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 Huiyun Capital Group, and sponsored by Huiyun Real Estate. He provided investors with diverse wisdom on overseas investment management, offering insightful remarks that hold significant guidance for entrepreneurs in the new era. Want to know what important information he shared? We are pleased to present the authentic content of his speech!
Dictated by | Feng Lun Edited by | Worldway Editor
Good afternoon, friends and distinguished guests. I am very pleased to be here at this time to discuss the topic of trade and investment between Chinese enterprises and the European Union. I am also 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
As everyone knows, over the past 40 years, 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 outward investment. In fact, 40 years ago, Chinese private enterprises were not non-existent, 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? In our 40 years of reform, 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 form a consensus on reform? It is very interesting. In the first decade, the consensus we formed was what not to do; that was the consensus. 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, not to engage in political movements, but to focus on developing the economy. This consensus led all of us to start studying the issue of economic development. In the second decade, we also had a consensus, which was what to engage in and what to do. 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 a market economy and how to develop it. We took one of the most important steps, 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 laws and regulations that are generally in line with international standards, protecting market economy entities while promoting the development of the market economy. How many such regulations are there? More than 250. 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. We understood that it is not easy to change from amateur players to professional players, and these professional players are called entrepreneurs.
In the first decade, we were all amateur players. We only knew how to make money, but we didn't 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. Of course, we also participated in Southeast Asia and globalization—every place we believe 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, do business in a sunny, honest, and professional manner in any corner of the world.
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. The so-called global perspective means that 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.
So as a private enterprise, today we still find that if we want to develop sustainably, go further, and grow better, we still need to support and embrace our common WorldWay rules and support the Chinese government in building a sound 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 choice opportunities. The first time was at the end of the Republic of China, at the end of the Qing Dynasty and the beginning of the Ming Dynasty. At that time, some government-supervised and merchant-managed enterprises and some private enterprises in the late Qing Dynasty finally entered the Republic of China. There was a historical choice opportunity to adapt to the rules of the game of the newly emerging Republic of China at that time. 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 choice opportunity. The third time was in 1956, when private enterprises faced another choice opportunity. The fourth time was since 1978, when private enterprises had another choice opportunity.
These four choice opportunities for private enterprises are very interesting. No one has made all the right choices, because no private enterprise can live for more than 50 years. There is no one who has made the right choice three times. Is there anyone who has made the right choice twice? Yes, but very few. To make the right choice twice, there must be a condition: the first time is your 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 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 up 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 the 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, and it should be in my pocket wherever it goes. So 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 the child goes to for study, employment, work, or starting a family, they will have better opportunities and faster growth; this is called growth. We hope that children can develop smoothly and grow rapidly in any place. Similarly, we require our money to have growth, which means there must be a return. If the money goes further and the return is less, we will be very anxious, just like when a child is unemployed, we can't 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? Take a plane, take 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 in our future going global and investment. The EU's entire legal system, business environment, and environmental protection in technological innovation 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 point of view, we still have great enthusiasm for participating in China-Europe 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 and broader openness. So we look forward to our country and the world's economy being able to follow everyone's common rules in this deeper and broader openness, in a legal and competitive environment, and on the basis of complementarity and mutual benefit, so that our private enterprises can 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 to China were invited to attend. More than 1,000 guests, including political leaders, business giants, and academic experts from China and abroad, actively participated. Many well-known media reported on the whole process. The venue was full, and seats were 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 using good government relations to open 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, standardizing the model of the European property immigration industry;
5. The "Paphos Night" event held by the Worldway Group in Beijing and Shanghai is China's first investment and cultural exchange event with a European city as the theme.
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