Premier Li Keqiang hailed the business model of bike sharing company Mobike for driving the development of the traditional bicycle manufacturing industry, during a meeting with experts and entrepreneurs on Jan 13.

Mobike is an internet company that rents bicycles using a mobile app and has helped revolutionize the business model of service and manufacturing industries by bringing together the internet and transportation.

Mobike founder Hu Weiwei participated in the meeting with Premier Li who is very interested in the success of the business.

“The business model of Mobike looks like a revolution. The basis of such a revolution is the bicycle itself, which means Mobike needs the support of the real economy. But on the other hand, the real economy should also be driven by service revolution,” Premier Li commented on the relationship between virtual and real economies.

Informed that it only took Mobike less than a year to own 800,000 bicycles for rent, Premier Li spoke highly of internet companies that play an important role in driving the real economy.

The development of the emerging service industry can create huge opportunities for the manufacturing industry, Premier Li said.

It is estimated that at least 1.6 million bicycles have been manufactured for the internet bicycle service, dramatically boosting the traditional bicycle manufacturing industry.

China’s economic structure is undergoing profound change amid the transition of old and new driving forces.

The Premier said that changes to the manufacturing industry driven by internet and service industry should be advanced.

The Chinese market is huge and Chinese people’s wisdom is unlimited, he said.

As China implements an innovation-driven strategy, mass entrepreneurship and innovation is a significant backup to transform old driving forces with new ones. During such progress, many unexpected new models will spring up, he added.