Talkathon: Dream big, plan big, work big

On October 18, the world witnessed Chinese President Xi Jinping delivering a speech for 205 minutes, just five minutes less than three-and-a-half hours, at the 19th Communist Party Congress in Beijing. It was a 65-page sermon using about 35,000 words. By all standards, it was a marathon speech. Speeches by political leaders anywhere in the world set the tone for future government policies, and very long speeches do the same for many subjects being dealt with by the government.

What is there for business leaders in such speeches?

Truly speaking, astute business leaders scrutinise each and every word of the speech, interpret various portions according to the context, and also try to get an overall meaning. The speech undoubtedly sends certain unambiguous signals which cannot be mistaken by either business or political leaders.

Xi Jinping surely talked big – big dreams and big plans. He meant business. Politics had been kept on the backburner. He wants to make China great – yes, Trump also wants to make America great again – and the focus of global development, business, prosperity, and, everything good in life. Such big dreams require big planning and continuity of policy and practise. Xi Jinping is almost certain to continue as the Chinese President for a second term, which easily means that he has planned for the second innings quite early with the assumption and assurance that there shall be no change in the power equation in the country.

Making the plans work may not be easy with fast changes in global business conditions. The demand for non-renewable energy, due to environmental issues, is going down and businesses are shifting towards renewable energy in the long run. Business policies guided by the political blueprint will be fine-tuned to take care of the hostile geo-political issues, particularly with North Korea, Japan, Russia, and the United States.

Trying to be centre stage by pushing the US away from the limelight will not be a prudent idea as the world, in the last more than half-a-century since the end of the Second World War, has cherished democratic values. China, all said and done, loses heavily on the parameter of democracy. One may argue and debate endlessly on the benefits of democracy for business growth and development. But, decision making can be without any doubt quite speedy in a non-democratic country. Democracy, however, can go a long way in the protection of human rights, business or no business.

Xi Jinping's speech can in no way be said to be the voice of the people of China. Aligning everyone in China towards the stated objectives can only be done by force, howsoever subtle it may be. Successful working of plans along with respect for fundamental freedom requires treating its own citizens with dignity and making the system transparent, certain and predictable for foreign businesses. Simply relying on its humongous population for manufacturing and providing an unbelievably huge market to foreign investors – without proper legal environment for protection of economic and other rights – is not a good sign for boosting economic growth.

International political relationships are dynamic in nature and Xi Jinping's speech has made business leaders in India sharpen their antennae. Legal issues regarding contractual terms, dispute resolution, intellectual property, confidentiality etc. have been historically significant and difficult to negotiate with Chinese businesses. With reaffirmation of the current political setup and strengthening of the business agenda for the next five years, at least, the negotiating power of Chinese businesses will obviously get enhanced. Banking, financial and economic reforms as envisaged in China in this speech are more and more China-centric.

The invisible Chinese Walls for doing business in China, instead of being demolished, are being made higher. This can be beneficial for Indian businesses only if they are able to decipher the new stronger Chinese regime, which will be identifiable when China puts its dreams and plans to work. Till then, Indian businesses can keep a low profile and try to decrypt Xi Jinping's talkathon.