital controls the world; life determines capital; genes dominate life) provides operational ideas for the Sinobioway Commune. Although capital is ruthless, if used by kind people for the benefit of human society, it will also change from cruelty to friendship, thereby creating more wealth for society.

3.3.3 Planning of the Sinobioway Commune The author has also made plans for how to promote the establishment of the Sinobioway Commune. The development of the Commune occurs in three steps. Step 1, conduct land transfers based on general rules, after which farmers join the community for agricultural production. Step 2, the farmers are included as Commune members and are entitled to corresponding benefits; Step 3, provide the members with three guarantees: living, healthcare, and education. The following describes what Sinobioway Commune is and how to advance it according to local conditions—taking the Baoding Tongtianhe Sinobioway Commune planned by Sinobioway in Tang County, Hebei, as an example.

3.3.3.1

Basic Situation

Baoding Tongtianhe Sinobioway Commune is located in Shimen Township, Tang County, Baoding City, Hebei Province. The township has a planned area of 75.2 sq km, with 14 villages under its jurisdiction and a current population of 9,827.

176

3.3.3.2

3 The Bioeconomic Model

Core Concept

Production: make full use of tangible or intangible resources in rural areas, develop bioeconomic industries, and form a diversified economic structure and production space suitable for businesses. Life: equipped with excellent infrastructure and high-quality life, education, medical security, and services, it has a long historical and cultural tradition and livable living space. Ecology: pay attention to improving the ecological environment, protecting and exploring the ecological landscape of mountain villages and rural landscapes, idyllic scenery, clear waters and green mountains.

3.3.3.3

Development Goals

The goals are to promote the deep integration of the production villages and build the well-equipped Bethune Health Town marked by “From each according to his ability, to each according to his need”, by taking the big health industry as the core, the quinoa, peony, and Chinese herbal medicine planting industry as the foundation, the bioeconomic industry as the support, and the health and leisure tourism as the association.

The Communist Practice Community Marked by “From Each According to His Ability, to Each According to His Need”. The objective is to, through the development of the bioeconomic industry, ensure full employment of residents and provide a solid foundation for members to enjoy guarantees of living (the distribution of daily necessities on demand), medical care (high-level healthcare services), and education security (high-quality basic education).

Modern Bioeconomic Community Based on Bioeconomy The objective is to, relying on bioeconomy, create the existing state of enjoying the fruits of modern civilization and living a primitive lifestyle, to provide local residents, visiting tourists, and consumers with guarantees of various needs and to build a bioeconomic community shared by hosts and guests.

3.3 The Bioeconomic Community

3.3.3.4

177

Industrial Support

The Sinobioway Commune’s industrial system, centered on the big health industry, integrates the core industries of “medicine, pharmaceuticals, wellness, fitness, travel, and food” to provide the Commune with a solid industrial foundation.

Big Health The big health industry in Sinobioway Commue mainly includes three directions: health management, medical services, wellness and aged care. The direction of health management includes TCM medical care, health and aged care services, health checkups, and consultation management. The objective is to comprehensively develop expansion industries such as science, education and R&D, leisure tourism, recreation and sports, organic agriculture, and so on, and build a complex of health management service industries by taking health management as the core, with medicine, medical equipment, dietary supplement, sports and fitness as the support. Services are focused on medical services supported by biomedical industries such as pharmaceuticals, medical devices, food supplements, and health supplies. The objective is to develop scientific and technological R&D, leisure tourism, business exhibitions, and other expansion industries and build a medical service industry complex. The health and aged care is supported by high-end rehabilitation, medical equipment, TCM healthcare, etc. The objective is to develop comprehensive industries such as convalescence tourism and Chinese herbal medicine planting experience and build an industrial health and aged care complex.

Big Agriculture The big agricultural industry is mainly to build two industrial chains, the key industry and the peony industry, and realize the integration and development of the three industries of bioindustry planting, processing, and services. The oil peony planting industry has an area of 1428,000 sqm. A peony planting area mainly located along the Tongtian River (with Hejiazhuang Village as the core) is committed to building a demonstration base of industrialized peony planting with global influence. The Chinese herbal medicine planting industry has an area of 533,333 sqm. It is mainly located in the medicinal planting area at the junction of Yujiazhai Village and Hejiazhuang Village; it is designed to be a standardized medicinal herb industry base.

178

3 The Bioeconomic Model

Big Tourism The tourism industry in the Sinobioway Commue mainly includes forest and wellness, red tourism, and folklore tourism. Forests and wellness mainly rely on Damao Mountain National Forest Park. The objective is to make full use of the forest’s unique health and wellness performance with the awakening of health consciousness among the people to create a visiting experience that combines healing and travel. Red tourism is based on resources such as the historical place of the ShanxiChahar-Hebei Military Area Command in Hechazhuang Village and Bethune’s former residence to create a red tourist town that integrates cultural experience, waterfront leisure, and mountain forest vacation. Folklore tourism develops folklore tourism formats such as homestays and farmhouses and leisure and sightseeing tourism by giving full play to the local cultural characteristics of Yujiazhai Village and Hejiazhuang Village.

3.3.3.5

Supporting Measures

Build a Basic Education Inclusive Grade System In view of the current status, trends, and problems of the supply and demand of compulsory education in Hejiazhuang Village and Yujiazhai Village, we plan to build new high-standard Sinobioway schools with reference to the calculation of the schooling needs of employees’ children during the development of Sinobioway Commue. Standing from a long-term perspective, we plan to build an inclusive graded basic education system and create the Sinobioway basic education brand to form a certain regional influence and attractiveness.

Medical Service Supply Model and Allocation Plan On the whole, at the Sinobioway Commune, we will build an integrated, one-stop development model of “medical center + sports center + leisure center” to meet the comprehensive needs of medical tourism consumers while attracting high-end service institutions. The first is to build a new Sinobioway Commune Hospital, which serves as a medical center and provides basic medical services for members. The second is to build a health care college to provide health care education and training for Sinobioway Commune and society. The third is to build a Sinobioway vacation and therapeutic community to meet the needs of high-end people on vacation and therapy. The fourth is to design the pension service supply model and allocation plan and develop community and institutional elderly care.

3.4 The Good Healthcare Practice (GHP)

179

Community old-age care: mainly based on family-based old-age care and partially based on community old-age care. In terms of the former, it is mainly based on familysupport services and partially on institutional services, hence an elderly care model that combines various social forces. Institutional old-age care: providing concentrated living, life care, rehabilitation care, spiritual comfort, cultural entertainment, and other services for the elderly, with the disabled and semidisabled elderly as the main service targets.

3.4 The Good Healthcare Practice (GHP) 3.4.1 Basic Concepts 3.4.1.1

Health Management

Health management is a concept, a method, and a set of comprehensive service procedures. Its purpose is to enable patients and healthy people to have better health, restore health, and save money as much as possible to reduce medical expenses effectively. Therefore, many people think that the twenty-first century is the century of health management.12 According to the current understanding of academia and the industry, health management refers to preventing and controlling the occurrence and development of diseases, reducing medical expenses and improving the quality of life, the process and methods to carrying out health intervention, management, and education for individuals and groups to improve self-management awareness and capacity, and continuous intervention on health risk factors related to their lifestyle. For ordinary people, health management refers to the process of establishing an exclusive health file based on the results of health examinations, giving an assessment of health status, and proposing personalized health management plans in a targeted manner.

3.4.1.2

Development Process

From the perspective of development history, health management was first implemented in the United States, which is also the country with the most advanced health management technology. As early as 1929, the American Blue Cross and Blue Shield Insurance Company began to implement health management to manage the health of teachers and workers.13 In the 1950s, health management began to appear in the United States as an industry and discipline. In 1969, the US federal government 12

Lu Yu, Shang Hang and Gao Daifeng: The New Century: The Century of Health Management. Health News, December 2nd, 2003. 13 Kongstvedt P R. An Overview of Managed Care, The Essentials of Managed Health Care. 5th ed. Burlington: Jones & Bartlett Publishers, 2007.

180

3 The Bioeconomic Model

introduced a policy to incorporate health management into the national medical insurance plan. In 1973, the US government formally passed T he Health Maintenance Organization Act, granting a charter to health management organizations to set up checkpoints to restrict medical services to control rising medical expenditures. In 1978, the University of Michigan established a health management center to study lifestyle behavior and its impact on a person’s lifetime health, quality of life, vitality, and medical and health use. To date, in the United States, health management has penetrated everyone’s life, effectively controlling the occurrence and development of diseases, significantly reducing the probability of risks, and reducing the loss of medical insurance compensation. On the other hand, the initial plan for health management was mainly based on medical-related concepts with content limited to detection, warning, etc.; it was neither systematic nor comprehensive. However, with the continuous enrichment and development of actual business content, health management has gradually developed into a set of specialized system solutions and operating businesses, and professional health management companies that are different from traditional medical institutions such as hospitals have begun to appear as third-party service organizations and medical insurance institutions; they may provide systematic professional health management services directly to meet individual needs.

3.4.1.3

Core Content

The core of health management is to provide individuals with professional health management services such as health education, health assessment, health promotion, health tracking, health supervision, and medical supervision based on data on living habits, personal medical history, personal health checkups, etc., in conjunction with the development of modern medical technology. The population covered by health management includes sick people, subhealthy people, and healthy people. The core content includes three categories.14 The first is personal health information management. The core content is to use big data, artificial intelligence, the Internet, and other information technologies to collect and manage personal health information that can be used for health and disease risk assessment tracking and health behavior guidance and to track and monitor changes in personal health information. The second is the risk assessment of personal health and chronic diseases. After the collection of personal health information, systematic analysis of personal health is conducted with a disease risk assessment model established based on health information and laws, which accurately and effectively assesses the health status of the persons being assessed and the degree of risk of chronic diseases in the next few years, development trends and related risk factors so that they can accurately understand their health status and potential hidden dangers. 14

Wei Wei and Zhao Liang: Analysis of Modern Health Management Model. Health Economics Research, 2006, (5).

3.4 The Good Healthcare Practice (GHP)

181

The third is to establish a personal health plan. The core content is to provide healthy individuals with suggestions for further maintaining a healthy lifestyle based on personal health and chronic disease risk assessment. For individuals with subhealth, high risks, and diseases, personalized health guidance regarding different risk factors is implemented through the action plan and guidelines for personal health improvement.

3.4.1.4

The Main Characteristics of Health Management

Related textbooks tell us that health management has three characteristics.15 The first is to control health risk factors at the very core. Health risk factors include variable and invariable risk factors. The former are controllable factors that change through self-behavior, such as unreasonable diet, lack of exercise, smoking and drinking, and other bad lifestyles; the latter cannot be controlled by individuals, such as age, gender, and family history. The second is to involve primary, secondary, and tertiary prevention. Primary prevention aims to prevent disease or injury before it ever occurs. This is done by reducing exposures to hazards that cause disease or injury and increasing resistance to disease or injury. Secondary prevention aims at early detection and early treatment of the disease. This is done by detecting, diagnosing, and treating disease as early as possible to halt or slow its progress. Tertiary prevention aims at disease treatment and disability prevention. This can prevent disability, promote functional recovery, improve quality of life, extend lifespan, and reduce mortality. The third is that the service process is a circular operation cycle. The implementation aspects of health management include health monitoring (collecting personal health information of clients, which is a premise and basis for continuous implementation of health management), health assessment (predicting the risk of various diseases, which is the fundamental guarantee for the implementation of health management) and health intervention (helping clients act to control risk factors is the ultimate goal of implementing health management). The whole service process maintains the low-risk level by reducing the number and level of risk factors through these three continuous circulation operations.

3.4.1.5

Health Management in China

Since the concept of health management entered China in the 1990s, considerable progress has been made in terms of the disciplinary system, industrial practice, and personnel training. Health checkup institutions are growing at a rate of 25% per year. There are more than 600,000 nonmedical service organizations with leisure, beauty, health care, sports fitness and rehabilitation as the main health management services and more than 30 million employees. 15

Liang Wannian, Health Service Management. Beijing: People’s Health Press, 2008.

182

3 The Bioeconomic Model

However, due to the late entry of health management into China, compared with developed countries such as Europe, America, and Japan, China urgently needs to improve both in terms of business model and technical means. A theoretical framework has not formed, and there is a lack of support of a systematic and authoritative theory. There are no national standards on health assessment, identification or management. There are no unified health data management standards and specifications. Techniques, equipment and means on health assessment, maintenance and management are at varying levels. In addition, from a commercial point of view, there is not one institution with a scale and capacity to provide systematic and comprehensive health management services in the country. There are health management service organizations of varying quality, and the service market is in disorderly competition.

3.4.1.6

The Good Healthcare Practice (GHP)

From the above content, we can see that the health management practices currently being implemented in China are mainly based on the understanding of existing health concepts, which are neither systematic nor comprehensive. Based on long-term research and thinking, the author has proposed a new concept of health management, namely, good healthcare practice (GHP), concerning the management regulations (GLP,16 GCP,17 GMP,18 GSP19 ) implemented in the process of drug development, clinical trials, production, and sales. The core concept is to collect, detect, clean, organize, store, and monitor personal health information according to the established procedures around the entire life cycle of human beings and implement a full line and range of comprehensive, personalized, and nanny-style health services at a broad scale and long-term cycle to achieve personal health, longevity and wellness. 16

GLP, Good Laboratory Practice, is a quality system of management controls fornon-clinical research; it is a basic principle must be complied with in preclinical drug research. It covers a series of requirements of laboratories regarding safety evaluation in nonclinical drug research, such as experimental design, operation, recording, reporting, and supervision. It is the fundamental set of measures to improve the quality of new drug research from the source and ensure the safety of people’s drug use. 17 GCP, Good Clinical Practice, the quality management standard of clinical drug trials, is the standard provision that regulates the entire process of clinical drug trials. Its purpose is to ensure the clinical trial process is standardized, the results are scientific and reliable, and protect the rights and interests of the subjects and ensure their safety. 18 GMP, Good Manufacturing Practice, the quality management regulations for pharmaceutical production, is a set of mandatory standards applicable to pharmaceutical, food and other industries. It requires enterprises to meet sanitary quality requirements in terms of raw materials, personnel, facilities and equipment, production processes, packaging and transportation, quality control, etc. in accordance with relevant national laws and regulations, and form a set of operable operating specifications to help enterprises improve their hygienic environment and promptly determine existing problems to make according improvements. 19 GSP, Good Supply Practice, the quality management standards for pharmaceutical operations, is a management system developed in the process of drug circulation for planned procurement, purchase acceptance, storage, sales and after-sales service to ensure that the drugs meet the quality standards.

3.4 The Good Healthcare Practice (GHP)

183

3.4.2 Theoretical Basis The theoretical basis of GHP is the theory of information carrier of life and the theory of asymmetric management information. According to the theory of asymmetric management information, the author maintains that humans cannot achieve perfect self-management due to a lack of information. This means that humans must rely on external forces to achieve self-understanding and self-management, such as genetic testing and imaging. Based on the theory of information carrier of life, the author holds that life is the information carrier designed by the wise man, a form of expression in which the wise man stores the information needed on Earth. To ensure that the information is safe and reliable, the wise man has designed several forms of storage, including three major categories: plants, animals, and microorganisms, covering tens and thousands of types ranging from the simplest virus to the most complex human body, just as information carriers for humans range from the simplest USB flash disk to the most complex supercomputers. Since the human body is an information carrier, it is possible to draw references from information management methods for its management. According to the definition of informatics, information management20 is a social activity in which humans plan, organize, lead, and control information resources to effectively develop and use them by applying modern information technology. Simply put, information management refers to the management of information resources and information activities by people. It refers to the collective term for people to collect, process, and input and output information throughout the management process. The process of information management includes four steps: information collection, transmission, processing, and storage. From the perspective of disease management, we know that the occurrence, development, and risk factors for diseases, especially chronic noncommunicable diseases, can be intervened. This is because diseases do not occur suddenly but in a continuous process from a healthy state to low-risk, high-risk states, then early lesions, displaying clinical symptoms, and finally forming a disease. This takes a long time and is highly related to a person’s genetic factors, social and natural environmental factors, medical conditions, and personal lifestyle. The main means of health management is to identify the risk factors that may cause the diseases through systematic detection and evaluation, to block, delay or even reverse the disease, to achieve the effect of preventive intervention in advance and to maintain health.

20

Li Xingguo: Information Management Science. Beijing: Higher Education Press, 2007.

184

3 The Bioeconomic Model

3.4.3 The Planning and Design of the GHP Based on the process of information management and the concept of GHP, the author has designed the management system of life processes in three systems: life information acquisition system, life information management system, and life information monitoring system (Fig. 3.5).

3.4.3.1

Life Information Acquisition System

The life information acquisition system is mainly to discover and store information about life through methods and means of modern sciences and technology. According to the author’s design, the system consists of three parts as follows. First, clinical diagnosis techniques. Second, molecular diagnosis techniques, including genomics, proteomics, and metabolomics. Third, storage of information in carriers (permanent source of life information), aiming at storing healthy and complete information through checkups and building information databases (Fig. 3.6). The life information collection system starts from two aspects. The first is information carrier testing, including clinical diagnosis techniques and molecular diagnostic techniques. Clinical diagnosis techniques mainly include physical diagnosis, experimental diagnosis, and pathological diagnosis; molecular diagnosis techniques mainly include genomics, proteomics, and metabolomics. The second is the storage

Fig. 3.5 Diagram for the whole-life-process good healthcare practice (GHP)

3.4 The Good Healthcare Practice (GHP)

185

Fig. 3.6 Diagram of the life information acquisition system

of information. This is similar to the current management of information databases. By establishing a series of gene banks, cell banks, tissue banks, and body banks, all information is managed in accordance with the established arrangements.

3.4.3.2

Life Information Management System

The life information management system mainly provides a comprehensive, personalized, and nanny-style health management service for life information—that is, before, during, and after the disease (Fig. 3.7). Studies have shown that the health status of the population is distributed like a dumbbell—that is, the two ends of the dumbbell are before and after the disease (accounting for 85% of the population), and the disease state is the middle part of the dumbbell (accounting for 15% of the population). The life information management system should follow the dumbbell health management model. In other words, it is necessary to strengthen health management

186

3 The Bioeconomic Model

and services before and after the disease for most people (85% of the population) and establish a perfect health service system. The specific idea is that the diagnosis and treatment of diseases are mainly made by Western medicine, and the service institutions are mainly hospitals (there are more than 27,000 hospitals at all levels in China). While the health services of people before and after the disease are mainly provided with TCM, there has not been an institution established to provide health services for these two groups of people. Sinobioway will implement the “One Hundred Cities and Ten Thousand Stores” plan to establish a Sinobioway Community Health Chain Service Station in communities to provide health management services for people before and after illnesses.

Give Full Play to the Advantages of TCM and Do Well in Predisease Health Services—Treating Illness Before It Occurs In the medical community, it has become a consensus to strengthen predisease health services and shift forward strategic timing for treatment, but at the operational level, most believe that the treatment of a disease before it occurs is mainly done through physical examination and other means to find problems in the early stage. However, preventing diseases before they occur has always been the health concept of traditional Chinese medicine and should be the core of shifting forward strategic timing.

Fig. 3.7 The life information management system

3.4 The Good Healthcare Practice (GHP)

187

In TCM, there is the saying of “The supreme healer cures illness that is still obscure; The good healer cures illness that is about to break out; Fully manifested illness the least able tries to cure”. In other words, doctors with the best medical skills are not the ones who are good at curing diseases, but those who can prevent diseases. “Prevention involves three objectives: to prevent the occurrence of the illness, to prevent illness from worsening if it already occurs, and to prevent any chances of relapse after recovering from an illness”. The concept of a preventive approach to diseases has an important guiding role in health care, disease prevention, and treatment. The targets of TCM services can therefore be expanded to subhealthy and healthy people, and the service scope can be extended to aspects such as “medical treatment and prevention, wellness and healthcare, rehabilitation and prevention of worsening”.

Give Full Play to the Advantages of Western Medicine, Strengthen the Diagnosis and Treatment of Diseases Hospitalization remains the key. However, as the boundaries between wards and outpatient clinics become blurred and outpatient surgery begins to emerge, a new concept hospital system without wards will gradually emerge. Based on this concept, the hospital’s model has gradually changed. In addition, specialist hospitals have been developing particularly fast, displaying a trend of large specialist hospitals and small general hospitals. It has become a consensus to establish related disciplinary groups and create premium hospitals based on high-quality specialist brands. With the development of modern sciences and technology, translational medicine, academic centers, and modern medical centers around hospitals have become the goals of hospitals.

Give Full Play to the Advantages of TCM and Do Well in Rehabilitation Services After an Illness Postillness rehabilitation services are similar to what the medical profession calls backward shifting the strategic timing, mainly emphasizing posttreatment rehabilitation, embodying the concept of seven parts nurturing, three parts healing. This requires the unique advantages of TCM to be given full play in disease rehabilitation. In China, many people have focused on treatment and have not paid enough attention to rehabilitation. International attention to rehabilitation after treatment has received consensus from the medical community. Rehabilitation medicine as an emerging discipline is a new concept that appeared in the mid-twentieth century. Preventive medicine, health care medicine, and clinical medicine are the four major types of medicines. It is a discipline of medical science to eliminate and reduce human dysfunction, remedy and restore the loss of functions, to seek to improve and enhance all aspects of the human body, and a discipline of the prevention, diagnosis, evaluation, treatment, training, and treatment of medical disorders. Important content

188

3 The Bioeconomic Model

and means of modern rehabilitation medicine include exercise therapy, occupational therapy, speech therapy, etc.

3.4.3.3

Life Information Monitoring System

The life information monitoring system mainly conducts dynamic and 24/7 monitoring and intervention on life information. Specifically, the system aims to achieve timely intervention and management of important life information through the Internet of things in healthcare. For example, 24-h monitoring of health can be achieved through telemedicine, mobile health management equipment, etc., and realtime comparisons can be performed. Once relevant conditions are found, warning messages are issued immediately, and interventions are made through a series of arrangements. Sinobioway is building a life information monitoring system that integrates modern scientific and technological achievements, establishes the iHealth Internet of Things, and realizes online health monitoring. The online service system composed of the iHealth Internet of Things mainly includes three parts: life information sensors, Sinobioway health information processing system, and medical system + Internet (Fig. 3.8). The iHealth Internet of Things (online health service system) and the offline health service system complement each other to provide customers with high-quality, comprehensive, and fast health services. The iHealth Internet of Things operating model collects the human body’s main life information through life information sensors, transfers it to the Internet system, and transmits the data to the Sinobioway health information processing center. After personalized health information processing, the health service system is instructed to carry out online health services and on-site medical services to achieve 24/7 online health monitoring and management of the human body.

3.5 Forest and Wellness Forests have multiple functions, such as conserving water sources, releasing oxygen, and preventing soil erosion. They are valuable ecological resources but also fragile. Through a long-term thinking and exploration process, the author gradually formed how to combine forest resources and health and formed a Sinobioway forest wellness model of unique features to better protect forest resources and transform ecological resources into economic resources.

3.5 Forest and Wellness

189

Fig. 3.8 The Internet of Things in healthcare

3.5.1 Basic Concepts Forest wellness is based on the forest ecological environment, forest landscape, and forest culture, with theories and technologies on forest medicine, modern health management, healing, and rehabilitation as the core. By integrating advanced medical technology, information technology, and health insurance services and focusing on maintaining health and preventing disease, we aim to provide comprehensive, personalized, and nanny-style health management, convalescence and rehabilitation, and health and wellness services for people.21 The idea of forest wellness cannot be separated from understanding the basic functions of forests, and researching what wellness is and how to achieve it. Returning 21

Deng Sanlong: Theoretical Research and Practice of Forest Healthcare. World Forestry Research, 2016 (6).

