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Li Ka-shing attends the Cheung Kong Group annual dinner in Hong Kong on January 11. Horizons Ventures, the investment arm of Li’s philanthropy foundation, has in the past few years been investing in innovative companies and disruptive technologies. Photo: Felix Wong
Opinion
Albert Cheng
Albert Cheng

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
Behind the US-China trade war, the motive of US President Donald Trump is plain to see – repress technology and innovation development in China, as well as its “Made in China 2025” plan. Such hostile actions are being used for the simple reason that China is the only country that could challenge America’s status as the world’s leading technology superpower.
China has the capacity to challenge American domination of 5G development, arguably the hottest business in the technology industry. Otherwise, the US would not have deployed Mike Pence and Mike Pompeo, its vice-president and secretary of state respectively, to travel across the world and lobby its allies to boycott Huawei. It is not so much a national security move as a well-planned strategic act.

For the US, Huawei is the heart of darkness

At a time when it is being isolated by many Western countries, the Chinese government is in need of support from some patriotic, powerful tycoons with foresight. One suitable candidate, among others, would be Li Ka-shing, Hong Kong’s richest man who owns significant investments in Europe.

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.

In fact, Horizons Ventures, the investment arm of Li’s philanthropy foundation headed by Solina Chau, has in the past few years been investing in innovative companies and disruptive technologies. The company has set its sights on various start-ups all over the world, including in Silicon Valley and Israel, that other investors would have overlooked.
Now that the Hong Kong government is shouldering an important role in the financial and technological development of the Greater Bay Area, it should leverage Horizons Ventures’ head start in the field.

The Greater Bay Area will work, with the right connections

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.

Yes, CK Hutchison has, over the years, sold a substantial amount of its investments and properties in Hong Kong and on the mainland, and reinvested the proceeds in stable, cash-generating assets in the West. Yet, the corporation’s strategic move has drawn criticism from China’s state media and think tanks affiliated with the Communist Party. Li was accused of abandoning his home market at a time of slow economic growth.

Why Hong Kong tycoon Li Ka-shing is setting his sights overseas

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]

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