Cloud Computing Boosts China’s ‘Specialized, Refined, New’ Enterprises – Alibaba Cloud Insights

Zhang Jianfeng, former CTO of Alibaba Group and current President of Alibaba Cloud Intelligence, was interviewed by Xinhua Net during the 2022 Zhejiang Two Sessions. He shared his views on the integration of digital technology with the real economy, the development opportunities for “specialized, refined, new” (专精特新) enterprises, and the prospects and challenges for cloud computing in the 14th Five‑Year Plan.

Digital Technology and the Real Economy

Zhang emphasized that digitalization is a highly deterministic trend that has already begun to transform society, citing Zhejiang’s “once‑run” initiative and the pandemic‑driven health‑code system as concrete examples. He argued that the true potential of digital technology is still untapped and that deeper integration with all industries is essential.

He highlighted that many Alibaba Cloud AI engineers, often PhDs, spend half their time in the field—visiting farms, cement plants, and waste‑incineration facilities—to solve practical production problems, underscoring the importance of field‑level practice for advanced technology.

“Specialized, Refined, New” Enterprises and Digital Opportunities

According to Zhang, enterprises that skillfully apply digital technology tend to become “specialized, refined, new” firms with strong market competitiveness and remarkable resilience during the pandemic. Zhejiang provides a fertile environment for such firms, with a large base of SMEs focused on mechanical processing, equipment manufacturing, electronics, medical devices, and new materials.

These SMEs need a distinct digitalization path: traditional ERP solutions are costly and inefficient, whereas low‑code platforms can deliver visible, affordable, and effective digital tools.

Low‑Code Platforms Empowering SMEs

Low‑code development enables business‑savvy employees to create applications through drag‑and‑drop interfaces. Zhang cited the example of Fenghua New Energy, a battery supplier for overseas smartphones, which built a real‑time inventory app using DingTalk low‑code; workers scan product codes with a PDA, instantly updating stock data.

He noted that while software vendors traditionally built manufacturing systems, the most knowledgeable users are the frontline staff, and low‑code empowers them to digitize processes directly.

Policy Recommendations for SME Digitalization

Zhang proposed a three‑tier approach: first, establish a “Zhejiang Specialized‑New Digital Platform” to bridge the digital divide for SMEs through cloud resources, public data sharing, and industry data integration; second, create a localized service center to connect SMEs with markets, talent, and technology; third, collaborate with banks, securities firms, and investment banks to build a comprehensive financing chain—from bonds to equity—to support the growth of national‑level specialized‑new “small giants.”

Cloud Computing Outlook for the 14th Five‑Year Plan

He observed that China’s booming digital economy has turned the nation into a premier testing ground for digital technologies. In the coming years, cloud will become the foundation of a new technology ecosystem, characterized by deep integration of cloud, network, and edge.

At the infrastructure layer, cloud will define hardware, driving self‑developed chips, servers, and operating systems. At the software layer, open‑source communities will become innovation hubs, spawning low‑code and other developer‑friendly models. At the application layer, 5G acceleration will shift computation and data to the cloud, giving rise to cloud PCs, the metaverse, autonomous driving, and other emerging domains.

Looking ahead, Alibaba Cloud will increase investment in foundational and frontier technologies, including artificial intelligence, custom chips, quantum computing, and blockchain, to achieve systematic breakthroughs.