190

3 The Bioeconomic Model

to nature, walking into the forest, cultivating the body and mind, and maintaining and protecting health are the basic functional elements of forest wellness. Sinobioway’s forest wellness is a brand-new model. It is characterized by the integration of good health management practices (GHPs) under the guidance of the bioeconomic theory. It is aimed at turning the forest into the best place for health management and the forest resources into mountains of gold and silver. The proposal of forest wellness comes from humans’ scientific understanding of forests. For example, negative oxygen ions in the air, known as “air vitamins”, can degrade and neutralize harmful gases in the air, regulate the body’s physiological functions, eliminate fatigue, improve sleep, prevent respiratory diseases, improve cardiovascular and cerebrovascular diseases, lower blood pressure, and enhance human appetite and skin elasticity. The World Health Organization has announced that more than 1000 negative oxygen ions per cm3 are beneficial to the human body. Forests are the main source of negative oxygen ions, in which the concentration of ions can be up to 10,000–20,000. In the Outline for Promoting the Construction of Ecological Civilization (2013–2020) issued by the Chinese State Forestry and Grassland Administration in September 2013, the content of negative oxygen ions in the air was listed as an important indicator in building a liveable ecological civilization for the people.

3.5.1.1

Origin and Development

Forest wellness is an international trend and is called forest medical treatment or forest therapy abroad. This is mainly because the forest is known as the last original ecology in the world that has not been polluted or destroyed by human civilization and is also the only natural hospital where humans can perform certain self-rehabilitation without resorting to artificial medical means.22 Since the establishment of the world’s first forest bathing base in the town of Bart Willishorn in the 1840s, the international community and governments have attached great importance to the maintenance and promotion effects of an excellent forest environment on human health. In 1982, the Japanese Forestry Agency first proposed incorporating forest bathing into a healthy lifestyle. In 2004, the Forest Wellness Society was established to start evidence-based research on the forest environment and human health. In 2007, the Japanese Society of Forest Medicine was formed, and the world’s first certification system of forest wellness bases was established. As of 2013, Japan certified a total of 57 forest therapy bases, of which there were three types, and nearly 800 million people visited the base for forest bathing every year. South Korea began to propose the construction of natural healing forests in 1982, and in 1995, research on forest utilization and human health effects started. To date, South Korea has established nearly 400 natural recreation forests, forest baths, and

22

Sun Baopu: Forest Healthcare—the new business activity of the big health industry. Business Culture, 2015, (22): 82–83.

3.5 Forest and Wellness

191

forest therapy bases and has formulated complete forest therapy base standards, forest therapy service personnel qualification certification, and training systems. Since 2011, the United States Federal Government has assembled a major outdoor strategy implemented by eight forestry-based agencies, which has played an important part in boosting the US economy and increasing employment. Currently, 1/8 of the average annual income per person in the United States is used for forest therapy.

3.5.1.2

Industry Model

The forest maintenance industry in certain foreign countries started early and developed rapidly, their theoretical research and industrial system increasingly improved, and several representative development models have gradually been formed, namely, the German model of forest medical treatment, the American model of forest healthcare, and the Japanese model of forest bathing.23 In Germany, forest wellness is called forest therapy, which focuses on medical health recovery and health care, forming several industrial groups of international influence, such as highland forest orthopedic hospitals. At the same time, the development of the forest health care industry has greatly stimulated the market’s demand for professional talent. For talent such as health and wellness guides and therapists, there is much room for market demand. American forest wellness places attract tourists by providing innovative and varied supporting services, as well as in-depth sports and wellness experiences, and can realize the comprehensive wellness and vacation function that integrates tourism, sports, and wellness. Meanwhile, the United States also publicizes forest wellness information and promotes forest health products through various channels. Forest wellness in Japan originated in 1982. It started with forest bathing and developed rapidly. Hundreds of millions of people take forest baths at forest wellness bases every year. To promote forest wellness, Japan has formulated a set of scientific, comprehensive, and unified criteria for forest base selection and has established the Japanese Society of Forest Medicine. At present, Japan has become the country with most advanced and scientific forest health efficacy measurement technology globally.

3.5.1.3

Status-Quo in China

The first year of China’s forest wellness could be 2013. In the year, the Recommendations on Vigorously Promoting Green Supply was submitted to the National People’s Congress by Deng Sanlong, the director of the Forestry Department of Hunan Province, for the first time as a representative of the National People’s Congress, proposing to develop the forest wellness industry vigorously. In the same year, with the support of Director Deng, Hunan Province initiated forest wellness-related work. 23

Zhang Shengjun: Development and Enlightenment of Forest Healthcare Abroad. Chinese Social Sciences Today, 2015–5-16 (007).

192

3 The Bioeconomic Model

The Hunan Forestry Department, Sinobioway, and Xiangya Hospital established the country’s first forest wellness base—Hunan Forestry Forest Wellness Center—at the Experimental Forest Farm of the Hunan Academy of Forestry Sciences. They also formulated China’s first provincial government forest wellness plan, titled Hunan Provincial Forest Wellness Development Plan (2016–2025), approved and issued by the Hunan Provincial Government. According to the existing literature, the attention of Chinese academic circles on forest wellness may have emerged in 2015. At cnki.net—China National Knowledge Infrastructure, China Knowledge Network, most comprehensive database for Chinese literature in Mainland China, a search with the keyword forest wellness found a total of 237 records as of March 7, 2019, the earliest of which was Forest Wellness is a New Business Pattern and New Engine under the New Normal 24 by Sun Baopu published in 2015. From the perspective of industrial development, driven by Hunan Province, other Chinese Provinces and cities have also started a small-scale exploration.25 Beijing is building several forest wellness demonstration areas; Sichuan province is exploring the construction of a Eurasian forest wellness platform of international cooperation and exchange by strengthening the international cooperation and exchange in the area, drawing on the experience and practices of leading countries well in the certification and management of forest wellness bases; Yichun City, Heilongjiang province is planning to develop forest wellness and build a forest summer resort and recreation industry; Suining county in Hunan province plans to adopt a three-step strategy to build a forest health and economic development system featuring “a clear platform, a distinct layout and focused development” integrating tourism, vacation, wellness, and sports. However, overall, forest wellness in China is still in the exploration and trial stage. The industry is also in its infancy and lags behind in planning, suffering from a lack of service facilities, insufficient policy support and policy elements, and limited social capital input. Wellness activities undertaken at the moment largely remain a sensual experience, and commercial activities have not fully unfolded. It is far from forming a scale and economic effect and has no clear understanding of future development.

3.5.1.4

Sinobioway Forest and Wellness

The forest health and wellness industry belongs to the health and wellness service industry as a subcategory and an emerging industry in the service industry. With its powerful vitality, it can have a strong driving effect on the development of many upstream and downstream industries. This is an important reason why the author

24

Sun Baopu: Forest healthcare is a new business activity and new engine under the new normal. Business Culture, 2015, (19). 25 Chen Lianhuan: Research on the development strategy of China’s forest healthcare industry. 2015.

3.5 Forest and Wellness

193

attaches great importance to forest wellness and why Sinobioway conducts in-depth thinking and practice in the forest wellness industry. The author proposes, based on his understanding of the meaning and extension of the concept, that forest wellness must rely on four pillars: unique forest ecological environment, colorful forest landscape, pollution-free and safe forest food, and distinctive and featured forest culture, and focus on three major services: health management, healing and therapy, and healthcare for the elderly, to achieve the ultimate goal of nurturing health and preventing diseases, and create a new brand of the ecological health industry. This is the core idea of the 3.0 edition of forest wellness proposed by the author. Forest wellness has gone through three stages until now: forest wellness 1.0, forest wellness 2.0, and forest wellness 3.0 (Fig. 3.9).

Forest Wellness 1.0 Forest wellness 1.0 is at the preliminary stage, with the introduction of tourism into forests as the central element. The American forest wellness model and Japanese forest bathing model are the main models.

Forest Wellness 2.0 Forest wellness 2.0 is formed by adding the content of health and wellness based on Forest wellness 1.0. The core is to undertake a series of activities beneficial to human

Fig. 3.9 Sinobioway forest wellness model

194

3 The Bioeconomic Model

physical and mental health, such as forest wellness, therapy, and recreation, relying on high-quality forest resources and organically combining medicine and the science of health maintenance. The main models include carrying out health management through precise health inspections; undertaking forest wellness through an ecological approach in disease prevention; undertaking forest-based rehabilitation through a natural approach of disease rehabilitation; undertaking forest therapy through an ecological approach in disease treatment; undertaking forest food therapy through the scientific way of maintaining health by healthy eating.

Forest Wellness 3.0 Forest wellness 3.0 is the new stage that the Sinobioway group has been practicing, formed by adding the content of bioeconomy based on the 2.0 version, with the gene tribe tourism edition as the main form of manifestation. In a broad sense, the Sinobioway forest wellness model includes the gene tribe rural edition (the bioeconomic community or Sinobioway Commune) and the elderly edition (the happy senior living community), apart from the gene tribe tourism edition. Under the model, the Sinobioway bioeconomic community, as the prototype of communism, will provide members with living guarantees allocated according to needs, premium medical security, and assurance of education quality. The Sinobioway happy senior living community will follow the idea of “old age for capital and capital for guarantee” and provide seniors with living, medical and service guarantees.

3.5.2 Theoretical Foundation The existence of forests provides a colorful ecological landscape, a high quality oxygen-enriched environment, and healthy and delicious food. However, due to a lack of awareness and understanding of forests, the damage to forests has increased. Based on research and analysis of the topic, the author holds that forests are the most precious resources to humans. Their development and utilization should be built based on protection to realize the balance between conservation and development, creating benefits. Otherwise, conservation alone cannot bring benefits or serve as a long-term strategy, hence unsustainable. Therefore, he proposed the new thinking of forest wellness based on the bioeconomic theories. Bioeconomy has three characteristics: realizing self-interests without harming others, relying on the environment for economic development, and enjoying life while working. However, how to develop the bioeconomy in forest? The author understands the bioeconomy as one developed based on biotechnological products with the R&D and application of life sciences and biotechnologicall research as the foundation. Consequently, to truly achieve the goal of relying on the environment for economic development and realize the perfect balance among forests, production, and life, we must vigorously explore the application of life sciences and biotechnology,

3.6 Bioeconomy Incubators

195

actively develop a series of biotech products and combine the advantages of forests with health and wellness.

3.5.3 Design and Planning Currently, Sinobioway is building demonstration bases of forest wellness in Tongdao county, Huaihua City, Hunan province, and Gubeiyue, Baoding City, Hebei Province.The bases have focused on the layout of three key industrial areas: forest medicine, forest fitness and sports, and forest health and wellness. Following the concept of socio-genology, to maintain the independent survival of the base, a closed-loop health management model has been followed in the base, focusing on health conditioning (including nutrition intervention), health checkup, mobile health management, medical exercise rehabilitation, genetic testing, expert consultation, international medical services, etc., to carry out the exploration of forest rehabilitation construction model and operation management model, and talent training. At present, equipped with first-class forest health services such as sleep centers, health check-up centers, sports health rehabilitation centers, forest health nutrition centers, forest health technology exchange centers, and the center for translational cell medicine, the forest wellness base can provide comprehensive, personalized, nanny-style forest health and wellness services.

3.6 Bioeconomy Incubators 3.6.1 Basic Concept The incubator originally meant equipment for artificially incubating poultry eggs, later extended to the economic field. It specifically refers to an organization that provides funding, management, resources, planning, and other support for small businesses or early-stage enterprises to help companies grow smoothly. In essence, the role of business incubators is to provide entrepreneurs with the necessary resources and services to accelerate the business support process for the successful development of start-ups and emerging companies.26

3.6.1.1

The Conception of Incubators

In terms of the history of the development of business incubators, incubators are developed with the rise of the revolution in the new technology industry to promote 26

Xie Yiwei and Chen Liang: Review of foreign business incubator research. Science of Science and Management of S. & T., 2010, (10).

196

3 The Bioeconomic Model

economic development and create jobs. The earliest iconic event was the establishment of the world’s first incubator by Joseph Mancuso in the United States in 1956.27 In the early days, incubators were mainly established by the government and universities. At the same time, there were some private enterprises or mixed incubators of the government, universities, and private companies. Business Incubator Profiles: A National Survey28 has clearly defined incubators and introduced the development of American incubators in detail. Incubators in the modern sense have gradually appeared.

3.6.1.2

The Practice in China

The earliest incubator in China appeared in 1987 and is the East Lake New Technology Entrepreneurship Center. The earliest incubator policy document was issued in 1994, Principle Opinions on the Work of China’s High-tech Entrepreneurship Service Center (No. 304 [1994] of the Ministry of Science and Technology). At present, China’s technology incubator has gone through 30 years and three stages of development, namely, exploring and supporting development, diversified integration development, and deepening radiation development.29 Three models have been formed. First, the public institution type, invested by the government and public institutions, and operated as a public institution. Second, the institutional enterprise type, with government and institution investment and enterprise operation. Third, the business incubator, which is an enterprise legal person, with shareholders investing capital, operates independently and assumes sole responsibility for its profits and losses. There are also two types of technology incubators formed in China. First, managed incubators, which provide office space, regular entrepreneurship training, project roadshow training, investor docking, etc. for first-time entrepreneurs or hightech and Internet entrepreneurs. Second, planning incubators, which provide enterprises with one-to-one consulting and capital services, etc. so that they could share the incubator’s resources such as capital, consulting and contacts by building an enterprise resource platform relying on large-scale consulting and planning companies and serving entrepreneurs with a certain economic foundation or various entrepreneurial experiences or traditional small and medium-sized enterprises (SMEs). To promote faster and better development of incubators, the Ministry of Science and Technology of China specifically issued the Technical Enterprise Incubator Certification and Management Measures (No. 680 [2010] of the Ministry of Science and Technology) in 2010, which proposed qualification conditions for national incubators and regulated the development of national incubators. 27

Liang Yunzhi and Si Chunlin: Research on Business Model of the Incubator: Theoretical Framework and Empirical Analysis. R&D Management Sponsor, 2010, 22 (1). 28 Temali M, Campbell C. Business Incubator Profiles: A National Survey. Minneapolis: University of Minnesota Humphrey Institute of Public Affairs, 1984. 29 Sun Qixin: Designated textbooks for the training of employees of science and technology business incubators. Torch High-Tech Industrial Development Center, Ministry of Science and Technology, 2016, 4–29.

3.6 Bioeconomy Incubators

197

Under the impetus of the state, China’s incubators are experiencing rapid development. Data show that as of the end of 2017, the number of incubators in the country had grown to 4069, 5739 group innovation spaces, and more than 500 accelerators. There are 175,000 incubating technology-based SMEs, and the total revenue of incubating enterprises is 632.347 billion yuan. A total of 111,000 companies graduated, and 11,000 high-tech enterprises were cultivated. An accumulated number of 40,000 companies have received assistance to obtain 194 billion yuan in venture capital, and 2777 companies became listed after graduation.30

3.6.1.3

The Future Model of Incubators

During a long-term process of exploration and practice, the author proposed the bioeconomy incubator in combination with the concept of bioeconomy. This is a kind of incubator built based on the ideas of bioeconomy, and it has a completely different handling and operational model. Based on the bioeconomic theories, the bioeconomy incubator is a new model created under the guidance of the theory of biological reconstruction of assets, and a kind of highly efficient and organic incubator. It can provide comprehensive, personalized, and nanny-style services for businesses receiving help from the incubator to achieve an all-win situation.

3.6.2 Theoretical Foundation The bioeconomy incubator is a new bioeconomic model created under the guidance of the theory of biological reconstruction of assets and the theory of asymmetric management information. The latter theory is easy to understand, as asymmetric information is involved in any kind of management, and there is no need for repetition here. Based on the theory of biological reconstruction of assets, there are three forms of economic (asset) reconstruction31 : mathematical, chemical, and biological reconstruction, in which the biological reconstruction has the highest efficiency and vitality, and it refers to reconstruction according to the principles of DNA recombination. The bioeconomy incubator is different from regular incubators in that it can provide comprehensive, personalized, and nanny-style services to the object of reconstruction to realize the new model of a full range of start-up services, similar to choosing fully furnished apartments (Fig. 3.10).

30

Capital Institute of Science and Technology Development Strategy (CISTDS), Torch High-Tech Industrial Development Center, Ministry of Science and Technology: China Business Incubation Development Report 2018. Beijing: Science and Technology Literature Press, 2018. 31 For detailed explanation, please refer to Section Seven, Chapter II of the book: The Theory of Biological Reconstruction of Assets.

198

3 The Bioeconomic Model

Fig. 3.10 The model of the bioeconomy incubator

Personalized services is the service system based on the characteristics of the project, the personnel, and the enterprise regarding the cooperation partner. Specifically, it is to proceed on a one-on-one, case-by-case basis, with special cases handled with special methods, to satisfy everyone’s individualized needs—animal needs, rational needs, and spiritual needs. Comprehensive services refer to providing all services needed by the partners, ranging from funding, research, and development, clinical trials, approval of new drugs, application for new drug certificates, to living through the incubator’s own infrastructure and construction. As for nanny-style services, taking drug innovation as an example, for an incubator, it is necessary to provide nanny-style services, such as capital, financing, and legal services, so that the assisted company can rest assured, stay relieved, and focused on its professional areas to ensure its healthy and smooth growth. This is because new drug development projects, talent, and enterprises remain in the early stage (equivalent to infancy), and it takes a long time to cultivate and nurture.

3.6.3 The New Drug R&D and Planning in Bioeconomy Incubators To promote new drug innovation, Sinobioway proposed, based on the ideas of the bioeconomy incubator, to build a brand-new high-efficiency new-drug R&D system, the new drug expressway (Fig. 3.11), and promote the establishment of “a broad source of projects”, “precise project selection” and “a completed service system”. A broad source of projects will be carried out by implementing three projects: Super Contract Research Organizations (S-CROs), featuring efficient integration of the world’s new drug R&D resources; the picking-upgold-on-beaches project, meaning accessing high-value projects at low costs, the main approaches including picking up valuable potential drugs from the valley of death of drug R&D, and by

Fig. 3.11 The new drug expressway

3.6 Bioeconomy Incubators 199

200

3 The Bioeconomic Model

working with the world-renowned venture capital funds, selecting from the projects they have negotiated but abandoned; the Yanhuang descendants project, for which specific approaches include setting up Global Chinese Biological or Pharmaceutical Association/Society Alliance, holding annual meetings and a World Bioeconomic Forum every year to collect and organize project information. Precise project selection is mainly to implement precision engineering. The specific approach is to train managers who can understand genes so that they have triple lens management—that is, a wide-angle lens, a microscope, and a telescope—to accurately screen the project and achieve a success rate of more than 80%. By applying the bioeconomy incubator, the completed service system creates a comprehensive, personalized, and nanny-style service for Sinobioway’s drug development service. According to the planning, Sinobioway has begun to establish three bioeconomy incubators located in Bantang, Hefei, Peking University Biopark at Xiamen, Tongtianhe, Baoding. It is expected that these incubators will be completed in 2030, which will promote Sinobioway to achieve the following goals: obtaining the approval of approximately 25 new drugs each year, reducing the average cost of each new drug development to less than 50 million US dollars, and shortening the development period of new drugs to approximately 8 years.

3.7 The Happy Senior Living Community The 2017 Revision of the World Population Prospects released by the United Nations estimates that the world’s population will reach 8.6 billion in 2030, 9.8 billion in 2050, and 11.2 billion in 2100. However, the number of aging populations has also increased significantly: the current global population of 60 years old and over is 962 million. It is estimated that by 2050, the population of this age group will reach 2.1 billion, and in 2100, it will reach 3.1 billion. At present, Japan’s population over 60 years old has accounted for 33% of its total population, 29% in Italy, and 28% in Portugal, Bulgaria, and Finland. The problem of aging is not just for now. Protecting the health and happiness of the elderly remains a severe test that we have to face.

3.7.1 The Basic Models of Senior Wellness 3.7.1.1

The Current Models

With the increase of aging populations, the governments of countries that entered the aging society sooner have made various explorations on how to solve the problem. Although the policies and measures adopted by governments vary among different countries, the idea advocated in the model of elderly care services is relatively consistent—that is, to provide good health services for the elderly.

3.7 The Happy Senior Living Community

201

France In France, a country with high-level social welfare, the aged care service industry is dominated by the home-based type, and a pay-as-you-go method is adopted in the oldage insurance system. In promoting the development of elderly care services, France has mainly taken the following effective measures: using preferential policies to guide market development; strengthening elderly care service development planning and personnel training; strengthening supervision and standardizing the elderly care service market; and giving play to enterprises in the elderly care service market.

Japan The Japanese aged care service model is largely based on family or relative care, supplemented by public welfare and socialized services. The main measures taken in Japan are establishing a community elderly service system, introducing a nursing care insurance system, promulgating and revising various laws and regulations, establishing a large professional team, conducting rigorous assessment, vigorously developing elderly education and setting up senior classes and universities.

The United States The government and society mainly bear old-age care in the United States. In 1981, family medical assistance and community service programs were launched. The measures adopted by the United States include adopting laws and regulations, encouraging social forces to establish old-age care institutions, implementing health care plans for the elderly, establishing generally applicable and preferential policies for the elderly, and building special elder care nursing homes, elder daycare centers and other policy measures to ensure the development of the old-age care service industry.

Sweden Sweden has established an inclusive cradle-to-grave social security system. The main measures taken in Sweden are implementing a high-welfare old-age security model, attaching importance to and encouraging the commercialization of elderly care institutions by establishing a community old-age service network, encouraging charitable organizations/nonprofit institutions to establish public welfare undertakings, etc., to give full play to social capital in the development of the eldercare service industry.

202

3 The Bioeconomic Model

The United Kingdom Local government organizations mainly manage the British social service system. The UK pays attention to the establishment and improvement of the supervision mechanism. The main effective measures taken are improving the evaluation mechanism and setting up service supervisors, guiding private or voluntary organizations to set up eldercare institutions, setting up nurseries and good neighborhood activities, providing people with free medical treatment at public expense and setting up specialized elderly hospitals.

Australia Australia has established an old-age security system in which employers and employees pay separately; it implements the Home and Community Care (HACC) Program to strengthen services centers on the family. In addition, the government allocates funds to service agencies by purchasing services, and service agencies must obtain funding through bidding and accept government supervision.

3.7.1.2

Existing Problems

The issue of old-age care is an important subject that the world is actively exploring. However, due to the lack of established ideas, there are considerable problems with various models of elder care, and it has become a major burden. Take China’s old-age care as an example. China attaches great importance to the development of the industry and has intensively issued a number of important documents that have provided clear regulations and instructions on old-age service standards, the opening of the old-age service market, the integration of medical and nursing care, and the construction of the old-age Internet. In March 2017, the State Council released the Thirteenth Five-Year National Development Plan for the Development of the Aged Care Cause and System, which proposed that by 2020, a multipillar, full-coverage, more equitable, and more sustainable social security system will be improved. The basic model is home care as the foundation, community care for support, institutions for supplementation, and combining medical care and nursing care. The domestic market of the aged care industry has developed rapidly. In 2016, the domestic market scale was approximately 5 trillion yuan. It is expected to reach 7.7 trillion yuan by 2020, with an average compound annual growth rate (CAGR) of 11.4%; in addition, it is expected to exceed 20 trillion yuan in 2030. However, compared with developed countries such as Europe and the United States, the problems faced by China’s old-age care are more serious. Details are as follows. The first is the huge number. It is predicted that by 2020, the number of disabled, older people in China will reach 42 million, the number of elderly people over

3.7 The Happy Senior Living Community

203

80 years old will reach 29 million, and the number of empty-nest and solitary elderly people will reach 118 million. This part of the elderly group is the focus of social attention and the key to solving the problem of old-age care. Empty-nest and solitary elderly people tend to need care for their lives and emotional companionship. On this basis, older seniors are more inclined to need medical care and hospice care. For the disabled elderly, the need focuses on professional medical and nursing care. The second is strong demand versus insufficient supply capacity. Compared with the huge potential demand in the elderly market, the supply capacity of the domestic aged care market has not matched it. In 2014, the number of beds per 1000 people in China for the elderly over the age of 60 was only 27.2, which was only 50% of the national standards. There remained a large gap, and there was a serious lack of social care institutions for the elderly. According to the State Council’s Several Opinions on Accelerating the Development of the Elderly Service Industry, by 2020, the number of elderly care beds per 1000 elderly people will increase to 35–45. However, by the end of 2015, 2.147 million elderly people were admitted. Only 637,000 were elderly people who were disabled or semidisabled, accounting for only 29.7% of the total number of people admitted. The number of nursing beds was still insufficient. The third is that the service system is far from enough to meet the demand. Relevant data from the fourth sample survey on the living conditions of the elderly in urban and rural areas in China show that in 2015, the nation’s disabled and semidisabled elderly accounted for 18.3% of the elderly population, and the elderly (80 years and older) accounted for 13.9%. However, China’s old-age care institutions still maintain the traditional pattern of securing basic life, focusing on the healthy elderly, and protecting the poor.

