As a 75-year-old man, Mr. Wu Bingxin, president of Sanzhu Group, gave the speech “The Existing Global Financial Crisis” at Panel 1. Mr. Wu is a participant and witness of China’s economic development. He began his speech with his personal experience on that topic. He emphasized that entrepreneurs share the same fates with employees. As a business operator, when his fifteen thousand employees in his enterprise had to be laid off due to financial destitution, Mr. Wu used the 1 billion Yuan left in the bank account to help employees settle down rather than save the money for future operations, thinking that he owed this to the employees who made a lot of contribution to the enterprise.

 

Then, Mr. Wu Bingxin talked about thefinancial crisis. In his opinion, it is the small-sized financial firms rather than big financial groups that suffer most from the financial crisis. But financial entrepreneurs still control individual consumption, research inputs and production inputs. Therefore, governments, which represent people’s fundamental interests and rights of consumption, must carry out financial regulations.

 

Mr. Wu reviewed the background of several big financial crises in history and attributed them to misleading economic theories. For example, most of the researches of western economics are based on production, saying that production decides everything. However, Mr. Wu prefers “consumption-research-production-consumption”.

 

Mr. Wu Bingxin stated that he is in favor of the “consumption and management theory” which reflects the rule that the three kinds of consumption are the driving force of economic development. The rule also develops the concept of financial market and state-controlled economy. Mr. Wu concluded with reinstating that government must regulate finance to prevent crisis and ensure economic development.

 

 

Intern reporter: Zhang Mengsha