WEBVTT 00:03.978 --> 00:06.395 (jazz music) 00:20.073 --> 00:22.323 (clapping) 00:26.035 --> 00:27.956 - Good afternoon, everyone. 00:27.956 --> 00:30.237 Welcome to this very interesting session 00:30.237 --> 00:32.320 on China entrepreneurship 00:32.737 --> 00:36.083 and innovation, opportunities and challenges. 00:36.083 --> 00:38.180 My name is Helen, Helen Qiao 00:38.180 --> 00:41.032 and I work as the Greater China economist 00:41.032 --> 00:44.067 for Bank of America/Merrill Lynch in Hong Kong. 00:44.067 --> 00:46.269 I'm also the head of Asia Ex-Japan 00:46.269 --> 00:48.310 Economic Research for the firm. 00:48.310 --> 00:51.925 Today, I'm very glad and honored to introduce to you 00:51.925 --> 00:54.300 three of our panelists sitting here. 00:54.300 --> 00:57.133 To my left, this is Mr. Deng Feng. 00:57.787 --> 01:01.583 He is the founder of Northern Light Capital, Beijiguang, 01:01.583 --> 01:02.989 and that's probably what 01:02.989 --> 01:05.505 he has been known for in Chinese. 01:05.505 --> 01:07.922 And then he is still managing 01:08.651 --> 01:11.818 1.7 billion US dollar worth of capital 01:12.068 --> 01:14.654 with commitment in his eight funds, 01:14.654 --> 01:17.502 four in Renminbi and four in US dollars. 01:17.502 --> 01:19.185 He has been leading and backing 01:19.185 --> 01:21.352 close to 200 firms so far, 01:22.026 --> 01:23.858 both in China and then later, 01:23.858 --> 01:25.689 and earlier in the US. 01:25.689 --> 01:28.862 His specialty is in TMT, clean technology, 01:28.862 --> 01:31.612 health care as well as consumers. 01:31.875 --> 01:35.458 And then to his left, this is Ms. Jean Liu. 01:35.897 --> 01:38.816 She is the president of Didi Chuxing 01:38.816 --> 01:41.983 and Jean is a long time friend of mine 01:42.552 --> 01:44.030 since very long time ago. 01:44.030 --> 01:46.788 Without revealing to you my age or her age, 01:46.788 --> 01:48.363 I'm just gonna tell you that it has been 01:48.363 --> 01:50.196 more than two decades. 01:51.415 --> 01:53.143 Didi Chuxing is really the world's 01:53.143 --> 01:56.310 largest mobile transportation platform 01:56.314 --> 01:59.594 and that one is, that firm is based in China. 01:59.594 --> 02:01.844 She has been ranked in 2015 02:02.479 --> 02:05.929 as the top five global business leaders by Fortune 02:05.929 --> 02:07.262 in 40, under 40. 02:08.613 --> 02:11.446 And then to the far left over here 02:11.837 --> 02:14.254 is Professor Shoucheng Zhang. 02:15.033 --> 02:17.950 He is the founder of Danhua Capital 02:18.361 --> 02:20.467 and he is also the professor of economics 02:20.467 --> 02:22.017 at Stanford. - [Shoucheng] No, physics. 02:22.017 --> 02:23.081 - [Helen] Oh sorry. 02:23.081 --> 02:26.081 Professor of physics, not economics, 02:26.492 --> 02:27.719 at Stanford University 02:27.719 --> 02:30.744 and he has been teaching over here for 23 years. 02:30.744 --> 02:34.463 He is a member of the US National Academy of Science, 02:34.463 --> 02:35.692 Chinese Academy of Science 02:35.692 --> 02:39.859 as well as the American Academy of Arts and Science. 02:40.016 --> 02:41.899 I would like to maybe, you know, 02:41.899 --> 02:43.390 spend about five to 10 minutes 02:43.390 --> 02:45.768 allowing all our panelists to say a few words 02:45.768 --> 02:48.017 about themselves and their companies, 02:48.017 --> 02:51.128 in case that some of you might not be as familiar 02:51.128 --> 02:52.552 with what they usually do 02:52.552 --> 02:54.166 and how they have been contributing 02:54.166 --> 02:57.249 to the innovation and works in China. 02:57.521 --> 02:58.938 Mr. Deng, please. 02:59.068 --> 02:59.901 - Thank you. 02:59.901 --> 03:02.266 First of all, I'm very happy to be here, 03:02.266 --> 03:03.571 specially we're happy to see 03:03.571 --> 03:05.904 some of my friends in Zipper 03:05.954 --> 03:09.621 I'm very honored to be advisor Zipper report 03:11.644 --> 03:14.213 and I think what brought me here is also 03:14.213 --> 03:15.317 I guess because of my experience. 03:15.317 --> 03:17.650 I used to be an entrepreneur 03:17.749 --> 03:20.499 in both China and Silicon Valley, 03:20.602 --> 03:22.655 but for the last 11, 12 years 03:22.655 --> 03:25.822 I've been investing primarily in China 03:26.047 --> 03:28.356 and some of them still in Silicon Valley. 03:28.356 --> 03:31.689 I can see with my 11 years of experience 03:31.780 --> 03:34.386 close to 200 company investments. 03:34.386 --> 03:38.201 I can see the differences between Silicon Valley 03:38.201 --> 03:40.951 and another, China which probably 03:41.346 --> 03:44.234 just next to Silicon Valley in terms of innovations, right? 03:44.234 --> 03:47.723 I can see the ecosystem, the opportunities. 03:47.723 --> 03:50.572 With my own experience I can tell you 03:50.572 --> 03:51.825 what's happening over there 03:51.825 --> 03:54.596 and how this is gonna compare to Silicon Valley. 03:54.596 --> 03:57.060 My primary investment focus is in the 03:57.060 --> 04:00.310 early stage technology which range from 04:00.517 --> 04:04.684 TMT which stand for a lot of things like internet, 04:05.132 --> 04:07.932 enterprise software, cloud infrastructure, 04:07.932 --> 04:09.064 things like that. 04:09.064 --> 04:12.481 And another major part is the health care 04:12.495 --> 04:14.495 and medical technologies 04:14.912 --> 04:17.889 which also you see a lot of innovations back in China, 04:17.889 --> 04:22.056 and then some of them in the new material, clean tech areas. 04:22.967 --> 04:26.884 I think what I can summarize on very high level 04:28.484 --> 04:29.881 how I feel about China, 04:29.881 --> 04:30.928 maybe I'll start with that, 04:30.928 --> 04:33.428 is actually even if I can feel 04:35.018 --> 04:37.601 Silicon Valley is very dynamic, 04:37.638 --> 04:39.638 in the last 10, 11 years 04:40.702 --> 04:43.119 where back to China I can see 04:43.304 --> 04:46.471 how Silicon Valley is still innovating 04:47.668 --> 04:49.252 and also moving very fast. 04:49.252 --> 04:51.122 I can see the economy whenever I come back, 04:51.122 --> 04:54.789 I can see the call it 101, the traffic there 04:54.796 --> 04:58.227 but that has no comparison with what's happening in China. 04:58.227 --> 05:01.810 China is so dynamic so in the last 11 years 05:02.376 --> 05:05.543 since 2005 I can see how many changes. 05:05.572 --> 05:07.868 Everyday, we see new companies, 05:07.868 --> 05:09.048 we see new opportunities. 05:09.048 --> 05:11.469 Well, we'll still see a lot of challenges 05:11.469 --> 05:14.128 in terms of not only the technologies, 05:14.128 --> 05:17.961 but a lot of times it's the whole environment. 05:18.341 --> 05:20.309 For example, the current regulations, 05:20.309 --> 05:22.891 all the things which relating to the innovation, 05:22.891 --> 05:24.480 to the entrepreneurship. 05:24.480 --> 05:27.854 But I think I can see on one side a lot of challenges 05:27.854 --> 05:30.832 but if I summarize with a high level work, 05:30.832 --> 05:31.861 I see opportunities. 05:31.861 --> 05:33.778 It's definitely by far, 05:34.008 --> 05:37.630 I can see it made us so exciting, panelists here, 05:37.630 --> 05:39.542 so exciting about what's happening 05:39.542 --> 05:41.723 and what will happen in China. 05:41.723 --> 05:43.202 - Great. Thank you. 05:43.202 --> 05:45.609 An input to (mumbles), you mentioned Mr. Deng 05:45.609 --> 05:48.278 about the innovation environment in China now 05:48.278 --> 05:49.797 becoming very much, 05:49.797 --> 05:52.347 even probably even more competitive 05:52.347 --> 05:54.430 and a very fertile ground 05:54.704 --> 05:56.306 compared to that in Silicon Valley. 05:56.306 --> 05:58.045 I'm really impressed. 05:58.045 --> 06:00.633 I would like to probably come back to Jean 06:00.633 --> 06:01.837 for the question that 06:01.837 --> 06:05.138 how do you think that particular environment 06:05.138 --> 06:06.861 has been nurturing an environment 06:06.861 --> 06:09.817 such as Didi Chuxing in the last few years 06:09.817 --> 06:13.079 that it has become already the largest one in the world? 06:13.079 --> 06:14.162 - Yeah, sure. 06:14.178 --> 06:17.136 Well first of all, I also want to express my 06:17.136 --> 06:21.303 happy feeling here to reunion with Helen first of all, 06:22.204 --> 06:25.392 and then to share insights with such an elite group here 06:25.392 --> 06:28.225 and it's just an honor to be here. 06:28.258 --> 06:30.683 I really, I care what Mr. Deng 06:30.683 --> 06:33.046 said about China and the difference 06:33.046 --> 06:35.942 between China and the US particularly. 06:35.942 --> 06:38.459 Because every time when I come here 06:38.459 --> 06:41.959 I just cannot believe how different it is. 06:42.310 --> 06:45.227 In China, we have many more people. 06:46.627 --> 06:48.370 The population density is much higher 06:48.370 --> 06:50.939 and the scale of city is simply much larger. 06:50.939 --> 06:53.704 Yesterday, it took me 45 minutes to drive 06:53.704 --> 06:56.537 from San Francisco Airport to here 06:57.338 --> 07:01.505 and I think we came across probably six towns in between. 07:02.176 --> 07:04.875 And 45 minutes in Beijing only gets you 07:04.875 --> 07:07.800 from airport probably not even to the middle of the city. 07:07.800 --> 07:10.119 Probably still to the east side of the city. 07:10.119 --> 07:12.786 And if we compare, I don't know, 07:12.912 --> 07:15.232 how many people have been in China, 07:15.232 --> 07:18.647 but if you compare the scale of the city, 07:18.647 --> 07:21.405 in here I think probably only four cities 07:21.405 --> 07:23.723 have population of over two million. 07:23.723 --> 07:26.140 But in China the number is 44 07:26.421 --> 07:28.274 so it's just simply very different. 07:28.274 --> 07:30.691 And if anyone from East Coast 07:30.773 --> 07:34.497 you probably know from New York City for example, 07:34.497 --> 07:35.947 compared to Beijing, 07:35.947 --> 07:38.306 we have 20 districts in Beijing, 07:38.306 --> 07:40.056 the larger concept of Beijing. 07:40.056 --> 07:43.973 And each district is bigger than New York City. 07:44.309 --> 07:47.709 And if you park all the private cars in Beijing altogether 07:47.709 --> 07:50.376 it's bigger than Manhattan size. 07:50.805 --> 07:52.272 That's the fundamental difference 07:52.272 --> 07:54.105 between here and China 07:54.944 --> 07:58.153 and then it comes to the enter of our company. 07:58.153 --> 07:59.721 What we are trying to do here 07:59.721 --> 08:03.019 is really trying to solve a very local problem. 08:03.019 --> 08:06.102 How to make 800 urban Chinese commute 08:07.608 --> 08:09.025 on a daily basis? 08:09.824 --> 08:12.952 We have to utilize all different tools, 08:12.952 --> 08:14.452 vehicles together. 08:14.470 --> 08:16.781 We not only just provide taxi 08:16.781 --> 08:19.864 but also private cars, but also buses 08:20.301 --> 08:24.006 and we have a few innovated product Hitch, Chauffeur 08:24.006 --> 08:26.506 we can introduce to you later. 08:26.693 --> 08:28.401 That's specifically what we are doing. 08:28.401 --> 08:31.200 We are promoting commuting service 08:31.200 --> 08:32.950 for all urban Chinese 08:33.173 --> 08:36.006 and we are happy that we actually, 08:36.435 --> 08:39.163 we are the largest as Helen mentioned. 08:39.163 --> 08:41.815 We actually completed 40 million rides 08:41.815 --> 08:43.232 on a daily basis. 08:43.396 --> 08:44.792 People probably don't have an idea 08:44.792 --> 08:47.069 what does 40 million rides mean. 08:47.069 --> 08:49.736 40 rides million mean five times 08:50.767 --> 08:53.879 of ride sharing market in US in total, 08:53.879 --> 08:56.892 and that's what we are completing on a daily basis. 08:56.892 --> 09:00.706 And that also means close to 90% of market share 09:00.706 --> 09:02.206 in private car and 09:03.397 --> 09:06.314 over 90% market share in taxi. 09:07.044 --> 09:09.563 By scale-wise we are the largest 09:09.563 --> 09:11.766 but this is just the beginning 09:11.766 --> 09:13.764 because China has a huge market. 09:13.764 --> 09:16.097 And in terms of penetration, 09:16.124 --> 09:19.871 only 1% urban rides are conducted through ride sharing. 09:19.871 --> 09:22.788 There's a huge room for us to grow. 09:23.103 --> 09:25.043 Again, we are really happy to be here 09:25.043 --> 09:27.352 because from Didi's perspective, 09:27.352 --> 09:29.123 there's always something good to learn 09:29.123 --> 09:32.867 from new friends and partners I come to know today. 09:32.867 --> 09:35.367 It's a great honor. Thank you. 09:35.694 --> 09:36.527 - Great. 09:36.860 --> 09:38.263 Speaking of Didi Chuxing, 09:38.263 --> 09:40.304 I guess people over here in Silicon Valley 09:40.304 --> 09:42.933 probably are the most familiar with 09:42.933 --> 09:45.321 in terms of the news that was recently reported 09:45.321 --> 09:47.321 on the Apple investment. 09:47.391 --> 09:51.453 That was another reason for people in the Silicon Valley 09:51.453 --> 09:54.370 to look at this particular new firm 09:54.652 --> 09:57.402 which is the largest in the world 09:57.410 --> 10:00.168 with probably a different perspective. 10:00.168 --> 10:03.251 But if you think about the investment 10:03.838 --> 10:05.421 kind of perspective 10:05.620 --> 10:07.874 in terms of having the application in China, 10:07.874 --> 10:10.554 but then capital from the US going to China 10:10.554 --> 10:13.007 to fund some cutting edge technology, 10:13.007 --> 10:15.590 and a very powerful firm there. 10:16.968 --> 10:18.473 I mean, that's probably more 10:18.473 --> 10:21.223 of what we have seen in the past. 10:21.226 --> 10:23.744 My next question is actually for Professor Zhang 10:23.744 --> 10:26.577 who is also the founder of Danhua, 10:27.329 --> 10:31.246 Danhua Capital that he started three years ago. 10:31.412 --> 10:32.862 I was wondering because you mentioned 10:32.862 --> 10:34.229 something rather different 10:34.229 --> 10:35.397 because you were saying that 10:35.397 --> 10:37.433 you were trying to connect Stanford 10:37.433 --> 10:40.090 as well as the innovation at Stanford, 10:40.090 --> 10:43.692 as well as investors and entrepreneurs in China. 