3.7.1.3

Happy Senior Living: The Sinobioway Model

The old-age care industry is not an isolated existence. Its various specific needs extend to the primary, secondary, and tertiary industries. It has become a superlarge industry integrating various demands: food, housing, transportation, travel, shopping, recreation, self-cultivation, learning, nursing, and healthcare. According to National Middle-aged and Elderly Network survey, 45% of the elderly in cities have savings deposits. The balance of the elderly deposits exceeded 1.7 trillion yuan in 2016, and the per capita deposits were nearly 80,000 yuan. It is estimated that by 2020, the total pension of the elderly will exceed 7 trillion yuan. At present, the consumer demand for the elderly healthcare industry in China is over 5 trillion yuan and will reach approximately 20 trillion in 2030. In addition, according to preliminary estimates, the products currently provided for the elderly’s well-being each year are between 500 and 700 billion yuan. The National Aging Working Committee General Office (National Aging Office) mentioned in a speech at the China Health Care Industry Development Forum that the scale of China’s elderly industry will reach 8 trillion yuan and 22 trillion yuan by 2020 and 2030, respectively, accounting for 6 and 8% of the GDP. The industry outlook is very favorable.

204

3 The Bioeconomic Model

There is currently no mature model for the Chinese old-age care industry. For making good use of the old age dividend, the author believes that the elderly should not be a burden but a wealth. To this end, the author proposes a new model of happiness for the elderly. This is a model of old-age care under the guidance of bioeconomic theories. Unlike ordinary models, its core is that the elderly can access high-level old-age care services without spending money. According to bioeconomic theories, the basic concept of happy old-age care is that life has value at every stage and needs value management. The Sinobioway design will change the concept of deeming the elderly a burden by establishing a health management system for life, a value-added management system for wealth, and a value management system for living. We know that blue and white porcelain is unable to sell at a supermarket, and the value can only be reflected if it is put in an antique shop. The same is true of the elderly. The elderly are equivalent to blue and white porcelain. If one only considers the issue of old-age care, they are the burden of society. However, if one considers how to make full use of all the resources of the elderly, and manage the value of all the resources in the hand of the elderly, they will not only refrain from being a burden but also become a treasure people scramble for.

3.7.2 Theoretical Foundation The happy old-age care model is not a castle in the air but an innovative model under the guidance of bioeconomic theories. The theoretical basis is mainly econogenology, the life capital theroy, and the theory of information carrier of life. According to the theory of information carrier of life, the existence of the elderly is objective, a design from the wise man. Since this is the case, the wise man will not waste his design, which means that every stage of life has its value; as Li Po’s (Li Bai) poem says, “Heaven has made our talents; we’re not made in vain”. In the same way, the aged should not be forgotten or abandoned but should be actively explored to find value in it. However, how can the objective existence of elderly individuals be transformed into kinetic energy to promote social and economic development? This requires the guidance of the life capital theory, using the basic idea: capital controls the world, life determines capital, and genes dominate life. The author holds that with regard to old-age care, an innovative financial model must be employed to invest capital into places to provide care and welfare for the elderly. Only in this way can the goal of happy old-age care be achieved. To this end, the author has designed a new model of old-age care: to implement the management of the three capitals of the elderly—assets, funds, and resources, to maximize the value of the elderly through the bioeconomic system, based on the new concept of old-age care: “old age for capital and capital for the guarantee”. In this way, the goal can be achieved: elderly people can access high quality old-age care services without additional cash consumption (Fig. 3.12).

3.7 The Happy Senior Living Community

205

Fig. 3.12 Diagram for the happy old-age care

3.7.3 Happy Old-Age Care Planning Currently, Sinobioway is building happy old-age care centers in Tongdao county, Huaihua City, Hunan Province, and Tang county, Baoding City, Hebei Province. They are mainly positioned as eldercare service institutions that combine research and teaching, focusing on the integrated medical and nursing care model. The core parts are as follows. The first is to build happy senior living communities while actively promoting multiple eldercare models, such as home-based care. The second is to develop comprehensive healthcare institutions that provide the elderly with high quality services featuring an integrated medical and nursing care model to promote the development of the high-end eldercare industry. In coordination with the development of happy senior living communities, the third is to set up elder care research institutes equipped with centers such as outpatient clinics, health management, rehabilitation, information, insurance service, and eldercare training.

206

3 The Bioeconomic Model

3.8 Super-Good Agricultural Practice (S-GAP) 3.8.1 Basic Concepts 3.8.1.1

The Good Agricultural Practice (GAP)

Good agricultural practice (GAP)32 is a set of operating standards for the production of primary agricultural products (including crop cultivation and animal breeding). It is an internationally effective measure to strengthen the quality and safety control of agricultural products from the source of production. It protects the quality and safety of agricultural products by strengthening the control of harmful substances and harmful microorganisms in the process of planting, breeding, harvesting, cleaning, packaging, storage, and transportation.

3.8.1.2

Basic Content

GAP’s roots began in 1997 as EUREPGAP,33 an initiative by retailers belonging to the Euro-Retailer Produce Working Group. Its members were originally European retailers and later expanded to global scope, including some developing countries. In October 1998, the United States Food and Drug Administration (FDA) and the United States Department of Agriculture (USDA) jointly issued the Guidance for Industry: Guide to Minimize Microbial Food Safety Hazards for Fresh Fruits and Vegetables, defining the concept of good agricultural practices. From the content point of view, good agricultural practices mainly involve agricultural production, such as field crop cultivation, fruit and vegetable cultivation, cattle and sheep breeding, pig breeding, poultry breeding, and livestock and poultry road transportation. They mainly include operating specifications for production water and agricultural water, good practices for the use of fertilizers, good pesticides, health and hygiene practices for workers, hygienic practices for packaging equipment, transport practices, and traceability practices. The purpose is to encourage the reduction of agricultural chemicals and medicines, pay attention to animal welfare, environmental protection, and the health, safety, and welfare of workers, and ensure the safety of primary agricultural products and production. Meanwhile, the specification has clear provisions for each detail. For example, soil regulations include increasing soil biological activities through appropriate soil management, supplementing soil organic matter and soil moisture, minimizing the loss of soil, nutrients, and agricultural chemicals to surface water or groundwater 32

Lu Zhenhui and Tian Xiaoming: Good Agricultural Practice and Certification: Cornerstone of Agricultural Product Safety Guarantee System. Hangzhou Agricultural Science and Technology, 2006, (2). 33 International Standardization Management Committee, Certification and Accreditation Administration of the People’s Republic of China (CNCA). Implementation Guidelines for Good Agricultural Practices (1). Beijing: Standards Press of China, 2006.

3.8 Super-Good Agricultural Practice (S-GAP)

207

through erosion, runoff, and leaching, improving the supply of water and nutrients and the absorption of plants, and maintaining and increasing soil productivity. Waterrelated regulations include methods to increase surface water permeability in small watersheds and minimize inefficient outflows, manage groundwater and soil moisture through proper use or avoid drainage when needed, improve soil structure and increase soil organic matter content, use production inputs, including organic, inorganic, and artificial wastes or recycled products in ways that avoid water pollution, arrange irrigation accurately by monitoring crop and soil moisture conditions, and prevent soil salinization by using water-saving measures and water recycling when possible, strengthen the function of hydrological cycles by establishing permanent vegetation or maintaining or restoring wetlands when needed, and manage water levels to prevent dewatering or excessive water accumulation, and provide sufficient, safe, and clean drinking water for livestock.

3.8.1.3

The Status-quo in China

In 2004, China launched research work on the China GAP certification project; in November 2005, China’s GAP certification (China GAP) series of standards was approved and announced: in January 2006, the Certification and Accreditation Administration of the People’s Republic of China (CNCA) announced the Implementation Rules for Good Agricultural Practices Certification (Trial) and jointly formulated a series of national GAP standards with relevant departments. The rules guide certification bodies to develop GAP certification activities for crops, fruits, vegetables, beef cattle, sheep, dairy cows, pigs, and poultry production; each standard contains general rules, control points, compliance specifications, checklists, and benchmark procedures. In January 2007, China issued the Notice on the Release of the First Batch of National GAP Pilot Projects and started the process of promoting GAP certification at the national level. At present, China has formulated a series of national standards in this respect. With the increasing understanding of the importance of GAP, the TCM planting industry has gradually incorporated it into the quality control system. In 2003, the Ministry of Health of China formulated and promulgated the Measures for the Inspection and Evaluation of Chinese Traditional Medicine GAP Production Pilot Certification. With an official control requirement for Chinese herbal medicine production organizations, a total of 152 bases passed the GAP certification of Chinese medicinal materials from 2014 to June 2019.34 However, with the development of the situation and the adjustment of China’s administrative management license, the state announced in 2016 that it would cancel the certification of the quality management norms for the production of traditional herbal medicine, leaving the quality management to the enterprise’s independent responsibility.

34

Research Institute of Traditional Chinese Medicine Industry. Planning and Analysis Report on 2014–2018 TCM GAP Base Development Model and Investment Strategy. 2018.

208

3.8.1.4

3 The Bioeconomic Model

Concept Extension: Super-Good Agricultural Practices (S-GAP)

As a management standard, GAP comprehensively lists the corresponding control points for different production models from the aspects of agricultural product quality and safety, ecological environment protection, employee health, safety and welfare, and animal welfare, and according to the extent of the impact on food safety, it is divided into primary, secondary and recommended control points. Whether this concept can be extended to other fields remains to be studied. In long-term research, thinking, and practice, the author expanded the concept of GAP and proposed the Super-Good Agricultural Practice (S-GAP) system. The core of S-GAP is to apply GAP to gene discovery-new variety cultivation-plantingprocessing-sales and other processes along the entire chain of agricultural production and expand the application field to the three aspects of grain crops, food crops, and the cultivation of Chinese medicinal herbs. Combined with the GAP certification system, S-GAP has the following three core views. The first is to expand the application field from the original agriculture to the three major fields of grain crops, food crops, and Chinese herbal medicine cultivation, and it is expected to expand to other agriculture-related fields in the future. The second is to extend the scope of application to the agricultural chain. SGAP covers the entire chain of breeding, seeding, planting, growing, gathering, and transportation. Among them, breeding practice is mainly to ensure breeding quality through new technologies such as biological breeding. Seeding practice provides a solid foundation for seed safety by establishing a germplasm repository. Planting practice is carried out through real-time and precise control with the big data system of the planting environment using data such as soil and fertilizer measurement, temperature, and environment. Growth control means that in the production process of crops, Internet technology must be used to implement Internet Plus to monitor the information in the growth process in real time. Gathering practice is done through the inspection of the national authoritative inspection department, and the product quality is authoritatively controlled; in the meantime, the product traceability system is established through big data and blockchain technology. Transportation practice controls quality through a professional logistics system. The third is also to manage the products entering the market stage, including market, distribution, and process of enterprise management, to ensure the safety of the entire process of food from the field to the table.

3.8.2 Theoretical Foundation S-GAP is an innovative model undertaken under the guidance of the theory of information carrier of life. According to the theory, any cultivated agricultural product is an information carrier designed by a wise man. Therefore, the information of

3.8 Super-Good Agricultural Practice (S-GAP)

209

Fig. 3.13 The super-good agricultural practices (S-GAP)

each stage, such as breeding, seeding, planting, growing, gathering, and transportation, should all be managed—that is, to implement GAP management of agricultural products. This is the so-called S-GAP system (Fig. 3.13).

3.8.3 Planning and Practice To explore the application of S-GAP, Sinobioway designed ginseng planting as an example. Data show that although ginseng is the most frequently used medicinal herb in GAP announcements, according to relevant literature, the planting area of ginseng that has passed the national GAP certification in Jilin province only accounts for 2% of the planting area in the Province, and it is difficult to find GAP certified ginseng herbs in the medicinal material market.35 To this end, Sinobioway established the first S-GAP demonstration base in the Lushui River Ecological Zone of Fusong County, Jilin province, with the S-GAP model as a guide, effectively breaking through the three major problems of insufficient effective ingredients, heavy agricultural residues, and excessive heavy metals. It has provided a demonstration for exploring and solving the standardized cultivation of Chinese medicinal materials and new ideas for developing an efficient and high-quality underforest economy.

35

Yang Guang, Guo Lanping, Zhou Xiuteng, et al.: Discussion on several key issues of Good Agricultural Practices (GAP) of traditional Chinese medicine. China Journal of Chinese Materia Medica, 2016, (4).

210

3 The Bioeconomic Model

3.9 The Biofinancial Supermarket 3.9.1 Basic Concept 3.9.1.1

Finance and Innovative Development

Finance is the core of the modern economy, technology is the primary productive force, financial innovation is the precursor of scientific and technological progress, and technological innovation and development are inseparable from the guarantee and support of finance. This has become a common understanding of all countries in the world. In particular, capital support will lead to the rapid rise of enterprises and industries in the current environment where capital controls the world. Without financial support, the development of an industry will be considerably restrained. However, in fact, China’s support for the financial industry is obviously insufficient, especially for innovative industries. Although the state has formulated many policies and has multiple funds and capitals in society, most of them support mature enterprises. After researching several places, the findings were concluded as follows. First, China’s technology credit financing faces more constraints because commercial banks tend to lend to low-risk, powerful state-owned enterprises and large private enterprises and are less enthusiastic about lending to technology SMEs.36 Second, direct financing channels need to be broadened. Technology-based SMEs are basically unable to raise funds on the main board market. The proportion of listed companies on the New Third Board is still low, and it is even more difficult for technologybased SMEs to become involved. Third, there is insufficient development of venture capital investment. For example, venture capital investment shows a trend of moving to later stages; venture capital/private equity investment (VC/PE) has the problems of functional alienation, behavioral speculation, and development bubbles and is reluctant to invest in innovative enterprises. Under the current situation, as for how the industry seeks financial support and how finance supports the industry, there remains the need to explore new models. At the annual meeting of the Financial Street Forum in 2018, Professor Lin Yifu put forward the idea of implementing different financial support for different types of industries,37 which caused extensive discussion: the latecomer industry can rely on their own funds, bank loans and can also issue corporate bonds, or carry out overseas mergers and acquisitions or the development of new technologies through the directional issue of shares; leading enterprises can conduct R&D of new products and new technologies with their own funds, or support the development of new products and technologies in an important field through the targeted issue of shares; the transitional industry usually requires its own funds, bank loans, and can also 36

Zeng Yanni, Yao Jiaying and Zhang Hao: Research on Financial Support for Technological Innovation Driven Development—Based on Comparative Analysis of Beijing, Shanghai, Chengdu and Hangzhou, Rural Finance Research, 2018. 37 Lin Yifu: Different types of industries require different approaches in innovation and financial support. http://www.cs.com.cn, 2018.

3.9 The Biofinancial Supermarket

211

obtain funds through listing; for enterprises that are taking shortcuts on a bend, their funds can be partly funded by the government, and partly by the angel capital, and risk capital. Professor Lin Yifu’s idea is correct, and the analysis is well made. However, in fact, how to provide support to different types of industries is considerably difficult and is hard to scale up under the current situation in China; for many private enterprises with poor profit, it is now difficult to obtain financial support and even more for many innovative companies to obtain support.

3.9.1.2

Biofinancial Supermarket: An Innovative Model of Financial Support for Industry Development

Biotechnology is a typical high-tech enterprise; it is the focus of world science and technology and the priority of enterprise and capital investment in developed countries. However, in China, the strength of fund support for the development of biotechnology is much lower than that of the information industry. This is mainly because the bioindustry can be characterized as three highs and one long: high input, high risks, high benefits, and long cycles. Taking medicine as an example, according to the statistics of Tufts University, the development of a new drug requires 15 years and 2.5 billion US dollars of investment, with a success rate of 1 in 10,000 from compound selection to a patent medicine. Based on this, although domestic funds are fairly interested in investing in medicine, the actual amount of input is far from enough to support new drug innovation. How can we effectively support the innovation of new drugs in China and solve this dilemma? In practice, the author put forward the concept of a biofinancial supermarket—that is, to provide capital needs for the development of various enterprises and industries using one-stop financial operations—and proposed implementing it through the construction of financial tribes. According to the author’s design, the biofinancial supermarket is an integrated operation method that covers a number of financial products and financial services, providing for enterprises or individual customers through organic integration of various financial products and financial services by coordinating and cooperating with financial institutions such as banks, securities, insurance, trusts and service institutions including auditing, evaluation, notarization, and guarantees. In this financial supermarket, each type of fund has its scope of support, forming a sequence of investments in the entire chain and finally achieving the entire launch through the listing. Being connected with the bioeconomy and the bioeconomic demonstration zone, the biofinancial supermarket will provide new sources of technologies and products and give precise selection, ensuring the success rate and the return on capital.

212

3 The Bioeconomic Model

3.9.2 Theoretical Foundation The theoretical basis of the biofinancial supermarket is the life capital theory, that is, capital controls the world, life determines capital, and genes dominate life. Under the current situation of capital taking profit as the first driving force, it is very difficult for capital to serve innovation for a long time because innovation faces huge uncertainty and a long innovation cycle. However, innovation also has the advantage of attracting capital, that is, once it succeeds, it makes huge profits. For this reason, the author believes that as long as high-quality innovation projects can be selected, they have the potential to attract capital and turn the depression of innovation capital into a highland. Since capital has many forms, each form of capital has a supporting focus. For this reason, biofinancial supermarkets must gather multiple types of capital together to create a docking platform for different types of projects, providing comprehensive, personalized, nanny-style financial services for different types of innovation and entrepreneurship.

3.9.3 Planning Design To promote the development of the biofinancial supermarket, Sinobioway strives to create the first biofinancial supermarket in the world under the author’s leadership. The following is the biofinancial supermarket plan that the author plans to design to support bioindustry innovation and build the world’s first biofinancial supermarket to support bioindustry innovation (Fig. 3.14).

Fig. 3.14 The biofinancial supermarket model proposed by the author

3.9 The Biofinancial Supermarket

3.9.3.1

213

Planning Concept

The overall concept is to integrate innovations in concepts, systems, technology, products, markets, and management; implement the strategy of Eco-Friendly Development, Financial Leadership, and Pioneering Experiments, while focusing on development in a public–private partnership (PPP) model of bioindustry projects, innovative development of health services combined with medical insurance, and bioindustry technology development, talent introduction, information consultation, and financial services, improve the financial system, enrich financial products, build an ecological leisure financial town that is livable, industry-friendly, health-friendly and touristfriendly, and promote the formation of a comprehensive business functional area integrating insurance innovation, industrial services, and financial business.

3.9.3.2

Main Layout

The biofinancial supermarket is mainly composed of four centers: the biofinancial center, bioinsurance innovation center, biofinancial service center, and research institute of bioeconomy finance. The biofinancial center provides the most abundant financial products and complete financial services for the bioindustry according to the characteristics of the bioeconomic industry. Based on the characteristics of each specific project, it provides the most suitable and efficient financial services, such as industrial funds, venture capital, bank financing, listing services, etc. The bioinsurance innovation center: Taking financial insurance as the core, develop related business functions as required by the development of the health industry, integrating service companies such as health insurance companies, medical financing institutions, and medical consulting institutions. Through the construction of various medical security systems, the center provides various services, such as health improvement, disease prevention, gene sequencing, and chronic disease management, to achieve value creation. The biofinancial service center: Provide personalized policy, market, and legal information consultation for the development of bioeconomic industries such as biomedicine, bioenergy, bioagriculture, bioenvironmental protection, and biointelligence manufacturing; provide data management, capital services, resource guarantee, equipment platforms, technical support, etc. for the operation of industrial projects; through the development of the modern service industry of the bioeconomic industry, the establishment of the bioeconomic industrial system will be promoted to build the world’s first global biofinancial service center. The research institute of bioeconomy finance: With the Biofinancial Institute as the carrier, various high-end forums, academic seminars, financial lectures related to private equity (hedge) funds, insurance innovation, etc. will be held regularly or irregularly around how finance can promote the development of the bioeconomy;

214

3 The Bioeconomic Model

meanwhile, various measures of finance to promote the development of the bioeconomic industry will be studied, and efforts will be made to build the world’s first research institute of bioeconomy finance.

3.9.3.3

Policy Support

The author has put forward policy measures that need to be strengthened upon research to promote biofinancial supermarket development.

Support Institutional Gathering Support well-known domestic and foreign private equity institutions and social capital, etc. to establish various types of private equity funds and professional management institutions; support conventional financial institutions to establish private equity legal person management institutions or business management headquarters in accordance with laws and regulations; and support global sovereign wealth funds, pension funds, endowment funds, etc. to invest in the financial tribe.

Support Business Innovation Actively promote private equity financial institutions to register with the national financial regulatory authorities and authorized management departments, and support their priority in obtaining private equity financial business qualifications; support private equity financial institutions to carry out direct equity investment in venture capital, start-up investment, private equity investment, industrial mergers and acquisitions, etc.; support private securities, venture capital funds, angel funds, mergers and acquisitions funds, hedge funds, special asset management plans and other business development; support conventional financial institutions and compliance trading venues with wealth management product innovation, and support high-end wealth management business; support in the financial tribes, the construction of a large asset management structure integrating multiple products such as investment funds, bank wealth management products, trust plans, special asset management plans, debt investment plans, and third-party wealth management.

Support the Development of Technology Finance Support the strengthening of technological and financial innovation and public policy innovation; support the “Venture Investment + Direct Bank Loan” model; support the establishment of credit incentives, risk compensation, investment, loan and insurance linkage, multiparty cooperation mechanism among banks, administrations, and enterprises to facilitate the efficient connection between technology and capital;

3.9 The Biofinancial Supermarket

215

support technology startups to introduce social capital, use multilevel capital markets for listing, going public and equity transfer, and build a new model of the effective connection between technology and capital with equity as a link; support the construction of a comprehensive assessment and dynamic adjustment mechanism for technology banks and technology insurance; support the continuous innovation of the business model of technology financial services.

Support Private Capital Development Support qualified private enterprises to initiate the establishment of private banks, financial leasing companies, consumer finance companies, and other new financial formats that are conducive to enhancing market functions; support private capital to initiate and participate in the formation of local financial organizations such as small loan companies, financing guarantee companies, financial leasing companies, etc.; support private capital to initiate participation in the establishment of venture capital funds, private equity funds, industrial funds, etc.

Support the Development of the Financial Leasing Industry Encourage the establishment of finance lease and financial lease companies; support finance lease and financial lease companies to develop large-scale equipment leasing businesses; support the finance lease industry to expand financing channels through cross-border RMB loans, equity financing, bond financing, etc.; support financial leasing businesses to set up innovation pilots; support the development of financial leasing products covering creditor’s rights and equity, on-site and off-site, standard and nonstandard elements, and the development of finance lease asset trading markets.

Support the Establishment of Foreign Institutions Support multinational companies to set up global or regional capital management centers; implement centralized operation management of foreign exchange funds at multinational company headquarters; support qualified foreign banks to set up subbranches, branches, franchised institutions, and Sino-foreign joint venture banks in financial tribes; support through pilots the broadening of the qualifications of shareholders, shareholding ratio, business scope and other restrictions of banks, securities, insurance, funds, and other financial institutions.

