German AI pioneer says talent cultivation key to China's innovation drive

A German artificial intelligence pioneer and recipient of China's top science cooperation award for foreign scientists has said that cultivating top talent is essential to advancing sci-tech research and innovation, underscoring the importance of China's emphasis on talent development in its 15th Five-Year Plan (2026-2030).

Speaking in an interview with China Media Group (CMG) aired on Friday, Otto Heinrich Herzog, a member of the German National Academy of Science and Engineering and a foreign member of the Chinese Academy of Engineering, said talent provides the foundation for innovation and long-term technological progress.

"Of course you need talents to get progress. You need talents in research, you need entrepreneurs, you need engineers, and then a country will make progress. So looking at talents in the first place is certainly a very, very good first step, because without research, a lot of innovations wouldn't be possible," Herzog said.

Asked what had motivated him to become so deeply involved in China's AI development and policy research, Herzog said his work has always been driven by a passion for research and a desire to offer well-founded advice.

"I'm interested in promoting research in directions where I feel it would be useful. As a researcher, if I'm asked what do you think about research, I give a reply. Sometimes it's hard work because you would like to give well-founded advice. I was telling somebody (lately), I never worked in my life, I always had hobbies," he said.

Herzog was among nine foreign scientists who received the 2025 China International Science and Technology Cooperation Award at a national science and technology conference held in Beijing on July 8.

The award is China's highest scientific honor for foreign nationals, recognizing their outstanding contributions to scientific and technological cooperation with China.

Herzog also founded Germany's first AI research center in 1985 and led the country's first AI research team. Since coming to China in 2014, he has promoted interdisciplinary research integrating artificial intelligence with urban planning.

Since 2015, he has served as principal scientist of the Collaborative Innovation Center for Intelligent Planning of the Yangtze River Delta Urban Agglomeration, contributing to AI research and China-Germany cooperation in science and technology.

German AI pioneer says talent cultivation key to China's innovation drive

Japan's Cabinet Office on Friday released its annual report on the Japanese economy and public finance, or the economic white paper, for fiscal 2026, noting that Japan's economic recovery continues to face multiple challenges, including imported inflation driven by the Middle East conflict and persistent structural problems such as labor shortages.

According to the white paper, heightened tensions in the Middle East have pushed up international crude oil prices, with the increase filtering through supply chains to raise costs for petroleum and coal products, chemicals and other goods.

Although the Japanese government has sought to cushion the impact by providing fuel subsidies, releasing oil reserves, and promoting alternative sourcing of raw materials, higher import costs could still squeeze corporate profits and add to the financial burden on households.

The white paper also identifies labor shortages as one of the most significant structural challenges facing Japan's economy.

In recent years, higher labor force participation among women and the elderly has helped ease pressure caused by the shrinking workforce. Nevertheless, labor shortages continue to worsen, particularly at small and medium-sized enterprises and in the non-manufacturing sector.

At the same time, structural mismatches in the labor market persist, with skilled positions in fields such as construction and nursing care remaining chronically difficult to fill.

The report further notes that Japan's potential economic growth rate remains low. Insufficient capital accumulation continues to curb growth momentum, while investment in areas such as digitalization and automation is not enough to fully offset the impact of the country's declining working population.

The Japanese government publishes the white paper on the economy and public finance every year to analyze the country's economic conditions, fiscal performance, and employment situation, while also providing recommendations for future economic and fiscal policies.

Inflation, labor shortages weigh on Japan's growth: economic white paper