10:43.692 --> 10:46.079 And you were possibly reversing that 10:46.079 --> 10:49.530 and possibly using the Chinese capital to come here 10:49.530 --> 10:51.589 and fund the innovations here. 10:51.589 --> 10:53.655 How exactly do you do that 10:53.655 --> 10:56.488 and how is Danhua Capital involved 10:57.583 --> 10:59.402 over the last three years? 10:59.402 --> 11:00.402 - Yes. Yeah. 11:00.703 --> 11:01.536 Thank you very much. 11:01.536 --> 11:04.464 I really appreciate this wonderful opportunity. 11:04.464 --> 11:06.051 Basically I'm wearing two hats. 11:06.051 --> 11:07.968 On one side I'm a guest 11:07.988 --> 11:10.247 to this very distinguished conference. 11:10.247 --> 11:12.985 This is the very first time I had been to GES 11:12.985 --> 11:15.280 and already tremendously impressed. 11:15.280 --> 11:17.181 On the other hand, this is taking place 11:17.181 --> 11:20.748 at Stanford University so I'm also being a host 11:20.748 --> 11:24.915 to all of you especially to my very distinguished panelists. 11:25.881 --> 11:27.914 A very brief story about myself. 11:27.914 --> 11:31.159 This is about entrepreneurship in China. 11:31.159 --> 11:34.645 I was born in China so I at least fit that part of the bill 11:34.645 --> 11:36.236 and also three years ago, 11:36.236 --> 11:40.403 I started kind of doing something that's entrepreneurial 11:41.022 --> 11:42.739 which is quite characteristic 11:42.739 --> 11:46.116 of the Stanford professors and to Stanford students. 11:46.116 --> 11:47.989 Basically I was born in China 11:47.989 --> 11:50.693 but I had been educated mostly in the West 11:50.693 --> 11:53.909 for both my undergraduate in Germany actually, 11:53.909 --> 11:55.826 and then PhD in the US. 11:56.487 --> 11:58.564 I had been a scientist and a professor 11:58.564 --> 12:01.521 at Stanford University for 23 years. 12:01.521 --> 12:04.171 I have been basically at the cutting edge 12:04.171 --> 12:06.004 of scientific research 12:07.438 --> 12:09.761 basically inventing new ways 12:09.761 --> 12:12.471 in which we can sustain in the extent 12:12.471 --> 12:14.001 the life of Moore's Law. 12:14.001 --> 12:15.696 Finding new ways how electrons 12:15.696 --> 12:18.279 can move inside semiconductors. 12:18.475 --> 12:21.703 Through my scientific research what I find is that 12:21.703 --> 12:23.784 Stanford is still a wonderful 12:23.784 --> 12:26.015 and perhaps still the best place 12:26.015 --> 12:28.275 for the most original kind of fuel 12:28.275 --> 12:30.358 to one idea to originate, 12:30.433 --> 12:32.395 to be born in Stanford University. 12:32.395 --> 12:34.125 But once there's a direction, 12:34.125 --> 12:35.618 China can move very fast 12:35.618 --> 12:37.618 and to execute extremely well. 12:37.618 --> 12:40.519 I had been going back and forth between Stanford 12:40.519 --> 12:42.481 and visiting universities in China 12:42.481 --> 12:44.330 for example Tsinghua University, 12:44.330 --> 12:47.624 establish broad collaboration within my own field 12:47.624 --> 12:50.025 and very quickly, China became 12:50.025 --> 12:52.210 the world leader in this particular field 12:52.210 --> 12:54.460 which I originally founded. 12:54.791 --> 12:56.529 Basically I find that this is 12:56.529 --> 12:59.010 a very, very good model of collaboration 12:59.010 --> 13:01.714 because what China needs right now the most 13:01.714 --> 13:02.881 is innovation. 13:03.231 --> 13:06.557 But innovation always has to start with a seed 13:06.557 --> 13:10.724 going from almost from nothing to a brand new idea. 13:10.947 --> 13:14.238 And that's in environment like Stanford University 13:14.238 --> 13:16.271 where "Die Luft der Freiheit weht," 13:16.271 --> 13:18.521 this is our motto which says that 13:18.521 --> 13:20.142 the air of the freedom blows. 13:20.142 --> 13:22.490 This is still perhaps the best environment 13:22.490 --> 13:24.107 and with the brightest in minds 13:24.107 --> 13:27.763 which came all over the world to Stanford University. 13:27.763 --> 13:30.727 Basically three years ago I started to 13:30.727 --> 13:32.727 really do this seriously 13:33.099 --> 13:35.455 to kind of transplant to the model 13:35.455 --> 13:37.372 I successfully executed 13:37.546 --> 13:40.014 in my scientific research collaboration 13:40.014 --> 13:42.264 to the world of innovation. 13:42.423 --> 13:45.645 Even before I started my venture fund in the past, 13:45.645 --> 13:48.857 I have done some into investment on Stanford. 13:48.857 --> 13:50.563 In particular, I was fortunately 13:50.563 --> 13:53.480 investing a company of my neighbor. 13:53.973 --> 13:56.763 When you walk around Stanford University 13:56.763 --> 14:00.085 it's a vast campus which is very different from 14:00.085 --> 14:02.126 other places on the East Coast. 14:02.126 --> 14:05.666 About 1/3 of the professors actually live on campus 14:05.666 --> 14:07.153 so some of us are neighbors 14:07.153 --> 14:09.454 and we get to interact and chat 14:09.454 --> 14:11.080 until one thing lead to the other, 14:11.080 --> 14:13.908 and I had the opportunity to invest in a company 14:13.908 --> 14:15.991 called VMWare which is... 14:16.033 --> 14:18.512 Today we talk about sharing economy, 14:18.512 --> 14:21.159 VMWare is basically sharing of service, 14:21.159 --> 14:23.830 computer service, virtualizing service. 14:23.830 --> 14:25.902 And it's actually the technology 14:25.902 --> 14:29.148 which fundamentally analyze all cloud computing. 14:29.148 --> 14:33.315 It divides a physical survey into many virtual machines. 14:35.550 --> 14:38.300 At one point it was a $48 billion 14:38.934 --> 14:41.178 company in the cloud space. 14:41.178 --> 14:43.653 I get the early taste and so actually 14:43.653 --> 14:46.236 this story is quite ubiquitous. 14:46.876 --> 14:49.959 Our Dean of Engineering, Fred Terman, 14:50.260 --> 14:53.388 wrote the very first check to HP, Hewlett and Packard 14:53.388 --> 14:55.638 to start their own company. 14:56.842 --> 14:58.237 Actually when Google started 14:58.237 --> 15:01.044 very few could understand their business model 15:01.044 --> 15:02.849 and he was again, our Stanford professor 15:02.849 --> 15:04.693 David Cheriton who invested. 15:04.693 --> 15:07.911 Basically I decided it's such a wonderful opportunity 15:07.911 --> 15:10.828 that China needs to have the latest 15:11.016 --> 15:13.900 innovative ideas out of Silicon Valley and Stanford. 15:13.900 --> 15:14.785 And on the other hand, 15:14.785 --> 15:18.181 there's so many entrepreneurship at Stanford. 15:18.181 --> 15:21.241 I have to take in a step in doing a model 15:21.241 --> 15:23.672 which is very rare for a professor to, 15:23.672 --> 15:25.032 I'm still a full time professor 15:25.032 --> 15:27.639 fully involved with scientific research. 15:27.639 --> 15:29.204 But at the same time just start 15:29.204 --> 15:31.464 a venture fund called Danhua. 15:31.464 --> 15:33.497 Actually, for those of you who don't know Chinese, 15:33.497 --> 15:36.588 "dan" roughly means Stanford and "hua" means China, 15:36.588 --> 15:39.718 to build a bridge between Stanford and China. 15:39.718 --> 15:41.586 And also at the same time, 15:41.586 --> 15:44.755 to build a bridge between science and investment 15:44.755 --> 15:47.663 that is also another chasm that needs to be crossed. 15:47.663 --> 15:50.461 Because right now the most innovative ideas 15:50.461 --> 15:52.322 comes from the frontier of science, 15:52.322 --> 15:53.624 but on the other hand, 15:53.624 --> 15:55.934 very few scientists know about investment 15:55.934 --> 15:57.434 and I dare to say, 15:57.441 --> 15:59.615 very few investors know about science. 15:59.615 --> 16:02.553 So we're also trying to bridge that. 16:02.553 --> 16:05.571 I think if we do this well and execute well, 16:05.571 --> 16:08.612 we'll really bring the two major ecosystem 16:08.612 --> 16:11.925 of innovation in US and China into conference, 16:11.925 --> 16:14.390 and there will be wonderful, wonderful opportunities 16:14.390 --> 16:16.557 that could come out of it. 16:16.945 --> 16:18.528 - Great. Thank you. 16:18.572 --> 16:20.329 Actually, China has been going through 16:20.329 --> 16:23.226 a lot of transitions and I think that 16:23.226 --> 16:25.159 what Professor Zhang has been describing 16:25.159 --> 16:27.659 which is China is transforming 16:28.302 --> 16:31.802 away from probably a pure capital importer 16:32.145 --> 16:35.978 to a capital out, to an exporter of a capital, 16:36.736 --> 16:39.066 I think that's really something quite phenomenal. 16:39.066 --> 16:40.309 That's also something that I, 16:40.309 --> 16:43.314 when I was doing my PhD in economics over here at Stanford, 16:43.314 --> 16:45.590 something that I studied for a very long time 16:45.590 --> 16:48.740 because China was in the last 30 to 40 years, 16:48.740 --> 16:50.040 never able to do it 16:50.040 --> 16:53.190 and that's a great progress that I had seen 16:53.190 --> 16:54.878 that it has been made. 16:54.878 --> 16:56.725 In particular, I would like to maybe 16:56.725 --> 16:58.414 focus on China for a moment 16:58.414 --> 17:00.909 because my own profession in macro economics 17:00.909 --> 17:03.514 and also the transitions we have seen in China 17:03.514 --> 17:07.152 has been phenomenal as Mr. Deng has just mentioned. 17:07.152 --> 17:09.753 In particular, I will say that China 17:09.753 --> 17:12.934 and made in China type of labels in the past 17:12.934 --> 17:15.601 has been very much identified as 17:15.853 --> 17:19.484 something as equivalent to probably poorly-made 17:19.484 --> 17:22.083 and low end manufacturing consumer goods. 17:22.083 --> 17:23.587 But that's faster changing. 17:23.587 --> 17:25.504 I mean, in a lot of us, 17:26.403 --> 17:28.438 I mean China now is probably 17:28.438 --> 17:32.012 going to be on the verge of technology for, 17:32.012 --> 17:34.095 for example, smartphones, 17:34.239 --> 17:37.520 for examples, PCs, not to mention robotics 17:37.520 --> 17:41.603 and other FinTech and a lot of interesting ideas. 17:42.678 --> 17:45.311 In particular, I would like to ask Mr. Deng, 17:45.311 --> 17:47.213 what do you think about the opportunities 17:47.213 --> 17:49.119 that you identify in China today 17:49.119 --> 17:52.611 given the transition that China is experiencing 17:52.611 --> 17:54.780 away from the manufacturing-based economy, 17:54.780 --> 17:57.174 more towards a service-based economy, 17:57.174 --> 18:00.289 away from investment-heavy type of economy 18:00.289 --> 18:03.409 and more towards a consumption-driven economy? 18:03.409 --> 18:06.476 Do you see opportunities in certain areas 18:06.476 --> 18:09.309 and what do you identify recently? 18:09.347 --> 18:11.656 Thank you. - [Feng] Absolutely. 18:11.656 --> 18:15.823 Actually instead of just going into the specific sectors 18:15.944 --> 18:19.532 what are the hot areas as a venture capitalist we invest, 18:19.532 --> 18:23.275 I would rather start with what are the driving force, 18:23.275 --> 18:26.525 the trend for the next five to 10 years 18:27.359 --> 18:30.109 to basically attract us to invest 18:30.680 --> 18:31.981 in those specific sectors. 18:31.981 --> 18:35.648 I think I can identify three driving forces. 18:36.496 --> 18:38.996 The first one as you mentioned 18:39.360 --> 18:42.716 maybe consumer variation or domestic consumption 18:42.716 --> 18:45.133 which to me is a lot of times 18:45.413 --> 18:48.789 it's just the lifestyle change for the Chinese people, 18:48.789 --> 18:51.539 middle class people specifically. 18:51.752 --> 18:53.712 I'll use one specific example, all right? 18:53.712 --> 18:56.404 The high speed railroad, railway. 18:56.404 --> 18:59.071 When they're just firstly built, 18:59.109 --> 19:00.993 people were suspicious about 19:00.993 --> 19:03.761 the utilization of the high speed railway, 19:03.761 --> 19:05.584 and people are questioning, you know, 19:05.584 --> 19:08.648 the rich people can take the airplane. 19:08.648 --> 19:12.141 And maybe lower income people would still take the, 19:12.141 --> 19:13.724 we call it dongche, 19:14.428 --> 19:16.545 the start speed, the train with start speed 19:16.545 --> 19:17.753 which is the lowest speed, 19:17.753 --> 19:21.753 about probably close to 100 kilometers per hour, 19:21.820 --> 19:23.403 that kind of speed. 19:23.915 --> 19:26.498 The high speed is close to 300, 19:26.562 --> 19:28.395 300 or something like. 19:28.965 --> 19:33.132 Three years after this new high speed railway was built, 19:33.295 --> 19:34.919 you can see the sort of, 19:34.919 --> 19:38.586 the economic coach class ticket hard to buy. 19:38.697 --> 19:40.328 Even if at the very beginning 19:40.328 --> 19:42.466 it's kind of easy to get into, 19:42.466 --> 19:45.799 like coach class is pretty empty, right? 19:45.861 --> 19:48.331 But three years after that it's crowded 19:48.331 --> 19:49.823 and so hard to get a ticket. 19:49.823 --> 19:50.905 And another two years, 19:50.905 --> 19:52.821 the first class ticket or the 19:52.821 --> 19:55.329 business class ticket is hard to get. 19:55.329 --> 19:58.004 You can see that people used to take 19:58.004 --> 19:59.837 the lower speed train, 20:00.309 --> 20:02.926 now upgrade themselves into the high speed train. 