The article below is a translation from a piece written by Shi Shusi in Chinese; Shi is a graduate of Renmin University of China, having majored in journalism. He is director of the major news office with Workers' Daily and has won numerous national and provincial awards for his news commentaries and articles.

Buffett and Gates stepped foot out of America to promote entrepreneur-based philanthropy worldwide, only to be met by their first obstacle in China. What initially was planned as a huge banquet on philanthropy, was toned down to a saloon-type discussion about the “human good will”. In fact, one can hardly call it “effective communication”; Buffett was ever verbose when talking about the great human legacy that is philanthropy, and the Chinese wealthy were ever responsive with their ready complaints about how there is a complete lack of a viable system for implementing charity in China. Capitalist society with its increasing desires for a “better society” are slowly but surely being worn down by the practical problems of an emerging socialist country, as it must have become apparent to both Buffett and Gates. This is yet another version of “how China is able to say no to Western influence”, as demonstrated by the Chinese wealthy.

After having met and discussed with the Chinese entrepreneurs, Buffett, with his superior acumen and wisdom, must have realized that they had in fact invited the wrong bunch of people to talk about charity in China. He and Gates must have regretted not inviting government officials and CEOs/directors of state-owned monopolies instead – for these are the people that truly hold the keys and the fortune to open up the floodgates of philanthropy in China. But I'd imagine it'd be a lot harder to invite them than it is to flag down the Chinese wealthy; these government officials keep clear of the radar and are extremely busy. Most importantly, they're ever cautious about being held accountable to their words and promises – thus, they'd be extremely unwilling to take the risk of “saying the wrong things” when invited to “discuss” matters related to charity.

Perhaps the only real highlight of the meeting was Chen Guangbiao (famed Chinese philanthropist and CEO of a construction company) and Feng Jun (CEO of an IT company), who have both pledged to donate all of their fortune after death. At least, they didn't stop at just mere philosophy and ideals – “talking big” had always been a prized ability for the Chinese. I highly doubt that Buffett could have matched any of the Chinese present when it comes to boastfulness.  Chen and Feng both promised to act on their words – though no doubt their promise will be more than difficult to follow through. Nonetheless, they did do their country proud by promising to act on something so unprecedented. The value of Chen’s total assets at the time of making the pledge were valued at 5 billion RMB. When Bill Gates made the same pledge of his entire wealth, he had built himself a fortune valued at 58 billion USD – when Gates was worth 5 billion RMB, he was still known as a greedy “capitalist pig” looking to cash in on the fast-growing computer industry.

It would obviously be wrong to say that because of this Chen is somehow is more “noble”.  Rather, I'm much more inclined to admit that I sympathize with those Chinese entrepreneurs that are quick to undertake the responsibilities of charity when they're still newcomers to the business scene. As in the words of Peter Drucker, the management guru, there are two social responsibilities of a company – one is to build a successful business and then it is to give back to the community. It seems to me that the pressing motivation for the newly risen Chinese entrepreneurs should be to focus on investing money/resources for expanding business, pay honest and full taxes, build more jobs, and take better care of their growing ranks of employees.

I have no doubt that notable philanthropists like Chen that pledge to donate their fortune will serve to shock some sense into those tycoons that would rather hold on their enormous wealth rather than share with society; nor do I question that their selfless act should be applauded. But wouldn't it be even better if Chen Guangbiao became the world's richest person first before pledging to donate his fullest potential asset!?

Bill Gates also discussed the role of young entrepreneurs when embarking on a career in philanthropy at the meeting. He expressed an understanding of the new Chinese wealthy who have only just begun climbing up the ranks of the world's richest tycoons, stating that while charitable deeds should not be limited to those more mature businessmen, most young entrepreneurs should in fact concentrate their time and resources primarily on better developing their business. Gates advised that only after the companies have burgeoned into a successful enterprise, should leaders invest more time and capital in working toward building a career on charity.

