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The Chinese Entrepreneur Diaspora
Although the WCEC is only 20 years old, it honours a centuries-old phenomenon.Way back in the 2nd century B.C., during the Han dynasty, Chinese envoys explored the Western Regions – the Central Asian lands far west of China, and traders opened the Silk Road to trade with Rome.Later, from the Song dynasty a thousand years ago, overseas Chinese communities sprung up all over Southeast Asia.In the last two centuries, Chinese emigrated to every continent in the world, often to work as labourers in plantations, railroads, or mines.Wherever they went, Chinese communities thrived.They shared a culture of hard work and thrift, and focused on preserving family ties and educating their children.Many worked their way up from poor beginnings to become succeful businemen.They may not have had good family backgrounds, or much education, but they had native ability and drive, keen busine instincts and the resilience to overcome setbacks.Often, prominent businemen became community leaders and philanthropists, helping to organise the local community and contributing to society in many ways.This was especially true in Southeast Asia, where Chinese communities got together to support one another in areas where colonial governments were unable to aist.For instance, in Singapore, succeful businemen like Tan Kah Kee, Lee Kong Chian and Tan Tock Seng set up schools, hospitals and other public institutions which remain till this day.The same happened in many other countries.Although Chinese settled down around the world, their identities, family ties and loyalties often remained with China.They not only supported families back home, but also political causes in China.For instance, overseas Chinese played an important part in the 1911 Chinese Revolution.In the last years of the Qing dynasty, Chinese communities and businees all around the Pacific Rim, as far away as Hawaii and San Francisco, supported Sun Yat Sen and the Tong Meng Hui.They set up offices around the world and donated funds to the uprisings.Some overseas Chinese returned to China to fight the hated Manchus and were martyred.These included Chinese from Singapore, whose contributions and those of the Singaporean Chinese community will be displayed in the Sun Yat Sen Villa when it re-opens on Saturday.In the Sino-Japan war too, overseas
Chinese communities raised funds and rallied to support the motherland, which for them was China.Over time, the sense of identity of overseas Chinese communities has changed.The international context has altered.In an age of nation states, overseas Chinese are citizens of the countries they belong to, and see themselves as such;their national loyalties take precedence over ethnic identities.Thus Singaporean Chinese, after decades of nation-building and living in a multi-cultural society, see themselves as Singaporeans first, and ethnic Chinese second.Singaporean Chinese have become quite different from Chinese from China or other countries.As a result, new immigrants or foreign workers who are ethnic Chinese but who are new to Singapore take a while to adjust to our norms.But one thing remains unchanged – many ethnic Chinese are still succeful entrepreneurs, and we are happy to welcome many of you here to this convention.New Global Environment, New Chinese Enterprise, New Impetus
The global environment is continuing to evolve.China’s rapid growth and transformation will continue for many more years.In the three decades since Deng Xiaoping launched his policy of reform and liberalisation in 1978, China has lifted more than 600 million of its people out of poverty, and become the second-largest economy in the world with a GDP of US$5 trillion.China’s role in the world will continue to grow.As China’s economy develops, new Chinese enterprises are emerging.More are becoming large established companies with significant international operations.For instance, the number of Chinese companies in the Fortune Global 500 list has increased from 12 to 61 in the last 10 years.Other Chinese companies may not be as international, but they dominate their domestic markets, such as baidu.com in China.Many other small Chinese companies are starting up, hoping to one day join the ranks of succeful MNCs.Chinese entrepreneurs have played an important role in China’s modernisation and development.Ethnic Chinese capital from around the world provided initial investments for new industries.Overseas Chinese linked up international Chinese businees with contacts in China, perhaps in their ancestral provinces or cities.In the proce, they both drew upon and built up guanxi with their fellow Chinese around the world.Outside China, the global economy is going through a difficult period.The US faces major fiscal difficulties and bitter political gridlock.The EU’s debt crisis reflects deep structural problems regarding the future of the Eurozone.Japan’s economic weakne and political problems continue to hamper its development.The large international trade and fiscal imbalances that contributed to the global economic crisis have not gone away.But not everything is doom and gloom.Notwithstanding their present difficulties, the US, EU and Japan are powerful economies, with sophisticated technology, advanced R&D and large markets.It will take China many years to catch up with them, and they will remain major players on the global economy for a long time to come.In Southeast Asia, ASEAN