20:02.926 --> 20:07.093 That's a very good indication of the middle class people 20:07.119 --> 20:09.404 actually they have now started to change 20:09.404 --> 20:11.487 to a better quality life. 20:11.570 --> 20:13.266 And if you look at the consumer spending 20:13.266 --> 20:15.680 for the last, I would say five years, right, 20:15.680 --> 20:19.040 actually if the GDP growth is kind of slowing down 20:19.040 --> 20:21.831 but the consumer spending is not slowing down. 20:21.831 --> 20:25.128 And with the sheer size of the Chinese economy today 20:25.128 --> 20:28.286 whether it's second or largest in the world, 20:28.286 --> 20:29.637 and you can think about 20:29.637 --> 20:31.567 and the consumer spending continue to grow. 20:31.567 --> 20:33.636 There are lots of things actually 20:33.636 --> 20:36.719 start to happen which in the old days 20:37.400 --> 20:38.742 it doesn't even exist. 20:38.742 --> 20:41.659 For example right, one of the areas 20:41.999 --> 20:45.039 of interest is the entertainment industry. 20:45.039 --> 20:48.956 If you look at the cinema, the box office today 20:49.093 --> 20:50.952 and the growth rate every year, 20:50.952 --> 20:54.119 30, 40%, sometimes even 50%. 20:54.829 --> 20:57.504 And a lot of different type of TV series 20:57.504 --> 21:00.917 and those investments into this, we'll call it content, 21:00.917 --> 21:02.567 different content industry, 21:02.567 --> 21:04.559 and sports-related industry. 21:04.559 --> 21:07.396 We just invested in a company called (mumbles). 21:07.396 --> 21:08.396 It's boxing. 21:09.151 --> 21:11.954 Of course, it's a sports-related marathon. 21:11.954 --> 21:14.371 Ice hockey even if it's small 21:14.484 --> 21:17.430 but in China you still find it actually 21:17.430 --> 21:19.808 company doing this ice hockey thing actually 21:19.808 --> 21:20.672 and make a lot of money. 21:20.672 --> 21:24.839 And it's hard to go in a team or something, right? 21:24.942 --> 21:27.692 And also the health care service. 21:27.718 --> 21:30.696 Today it's another sector related to the 21:30.696 --> 21:32.004 consumer spending, 21:32.004 --> 21:36.171 specific specialist in different type of health care. 21:36.668 --> 21:39.309 Whether the eye, speech therapy. 21:39.309 --> 21:41.293 It didn't happen before, now starting to happen. 21:41.293 --> 21:43.254 There are a lot of different specific sectors 21:43.254 --> 21:44.778 you can see it's happening. 21:44.778 --> 21:48.362 That's a whole thing about the consumerization 21:48.362 --> 21:50.362 or the lifestyle change. 21:50.385 --> 21:53.368 The second driving force is the internet plans 21:53.368 --> 21:55.943 or sometimes people call it plans internet. 21:55.943 --> 21:58.335 Basically the traditional industry 21:58.335 --> 22:00.516 combined with the internet technologies, 22:00.516 --> 22:02.683 that's actually driving the whole different things. 22:02.683 --> 22:06.074 For example, we know the internet financing, right? 22:06.074 --> 22:07.969 E-commerce has happened or 22:07.969 --> 22:10.799 it has been happening for the last 10 years. 22:10.799 --> 22:12.084 Alibaba is a good example 22:12.084 --> 22:14.388 but internet financing started to happen 22:14.388 --> 22:17.138 about I will say three years ago. 22:17.741 --> 22:21.337 Didi is another way of combining the internet technology 22:21.337 --> 22:23.479 with the traditional industry. 22:23.479 --> 22:24.904 And online education, 22:24.904 --> 22:27.677 we just invested in a company called VIPKID, 22:27.677 --> 22:30.731 actually last year, September of last year. 22:30.731 --> 22:34.814 The revenue growth each month from then to now is 22:35.353 --> 22:36.936 23 times per month. 22:37.756 --> 22:38.923 It's actually, 22:39.467 --> 22:42.717 basically the motto is US and Canadian, 22:44.426 --> 22:46.474 I mean American and Canadian teachers, 22:46.474 --> 22:48.731 elementary school teacher, kindergarten teacher 22:48.731 --> 22:52.357 directly teach Chinese student, Chinese kid, 22:52.357 --> 22:55.283 five to 12 years old with the internet. 22:55.283 --> 22:58.950 Using the one on one basically video service 22:59.494 --> 23:01.527 just teaching those Chinese kids. 23:01.527 --> 23:04.021 Actually, its growth very fast. 23:04.021 --> 23:05.854 That's another way of. 23:06.036 --> 23:08.074 We used to think about online education, 23:08.074 --> 23:11.280 it's just complementary part of the whole offline education 23:11.280 --> 23:12.618 but now things have changed. 23:12.618 --> 23:14.201 This is pure online 23:14.995 --> 23:18.938 and of course the enterprise application is another thing. 23:18.938 --> 23:22.355 In China, enterprise application software 23:22.802 --> 23:25.385 lags behind US by a big margin. 23:25.683 --> 23:27.822 But just because it doesn't exist 23:27.822 --> 23:29.824 specially for the SMB business, 23:29.824 --> 23:33.541 there's no IT tools or softwares there, right? 23:33.541 --> 23:36.041 Now with the mobile smartphone 23:36.205 --> 23:40.309 and they feel really can improve the productivity, 23:40.309 --> 23:42.541 and with the cloud-based SaaS service 23:42.541 --> 23:44.726 not gonna spend much about it. 23:44.726 --> 23:46.393 That actually taken, 23:47.016 --> 23:49.692 I think it's happening very, very fast. 23:49.692 --> 23:51.880 We invest in a company called Fancy Share, 23:51.880 --> 23:54.108 it's (speaks in foreign language). 23:54.108 --> 23:57.545 You can see the takeaway of this small medium business, 23:57.545 --> 24:00.215 how quickly they adopt this newest technology, 24:00.215 --> 24:02.414 and the mobile-based technology. 24:02.414 --> 24:05.046 The third one is related to technology. 24:05.046 --> 24:06.706 Like you said, China used to be a 24:06.706 --> 24:10.456 manufacturing-driven, labor-intensive economy 24:11.156 --> 24:12.989 but today, on one side 24:14.657 --> 24:16.621 because of the competitive, 24:16.621 --> 24:18.845 they want to improve their competitiveness, right? 24:18.845 --> 24:21.020 It's actually pulled the technology 24:21.020 --> 24:22.805 to be used in their business. 24:22.805 --> 24:24.831 Second thing is actually, 24:24.831 --> 24:27.793 I think there's another force basically 24:27.793 --> 24:31.960 that binds these technologies in the last five years 24:32.236 --> 24:34.653 whether it's in the IT space, 24:36.494 --> 24:39.918 artificial intelligence-driven type of things, 24:39.918 --> 24:42.918 including all these wearable devices 24:43.390 --> 24:46.651 and (mumbles) cloud infrastructure, 24:46.651 --> 24:48.068 all these things, right? 24:48.068 --> 24:50.401 And to the health care side. 24:50.787 --> 24:53.870 The genomic services like sequencing, 24:55.540 --> 24:57.076 next generation sequencing 24:57.076 --> 25:00.326 and immunotherapy for cancer treatment. 25:02.271 --> 25:04.854 There are type of different new 25:05.624 --> 25:07.239 and also brain development. 25:07.239 --> 25:09.072 A lot of things are based on the brain development 25:09.072 --> 25:11.633 actually started to become in to the 25:11.633 --> 25:13.446 commercial service in China. 25:13.446 --> 25:16.598 These are purely driven by technology advancement 25:16.598 --> 25:19.692 and I see that over the next five to 10 years, 25:19.692 --> 25:21.257 that's another way of coming 25:21.257 --> 25:22.706 and that's gonna drive us to invest 25:22.706 --> 25:25.018 in specific interesting opportunities. 25:25.018 --> 25:27.547 These are the three big driving force 25:27.547 --> 25:29.566 and we get into different sectors. 25:29.566 --> 25:30.524 - I can't agree more. 25:30.524 --> 25:32.107 I think some of the 25:33.501 --> 25:35.026 interesting developments that you mentioned, 25:35.026 --> 25:37.218 Mr. Deng, I think really resonates with 25:37.218 --> 25:40.155 what I have been explaining to our investors, 25:40.155 --> 25:43.026 especially institutional investors all over the world 25:43.026 --> 25:45.591 who might be interested in China-related assets. 25:45.591 --> 25:48.790 In particular, the example of high speed rail, I love it. 25:48.790 --> 25:51.790 I mean, I have seen my fair share of 25:51.926 --> 25:53.615 so called panda bears. 25:53.615 --> 25:56.179 There's those people who are particularly 25:56.179 --> 25:58.216 bearish on China because of quote, unquote, 25:58.216 --> 25:59.344 "over investment," 25:59.344 --> 26:02.081 and a perfect example is the high speed rail. 26:02.081 --> 26:05.217 But I strongly recommend these China bears 26:05.217 --> 26:06.273 to go and take a look 26:06.273 --> 26:08.146 and maybe take a ride one day 26:08.146 --> 26:10.246 in one of those high speed rail. 26:10.246 --> 26:12.459 It is a life-changing experience. 26:12.459 --> 26:15.228 And going back to what you suggested elsewhere, 26:15.228 --> 26:17.616 I think a capital probably at the end of the day 26:17.616 --> 26:20.006 really helps in one thing which is 26:20.006 --> 26:21.742 allowing the technology 26:21.742 --> 26:23.878 which probably has been there for some time 26:23.878 --> 26:26.711 to really be applied in real life. 26:27.529 --> 26:29.003 It takes time to do that 26:29.003 --> 26:31.886 and it takes maybe sometimes a generation 26:31.886 --> 26:34.149 to make those changes happen. 26:34.149 --> 26:36.308 But I think that's exactly why we're here 26:36.308 --> 26:40.352 and hopefully that we can get things happen a bit faster 26:40.352 --> 26:41.839 and more efficiently. 26:41.839 --> 26:45.011 On that, I would like to pass on to Jean. 26:45.011 --> 26:47.428 Jean, in terms of how you see 26:48.088 --> 26:51.581 running a business especially from a startup perspective, 26:51.581 --> 26:53.418 running a business even though 26:53.418 --> 26:56.445 it's a very big one nowadays in China, 26:56.445 --> 26:59.717 how do you find that being more difficult 26:59.717 --> 27:03.050 or more challenging than that in the US? 27:03.197 --> 27:05.029 Or you think that they are also 27:05.029 --> 27:07.807 very interesting opportunities at the same time, 27:07.807 --> 27:09.724 given the very talented 27:09.897 --> 27:12.239 and young and bright people you have hired? 27:12.239 --> 27:13.072 - Sure. 27:13.690 --> 27:15.463 I definitely think it's a very interesting 27:15.463 --> 27:17.429 time right now for China like 27:17.429 --> 27:19.071 what Mr. Deng just mentioned. 27:19.071 --> 27:20.826 Actually, our companies do, 27:20.826 --> 27:22.706 we consider ourselves as a startup 27:22.706 --> 27:24.873 and we are four years old. 27:25.155 --> 27:27.909 This month is actually our fourth year anniversary 27:27.909 --> 27:31.242 and I joined this company two years ago. 27:31.876 --> 27:35.533 I have spent my first 12 years in investment. 27:35.533 --> 27:38.430 Didi was actually my last opportunity 27:38.430 --> 27:40.513 I took a serious look at. 27:40.611 --> 27:42.316 Unfortunately, we couldn't get in 27:42.316 --> 27:43.517 because it was too competitive. 27:43.517 --> 27:46.559 There were too many investors in already 27:46.559 --> 27:47.971 but at that time I realized, 27:47.971 --> 27:49.786 this is such an interesting opportunity 27:49.786 --> 27:51.557 and probably the only chance for me 27:51.557 --> 27:54.744 to be part of the history, if you will. 27:54.744 --> 27:58.480 Because when I moved back to Beijing four years ago, 27:58.480 --> 28:00.495 I found myself many times 28:00.495 --> 28:02.216 gassed out in the middle of the road 28:02.216 --> 28:05.741 trying to hail a taxi or trying to get home. 28:05.741 --> 28:07.573 In the rain or in a bad weather, 28:07.573 --> 28:10.501 it was definitely not a very pleasant experience 28:10.501 --> 28:14.044 and there was simply no solution back then. 28:14.044 --> 28:16.269 And right now, four years now 28:16.269 --> 28:18.852 I never need to wait for a car. 28:19.305 --> 28:22.366 There's always a car or a ride waiting for me, 28:22.366 --> 28:24.860 it just feels so different, right? 28:24.860 --> 28:27.080 When you simply have no solution to 28:27.080 --> 28:29.967 now you have so many different solutions. 28:29.967 --> 28:32.217 I feel very proud of what we are doing. 28:32.217 --> 28:34.830 If you open our app you can find 28:34.830 --> 28:36.094 a very different solution. 28:36.094 --> 28:37.981 You can get a taxi if you want, 28:37.981 --> 28:39.293 you can get a black car, 28:39.293 --> 28:41.992 you can get even a Tesla on our platform. 28:41.992 --> 28:43.266 Or you can just figure out 28:43.266 --> 28:45.095 where to take the shuttle. 28:45.095 --> 28:48.978 You can also take a very cool social ride we call Hitch. 28:48.978 --> 28:51.644 You can even ask a driver to pick you up. 28:51.644 --> 28:53.994 These are the solutions we're providing to people 28:53.994 --> 28:57.232 so it makes people's lives much better. 28:57.232 --> 29:00.315 And now our business is in 400 cities 29:00.655 --> 29:02.747 which means in 400 cities, 29:02.747 --> 29:05.330 people at least have an option. 29:05.446 --> 29:07.735 Option they don't need to go out 29:07.735 --> 29:09.415 and stand in the middle of the streets 29:09.415 --> 29:11.998 like what I did four years ago. 29:12.364 --> 29:16.531 This is a very interesting opportunity for a startup. 29:16.670 --> 29:19.151 I'm here very excited to talk about innovation 29:19.151 --> 29:20.818 because in our mind, 29:21.385 --> 29:25.468 innovation is really about tackling local issues, 29:25.744 --> 29:29.320 specific issues to regions or to the people. 29:29.320 --> 29:31.653 I think for China right now, 29:32.472 --> 29:34.033 what we are facing is 29:34.033 --> 29:37.281 China is simply so complex and so dynamic 29:37.281 --> 29:41.266 so you can't just have one solution to fit everyone. 29:41.266 --> 29:43.763 When the company first got started 29:43.763 --> 29:45.395 it was a taxi-hailing app. 29:45.395 --> 29:49.145 Like a taxi dispatch service for taxi drivers 29:49.346 --> 29:52.360 and now we are expanded into seven verticals 29:52.360 --> 29:55.367 and providing the solutions I told you about. 29:55.367 --> 29:59.051 And there are a lot of very local innovation. 