China reformed its state sector before, in the late 1990s. Tens of millions were laid off at the time. That was scary and we had warnings of social unrest. But it did not happen. Instead, there was a restructuring in our economic system. I am not sure if China will follow a Western playbook in this respect.
Zhang XinThe question is not about whether it will work or not. It's how quickly we can pull it off. Structural change will happen. When economies grow, there comes a time when you cannot rely on investment alone. We had that. The return on investment is becoming less and less. So we have to change. The old model doesn't work anymore. It's a question of speed.
Zhang XinIt is worthwhile to engage in something that is close to one's heart. I had a scholarship. So if I donate money to give brilliant Chinese students an opportunity to study abroad, then this embodies everything I believe in: education, globalization, social mobility. I am an example of social mobility.
Zhang XinIt's a good thing that it is getting simpler to register a company in China, it is good that the exchange rate of our currency is getting more flexible and that it's getting easier for Chinese businesspeople to travel. All of this opens up our economy.
Zhang XinI think our legal system needs to be developed. Cases of citizens who are detained and then have to wait much too long for a trial - that is scary, for everyone. When someone commits a crime he needs to be charged quickly. Why does this take so long in many cases? I don't know. Is it because our legal system is still rudimentary? China has promised to modernize its legal system. This has high priority.
Zhang XinI firmly believe that digitalization has only just begun in China. In addition to the taxi, transport, shopping and hotel businesses, many other industries will follow: education, health care, administration, even the legal branch - everything, really. There is still a lot of opportunity in China for the inventive and ambitious ones.
Zhang Xin