Why Is Shi Zhengrong Richer Than Qianlong?

Although the producer and director of the rise of the great powers did not say so, the main theme of actually crossing the modern powers should be the power of capital globalization and institutional homogenization. The globalization of capital promotes the homogenization of the system, which in turn promotes the former. The story of the rise of a large country is a concrete manifestation of the miracle of capital globalization. China's economic success today is also a continuation of this miracle. It is a gift to China for the past 500 years in the process of capital globalization.

Mr Shi Zhengrong and Mr Wuxi's Suntech as an example, Mr Shi's wealth story is inspiring a new generation of entrepreneurs, and the entrepreneurial spirit it is driving is also driving a new round of economic growth.

Although Wuxi Suntech was established in 2001, its revenue in 2006 was nearly $600 million, and it was expected to reach US $1 billion 200 million in 2007.

What is the history behind these figures?

What is the significance of it?

We often say that the flourishing age of Qianlong in eighteenth Century was the heyday of modern China.

If we compare Wuxi Suntech with Qianlong court, who will earn more?

In 1766, for example, the revenue of that court was 4937 yuan or 3600 yuan. If the price of today's one kilogram of silver is 3600 yuan, it is equivalent to 1 billion 140 million dollars today, which is much more than Suntech's sales income in 2006, but lower than its 2007 income.

That is to say, the revenue of a prosperous court in the past was still less than that of a Private Companies that was only 6 years old -- Wuxi Suntech!

Emperor Qian Long can spend more money in a year than Suntech in Shi Zhengrong this year, and Shi Zhengrong himself has 2 billion 900 million dollars in wealth.

So, although Qianlong is emperor of flourishing age, his wealth and controllable expenditure are not as good as Shi Zhengrong today.

In today's China, there are thousands or even tens of thousands of companies, such as Suntech, whose material lives are more than those of Emperor Qianlong and Daoguang emperors.

Therefore, if compared with the past, it is not just China's economic scale and growth rate unprecedented, not only the Bank of China and ICBC listed the scale of financing to break the world record, but also will see that many individuals living conditions and wealth levels are better than the emperors more than 100 years ago.

What brings China so many miracles?

Why did Shi Zhengrong, who was only 38 years old in 2001, become a wealthy 2 billion 900 million dollar in just 6 years?

There are many reasons why the world can create such a miracle. Here we can at least talk about it from several aspects.

The first major reason for this is China's reform and opening up.

The economic achievements over the past years show that such a simple institutional reform can release such a great economic power. A little liberalization of private property can bring such a great incentive.

Shi Zhengrong started his own business with different results.

The opening up of China is indispensable. Without opening up, the solar energy equipment of Wuxi Suntech can not be exported to Germany, Japan and Spain.

However, it is not enough for China to open its own wishful thinking. Under the condition that the Chinese Navy and air force are very limited, in order to make the freighters carrying Suntech solar equipment in the open sea and in the destination society unimpeded, and not be robbed by pirates, and not being brutally killed by the local people, the world order must be based on rules rather than brutal violence.

When Spain, Holland and later Englishmen engaged in pnational trade, they were faced with heterogeneous culture, heterogeneous system and heterogeneous society. The personal safety and property safety of foreigners were not guaranteed. They had to turn to primitive barbaric violence to safeguard their safety.

How high is the cost of pnational trade at that time can be imagined.

When China was opened in 1978, the construction and evolution of the world order after nearly 500 years were no longer based on barbaric violence. Not only did the countries without laws or rule of law have basically established the rule of law system, but also the laws and political systems of various countries had been homogenized, mostly based on Anglo American law system or Western European continental law system.

Especially in commercial law, company law and securities law, all countries in the last century from 80s to 90s were basically copying the relevant laws of the United States.

The homogenization trend of national systems is so strong that Professor Fukuyama of Harvard University concluded that "the end of history". Since everyone is adopting similar systems, there will be no foreign history.

The homogenization of the system has made the trade and contract rules of countries more and more convergent, which greatly reduces the cost of pnational trade and accelerates the pnational market.

The result is that whether Suntech is in Wuxi or elsewhere in the world, it can produce solar energy equipment anywhere in the world, and the cost of the entire paction and pportation process is very low, so that Suntech's export market has reached an unprecedented scale.

Therefore, the homogenization of the system is the second major reason for Suntech's miracle.

The third main reason is the eastward spread of Western technology under the impetus of capital globalization.

In other words, Suntech's launch and rapid growth depend on modern industrial manufacturing technology. So how can China's industrial technology miraculously grow?

This has to be traced back to the Opium War and the Westernization Movement. Without the opening up of the Opium War and the nature of capital gains, the degree of industrialization in China may not be high until 2001.

It is the driving force of international capital that brings the achievements of the industrial revolution begun in the west to China in 1780, making it possible for China to become an industrialized country today, making Suntech one of the largest two solar energy equipment manufacturers in the world.

We may blame the nature of international capital, but step by step, if there is no profit drive, who will deliver industrial technology free of charge?