Full coverage: G20 Hangzhou Summit

Innovation was also highlighted in the 2016 G20 Hangzhou Summit’s slogan. It has been an important driver behind the Chinese economy. Let's take a look at how Chinese companies work to innovate.

Innovation leading the way. Alibaba Group, China’s largest e-commerce company, is not only famously good at online retailing, but has also outperformed in e-finance. This can be seen from its widely used e-wallet, to its newly launched online-only bank, MYbank.

"Alibaba and Ant Financial have collected a huge database of customers' transactions. We will analyse the data, and evaluate the credibility of customers," said Yu Shengfa, president of MYbank.

Alibaba developed new technology for its e-finance operations. Its facial recognition technology can help customers to open accounts without their identities needing to be verified.

Innovation is not only valued by tech companies. The traditional manufacturing industry also works at it. For example, clothing companies under pressure from increasing labour costs and competition pay a lot to come up with innovative designs.

"Customers are more demanding now. If they don't like the design of our clothes, they won't buy them, even if the price is low," said Li Wenjie, manager of Guangzhou Duoyi Clothing & Fashion Co. Ltd.

China has now broken into the world's top 25 innovative economies for the first time. Over 500 national incubators have been opened across the country to encourage innovative start-ups. Hopes are high that the promotion of innovation could activate a new engine for China’s economy.