29:59.051 --> 30:01.296 One in our business I'll talk about is 30:01.296 --> 30:04.796 how do you match supply and demand, right? 30:05.151 --> 30:07.980 For people intuitively when they open an app, 30:07.980 --> 30:09.563 when they click it, 30:09.574 --> 30:12.045 they feel like the car should be here. 30:12.045 --> 30:14.390 But somehow when the car is not here in 10 minutes, 30:14.390 --> 30:15.973 you get frustrated. 30:16.280 --> 30:18.783 You just couldn't figure out why. 30:18.783 --> 30:22.069 But actually that's a very real problem for our business 30:22.069 --> 30:24.797 because you can never perfectly match 30:24.797 --> 30:28.517 supply with the demand especially in a peak hour. 30:28.517 --> 30:31.239 That actually takes really fundamental technology 30:31.239 --> 30:32.521 to break through this. 30:32.521 --> 30:34.438 I give you one example. 30:34.611 --> 30:37.494 Let's say from Stanford Center here, 30:37.494 --> 30:40.235 maybe two hours later there will be 100 people 30:40.235 --> 30:41.843 trying to go somewhere. 30:41.843 --> 30:45.343 When you want a ride, you want a ride now. 30:45.710 --> 30:47.949 You don't want to wait for five more minutes, 30:47.949 --> 30:49.389 you want it right now. 30:49.389 --> 30:51.843 But what if there are only 20 cars, 30:51.843 --> 30:55.676 whatever, taxi or luxury cars or express cars, 30:55.686 --> 30:56.902 only 20 of them. 30:56.902 --> 30:58.724 You will never be able to match 30:58.724 --> 31:00.974 the supply with the demand. 31:00.975 --> 31:03.139 What we are doing is we take advantage 31:03.139 --> 31:05.379 of the huge data we accumulated 31:05.379 --> 31:07.063 over the past four years. 31:07.063 --> 31:10.026 Let's say for Stanford Center or I use Beijing. 31:10.026 --> 31:11.669 For a conference center, 31:11.669 --> 31:13.480 we accumulate all the data 31:13.480 --> 31:15.932 and now we're gradually learning itself. 31:15.932 --> 31:18.399 It's the AI we talked about, right? 31:18.399 --> 31:20.596 Be it a rainy day, a sunny day, 31:20.596 --> 31:23.559 a weekend, a weekday, a peak hour or tough hour, 31:23.559 --> 31:26.450 we record that data, we track the data 31:26.450 --> 31:28.435 so the systems gets smarter, 31:28.435 --> 31:31.673 and so it can predict the demand coming out 31:31.673 --> 31:35.506 from a particular area in the next 30 minutes. 31:35.703 --> 31:38.631 Before that, the system can dispatch 31:38.631 --> 31:40.881 enough supply to that area. 31:43.763 --> 31:46.180 What better is it can combine 31:46.219 --> 31:49.802 some of the rides together which we call pooling service. 31:49.802 --> 31:51.675 That's to make efficient use 31:51.675 --> 31:53.559 of all the existing tools we have. 31:53.559 --> 31:56.261 This is what we call demand prediction. 31:56.261 --> 31:59.844 It takes a lot of technology and innovation 32:00.004 --> 32:03.789 and use of artificial intelligence to do that. 32:03.789 --> 32:05.900 Another example I want to give you 32:05.900 --> 32:08.650 in terms of product innovation is 32:09.404 --> 32:10.881 in here I don't know, 32:10.881 --> 32:14.714 in US the UI is a big issue, in China as well. 32:15.719 --> 32:18.526 When after work, there are a lot of people, 32:18.526 --> 32:21.514 or maybe I'll use Helen's husband as an example. 32:21.514 --> 32:23.514 He's sitting down there. 32:23.793 --> 32:26.802 Let's say, Helen's husband, Mr. Huang 32:26.802 --> 32:30.135 is a very respectable venture capitalist 32:30.350 --> 32:33.850 and he likes to drink sometimes, you know? 32:33.878 --> 32:35.893 Some mellow drinks. - [Helen] Which is not true. 32:35.893 --> 32:36.866 (laughs) 32:36.866 --> 32:38.174 - [Jean] When he goes to, 32:38.174 --> 32:40.928 he has his own car which is a very nice car 32:40.928 --> 32:43.345 and when he drives to the bar 32:43.381 --> 32:45.671 he grabs some drink with some friends 32:45.671 --> 32:47.193 but he has a problem. 32:47.193 --> 32:49.360 Because he has a car there 32:49.456 --> 32:52.326 he couldn't know how he can get his car home 32:52.326 --> 32:54.043 and himself home, right? 32:54.043 --> 32:55.646 He can get a private car service, right? 32:55.646 --> 32:57.416 Here you can get Uber or Lyft. 32:57.416 --> 32:59.639 In Beijing you also can get a service 32:59.639 --> 33:01.305 but you cannot figure out how to get 33:01.305 --> 33:03.008 your car home the next day. 33:03.008 --> 33:05.132 You probably need to take another ride 33:05.132 --> 33:06.957 the next day to get your car. 33:06.957 --> 33:09.874 It's extremely inconvenient, right? 33:09.882 --> 33:13.923 We invent this service which is we call Chauffeur. 33:13.923 --> 33:17.090 It's basically a driver without a car. 33:18.399 --> 33:22.566 He will come to meet with Mr. Huang after his drank 33:23.873 --> 33:25.001 (laughs) 33:25.001 --> 33:29.168 and drive Mr. Huang back home using Mr. Huang's car. 33:30.547 --> 33:32.908 He can use the scooter to meet with him 33:32.908 --> 33:35.700 and put his scooter at the trunk of his car 33:35.700 --> 33:38.472 and drive him home, and then he leaves. 33:38.472 --> 33:40.345 And the good thing is Mr. Huang doesn't need 33:40.345 --> 33:42.267 to worry about getting his car home 33:42.267 --> 33:43.850 or worry about DUI. 33:44.604 --> 33:46.226 I'm sure he doesn't do that. 33:46.226 --> 33:47.183 (laughs) 33:47.183 --> 33:48.795 And for our driver it's good too 33:48.795 --> 33:50.164 because on our platform, 33:50.164 --> 33:53.281 we have a lot of very good quality taxi drivers 33:53.281 --> 33:56.996 who can be off shift or private car service drivers. 33:56.996 --> 33:58.913 When they are off shift 33:59.247 --> 34:01.908 for this business they can earn a lot more 34:01.908 --> 34:05.238 because the price per trip is much higher. 34:05.238 --> 34:08.571 We just realized there's a perfect match 34:09.161 --> 34:10.777 for the supply and the demand 34:10.777 --> 34:13.769 and that's the local innovation we are talking about. 34:13.769 --> 34:16.560 I don't know if there is anything like this 34:16.560 --> 34:18.102 here in the States but 34:18.102 --> 34:21.340 in China it's an extremely popular service right now. 34:21.340 --> 34:22.626 There are three million people 34:22.626 --> 34:24.924 using our service every month. 34:24.924 --> 34:27.038 That's the local innovation. 34:27.038 --> 34:27.871 - Great. 34:28.442 --> 34:31.782 Given how familiar we are with each other and our families, 34:31.782 --> 34:34.104 I feel obligated of making an example 34:34.104 --> 34:37.015 of your husband, Jean, who is sitting down there. 34:37.015 --> 34:38.521 (laughs) 34:38.521 --> 34:41.681 I'll think about what to ask of Charlie. 34:41.681 --> 34:43.089 - Take your time. 34:43.089 --> 34:43.922 - I will. 34:44.296 --> 34:46.542 But in the mean time I would like to 34:46.542 --> 34:49.295 in particular focus on one interesting fact 34:49.295 --> 34:51.149 which is a common feature that 34:51.149 --> 34:53.649 all four of us actually share. 34:53.664 --> 34:57.164 Which is we were all born, raised in China 34:59.254 --> 35:02.125 and then subsequently we came to the US 35:02.125 --> 35:05.201 to get our advanced studies over here. 35:05.201 --> 35:07.593 And then Professor Zhang actually studied at 35:07.593 --> 35:09.234 and still is teaching 35:09.234 --> 35:12.396 at one of the best universities in the US. 35:12.396 --> 35:15.410 There is this common background among all of us 35:15.410 --> 35:17.327 and I would like to see 35:18.617 --> 35:20.409 to what extent that Professor Zhang 35:20.409 --> 35:23.736 that would you identify the greater opportunities 35:23.736 --> 35:26.653 for China and the US to collaborate 35:27.043 --> 35:28.699 in certain areas in terms of 35:28.699 --> 35:31.490 promoting innovation and entrepreneurship, 35:31.490 --> 35:34.573 both within and outside of education? 35:35.028 --> 35:36.094 Thanks. - [Shoucheng] Yeah. 35:36.094 --> 35:38.344 Yeah, so of course I can... 35:38.747 --> 35:40.230 Yeah, I think this is really 35:40.230 --> 35:41.462 one thing we share all in common 35:41.462 --> 35:43.568 that we were born in China 35:43.568 --> 35:45.068 and we came to the West. 35:45.068 --> 35:47.318 I came out of China in 1980 35:48.168 --> 35:50.289 when China was just opening up. 35:50.289 --> 35:52.477 It's just absolutely stunning, 35:52.477 --> 35:55.251 really remarkable how much China has changed. 35:55.251 --> 35:58.640 But I like to come back to the issue of education again 35:58.640 --> 36:02.140 and to echo what Mr. Deng Feng was saying. 36:03.058 --> 36:05.944 Basically, China is rapidly upgrading 36:05.944 --> 36:08.944 and the demand for education is also 36:09.147 --> 36:11.091 really, really tremendous. 36:11.091 --> 36:13.758 Not only K through 12 in college 36:14.530 --> 36:17.234 but the whole environment of entrepreneurship 36:17.234 --> 36:20.234 demands a constant mode of learning, 36:20.591 --> 36:24.601 and that is what really characterizes entrepreneurship. 36:24.601 --> 36:27.435 This whole movement that we're witnessing in China 36:27.435 --> 36:31.018 really leads to a very positive effect that 36:31.150 --> 36:33.011 where in (speaks in foreign language), 36:33.011 --> 36:34.937 so everybody is trying to innovate 36:34.937 --> 36:38.677 but we're also in the mode of (speaks in foreign language). 36:38.677 --> 36:40.927 One thing I find remarkable 36:41.103 --> 36:43.050 every time I go back to China, 36:43.050 --> 36:46.057 people organize some forum for me to speak. 36:46.057 --> 36:47.902 Last time it was in April, 36:47.902 --> 36:50.069 it was a Saturday that was 36:50.375 --> 36:52.236 people take time to relax 36:52.236 --> 36:54.339 but they dedicated a whole day 36:54.339 --> 36:58.498 with more than 10,000 people just hearing my lecture. 36:58.498 --> 36:59.557 I was very touched. 36:59.557 --> 37:02.140 10,000 both online and offline. 37:02.670 --> 37:05.301 I really think that China has great hope 37:05.301 --> 37:08.112 and so one strong indication is that 37:08.112 --> 37:10.086 they are so dedicated in learning. 37:10.086 --> 37:14.253 Today, both Brian from Airbnb and Reid Hoffman said that 37:15.619 --> 37:19.489 because the environment constantly changes upon us 37:19.489 --> 37:22.529 and in order to be successful as an entrepreneur, 37:22.529 --> 37:24.276 one need to constantly adapt 37:24.276 --> 37:26.485 and learn very fast on the job. 37:26.485 --> 37:29.294 And this is what everyone in China is doing 37:29.294 --> 37:31.962 and I feel really there's a great opportunity 37:31.962 --> 37:33.879 even outside of college 37:34.372 --> 37:36.580 for this education or institution. 37:36.580 --> 37:40.308 And also here, what we're seeing is that in Silicon Valley, 37:40.308 --> 37:43.625 almost every week or maybe every other week 37:43.625 --> 37:46.681 there's a delegation, very high level delegation 37:46.681 --> 37:50.240 comprising of the top CEOs and the top investors 37:50.240 --> 37:52.622 coming to Silicon Valley and trying to learn. 37:52.622 --> 37:54.331 And that actually is something 37:54.331 --> 37:56.077 that gives me the greatest hope 37:56.077 --> 37:59.051 that China will very rapidly rise up 37:59.051 --> 38:01.801 in the field of entrepreneurship. 38:01.900 --> 38:04.503 In terms of the area of collaboration, 38:04.503 --> 38:07.705 through my investment work we identified quite a few 38:07.705 --> 38:11.872 and I think they're wonderful, remarkable opportunities 38:11.896 --> 38:13.613 to build such a bridge. 38:13.613 --> 38:16.437 One very first one, we identified quite early on 38:16.437 --> 38:19.381 where a fund was formed three years ago 38:19.381 --> 38:21.214 was the field of ARVR, 38:21.580 --> 38:24.302 augmented reality and virtual reality. 38:24.302 --> 38:27.469 When you look at the natural evolution 38:27.504 --> 38:29.347 of human machine interface, 38:29.347 --> 38:31.710 we used to have a mainframe, IBM mainframe 38:31.710 --> 38:33.723 that people, I don't know what they said 38:33.723 --> 38:35.390 in a huge warehouse. 38:37.050 --> 38:39.356 And then gradually we have the desktop, 38:39.356 --> 38:40.540 then we have the laptop, 38:40.540 --> 38:41.886 then we have the mobile 38:41.886 --> 38:45.333 and everybody is asking what's coming next? 38:45.333 --> 38:47.029 I think there's overall consensus 38:47.029 --> 38:48.840 also coming from government facts 38:48.840 --> 38:51.590 that the next phase will be ARVR. 38:51.869 --> 38:55.426 Everybody is placing bet on what is the next platform 38:55.426 --> 38:57.943 which is equivalent to Apple Macintosh, 38:57.943 --> 39:00.912 equivalent to IBM PC or Apple iPhone 39:00.912 --> 39:02.412 in the ARVR space. 39:03.079 --> 39:05.930 In the space of AI it's more fragmented 39:05.930 --> 39:07.682 but in the space of AR, 39:07.682 --> 39:10.134 at least in the valley and global wide 39:10.134 --> 39:12.068 there are three major companies. 39:12.068 --> 39:15.151 One is Magic Leap invested by Google, 39:15.588 --> 39:17.671 one is Microsoft HoloLens 39:17.678 --> 39:19.782 and then the third company is the company 39:19.782 --> 39:23.256 that we seeded and incubated, it's called Meta. 39:23.256 --> 39:24.715 And they just came out 39:24.715 --> 39:27.256 and in the tech forum it's broadly viewed 39:27.256 --> 39:31.173 as the most promising platform in the AI space. 39:32.078 --> 39:34.302 But through our investment later on 39:34.302 --> 39:36.614 it was followed by Lenovo, by Tencent 39:36.614 --> 39:39.152 and by Li Ka-shing's Horizon Ventures. 39:39.152 --> 39:40.708 There could be opportunity 39:40.708 --> 39:43.489 that through this investment and capital work, 39:43.489 --> 39:46.374 that the next platform is first identified 39:46.374 --> 39:48.271 by a group of Chinese investors, 39:48.271 --> 39:50.569 and maybe first manufactured in China 39:50.569 --> 39:53.805 and maybe first to win market acceptance. 