216

3 The Bioeconomic Model

Support the Development of Foreign Business Support enterprises to use RMB for settlement in cross-border trade, investment, and financing businesses, support banks to develop innovative cross-border RMB settlement and financing products to meet market needs; support banks and enterprises to handle RMB overseas lending business, and promote the international development of enterprises; support third-party payment institutions to obtain crossborder payment business qualifications; actively support financial tribes to strive for the support of higher-level regulatory authorities, promote the improvement of the RMB exchange rate marketization mechanism, enrich foreign exchange products, and expand the breadth and depth of the foreign exchange market.

Support Innovation in Foreign Exchange Management Support financial tribes to carry out pilot projects for the willingness settlement of foreign exchange capital of foreign-invested enterprises; support pilots for individual overseas direct investment, and support the financial tribes to conduct pilot projects for qualified domestic investors in overseas investment, including direct investment, securities investment, derivatives investment and other types of overseas investment businesses. Actively study the cross-border transactions of financial products such as funds, private equity, and trust products and expand the breadth and depth of domestic and foreign investments under the capital account.

Support the Development of Financial Intermediaries Support the establishment of professional intermediary service institutions such as accounting firms, auditor firms, law firms, asset appraisal agencies, investment consulting, capital and insurance brokers in the financial tribe; support relevant institutions to develop credit rating business, and support the establishment of national and regional wealth management social organizations.

Support Internet Finance Support financial institutions such as banks, securities, insurance, funds, trusts, and consumer finance to develop new products and services based on the Internet technology; support such services as online banking, online securities, online insurance, online fund sales, and online consumer finance services; Support Internet payment institutions, online lending platforms, equity crowdfunding financing platforms, and online financial product sales platforms; support e-commerce companies to establish and improve online financial service systems on their own in compliance with financial laws and regulations.

3.9 The Biofinancial Supermarket

217

Support Mutual Cooperation Among Financial Institutions Support and encourage banking financial institutions to provide support services such as fund custody and payment settlement for third-party payment institutions and online loan platforms; support cooperation between securities, funds, trusts, consumer finance, futures institutions, and Internet companies to broaden sales channels for financial products; support cooperation between insurance companies and Internet companies; and enhance the ability of Internet financial companies to resist risks.

Support the Construction of Credit Infrastructure Support infrastructure construction in technical fields such as big data storage, network, and information security maintenance; support qualified practitioners to apply for credit information business licenses according to law; support qualified intermediary credit organizations to carry out Internet enterprise credit ratings, enhance market information transparency; support intermediary service organizations such as accounting, auditing, legal, and consulting to provide relevant professional services for Internet companies.

Support Practitioners to Expand Financing Channels Support social capital to initiate the establishment of an Internet financial industry investment fund; support qualified high-quality practitioners for listing and financing on the domestic capital markets such as the Main Board and GEM; support banking financial institutions to provide support to early-stage practitioners following various financial policies to support the development of small and micro enterprises.

Support the Development of the Guarantee Industry Support the establishment of Chinese and foreign reinsurance institutions; support the establishment of new insurance organizations such as self-insurance companies and mutual insurance companies, and the establishment of professional insurance service agencies such as insurance brokers, insurance agents, risk assessment, loss adjustment, legal consulting and other professional services that provide supporting services for the development of the insurance industry.

218

3 The Bioeconomic Model

Support the Use of OTC (Over The-Counter Market) Equity Transactions Support all kinds of SMEs to list on the New Third Board and raise funds through targeted additional issuance; support the exploration and development of the countertrading market of securities companies; and assist in the construction of equity transfer and value discovery platforms for unlisted companies.

Support the Development of Bonds and Other Innovative Products Support the development of various bond markets, support the expansion of the issuance of financial products such as corporate bonds, company bonds, mediumterm notes, short-term financing bonds, private equity bonds, and the development of other fixed income, asset securitization, asset-backed notes, merger and acquisition bonds, and innovative products such as short-term financing bills and preferred shares.

3.10 The Biolab Supermarket 3.10.1 Basic Concept The biolab supermarket is a brand-new development concept the author has proposed in the industrial and corporate aspects in response to the various problems during the R&D process of life sciences and biotechnology. The purpose is to facilitate scientific researchers so that unnecessary waste of time can be reduced to accelerate innovation in scientific research. Based on the model of our ordinary large supermarkets, the basic approach is to provide scientific researchers with a large number of fidelity products, such as laboratory decoration, experimental consumables, and equipment procurement. Other hardware products, as well as software, will be used to assist laboratory operation management, personnel recruitment, external contact, etc., to provide a new model of comprehensive, personalized, nanny-style lab services for biological research and development, which scientific researchers can purchase as needed. This model is the biolab supermarket advocated and practiced by the author (Fig. 3.15).

3.10.2 Theoretical Foundation The guiding theory for the biolab supermarket is the theory of asymmetric management information. Anyone who has done research knows that only the researchers themselves know best the research being conducted, and only they know what

3.10 The Biolab Supermarket

219

Fig. 3.15 The biolab supermarket model

methods, means, and equipment they need. However, in actual laboratory construction, operation, and postmaintenance, the person in charge cannot be personally involved in everything, including the design, equipment selection, and installation of the laboratory, as well as various complicated chores such as postoperation, maintenance, and management. On the other hand, personal involvement will also waste the time of the person in charge. However, people who actually implement construction often have not done any scientific research and do not know how to keep up with the research demands. The knowledge gap between the two may lead to a deadly fault, which causes delays in scientific research and wastes time and money. To this end, Sinobioway proposed the concept of the biolab supermarket based on comprehensive research and analysis, proposed triple service systems (3S) for laboratory construction, laboratory operation, and biological scientists, and through their own accumulated experience, provided comprehensive, personalized, and nanny-style lab services for scientific experiments and scientists.

3.10.3 Basic Idea The core part of the biolab supermarket serves laboratory construction, laboratory operation, and biological scientists, i.e., the triple-S service system (Fig. 3.15). This first is to serve laboratory construction. The goal is to solve the necessary infrastructure construction for researchers through comprehensive, personalized, and nanny-style lab services to ensure that researchers can carry out experiments smoothly. The service content includes providing overall project management services according to the actual needs of customers, including project feasibility

220

3 The Bioeconomic Model

analysis, cost budget control, drafting tender content, supplier selection, construction management, laboratory certification, setting industry standards, etc., and overall engineering design. The overall engineering design includes workflow and management, home layout, water, electricity, gas, decoration, and instruments and consumables. The second is to serve laboratory operation. The services mainly include laboratory consumable management, laboratory equipment management, and overall laboratory management. As a researcher, laboratory consumables and laboratory equipment are the most time-consuming and painful and the most important part of maintaining daily research; the overall management of the laboratory, especially the management of laboratory personnel and water and electricity, and all matters not related to the core business can be managed with the laboratory supermarket by a professional team freely chosen by the person in charge of the research. The third is to serve scientists, in other words, services for humans. They mainly include customized laboratory services, laboratory information services, and laboratory communication and cooperation services for scientists. During the operation of the laboratory, researchers need customized services during the research. In the current situation, it is mostly arranged by the researchers themselves, which wastes considerable valuable time, is inefficient, and can be managed by dedicated personnel. In addition, laboratory information services and laboratory communication and cooperation arrangements can also be safely managed and arranged by dedicated personnel, which can free up much researchers’ time and enable them to concentrate on project innovation and valuable studies.

Chapter 4

The Bioeconomic Industry

4.1 The Basic Framework of the Bioeconomic Industry The bioeconomic industry is an new industry proposed by the author upon in-depth research. It consists of the three stages of the bioindustry, the big industry, and the bioeconomic industry (Fig. 4.1).

4.1.1 The Third Stage of the Bioeconomic Industry: The Bioeconomic Industry The bioeconomic industry is formed with the integrated and coordinated development of the big industry, the big market, and big finance by applying the bioeconomic models under the guidance of the bioeconomic theory (Fig. 4.2). The bioeconomic industry is different from the big industry and the bioindustry. It is the highest stage of the bioeconomic industry. Referring to the third-generation bioeconomy industry (BI3 ), it is the industrial pattern that Sinobioway has been planning and practicing.

4.1.2 The Second Stage of the Bioeconomy Industry: The Big Industry The big industry is at the core of the bioeconomic industry. The author proposed the concept of big industry, pointing out that so-called big industry is formed under the guidance of the bioeconomic theory. As indicated in the chapters above, it has three characteristics. First, it has the bioindustry as the leading force and the core. Second, it is formed through the application of modern science and technology into the bioindustry. Third, it features the integrated and coordinated development © Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_4

221

222

4 The Bioeconomic Industry

Fig. 4.1 The three stages of the bioeconomic industry

of the primary, secondary and tertiary industries. As a matter of fact, this is the industrial pattern that Sinobioway has been striving to put into practice during the past decade; it is a relatively higher-level industrial pattern called the second-generation bioeconomic industry, or the BI2 for short.

4.1.3 The First Stage of the Bioeconomic Industry: The Bioindustry The bioindustry is the key component of the big industry, mainly including the fields of biomedicine, bioagriculture, bioenergy, bioenvironment, bioservices, and biointelligent manufacturing. It is the industry that all countries in the world are

4.2 The Theories and Basic Principles of the Bioeconomic Industry

223

Fig. 4.2 The bioeconomic industry

pushing forward, as reflected in The National Bioeconomy Blueprint of the United States, The Bioeconomy Strategy of the European Union as a key industry of focus. Although the same term has been used in these countries’ planning—bioeconomic industry, it has a distinctive difference from the one the author has put forward. The so-called bioeconomic industry is, in fact, the bioindustry in the conventional sense, what the author refers to as the first-generation bioeconomic industry (BI1 ).

4.2 The Theories and Basic Principles of the Bioeconomic Industry The theoretical foundation of the bioeconomic industry is the theory of the information carrier of life, that is, life is the information carrier designed by the wise man. The basic principle of the bioeconomic industry is that the sun is the only source of energy for life on Earth and human activities. Based on this theory the human is a full information carrier. Therefore, the wise man has designed the basic condition for self-replication and accurate transmission for humans—to transform solar energy into energy sources for human activities on Earth through photosynthesis by using

224

4 The Bioeconomic Industry

Fig. 4.3 The theory and principle of the bioeconomic industry

solar energy. For instance, petroleum, coal, and natural gas are all forms of solar energy conversion designed by wise man over 200 million years ago (Fig. 4.3). On the other hand, the wise man has taken into full consideration of human evolution, advances in science and technology, and progress during the design. Concerning the three stages of human development—childhood, adolescence, and adulthood, human access and use of solar energy can also be divided into three stages (Fig. 4.3). The first stage corresponds to childhood. Accessing energy for human activities through direct use of products that have been formed by solar energy in the past. At the earliest, or the early period of human development (equivalent to the childhood of humans) when science and technology were underdeveloped, to guarantee productive activities and the existence of the information carriers, the wise man made the design of converting and storing the solar energy in the form that humans could directly use. For example, petroleum, coal and natural gas are all from solar energy. Petroleum is formed as a result of the compression and heating of ancient organic materials (marine animals and algae corpses) over a long period; coal is a kind of flammable sedimentary rock formed from deposition from the remains of aerial and terrestrial animals in lakes, overseas, shallow seas and other places, which are transformed by complex biochemical and physical-chemical effects; natural gas is a combustible gas stored in underground porous rock or petroleum, and its origin is similar to that of petroleum. The second stage is the adolescence period of humans. Human-transformed products provide energy for human activities. With the development of humans, humans

4.2 The Theories and Basic Principles of the Bioeconomic Industry

225

are currently entering adolescence, meaning they must be able to rely on themselves to transform solar energy into various forms of energy required by themselves through scientific and technological advances—in other words, to obtain solar power with wisdom and hard work. For instance, agriculture and forestry are achievements of human activities. Humans should gradually refrain from using naturally formed resources and turning to those transformed by humans during this stage. For example, humans should moderately seek new technologies, actively develop agriculture and forestry-related industries, and develop new energy substances—fuel ethanol, biodiesel, and other energy sources that humans need, such as new types of food. The third stage is the adulthood or postadulthood period, during which energy for human activities must be based on products produced by artificial organisms. At this stage, humans must start to use advanced science and technology. For example, humans build efficient biological photosynthetic organisms through synthetic biology technology, efficiently absorbing solar energy to provide energy for humans. In the future, humans will be able to create genetic energy—that is, by changing the genes of bacteria, the transformed bacteria will directly produce usable fuels, such as fuel ethanol and other liquid or solid energy sources, to reach the highest stage of the bioeconomic industry. In addition, genes can generate tremendous energy themselves, which is another form of genetic energy. In short, in the process of human development, the wise man has designed for humans a gradual transition to the stage of advanced use of solar energy rather than sticking to naturally existing energy. However, human beings are inert and unwilling to slowly explore and develop new energy sources in the presence of directly available energy. Once human beings are aware of the limitations of the future, they will begin to seek other models step by step, such as nuclear energy, but nuclear energy is not derived from the sun. According to the information carrier theory, bioenergy is the most in line with bioeconomic development. It should be the main energy source for human beings, whereas nuclear energy should not be the one for human use. The use of nuclear energy by humans is equivalent to theft. Once caught, humans will go to jail. This also shows that human development cannot rely on nuclear energy because once the world’s nuclear power plants simultaneously explode or other problems occur, humanity will lose its home. Today, the human race is about to enter adulthood, so we must help ourselves. We can obtain solar energy and convert it to various forms of energies that we can use. Agriculture and forestry can provide us with the energy we need. Bioeconomy is the best model for the conversion of solar energy to the forms of energies needed by human activities.

226

4 The Bioeconomic Industry

4.3 A Framework of the Statistics Index System of the Bioeconomic Industry Economic research must need both a theoretical model and data statistics to constitute a complete research system. For example, the indicators of macroeconomics include hard statistical indicators, such as GDP, GDP per capita, investment, consumption, exports, and value-added of the primary, secondary and tertiary industries; and some soft statistical indicators, such as various prosperity indexes, entrepreneur confidence index, consumer confidence index, etc. These indicators reflect the operation of the macroeconomy and provide data support for researchers to study the macroeconomy. The bioeconomic industry is a brand-new industrial form proposed by the author. To further measure the development of the industry, the author, by referring to the national economic industry classification (GB/T 4754-2017), proposed the initial framework of the bioeconomic indicator system (Table 4.1). Table 4.1 The framework of the bioeconomic indicator system First-level index

Second-level indexes

Third-level indexes

Implications

The bioeconomic industry

Biomedicine

Disease prevention

Health management, vaccine manufacturing, etc.

Disease diagnosis

Pharmaceutical and medical equipment industries and so on

Disease treatment

Medical service industry, etc.

The big industry

Agriculture, agricultural equipment, and agricultural service industry, etc.

New breeding technology

R&D of new agricultural technologies

Genetic research services

Genetic testing and related service industries

Life health supermarket

Self-directed healthcare industry

Bioagriculture

Bioservices

Biofinancial supermarket Proving financial services for bioindustry development Bioeconomy incubator

A dedicated industrial park for life sciences and biotechnology

Forest health & wellness Forest wellness, travel, therapy, and sports, etc. (continued)

4.3 A Framework of the Statistics Index System of the Bioeconomic Industry

227

Table 4.1 (continued) First-level index

Second-level indexes

Bioenergy

Bioenvironment

Third-level indexes

Implications

Biolab supermarket

Providing lab services for biotechnology and industrial R&D

Bio exhibition

Bioindustry related strategic displays and relevant activities

Bioinformation services

Providing specialized information consultation to promote bioindustry development

Protocol R&D

Contract research organizations (CROs), contract manufacturing organizations (CMO), etc.

Healthcare and elder care

Health management, medical cosmetology

Stem cells

Stem cell storage, medical cosmetology, anti-aging treatments

Healthcare for the elderly

Elder care industry

Reutilization of waste materials

Catering and reutilization of waste materials

Energy plants as raw materials

Bioenergy industry

Biofactory

Providing bioenergy equipment and infrastructure

Environmental governance

Providing technology, facilities, and services for environmental quality

Environmental protection

Providing technology, facilities, and services for environmental protection

Environmental operations

Providing such services as consultation and management and for environmental quality (continued)

228

4 The Bioeconomic Industry

Table 4.1 (continued) First-level index

Second-level indexes

Third-level indexes

Implications

Biointelligent manufacturing

Biointelligence

Providing technologies and equipments for intelligent services for bioindustry development

Cell factory

R&D and subsequent production related to cell engineering, etc.

AI robots

AI robot industry to serve human development

The proposed index system is certainly a system engineering project that needs to gather the wisdom of everyone. The index system proposed here is only the author’s own understanding to facilitate discussions of researchers.

Part II

The Practice Part

Chapter 5

Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

The author not only created the bioeconomic theory, the bioeconmic model, and the bioeconomic indurstry which jointly form the bioeconomic system, but also he has been making long-term exploration and practice of bioeconomy. Under the leadership of the author, Sinobioway has been dedicated to establishing the bioeconomy system and building a flagship company of the bioeconomy since its establishment three decades ago adhering to the concepts of “reinvigorating China through science and education, serving the country through industrial development, and strengthening the nation through healthcare.” It has three core strengths: an innovative economic system, a unique development philosophy, and a solid industrial foundation. During the process of China’s bioindustrial development, the company has made substantial pioneering and record-breaking efforts for the development of China’s bioindustry. It has made remarkable achievements in China as well as across the world. In particular, it initially created the first bioeconomy system globally (including bioeconomic theory, the bioeconomic model, and the bioeconomic industry). Sinobioway is the place of origin for the global bioeconomy. In the following text, the author will elaborate on the arduous explorations and practices that Sinobioway has made in the development of the bioeconomy.

5.1 The Significant Achievements Made by Sinobioway 5.1.1 Sinobioway is the Place of Origin for the Global Bioeconomy In 1992, Sinobioway started as a small company with only a few people and an office of just over ten square meters. After 30 years of persistent efforts, it has formed three core strengths of an innovative economic system, unique development philosophy, and a solid industrial foundation, accumulated a series of experiences in © Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_5

231

232

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.1 PKU biocity, the headquarters of the Sinobioway group located in Shangdi West Road, Haidian District, Beijing

the development of the bioindustry, preliminarily explored a path suitable for China’s bioindustry development, and through the establishment of the bioeconomic theory, model and industry, it has created the bioeconomic system, growing into a flagship enterprise of China’s modern bioindustry, one of the most potentially competitive company groups in China and the place of origin for global bioeconomy (Fig. 5.1).

5.1.1.1

The Recognition of Pan’s Bioeconomy in the World

The author was awarded the 2015 Pericles International Award as a recognition for his outstanding contributions in applying the ideas and approaches of life sciences and medicine in the study of social and economic issues as well as in the development of new drugs. Upon the invitation of the European Parliament, the author delivered a report titled Pan’s Bioeconomy: Theory and Practice at the European Parliament in Brussels on June 15th, 2016. The author received an interview from NEWEUROPE at the European Parliament in Brussels on the same day; on the 19th of the month, the report was featured in full in the newspaper titled The human being will enter the era of bioeconomy by 2020. The author received the 2019 award of LE RAGIONI DELLA NUOVA POLITICA (meaning THE REASONS FOR THE NEW POLICY) with the message as follows. “We will be honored to join many prominent figures to present the LE RAGIONI DELLA NUOVA POLITICA Award to Professor Pan Aihua, Chairman of the Sinobioway group, from the most important and prestigious biomedical industry in China. Professor Pan is one of the pioneers of the new Silk Road in the field of neuroscience. Professor Pan’s scientific research is constantly striving for excellence, and his achievements are remarkable. His industrialized biomedicine has brought a

5.1 The Significant Achievements Made by Sinobioway

233

huge social influence to China, encouraging generations of pharmaceutical R&D personnel. Like other awards he won at home and abroad, Professor Pan deserves the LE RAGIONI DELLA NUOVA POLITICA award.”

5.1.1.2

The Influence of Pan’s Bioeconomy in China

From 1995 to 2015, the author made hundreds of thematic reports on the bioeconomy at various conferences, forums, and government departments. He has actively advocated bioeconomy on a series of important occasions, including in the popular science report meeting of leading cadres in the party and government organs in Beijing in 2001, the Nobel Economic Forum in 2001, the Dialog program of CCTV in 2001, while chairing the first high-level international bioeconomic forum in 2005, the first China Bioindustry Conference in 2007, as well as China Economic Report, and an interview with People’s Daily Online, etc. This has been described in detail in the theory section.

5.1.2 The Establishment of the Bioeconomic System The author proposed the concept of bioeconomy in 1995 and published a paper on the bioeconomic theory in 2003. Under the guidance of the bioeconomic theory, the bioeconomic model has been created in practice. In addition, it has formed the bioeconomic industry by applying the model through an integrated and coordinated development of the big industry, the big market, and big finance. Mutually supplementary and organically integrated, the three aspects of bioeconomic theory, model, and industry together form a relatively sophisticated bioeconomic system. Sinobioway, which has developed under such a bioeconomic system, is an example of it. Relevant content has been described in detail in the theory section and will not be repeated here.

5.1.3 The Establishment of the First Bioeconomy Experimental Zone in the World Based on a study of human economic, social and developmental history, Sinobioway pioneered a unique operation model—the approach of bioeconomic development. In other words, it is to develop the bioeconomic industry using the bioeconomic model under the direction of Pan’s bioeconomic theory. By considering the needs of others and achieving one’s own interests without harming others, the approach helps develop the economy without sacrificing the environment and achieving a perfect combination of work and life, representing the highest level of an ideal state.

234

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.2 Bantang bioeconomy experimental zone

At present, Sinobioway has built the world’s first bioeconomy experimental zone in Hefei, Anhui—Bantang Bioeconomy Experimental Zone, which prioritizes carrying out the bioeconomy incubator model in new-drug development to address the three major issues in the conventional model of new-drug development—limited sources of projects, inaccurate project selection and an incomplete service system. Eventually, it aims to build a highly efficient new-drug R&D system (the New-drug Expressway) with three characteristics: broad sources of projects, precise project selection, and a completed service system. In the Bantang Bioeconomy Experimental Zone, the design of the building complex is ingenious and is composed of the uppercase English word ANTIBODY (Fig. 5.2). The molecular structure of human antibodies shapes the Y building. This is the first time in the world that the word ANTIBODY is written on the land.

5.1.4 Successful Operation of the First Modern Biomedicine Enterprise in China: Shenzhen Kexing Established in 1989, Shenzhen Kexing Bioproduct Co. Ltd. (Shenzhen Kexing) is China’s first modern biomedicine enterprise. By 1995, it had gone on the edge of bankruptcy for various reasons. Sinobioway took over the company completely on May 15th, 1995, and in a short period of five years, it managed to create several number ones in China and the world at large: China’s first officially approved genetically engineered drug, the first National 863 Program Industrialization Base, China GEM No. 001 (which was not listed because the GEM was not opened at the time), China’s most successful biopharmaceutical company, the company with the most complete genetically engineered drug products in the world (erythropoietin, granulocyte colony stimulating factor, insulin, interferon, and growth hormone) and China’s

5.1 The Significant Achievements Made by Sinobioway

235

largest genetic medicine industrial base—it has created the myth of China’s bioindustry and became a banner in the development of China’s modern bioindustry. With a forward-looking grasp of the development of the global economy and bioengineering and unique thinking, the author is known as a scientific-minded entrepreneur and a market-conscious scientist.

