Recently, Mr. Feng Lun, Chairman of the Worldway Wealth Club and a renowned Chinese entrepreneur, delivered a keynote speech titled "Going Global: The Survival and Development of Chinese Enterprises" at the 2018 China-Europe Trade and Investment Forum. The forum was hosted by the EU Working Committee of the China Association for the Promotion of European Economic and Technical Cooperation, co-organized by the Worldway Wealth Club, organized by the Worldway Group and Huaiyun Capital Group, and sponsored by Huaiyun Real Estate. He shared diverse management wisdom for overseas investment, offering insightful remarks that hold significant guidance for entrepreneurs in the new era. Want to know what important information he shared? We present the authentic content of his speech for you!
Dictated by | Feng Lun; Compiled by | Worldway Editors
Good afternoon, friends and guests. I am very pleased to discuss the topic of trade and investment between Chinese enterprises and the European Union at this time, and I am particularly willing to talk about how Chinese private enterprises can better go global and participate in this wave of trade and investment.
Mr. Feng Lun, Chairman of the Worldway Wealth Club and a renowned Chinese entrepreneur, delivering a keynote speech at the 2018 China-Europe Trade and Investment Forum
Over the past 40 years, as everyone knows, China's economic and social development has achieved remarkable results. An important pillar of these achievements lies in the addition of a special group: private enterprises! Over the past 40 years, this group has become an important engine for China's economic growth and a particularly active force in foreign investment. In fact, Chinese private enterprises were not non-existent 40 years ago, but they were extremely weak, so small that they were almost invisible. Since 1978, how have our private enterprises grown step by step? One important aspect is "going global."
Why do I say this? Regarding our reforms over the past 40 years, it should be said that in the first 30 years, we basically established laws and regulations adapted to the market economy, which is very important.
In our first decade, how did we reach a consensus on reform? It is very interesting; in the first decade, our consensus was on what not to do. We had just ended the Cultural Revolution, so in the first period of reform, our consensus was not to engage in class struggle, not to follow the Soviet Stalinist model, not to engage in a rigid planned economy, and not to engage in political movements, but to focus on developing the economy. This consensus allowed all of us to start studying the issue of economic development. In the second decade, we also had a consensus, which was what to do and what to engage in. At that time, we called it developing a commodity economy and developing a market economy; this was the most important consensus of the second decade of reform. In the third decade, we further reached a consensus on how to develop the market economy. We took the most important step, which was joining the WTO, following the rules and methods of doing business worldwide, and providing a new stage and space for the development of Chinese enterprises. Another very important thing is that from the first Company Law of China in 1993 to the end of the third decade, China has successively introduced more than 250 laws and regulations that are largely in line with international standards, protecting market economy entities while promoting the development of the market economy. It is precisely because of the establishment of this set of rules of the game and the introduction of so many regulations that in the third decade, all Chinese enterprises, including private enterprises like ours, understood that doing business must be done according to the rules, and we understood that it is not easy to transform from amateur players to professional players. This professional player is called an entrepreneur.
In the first decade, we were all amateur players; we only knew how to make money, but we did not know how to rationally manage our enterprises and promote their growth according to laws and regulations in a market economy. However, in the third decade, we fully realized that we must become professional players in an environment of unified WorldWay rules and laws and regulations that are in line with the world, allowing our enterprises to do business in China while also learning to do business in the world. It is precisely because of this that in the fourth decade, we saw more and more private enterprises able to participate in China-Europe economic trade and investment with the posture of professional players. Not only that, we also participated in China-US economic trade and investment, and at the same time, we participated in the Belt and Road investment, and of course, we also participated in Southeast Asia and globalization—everywhere we thought entrepreneurs should go. It is precisely because of this that China's economy has grown, and Chinese entrepreneurs have also grown during this stage.
So, when we specifically review this history, it is actually to strengthen our confidence that private enterprises must still go global! The best way is to follow the rules of doing business worldwide, follow the laws and regulations that are in line with the world, protect the interests of our own enterprises, and at the same time, be able to do business in any corner of the world in a transparent, honest, and professional manner.
We usually talk about good enterprises; what is a good enterprise? It means having a global perspective, new professional capabilities, and local expertise in China; none of these things can be missing. A global perspective means we must act according to the rules of doing business worldwide. Professional capability means that in the process of growth, any enterprise can only do what it is best at, most professional in, and competitive in. Of course, local expertise is also very important; doing business in any corner of the world requires local expertise.
Therefore, as private enterprises, today we still find that if we want to develop sustainably, go further, and grow better, we must still support and embrace our common WorldWay rules and support the Chinese government in building a legal and regulatory system adapted to the market economy on the basis of the past 30 years. From a historical perspective, this judgment of ours is also very reasonable. In the past 100 years, Chinese private enterprises have had four major historical opportunities for choice. The first time was at the end of the Qing Dynasty and the beginning of the Republic of China; at that time, some government-supervised and merchant-managed enterprises and private enterprises had a historical opportunity to choose how to enter the Republic of China and how to adapt to the new rules of the game of the Republic of China. The second time was from the end of the War of Resistance Against Japan in 1945 to 1949; during this period, private enterprises had another opportunity to choose. The third time was in 1956, when private enterprises faced another opportunity to choose. The fourth time was since 1978, when private enterprises had another opportunity to choose.