39:53.805 --> 39:56.238 The magnitude of that impact will be like 39:56.238 --> 39:58.905 the next IBM PC is kind of first 39:59.878 --> 40:03.628 going to market in China, invested by Chinese 40:04.693 --> 40:07.393 and becomes successful as a worldwide platform, 40:07.393 --> 40:10.517 just like you have been successful with Didi. 40:10.517 --> 40:14.558 This kind of opportunities through the free flow capital, 40:14.558 --> 40:16.808 so today even though we say 40:18.253 --> 40:21.160 China is deviating from investment-driven economy, 40:21.160 --> 40:22.606 I don't actually quite agree. 40:22.606 --> 40:25.613 It's driving away from investment into 40:25.613 --> 40:27.047 kind of natural resources, 40:27.047 --> 40:30.417 but more investment into human resources. 40:30.417 --> 40:32.917 That's kind of the opportunity 40:33.192 --> 40:35.898 that's present here is tremendous. 40:35.898 --> 40:37.754 I also agree, the other areas, 40:37.754 --> 40:40.040 artificial intelligence and machine learning. 40:40.040 --> 40:41.856 A lot of people are scared by the fact that 40:41.856 --> 40:45.166 they may be replacing a lot of human jobs. 40:45.166 --> 40:47.499 I actually (mumbles) to the country 40:47.499 --> 40:50.195 that they will be supplementing human intelligence 40:50.195 --> 40:53.244 and man and machine will be living in symbiosis. 40:53.244 --> 40:55.689 In the world of AI and machine learning 40:55.689 --> 40:58.823 what is most important are actually algorithms 40:58.823 --> 41:01.168 and deep knowledge of mathematics. 41:01.168 --> 41:04.362 Actually, Chinese are very well-educated in mathematics. 41:04.362 --> 41:07.060 We all remember when we're in high school 41:07.060 --> 41:10.504 or elementary school how many math problems we had to have 41:10.504 --> 41:12.231 and math problem we had to deal with. 41:12.231 --> 41:14.627 But that becomes very, very important 41:14.627 --> 41:17.294 as we design the next generation 41:17.361 --> 41:20.221 artificial intelligence and machine learning algorithms. 41:20.221 --> 41:23.276 This is a field China can do very, very well 41:23.276 --> 41:26.168 but also through these constant interactions 41:26.168 --> 41:28.613 and to thinking about new ways. 41:28.613 --> 41:30.261 I also agree with Deng Feng 41:30.261 --> 41:33.261 that genomics and precision medicine 41:34.639 --> 41:36.318 is a very important field. 41:36.318 --> 41:39.377 Overall, as consumer upgrades themselves, 41:39.377 --> 41:42.448 education and health are becoming very important factors 41:42.448 --> 41:45.329 but we now have the wonderful world of genomics, 41:45.329 --> 41:49.159 which gives a very precise view of the human body 41:49.159 --> 41:50.826 and human evolution. 41:52.259 --> 41:54.353 But also to make an analogy 41:54.353 --> 41:57.103 that we, the human genome project 41:57.750 --> 42:00.331 was able to read the entire human genome, 42:00.331 --> 42:02.209 basically the blueprint. 42:02.209 --> 42:04.751 But this is almost like reading the machine code 42:04.751 --> 42:06.420 off a Windows operating system. 42:06.420 --> 42:08.839 You identify all the zero and one bits 42:08.839 --> 42:11.363 like the ACGTs of the genetic codes, 42:11.363 --> 42:14.044 but we don't quite have the source doe yet. 42:14.044 --> 42:16.173 There could be a tremendous effort 42:16.173 --> 42:19.207 in going from the binary code of the human genome 42:19.207 --> 42:22.787 by understanding through a field called epigenomics, 42:22.787 --> 42:24.733 the underlying functionality 42:24.733 --> 42:26.265 and therefore the source code. 42:26.265 --> 42:27.716 And once we have that, 42:27.716 --> 42:30.745 we basically literally have the human movement. 42:30.745 --> 42:33.135 And the kind of thing where we'll be able to do 42:33.135 --> 42:35.105 in medicine will be tremendous. 42:35.105 --> 42:37.553 And that is also an opportunity in China 42:37.553 --> 42:40.171 because the sheer mass of people 42:40.171 --> 42:42.419 and the number of hospitals, 42:42.419 --> 42:46.215 and being able to organize this instead of data 42:46.215 --> 42:49.465 in correlating genomics with phenotypes 42:49.782 --> 42:51.313 and medical records. 42:51.313 --> 42:54.259 That would be a tremendous opportunity. 42:54.259 --> 42:55.842 - Great. Thank you. 42:56.025 --> 42:58.810 Actually I think when you are speaking Professor Zhang, 42:58.810 --> 43:02.330 that reminds me of recent very strong policy emphasis 43:02.330 --> 43:05.163 by the president in China, Mr. Xi, 43:05.285 --> 43:06.879 on supply side reforms. 43:06.879 --> 43:08.351 A lot of what you suggested 43:08.351 --> 43:09.792 were happening on the supply side 43:09.792 --> 43:12.428 but if you think about the differences 43:12.428 --> 43:15.949 between the US and also China on the supply side, 43:15.949 --> 43:19.449 by appearance in terms of human resources, 43:19.501 --> 43:22.687 country, people in both countries are extremely talented. 43:22.687 --> 43:25.377 We've got a very large population pool there 43:25.377 --> 43:27.137 and very good education. 43:27.137 --> 43:28.562 And then think about the capital. 43:28.562 --> 43:30.682 Both are having a lot of capital. 43:30.682 --> 43:33.907 One is endowed with the dollar standards 43:33.907 --> 43:37.824 so clearly that there is less credit constraint 43:38.132 --> 43:39.298 in this country, 43:39.298 --> 43:42.294 while in China, there's also the saving surplus. 43:42.294 --> 43:44.287 And then lastly, then if you think about 43:44.287 --> 43:47.454 the human factor and also the capital, 43:49.088 --> 43:50.889 I think there is also this technology 43:50.889 --> 43:53.705 that both sides, we do have a share, 43:53.705 --> 43:55.862 we do share and also we have 43:55.862 --> 43:59.233 in both sides of the pacific very large market. 43:59.233 --> 44:01.504 We use that technology to apply it 44:01.504 --> 44:03.896 but I don't think this is the essence 44:03.896 --> 44:07.890 of the supply side changes that people were discussing. 44:07.890 --> 44:10.249 Where in other words, it's really the ecosystem 44:10.249 --> 44:11.999 that combines all of that 44:11.999 --> 44:14.552 to make it more favorable as an environment 44:14.552 --> 44:18.552 to promote innovation and also entrepreneurship. 44:18.824 --> 44:21.896 I guess my last question before I open up to the, 44:21.896 --> 44:25.383 open up the floor to Q and A is for Mr. Deng. 44:25.383 --> 44:27.253 How do you see the comparison 44:27.253 --> 44:30.158 between the ecosystem of that in the US 44:30.158 --> 44:31.575 and versus China? 44:34.564 --> 44:37.865 - Actually I have to say that, you know, 44:37.865 --> 44:39.360 as compared to China itself, 44:39.360 --> 44:43.527 compare today with 10 years ago when I just went back, 44:43.782 --> 44:45.587 it has come a long way in building up 44:45.587 --> 44:48.170 the whole innovation ecosystem. 44:48.360 --> 44:50.518 And they all compared today's China 44:50.518 --> 44:51.851 with today's US. 44:52.488 --> 44:54.277 When I say it comes a long way, 44:54.277 --> 44:57.827 it has made huge progress in several things. 44:57.827 --> 44:58.660 Talents. 44:59.057 --> 45:01.234 We now got a lot of returnees 45:01.234 --> 45:03.734 but not only that, we have had 45:03.858 --> 45:06.177 several sort of the first tier, 45:06.177 --> 45:10.076 first wave on Chinese internet companies like BAT. 45:10.076 --> 45:12.276 Now today you see a lot of entrepreneurs 45:12.276 --> 45:14.563 actually came from those companies 45:14.563 --> 45:17.847 and sometimes came from like Google, Microsoft, 45:17.847 --> 45:19.602 their China research center. 45:19.602 --> 45:22.352 These are the people that gave us 45:22.533 --> 45:24.374 next generation of entrepreneurs. 45:24.374 --> 45:25.874 Also, some sort of 45:29.329 --> 45:31.202 engineers today, we have engineer, 45:31.202 --> 45:34.729 we used to have engineer but we didn't have 45:34.729 --> 45:36.306 like product manager. 45:36.306 --> 45:37.699 When I just went back to China, 45:37.699 --> 45:39.282 I never heard of... 45:39.294 --> 45:41.229 They don't know what is a product manager. 45:41.229 --> 45:43.420 They know what is R&D and what is the sales 45:43.420 --> 45:44.906 but they don't know what is product manager 45:44.906 --> 45:47.211 and it's so hard to find a CFO 45:47.211 --> 45:50.061 but today you look at, talk to these people, 45:50.061 --> 45:51.883 they know what a CFO, what is a controller 45:51.883 --> 45:53.985 and how to deal with investors, 45:53.985 --> 45:56.514 and they know what is the term sheet. 45:56.514 --> 45:58.854 You can see many, many people have 45:58.854 --> 46:00.677 already gained this knowledge 46:00.677 --> 46:03.130 and how to do a small startup, 46:03.130 --> 46:05.109 so that the entrepreneur will be 46:05.109 --> 46:07.776 and I think it's so glad to see, 46:07.824 --> 46:10.227 I'm so glad to see those changes. 46:10.227 --> 46:14.060 Also on the culture or I will say the society, 46:15.094 --> 46:18.581 how they embrace the entrepreneurship has changed a lot. 46:18.581 --> 46:21.676 It used to be like when they graduate from college 46:21.676 --> 46:25.152 they want to find a job in a government agencies 46:25.152 --> 46:27.320 or go to a state-owned enterprise, right? 46:27.320 --> 46:31.169 But these years, people are so much like startups 46:31.169 --> 46:33.586 and the parents of those kids 46:33.681 --> 46:35.506 want them to join a startup 46:35.506 --> 46:37.687 much more than 10 year ago. 46:37.687 --> 46:38.892 - Even at investment banks, 46:38.892 --> 46:42.867 we sometimes have trouble basically hiring talents 46:42.867 --> 46:44.674 because they want to go to startups. 46:44.674 --> 46:45.507 - I know. 46:45.720 --> 46:48.100 That's a right trend by the way. (laughs) 46:48.100 --> 46:50.767 - It's probably the right trend. 46:52.006 --> 46:54.710 - The difference is that now I compare US and China, 46:54.710 --> 46:58.460 I can see the differences are several things. 46:59.020 --> 47:01.542 I have to say that, I don't know whether it's good or bad 47:01.542 --> 47:04.402 but the governments play a very different role 47:04.402 --> 47:07.485 in US innovation system and in China. 47:08.600 --> 47:12.096 Chinese government are much more involved. 47:12.096 --> 47:13.987 Sometimes it's not so good. 47:13.987 --> 47:15.136 (laughs) 47:15.136 --> 47:17.149 I will say specifically when 47:17.149 --> 47:19.027 they will actually also decide 47:19.027 --> 47:21.208 which company they want to support, 47:21.208 --> 47:24.210 they want to back (mumbles), right? 47:24.210 --> 47:27.187 That's definitely, I wouldn't see this in Silicon Valley. 47:27.187 --> 47:29.701 But the Chinese government are smart. 47:29.701 --> 47:31.966 They learn and they learn very fast. 47:31.966 --> 47:35.077 I can see the changes from the rapid backing up 47:35.077 --> 47:37.384 a company, a startup company, 47:37.384 --> 47:40.998 sometimes now going to work with the private sectors 47:40.998 --> 47:43.581 like the VC firms to help them. 47:44.113 --> 47:46.723 And once they see that we invest in the company, 47:46.723 --> 47:49.041 they say okay, these are professional investors. 47:49.041 --> 47:50.416 They must know this company is good 47:50.416 --> 47:52.869 so we'll okay, add some money into it. 47:52.869 --> 47:54.952 That change is happening. 47:55.742 --> 47:58.909 In terms of building up the ecosystem, 47:58.984 --> 48:02.865 you see the premier, Chinese Premier Li Keqiang 48:02.865 --> 48:05.737 announce this mass entrepreneurships 48:05.737 --> 48:06.741 beginning of last year. 48:06.741 --> 48:09.919 You can see lots of the central government agencies 48:09.919 --> 48:12.018 or as well as the local government agencies 48:12.018 --> 48:15.139 they sort of do a lot of things in terms of 48:15.139 --> 48:18.400 tax and others seem to help in starting companies. 48:18.400 --> 48:21.983 That in my perspective is a politics thing. 48:22.140 --> 48:25.106 To help Chinese transforming the economy 48:25.106 --> 48:26.760 from the manufacturing-based 48:26.760 --> 48:28.851 to the innovation-based economy. 48:28.851 --> 48:30.545 I truly believe that's a thing 48:30.545 --> 48:33.750 but going forward, once you get this ecosystem there 48:33.750 --> 48:36.285 they should, I think they are all smart enough 48:36.285 --> 48:40.368 to back from this, driving this entrepreneurship. 48:41.299 --> 48:43.966 In terms of whether Chinese can, 48:44.716 --> 48:47.364 like Zhongguancun can catch up with Silicon Valley 48:47.364 --> 48:49.531 or succeed Silicon Valley, 48:49.584 --> 48:51.750 honestly being there for 10 years 48:51.750 --> 48:54.699 and actually, also actually I was born in 48:54.699 --> 48:57.489 and also educated in China in Beijing 48:57.489 --> 48:59.544 in Zhongguancun area specifically, 48:59.544 --> 49:00.850 and also Silicon Valley 49:00.850 --> 49:01.807 for so many years. - [Helen] That's make the 49:01.807 --> 49:02.697 three of us. 49:02.697 --> 49:05.114 - Three of us actually, yeah. 49:05.876 --> 49:08.050 I didn't get into Stanford but my son. 49:08.050 --> 49:10.041 - Honorary professor (mumbles). 49:10.041 --> 49:11.549 - Yeah. You're right. 49:11.549 --> 49:13.475 - [Helen] 3.5 altogether. - [Feng] 3.5, yeah. 49:13.475 --> 49:15.975 But what I can see is actually 49:17.316 --> 49:19.178 it's gonna take a long time for China 49:19.178 --> 49:22.928 to really catch up or succeed Silicon Valley. 49:24.941 --> 49:25.812 Two main reasons. 49:25.812 --> 49:28.168 One is the education system in China 49:28.168 --> 49:30.096 really, really lags behind 49:30.096 --> 49:34.263 in terms of how to teach people to innovate, right? 49:37.113 --> 49:38.780 And how to get this, 49:39.744 --> 49:41.951 the whole system has to change to get there. 