5.1.5 Sinobioway Created Remarkable Achievements in the Bioindustries in China and around the World Sinobioway made considerable pioneering efforts to advance China’s bioindustry and has obtained remarkable achievements, creating multiple number ones achievements in the bioindustry in China and the world. Apart from Shenzhen Kexing, Sinobioway medicine successfully developed and produced the world’s first therapeutic drug for nerve trauma—nerve growth factor, the world’s first prefilled interferon Alfaron, the only interferon spray Jaferon; Sinovac Biotech Ltd. (also known in China as Beijing Kexing Bioproducts, a subsidiary of Sinobioway) successfully developed China’s first inactivated hepatitis A vaccine and China’s first combined hepatitis A and B vaccine in 2001, the world’s first inactivated SARS virus vaccine in 2003, and China’s first bird flu vaccine for humans in 2008, and successfully developed and produced the world’s first H1N1 influenza vaccine in 2009, and the world’s first vaccine against hand, foot, and mouth disease (HFMD) in 2014; another subsidiary of Sinobioway, Sinobioway Tianren Pharmaceutical Co., Ltd.’s Tianqi Jiangtang capsule is the only pure Chinese hypoglycemic medicine recommended by both TCM guidelines and Western medicine guidelines (Fig. 5.3). Sinobioway agriculture became the first Chinese enterprise to have passed the Excellence Through Stewardship (ETS) certification in 2013 and successfully developed the world’s first intelligent sterile rice line.

5.1.6 Sinobioway Established a World-Level New Technology System for Crop Breeding It established the design technology for an intelligent rice sterile line and cultivated a new rice variety. First, it cultivated the new rice variety Sinobioway 33. Second, it successfully developed the design technology for an intelligent rice sterile line (Fig. 5.4). It is a new technology of hybrid seed production that involves full use of the sterile genes of crops and has three characteristics. It is a fundamental solution to the difficulty of hybrid seed production; it has improved crop quality; it marks another leap forward after the three-line, and two-line techniques for hybrid rice as hybrid seeds don’t contain modified genes and will realize the third green revolution in China’s crop seed production.

236

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.3 A list of drugs developed by Sinobioway

It developed the world-leading technologies for genetic improvement of rice Sinobioway Agriculture completed the world’s first rice-based gene chip and established the world’s largest rice activation-tagging mutant library and a rice-based genome molecular breeding platform collaborating with DuPont Pioneer. The platform is based on the detection of high-throughput molecular markers and through the accurate selection of chromosome fragments related to important agronomic traits in the whole genome of rice, which has realized the strategic transformation of rice breeding from empirical breeding to precise breeding and has achieved hundreds of high-stress-resistant strains and functional genes. Sinobioway agriculture has also obtained many leading technological achievements in China and the world and has applied for 85 invention patents, of which 51 have been authorized. It has established a mutant rice library that is the largest and the best in the world. Sinobioway Agriculture has successfully constructed a rice activation-tagging mutant library using transfer DNA (T-DNA) with 4 × 35S enhancer activation tagging and agrobacterium-mediated transformation technology. This library contains more than

5.1 The Significant Achievements Made by Sinobioway

237

Fig. 5.4 Design technology for an intelligent rice sterile line

200,000 mutants, covering more than 90% of rice genes and abundant phenotypes. It is currently the world’s largest and best-quality rice mutant library. It has established an integrated mutant screening and gene validation system under laboratory, greenhouse, and field conditions. Several high-throughput screening platforms under laboratory, greenhouse, and field conditions by the Sinobioway Agriculture actively innovate through optimizing experimental designs, standardizing operation procedures, and improving the facility. Biological statistical theory and models were applied to the experimental design and result analysis so that the whole screening system was more scientific and perfect. More than 150,000 lines were screened, and more than 200 trait genes related to drought tolerance, high nitrogen use efficiency, cold tolerance, insect resistance, and early flowering were discovered.

5.1.7 Sinobioway Has Developed Biointelligence Technology (Strong Artificial Intelligence) Sinobioway biointelligence technology (the core technology of fifth-generation computers) is at the top level of the world’s new generation of information technology. Important phase achievements have been made in the aspect. A scientific paper entitled The Fifth-Generation Computer and Its Cognitive Logic Methods was published in the first issue of Frontier Science in 2007; in 2010, Sinobioway obtained the invention patent granted by the National Intellectual Property Administration—a cognitive logic and its method of processing information (Patent No. ZL 2006 1 0054817.2; Certificate No. 656655); based on the globally leading intelligent computer core technology, Sinobioway has developed a human brain simulation

238

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.5 The Sinobioway biointelligence technology

cognitive logic engine, with which the company will develop a modeless database—a new generation of database software system, a new generation of computer programming language or “natural language,” and hardware system models for innovative cognitive logic intelligent computers such as chip design. On September 18, 2015, Science magazine introduced Sinobioway natural intelligence technology. At present, some reports that have been seen are only the subabilities of simulating human intelligence, and they have not reached the integrated logic capabilities of real human intelligence that we understand, such as decision making with knowledge and reasoning (also called strong AI) (Fig. 5.5). So-called artificial intelligence is largely a continuation of computational thinking rather than the human way of thinking. Sinobioway maintains that the best way to develop strong AI is to simulate the working principles of the human brain, which could be further referred to as natural intelligence (NI). NI attempts to realize functions only found in living organisms with computers—the deduction and reduction approaches of knowledge processing. In the more recent research, Sinobioway hopes to find a mathematical algorithm that is more approximate to processing knowledge in the brain so that future NI computers could be more resource-saving (time, power, and costs) while providing answers relevant to the content.

5.1.8 The National Gene Center Has been Built under the Direction of Sinobioway The National Gene Center is one of the seven major centers of the Hefei Comprehensive National Science Center, mainly built by Sinobioway and the Beijing Institute of Genomics, Chinese Academy of Sciences (Fig. 5.6). The three goals of the National Gene Center are to reveal the essence of life, discover the laws of life activities, and solve the six major problems facing humanity in population, health,

5.1 The Significant Achievements Made by Sinobioway

239

Fig. 5.6 The National Gene Center built by Sinobioway

food, environment, energy, and biosecurity. Applied research is mainly to actively develop the application of genes and other data using the big gene center platform and promote the large-scale application of new technologies, new methods, and new products, including fields such as precision medicine, precision breeding, new drug development, CAR-T, stem cells, and gene-editing technology. The formation of a gene industry cluster will drive the rapid development of China’s gene industry and gene-related industries. The Comprehensive National Science Center is a large-scale open research base built on advanced national major scientific and technological infrastructure clusters; it supports multidisciplinary, multifield, multitheme, and cross-cutting frontier research and represents the world’s advanced level of basic scientific research and major technology R&D. In January 2017, the National Development and Reform Commission (NDRC) and the Ministry of Science and Technology jointly approved the construction plan of the Hefei Comprehensive National Science Center. Hefei is the second comprehensive national science center officially approved by the state after Shanghai. In May 2017, Beijing was officially approved as the third comprehensive national science center, becoming an important force to participate in global scientific and technological competition and cooperation. The Hefei Comprehensive National Science Center involved the building of seven centers: (1) a superconducting nuclear fusion center; (2) a quantum center; (3) a heaven and earth integrative information network center; (4) a joint microelectronics center; (5) an ion medical center; (6) an innovation center for intelligent energy integration; and (7) a major gene center. The National Gene Center consists of four R&D buildings shaped like ATCG. Building A is the New Drug Center, Building T is the CART-T Center, Building C is the Stem Cell Center, and Building G is the Gene Center. The four R&D buildings and related supporting facilities total 100,000 m2 and were officially put into operation in June 2017. On October 23rd, 2015, Sinobioway and the Beijing Institute of Genomics (BIG) of the Chinese Academy of Sciences signed a contract to jointly build the Sinobioway-BIG Joint Gene Research Institute. BIG is the only research

240

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

institute specializing in genomics in the Chinese Academy of Sciences and an internationally leading original innovation research base for genomics. By introducing the high-level research team and advanced technology from BIG, the two parties have been jointly promoting a batch of precision medicine research to achieve clinical application, building a precision medicine database and a large-scale bioinformatics cloud platform for intelligent analysis of medical health data, and attracting top international talents to establish a laboratory jointly. Currently, they have established two Nobel Prize Workstations for Ferid Murad, the winner of the Nobel Prize in Medicine or Physiology in 1998 (whose work led to Viagra discovery), and George Smoot, the winner of the 2006 Nobel Prize in Physics (whose study has revealed embryonic structures in the baby universe).

5.1.9 Sinobioway is Building Three Sinobioway Bioindustrial Parks of 100 Billion Level To lay a solid industrial foundation for realizing Sinobioway’s strategic goals, Sinobioway has focused on constructing several 100 billion-level industrial parks since 2013. The 100 billion-level industrial parks that have been completed and are currently under construction (Fig. 5.7) include Hefei Bantang Biomedicine Industrial Park, Baoding Tongtian River Sinobioway Bioeconomic Industrial Park, and Tongdao Sinobioway Life Health Industrial Park. The total construction area of the three industrial parks’ production and medical premises exceeds 3 million m2 . It is planned to be completed and put into operation in 2025. There have been descriptions in the bioeconomic model section about the three industrial parks, and they will not be repeated here.

5.1.10 The Three Predictions Have Been Proved True With abundant knowledge and a unique thinking pattern, the author made three major predictions for the first time in the world in 1998 (Fig. 5.8). The one about the 2008 Beijing Olympics has been proved true, and the one that China’s GDP will overtake that of the US in 2020 has been preliminarily realized. As the tide of the bioeconomy spread across the world, there have been signs that humans would enter the era of the bioeconomy in 2020.

5.2 The Development Planning of Sinobioway

241

Fig. 5.7 The three 100-billion level Sinobioway Bioindustrial Parks

5.2 The Development Planning of Sinobioway Human exploration and research on nature are like a blind man touching an elephant, failing to see the world as it is. Modern science and technology can provide humanity with a comprehensive view of the world. The bioeconomy will provide a pair of eyes for humanity to understand the world: through the method of capital controlling the world, it hopes to realize the purpose of life-determining capital and prove the true meaning of genes dominating life. To this end, the author has led Sinobioway and formulated its future strategic goals, strategic thoughts, and strategic planning.

242

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.8 The three predictions made by the author

5.2.1 Strategic Goal The world has already had good practice in the development of the first-generation bioeconomic industry (BI1 ). Sinobioways are currently practicing the secondgeneration bioeconomic industry (BI2 ). However, it must be systematically designed and comprehensively considered for how to promote third-generation bioeconomic industry (BI3) development and how to promote human beings to enter the bioeconomy era faster. According to the author’s view point, humanity has entered the era of bioeconomy in 2020. To this end, the author proposed that Sinobioway’s development goal is to explore the way of the great rejuvenation of the Chinese nation, the way of world economic development and innovation, and the way of peace and sustainable development under the guidance of the bioeconomic theory (the “three explorations” for short) (Fig. 5.9).

5.2.2 Strategic Thoughts Through the method of capital controlling the world, Sinobioway hopes to realize the purpose of life-determining capital and prove the true meaning of genes dominating life (Fig. 5.10). The specific explanation is as follows. Under the guidance of the life capital theory, Sinobioeay will make full use of the nature of capital for profit, relying on its unique bioeconomic system in the world, guide capital to the bioeconomy, drive bioeconomic industry development, and achieve the goals of the bioeconomy advocated by the author. In addition, it hopes to achieve the living state of realizing self-interest without harming others, relying on ecological development of the economy, and enjoying life during work. In addition, it hopes to realize the

5.2 The Development Planning of Sinobioway

243

Fig. 5.9 Sinobioway’s strategic goal: three explorations

result that capital serves human health, longevity, and happiness under the guidance of the bioeconomic theory. Because in view of the bioeconomic theory, life is controlled by genes, and on the whole, the genetic differences between people are very small. Therefore, under the guidance of the bioeconomic theory, the true meaning of life will be revealed: equality of all should be the ultimate direction of future society.

Fig. 5.10 Sinobioway’s strategic thoughts: through the method of capital controlling the world, realizing the purpose of life-determining capital, and proving the true meaning of genes dominating life

244

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

5.2.3 Strategic Planning Focusing on the strategic goals of “three explorations” of Sinobioway and following the strategic thinking formulated by the life capital theory, Sinobioway’s strategic planning is to take one step leaving two footprints to realize the three dreams (Fig. 5.11). One step refers to the creation of the bioeconomic theory, and the two footprints refer to the bioeconomic model and the bioeconomic industry. The three big dreams refer to the creation of the bioeconomic system, solving the problems of agriculture, rural areas, and farmers in China, and solving health problems in China. The bioeconomic system has been creating by Sinobioway. The basic ideas for solving China’s three rural issues are solving food security issues through the development of new breeding techniques (storage of grain by technology), solving agricultural problems through the development of the bioeconomic industry, and solving the problems of rural areas and farmers through the establishment of the bioeconomic community (Sinobioway Commune). The basic idea for solving Chinese health problems is to establish a health product supply system through the development of the biomedical industry, establish a health service system with Chinese characteristics through the development of modern Chinese medicine, and establish a life health management system through the implementation of the GHP plan.

Fig. 5.11 Sinobioway’s strategic planning: take one step leaving two footprints to realize the three dreams

5.2 The Development Planning of Sinobioway

245

5.2.4 Solving China’s Health Problems: Sinobioway’s Big Health Industry Plan The World Health Organization (WHO) defines health as that a person is sound in the four aspects of physical health, mental health, social adaptation, health, and moral health. Among them, mental health and social health proposals break away from people’s one-sided understanding of health. Considering the natural attributes and the social attributes of humans, it is a powerful supplement and development of health under biomedical models. However, with the improvement of human knowledge, the author found that the current WHO health concept is still not comprehensive enough, and health should be three-dimensional and comprehensive. To this end, the author has proposed a new model of health after long-term thinking and pointed out that health should include three aspects: health refers to the health of the individual body, the health of the relationship between people, and the health of the relationship between humans and nature. The author has proposed the development ideas, realization paths, and main contents of China’s development of the health industry according to the bioeconomic theory and in combination with 30 years of practice, which mainly includes the following three aspects.

5.2.4.1

Establish a Health Product Supply System Through the Development of the Biomedicine Industry

Overall Planning Overall planning refers to building the three systems of pharmaceutical manufacturing, new drug R&D and product distribution, and building a completed supply system of health products. The specific steps are as follows. First, actively implement the new drug expressway, reduce investment in new drug research and development, and increase the number of new drugs; second, actively implement large-scale CDMOs; third, actively promote the construction of intelligent transportation systems and bases, and build a three-tier drug transportation logistics system of provincial— regional/city/prefecture/—County levels. The plan is to achieve the following goals by 2030. Sinobioway Medicine accounts for 10% of the total sales of the Chinese pharmaceutical market and 50% of the total sales of the biopharmaceutical market, and will obtain more than 25 new drug certificates each year through the new drug expressway. Sinobioway Medicine’s listed company (002581) will reach the market value of over one trillion yuan; and through international enterprise reorganization and mergers and acquisitions, Sinobioway Medicine will become the world’s largest pharmaceutical enterprise group (Fig. 5.12).

246

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.12 The 2030 goals of Sinobioway Medicine

Sinobioway Has Basic Conditions for the Development Sinobioway has been able to propose this plan because of a solid foundation. Its areas of factories that have been built or are under construction exceed 2 million m2 in cities such as Beijing, Hefei, Baoding, Xiamen, Shenzhen, Tianjin, and Changzhou. It plans to build a high-quality pharmaceutical production base with the largest scale and the most complete varieties in the world—building a factory of 5 million m2 that meets the Good Manufacturing Practices (GMP) of China, the US, the EU and the WHO by 2030. Shandong Sinobioway Biomedicine Public Limited Company Shandong Sinobioway Biomedicine Public Limited Company is an A-share public company listed on the Shenzhen Stock Exchange controlled by Sinobioway (Stock code: 002581). The company owns Sinobioway Biomedicine Co., Ltd. (Xiamen), Tianjin Sinobioway Biomedicine Co., Ltd., Beijing Sinovac Biotech Co., Ltd., Shandong Sinobioway Tianyuan Biotech Co., Ltd., and other subsidiary enterprises or production bases. Sinobioway biomedicine will focus on developing the drug manufacturing, new drug research and development, and product distribution and establishing a complete health product supply system. Sinobioway Biomedicine Co., Ltd. (Xiamen) Sinobioway Biomedicine Co., Ltd. was established in December 1998. It is the result of the cooperation between Peking University and Xiamen Municipal Government in biomedical science and technology, a demonstration project of national high-tech industrialization. The company is committed to the development of nerve growth factor series products, of which the first product is mouse nerve growth factor for injection (Nobex® ). The main projects currently under research are: (1) In-depth development of nerve growth factor (a total of 10 items); (2) A new class of drugs for the treatment of stroke—tereravine.

5.2 The Development Planning of Sinobioway

247

Beijing Sinovac Biotech Co., Ltd. Beijing Sinovac Biotech Co., Ltd. (hereafter referred to as Beijing Sinovac) was incorporated in the Beijing Zhongguancun National Independent Innovation Demonstration Zone in 2001 and is the only Chinese vaccine company listed in North America. Beijing Sinovac launched China’s first inactivated hepatitis A vaccine, China’s first and the world’s second combined hepatitis A and B vaccine, China’s first pandemic flu synchronized with the world Vaccine (avian influenza vaccine for human use), the only Chinese influenza virus split vaccine that does not contain preservatives and the world’s first H1N1 influenza vaccine and hand-foot-mouth disease (HFMD) vaccine. Beijing Sinovac has grown into a professional vaccine company with innovative R&D and industrialization experience and great potential for development. Beijing Sinovac’s mission is to “provide vaccines for the elimination of human diseases,” and the goal of “let Chinese children use world-class vaccines and world children use vaccines produced in China.” It has kept a leading role in the R&D of infectious disease vaccines and has built the world’s largest HFMD vaccine production base in Changping, Beijing, with an annual output of 30 million. The research and development of new vaccines for infectious diseases go hand in hand with international vaccine giants and have received global attention and wide recognition. Tianjin Sinobioway Biomedicine Co., Ltd. Tianjin Sinobioway Biomedicine Co., Ltd., established in 1992, is a leading enterprise in the industrialization of recombinant products in China. Located in the Tianjin Economic-Technological Development Area (TEDA). It has built modern interferon workshops that comply with international CGMP standards. The interferon stock solution produced complies with the European Pharmacopoeia standards and has the largest domestic production line of interferon lyophilized powder injections and precanned glass syringe injections composed of all imported equipment. Its main product Anferon (recombinant human interferon α2b injection), including injection and lyophilized powder injection, is currently available in 6 specifications. Anferon injection is independently developed by the company. Having overcome the technical problem of protein instability in aqueous solution, it has filled the gap in this field in China and is the first in the world to adopt an advanced precanned syringe packaging form, which can be used for direct injection. Anferon injection has independent intellectual property rights and has obtained invention patent authorization in many countries, such as Britain, France, and Germany. The company’s other product, Jaferon (recombinant human interferon α2b spray), can meet the needs of patients with viral skin diseases through noncontact quantitative administration. As one of the key enterprises of Sinobioway Biomedicine, Tianjin Sinobioway will focus on developing interferon series and upgrading products. The company’s vision is to make α interferon the “penicillin” in the antiviral market and allow Chinese people to use domestically produced, high-quality, and inexpensive antiviral drugs.

248

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Shenzhen Sinobioway Xinpeng Biomedicine Co., Ltd. Shenzhen Sinobioway Xinpeng Biomedicine Co., Ltd. was established in Shenzhen in 1992 as a high-tech biotechnology company upon approval by the National Science and Technology Commission. It is one of the earliest companies engaged in biopharmaceutical research and industrialization in China. The company’s main products are recombinant human granulocyte stimulating factor injection and recombinant human erythropoietin injection. Zhongshan Sinobiwoay Hygene Biomedicine Co., Ltd. Zhongshan Sinobiwoay Hygene Biomedicine Co., Ltd. was established in 2004. Located in the National Health Base of Zhongshan Torch Hi-tech Industrial Development Zone, it is a genetic engineering biopharmaceutical company with independent intellectual property rights. It was rated Guangdong High-tech Enterprise. Its top product is Haizhiyuan (recombinant human growth hormone rhGH for injection), which was rated Guangdong High-Tech Product, is a gene-recombinant protein drug for the treatment in many disease fields, such as children’s slow growth caused by endogenous growth hormone deficiency. Anhui Sinobioway Biomedicine Co., Ltd. Anhui Sinobioway Biomedicine Co., Ltd. is a core enterprise of Sinobioway specializing in the research, development, production, and sales of antibody drugs. It is located in the Biomedical Park of Hefei Bantang Bioeconomic Experimental Zone. After the project is fully completed in 2030, it will realize an annual output value of 100 billion yuan and a profit and tax of 30 billion yuan. The project officially started on August 26, 2014 and has completed the housing construction of R&D, production and support of antibody drugs, covering an area of 400,000 m2 , with a cumulative investment of more than 5 billion yuan. The company implements a three-step strategy: The first step was to produce the first antibody–drug in 2020; the second is to produce ten global best-selling antibody drugs by 2025; the third is to produce 100 antibody drugs by 2030, build 500,000 L of the antibody drug CDMO system and successfully develop ten new antibody drugs each year. It will develop into the world’s largest antibody drug CDMO base. Zhangzhou Sinobioway Peptide Biomedicine Co., Ltd. Zhangzhou Sinobioway Peptide Biomedicine Co., Ltd. is a peptide drug research and development and API (Active Pharmaceutical Ingredients) manufacturing base. The company is located in the Economic and Technological Development Zone of Zhangzhou Investment Promotion Bureau and is one of the earliest companies engaged in developing peptide products in China. The company has established a polypeptide raw material production line that meets GMP standards and a peptide production line for scientific research. It has accumulated nearly 20 kinds of polypeptide raw material production processes. The annual production capacity of peptide drugs has reached the highest domestic level and has a high-throughput scientific

5.2 The Development Planning of Sinobioway

249

research peptide platform. The company can produce nearly 10,000 kinds of scientific research peptide products according to customer needs, with customers in more than 20 countries in Europe and America. Anhui Sinobioway Cell Therapy Co., Ltd. Anhui Sinobioway Cell Therapy Co., Ltd., established in the Hefei Chaohu Economic Development Zone in October 2014, is mainly engaged in developing and applying chimeric antigen receptor T cell (CAR-T) immunotherapy. The company, having built more than 10,000 m2 of cell therapy research centers and cell preparation centers that comply with GMP regulations, has been introducing the latest research results and clinical treatment technologies from scientific research institutions such as Baylor College of Medicine, China University of Science and Technology, and Nanjing Medical University and has become a domestically high-level base for cell therapy technology research and development, service and promotion. On April 26, 2016, General Secretary Xi Jinping visited the Advanced Technology Research Institute of the University of Science and Technology of China. When he visited the biomedicine exhibition area, after listening to the report on CAR-T treatment technology, he clearly stated: “Sinobioway cells can promote people’s health. Impressive!”.

5.2.4.2

Establish a Health Service System with Chinese Characteristics Through the Development of Modern Chinese Medicine

Strategic Planning Solving China’s health problems is inseparable from the support of Chinese medicine with Chinese characteristics. To this end, we must play the important role of TCM in the Chinese health system and make efforts in three major areas. Sinobioway plans to build several large-scale Chinese medicine bases nationwide, each of which mainly includes three major centers: modern Chinese medicine manufacturing center, TCM health tourism center, and authentic Chinese medicine market trading center. By implementing the plan of ten thousand stores in hundred cities and using appropriate TCM technologies, Sinobioway plans to establish 1000 community health chain stores of TCM throughout the country. Sinobioway is to establish an authentic medicinal planting base in important authentic medicinal material production areas of the country, covering the 300 most commonly used authentic medicinal materials, and become the largest authentic medicinal material producer and supplier.

