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The basic concept for Chinese enterprises for going global

"Amity, sincerity, mutual-benefit, and inclusiveness"

At the end of 2013, subsequent to the proposal of “Belt and Road” and the convening of “the 18th National Congress of the Communist Party of Chia”, President Xi Jinping first initiated the diplomatic concept of “Amity, Sincerity, Mutual-Benefit, and Inclusiveness” toward our neighboring countries at the periphery symposium on diplomatic.        

President of Chinese Academy of Social Sciences Asia-Pacific and Global Strategy Research Institute Mr. Xiangyang Li at the recent seminar of “The Belt and Road – A Colorful Road” held by China Center for International Economic Exchanges (CCIEE)  also put forward his point of view that under the "Belt and Road", Chinese enterprises must attach importance to the concept of "justice and benefit", that is, to obtain reasonable income in the foreign exchange, and to achieve balance between benefits yielding and sharing.

I believe that in the current situation where China rises as a powerful country, the concept of “Amity, Sincerity, Mutual-Benefit, and Inclusiveness” should be deemed as basic guiding principle for China's enterprises for going global.

“Amity, Sincerity, Mutual-Benefit, and Inclusiveness” seems has nothing to do with commercial business activities and simply a purely diplomatic concept, whether it means that the enterprises should at the expense of their interests? If this is the case, shouldn’t it only be the responsibility of the state-owned enterprises which are capable to undertake social function? The answer is clearly no. concept of “Amity, Sincerity, Mutual-Benefit, and Inclusiveness” is one of basic concepts for enterprises for going global.

The concept of “justice and benefit" proposed by President of institution Mr. Xiangyang is based on the phenomenon that countries along the "Belt and Road” are only geographically near but not emotionally close to China. He requested China’s enterprises which participated in the "Belt and Road" should pay attention to long-term interests and exert effort to create economic sense of the positive externalities abroad. His reminders not only pointed out the complexity of the international market that we are now facing, but also euphemistically criticized some of our enterprises, to a certain extent, only focus on the short-term interests, and what these enterprises access are merely economic sense of the negative externalities.

Indeed, there are still some companies hold the idea of heading for international stage for making quick money. They are too obsessed with oversea money-making and completely leave responsibility toward society behind. This outdated behavior in the conduct of oversea business may not only violate the local law, and leave negative consequences for the local community, more severely, it may also damage the reputation of China’s enterprises, and objectively form resistance to other Chinese enterprises to enter into this specific market; similar to this phenomenon, there exist a number of examples whether in Africa, Southeast Asia, or the European region.

“Amity, Sincerity, Mutual-Benefit, and Inclusiveness” is not an extra requirement for the enterprises; it also applies to the enterprises for domestic business. From the perspective that enterprise go global  may give prominence to the features of applying to different laws and cultural environments; it is also the necessary protection to prevent the ordinary business behavior is mistakenly judged as diplomacy, politics, so that lead to social consciousness tendency. Simply put that in order to achieve “Amity, Sincerity, Mutual-Benefit, and Inclusiveness”, we must uphold the philosophy from our ancestors that "never do to others what you would not like them to do to you"; we need to learn to conduct transpositional consideration, and let interested party make their own niche on the basis of equality.

In the first half of 2016, I interviewed Porter’s chief architect and mastermind Mr. Zongjian Chen in terms of that whether Porter group still adhere to its operation principle to allow local enterprises enter Porter City free of charge when Porter City project enter market of Europe and other countries and offer free services for those enterprises? Mr Chen gave a definite answer to this. He said no matter it is at home or abroad, only if benefit the local enterprises, and strive to serve local businesses, could we achieve a certain economic impetus that driven by our project, and then connect the “point” and “line” for unlimited extension for service platform for entity enterprises.

Large-scale commercial real estate projects require a huge input investment, and its benefits could only appear from long-term arrangements and overall layout. Porter Group’s deed of paying first, and grow and harvest together with settled enterprises could be preliminarily deemed as a company with “Amity, Sincerity, Mutual-Benefit, and Inclusiveness” concept under the context that enterprises go global for development.