Spurned by the West, China should still find friends in tycoons like Li Ka-shing
- Patriotic tycoons like Li Ka-shing not only have substantial investments overseas but also vision. The US-led effort to stifle China’s technological development, now centred on resisting Huawei, cannot succeed if Beijing works with the business elite
Beijing should consider convincing these tycoons to collaborate with Huawei, not for any political reasons or because of any threats from the West, but simply for its business value. This is the most effective strategy for China to withstand the enormous pressure from around the world.
However, some Beijing officials have been too narrow-minded to see the whole picture. They consider everything to be a political conspiracy and have failed to see the situation from a macro perspective. They have escalated regular business activities to the level of treason, so as to prove their loyalty to the country. The long-term economic benefits has been a blind spot for them.
Regardless of the accusations, the abundant monetary returns speak for themselves. CK Hutchison has invested in industries in the West that are seen as the economic pillars of the future, including finance, container ports, telecommunications, sustainable energy, environment and innovation technology. Li’s foresight has been proven yet again.
His move is also a good role model for how investing in quality foreign businesses could be the best strategic move for the country as a whole.
By contrast, many mainland investors are interested only in overseas luxury businesses, such as trophy properties, hotels and vineyards. These people are now paying the high price of poor returns. As a matter of fact, Li is a true inspirational entrepreneur with a clear vision of the future, which is needed in order to make the right strategic decisions at the right time.
In such uncertain times, Beijing could do with more friends like this.
Albert Cheng King-hon is a political commentator. [email protected]