This is indeed the advice of the sensible and mature entrepreneur and businessman; Gates' insight and observation is directly correlated with a lawful society and practical heritage about philanthropy from within which he was brought up. And this is exactly the kind of wisdom that is lacking in China; the richer people get, the more lost they seem in this acknowledgment.

Right now, the Chinese government, not the businessmen, should be better involved in taking up more social responsibilities; they should continue perfecting the allocation and distribution of social resources – and in so doing decrease disparity and conflict between social classes. Even though, progress has been made in the right direction, it is generally too slow and too little in this fast developing economy.

I don't question the great integrity and strength of character it takes for rich businessmen like Chen Guangbiao to directly implement his visions for a “more charitable society”. But this shouldn't be exemplified for all private company leaders to follow suit; the time is not ripe for all entrepreneurs to pledge their entire fortune to charity. In fact, steps should first be taken to developing a fairer government to oversee a lawful society and then fostering a sense of social responsibility with individual citizens, not the other way around.

Thus, Chinese society at the moment does not need Buffett and Gates to come preach about personal visions of a “better society and world”, but rather, we need creative leaders like Steven Jobs to come and share their visions and experiences about embracing innovation for developing successful businesses that ultimately contribute to continued growth of society and the country.

Jobs, an ingenious entrepreneur, has personified innovation for the manufacturers around the world. His ingenuity with leading Apple Inc. to unprecedented success is very much evident.  Die-hard Apple fans recently staged a raucous protest at the Sanlituan Apple store in Beijing because the highly desirable iPhone 4 ran out stock. In May this year, Apple officially overtook Microsoft in terms of company market value.

China today is facing a shortage of available cheap labor and a shrinking export market; likewise, China’s rising economy cannot be built on foreign investments and a bubbling home property market alone. China's real problem when it comes to sustainable economic growth and being a manufacturing economy has to do with a lack of innovation with its industries and companies.

Pascal Lamy, Director-General of WTO, had this to say about Apple's iPod and the roles of different economies of the world when interviewed by Le Monde this June: “If we take Apple's iPod as an example. It's made in China; breakdown of manufacture for the product is 5% wage of Chinese laborers, 15% American patented technology, and 40% Japanese value-added services.”  Many of us Chinese are proud of our skills at pirating ideas and products for a sidelined profit and we're ever so proud of toiling away our talents for multinational companies. Other international companies generally invest more than 3% for funding R&D, and Chinese companies barely muster 1% of their total resources for the same endeavor. South Korean electronics conglomerate, Samsung Group, has even hired a first chair designer just for the purpose of thinking outside the box – and to explore breakthroughs with design of their mainstay technology.

At the moment, instead of trying to become one of the world's top leaders in entrepreneur-based charity, China would benefit much more with pursuing goals of fostering great companies like that of Apple Inc. - complete with an ability to command product demand and market niches.

You may say that Steve Jobs is a rare talent, but Apple's extraordinary achievements are no doubt founded upon a great team of cooperative talents and a society/culture that inspire and reward innovation. Of course, there is also that ideology that we must embrace – a motivation to not only build businesses that earn money but those that are capable of changing the world for the better.

The next step in the process for China as a manufacturing country is not to “conquer” the world but to lead the world with changes and new innovation.

We need to listen to Steve Jobs, and not Bill Gates, who is beyond what the Chinese ranks of emerging entrepreneurs can achieve at the moment. Without a firm foundation for bringing in continuous growth and profits, entrepreneur-based philanthropy can be but a well that will eventually run dry and without establishment of a supportive government and well-rounded legal system, personal ideals about a “better society” are but founded on quicksand.
 

Related links
Can Buffett and Gates Hope to Convert China's Wealthy to Philanthropy?
No Pledge of Donations Necessary, Gates and Buffett Assure Chinese Wealthy
China's Rise in Power: World Public-Opinion Survey Reveals Four General Views

 

Source: blog.ifeng.com

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Keywords: philanthropy China buffet gates China Shi Shushi charity opinion Steve Jobs China charity in China