250

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.13 Baoding Tongtian River bioeconomy demonstration zone

Infrastructure Baoding Tongtian River Sinobioway Bioeconomic Industrial Park Baoding Tongtian River Sinobioway Bioeconomic Industrial Park, located in the core area of Tongtian Lake in Baoding Tongtian River Bioeconomy Demonstration Zone, covers an area of 100 hectare and a planned construction area of 2 million m2 , of which areas for production housing take up 1 million m2 , laboratories 300,000 m2 , accommodation 200,000 m2 and other supporting housing 500,000 m2 . The main projects include bioeconomy incubators, pharmaceutical manufacturing bases, modern TCM bases, and comprehensive supporting areas. Upon completion, Tongtian River Sinobioway Bioeconomic Industrial Park will become the largest TCM manufacturing base in the world (Fig. 5.13), with an annual output of over 100 billion yuan. TCM herb planting bases The first S-GAP demonstration base established by Sinobioway is located in the Lushui River Ecological District of Fusong County, Jilin Province. It covers an area of more than 1000 hectare. It is home to the largest under forest ginseng base with the largest number of saplings. Sinobioway will also build an S-GAP demonstration base in the Baoding Tongtian River Bioeconomy Demonstration Zone, mainly planting oily peonies, various authentic medicinal materials, vegetables, etc.

5.2 The Development Planning of Sinobioway

5.2.4.3

251

Establish a Life Health Management System by Implementing the GHP Plan

Strategic Planning Based on the theory of information carrier of life, life is the information carrier designed by the wise man. As a full information carrier, the human body can be managed according to the methods used in information management. In light of the management system of information technology, the life process management system consists of three systems: a life information acquisition system, a life information management system, and a life information monitoring system, which is the GHP model created by the author as described in Chap. 3. Sinobioway is to establish a life health management system by implementing the GHP plan.

Infrastructure Beidaihe Sinobioway International Health City Beidaihe Sinobioway International Health City, located in Qinhuandao, Hebei Province, covers a total planned area of 55 km2 (including the biomedical comprehensive bonded area). It is the world’s first demonstration area managed and operated according to the GHP model, providing comprehensive, personalized, and nanny-style services for life and health. Beidaihe Sinobioway International Health City, having been listed as a project of the United Nations Asia–Pacific Healthcare Demonstration Zone, will be jointly established by the United Nations Office for Project Services (UNOPS) of the Beidaihe New District and Sinobioway. It aims to rely on the unique geographical and environmental advantages of Beidaihe New District and use the resource advantages and channel advantages of the UNOPS platform to build a world-class and China’s number one life and health industrial base and become a driving force for Hebei’s economic and social development, and the tipping point of structural adjustment of the coordinated development of Beijing, Tianjin and Hebei. On September 28, 2016, the National Development and Reform Commission officially approved the demonstration zone as the country’s first life and health industry innovation demonstration zone. It plans to take shape by early 2020 and become completed by 2030, forming an international high-end and modern health service industry chain and becoming the highest-level comprehensive demonstration area that leads the world and represents China’s life and health industry (Fig. 5.14). Changsha Sinobioway Rehabilitation Hospital Changsha Sinobioway Rehabilitation Hospital is located in Sanfu Valley, Changsha City, Hunan Province. It is positioned as a research- and teaching-oriented health care service institution, highlighting the combination of medical and nursing care.

252

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.14 Layout plan of Beidaihe Sinobioway International Health City

The project covers 3.33 hectare with a total investment of 200 million yuan and is expected to be completed by the end of 2022. The project plans to set up 267 old-age beds (including 110 dementia and nursing beds), a health and elder care institute equipped with an outpatient clinic, a health management center, a rehabilitation center, an information center, an insurance service center, an old-age training center, etc. Baoding Gubeiyue Sinobioway Forest Health and Wellness Base Baoding Gubeiyue Sinobioway Forest Health and Wellness Base is located in Gubeiyue National Forest Park in Tang county, Hebei province, covering an area of 60 km2 . By following the Sinobioway forest convalescence model, the base fully utilizes the unique natural landscapes and rich cultural landscapes of the park on the premise of vigorously protecting forest resources and natural and cultural landscapes. The aim is to build a health management center, rehabilitation and convalescence center, and the health care community, integrating medicine, healthcare, nursing, sports, tourism, and food to realize the organic integration of the tourism and health industry. It can provide comprehensive, personalized, and nanny-style forest health care services (Fig. 5.15). Hunan Tongdao Big Health Industry Demonstration Zone Hunan Tongdao Big Health Industry Demonstration Zone (Fig. 5.16), located in Tongdao County, Huaihua City, Hunan Province, focus on the development of industries such as pharmaceutical manufacturing, health tourism, forest health and wellness, and healthy foods to create a Sinobioway commune concentrating on the six major industries of healthcare, medicine, nursing, sports, tourism and food and relying on the beautiful ecological environment of Tongdao County. It also aims

5.2 The Development Planning of Sinobioway

253

Fig. 5.15 Rendered image effects of Gubeiyue Sinobioway Forest Health and Wellness Base

to incubate over 100 major health-related projects, create hundreds of billions of GDP and provide more than 10,000 jobs.

5.2.5 Solving China’s Three Rural Issues: Sinobioway’s Big Agricultural Industry Plan 5.2.5.1

Bioeconomy is the Fundamental Way Out to Solve the Three Rural Issues

The three rural issues refer to three issues relating to rural development in mainland China. Specifically, these issues are agriculture, rural areas, and farmers. They are inevitable products during the transition from an agricultural civilization to an industrial civilization. However, how to solve China’s three rural issues? There has been

254

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.16 Zhengchong Sinobioway Forest Health and Wellness Base in Tongdao Big Health Industrial Park

a lack of appropriate solutions in all countries. The United States, Japan, and other countries have all experienced depressions in rural communities during the process of rapid industrial growth. In the process of summarizing and exploring, the author, under the guidance of the bioeconomic theory, put forward the idea that bioeconomy is the fundamental way out to solve the three rural issues. A three-step strategy was used to solve the three rural issues (Figs. 5.17). The first step is the road to agricultural industrialization, rural urbanization, and farmerturned workers. The second step is the stage of industrial agriculturalization, urban ruralization, and workers-turned peasants. The third step is integration: industry– agriculture integration, urban–rural integration, and national integration. The author believes that if one leaps directly to the third step, they may make a mistake because everything changes have a process. Innovation leads to China’s agricultural transformation. Without innovation, there is no hope, so the Party Central Committee emphasizes that China must adhere to the path of independent innovation with Chinese characteristics and implement an innovation-driven development strategy. Therefore, the author proposed to establish six innovation systems and build agricultural expressways. Six innovations include concept innovation, system innovation, scientific innovation, product innovation, market innovation, and management innovation. The six innovation system should be put on a platform, allocating resources harmoniously and efficiently. Sinobioway has integrated the six innovation system to build the agricultural expressway (Fig. 5.18).

5.2 The Development Planning of Sinobioway

255

Fig. 5.17 The three-step strategy to solve the three rural issues

Fig. 5.18 Sinobioway has integrated the six innovation system to build the agricultural expressway

5.2.5.2

The Development Vision of Sinobioway Agriculture

Sinobioway Agriculture Group Co., Ltd. (hereafter referred to as Sinobioway Agriculture) is mainly engaged in the research and industrialized application of agricultural biological technologies. It strives to solve China’s three rural issues to eventually reach the goal “farmers become a socially desirable career choice, rural areas become socially desirable places and agriculture becomes the real primary industry.” Sinobioway Agriculture has become a display window of China’s agricultural biological technology innovations and a forerunner of cutting-edge agricultural technologies. This is mainly to do with the author’s thinking over China’s three rural issues

256

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.19 Bioeconomy is the fundamental way out to solve the three rural issues

and the point that the bioeconomy is the fundamental way to solve the three rural issues. As the author mentioned in an interview,1 the bioeconomy industry is at the core of solving the three rural issues and perhaps an important way to solve China’s agricultural problems; Sinobioway will create the world’s largest agricultural group by implementing the Hundred-Thousand-Trillion Project and vigorously developing the bioeconomic industry (Fig. 5.19). In other words, it strives to address the food security issue by developing new breeding techniques, address agricultural issues by developing the bioeconomic industry and address the issues of farmers and rural areas by building bioeconomic communities.

Addressing the Food Security Issue by Developing New Breeding Techniques China’s food security can be solved in two ways: storing grain in the land and storing grain by technology. The core of the latter is to solve China’s food security problems by developing new breeding techniques. In an interview with chinanews.com, the author talked about Sinobioway’s strengths in breeding. At present, Sinobioway has cultivated the fine corn variety Limin 33, which has five advantages, namely, high average yield, high protein, high sugar, high oil, and high straw content; the collaboration on the third-generation hybrid rice between Sinobioway Agriculture and DuPont Pioneer has achieved great success because it has three basic characteristics. First, it can solve light and temperature sensitivity in traditional hybrid breeding and be planted on a large scale. The second is that the quality of food can be improved. Currently, people want to eat well, and as for how, the author believes that this involves food safety and quality. The third is that the hybrid seed does not contain transgenes—that is, there are no transgenic 1

Wang Yixuan: Bioeconomy is the fundamental way out to solve the three rural issues—an exclusive interview with Dr. Pan Aihua, Chairman of Sinobioway and Professor of Peking University, China Economic Report, 2015, (11).

5.2 The Development Planning of Sinobioway

257

components in its progeny to avoid the controversy of transgenic modification. Sinobioway Agriculture has established a system of precision breeding, which is also at the top level in the world. The new breeding technologies developed by Sinobioway will be described below in the section.

Addressing Agricultural Issues by Developing the Bioeconomic Industry The bioeconomic industry provides theoretical and practical solutions for solving agricultural problems. The bioeconomic industry is formed by the integrated and coordinated development of the big industry, big market, and big finance under the guidance of the bioeconomic theory and the bioeconomic model. Sinobioway Agriculture aims to lead agricultural transformation with concept innovation by implementing the Hundred-Thousand-Trillion Project, integrating six innovation systems, building the agricultural expressway, developing the bioeconomic industry, and building the world’s largest agricultural group. This is mainly because the basic principles of the bioeconomic industry are based on the fundamental idea that the sun is the only source of energy for life and human activities on Earth. From this perspective, agriculture should be the real primary industry. At present, Sinobioway Agriculture has conducted explorations and attempts. In a conversation, the author spoke of2 these efforts and gave a few examples. First, in terms of corn, the question is how to increase the current yield per mu (One mu equals 667 m2 .) from 30 to 300 yuan or even 3000 yuan. It is to be completed through the entire industrial chain of corns, turning all parts into products, especially straw, which we can now make into cellulose, hemicellulose, lignin, etc. When all are turned into products, efficiency can be improved and cost reduced. Now Sinobioway Agriculture is working on an experimental base. In addition, the Limin 33 corn variety has five characteristics. First, the yield per mu is high, up to 1000 kg. Second, the protein content is high. Sinobioway was tested with 600 tons, and the result was over 20% higher than the average corn protein content. Third, the sugar content was high. Fourth, the oil content was high. Fifth, the amount of straw was high. The straw content has laid the foundation for the next step of big industry, during which it can produce 3000 yuan per mu of corn (Fig. 5.20). The second example is bioforestry. Bioforestry is an industry formed by applying biotechnology achievements to forestry and realizing the harmonious development of forestry ecology and industry. Simply put, it turns all the green things that are now produced through photosynthesis into products. Sinobioway Agriculture has the National Forestry-Oil Integrated Demonstration Base and the National Forestry Economic Demonstration Base issued by the State Forestry Administration. Sinobioway Agriculture created the world’s first bioforestry demonstration base to produce products through plant stems, leaves, and fruits. Therefore, the author also 2

Pan Aihua: Bioeconomy is the fundamental way out to solve the three rural issues. chinanews.com, 2015.

258

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.20 The corn industry chain developed by Sinobioway Agriculture

boldly predicted that after PetroChina, Sinopec, and CNOOC, China will have the fourth-largest oil company in the future—Forest Oil China. As another example, because China has abundant Chinese medicinal materials, we have also established a set of monitoring systems of the industrial chain from breeding to the entire logistics chain through Chinese herbal medicine planting and an online quality inspection system (S-GAP) so that the quality of our Chinese medicinal materials can be guaranteed to ensure people’s health and safety.

Addressing the Issues of Farmers and Rural Areas by Building Bioeconomic Communities Sinobioway Agriculture aims to, relying on the bioeconomic system, build a modern bioagricultural flagship enterprise. Under the guidance of the bioeconomic theory and by applying the bioeconomy model, it follows the three-step development strategy of big seed industry, big agriculture, and big industry, and through the coordinated development of the big finance, big market, and big industry, strives to build the agricultural expressway. By implementing the Hundred-Thousand-Trillion project, it will vigorously develop the bioeconomic industry, build the world’s largest modern agricultural enterprise. On this basis, Sinobioway is to build sinobioway commnities to solve China’s farmer and rural issues. A three-step plan has been implemented. First, transfer farmer’s land under normal condictions and afterward farmers join the communities for agriculture production. Second, turn farmers into members of Sinobioway communities. Third, Sinobioway communities can provide members with three guarantees: life guarantees, medical guarantees and education guarantees.

5.2 The Development Planning of Sinobioway

5.2.5.3

259

Development Planning of Sinobioway Agriculture

Sinobioway Agriculture is guided by national development goals and market needs and takes technological innovation as its purpose. It has established a scientific research and development system and management system, built an internationally competitive technology platform for plant genetic research and species improvement, and become an agricultural biotechnology innovation and industrialization base integrating production, education, and research. It has won approval for four national-level technical centers and two nationallevel demonstration bases. The former includes the National Crop Molecular Design Center, the National Center for Plant Gene Research, the Good Seed Creation Center of National Modern Agricultural Science and Technology, and the National Research Center of Crop Molecular Engineering; the latter includes the National Forest-oil Integration Demonstration Base and National Underforest Economy Demonstration Base. Sinobioway Agriculture became the first enterprise in China to pass the Excellence Through Stewardship (ETS) certification in 2013. It has achieved a series of scientific and technological breakthroughs including intelligent sterile molecular design breeding technology that triggered the third agricultural revolution, crop agronomic trait improvement technology based on genome editing technology, the world’s leading rice gene discovery platform, and the world’s largest rice mutant library. Through new breeding technologies (Fig. 5.21), it has obtained many excellent varieties of corn, rapeseed, and rice. Intelligent sterile molecular design breeding technology Since July 2009, with the support of the Ministry of Science and Technology 863 Program (approval numbers: 2009AA101201 and 2011AA10A107), Sinobioway Agriculture has been the first to verify and apply corn seed production technology (SPT) in rice through cooperation with DuPont Pioneer and successfully established rice intelligent sterility technology. SPT-7R-949D, one of the best, was selected from more than 5000 transformation events. The comprehensive evaluation of the transformed strain in terms of genetic stability, agronomic traits, environmental safety, and food safety fully complies with the designed technical indicators and meets the requirements of industrialization. In addition, using the newly created sterile line transition material, a number of hybrid combinations with the potential for yield increase have been assembled. Compared with the control group, these combinations showed obvious yield advantages in planting in Hunan, Jiangsu, and Hainan, further verifying the feasibility and superiority of the rice intelligent sterility technology. Built a world-leading rice gene discovery platform Rice is an important food crop. Because of its efficient genetic transformation system, small genome, known whole genome sequence, extensive collinearity with other gramineous plants, and abundant genetic resources, it has become a fairly good research tool for functional genomics. Like rice, wheat, corn, sorghum, millet, and

260

5 Corporate Practice: The Bioeconomy is Leading Sinobioway to the World

Fig. 5.21 Sinobioway Agricuture has built a world-class research system to develop novel breeding technologies

other important crops are all gramineous plants, and the functional trait genes found in rice can improve rice and other food crops. The rice gene discovery platform, based on the activated tag mutant library, is dedicated to discovering, identifying, and applying agronomic trait genes in rice. It is mainly engaged in improving traits such as drought resistance, efficient use of nitrogen, cold resistance, insect resistance, and high yield. It is expected to achieve high and stable yields by increasing the average yield through improving the stress resistance and yield traits of rice, corn, rapeseed, and other crops. Built a world-class plant biotechnology R&D platform Sinobioway Agriculture has built a world-class plant biotechnology R&D platform and become an important plant biotechnology R&D center and base nationwide. It also established a world-class laboratory, greenhouse, and field integrated biotechnology R&D system, strict R&D management system (RMS), biosafety management

5.2 The Development Planning of Sinobioway

261

system, laboratory record document management system, and knowledge property rights management system. Sinobioway Agriculture actively innovates, optimizes experimental design, standardizes experimental operations, and improves experimental devices according to the laboratory, greenhouse, and field experiment characteristics and purposes. Multiple high-throughput mutant library screening platforms have been established. By organically integrating biostatistics theory with experimental design and result analysis, the entire screening system was more scientific and complete. More than 60,000 mutant strains have been screened. Over 100 genes have been discovered for important agronomic traits, such as drought resistance, high nitrogen utilization, cold resistance, insect resistance, and early flowering. Meanwhile, it has established a series of advanced and efficient gene cloning, expression, and genetic transformation systems. It has constructed accurate and efficient T-DNA localization, gene cloning, vector construction, and gene expression analysis systems and successfully established genome editing technology based on CRISPR/Cas9 and efficient multigene vector assembly technology, saving time and cost of vector construction. Plant genetic transformation is one of the most important agricultural biotechnologies. It has established an efficient rice genetic transformation system. One of the characteristics of this system is the single insertion efficiency of up to 80%, which greatly simplifies the process of gene function verification and product development. Development of space breeding On October 10, 2016, Sinobioway cargo (Sinobioway 33 rice seeds and Limin 33 corn seeds) was loaded into the reentry module of the Shenzhou-11 spacecraft at the Jiuquan Satellite Launch Center in China. At 7:30 on October 17, 2016, the Shenzhou-11 spacecraft was launched from the Long March 2 FY11 carrier rocket at the Center. At 13:59 on November 18, 2016, the return cabin of the Shenzhou11 spacecraft returned to the cabin and landed at the main landing site in central Mongolia. At 12:00 on November 20, 2016, the cabin was returned to the China Academy of Space Technology. At 15 o’clock on November 22, 2016, the return cabin opened up, and the load was retrieved. Among them, there were four kinds of seeds from Sinobioway Group Co., Ltd., weighing 80 g.

Chapter 6

Regional Practice: The Bioeconomy Provides a New Idea for the Development of Mountainous Areas

6.1 Mountainside Economic Belts and Special Economic Zones are the New Growth Poles of the Chinese Economy China’s economic development has revealed the status quo of “stable south” (economic belts along the coast), “strong east” (economic belts along the river), “speedy west”, and “sluggish north” (mountainside economic belts). Based on the author’s opinion, this is inevitable to China’s economy. The 40 years of reform and opening up started with economic belts along the coast in the south, where several special economic zones were built and developed, followed by the economic belts along the eastern rivers, representing the first and second stages of Chinese economic development, which have driven China’s rapid economic development. To keep the relay, China should proactively consider backup plans or identify subsequent growth poles. Based on triad theory, the author believes that as the economy runs into the third stage, much emphasis will be given to mountainside economic development and hence the establishment of several mountainside economic belts and mountainside special economic zones. The author fully expressed the above views in an interview with the People’s Daily on September 5, 2018 and has now elaborated his macrostrategic thoughts through excerpts from interview records. The following is the interview record. Excerpt 1 Mountainous areas changed from four kinds of areas (The original Chinese expression here means old revolutionary base areas, areas inhabited by minority nationalities, remote and border areas and poverty-stricken areas) in the past to become an important growth pole of China’s economy.

The rural revitalization strategy is major decision-making and deployment on the work of agriculture, rural areas, and farmers made by the CPC Central Committee with Comrade Xi Jinping at the core, focusing on the overall cause of the party and © Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_6

263

264

6 Regional Practice: The Bioeconomy Provides a New Idea …

the state, conforming to the desire of hundreds of millions of farmers for a better life. On May 31st, 2019, the Political Bureau of the CPC Central Committee held a meeting to review the “Village Revitalization Strategic Plan (2018–2022) Year”, which marked the comprehensive entry of the rural revitalization strategy into the implementation phase. On July 31, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and deploy economic work for the second half of the year. General Secretary Xi Jinping chaired the meeting. The meeting was held during the period of the domestic policy inflection point and the critical period of Sino-US economic and trade frictions, which attracted much attention at home and abroad. Against this background, the conference highlighted bolstering areas of weakness in the study and judgment and deployment of economic work for the second half of the year. It was listed as an important deployment of the work in the second half of the year, a key task of supply-side structural reforms, and it was requested to make more efforts to bolster areas of weakness in the field of infrastructure and the implementation of the rural revitalization strategy to hedge downward pressure on the total demand. The positive signals from the state to promote rural revitalization filled Dr. Pan Aihua with excitement. Dr. Pan Aihua said, “The hardest part of rural revitalization is actually the mountainous areas. I am a child growing up in the mountains. I have a deep experience”. Dr. Pan Aihua further pointed out that China had experienced three waves of development: coastal, inland, and mountainous areas. It is now in the third wave stage of development toward mountainous areas. Meanwhile, entering the new era, China’s new era of high-quality development has three poles: Beijing-TianjinHebei coordinated development, Guangdong-Hong Kong-Macao Greater Bay Area, and Mountainside Special Economic Zones. Currently, mountainous areas have become an important growth pole of China’s economy from four kinds of areas (as above, the original expression specifically refers to old revolutionary base areas, areas inhabited by minority nationalities, remote and border areas, and poverty-stricken areas) in the past. Excerpt 2 To implement the ’Two Mountains’ Theory and the strategy of rural revitalization, it is imperative to establish mountainside economic belts and mountainside special economic zones.

In April 1979, Comrade Deng Xiaoping first proposed the establishment of an “Export Special Zone”. Later, in March 1980, it was renamed a special economic zone. In August 1980, the CPC Central Committee and the State Council formally approved establishing special economic zones in Shenzhen and Zhuhai. Then, the three special economic zones of Shantou, Xiamen, and Hainan were successively established. Special economic zones, especially the Shenzhen Special Economic Zone, have obvious significance to China’s reform and opening up and China’s economic development.

6.1 Mountainside Economic Belts and Special Economic Zones are the New …

265

Since the 18th National Congress of the CPC, socialism with Chinese characteristics has entered a new era, which is a new historical orientation for China’s development. The new era is essentially an era in which the Chinese nation has grown rich and become strong. General Secretary Xi Jinping has put forward peoplecentered development ideas and new development concepts of innovation, coordination, environmental-friendliness, openness, and sharing; improving the well-being of the people is the fundamental purpose of development; the country is carrying out targeted poverty reduction and alleviation measures to ensure that all people have more sense of gain in the joint construction and sharing process; it is establishing and practicing the concept that green mountains and clear water are as good as mountains of gold and silver, implementing the strictest ecological protection and environmental protection systems, and building a series of new ideas of beautiful China. Dr. Pan Aihua believes that today, 40 years after reform and opening up, it is imperative to establish mountainside economic belts and mountainside special economic zones under the guidance of Xi Jinping’s new era socialist thought with Chinese characteristics to implement the theory of “two mountains” and the strategy of rural revitalization. Wuling Mountain occupies the area bordering Hubei, Hunan, Chongqing, and Guizhou Provinces and belongs to the east extension of Yunwu Mountain on the Yungui Plateau. According to the national strategy for accelerating the economic development of the old revolutionary base areas, areas inhabited by minority nationalities, remote and border areas, and poverty-stricken areas, State Council Document No. 3 clearly requires the coordinated development of the Provinces and cities adjacent to Chongqing, Hubei, Hunan, and Guizhou, the establishment of a national strategic Wuling Mountain Economic Cooperation Zone, to accelerate the promotion of the economic cooperation and complementary functions of the four areas, such as Tujia, Miao, Dong, and other concentrated communities. The Wuling Mountain Economic Cooperation Zone covers more than 100,000 square km and has concentrated areas bordering the four Provinces of Chongqing, Guizhou, Hunan, and Hubei. The population of the jurisdiction area is nearly 30 million, mainly some ethnic minorities. The purpose is to seek a new way of getting a better-off life and explore a new way for the coordinated development of ethnic areas and poor areas across the country. The Wulingshan Economic Cooperation Zone has become one of the important regional cooperation zones in Southwest China. Dr. Pan Aihua said that upgrading the Wuling Mountain Economic Cooperation Zone to the Wuling Mountain Economic Belt and establishing several special economic zones along the mountain in this economic zone was in line with the national strategy and would have a good demonstration and leading effect.

