China Center for International Economic Exchanges

Wei Jianguo: Government and Enterprises Must Change During the High-quality Development Period
Date:Dec 27,2017    Source:CCIEE

When interviewed by “China Economic Forum”, a program launched by China’s Business News(CBN), Wei Jianguo, Vice Chairman of China Center for International Economic Exchanges and former Vice Minister of Commerce, pointed out that China needs high-quality development in the future and undoubtedly, entrepreneurs are the most dynamic component of China’s economy. High-quality development needs a good investment and business environment, which should promote equal rights, rules and opportunities. He emphasized that we need to establish an all-around, high-level and multi-dimensional opening-up in the future, and the government needs to play a better role in the period of high-quality development. Chinese entrepreneurs should have a proper mindset and a global strategy when making their business plan.

On November 30, the long-awaited tax cut of the Trump administration was finally passed in the US Senate, by a vote of 51:49. In the aspect of its impact on China and the rest of the world, I am afraid that I do not quite agree with my friend, Professor Zheng Yongnian, Director of the Institute of East Asian Studies at National University of Singapore, who suggested that this is only completed by the large enterprises, especially the US ones and will mainly benefit or affect themselves. In my opinion, the US tax reduction policy will also have an impact on China under the current circumstances.

China needs a comprehensive plan to deal with U.S. tax cuts

Some people may ask: Will the Chinese government put forward new policy to deal with the US tax cut? I think that China should come up with a plan to deal with it and this plan or approach must be comprehensive, and it should be implemented gradually.

Chinese entrepreneurs need to have a global perspective

Many of the Chinese entrepreneurs do not have a global strategy and vision when making business decisions. In order to make a well-informed decision, they must have a proper analysis of the global situation, such as the allocation of global resources and workforce.

We can solve the problem mentioned above by adhering to the three recommendations made by China’s president Xi Jinping. The first one is industry integration, including the global industrial integration. The second one is the interconnected development of different sectors. The last one is the win-win and outcome-sharing, which is the Belt and Road Initiative.

China needs high-quality development and Entrepreneurs are the most dynamic component of China’s economy

What China needs now is high-quality development. Just like the human body needs high-quality proteins, fats and cells, China’s economy needs every entrepreneur and student because you are the vitality of China’s economic development in the future.

In order to pursue a high-quality development, we need to create a good environment for investment and business, a better opening-up and the government needs to play a better role. More details can be described as follows.

High-quality development needs a good environment for investment and business

A good business environment should promote equality of rights, rules and opportunities. All the enterprises operate in China, regardless state-owned, private or foreign enterprises should have the equal rights, subject to the same rules and regulations and deserve to have the same opportunities for development. Only with these three kinds of equality, we have the chance to realize our dreams and goals.

The future development needs an all-around, high-level and multi-dimensional opening-up

Apart from equal rights, rules and opportunities, we must also create a better business environment, and a comprehensive, high-level and multi-dimensional opening-up. Specifically, we need to cut taxes, promote mutual benefit, and further upgrade our technology and industry. We should not worry about ourself, no one can defeat yourself unless you choose to give up. All the entrepreneurs here today should see the big picture and have a long-term vision.

Inappropriate mindset is the weakness of Chinese entrepreneurs when expanding business globally

Chinese entrepreneurs must understand what is their own weakness? Some people say funding is the major problem they have, while others say insufficient knowledge and poor foreign language skill. Those could be the problems they will have when expanding their business abroad, however, I think that the inappropriate mindset is the real weakness of most of the entrepreneurs. Some of them only stick to a family-style management philosophy, for example.

I think that there are many things need to be done by the current government, and the building of the Belt and Road is surely one of the most important tasks lies ahead. We must keep the entrepreneurs well-informed about the project, such as all the projects and opportunities for investment in the 65 countries and the 93 port cities along the belt and road region. Furthermore, we should offer Chinese companies appropriate guidance to go abroad, which is a vital task of the government in the near future.

The government will play a better role during the period of high-quality development

I believe that the government will play a better role when pursuing the high-quality development in 2018. Apart from the pilot free trade zone, I believe that China is looking for an even better model of free trade port. Shanghai is bound to have a better future but it must also feel the pressure. Thank you!

 

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