How to Create World-class Enterprises in China

On March 12, Mr. Li Dongsheng, Chairman and CEO of TCL Group lectured at SEM international auditorium and delivered his brilliant speech titled 揌ow to Create World-class Enterprises in China? The lecture was hosted by Professor Yang Bin.

In his speech, Mr. Li firstly introduced the general context of the world-class enterprise issue. He said after twenty years' opening and reform, China has emerged as a notable economic power and gained extensive attention worldwide. However, as the world's most populous country, China 's GDP still accounts for a very small portion of the world's total. To some extent, China has not truly become a global economic giant. Mr. Li then analyzed why China 's GDP is still relatively small. He pointed out that the direct reason for this is because the seriously underdeveloped service sector. And the core reason behind this is because the lack of real capacity in manufacturing sector. China 's enterprises generally lack of core competence and their capital accumulation is relatively small. They find it very hard to be really involved in investments for new technology of large scale. Therefore China is still at the bottom throughout the international supply chain.

Mr. Li then moved forward to talk about how to really create world-class enterprises. He pointed out that Chinese enterprises lack of global management capacity and scale. He said economic competitions among nations in the contemporary world lie heavily in competitions among enterprises, especially multinational companies. China has to cultivate enterprises with core competence with two dimensions: one is the great value generating capacity, and the second is the nature of being global.

Mr. Li closed his remarks by addressing the urgent needs to enhance our nation's core technology and intellectual property rights. He argues that these two elements serve as the bottle-neck of Chinese enterprises today. Furthermore, Mr. Li also addressed that when creating world-class enterprises, we must continuously advocate the modernization of the current economic system and perfected the corporate governance within. The government is also burdening challenges in terms of creating an atmosphere to nourish world-class enterprises. In the end, he emphasized that world-class enterprises will lead to a powerful economy, which leads to a powerful country.