member countries are enjoying steady growth.They are conscious of the competition posed by China and India, and are enhancing their competitivene through regional integration among ASEAN countries, as well as Free Trade Agreements with their main trading partners.With a combined population of 500 million people and a growing middle-cla, ASEAN countries offer many opportunities for businees.In addition, new technologies are creating new opportunities.They are fundamentally altering the busine landscape and restructuring jobs and entire industries.They have increased connectivity, shrunk global supply chains and opened new markets.It is a dynamic environment, which favours nimble and creative companies.Entrepreneurship will be at a premium.All entrepreneurs know that the best opportunities are found in the most difficult situations.Thus, it is all the more important for entrepreneurs to stay optimistic, discern hidden poibilities and pursue their busine ideas paionately.Your succe will not only benefit yourselves, but will help to rejuvenate economies and create a brighter future for everyone.Within this new environment, Singapore will continue to seek to stand out as a key node in the global marketplace.Entrepreneurs and companies can take advantage of our cultural diversity, world-cla busine infrastructure and connections as a Global-Asia hub to grow and prosper.We aim to make Singapore a useful partner to Chinese entrepreneurs all around the world and succeed together with all of you.Looking ahead, what role can Chinese entrepreneurs play in this new environment? I offer three suggestions – enhancing links, modernising companies, and strengthening communities.Firstly, Chinese entrepreneurs can continue enhancing their links with one another.Chinese entrepreneurs are located all over the world, from US and Australia to Africa and Latin America, and have adapted to their respective local contexts.At the same time, they maintain ties with other Chinese entrepreneurs around the world by their common cultures and values.This global network is a strategic resource for Chinese entrepreneurs everywhere, as it is for other diasporas which have been succeful in busine, such as the Jews and Sindhis.However, Chinese entrepreneurs cannot rely on guanxi alone for succe.In China itself, guanxi has been particularly important.But as China opens up more to the world, and as more Chinese travel and operate overseas, they will have a wider choice of partners and networks to work with, be it for funding, busine collaborations or acce to new markets.This is already happening.Hence, Chinese entrepreneurs have to upgrade themselves and raise their game to remain useful and to keep their market positions.Secondly, Chinese entrepreneurs should strive to build modern and profeional businees.Many Chinese companies start out as family-owned enterprises, but such a basis for a busine has its limits.Relying on family members makes it difficult to scale the busine, for example to manage subsidiaries or overseas offices.Succeion is often an iue, beyond the founding generation.It also makes it hard to compete against global businees that hire and promote the best talent from all over the world, regardle of family ties.Beyond a certain point as companies grow and expand, the family structure no longer works.These businees have to adopt a more systematic and profeional structure, including hiring talent from around the world, appointing them to key positions and establishing a more institutionalised HR system.Sometimes the founders are reluctant to do so as they fear “losing control” over their busine, but this is a neceary step for the company to compete internationally and be truly world-cla.One company which has made this leap is Huawei Technologies.Founded in 1988, Huawei’s founders realised that to succeed, Huawei would have to
benchmark its procees and systems to world-cla companies.It hired IBM Consulting to revamp its HR, IT, Finance and R&D systems when it began to internationalise, and learnt Western management systems to enhance its competitivene.Today, Huawei is a Fortune Global 500 company.That is the way to go.Finally, Chinese entrepreneurs should strengthen links with their local communities.They should go beyond merely growing the busine, to share their succe with the communities they belong to, and contribute to the societies that enabled them to succeed.In today’s globalised world, when the gap between winners and losers is wider, having a social conscience is particularly important, both for individuals and for firms.Succeful entrepreneurs and businees which help others through philanthropy or community work will enhance their standing with the local community, and help gain them goodwill that is crucial for the long term.Conclusion
Conventions like the WCEC are very useful to exploring these iues.I am glad that several of these topics will be discued at the Convention’s plenaries and learning journeys.Beyond these seions, I also hope that participants will make use of every opportunity to interact informally, strengthen their networks and pursue new busine opportunities with one another.I wish all participants a fruitful Convention, and I now declare the 11th World Chinese Entrepreneurs Convention open.
The Chinese Entrepreneur DiasporaAlthough the WCEC is only 20 years old, it honours a centuries-old phenomenon.Way back in the 2nd century B.C., during the Han......
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