Tackling Challenges under the New Realities
Author: Time:13-03-11

 From April 21 to 23, 2012, nearly 800 people including government officials, business leaders and scholars were gathered in Wuhan for the 5th Annual Summit of Green Companies organized by the China Entrepreneur Club (CEC). The theme of the Summit is “Obligation and Innovation under New Realities”, aiming to explore the solutions to the challenges facing by companies at the turning point of China’s economy.

“New Realities”, the key words of the Summit, indicated a new global climate clouded with increasing political and economic uncertainties. On one hand, the aftermath of the financial crisis in the most powerful economies have impacted the Chinese economy in one way or another; on the other hand, increasing uncertainties of China’s domestic economic policies and political systems are fueling the change of the engines of China’s soaring growth. Chinese enterprises are facing substantial challenges. 

In spite of the looming outlook, the primary principle of the Chinese entrepreneurs is to stay committed to their obligations. Liu Chuanzhi  shared how he kept his feet on the ground taking care of his own companies. The primary goal of a company is to always offer high quality, uphold integrity and fulfill social responsibilities by providing more tax revenues to the government, creating more jobs, practicing integral business, realizing modest growth reducing waste, and many other means. A successful business establishment should incorporate the individual pursuits of its employees into the company’s long-term goal. Only by enabling the employees to be the real owners of the company will a healthy enterprise culture and sustainable developing opportunities be created. 

According to Michael Yu , it is also crucial for companies to keep a reasonable distance from the government. Chinese entrepreneurs should move closer to the universal way of business, which is constituted on the basis of integrity and the spirit of contract. Entrepreneurs must do their businesses under the law and follow the trends of business transformation.

Alongside fulfilling their obligations, entrepreneurs should never turn their backs on innovation, which is the new direction for economic reform under the ‘New Realities’. In Liu Donghua ’s opinion, innovation will not only bring entrepreneurs more respect, but also is the foremost criterion for their performance of social responsibilities. 

Undoubtedly, innovation is the priority developing strategy of the Chinese private companies. More importantly, only sustainable innovation can bring long-term growth. The vast Chinese market and growing educated population provide tremendous space for innovation experiments. Besides, innovation has drawn increasing concerns from the central government, industries and enterprises, which sends a positive signal for future progress. 

Fulfilling obligations alongside keeping up with innovation, Chinese enterprises are bound to tackle the challenges and seize new growing opportunities despite the tough realities and uncertain outlook.