266

6 Regional Practice: The Bioeconomy Provides a New Idea …

6.2 Sinobioway Provides a “Sinobioway Solution” for China’s Rural Revitalization Strategy Rural revitalization is an inevitable historical development. The rise and fall of villages are related to the development and prosperity of Chinese history. The Tang and Song Dynasties were the golden age of Chinese villages and, at the same time, glorious dynasties of Chinese historical development. However, later, with the discovery of geography, the industrial revolution, and the subsequent rise of urbanization, almost all villages in the world gradually declined. This is even more true in China. Modern Chinese villages have experienced the Opium War, the invasion of foreign powers, and the civil war. Under the oppression of feudalism and imperialism, they have gradually entered a depression. China’s great rejuvenation must be based on rural revitalization, which has become an inevitable requirement for resolving the main contradictions of our society in the new era, achieving the two centennial goals and the Chinese Dream of the Chinese nation’s great revival. The Nineteenth National Congress of the CPC report has pointed out that the issue of agriculture and rural farmers is a fundamental issue related to the national economy and people’s livelihood. It must always be the top priority of the work of the whole party to implement the rural revitalization strategy. Sinobioway has always regarded solving China’s problems of agriculture, rural areas, and farmers as its core strategic goal. Over 300 years, it has constantly been thinking, accumulating, and trying. Until now, it has formed a relatively mature Sinobioway Solution, which it has deployed in Tongdao, Hunan. The solution was fully expressed in the theme report of the People’s Daily & opinion (www.people.com.cn) on September 5th, 2018. The following excerpt from this interview explains how Sinobioway uses the bioeconomy to provide a “Sinobioway Solution” for China’s rural revitalization strategy. Excerpt 1: Tongdao will Become a National Model for the Construction of the Sinobioway Bioeconomy Demonstration Zone Speaking of the deep meaning of this project, Dr. Pan Aihua was farsighted and eloquent, as he explained Sinobioway’s strategic concept of revitalizing China’s rural areas and his love and affection for his home and country. “Sinobioway has set its sights on mountainous areas by profoundly studying and implementing Xi Jinping’s new era of socialism with Chinese characteristics and implementing the strategic strategy of General Secretary Xi Jinping’s ‘Two Mountains’ Theory”, said Dr. Pan Aihua. Sinobioway’s particular interest in mountains is based on reflection and evaluation of the development of China. It is now engaged in a cause that will benefit both the contemporary era and our future generations— that is, provide the Sinobioway solution for the rural revitalization of China by the development of bioeconomy. In recent years, Sinobioway has, by taking advantage of bioeconomy, promoted the construction of a bioeconomy demonstration zone in mountainous areas and is committed to letting them spring up all over the place. Dr. Pan Aihua has pointed

6.2 Sinobioway Provides a “Sinobioway Solution” for China’s Rural …

267

out that Tongdao will become a national model for constructing the Sinobioway Bioeconomy Demonstration Zone. It will also serve as a Sinobioway model in China’s rural revitalization. Excerpt 2: Tongdao’s Clear Water and Green Mountains Have Attracted the Sinobioway Phoenix A fine bird chooses a tree to nest in. Why did Tongdao Dong Autonomous County of Hunan Province attract the phoenix Sinobioway? For this question, Dr. Pan Aihua said that Tongdao had simple folk customs, clear waters, and green hills everywhere, but the mountainous areas were also the most vulnerable. It is still a poor nationallevel County and urgently needs to solve many problems, such as poverty alleviation and rural revitalization. Located on the southwestern border, in the very southern end of Huaihua City bordering the three Provinces of Hunan, Guangxi, and Guizhou, Tongdao in history has been known as the end of southern Chu, the entrance of northern Yue, referring to states in ancient China. It is the earliest minority autonomous region established in Hunan Province, as well as an old revolutionary County, a key County for national poverty alleviation and development projects, and a pilot County for regional development and poverty alleviation in the national Wulingshan area. The Tongdao transfer of troops on December 12, 1934, was a crucial turning point for the fate of the Central Red Army and the Chinese revolution because it saved the Red Army and the revolution. “Tongdao will become an ideal place for everyone to travel in the future. It will still be simple and unsophisticated but will have increased quality of modern work and life. The people would be happy, singing and dancing every day free from worrying about food and clothing, knowing they would be taken care of if they were sick”. Dr. Pan Aihua emphasized that these miraculous changes will become daily scenes in the bioeconomy demonstration zone built by Sinobioway in Tongdao. Tongdao County integrates ecotourism, cultural tourism, and health tourism in its development. Yin Yuying, member of the Standing Committee of Huaihua City in Hunan Province and Secretary of Tongdao County Committee, pointed out that Sinobioway is based on Tongdao’s biological resources and ecological conservation advantages; it focuses on leading biotechnology and economic trends, and creates a new model of bioeconomy and a new example of rural revitalization in Tongdao. The Tongdao County Party Committee and Government will go all out to join hands with Sinobioway and continue to write a new chapter of Tongdao with a new concept, a new design, and a new model. Dr. Aihua Pan said that in Tongdao, there is a saying that there are nine mountains, half water, and half farmland. While having a good ecological advantage, it is beautiful, but people are hungry. Conversely, according to General Secretary Xi Jinping’s thought of “Two Mountains”—clear waters and green mountains are as good as mountains of gold and silver, and 95% of the green hills and clear waters of Tongdao are wealthy. Sinobioway’s concerted efforts with Tongdao to build a bioeconomy demonstration zone is a vivid portrayal of General Secretary Xi Jinping’s theory of “Two Mountains”.

268

6 Regional Practice: The Bioeconomy Provides a New Idea …

6.3 The Bioeconomy is the Fundamental Way Out for Solving the Three Rural Issues The development of bioindustry can maximize the value of the product and is at the core of solving agriculture, rural areas, and farmers issues in China. In the interview with the China Economic Report on December 5, 2015, the author made a detailed interpretation of the bioeconomy to solve agriculture, rural areas, and farmers. The following is a summary of parts of the interview. China Economic Report: How Can China’s Rural Issues Be Solved? Pan Aihua: If you cannot solve the rural issues of agriculture, rural areas, and farmers, you cannot realize the Chinese dream. If China is to be strong, agriculture must be strong; if China is to be rich, farmers must be rich; and if China is to be beautiful, the countryside must be beautiful. To solve these problems, we need to change our concepts. Agriculture is not just about food; we cannot completely separate the city from the countryside. The first step in the development of agriculture, rural areas, and farmers is agricultural industrialization, rural urbanization, and peasants-turnedworkers; the reverse three steps I proposed is the second stage, which is industrial agriculturalization, urban ruralization, and workers-turned-peasants; in the end, it will be integrated to achieve agro-industry integration, rural–urban integration, and peasant-worker integration. At the same time, the bioeconomy will provide solutions to the six major issues (population issues, health issues, food issues, energy issues, environmental issues, and marine issues) that China and all the world face, as well as biosecurity issues. The bioeconomic industry is a new way to solve the three issues of agriculture, rural areas, and farmers. Perhaps it will be a new option to solve the problem of agriculture in China. Through implementing the Hundred-Thousand-Trillion Project, Sinobioway is vigorously developing the bioeconomic industry and building the world’s largest agricultural group. It strives to solve the food security problem by developing new breeding techniques, agricultural problems through the development of the bioeconomic industry, and farmer and rural area issues through the establishment of bioeconomic communities. First, we can solve the food security problem by developing new breeding techniques. We must have technologies in our own hands. For example, the Limin 33 corn variety cultivated by Sinobioway was field-tested by an expert production team organized by the Ministry of Agriculture. The yield per mu (1 mu = 667 sq m) exceeded 1 ton. This means that if Limin 33 is planted on 20% of the country’s corn arable land, the national food security plan for an annual increase of 50 billion kilograms of grain can be achieved. Meanwhile, we have successfully developed a new generation of hybrid breeding systems. This system makes full use of the new technology of hybrid planting with crop sterility genes. It is another leap after breeding three-line and two-line hybrid rice and will realize the third green revolution of crop breeding in China.

6.3 The Bioeconomy is the Fundamental Way Out for Solving the Three …

269

Second, we can solve the agricultural problem by developing a bioeconomic industry. This is also the most effective way to solve agricultural problems. Our business plan is divided into three steps: the first step, through the development of the large seed industry, gaining 30 yuan per mu; the second step, through the development of large agriculture, gaining 300 yuan per mu; and the third step, through the development of large industries, gainning 3000 yuan per mu. It is a five-year cycle, but the boundary between them will not be too obvious, and the goal of big industry will be reached by 2030. Applying modern science and technology to the bioindustry and the primary, secondary and tertiary industries could be integrated into a new industry. China Economic Report: The Three Steps Mentioned Earlier Feel Slightly Repetitive. Why Cannot They Be Done in One Step? Pan Aihua: Only by following these three steps can integration be better achieved after the reverse three steps. It is not easy to go directly to integration in one step. It is unrealistic for urban people to integrate into the countryside. However, when the reverse three steps are achieved, integration is possible and logical. China Economic Report: Focusing on Food Security, What Do You Think Should Be Done to Let the People Eat at Ease While Maximizing Farmers’ Interests? Pan Aihua: First, we have to attach great importance to food security, but we must know well in our heart, unlike the story titled The Boy Who Cried Wolf , if we keep saying the wolf is chasing sheep, it will appear. There are no wolves now, nor will there be in the short term. We cannot be confused by this kind of thing. Second, it is recommended that the country set up the Ministry of Food. In this way, a department is set up specifically to be responsible for food security instead of having fragmented management in each department. On the one hand, it is efficient, and on the other hand, it is possible for many resources to be allocated to the industry to develop the economy. Matters related to people can be managed by institutions such as the National Health and Family Planning Commission; for organisms other than people, such as agriculture, forestry, animal husbandry, sideline production, and fishery, it is suggested that we establish a department, such as the Ministry of Big Agriculture or the Ministry of Bioindustry, to deploy and manage things in a unified manner to avoid overlapping management. Third, develop subversive agriculture. Traditional agriculture prioritizes guaranteeing food supply, it is impossible to make money, and the added value is also low. However, we do have a way to make money in agriculture. For example, we are now developing a bioeconomic industry to solve agricultural problems. For example, once corn is planted, every ingredient can become a product and a commodity. This can be divided into three levels: corn can be turned into 10 to 20 products, such as starch, amino acids, ethanol, and so on. Previously, we only talked about the above, but now there is also straw. With our currently most advanced technology, 1 ton of straw can generate a net profit of 3000 yuan, and 1 mu of land can produce 1 ton of corn and 0.67 tons of straw. That’s why we often joke that we do not grow corn but straw.

270

6 Regional Practice: The Bioeconomy Provides a New Idea …

China Economic Report: What Can Straw Be Used For? Every Year, Much Straw Is Burned in the Land; It Is Difficult to Imagine That Straw Can Be as Valuable as Corn Pan Aihua: Not as valuable, but more than three times the value of corn. There are three main components in straw: cellulose, hemicellulose, and lignin. The current processing is relatively inefficient, so the cost is very high. For example, lignin extraction has technical barriers, whereas relying on technological revolution, lignin can be processed and extracted. In addition, the liquid part inside the straw can also be used. Take Limin 33 corn as an example. Its liquid sugar content is approximately 10%, and turning this 10% into sugar will be valuable. Some places are also fined because the burning of straw will damage the environment, which is very costineffective. Therefore, the development of the bioindustry can maximize the value of the product. Heilongjiang Province, which has the largest biomass, is used as an example. There are 110 million mu of corn in this Province alone. According to this calculation, it has approximately 50 million tons of straw per year and can produce 20 million tons of succinic acid. At present, 1 ton of succinic acid is approximately 16,000 yuan. How much GDP can be increased for Heilongjiang by this one alone? Not only straw but also rice, wheat, and many dead branches and rotten leaves. The remaining question is whether the market can absorb the greatly increased products. Completely yes! Cellulose ethanol can be needed as much as possible. However, if you only use the current technical level of producing cellulose ethanol, as long as the oil price falls below 80 US dollars per barrel, you cannot make money, and you must stop production, while using our technology, as long as the oil price is not less than 30 US dollars, you do not need to stop production, so we must rely on technological revolution. China Economic Report: What Is the Concept of Agricultural Expressways Like? Pan Aihua: I just mentioned that Sinobioway Group’s strategic planning is to take one step with two footprints to realize the three big dreams. One step refers to the theoretical foundation of the bioeconomy, and the two footprints refer to the creation of the bioeconomic model under the guidance of the theory and then the development of the bioeconomic industry by applying the model. The three big dreams refer to creating a bioeconomic system, solving the problems of agriculture, rural areas, and farmers in China, and solving health problems in China. To realize the three dreams, we must innovate and take an unusual path. Therefore, we have put forward the establishment of the three expressways: the New-drug Expressway (high-efficiency new-drug R&D system) to contribute to independently solving China’s medicine issues; the Health Expressway (the Health Internet of Things, or iHealth) to provide online and offline health services, and the Agricultural Expressway to independently solving China’s food security issue. Put simply, it means building an agricultural expressway by developing the bioeconomic industry in agriculture, which requires the efficient allocation of agriculture-related resources such as means of production, technologies and funds, resources, and so on.

6.3 The Bioeconomy is the Fundamental Way Out for Solving the Three …

271

China Economic Report: How Can Agricultural Expressways Be Built? Pan Aihua: It takes three steps. First, it requires a top-level design—that is, to conduct overall planning in terms of conceptual, system, and technological innovation. Second, it builds the Agricultural Expressway operation platform—Sinobioway Agriculture Group Co., Ltd.; The third step is the actual operation. The last step can be divided into three five-year plans. Taking planting Limin 33 fine variety of corn as an example, from 2015 to 2020, we can plant 100 million mu to achieve the annual revenue of 10 billion yuan and profit over 1.5 billion yuan; from 2020–2025, we can plant 300 million mu to achieve the annual revenue of 30 billion yuan and profit over 4.5 billion yuan; from 2025–2030, we can plant 500 million mu to achieve the annual revenue of 100 billion yuan and profit over 30 billion yuan. (Published on China Economic Report in November 2015, by Wang Yixuan).

Chapter 7

National Practice: The Bioeconomy Has Found the True Answer to China’s Economic Miracle

7.1 China Has Created Miracles in World Economic History History shows that China’s economy has remained top in the world during the past 1800 years.1 With the Rule of Wen and Jing, the benign administration of the Zhenguan reign period, the Prosperous Kaiyuan Period, the Heyday of Kaiyuan, and the Prosperous Era of Kangxi and Qianlong, it has been a brilliant civilization that has illuminated the world. Based on the from Angus Maddison,2 a world-renowned economist (1926–2010), China’s economy was number one in the world from 0 to 1889 AD and peaked in 1820, accounting for 32.9% of the world economy; it was only in 1890, when the United States GDP reached 214.714 billion international dollars, surpassing China’s 205.379 international dollars, that China became number two in the world. Imperial China collapsed as the last rulers fell off the beaten track and refused to move forward. China continued to fall until generations of Chinese fought unswervingly to bring the country back on track under the guidance of outstanding leaders such as Sun Yat-sen and Mao Zedong. With the starting point after the founding of new China in 1949, China returned to glory after experiencing explorations, ups and downs, and turmoil. In 2010, China’s GDP rose to second again, exceeding that of Japan. Since then, China’s economy has taken off, as it had a solid hold of number two in the world, with its 2019 GDP reaching 2.8 times that of Japan or approximately 66.6% that of the US. In 2019, China’s GDP reached 100 trillion yuan (14.3 trillion dollars), gaining unstoppable momentum for rejuvenation.

1

Wang Hongguang et al. Filling the Trap of the World’s Second Largest Economy: Sino-US Gap and Trend. Beijing: Huaxia Publishing House, 2018. 2 Angus Maddison: The World Economy: A Millennial Perspective (Chinese Edition). Translators: Wu Xiaoying et al. Beijing: Peking University Press, 2009. © Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_7

273

274

7 National Practice: The Bioeconomy Has Found the True Answer …

Fig. 7.1 The shares of major countries’ GDP in world GDP between 1961 and 2019 (World Bank)

In addition, from the perspective of economic history, China has created a world miracle: no other country has sustained such rapid growth for such a long period. From 1978 to 2017, China’s economy grew on average at 9.5% annually; this rate has been rare in human economic history and almost went out of everyone’s expectations.3 In terms of per capita income, China rose to 10,500.4 USD in 2020 from merely 89.5 USD in 1960 at an average of 8.2% per year, ranking the highest globally. China’s share in world GDP also climbed from 1.7% in 1978 to 16.3% in 2019 (Fig. 7.1).

7.2 China Becoming the World’s Largest Economy is a Historical Necessity From the perspective of economic development, according to the current development trend, it is inevitable that China’s GDP will exceed that of the United States. What is uncertain is which year. Ren Zeping and his colleagues at Evergrande Research Institute have calculated that China’s GDP will surpass that of the United States in 2027; Hu Angang, Dean of the National Conditions Research Institute of Tsinghua University, delivered a speech in the 24th session of the Lecture Series on Chinese Path-CITIC University Lecture entitled Xi Jinping Thoughts on the Governance of China and Chinese Path: China has already surpassed the United States in economic strength (2013), technological strength (2015), and comprehensive national strength (2012); in 2016, China’s economic strength, technological strength, and comprehensive national strength were equivalent to 1.15 times, 1.31 times and 1.36 times of those of the United States, respectively, ranking first in 3

Lin Yifu: China’s economic growth in the 40 years of reform and opening up has created a world miracle. Wisdom China, 2018 (10).

7.3 The Bioeconomy Has Revealed the Source of China’s Economic Miracle

275

the world. The calculations made by the team led by Professor Wang Hongguang of the China Academy of Science and Technology Development Strategy show that China’s GDP is expected to surpass that of the United States by approximately 2030 and become the world’s largest economy.4 Nevertheless, there are several essential prerequisites: First, the United States does not exclusively limit to itself the huge economic benefits of the new technological revolution and the industrial revolution; second, China’s economic development does not show disruptive errors; third, China must tap the growth potential of the tertiary industry. Of course, the above calculations are based on current US dollars. According to the International Monetary Fund’s ranking of the world’s purchasing power parity, China’s GDP has surpassed that of the United States in 2014, accounting for 16.5% of the global total, 0.2 percentage points more than that of the United States, ranking first in the world. China has the world’s most powerful manufacturing system. It took China 70 years to establish the world’s most comprehensive manufacturing system with the most powerful manufacturing capabilities. The manufacturing industry covers 24 industry groups, 71 industries, and 137 subindustries involved in international standard industry manufacturing and has become one of the countries with the most complete manufacturing system in the world.5 In addition, China has become the world’s largest exporter of manufactured goods, especially the largest exporter of high-tech products. This is the greatest guarantee for China’s future rise. From the perspective of the level of scientific and technological development, China’s science and technology have entered a new stage. The National Technology Forecasting General Research Group believes that the gap between China’s overall technological level and the top international level is 9.4 years and has entered the “coexistence of three runs” with the following: paralleling and overtaking.6 The development of science and technology has laid the foundation for cultivating new kinetic energy and provided strong support for economic development and the improvement of people’s livelihood.

7.3 The Bioeconomy Has Revealed the Source of China’s Economic Miracle Many scholars have conducted studies on the miracle of China’s economic development and put forward various views. Some people think that China’s economic development benefits from the size of China’s population; some think that China’s 4

Wang Hongguang et al. Filling the Trap of the World’s Second Largest Economy: Sino-US Gap and Trend. Beijing: Huaxia Publishing House, 2018: 438. 5 China has become one of the countries with the most complete manufacturing system in the world. Xinhua News Agency, July 24th, 2018. 6 Yuan Like, Wang Ge, Xie Fei et al. What is the overall level of China’s technology. The Economic Daily, May 8th,2015.

276

7 National Practice: The Bioeconomy Has Found the True Answer …

Fig. 7.2 GDP changes in major countries from 1961 to 2019 (World Bank)

economic development comes from the reform dividend, and some think that China’s miracle depends on state capitalism; others believe it is due to the four factors of the large population, production efficiency, intensive capital, and imitation of advanced countries.7 These arguments, no matter from what point of view, emphasize the uniqueness of China. Uniqueness indicates a lack of scientific character, there is no regularity and it cannot be generalized. However, the author believes that for China’s economy to have such long-term rapid development, there should be a profound theoretical basis, and there must be certain laws behind it. Finding the laws behind it has been the direction of the author’s long-term thinking. After years of summation, the author finally determined that behind the Chinese miracle is bioeconomy; by understanding the bioeconomy, one can explore the mysteries of China’s revival from another perspective.

7.3.1 The Bioeconomy is the Password to Crack the Mystery of China’s Miracle Since 1978, China’s GDP growth rate has remained high (Fig. 7.2), creating a world miracle. Behind the Chinese miracle is the socialist market economy with Chinese characteristics. However, what is a socialist market economy with Chinese characteristics? Is it a market economy or a planned economy? According to the author’s understanding, it is significantly different from the two existing systems in the world. First, the socialist market economic system with Chinese characteristics is not the typical capitalist economic system emphasized by Western scholars. The capitalist economic system emphasizes a free economy and market regulation. It must rely on the power of the market to correct itself or rectify a deviation and exclude government intervention. However, there is considerable waste in adjusting with the help of 7

US media: China’s economic miracle is attributed to 4 major factors. China Daily, March 31st, 2018.

7.3 The Bioeconomy Has Revealed the Source of China’s Economic Miracle

277

market forces. This system mainly exists in developed capitalist countries such as Europe, America, Japan, and South Korea. Second, the socialist market economic system with Chinese characteristics is not the conventional socialist market economic system—that is, the planned economic system. The planned economic system emerged in the Soviet Union. China adopted this system for a long time after the founding of New China, but currently, it only exists in Cuba and North Korea. The core of this system is centralized power, on which the right to mobilize and use resources is entirely based, but this system is too rigid, which leads to failure. The disintegration of the Soviet Union is a witness to history. The socialist market economy system with Chinese characteristics is suitable for China’s economic and social development formed by China’s long-term development and strenuous exploration under the leadership of the Communist Party of China. It is the third economic and social system and the most scientific development system. The basis of this system is the market economy system, but it also emphasizes government intervention when necessary. This is a system proposed by the CPC based on long-term research on world economic development and summarizing the laws of world economic development. This is mainly because the system implemented in China is fully compatible with the latest achievements in scientific development—life sciences and medicine—and is a typical bioeconomic system. According to the author’s theory, the foundation of the bioeconomy is life sciences and medicine. We know that the purpose of life sciences is to study the various elements of life existence from all aspects, focusing on free exploration and storing knowledge from all aspects to understand the mysteries of life existence. At this stage, if free exploration is limited, setting the research area and steps (that is, the research plan) will lead to limitations of the research and ultimately the inability to open up new prospects. In medicine, the emphasis is on intervention, which is based on a profound understanding of life sciences and a proficient grasp of the laws of life. It is an intervention that focuses on the root cause of a disease. At present, the Chinese economic system is the most suitable for China’s development. It not only emphasizes free exploration (it gives play to the role of market regulation, which is the invisible hand of the market in Western economics), it also emphasizes intervention when necessary (This can be called the visible hand of the government). This economic system have made China be creating a world economic miracle. Certainly, the author also has good reason to believe that as long as the concept of the bioeconomy is fully understood, in future development, both the tangible hand plus the invisible hand will be emphasized, which emphasizes not only the key role of the market in resource allocation but also the treatment that must be given in a timely manner when the market is sick—that is, government intervention. In this way, the miracle of China’s development will continue.