These four opportunities for private enterprises to choose are very interesting. No one has made the right choice every time, because no private enterprise has been able to survive for 50 years. There is no one who has chosen correctly three times either. Is there anyone who has chosen correctly twice? Yes, but very few. To choose correctly twice, there must be a condition: the first time is one's own choice, and the second time is by chance. The first relies on wisdom, and the second relies on luck. One of our most correct choices is to go global. In any major historical turning point, in a period of rapid social and economic change, one way for private enterprises to make a correct historical choice is to go global and then wait for the second time. If we can persist for 100 years, we may have the third or fourth challenge. But if not, we often end after making the right choice the first time. In the 40 years since the reform and opening up, the most correct choice we have made, not only for the government but also for private enterprises, is entrepreneurship. Creating our own enterprises, persisting, developing, going global, and becoming a driving force and engine for China's economic growth.
So, where are the places that private enterprises are concerned about and sensitive to? It is very interesting. Our relationship with money is equivalent to our relationship with our children; we only care about three things. The first thing is that this child must be safe wherever they go; this is a requirement for the security of property rights. This money is in my pocket, so it should be in my pocket wherever it goes. Therefore, our requirement for the security of property is the highest, just like our requirement for the safety of our children. The second thing is that we hope that no matter which country this child goes to for study, employment, work, or starting a family, they will have better opportunities and faster growth; this is called growth potential. We hope that children can develop smoothly and grow rapidly anywhere. Similarly, we require our money to have growth potential, which means it must have returns. If the money goes further and the final return is less, we will be very anxious, just like when a child is unemployed, and we cannot sleep. The third thing is, if your child runs to a very far place and suddenly a missile hits, there is a terrorist attack, a disaster, or an earthquake, what is the first thing we do? We will call them and tell them to come home immediately. What does it mean to come home immediately? Taking a plane, taking a car, no matter what method is used, run back immediately; this is called liquidity. If our funds are invested and we encounter risks or difficulties outside, we naturally hope that the assets have liquidity and can reduce losses while improving their security.
In short, this concern of private enterprises and a unique way of connecting to interests make our requirements for security, growth, and liquidity higher when we go global in the future. The entire legal system, business environment, and environmental protection of scientific and technological innovation in the EU are attractive to Chinese private enterprises. It is precisely because of this that many Chinese private enterprises are constantly seeking investment and development in Europe.
Finally, from a personal perspective, we still have great enthusiasm for participating in China-EU economic and trade cooperation. In the future, China will continue to open up, not only maintaining openness on the original basis but also having a wider range and deeper openness. So we look forward to our country and the global economy being able to follow common rules in this deeper openness, and in a legal and competitive environment, on the basis of complementarity and mutual benefit, let our private enterprises have a larger space for development, so that we will not regret going global and can grow and develop better after going global. Thank you all.
2018 China-Europe Trade and Investment Forum, ambassadors, ministers, counselors, and other officials from 18 European countries were invited to attend, and more than 1,000 guests including political leaders, business tycoons, and academic experts from China and abroad actively participated. Many well-known media outlets followed and reported on the whole process, and the venue was full, with seats continuously added! This is the first large-scale China-Europe forum organized by a non-governmental organization in China, which will go down in history! It is encouraging and exciting!
The successful holding of the 2018 China-Europe Trade and Investment Forum once again confirms the professional brand strength of the Worldway Group and its status in the European investment immigration industry!
Since its establishment, the Worldway Group has been focusing on investment immigration, creating countless "firsts" in the industry. For more than 20 years, the Worldway Group has established many branches across the country, set up three national documentation centers in Beijing, Shanghai, and Shenzhen, and set up multiple overseas customer service centers in Asia, North America, and Europe, condensing brand charm and creating a glorious image as a leader in the investment immigration industry and one of the top 500 Asian brands.
Reasons to Choose Worldway for European Investment Immigration
Worldway has been deeply involved in the European investment immigration industry for many years, with a spirit of innovation, daring to be the first in the industry, using professional and excellent business capabilities and comprehensive and perfect services to promote the development of the industry, and with good government relations, opening a convenient channel for investors to European countries, helping many families realize their European dreams.
1. In 2011, it was one of the first to introduce the Cyprus Investment Residency Program to China, opening the first year of European investment immigration;
2. In July 2013, it was one of the first to join hands with the Greek Embassy in China to introduce "Greek Property Immigration" to China;
3. It pioneered the "2013 European Immigration Year" and held China's first large-scale "European Property Exhibition" with Europe as the theme in cities such as Beijing, Shanghai, Shenzhen, and Qingdao, and the trend of European investment immigration swept across China;
4. In 2013, the Worldway Group initiated the "Shanghai Declaration" signed by developers and lawyers from many European countries, setting a model for the European property immigration industry;
5. The "Paphos Night" event held by the Worldway Group in Beijing and Shanghai was the first investment and cultural exchange event in China with a European city as the theme.
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