There is only one country in the world in 2014 that is in ascendancy to empire status and that is the People’s Republic of China. In this blog post I aim to give an insight into what’s going on within China’s thriving community of entrepreneurs. I will show you where they are investing, what some of their visionaries are building, more insights from Beijing and how their new economic power and leadership will affect our world.
Before I start, I will highlight the fact that the Communist Party of China (CPC) has lifted 500 million people out of poverty in the last 35 years, a statistic often not acknowledged in western media.
The Chinese population, 1/5 of humanity, has fully embraced capitalism in some of its rawest forms. So when you next hear that China will implode and is on an unsustainable path, remember that the Chinese people have gone through far worse hardships than those faced in the 21st century and have prevailed.
The Golden Age for China’s entrepreneurs
China, with a population of 1.3 billion, is an economic superpower, re-emerging at breakneck speed. But be aware of the fact that Chinese entrepreneurs unleashed after many years of internal challenges, including the great leap forward and the cultural revolution, have now had 30 years of economic liberalization; they are taking no prisoners in their own relentless quest for wealth, power and prosperity.
“China is a sleeping giant. Let her sleep, for when she wakes she will move the world.” Napoleon Bonaparte
There are now an estimated 330 dollar billionaires and 1,020,000 millionaires in China and this number will expand rapidly as China continues to deliver a GDP growth rate of 7.5+%. 1/3 of China’s super-rich has emigrated from mainland China and they are investing everywhere.
China’s entrepreneur led global expansion
The global media is buzzing with news about Chinese Investors buying well known western brands. One particular Chinese conglomerate that inspires confidence headed by billionaire Wang Jianlin the richest man in China with a fortune of 14.2 billion US$ is the Dalian Wanda Group Corporation with $5 billion allocated annually to acquiring foreign assets, a potent signal of the group’s overseas ambitions.
Tens of thousands of entrepreneurs in China are preparing their businesses for global expansion in Q1 to Q2, 2014. There is not one country, industry or sector that they can’t enter into and compete with.
Where are the Chinese investing? this data sheds some light on China’s worldwide investments and contracts: Link
If you are interested in where Chinese SOE’s and entrepreneurs are investing in the US check out the Rhodium Group Chinese investment monitor tracking Chinese direct investment in the United States: Link
These powerful images and data of rapid Chinese growth display how far China has come with 30 years of economic liberalization.
I will now show you several projects by Zhang Yue, one of China’s self-made multimillionaires with a net-worth estimated to be at $900 million. Zhang made his fortune selling air-conditioners and was the first Chinese entrepreneur to own a private helicopter; he even built himself an Egyptian pyramid and a replica of Versailles.
Zhang is the founder of Broad Sustainable Building(BSB), a 30 story building built in 15 days
Zhang is also building Sky City One in Changsha, Hunan, China.
If the project passes environmental assessments, obtains official approval and is completed as planned, it will become the tallest building in the world, 10 m (33 ft) taller than the current record holder, the Burj Khalifa in Dubai. This can be completed at 1/3 of the cost Zhang forecasts. The cost of Sky City One is $1.46 billion. That’s $1500 per square meter, a 1/3 of the cost of the Burj Khalifa.
Think of the impact colossal scale projects like this can and will have on the world as hundreds of thousands of Chinese entrepreneurs search for commercial opportunities outside of mainland China.
Insights from Beijing
I spoke with hundreds of entrepreneurs and investors at the 2nd International Forum on Private Enterprise Heritage & China’s Influence, engaged in long discussions about China’s leadership outside of the mainland and even got the opportunity via a translator to ask a general of the People’s Liberation Army his views on the new economic power of the country.
They all seem to say the same thing: China is a peaceful country and has no ambitions to invade anyone, a people that want peaceful coexistence with the global community and to fight the real issues of poverty and pollution. I hope this is the case but as a student of geopolitics I know that it is not. China will be pushed into making decisions that it doesn’t want to make. China will have to protect its citizens and investments in overseas territory through humanitarian intervention in the near future. As the US continues to draw back from conflict zones and shows weak leadership there will be continuous power vacuums globally and China will have to show leadership. I will address this further on a future blog post.
I have noticed strong nationalist views from several of the net generation within my own age group. Main views where China should be more assertive in East Asia and some of them held very strong opinions on Japan and America.
China is leading the world
This map clearly indicates the economic impact China now wields globally although a lot of this is state led. I envision many privatizations of SOE’s in China in the near future and massive growth of the wealth creators and entrepreneurs.
China will keep expanding economically and will overtake the US in the coming years. It’s not a question of if. It’s a question of when. It all depends on what data source you read from but this transition will happen.
I do have confidence in the (CPC) keeping GDP growth rate at 7+% for the next several years. China has to keep tier 2 to 5 migrants coming into the newly built cities to keep the economic engine running at full speed. The vast urbanization program, the biggest the world has ever seen, is the key reason for the last $4 trillion in growth as the farmers have evolved into factory workers and build everything imaginable for the global consuming market.
I will end this post with a quote:
‘’Empty your mind. Be formless, shapeless, like water. If you put water into a cup, it becomes the cup. You put water into a bottle, it becomes the bottle. You put it into a teapot, it becomes the teapot. Water can flow, and it can crash. Be like water, my friend” — Bruce Lee
To make meaning of this quote I would have to present my personal view on it but I’m on a very different journey than you. So when you are next meditating or on a long flight, I want you to try and find meaning for yourself in this; you may find it to be one of the finest investments of your time you have ever made.