On October 28, 2017, co-organized by China Global Philanthropy Institute and China Taiping, themed at “the wealth mission in the era of philanthropic economy,” “Brainstorming Sessions in Ten Cities” was opened in Beijing, which lasted about ten days. Among the six sessions held in Beijing, Nanjing, Fuzhou, Zhengzhou, Harbin, and Qingdao, experts from the fields of economics, society, science and technology, public welfare, etc. and more than a thousand excellent entrepreneurs and social elites gathered for the event. Through listening, exchanging and sharing, the events aimed to improve the wisdom for creating wealth, managing wealth, planning wealth, and inheriting wealth in the new era. By using new ways of thinking and new methods to help high net worth individuals to realize family cultural inheritance, spiritual inheritance, capital inheritance and social inheritance, and making contributions to social harmony and fairness and justice in addition to the achievement of family harmonious development.
According to the sponsor of the sessions, the topics of the sessions are very diverse, with different focuses in Beijing, Harbin, Nanjing, Fuzhou, Zhengzhou, and Qingdao. Family inheritance: the wealth mission in the era of philanthropic economy. Economic prospect: capture of new growth points. Everlasting enterprise: decoding the way of inheritance of family controlled enterprises. Sustainability of wealth: asset allocation and risk control and management. Artificial intelligence: the engine of the 4th Industrial Revolution.
According to Mr. Wang Zhenyao, President of China Global Philanthropy Institute and President of China Philanthropy Research Institute of Beijing Normal University, the era of philanthropic economy is when social value begins to lead economic value, and to manage the surging flood of wealth arising out of the reform and opening-up policy, China should give a mission to family wealth by modern philanthropy, construct and expand philanthropic channels, explore parallel ways to public charity and wealth creation through social finance, and help drive family wealth to achieve smooth inheritance of wealth and everlasting prosperity.
Philanthropic economy interprets the inheritance of family controlled enterprises in the new era
According to the experience of human society, only when wealth is put into philanthropy and is used for philanthropy causes properly can the management of wealth and family inheritance reach their peaks. How can we compare proper management of wealth?
For the first session of “Brainstorming Sessions in Ten Cities” in Beijing, Wang Zhenyao, President of China Global Philanthropy Institute and President of China Philanthropy Research Institute of Beijing Normal University, Zi Zhongyun, former Director of Institute of American Studies of Chinese Academy of Social Sciences and Senior Scholar, and Ai Luming, Chairman of the Board of Directors of Wuhan Contemporary Technology Industry Group Co., Ltd. and the 1st Vice-President of Society of Entrepreneurs & Ecology, were specially invited to interpret in a multi-dimensional and multi-leveled way the wealth mission and value in the new era regarding family inheritance, the history of American wealth developing into philanthropy, and entrepreneurship in the new era of philanthropic economy, so as to clarify the proper ways for inheritance and help build everlasting family business.
The 19th National Congress of the Communist Party of China clarified the main conflict of our society, which had transformed into the conflict between the every growing need of the people for a good life and the imbalanced and inadequate development. The world’s GDP per capita has already exceeded USD 10,000, and the creation of global wealth is in the course of evolving from quantitative change to qualitative change, all of which mark the upcoming of the era of philanthropic economy. According to 2017 Report on China’s Private Banks released by Industrial Bank and Boston Consulting Group, China’s private banks manage more than 500,000 clients and assets in nearly RMB 8,000 billion; 45% of the interviewees have already considered or will consider wealth inheritance within 3 years.
For Chinese society, wealth management is a pressing issue. Market economy, especially the history of the reform and opening-up policy in China, has proved that successful entrepreneurs are those who are capable and active to create wealth. They have come to realize the importance of philanthropy in social development and family inheritance.
According to the statistics of China’s Top 100 Donors List, during 2011-2016, there were 123 philanthropists (including individuals and donations from their holding companies, excluding donations from private foundations), whose cumulative donations exceeded RMB 100 million, and the total amount of their donations (including promised donations) reached RMB 113.143 billion. The high net worth individuals have become the main contributors of donations in China.
Spreading wealth and gathering wealth is gradually becoming a sound economic and social process. Those who have wealth need to balance wealth and family, as well as wealth and society.
Jointly initiated and founded by Chinese and American philanthropists including Bill Gates, Ray Dalio, Niu Gensheng, He Qiaonv, Ye Qingjun, etc., Chinese Global Philanthropy Institute focuses on the cultivation of philanthropists and senior management of charity organizations, in addition to the establishment of an applied public charity educational system for professional certification education and the popularization education of public charity. The Institute works with Harvard University, Stanford University, Indiana University, Cambridge University, Oxford University and other such colleges and universities to build an educational and training base, and has established strategic partnership with world-famous Rockefeller family, the Moore family, the Turner family, the Donnelley family, the Rothschild family, Soichiro Fukutake’s family, etc. The Institute has made significant contributions to elevating the professional level of Chinese philanthropy, promoting international exchange in the field of public charity, and pushing forward reform and innovation of the world’s philanthropy.
Scientific and technology innovation drives the new trend of the fusion of business and philanthropy
The 19th National Congress of the Communist Party of China has clearly proposed that Chinese economy has moved from the stage of rapid growth into that of high-quality development and that it is at the stage of tackling a key point when development mode is being transformed, economic structure is being optimized, and the growth momentum is being transformed. During the era of new economy, how can business management and wealth accumulation fit the needs of the times and realize sustainable growth in the next decade, when artificial intelligence will drive global gross value of production to increase by 12%, so as to form nearly USD 10,000 billion of industry scale. Artificial intelligence will sweep across the world. At that time, what changes will take place for social, industrial, enterprise, and individual development? Will they be disruptive innovation or the end of civilization?
The “Brainstorming Sessions in Ten Cities” in Qingdao specially set up “artificial intelligence” as its theme. Zhang Liangjie, Senior Vice President and CTO of Kingdee International Software Group Co., Ltd., and Xu Yongguang, Contract Research Fellow to Counsellor’s Office of the State Council and President of Narada Foundation, have been specially invited to interpret the latest development trends of artificial intelligence, the opportunities and challenges that it has brought to economic and social development and the change to industrial model, as well as the new trend of the fusion of business and philanthropy, so as to help understand future trends and move ahead of the trends to win.
We are standing at a new historical starting point. After rapid economic development, the number of high net worth individuals is on the drastic increase, while a lot of social problems have come out for those who have become wealthy first to participate in and solve. Today, Chinese society has had a clearer understanding of the functions of philanthropy. The leading Internet and artificial intelligence help the high net worth individuals in China participate in solving social problems more conveniently and efficiently.