Entrepreneurs’ Fear in China
Liu Chuanzhi, the former president of Lenovo Holdings Ltd. and the chairman of board of directors of Lenovo Group, is undoubtedly one of the most famous and successful entrepreneurs in China. But in the recent interview, he unexpectedly recalled the past of what he had experienced during Cultural Revolution. It is obvious that some disturbing situation has put him in mind of those miserable and horrible scenes that make him have trouble in sleeping. He has frankly and candidly analyzed the characteristics and thoughts of Chinese entrepreneurs with himself included. Although entrepreneurs have made a great contribution to China's economic growth by their wisdom, ability and diligence, their behaviors are still under the control of government wills. Once there is a sign that the policy of reform and opening will be changed, they will be confused, hopeless and scared about the prospects. In Liu's words, “we have no other choice except fears”.
Liu Chuanzhi admits that Chinese entrepreneurs usually behavior weakly, but this time, he has shown a great courage. He cried out that equality shall be enjoyed by everyone before law and hoped that senior leaders could combine political reform, social reform and economic reform. It is the most definite statement issued by Chinese entrepreneurs for supporting rule by law and the policy of reform and opening before the 18th National Party of CPC being held.
In the past 30 years, China has achieved a remarkable and impressive economic success. But there are a lot hidden troubles in the rapid economic growth, such as imbalances in resident income distribution, imbalance in regional economic disparity and serious environment deterioration. How to face and solve these problems, there are different opinions, which drags the whole Chinese society into an unprecedented anxious emotion. The consideration and appeal of Liu reflect that this anxious emotion has already influenced decisions and choices of entrepreneurs.
In terms of solution, there are a lot of foreign experiences that can be learned. But the problem is that how to transform these experiences into a solution for China without causing a fierce opposition of different profit groups. Only some basic common sense can ensure that all classes have patients in and expectations for the prospects of the reform. Personally speaking, rule by law is the most important common sense.
In the modern society with diversified values and interests, different people have different views of good laws. But on the whole, two points can be assured: in terms of content, a good law should limit state power as much as possible and protect private rights; in terms of form, rights listed by a good law should be well protected instead of being a slogan.
Although the Constitution said citizens' legal private property is inviolable, in fact, violation of citizen’s legal private property is not rare. Why do legal private properties cannot be protected? A series of laws such as Constitution, the three Procedural Laws and the organic Law of People's Court all require courts to independently exercise the judicial power. But in fact, interferences from the state power on judicial judgment are commonly seen. Recalling Chongqing’s crackdown on organized crime, although people place high hopes on it, the result shows that once the judicial process is violated and the court lost its independence, such crackdown has no longer targeted at crimes and even gone to its opposite.
Without rule by law, individual rights can’t be well protected. As a result, people’s reasonable expectations for future are distorted, and they will become more shortsighted. Few will seek long-term interests: the group getting well-off first migrates to foreign countries; leaders of industries concentrate on financial investment; officials’ relatives immigrate to developed countries…. Although we have stated that migration and investment are all personal choices, once the wealthy class universally tends to migration, capital being transferred from manufacturing industry to financial industry will become the characterization of short-term action of the whole society, which will hinder social cooperation.
30 years ago, China is indeed poor. The barrier to reform is mainly from old ideology instead of vested interest group; however, at present, people concern that the vested interest groups will distort policies and manipulate laws. As a result, there’s no protection to private properties. Compared with 30 years ago, it’s time to reconsider the the objective, motivation and path of reform. For such a large country as China, there is no other existing experience that can directly follow. What we can count on is rule by law. Therefore, Liu’s words that equality shall be enjoyed by everyone before law has become unprecedented important.
Originally published on Xinmin Weekly | 2012-10-22