49:41.951 --> 49:44.082 It's gonna be not like one year, two years, 49:44.082 --> 49:45.842 it takes years to get there. 49:45.842 --> 49:49.509 The second one is, Silicon Valley is so good 49:50.657 --> 49:52.767 to attract the raw talent, 49:52.767 --> 49:56.934 not just with the university with the environment here. 49:57.500 --> 50:00.750 You have people from China, from India, 50:00.791 --> 50:04.647 from maybe East (mumbles) or everywhere from the world. 50:04.647 --> 50:08.814 But in China today, they can attract some returnees like us 50:09.599 --> 50:13.028 but I don't think it's there to attract worth having that. 50:13.028 --> 50:13.996 Without these two things 50:13.996 --> 50:16.656 I think it's hard for China to really catch up 50:16.656 --> 50:20.477 to Silicon Valley in terms of the original innovation. 50:20.477 --> 50:22.060 - Great. Thank you. 50:22.457 --> 50:24.552 Now we open the floor up for questions. 50:24.552 --> 50:26.073 I see the first question coming from 50:26.073 --> 50:27.891 this gentlemen in the fourth row please. 50:27.891 --> 50:28.724 Thank you. 50:28.941 --> 50:31.127 Please wait until you get the microphone. 50:31.127 --> 50:32.460 - There's a mic. 50:38.258 --> 50:39.331 - [Voiceover] I was in China recently 50:39.331 --> 50:42.106 and there was all these cool companies that I saw there 50:42.106 --> 50:43.856 specially in Beijing, 50:43.935 --> 50:46.595 and many of them are like China-focused companies. 50:46.595 --> 50:49.237 Is there a reason that they don't expand 50:49.237 --> 50:51.862 into other parts of Southeast Asia or maybe India 50:51.862 --> 50:54.695 and they just only focus on China? 50:54.752 --> 50:56.975 - Is your question specifically designated 50:56.975 --> 50:59.093 to any of our panelists? - [Voiceover] Jean. 50:59.093 --> 51:00.658 - [Helen] Okay. Jean then please? 51:00.658 --> 51:01.972 - Yeah, I think, 51:01.972 --> 51:05.427 actually I think that situation's changing already. 51:05.427 --> 51:07.724 You actually see more and more Chinese companies 51:07.724 --> 51:09.057 coming overseas. 51:09.315 --> 51:11.426 I can give you many examples. 51:11.426 --> 51:13.913 Tencent, Alibaba and including us. 51:13.913 --> 51:16.138 We are coming overseas as well. 51:16.138 --> 51:18.413 But just, I understand the perception. 51:18.413 --> 51:21.996 I think there's a very simple reason behind 51:22.412 --> 51:25.495 which is China is just simply so big. 51:25.520 --> 51:28.613 Each province is in terms of population 51:28.613 --> 51:32.446 is almost like a country in the Western world. 51:32.761 --> 51:35.781 For us for an industry player like us, 51:35.781 --> 51:37.448 I think our mission, 51:37.643 --> 51:40.560 the number one is how we can really 51:41.311 --> 51:44.240 drive our product and service to the best, 51:44.240 --> 51:47.946 to excellence level to serve Chinese people, right? 51:47.946 --> 51:51.800 And now what we're doing in terms of expanding worldwide is 51:51.800 --> 51:54.967 we are doing product level corporation 51:55.275 --> 51:57.894 and we are also doing investment. 51:57.894 --> 52:02.061 Here if anyone, if you have Didi app on your cellphone 52:02.389 --> 52:06.256 you can open it and you can get a lift service, 52:06.256 --> 52:08.888 and you don't even need to read English 52:08.888 --> 52:10.721 or understand English. 52:11.178 --> 52:14.024 You can completely use Chinese to do that. 52:14.024 --> 52:17.527 That's the product level expansion we're doing 52:17.527 --> 52:19.694 and the service will cover 52:20.133 --> 52:22.800 Southeast Asia, India very soon. 52:23.370 --> 52:27.000 Very soon we'll cover half of the population worldwide. 52:27.000 --> 52:29.058 That's the steps we are taking 52:29.058 --> 52:31.328 and I think it's extremely encouraging 52:31.328 --> 52:33.110 to see it's well-received worldwide 52:33.110 --> 52:35.868 because there are so many Chinese going overseas. 52:35.868 --> 52:37.372 - Actually I want to add one point 52:37.372 --> 52:39.200 on top of that. - [Jean] Yeah. 52:39.200 --> 52:41.206 - [Feng] Some Chinese startups today, 52:41.206 --> 52:43.824 when they start to address the global market 52:43.824 --> 52:46.537 rather than starting with the domestic market, 52:46.537 --> 52:47.827 even in the internet sector 52:47.827 --> 52:51.172 when people say hey, this is sort of a local service, right? 52:51.172 --> 52:53.443 So Chinese players can do well in China 52:53.443 --> 52:55.159 but not outside of China. 52:55.159 --> 52:57.750 For example, Cheetah Mobile is a company 52:57.750 --> 53:00.540 and they actually have huge success 53:00.540 --> 53:01.574 and they're a public company. 53:01.574 --> 53:04.163 One of our startups it's called APAS Software. 53:04.163 --> 53:05.367 You probably have heard of it. 53:05.367 --> 53:08.450 It started with a launcher on mobile, 53:09.278 --> 53:11.352 Android-based on mobile smartphone. 53:11.352 --> 53:13.807 But now it's actually getting a product array 53:13.807 --> 53:15.640 and they start with... 53:15.904 --> 53:19.746 99% of their customers are outside of China 53:19.746 --> 53:22.096 so that's another way to see. 53:22.096 --> 53:24.309 - Yes. Next question please. 53:24.309 --> 53:25.142 - [Voiceover] Hey. 53:25.142 --> 53:26.674 I'm Aries from Bangladesh. 53:26.674 --> 53:30.291 Before coming to this summit I was in China for a day 53:30.291 --> 53:31.958 and what I observed, 53:33.933 --> 53:37.072 China is kind of like closed from other countries 53:37.072 --> 53:38.134 especially (mumbles) 53:38.134 --> 53:41.244 so I didn't knew much of like Chinese lifestyle 53:41.244 --> 53:45.304 or how China people behaved before being to China. 53:45.304 --> 53:47.424 What I saw that it's very much similar 53:47.424 --> 53:50.094 to like what we have in Bangladesh 53:50.094 --> 53:52.499 but as the mutual collaboration 53:52.499 --> 53:54.749 is not that much happening. 53:54.918 --> 53:57.242 For example, it takes the Asia, 53:57.242 --> 53:59.020 China, India, Bangladesh, 53:59.020 --> 54:01.559 we have the world's largest population 54:01.559 --> 54:03.642 in Asia right now, right? 54:04.673 --> 54:07.841 I don't know if what should be the possible ways 54:07.841 --> 54:09.502 specially to collaborate more 54:09.502 --> 54:11.499 from like South Asian countries 54:11.499 --> 54:13.215 or Asian countries with China 54:13.215 --> 54:16.364 because you have some amazing like innovation happening. 54:16.364 --> 54:19.864 Alibaba, Didi and so many other companies. 54:20.142 --> 54:22.335 What could be the way to actually like 54:22.335 --> 54:24.587 build more collaboration and 54:24.587 --> 54:27.298 maybe in terms of like resources as well, 54:27.298 --> 54:29.130 not only for funding but also for 54:29.130 --> 54:33.147 resources and how can we build up more businesses 54:33.147 --> 54:34.980 together or something? 54:36.795 --> 54:37.779 - [Helen] Professor Zhang? - [Shoucheng] I think 54:37.779 --> 54:38.779 a conference like that 54:38.779 --> 54:40.721 is already a very, very good start 54:40.721 --> 54:44.153 so we can certainly imagine a regional version of it 54:44.153 --> 54:48.153 that kind of a Pan-Asia entrepreneurship summit. 54:49.756 --> 54:50.589 Yeah. 54:51.477 --> 54:53.072 - The other thing is probably 54:53.072 --> 54:55.765 I think why China has been doing well 54:55.765 --> 54:59.810 is we have lots of Chinese student came to the States 54:59.810 --> 55:01.249 and then went back, right? 55:01.249 --> 55:04.472 If we have a lot of students from Southeast Asia 55:04.472 --> 55:06.972 or other countries go to China 55:07.030 --> 55:10.561 and then go back and actually will take money, 55:10.561 --> 55:12.568 take everything, the resources back to 55:12.568 --> 55:13.919 your home country. - [Shoucheng] And also give me 55:13.919 --> 55:16.535 the idea that particularly for example, 55:16.535 --> 55:18.312 all international students come to 55:18.312 --> 55:20.007 universities like Stanford. 55:20.007 --> 55:21.868 Here you can form friendship, right? 55:21.868 --> 55:24.881 A student from Bangladesh and a student from China. 55:24.881 --> 55:26.177 You live in the same dorm, 55:26.177 --> 55:27.604 you go to the same lectures 55:27.604 --> 55:30.051 and these bonds that you form during the time 55:30.051 --> 55:33.090 when you are student is very, very strong 55:33.090 --> 55:35.519 that afterwards when you return, 55:35.519 --> 55:36.667 someone returning to China, 55:36.667 --> 55:38.539 someone returning to Bangladesh 55:38.539 --> 55:42.028 they will be naturally utilizing this bond 55:42.028 --> 55:44.179 to develop new business ideas. 55:44.179 --> 55:46.766 And that's why education or institutions 55:46.766 --> 55:50.052 being internationally diverse is so important. 55:50.052 --> 55:51.935 - [Voiceover] Right, but that's a long term solution. 55:51.935 --> 55:55.241 I can't send like thousand of people to China tomorrow. 55:55.241 --> 55:57.756 What can be the quick solutions 55:57.756 --> 55:59.961 or maybe that we can do in a year or six months? 55:59.961 --> 56:01.598 - Get to know some Chinese VCs. 56:01.598 --> 56:03.614 (laughs) 56:03.614 --> 56:05.028 - That's a very useful tip. 56:05.028 --> 56:05.983 Thank you very much. - [Voiceover] Awesome. 56:05.983 --> 56:08.059 Thank you. - [Helen] Thank you. 56:08.059 --> 56:10.496 - [Voiceover] Hi, I'm the person that Jean referred to 56:10.496 --> 56:13.163 that had a drink, need a driver. 56:13.494 --> 56:15.046 (laughs) 56:15.046 --> 56:16.589 Actually, talking about driving. 56:16.589 --> 56:18.743 When I drive in Silicon Valley 56:18.743 --> 56:22.502 I'm not used to when I hit the stop sign I have to stop 56:22.502 --> 56:24.419 and look around and go. 56:26.201 --> 56:28.868 I would like to ask to the panel 56:29.667 --> 56:32.378 what would you give to to stop people 56:32.378 --> 56:34.911 or the entrepreneur a stop sign, 56:34.911 --> 56:37.648 they need to stop and see and move on. 56:37.648 --> 56:38.836 Because what you're talking about 56:38.836 --> 56:42.531 is so much phenomenal and you can do this and that 56:42.531 --> 56:44.594 and there's so much ideas there. 56:44.594 --> 56:46.141 But eliminate some ideas 56:46.141 --> 56:48.495 and focusing on one is more important, 56:48.495 --> 56:50.495 that's what I believe in. 56:50.495 --> 56:52.307 What kind of stop sign you can put in 56:52.307 --> 56:54.890 to stop people, the CEOs might, 56:55.172 --> 56:57.695 hey, you should wait and stop then go. 56:57.695 --> 56:58.528 Thank you. 56:58.846 --> 57:00.013 - One of them. 57:00.752 --> 57:01.958 - Yeah, maybe you. 57:01.958 --> 57:02.791 - Okay. 57:03.234 --> 57:04.755 I'll give it a shot. - [Voiceover] Yeah. 57:04.755 --> 57:06.907 - [Jean] I don't know what's the specific stop sign 57:06.907 --> 57:09.800 but we have been through a certain stage that 57:09.800 --> 57:13.967 there are just simply so many things that we can do. 57:14.148 --> 57:17.815 We are in this industry that has a very long 57:18.672 --> 57:22.255 industry chain and a huge ecosystem, right? 57:23.317 --> 57:26.984 If we want to do we can enter into logistic, 57:27.120 --> 57:29.787 we can enter into advertisement, 57:30.158 --> 57:32.239 we can even enter into gaming. 57:32.239 --> 57:34.040 There are a lot of gaming company come to us 57:34.040 --> 57:36.234 and say, "Why don't you encourage people to 57:36.234 --> 57:39.493 "play video games when they are taking a ride." 57:39.493 --> 57:42.424 There are a lot of very tempting ideas 57:42.424 --> 57:44.165 like both panelists were saying, 57:44.165 --> 57:46.709 there's so many interesting opportunities in China. 57:46.709 --> 57:49.792 And so we have had a few very serious 57:50.138 --> 57:54.233 closed door meetings with the top five management team, 57:54.233 --> 57:55.731 and sit down and talk about 57:55.731 --> 57:58.400 what do we really want to achieve here. 57:58.400 --> 58:00.457 And at the end of the day 58:00.457 --> 58:02.603 we need to focus what's our target 58:02.603 --> 58:04.250 and then what's the market. 58:04.250 --> 58:07.887 If the market we have already now is so big, 58:07.887 --> 58:09.969 the one we're in that we should just 58:09.969 --> 58:11.533 keep investing in this, 58:11.533 --> 58:14.783 and also providing the best of service. 58:15.269 --> 58:18.019 If we get distracted we have some 58:19.282 --> 58:21.462 strategic choices before which 58:21.462 --> 58:23.317 not turns out to be really, really good 58:23.317 --> 58:24.650 so we pull back. 58:25.017 --> 58:26.401 All right, so I think it takes 58:26.401 --> 58:29.505 the management team together to really sit down 58:29.505 --> 58:33.255 and face the reality with the situation here. 58:33.777 --> 58:36.277 That's my personal experience. 58:36.449 --> 58:37.642 - [Voiceover] Thank you. 58:37.642 --> 58:40.642 - For me actually, I would say that, 58:40.879 --> 58:42.686 let me answer in a different way. 58:42.686 --> 58:44.893 Speed is very, very important 58:44.893 --> 58:46.688 for the success of a startup company 58:46.688 --> 58:48.174 in my own experience and also 58:48.174 --> 58:51.257 from the companies I invested, right. 58:51.577 --> 58:52.957 I mean, high speed. 58:52.957 --> 58:56.516 We use the slogan that today's world has changed. 58:56.516 --> 58:59.524 It's not big fish eat the small fish. 58:59.524 --> 59:02.524 It's fast fish eat slow fish, right? 59:04.216 --> 59:05.549 We use a slogan. 59:08.208 --> 59:11.458 You should try to develop your business 59:12.101 --> 59:14.536 or customer base, sometimes revenue, 59:14.536 --> 59:15.850 depends on what, right? 59:15.850 --> 59:18.530 As fast as, as quickly as possible 59:18.530 --> 59:21.332 but definitely there are stop signs. 