A tech startup company that reaches a $1-billion market value within 10 years is known as a unicorn, with such enterprises recently becoming a hot topic in China. Many domestic and international research institutes have analyzed Chinese unicorn companies to find out why they have experienced explosive growth in both number and scale within a short period of time.

According to last year's China-U.S. Unicorn Research Report released by global audit and consultant firm Deloitte, China had 98 unicorn enterprises, ranking second worldwide behind the United States and accounting for 38.9 percent of the total.

The rapid rise of unicorn companies not only showcases the rise of China's scientific and technological strength but also enables ordinary people to benefit from scientific innovation. For instance, ride-hailing company Didi Chuxing, which utilizes Internet technology and big data, has made it easier for people to take a taxi or hitch a ride.

The thriving of unicorn companies has resulted from China's economic transformation and upgrading. Its economy has entered a new normal of slower but more efficient growth since the 18th National Congress of the Communist Party of China held in 2012. As economic restructuring and upgrading accelerates, emerging industries such as electronics, information technology and intelligent manufacturing, which have produced the most unicorn companies, have received more government support and private funding.

The increase in the number of venture capital firms and the evolvement of the equity market to become multi-layered have expanded the channels for startups to secure funding, providing a solid financial foundation for unicorns. Funding is especially important for hi-tech companies whose core competitiveness relies on a huge investment of capital. The mass entrepreneurship and innovation campaign championed by the Chinese Government has also contributed to the rapid growth of unicorns. It has improved the business environment and stimulated the enthusiasm for starting businesses, leading to the establishment of many of today's unicorns.

China's human resource development strategy has provided support for unicorns as well. Human resources are the most important force for starting businesses. The Chinese Government has made cultivating scientific and innovative talent its top priority in recent years, proving effective as more and more returned overseas Chinese and local talent embrace entrepreneurship.

The heated development of unicorns in China mirrors its transition to high-quality growth. The Chinese Government has provided a convenient and relaxed market environment for such companies and introduced favorable policies for them to be listed on the domestic stock market. There will certainly be more and more unicorns in China in the future, which will greatly contribute to the countries' economic growth.