278

7 National Practice: The Bioeconomy Has Found the True Answer …

7.3.2 The Bioeconomic Model Provides a New Pattern for China’s Economic Development The bioeconomic model refers to the new economic model created under the guidance of bioeconomic theory. Sinobioway has created and practiced ten models: the bioeconomy experimental zone, the bioeconomic community, the big industry, Super Good Agricultural Practices (S-GAP), good health practices (GHP), forest health and wellness, the bioeconomy incubator, happy senior living community, the biofinancial supermarket, and the biolab supermarket. The connotation and denotation of the ten models have been discussed in detail in the theory and practice section, as well as the practices of Sinobioway during industrial development. These practices have fully displayed the superiority of the bioeconomic model and the glamour of the ten bioeconomic models: capable of creating a harmonious society. This is because, under the guidance of the ten models, highly developed productivity, abundant material wealth, and highly civilized society can be realized to a certain extent. Meanwhile, in a broader sense, giving full play to the strengths of the bioeconomic model will help to provide a Sinobioway solution in efforts to solve China’s health issues and the three rural issues. The state of society created under the bioeconomy is a harmonious society that China has been pursuing for thousands of years. The Hefei Bantang Bioeconomy Experimental Zone and Tongdao Sinobioway Commune are examples of a future society. The author pointed out the following in an interview: the sun is the sole source of energy for life on Earth and human activities; the bioeconomy is one of the best approaches for realizing the conversion of solar energy—it not only provides the theoretical basis for the two mountains theory (General Secretary Xi Jinping repeatedly emphasized the “gold and silver mountains” and “lucid waters and lush mountains,” hence the name) but also solutions for realizing it. At present, socialism with Chinese characteristics has entered a new era. To explore a new path for comprehensively building a great modern socialist country, the Central Committee of the CPC and the State Council jointly issued the Opinions on Supporting Shenzhen to Build a Pioneering Socialist Demonstration Zone with Chinese Characteristics on August 9, 2019. The document has put forward the five leads: First, take the lead in building a modern economic system that reflects the requirements of high-quality development; second, take the lead in creating a democratic and the rule of law environment that demonstrates fairness and justice; third, take the lead in shaping the modern urban civilization that shows the prosperity of socialist culture; fourth, take the lead in forming a common development pattern of coconstruction and common prosperity; fifth, take the lead in creating a beautiful Chinese model of harmonious coexistence between man and nature. This is exactly the practice and demonstration of the bioeconomic theory advocated by the author.

7.3 The Bioeconomy Has Revealed the Source of China’s Economic Miracle

279

7.3.3 The Bioeconomic Theory Provides a Scientific Foundation for China’s Great Rejuvenation Pan’s Bioeconomic theory is a brand-new economic theory, mainly reflected in three aspects. First, it represents entirely new ideas and approaches. Pan’s Bioeconomic theory is a completely new economic theory created under the guidance of life science and medicine; it is totally different from conventional economic theories or other bioeconomic theories. Second, it reflects a brand-new economic model formed under the guidance of Pan’s Bioeconomic theory. Third, it consists of a brand-new industry. The bioeconomic industry is the one formed through the integrated and coordinated development of primary, secondary, tertiary industries by taking the bioindustry as the core and applying modern sciences and technology to these bioindustries. The bioeconomy has three characteristics: Realizing self-interests without harming others, relying on the ecology to develop economy, and enjoying life while working. This completely conforms to the notion “green mountains and clear water are as good as mountains of gold and silver.” It reflects the idea of prioritizing the environment while seeking economic development, showing a high degree of harmony between man and nature. More importantly, as the bioeconomy relies on the environment in the economic development, it also relies on solar energy rather than exploiting resources. This has provided solid scientific support for a community of common destiny; it has also provided the scientific basis for China’s “go global” strategy, the “Belt and Road” Initiative, and China’s peaceful rise.

Part III

The Summary Part

Chapter 8

The Bioeconomy is an Inevitable Path of Human Development

There is a saying that goes. It is the best of times, and it is also the worst of times. For the so-called best of times, my understanding is that people currently live in the midst of unprecedented material abundance. The technological revolution has brought a wide variety of products, so flourishing that it gets a little perplexing; with the development of high technology, the potential of various resources has been fully tapped, and the biggest threats to life, such as hunger and deaths, have been basically eliminated. World Bank data show that the world’s overall average life expectancy has reached the highest historical value (72 years old), the neonatal mortality rate is in the lowest value in history (18.6 per thousand live births), and the maternal mortality rate has dropped to 216 per 100,000 live births. However, the contemporary era faces a series of problems that seriously threaten people’s health and economic and social development. For example, in terms of health, the world faces major and emerging infectious disease prevention and control situations; chronic diseases have become a major burden on the economy and society; medical resources cannot meet the demand, and health management models are lagging behind. The problems of population quantity, quality, and structure have become the core problems that have plagued the development of the world; environmental pollution and ecological destruction have become public hazards; there are serious prominent issues in energy security and energy structure, and the pressure on energy conservation and emission reduction is huge; decreases in species diversity, invasion of alien species and major biosecurity incidents, etc. are constantly emerging; food problems, food safety, and other issues have become urgent. However, the more serious problems are not these. The most terrible thing is that human beings have not yet realized that the direction of the entire economic society and even the pursuit of science and technology is not completely consistent with the fundamental purpose of health, longevity, and happiness that people pursue. Which is more important, economic development or human health? Which is the pursuit of people, economic profit maximization or human health, longevity, and happiness? In addition, from the perspective of global economic development, the entire world’s economy is currently facing a gradual downward trend. In the short term, © Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_8

283

284

8 The Bioeconomy is an Inevitable Path of Human Development

there is still no obvious turning point. The world is looking for new growth points after the information economy. There is also talk of the fourth industrial revolution. However, where is the new growth point? At this time, the world is watching and looking for hot spots. Based on the distinctive knowledge background, unique life experience, and original scientific thinking, the author believes that the development of the bioeconomy will provide new options for the development of China, the world, and the entire human society.

8.1 The Bioeconomy Provides a Scientific Foundation for the Socialist Market Economy China’s economic development is a miracle in the history of world economic development. No country can maintain such high-speed development for such a long time, and no country can provide such a good guarantee for such a large population. Comprehensively building a moderately prosperous society in 2020 is a commitment made by the CPC and the state to the people and a historical miracle recognized by the world. Although China’s economy has achieved great development under the leadership of the CPC, the model of China’s economic development has not yet been recognized by other countries and academia in the world. They remain skeptical about the development of the Chinese economy. For example, only a few countries, such as New Zealand, currently recognize China’s market economy status. In a nonlegislative resolution passed by a plenary meeting of the European Parliament, over 70% of the members of the European Parliament opposed recognition of China’s market economy status: a total of 546 out of 751 members opposed China’s automatic acquisition of market economy status under the World Trade Organization. In November 2017, the United States submitted a request to refuse China’s access to market economy status under Article 15 of the Protocol on China’s Accession to the World Trade Organization and officially announced the news on November 30. Although many people have analyzed this, the author believes that these analyses mainly failed to find the root of the problem—that is, they did not find a solid scientific basis for China’s socialist market economy. Western economic circles and Western governments are market-oriented and do not recognize government intervention. Naturally, they deny the status of China’s market economy without understanding China’s economic development model. China’s economic development is a miracle of the world, but as for how the Chinese economy has developed to the present, not only is there a lack of clear understanding of China from the world but also China’s economics community has divergent views on the guiding theory of China’s economic development, and the interpretation of China’s economic development model is also pale and powerless.

8.1 The Bioeconomy Provides a Scientific Foundation for the Socialist …

285

The main reason is that they have not found a scientific basis for China’s economic development. Conventional economic theories, including Western and Marxist economic theories, do not think socialism can engage in a market economy. China has proposed a socialist market economy, an unprecedented economic system that is completely inconsistent with conventional economic theories. It is also a concept that has never existed in Chinese and foreign economics. However, the West believes in science. Suppose we can find a scientific theoretical basis for the socialist market economy from a scientific perspective. In that case, it will help the West to comprehend and understand China’s socialist market economy. In the author’s opinion, this problem has been solved. The essence of the socialist market economy is a market economy + a planned economy. According to Pan’s Bioeconomic theory, a market economy is a free economy. The emphasis is on the power of the market and the adjustment of the market, which is very similar to life sciences. For example, in dealing with economic crises, the dominant idea in the West is to rely on the market to regulate and restore it, which is very similar to people relying on the body’s own rehabilitation capabilities for rehabilitation treatment. In addition, the planned economy pays attention to relying on the power of the government or the tangible hand to adjust, which is completely similar to the medical means to restore health. Therefore, life sciences (invisible hand) and medicine (tangible hand) provide a scientific theoretical explanation for the socialist market economy (Fig. 8.1). This is also explained in the relevant chapters of the brief history of the market economy and planned economy.

Fig. 8.1 The relationship between a socialist market economy with Chinese characteristics and the bioeconomy

286

8 The Bioeconomy is an Inevitable Path of Human Development

8.2 The Bioeconomy Provides a Unique Perspective for Humans to Truly Understand the World Knowing the world, understanding the world, and knowing oneself and understanding oneself are unremitting pursuits of humankind. At present, human beings have provided scientific explanations of the world and themselves from all perspectives. For example, human understanding of the world has gone from micro to macro to micro, undergone the three-phase transformation of Newtonian cosmological model, special relativity, and general relativity, and experienced the establishment of gravitational field equation, the proposition of static cosmological model, expansion of the universe, and other different cognition models such as Big Bang Cosmology. However, in fact, each model faces a big problem. Taking the special theory of relativity and the general theory of relativity as examples, the former overcomes the shortcomings of the Newtonian cosmological model, but then it was discovered that the special theory of relativity also needs to be further expanded. Therefore, Einstein extended the principle of special relativity further and proposed the principle of general relativity, the gravitational field equation, and then introduced the universe model to explain the universe. However, this model is static. With the study of the phenomenon of the redshift of the spectral line, this static model faces a dilemma that cannot be explained. The dynamic model of the expansion of the universe began to appear, so made the Big Bang. The large universe explosion theory also faces many doubts,1 such as the problem of galaxy halo points, the problem of dwarf galaxies with cold and dark matter, the problem of field of view, the problem of uniformity, and the problem of female unipolarity, all of which need further explanation. However, from the present point of view, although the world has been explained and elaborated from physics, biology, and other fields and angles, attempts to fundamentally understand the world, none of them has been recognized by the world scientific community. This is also in accordance with the author’s judgment. According to the author’s understanding, human understanding and interpretation of the world are like a blind man touching the elephant. Each discipline and scholar observe and explain the world from their own perspectives, but they are not comprehensive. The emergence of Pan’s Bioeconomy will bring a new perspective and understanding to humankind. Because Pan’s bioeconomy is rooted in the world’s origin, it fundamentally reveals the theoretical basis that the world is an information carrier designed by a wise man. Pan’s bioeconomic theory, integrating natural sciences and social sciences, breaks the dividing line between materialism and idealism and provides humanity with a unique perspective on the world. Through it, humans understand and explain the world’s past, present, and future from another perspective.

1

Qian Shiti: Breaking through the absolute concept of time and space, human understanding deep into the high speed and the world of universe. Physics Bulletin. 2012, (3): 108–111.

8.3 The Bioeconomy Provides the Right Direction for Human Peace …

287

8.3 The Bioeconomy Provides the Right Direction for Human Peace and Sustainable Development People who are familiar with history all agree that world history is a history of victory. However, why were wars so prevalent and so frequent in world history? Different scholars have proposed different explanations. Population theorists believe that the root of war is the proliferation of the population; social evolutionists believe natural selection is the origin of war; and some believe2 that the unsound state system, the existence of anarchy in the world, and human nature and behavior are the three root causes of war. However, in the author’s opinion, whichever kind of explanation has been unable to thoroughly explain the origin of war because they firmly grasp only one or several aspects and do not explain war from the perspective of human nature—desire and greed. The theory of asymmetric management information tells us that there are three levels of human pursuits: animal needs, rational needs, and spiritual needs. From this perspective, explaining and elaborating the root causes of war will inevitably bring us a great source of inspiration. The author believes that the root cause of war lies in the unsatisfaction and pursuit of the three needs. The proposal of bioeconomics provides stable conditions for solving these three needs. For example, the plunder of resources is often at the core of war, which is mainly driven by animal demand. The bioeconomy development mode depends on inexhaustible solar energy. If bioeconomic efficiency can be fully utilized, the needs of human beings for food, clothing, shelter, and transportation can be basically met, and plundering the resources of other countries through war can be avoided. Meanwhile, the bioeconomy society based on solar energy should be one with “highly developed science and technology, highly abundant material wealth, and highly civilized society”; a world built on such a height of three foundations can achieve self-interest without harming others, rely on ecology to develop economy, and enjoy life during working. This is the perfect state of life, as well as the state of human peace and sustainable development.

2

Shen Changjian: An Analysis about the Causes of War among States—Interpretation of Man, the State and War: A Theoretical Analysis. Journal of Suzhou Institute of Education, 2010, (2).

Chapter 9

Concluding Remarks

In long-term observation, research, and thinking, the author has gradually realized that the bioeconomy is the inevitable path for human development. In 2017, General Secretary Xi Jinping clearly stated in his remarks at the Central Economic Work Conference that China should cultivate new business models such as the sharing economy, digital economy, bioeconomy, and modern supply chain.1 The reason why the author can have this idea stems from the author’s long-term exploration of the path of world economic development and innovation, the great rejuvenation of the Chinese nation, and human peace and sustainable development (referred to as “three explorations”), and from the author’s unique understanding of economics, the author’s judgment on the future of technological development, and the author’s long-term work practice. First, the bioeconomic theory will revolutionize traditional economics and lay the theoretical foundation for three explorations—economics studies how human society uses scarce resources to produce valuable commodities and distributes them among different individuals.2 The Evolution of Economic Thought3 tells us that economic has experienced the development of early economics represented by Greek Xenophon, Aristotle, and economists such as Adam Smith, Marx, Marshall, Keynes, etc. Various theoretical schools have merged, such as the mercantilist school, the Physiocratie school, the classical economics school, the neoclassical economics school, and the modern economics school. However, regarding these economic schools’ basic models, induction and deduction are commonly used and research methods are related to physics and mathematics. The limitations of these research models and methods have led to the plight of economics. They can only be used to summarize the past, but not to derive the future. This even led some people to believe 1

Xi Jinping: Remarks at the Central Economic Work Conference, 2017. Paul A Samuelson, William D Nordhaus: Economics (Nineteenth Edition). Translator: Xiao Chen. Beijing: The Commercial Press, 2012. 3 Blue S L, Grant R R.: The Evolution of Economic Thought (Chinese Edition, Eighth Edition). Translators: Qiu Xiaoyan et al. Beijing: Peking University Press, 2014. 2

© Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9_9

289

290

9 Concluding Remarks

that economics is not a science.4 The reason for this dilemma in economics is that there is a problem with the foundation of economic research because conventional economics studies rational economic persons. However, in reality, people are a collection of rationality and irrationality. There are no purely rational people in reality, and there are few purely irrational people. Therefore, how to study the economy in this state? The author believes that at present, conventional economics can no longer make breakthroughs. To break through, one must rely on life sciences and medicine, analyze people and their behaviors from the perspective of life sciences and medicine, and apply them to the field of economics to truly solve the problems of rationality and irrationality of economic persons. Some economists have begun to use life science-related concepts to promote economic research. For example, studies such as economic biology, stock market psychology, and neuronal economics have emerged. However, these studies have not constructed a new economic theory due to the lack of systematic, scientific, and profound life science, medicine, and economic skills. However, Pan’s bioeconomic theory based on life sciences and medicine will bring an unprecedented revolutionary breakthrough to economic research.5 Second, the bioeconomic theory will provide theoretical support for China’s great revival. The author believes that it is urgent to pay close attention to the promotion of China’s bioeconomy. Any country, as long as it takes the lead in seizing the opportunity of a technological change and potential leading industries, it is possible to lead the country into the top ranks. In the era of an agricultural economy, China took the lead in seizing the transformation from slash and burn to intensive cultivation, which led China to lead the world within 1800 years; in the era of the industrial economy, Britain seized the change from human power to mechanical power and seized the leading industry of the era—manufacturing, which has made the UK 200 years ahead of the world; in the era of the information economy, the United States has seized the transformation from analog to digital, and its leading digital industry has led the world into the global information era. At present, to achieve China’s great renaissance, China must firmly grasp this new economic era—the era of bioeconomy. Finally, the author believes that the bioeconomic theory will bring the world to a new stage of development that is a new stage dominated by the bioeconomy. There has never been a dominant industry in human economic history that has been prosperous forever. Dominant industries leading economic and social development are the historical law of economic development. Each era has its own dominant industry, and the dominant industry of each era leads to the great development. The dominant industry is derived from society’s needs, resulted from technological breakthroughs and adaptation to human development. At different times with different technological breakthroughs and social needs, different dominant industries adapt to human development. The dominant industry in the era of the agricultural economy is the 4

Alfred S. Eichner.: Why Economics Is Not However, a Science (Chinese Edition). Beijing: Peking University Press, 1990. 5 Dr. Pan Aihua: DNA Double-Helix will Lead Human into a Biological Century. Acta Scientiarum Naturalium Universitatis Pekinensis, vol. 39, issue 6), 2003.

9 Concluding Remarks

291

planting, and the great development of the industry has brought about the prosperity of the agricultural society; the dominant industry in the era of the industrial economy is manufacturing, and the great development of the industry has pushed the world into the industrialized society; the dominant industry in the era of the information economy is the digital industry, and the great development of the industry has led the global informatization and digitization; the leading industry in the coming bioeconomic era is the bioeconomic industry, and the great development of the industry will promote the peace and sustainable development of the world. In 1998, the author made three predictions. First, if the 2008 Olympic Games are held in China, the total number of gold medals in China will surpass that of the US to become number one. Second, in 2020, China’s GDP will surpass that of the US to become the largest economy. Third, the human being will enter the era of bioeconomy by 2020. The first prophecy has been confirmed. The second has also been realized. This is because according to IMF statistics, China’s total GDP in 2021 was 17.7 trillion US dollars, and the US GDP was 23.04 billion US dollars. According to the current economic development situation, China’s GDP will surpass that the US by 2030. This is calculated according to the average exchange rate. However, as Russian President Vladimir Putin pointed out at the Russian President’s annual press conference on December 20, 2019, China’s GDP has surpassed that of the United States and ranked first in the world in terms of total economic scale calculated according to purchasing power parity. The author believes that the third prediction, “human beings will enter the era of bioeconomy by 2020,” has been fulfilled. In the broad bioeconomy defined by the author, three landmark events for humans entering the bioeconomy era are proposed, the second of which is economic changes caused by biological events (mainly the plague, bioterrorism, and biological warfare). COVID-19 in 2020 has brought huge shocks to human society. Its effect will divide human beings into the pre-COVID and post-COVID eras, which will redivide the history of human development based on 2020. In this sense, the author’s third prophecy has been fulfilled. However, humanity’s entry into the bioeconomy era has just passed the threshold. The author has good reason to believe that the future development space of the bioeconomy will become increasingly larger, and the bioeconomy industry will become “the world’s number one industry.” According to one of the three major connotations of the bioeconomy—an economy based on economic theories and economic models established with the approaches of life sciences and medicine, the socialist market economy with Chinese characteristics is reflected in the economic form as a bioeconomy, and the development model of the socialist market economy with Chinese characteristics is the bioeconomy. Under the guidance of the socialist market economy with Chinese characteristics, China’s 40-year development has created a miracle of the world economy. As the author predicted in 1998, believe that the world has entered the era of China in 2020, and China will lead the development of the world economy and officially declare that humanity will enter the era of bioeconomy (Fig. 9.1).

292

9 Concluding Remarks

Fig. 9.1 Humans have entered the era of bioeconomy in 2020

May bioeconomy give the human being a fresh pair of eyes for them to see a bright future!

Postscript

The bioeconomic system composed of the bioeconomic theory, model and industry represents a brand-new theory, model, industry and system, both at home and abroad. Pan’s Bioeconomy: Theory and Practice have been successfully completed after multiple rounds of discussions and revisions so that more people can understand Pan’s Bioeconomy and ourexplorations of the path of the great rejuvenation of the Chinese nation, world economic innovation, peace and sustainable development. This is the first edition, and I believe more will follow as more people and enterprises become involved. Pan’s Bioeconomy: Theory and Practice will see more revisions and revised editions. The publishing of the book has filled me with mixed feelings, but more than that, I would like to say thank you to express my heartfelt gratitude and appreciation, which is not only the foundation of our lives but also the direction we must always persist. I would like to thank my parents for giving me three “genes”. The first is the genes of a Hunanese, who are typically hardworking, persistent and ambitious; the second is the genes of Robin Hood, because the Tongdao County where I was born was swarmed with bandits, which has cultivated my Robin Hood gene: unafraid of death, daring and never giving up; the third is the genes of an ethnic minority (My father is a Miao, my mother Han, my grandma on Mother’s side Dong), from which I have inherited the character of passionateness, hospitality, simplicity and kindness. It is because of these three genes that I have been able to create the Pan’s Bioeconomy and write this book. I would like to thank my relatives, friends, teachers and others from all walks of life I have encountered. My success would not be possible without their care, education, guidance and help, nor would my practice, application and scaleup of bioeconomy. At present, the bioeconomy theoretical system has been preliminarily verified and gone abroad recognized in the European Union. I owe a significant part of credit to them. I would like to thank my alma mater, Xiangya School of Medicine of Central South University, where I have sought truth, received systematic education and training in clinical medicine and obtained a degree in clinical medicine. I would like to thank the Space Medicine and Medical Engineering Research Institute, where in three years © Science Press 2023 A. Pan, Bioeconomy, https://doi.org/10.1007/978-981-19-6164-9

293

294

Postscript

of postgraduate study, I learned aerospace medicine, space biology and human body potential, which broadened my vision to a great extent and extended my horizons to the fields of space. I would also like to thank Peking University for the creation of the bioeconomic theory that could not be separated from its fertile soil. If the book could bring some insights and value to the world, it would be a continuation of the noble tradition of Peking University. I would like to thank Porfessor Ren Yanshen and Professor Chen Zhangliang, with whom we jointly founded Sinobioway by Weiming Lake at Peking University; I would like to thank the management team and staff of Sinobioway led by President Yang Xiaomin—It is their standing firm together with me and overcoming unimaginable difficulties that Sinobioway has achieved continuous growth in nearly three decades and has provided a practice platform for bioeconomy. As the place for the origin of the global bioeconomy, Sinobioway will lead the world into an era of bioeconomy. For the publishing of the book, I would also like to thank Dr. Zhang Junxiang and Dr. Liu Zhonghua as well as the Strategic Development Department of Sinobioway. They have made significant contributions to the research, writing and editing process of the book. In fact, this book is the translation of Bioeconomy: Theory and Practice (Chinses version) published in Science Press of China Science Publishing & Media Ltd in Jan 2020. The publishing of the book declared the completion of the theoretical framework of the bioeconomic system. Bioeconomics is a completely new economic science, and with the pulication of the English translation of this book, I want more people to know and study bioeconomy, and would like to have further discussion on the bioeconomic theory, the bioeconomic model and bioeconomic industry with more experts, scholars and enterprises. As humans would enter the era of bioeconomy in 2020, I would also like to dedicate this book to the era of bioeconomy. At my birthday banquet in 2018, I made my birthday announcements faced with relatives, friends and partners that I have fought together for many years: I will put aside my own well-being for the good of my mission. I firmly believe that the bioeconomy will provide a scientific foundation for the socialist market economy; it will provide a unique perspective for a true understanding of the world; and it will provide a new direction for human peace and sustainable development. With the publishing of the book, let us jointly welcome the arrival of the bioeconomy era and make our humble contribution to the establishment of the community of common destiny. Pan Aihua PKU Biocity, August, 2021