59:21.332 --> 59:23.202 Having said that, the stop sign could be like 59:23.202 --> 59:25.439 whether you stretch yourself too thin 59:25.439 --> 59:27.800 in terms of for example not necessarily in money, 59:27.800 --> 59:30.740 funding because you may be able to raise more funding. 59:30.740 --> 59:33.990 The talent, you can recruit and retain. 59:34.136 --> 59:37.194 If you don't have enough talent within your company 59:37.194 --> 59:38.629 and that it tells you that okay, 59:38.629 --> 59:40.629 you are moving too fast. 59:40.687 --> 59:44.437 I use the analogy like if you have a machine, 59:45.291 --> 59:48.624 you have several different gears, right? 59:48.731 --> 59:50.499 Of course sometimes it also have to be 59:50.499 --> 59:51.814 synchronized very well 59:51.814 --> 59:54.663 but I think if I have my department 59:54.663 --> 59:56.310 I need an indicator to tell me 59:56.310 --> 59:59.643 whether I move too fast or not too fast. 59:59.706 --> 01:00:03.213 If one department is out of sync like lags behind, 01:00:03.213 --> 01:00:05.546 not might be the best speed. 01:00:05.701 --> 01:00:08.201 If like most of the department 01:00:08.413 --> 01:00:11.455 having this problem and then you move too slow. 01:00:11.455 --> 01:00:14.622 If everything is synchronized so well, 01:00:14.897 --> 01:00:17.314 maybe you're not fast enough, 01:00:18.512 --> 01:00:19.962 that's probably another stop sign. 01:00:19.962 --> 01:00:22.545 You can tell this is practical, 01:00:22.754 --> 01:00:23.587 how do I try? 01:00:23.587 --> 01:00:25.172 - [Voiceover] Yeah, thank you. 01:00:25.172 --> 01:00:26.172 - Thank you. 01:00:26.455 --> 01:00:27.808 Professor Zhang? - [Shoucheng] Yeah, I think 01:00:27.808 --> 01:00:29.954 the advice I'll also give to entrepreneurs 01:00:29.954 --> 01:00:31.507 and actually it's the same advice 01:00:31.507 --> 01:00:33.590 I give to my own students 01:00:33.836 --> 01:00:36.396 is to balance strategy with tactics, 01:00:36.396 --> 01:00:38.713 and balance vision with execution. 01:00:38.713 --> 01:00:40.793 I think for something like a startup, 01:00:40.793 --> 01:00:43.280 most of the time you need to be pretty focused 01:00:43.280 --> 01:00:44.685 and run very fast. 01:00:44.685 --> 01:00:47.170 But oftentimes you need to take a step back 01:00:47.170 --> 01:00:49.984 and to think about the overall strategy, 01:00:49.984 --> 01:00:52.376 and sometimes you have to go a little bit 01:00:52.376 --> 01:00:54.766 outside of your own domain of knowledge 01:00:54.766 --> 01:00:56.599 to be interacting with someone 01:00:56.599 --> 01:00:59.204 who has a completely different background, 01:00:59.204 --> 01:01:00.914 completely different perspective 01:01:00.914 --> 01:01:02.765 of how to look at things. 01:01:02.765 --> 01:01:05.972 And that balance is usually very important, 01:01:05.972 --> 01:01:08.972 I think doing one but not the other, 01:01:09.270 --> 01:01:12.853 I think doing both with a proper proportion 01:01:13.054 --> 01:01:15.205 is really the right approach. 01:01:15.205 --> 01:01:18.151 Otherwise, you could be missing a huge opportunity 01:01:18.151 --> 01:01:21.068 if you don't stop in your own words 01:01:21.245 --> 01:01:23.720 and think about the bigger picture. 01:01:23.720 --> 01:01:24.864 - [Voiceover] All right, thank you. 01:01:24.864 --> 01:01:27.557 I think Helen won't give me the stop sign in the clock. 01:01:27.557 --> 01:01:28.466 (laughs) 01:01:28.466 --> 01:01:30.056 - Before I pass on to the next question, 01:01:30.056 --> 01:01:31.996 let me put a stop sign behind 01:01:31.996 --> 01:01:34.031 the lady in the white dress. 01:01:34.031 --> 01:01:35.556 Given the time limit, 01:01:35.556 --> 01:01:38.930 you will be the last person to ask the last question. 01:01:38.930 --> 01:01:40.484 Feel free, the three of you, 01:01:40.484 --> 01:01:42.016 you can take a seat nearby 01:01:42.016 --> 01:01:42.928 and we'll start with this gentleman. 01:01:42.928 --> 01:01:43.761 - [Voiceover] Thank you so much. 01:01:43.761 --> 01:01:46.594 I'm very lucky to make a question. 01:01:47.620 --> 01:01:50.815 Thank you for the interesting panel discussion. 01:01:50.815 --> 01:01:53.477 My name is Aziza Bakira, I'm from Kyrgyz Republic. 01:01:53.477 --> 01:01:56.394 It's the Western neighbor to China. 01:01:57.111 --> 01:01:59.111 We are on the Silk Road. 01:02:02.159 --> 01:02:05.271 We are Kyrgyz Software Developers Association 01:02:05.271 --> 01:02:08.104 and we create high technology park 01:02:08.695 --> 01:02:11.064 reduce tax regime for outsourcing. 01:02:11.064 --> 01:02:14.875 And some Chinese companies came to our country 01:02:14.875 --> 01:02:18.208 and do business for Russian localization 01:02:18.547 --> 01:02:22.481 and for English using our specialist at (mumbles) 01:02:22.481 --> 01:02:23.765 but not expensive. 01:02:23.765 --> 01:02:25.265 And my question is 01:02:27.549 --> 01:02:29.966 we provide virtual Silk Road. 01:02:31.695 --> 01:02:35.580 We want to be a virtual port on the news of growth, 01:02:35.580 --> 01:02:39.747 what do you think, what's the future of Silk Road? 01:02:44.967 --> 01:02:47.402 - Okay, that seems to be a very good question 01:02:47.402 --> 01:02:50.131 but do you want to designate it to anyone. 01:02:50.131 --> 01:02:51.084 - [Voiceover] All of you. - [Helen] All of you, please. 01:02:51.084 --> 01:02:52.667 - [Voiceover] Yeah. 01:02:53.832 --> 01:02:54.999 Or can we make 01:02:56.955 --> 01:03:00.372 good ecosystem not only for US and China, 01:03:00.735 --> 01:03:02.652 maybe US and Silk Road? 01:03:02.825 --> 01:03:05.825 And I think that when China prosper, 01:03:07.051 --> 01:03:08.884 all Silk Road prosper. 01:03:09.791 --> 01:03:10.791 - Thank you. 01:03:10.877 --> 01:03:12.251 That's a very question on Silk Road. 01:03:12.251 --> 01:03:13.483 - Can you just repeat the question, 01:03:13.483 --> 01:03:14.900 I can understand. 01:03:15.196 --> 01:03:17.219 - How do we see Silk Road? 01:03:17.219 --> 01:03:19.323 - Yes, how do you see and also between, 01:03:19.323 --> 01:03:21.164 not just between China and the US 01:03:21.164 --> 01:03:22.476 but also Silk Road 01:03:22.476 --> 01:03:24.290 and the US. - [Voiceover] President Xi 01:03:24.290 --> 01:03:27.409 declared one (mumbles) and one road 01:03:27.409 --> 01:03:29.896 and what do you think about that? 01:03:29.896 --> 01:03:31.304 - Maybe Mr. Deng first. 01:03:31.304 --> 01:03:33.415 - Yeah, so actually I haven't thought 01:03:33.415 --> 01:03:35.118 too much about this one. 01:03:35.118 --> 01:03:38.576 I think actually it's a government slogan, 01:03:38.576 --> 01:03:40.452 its objective in the future, right? 01:03:40.452 --> 01:03:42.586 But how together, what are the milestones? 01:03:42.586 --> 01:03:44.361 How much that's gonna relate into 01:03:44.361 --> 01:03:47.194 what I'm doing, I couldn't see it. 01:03:47.225 --> 01:03:51.304 What I see is, I don't see there is so much opportunities 01:03:51.304 --> 01:03:53.387 under this slogan for us. 01:03:54.013 --> 01:03:56.115 For example, I have some friends 01:03:56.115 --> 01:03:59.365 try to travel to our Western neighbors. 01:04:00.109 --> 01:04:03.609 I mean, sorry, I don't know which specific 01:04:03.974 --> 01:04:06.459 stems you are but there are so many stems, right, 01:04:06.459 --> 01:04:10.542 different small countries there western to China. 01:04:10.837 --> 01:04:13.510 But it's so hard to travel there. 01:04:13.510 --> 01:04:15.387 If you try to apply a visa, 01:04:15.387 --> 01:04:18.679 sometimes takes a few months to get a visa 01:04:18.679 --> 01:04:21.445 and you need to spend a lot of money. 01:04:21.445 --> 01:04:24.278 I actually think open up in having 01:04:25.360 --> 01:04:28.243 these business travelers or tourists 01:04:28.243 --> 01:04:31.102 which is easily to get access from both sides. 01:04:31.102 --> 01:04:33.906 That's gonna help and then people will understand 01:04:33.906 --> 01:04:36.654 there are a lot of resources in those countries, 01:04:36.654 --> 01:04:38.904 very good natural resources 01:04:38.904 --> 01:04:41.469 and the market is also, this market. 01:04:41.469 --> 01:04:44.765 Maybe just like what China did a few decades ago. 01:04:44.765 --> 01:04:45.805 Open up the market, 01:04:45.805 --> 01:04:47.695 in return get the technology 01:04:47.695 --> 01:04:49.015 and that's how actually I think, 01:04:49.015 --> 01:04:51.406 if I think that's probably what 01:04:51.406 --> 01:04:52.979 the two government can do together. 01:04:52.979 --> 01:04:56.296 And then these private sectors will go in there 01:04:56.296 --> 01:04:57.924 because we see the opportunities there. 01:04:57.924 --> 01:04:59.424 That's what I saw. 01:04:59.662 --> 01:05:01.858 That's what I can see how it's gonna happen. 01:05:01.858 --> 01:05:02.691 - [Voiceover] Thank you. 01:05:02.691 --> 01:05:04.009 Stem countries a lot of resources 01:05:04.009 --> 01:05:06.878 but Kyrgyz Republic is lack of resources. 01:05:06.878 --> 01:05:08.063 No oil and gas. 01:05:08.063 --> 01:05:08.896 - [Feng] Oh, I'm sorry. - [Voiceover] But only 01:05:08.896 --> 01:05:10.834 human resources we have. 01:05:10.834 --> 01:05:12.296 Thank you so much. 01:05:12.296 --> 01:05:14.295 - Thank you. Next question please. 01:05:14.295 --> 01:05:15.366 - [ Voiceover] Okay. Thank you. 01:05:15.366 --> 01:05:18.033 I'll try to be a short question. 01:05:18.461 --> 01:05:20.572 Do you think it's possible to bring 01:05:20.572 --> 01:05:24.655 the Silicon model, Silicon Valley education model 01:05:24.676 --> 01:05:26.480 to the south of China, 01:05:26.480 --> 01:05:28.813 maybe in Shenzhen or Zhuhai? 01:05:30.275 --> 01:05:33.499 Because one of the things we have learned in the summit 01:05:33.499 --> 01:05:36.384 is that we need to work hard in education. 01:05:36.384 --> 01:05:38.852 So China has everything to work hard in educations. 01:05:38.852 --> 01:05:41.129 Do you think we can bring this model, 01:05:41.129 --> 01:05:44.129 maybe to open one researching center 01:05:44.742 --> 01:05:46.909 or some special activities 01:05:47.280 --> 01:05:49.234 maybe one or twice per year? 01:05:49.234 --> 01:05:50.067 That's it. 01:05:50.692 --> 01:05:54.261 - Other than the skyrocketing property prices 01:05:54.261 --> 01:05:55.683 over here in Silicon Valley 01:05:55.683 --> 01:05:57.516 and those in Shenzhen, 01:05:57.730 --> 01:05:59.371 we might have one more common feature 01:05:59.371 --> 01:06:00.217 which is coming back 01:06:00.217 --> 01:06:01.732 to the education. - [Shoucheng] I think actually 01:06:01.732 --> 01:06:03.763 among all different places in China, 01:06:03.763 --> 01:06:05.796 Shenzhen shares a unique feature 01:06:05.796 --> 01:06:08.246 that no other parts of China has. 01:06:08.246 --> 01:06:10.815 Namely it's an immigrant city, right? 01:06:10.815 --> 01:06:12.979 Here, the greatness of Silicon Valley 01:06:12.979 --> 01:06:15.038 and California and US in general 01:06:15.038 --> 01:06:18.392 is because it's a melting pot of all talents. 01:06:18.392 --> 01:06:20.370 Shenzhen actually is a very, 01:06:20.370 --> 01:06:22.630 most very international in the sense that 01:06:22.630 --> 01:06:24.735 being very close to Hong Kong, 01:06:24.735 --> 01:06:27.402 and also it's an immigrant city. 01:06:27.612 --> 01:06:31.054 That there's no one, you will go to Shenzhen very rare. 01:06:31.054 --> 01:06:34.673 You meet someone whose ancestors who are from Shenzhen. 01:06:34.673 --> 01:06:37.823 I say that gives Shenzhen a kind of mentality 01:06:37.823 --> 01:06:40.186 of vitality and trying something new, 01:06:40.186 --> 01:06:43.269 and people don't care about what your 01:06:44.052 --> 01:06:45.719 ancestors have done. 01:06:46.901 --> 01:06:49.646 And also, Shenzhen among different places 01:06:49.646 --> 01:06:52.753 right now still can be very innovative 01:06:52.753 --> 01:06:55.857 having Huawei, Tencent and (mumbles) 01:06:55.857 --> 01:06:58.779 being already international companies 01:06:58.779 --> 01:07:01.125 still lacks a good university. 01:07:01.125 --> 01:07:03.731 They're trying with a new experiment 01:07:03.731 --> 01:07:06.183 called (speaks in foreign language) 01:07:06.183 --> 01:07:08.850 which I just got back from China 01:07:09.428 --> 01:07:11.702 and from Shenzhen talking to the president, 01:07:11.702 --> 01:07:15.533 and also talking to the party chief of Shenzhen. 01:07:15.533 --> 01:07:17.247 They very much like to bring something 01:07:17.247 --> 01:07:20.997 like Stanford's education system to Shenzhen. 01:07:21.165 --> 01:07:24.404 Maybe also not only Stanford as a university, 01:07:24.404 --> 01:07:25.904 but also the near, 01:07:26.142 --> 01:07:28.915 well, we have a neighbor here called SRI, 01:07:28.915 --> 01:07:30.749 Stanford Research Institute 01:07:30.749 --> 01:07:34.332 which does a lot of frontier research work. 01:07:34.388 --> 01:07:35.818 I very much agree with you 01:07:35.818 --> 01:07:38.027 that Shenzhen is a natural place 01:07:38.027 --> 01:07:40.712 for this kind of model to be successful. 01:07:40.712 --> 01:07:42.176 - [Voiceover] Okay. (speaks in foreign language) 01:07:42.176 --> 01:07:44.426 - Thank you. Next question? 01:07:46.949 --> 01:07:48.565 - [Voiceover] First please allow me to say 01:07:48.565 --> 01:07:50.398 this is one of the most exciting moment. 01:07:50.398 --> 01:07:53.148 You see I cannot sit down because 01:07:54.049 --> 01:07:57.857 it's so rare in the States to have people from home 01:07:57.857 --> 01:07:59.517 to be here to speak to us. 01:07:59.517 --> 01:08:00.770 I'm also from China. 01:08:00.770 --> 01:08:02.855 I grew up, born and raised in China 01:08:02.855 --> 01:08:06.519 and this is my sixth year in the States for education. 01:08:06.519 --> 01:08:07.401 Very quick question. 