Ma Yun: China's economic difficulties may exceed the imagination of everyone to upgrade manufacturing

Abstract On January 25th, the annual work conference of Zheshang Association was held in Hangzhou. Ma Yun, the president of Zheshang Association, shared nearly 600 Zhejiang businessmen with his previous meeting with US President-elect Trump and said that Contradictions such as the US trade are inevitable, but he has a trade relationship with the two countries...
On January 25th, the Zheshang Association Annual Work Conference was held in Hangzhou. Ma Yun, the president of the Zheshang General Association, shared with the nearly 600 Zhejiang businessmen the situation of meeting with the US President-elect Trump and said that China and the United States Contradictions such as trade are inevitable, but he is optimistic about the overall economic and trade relations between the two countries. Ma Yun believes that the technological revolution is an opportunity for a large number of small and medium-sized enterprises, and the speed of development of small and medium-sized enterprises is impressive. Globalization is still unstoppable, and SMEs will become mainstream through globalization.

● Should pay more attention to the "One Belt, One Road" investment cooperation
Regarding Trump's election, everyone's views are different. I don't think we can underestimate Trump. It is not an accident that he was elected president of the United States.
I am optimistic about the overall Sino-US trade relations, but there will be contradictions. There may be trade conflicts between China and the United States. If not handled properly, it may lead to a relatively large trade war. But if a trade conflict occurs, it is not good for both sides and is not a good thing for the global economy. Trump is still relatively open, just different from the politicians we imagined in the past. He saw many problems in the United States today, but he hopes to solve it in a different way. At the same time, he is a businessman. His mobility is very strong and his results are very strong. Trump's coming to power will definitely make a huge change in the United States, which will bring great changes to the world's political and economic landscape, but it is still too early to evaluate these changes.
I participated in the Davos Forum some time ago. This is the most exciting and proud event I have been in for more than a decade. During the meetings of those days, almost everyone was talking about China, and everyone was discussing President Xi Jinping’s speech. Some people say that this year's Davos has become China's Davos. We think it is more appropriate to call it "China of Davos". It is China's participation in the world.
On some issues of the Davos Forum, the whole discussion is also centered around China. The United States has proposed that globalization is not going to work, and that free trade is not going to work, but China has instead put forward its responsibility for the world. This creates a huge contrast – Davos emphasizes globalization, and the world continues to increase free trade; the United States may begin to shrink more and more (reverse).
My opinion is that the world will have a complicated situation in the next 5 to 10 years, but this complexity is not necessarily a bad thing. The key is how you look at it - any change, when you are a disaster, you will see The less pleasing to the eye; the more you look at it as an opportunity to embrace it, the more interesting it is.
The current international political situation and economic situation will also undergo great changes. Even if the worst happens, such as the trade war between China and the United States, I think China's opportunities are still very large. China has more than 1.3 billion people in the mainland, and its economic potential is huge. The implementation of the “Belt and Road” strategy has brought many opportunities to China. If you want to participate in the development of the global economy, the "One Belt, One Road" economy and the "Belt and Road" investment and cooperation should pay more attention.

●High-end manufacturing is to win by quality
How do we look at the Chinese economy today? To be honest, I think the difficulty may exceed everyone's imagination. This is normal, and the rapid development of more than 30 years is unlikely to last for a long time. A person will continue to grow up until the age of 20, with an annual growth rate of 8% to 9%, but after the age of 20, it is impossible to grow a dozen centimeters a year. China's economic growth has now moderately slowed down, and maintaining quality growth is a sign that China's economy is moving toward health.
China has undergone a sweeping change. Our industry must undergo transformation and upgrading. We must upgrade our manufacturing industry. Everyone is constantly talking about China's manufacturing industry is quite powerful, in fact, there is still a distance from the real high level. The crafts of Swiss watches, including the manufacturing industries in Japan and Germany, reflect the so-called craftsmanship, which is love and investment. If you want to really improve the manufacturing industry, your quantity will definitely decline. The low-end manufacturing industry relies on quantity to win. The high-end manufacturing industry must not rely on quantity to win, but rely on quality to win. We hope that China's economy will be better, and we hope that our environment will be better, but transformation and upgrading will pay a price. These costs are unwilling to pay, and transformation and upgrading will become an empty talk.
Now our country must be transformed and upgraded. The transformation and upgrading is equivalent to the speed when turning the corner. I think that the transformation and upgrading must slow down.
The achievements of the Chinese economy over the past 30 years mainly depend on reform and opening up. In particular, investment promotion has become an important force in China's economic development: when customers are invited to bring in foreign capital, the economy will grow rapidly.
But today's economy is not as simple as attracting investment. Today's economy depends on "operation." Under this circumstance, our country still needs a large number of cadres who know how to operate the economy.
The global economy may not be good in the next three to five years, and when the economic situation is not good, it is precisely the key moment to test the good entrepreneurial spirit. Whether a general is excellent is not whether he is charged or not, but how he organized when he retreated. How he stepped back after he defeated the war. Therefore, it is necessary to assess whether an entrepreneur is excellent, that is, how to arrange it when the economy is not good, how to allocate its own resources, establish its own organization, and establish its own structure.
When a company feels that the economic situation has changed, the supply chain has changed, and customers have changed, if you encounter a major impact on the market, please remember that it is better to stop for a month or two, think about it, think about it, and come back again. So if an entrepreneur makes a department empty for two months, or even shuts down a department, it is not terrible. The terrible thing is that if you are knocked down, you want to stand up immediately, and you may be knocked down again. Therefore, face is not important. What is important is the redesign of the system and system, which needs to be considered clearly.

● To be global, we must persist in learning
In the future world, all businesses are connected more and more closely due to the Internet. When some economies begin to counter globalization, we must move toward globalization. But the most important point is that we must strengthen internal learning. When the situation is not good, internal learning, promotion, and organizational transformation are particularly important.
With so many years of rapid development, how much time do you spend on system training and system training for your employees and cadres, how much time you spend thinking about organizational changes, and thinking about your competitors, your upper and lower chains, Do you practice internal and external work? The situation is good, the attack is outside, the situation is not good, and the internal work is repaired.
Please take a moment to think about it. A boss will learn, employees will learn; a boss will talk about details, employees will talk about details; a boss will consider the future, employees will consider the future; the boss will not learn, your employees will never May learn; the boss does not pay attention to the details, the staff can not pay attention to the details; the boss has no foresight, the future thinking of the employees.
If you are a family business, then pay attention to the family's second generation succession. It is better to prepare early than before; if you are not a family business, the cultivation of the talent system is also your top priority. Especially when the economic situation is not good, it is even more necessary for everyone to spend a little time to study. These time-to-go, I think it is worthwhile, and in the end you may get a bigger return.
(This article is from the speech of Ma Yun at the annual work conference of Zheshang Association on January 25, with abridged)

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