December, 2012 -- PROPOSED STRATEGIC RESEARCH AND DEVELOPMENT COLLABORATION PLATFORMS IN CHINA
Project Proposal initiated by: Ms. Wang Li Jun *Managing Director-Mainland China
Asia Pacific Infrastructures Investors Limited (HK)-APIIL
Lay the foundations to sustain the long-term economic value of a Foreign Company membrane-based products through the development of patentable membrane technologies in China. The future China patented membrane technologies will be commercialized worldwide thru Product Licensing (initially in China) to become the major source of long-term revenues for the Foreign Company.
Proposal to Achieve the above Mission
Asia Pacific Infrastructures Investors Limited (HK)-APIIL wants to invite a Foreign Company accomplish the above Mission through the “Establishment of Strategic Research and Development Collaboration Platforms in China” with an internationally-renowned China University (as the China R&D Partner) to further develop an in-depth and state-of-the art patentable membrane technologies that will help address China’s major and growing problems in the areas of:
1. Treating and Recycling of Agricultural Drainage Water
2. Milk production quality and
3. Nitrogen Oxide (NOx) pollution
The recently concluded 18th National Peoples Congress (NPC) approved several measures to advance “international cooperative platforms” in the field of “research and development” covering water treatment technologies with focus on agricultural applications, quality and safety in food and beverage processing and reduction of NOx pollutions caused by power plants and diesel engine-vehicle emissions. The NPC took note of the fact that the major problems indicated above are the by-products of China’s preoccupation with rapid growth and development over the last 30 years and such rapid growth took heavy tolls on the scarcity and quality of water sources, food quality and safety and pollution of the environment. As a result of the NPC deliberations, the current Chinese leadership now emphasizes quality and sustainable economic growth and improving the quality of peoples’ livelihood. It is to these ends that the Chinese government is now adopting suitable policies to further support the continuing of opening up reforms through encouragement of foreign expertise cooperation to help in addressing major environmental issues that are vital in achieving sustainable economic growth and improving the quality of peoples livelihood on a daily basis.
The above-mentioned China collaboration platforms will have a big advantage in facilitating/accelerating the approval of future China Patents (under the Madrid Protocol) benefitting both the China R&D partner and the Foreign Company.
Background Information that justifies and will define the success of the “Establishment of Strategic Research and Development Collaboraion Platforms in China”
Air Products Inc. (AP), a US-based industrial gas company (www.airproducts.com) has concluded several R&D agreements with several Chinese universities with the aim of becoming a strategic partner in China’s development of ‘green technology.” Air Products was the first industrial gas company to set up an internal R&D capability in China when it set up its Asia Technology Center in 2005. In the context of Air Products success in establishing R&D ventures in China, APIIL believes that this Proposal will be a lot different than the AP approach. Let’s take a look at the comparison between AP approach and this Proposal:
AP approach: AP strategy is very general in terms of defining what the R&D collaborations will achieve by stating that it aims to help China achieve “green technology” capability. Since there are several R&D collaborations with several universities, targeting to achieve “green technology”, there is a great potential for overlapping activities which will increase the cost of such R&D.
This Proposal approach: The Proposal is more focused with specific and well-defined platforms targeted to specifically solve China’s problems in treating and recycling agricultural drainage water, milk production quality and safety and reducing pollution from NOx emissions. There is only one China R&D partner thereby avoiding overlapping activities and allow for more concentrated efforts to achieve meaningful results from the collaborative efforts. In addition, the “Endorsement” strategy as explained below gives this Proposal the full and implied backing of China central government.
As a result, this Proposal is more focused on the pressing problems China is facing today: SAVING WATER, FOOD QUALITY AND POLLUTION. This kind of “FOCUSED RESEARCH AND DEVELOPMENT” address the immediate problems facing peoples livelihood on a daily basis.
Endorsement of the Proposal
To insure the success of the ‘Proposal”, APIIL, using the influence of the China partner, will seek official “Endorsements of the R&D Collaboration Platforms”from 3 major China institutions, namely: Ministry of Water, endorsing the China Partner-FX CO. R&D on Treating and Recycling of Agricultural Drainage Water; Ministry of Commerce, endorsing the China Partner–FX CO. R&D on Milk Production Safety and Quality and China Environmental Protection Agency (CEPA), endorsing the China Partner–FX CO. R&D on reducing NOx pollution. These Endorsements will be a major component of the Proposal that gives it a distinct and competitive advantage over the Air Products R&D strategies. These “Endorsements”, in essence, create a “triangular collaboration” wherein the Endorsement is at the tip of the pyramid supported by the base strength of the collaborating entities. APIIL firmly believes that these “Endorsements”, together with the international prestige of the China Partner, will insure the approval for patent application of the membrane technologies invented under the above R&D collaboration platforms.
Steps to move forward with the Proposal:
The coming China New Year (first week of February, 2013) and the upcoming new China leadership transition (March, 2013) are opportune times to commence negotiation to conclude the “Strategic Research and Development Collaboration Platforms” Proposals as mentioned above. With this in mind, APIIL suggests the following preliminary steps to commence as soon as possible:
1. APIIL and FX CO. will conclude and sign a “Project Consulting Agreement” (PCA) whereby APIIL will negotiate, in behalf of the FX CO., the conclusions of the “Strategic Research and Development Collaboration Platforms in China” with the China University as sole potential R&D partner in China. APIIL will submit a draft of the PCA for FX CO.’s review.
2. Upon signing of the PCA, APIIL will prepare a preparatory discussion agenda (to be approved by the FX CO.) which will also essentially the agenda for the initial meeting between APIIL and the China Partner. APIIL expects a very positive results from this initial meeting.
3. With the positive conclusion of the above initial meeting, official of the FX CO. will visit China to meet with the China Partner with the objective of laying the basis for signing a MOU to Establish the Strategic Research and Development Collaboration Platforms.
4. With the MOU concluded, the parties (China Partner, FX CO. and APIIL), with APIIL as overall project coordinator, will commence detailed discussion and deliberations on various aspects of the Collaboration Platforms, Endorsements mechanisms as discussed above in preparations for concluding the final agreement for the R&D Collaboration Platforms.
Timeline for the Proposal:
APIIL anticipates that the above steps will lead to a successful conclusion leading to a final agreement with the China Partner within a 12-month period. The successful conclusion will be underpinned by several key factors such as:
1. China badly needs the technologies to address the environmental issues mentioned above. They are vital to improving peoples livelihood on a daily basis, a main concern of the new China leadership.
2. The China new leadership has boldly expressed the policy of continuing the opening up reforms thru collaboration platforms to help sustain China economic development.
3. The milk scandal in 2008 has tarnished China’s dairy products reputation, both domestically and overseas. The Ministry of Commerce has an aggressive agenda to promote export of China’s dairy products and the safe and quality issue must be address immediately. Employment in the China dairy sector has plunged substantially with the closure of many enterprises undermining social stability.
A membrane–based FX CO. technologies need to build a strong “Niche Market” to withstand the ever-increasing global competitions in the membrane industry. APIIL is fully confident that the above Proposals present the most compelling opportunities for a FX CO. to build such ‘Niche Market”. The successful building and development of such Niche Market will give the FX CO. a strong competitive edge and advantage to establish a commanding market share of the membrane industry in China.
In addition, the “Potential Licensing” opportunities from the patented membrane products emanating from the R&D platforms will give the FX CO. a sustainable long-term revenue sources for years to come.