01:08:07.401 --> 01:08:08.582 I don't want to make it long 01:08:08.582 --> 01:08:10.292 and I do not want to take too much of your time 01:08:10.292 --> 01:08:14.375 but first is, as you mentioned earlier, Mr. Deng, 01:08:14.765 --> 01:08:17.682 education, it takes a lot in China. 01:08:17.851 --> 01:08:18.973 We need to change a lot 01:08:18.973 --> 01:08:20.806 but what can you guys, 01:08:21.724 --> 01:08:23.720 what would you guys suggest as a private sector 01:08:23.720 --> 01:08:25.438 to bring to young children 01:08:25.438 --> 01:08:27.126 other than a university lover, 01:08:27.126 --> 01:08:30.042 like what kind of opportunity would you guys think 01:08:30.042 --> 01:08:32.446 the private sector should provide to 01:08:32.446 --> 01:08:34.227 not just giving the opportunity, 01:08:34.227 --> 01:08:36.518 but develop a thinking that, 01:08:36.518 --> 01:08:39.251 about develop innovation thinking, design thinking 01:08:39.251 --> 01:08:41.261 that actually could help grow 01:08:41.261 --> 01:08:43.919 to passion something like entrepreneur. 01:08:43.919 --> 01:08:46.752 And part two is I grew up in China 01:08:47.186 --> 01:08:50.186 and I'm running a social enterprise, 01:08:50.256 --> 01:08:52.167 micro finance in Mexico City, 01:08:52.167 --> 01:08:55.189 and my ultimate goal is bring it back to China 01:08:55.189 --> 01:08:57.076 to empower more people there. 01:08:57.076 --> 01:08:58.576 And as we can see, 01:08:59.570 --> 01:09:02.279 as the growth of China has been very fast, 01:09:02.279 --> 01:09:04.196 it's been very dynamic, 01:09:04.508 --> 01:09:07.259 there is still presence we leave behind China. 01:09:07.259 --> 01:09:08.842 We still see people 01:09:10.600 --> 01:09:13.787 having hard times, going through hard days. 01:09:13.787 --> 01:09:15.348 As John Kerry has spoke, 01:09:15.348 --> 01:09:17.865 the Secretary of State spoke this morning about 01:09:17.865 --> 01:09:20.198 social enterprise to giving, 01:09:20.717 --> 01:09:24.009 building business more for benefit other than the profit, 01:09:24.009 --> 01:09:25.229 what would you guys, 01:09:25.229 --> 01:09:28.126 what's your opinion on like giving back to the society 01:09:28.126 --> 01:09:30.209 as a successful business? 01:09:30.545 --> 01:09:34.712 Thank you. (speaks in foreign language) 01:09:36.341 --> 01:09:40.091 - Well, let me try to address the first part. 01:09:41.098 --> 01:09:42.365 I would say that heavily involved 01:09:42.365 --> 01:09:43.440 besides the investment 01:09:43.440 --> 01:09:46.523 in how to contribute back to society, 01:09:46.599 --> 01:09:49.766 specifically in this education sector, 01:09:51.015 --> 01:09:55.182 and specifically in Tsinghua where I graduate from. 01:09:56.092 --> 01:09:59.175 There are a number of things that the 01:09:59.912 --> 01:10:03.631 Chinese, universities actually, they realize the problem 01:10:03.631 --> 01:10:06.042 and they try to change something. 01:10:06.042 --> 01:10:09.015 For example, Tsinghua has collaborative effort 01:10:09.015 --> 01:10:09.848 with UDAP. 01:10:11.200 --> 01:10:13.574 They opened up a campus in UDAP, 01:10:13.574 --> 01:10:16.645 try to recruit some of the graduate student together 01:10:16.645 --> 01:10:19.381 and then have this so called GIX, 01:10:19.381 --> 01:10:21.825 global innovation exchange or something. 01:10:21.825 --> 01:10:24.445 And they're working with Berkeley as well. 01:10:24.445 --> 01:10:28.063 But when I said that it's hard to change the problem, 01:10:28.063 --> 01:10:29.809 the biggest problem in China, 01:10:29.809 --> 01:10:33.226 in the education system in my mind is the 01:10:33.247 --> 01:10:35.773 college admission program, right? 01:10:35.773 --> 01:10:37.517 Everyone has to go through the same college 01:10:37.517 --> 01:10:39.644 and have so many high school graduate 01:10:39.644 --> 01:10:41.351 but you have certain, 01:10:41.351 --> 01:10:43.859 a small number of people can get into the college. 01:10:43.859 --> 01:10:45.143 That is the biggest problem 01:10:45.143 --> 01:10:47.099 and it's so hard to change that. 01:10:47.099 --> 01:10:49.609 I don't think we can change that in the near, 01:10:49.609 --> 01:10:51.337 in the next 10 years or something 01:10:51.337 --> 01:10:55.385 because they try to provide a fair chance to everyone. 01:10:55.385 --> 01:10:57.305 I mean, the intention was good 01:10:57.305 --> 01:11:00.839 but it's not necessary provide a fair chance to everyone 01:11:00.839 --> 01:11:02.318 even with this system. 01:11:02.318 --> 01:11:06.235 But there's no better choice they can think of. 01:11:06.541 --> 01:11:09.465 What I think is that open up honestly, 01:11:09.465 --> 01:11:12.485 I suggested a lot of private schools. 01:11:12.485 --> 01:11:15.298 I myself am thinking of opening up 01:11:15.298 --> 01:11:19.215 a private elementary and high school actually in China, 01:11:19.215 --> 01:11:22.632 and also like welcoming the US education, 01:11:24.006 --> 01:11:26.339 institutions to go to China. 01:11:26.497 --> 01:11:29.883 Duke University opened up a campus in Kunshan 01:11:29.883 --> 01:11:31.733 and they can recruit student there, 01:11:31.733 --> 01:11:34.338 and they can basically have the conference there, right? 01:11:34.338 --> 01:11:36.171 Like part of the Duke. 01:11:36.430 --> 01:11:39.182 With the collaboration specifically to 01:11:39.182 --> 01:11:42.765 between the US universities or high schools 01:11:43.807 --> 01:11:45.717 to a counterpart of China, 01:11:45.717 --> 01:11:47.909 I think that's gonna change a lot 01:11:47.909 --> 01:11:50.826 and that's one practical suggestion 01:11:51.736 --> 01:11:53.319 that I can give and I can think of. 01:11:53.319 --> 01:11:55.609 This is the best way to do it and it's happening. 01:11:55.609 --> 01:11:58.740 You can see actually I'm forecasting in the next, 01:11:58.740 --> 01:12:02.624 probably five years you will see more and more like this. 01:12:02.624 --> 01:12:05.115 - I think from a company perspective, 01:12:05.115 --> 01:12:08.493 we should encourage to recruit more and more 01:12:08.493 --> 01:12:10.243 interns from schools. 01:12:10.452 --> 01:12:12.619 I myself, I benefit a lot. 01:12:12.966 --> 01:12:16.026 When I was in high school and through college, 01:12:16.026 --> 01:12:18.359 I did summer job every year. 01:12:18.591 --> 01:12:19.896 I remember my first summer job 01:12:19.896 --> 01:12:21.810 was in McDonald actually in China 01:12:21.810 --> 01:12:23.527 and I actually learned a lot. 01:12:23.527 --> 01:12:26.096 I think it completely opens my world 01:12:26.096 --> 01:12:28.133 and I think that's from the company's perspective. 01:12:28.133 --> 01:12:31.981 In our company we have a lot of intern opportunities 01:12:31.981 --> 01:12:34.968 not just for Chinese students but also for US students, 01:12:34.968 --> 01:12:37.064 especially in the mission learning, 01:12:37.064 --> 01:12:40.414 artificial intelligence and also computer science. 01:12:40.414 --> 01:12:43.164 That's from company's perspective 01:12:43.345 --> 01:12:45.028 how we can encourage. 01:12:45.028 --> 01:12:48.473 And the second point in terms of social benefits, 01:12:48.473 --> 01:12:51.556 for Didi what I can share with you is 01:12:52.247 --> 01:12:55.565 we are actually addressing serious social problems 01:12:55.565 --> 01:12:57.202 especially for China now 01:12:57.202 --> 01:12:58.990 given that they're restructuring. 01:12:58.990 --> 01:13:02.046 There will be big layoff-like problems 01:13:02.046 --> 01:13:05.129 and on our platform we actually have, 01:13:05.405 --> 01:13:08.821 up today we have 14 million registered drivers. 01:13:08.821 --> 01:13:11.653 That means 14 million jobs, right? 01:13:11.653 --> 01:13:13.315 We are working with, 01:13:13.315 --> 01:13:14.371 I give you one example. 01:13:14.371 --> 01:13:17.592 We are working with the steel company based in Wuhan 01:13:17.592 --> 01:13:21.175 and there are 8,000 jobs laid off recently, 01:13:21.986 --> 01:13:24.486 and we gave these 8,000 people 01:13:25.234 --> 01:13:27.409 a chance to be the driver on our platform. 01:13:27.409 --> 01:13:30.521 It actually helped them to bring more income back home. 01:13:30.521 --> 01:13:33.604 I think back to the innovation topic, 01:13:34.434 --> 01:13:36.571 it does not only raise efficiency 01:13:36.571 --> 01:13:39.098 but also helps improve ordinary lives, 01:13:39.098 --> 01:13:41.740 and that's the social benefit we are talking. 01:13:41.740 --> 01:13:43.022 - Great, thank you. 01:13:43.022 --> 01:13:44.102 Given our time limit, 01:13:44.102 --> 01:13:46.439 let's move on to the last question please. 01:13:46.439 --> 01:13:47.637 - [Voiceover] Thank you. 01:13:47.637 --> 01:13:50.757 I'm Mexican and recently I was living in China 01:13:50.757 --> 01:13:54.740 doing research about NGOs and social entrepreneurship. 01:13:54.740 --> 01:13:57.490 And there I had the chance to share many things 01:13:57.490 --> 01:14:00.740 with very talented Chinese young women. 01:14:01.329 --> 01:14:02.888 And many times they told me 01:14:02.888 --> 01:14:05.565 they don't feel they have the same chances 01:14:05.565 --> 01:14:07.898 to create their own business 01:14:07.899 --> 01:14:09.566 because many social, 01:14:10.883 --> 01:14:13.943 they have the fear that maybe they could be, 01:14:13.943 --> 01:14:16.443 not be good, marriage material 01:14:16.512 --> 01:14:18.774 or be rejected for their society 01:14:18.774 --> 01:14:21.857 because there are many empowered men. 01:14:21.888 --> 01:14:25.476 My question is, what is your opinion about this topic 01:14:25.476 --> 01:14:27.822 and what do you think is a good strategy 01:14:27.822 --> 01:14:31.322 to improve the role of young Chinese women 01:14:31.943 --> 01:14:35.303 in the Chinese society and Chinese economy? 01:14:35.303 --> 01:14:36.351 Thank you. - [Helen] Great. 01:14:36.351 --> 01:14:38.672 I'm guessing this question is for Jean 01:14:38.672 --> 01:14:40.582 and I would love to invite Charlie 01:14:40.582 --> 01:14:43.094 to comment too but please start. 01:14:43.094 --> 01:14:43.927 - Yeah. 01:14:43.932 --> 01:14:46.210 Well, I will give my two cents 01:14:46.210 --> 01:14:47.972 and Helen is actually a great example 01:14:47.972 --> 01:14:49.889 to give you more color. 01:14:50.538 --> 01:14:53.374 I think you're talking about a real problem 01:14:53.374 --> 01:14:55.291 in China and worldwide. 01:14:56.003 --> 01:14:58.630 The challenge facing all women professionals 01:14:58.630 --> 01:15:00.130 and women leaders. 01:15:01.401 --> 01:15:04.818 Actually when I was in banking back then, 01:15:05.025 --> 01:15:07.365 actually I joined a panel with Sara Stenberg 01:15:07.365 --> 01:15:08.899 when she came to China 01:15:08.899 --> 01:15:10.857 and this was a huge topic. 01:15:10.857 --> 01:15:13.588 And I remember the audience were all women 01:15:13.588 --> 01:15:15.213 students and professionals. 01:15:15.213 --> 01:15:18.046 They all share the same pressures. 01:15:18.466 --> 01:15:21.407 How do women really establish their position 01:15:21.407 --> 01:15:22.376 in their career 01:15:22.376 --> 01:15:25.224 and how do they plan, how should they think about 01:15:25.224 --> 01:15:27.238 planning family and career, 01:15:27.238 --> 01:15:28.772 how to balance this? 01:15:28.772 --> 01:15:31.737 And there's a very particular interesting 01:15:31.737 --> 01:15:34.403 perception in Chinese culture that 01:15:34.403 --> 01:15:37.587 if you're a woman even if you're in a career, 01:15:37.587 --> 01:15:39.786 you shouldn't act too aggressively. 01:15:39.786 --> 01:15:43.036 You should do everything in a smart way 01:15:43.290 --> 01:15:45.301 and you shouldn't confront with people, 01:15:45.301 --> 01:15:48.045 I see a lot of smiling faces here. 01:15:48.045 --> 01:15:51.128 I think because there's a perception. 01:15:51.601 --> 01:15:54.851 If you are a Chinese woman professional 01:15:55.502 --> 01:15:56.619 to protect yourself, 01:15:56.619 --> 01:15:59.035 the best way is you put your head down, 01:15:59.035 --> 01:16:02.248 you work hard and there's a Chinese saying, 01:16:02.248 --> 01:16:05.071 if you're a goat you will shine anyways. 01:16:05.071 --> 01:16:07.623 Someone will find you, you're good 01:16:07.623 --> 01:16:11.259 but you need to be found, not define yourself. 01:16:11.259 --> 01:16:14.342 That's really a common social issues. 01:16:15.418 --> 01:16:17.501 My personal experience is 01:16:18.629 --> 01:16:20.629 just ignore those noise. 01:16:22.834 --> 01:16:26.309 Define yourself as who you think you should be 01:16:26.309 --> 01:16:28.573 and actually I think the environment 01:16:28.573 --> 01:16:30.379 is more and more encouraging 01:16:30.379 --> 01:16:32.792 especially thanks to internet. 01:16:32.792 --> 01:16:36.494 I think internet really provide the best environment 01:16:36.494 --> 01:16:40.411 for all women, professionals and entrepreneurs. 01:16:40.820 --> 01:16:43.608 In the old days, the social hurdle, 01:16:43.608 --> 01:16:45.506 the perception issue all disappears 01:16:45.506 --> 01:16:48.075 because you are only facing your cellphone 01:16:48.075 --> 01:16:49.158 or a desktop. 01:16:49.670 --> 01:16:53.003 I think this is a very good stage or era 01:16:54.165 --> 01:16:58.109 for all the women if you want to start your own business 01:16:58.109 --> 01:16:59.689 or if you want to step up. 01:16:59.689 --> 01:17:02.259 I think this is the best timing to just grab it. 01:17:02.259 --> 01:17:03.418 - [Voiceover] Thank you. - [Jean] Yeah. 01:17:03.418 --> 01:17:04.251 - [Helen] Great. 01:17:04.251 --> 01:17:05.084 Thank you all. 01:17:05.084 --> 01:17:07.287 I'd like to thank all our panelists today 01:17:07.287 --> 01:17:08.340 for sharing their views 01:17:08.340 --> 01:17:10.137 and thank you for attending. 01:17:10.137 --> 01:17:10.970 Thank you. 01:17:11.100 --> 01:17:11.995 (clapping) 01:17:11.995 --> 01:17:12.957 - [Feng] Thank you. - [Helen] Thank you.