CHINESE ENTREPRENEURS: IDEALS AND ENTREPRENEURSHIP

CONTENTS

PREFACE FOR ENGLISH VERSION …………………………………… 01

FOREWORD　Li Yining…………………………………………………… 03

THE HISTORICAL IMPORTANCE OF THE ’92 ENTREPRENEURS

Fu Xiaoyong …………………………………………………………… 06

CHAPTER I　PERSONS WITH AMBIGUOUS SOCIAL STATUS … 001

1. A learning trip abroad ……………………………………………………004

2. Crossing the river by feeling the stones …………………………………008

3. From Longzhong to Beijing ………………………………………………011

4. Resigning from government posts ………………………………………015

5. The border of the government system …………………………………019

6. The genes……………………………………………………………………025

I CHINESE ENTREPRENEURS: IDEALS AND ENTREPRENEURSHIP

7. Which path to follow ………………………………………………………031

8. Being the first to imitate …………………………………………………037

9. Social connections …………………………………………………………046

10. Persons with ambiguous social status …………………………………051

11. Water testers ………………………………………………………………057

12. Equity………………………………………………………………………061

13. Ambitions …………………………………………………………………067

14. Aspirations ………………………………………………………………073

CHAPTER II　LEAVING THE GOVERNMENT SYSTEM ………… 079

1. Being considered to have gone into business …………………………083

II

CONTENTS

2. Leaving the government system …………………………………………101

3. “The space is too small” …………………………………………………114

4. A mediocre life with a known destiny …………………………………131

5. Doing business is better than serving as officials ………………………145

CHAPTER III　INDUSTRIES …………………………………………… 179

1. The ups and downs in the futures industry ……………………………183

2. Three models for the real estate industry ………………………………193

III

CHINESE ENTREPRENEURS: IDEALS AND ENTREPRENEURSHIP

3. An insurance tale: Taikang and Huatai …………………………………218

4. Wang Zhongjun’s entertainment empire ………………………………241

5. The making of an industry leader ………………………………………255

CHAPTER IV　BETWEEN GOVERNMENT AND BUSINESS …………289

1. The grey area ………………………………………………………………293

2. The corporation and the officialdom ……………………………………302

3. Rules and order ……………………………………………………………315

IV

CONTENTS

4. Modern corporate governance…………………………………………327

5. Mirroring: Losers …………………………………………………………357

CHAPTER V　THE CULTURAL TOTEM OF THE SCHOLAR

OFFICIALS …………………………………………………………… 365

1. The social role of entrepreneurs …………………………………………368

2. The difficulties and way out for reform …………………………………388

3. Power and democracy ……………………………………………………395

4. Hidden worries ……………………………………………………………398

What are the main problems in the development of enterprise?

EPILOGUE　NOURISH CHINA　Cen Ke …………………………… 403

AFTERWORD　Chen Hai ………………………………………………… 420

BIBLIOGRAPHY…………………………………………………………… 422

FOREWORD

Deng Xiaoping gave talks in southern areas of China on reform and opening up in 1992. This event was widely believed to have changed the course of history in China today. Reforms to make China a market economy would have been delayed for years were it not for his southern visit.

Fortunately, these talks helped China formally start working toward a market economy. Over the past two decades, China has created an economic miracle,raising the standard of living to an unprecedented level of stability and prosperity.

This section of history has caused a stir in my heart. I learned about his talks in late January 1992. The gist of the talks made its way in some way to the meetings of Chinese top economists on January 27 and 30, 1992. We were unspeakably excited as if the spring was approaching for reform. The Chinese New Year fell on February 4, 1992. A couple of days before, I had been invited on the phone by the Communist Party of China (CPC) committees of Guangdong Province and the city of Shenzhen to make academic speeches in Guizhou, Zhuhai, and Shenzhen. I accepted the invitation readily. I left Beijing for Guangdong on February 8. I first traveled to Zhuhai before moving on Guangzhou and then Shenzhen. In the short span of 12 days, I delivered four speeches, one in Zhuhai, two in Guangzhou for the CPC committees of Guangdong and Guangzhou respectively, and one in Shenzhen. In addition, I also attended two meetings mainly of entrepreneurs in Foshan and Zhongshan. At these meetings I focused on how to promote economic reforms, work toward a market economy, and introduce the shareholding

system in state-owned, collectively owned, and private enterprises.