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The Feeling from Chairman’s losing Contact and Running Away

enlarge font  reduce font Release Date:2014-06-24   Source:www.tulaoge.com   Author:Naruis Eileen   Browse Times:876
Author: Naruis Eileen 【An expert lecturer from “Feng hui lu zhuan” Wisdom Lecture Platform】


The Feeling from Chairman’s losing Contact and Running Away

 

Association of Industry and Commerce is modern body of Chamber of Commerce with hundreds years. It is endowed united front of higher political status based on his folk and economy.

Chairman of Association of Industry and Commerce, a respected man who is paying attention to the interests of the whole, should be the model of members and society.

However, this hot June is a ruthless and exposed Jun, when two scandals appear that Tong Cheng chairman and Hai Nan vice chairman of Association of Industry and Commerce respectively lose contact and run away. When study the reasons, we find it is because of illegal fund-raising, illegal deposit-taking and dishonesty with civilians. Two similar cases cause

Heated spread. Heated debate and expectation on the Internet. And also Committees, United Front Department and Association of Industry and Commerce at all levels should pay high attention to it.

What do they pay attention to?

The first point is about admittance of private entrepreneurs holding the post of chairman. Before liberation, chairman is acted as by businesswomen, and democratically elected by members. Furthermore, they have high social prestige and make great contributions to society, and their competition is intense. After liberation, kinds of regional chamber of commerce are recognized by new China, and turns to be organizations of high correlation with Association of Industry and Commerce Organization in the same area. With the development of private economy and promotion of status and role of Association of Industry and Commerce, the action of private entrepreneurs acting as chairman becomes a top-down practice. This positive effect is improving initiative of private entrepreneurs participating in Association of Industry and Commerce and Chamber of Commerce, and meanwhile also improving ability and level of self-management of Association of Industry and Commerce who is as a representative of business giving priority to private enterprise. The reason why they do that is giving high praise to status and role of private enterprises and uniting private enterprises’ strength to develop.

However, the generation of chairman of Association of Industry and Commerce need strict procedure and criterion. On the one hand, it is generated democratically according to constitution of Association of Industry and Commerce. That is to say, it should be generally accepted by members and generated by law and election. On the other hand, before election it should be recommended and investigated by party of Association of Industry and Commerce, United Front, Organization Department, even superior United Front. In other words, it’s generated and nominated by political examination.

Normally speaking, they are double insurances. But why will the case that chairman breaks moral hazard base happen? When we look for reason, we will find the two insurances are not secure. The phenomenon is existent such as formalism, executive will, and cronyism, etc., which is undoubtedly a bad phenomenon that “work with ill”.

The second point is supervision of chairman of Association of Industry and Commerce. Chairman enjoys high political treatment and economic resources. And why are economists so keen on disputing for the position of chairman? If not strengthened oversight, the problem that they may utilize his special status to benefit himself by integrating the resource of the member may emerge. For example, the case of these two losing contact chairmen, the amount that they illegally raise funds and take deposit has reached the scale of County State-owned Commercial Banks, obviously not built in a day, but why is exposed after they lose contact and run away?

The third point is social risks of illegal fund-raising. Why does the case that entrepreneurs lose contact and run away repeatedly occur in recent year? The reason is real economic loss and virtual economy inflation a few years ago. All the cities and even countries are filled with kinds of small loan companies, bonding companies, pawnshops and even consignment lines whose crux is deposit-taking. Government funds, financial assets and even a large proportion of resident deposits are all circulated to these underground banks. Not only these organizations are playing this game, but also almost the majority of enterprises are also taking social deposit out of staff range, which takes deposit with high interest. However, we all forget a basic fact, namely whether capital is safe or not, whether capital appreciates in value, and finally the real economy plays decisive role. The new road of Premier Li Keqiang, throughout a road of saving the real economy, is obvious in line with economic laws. Then the underground banks which take deposit with more than ten times higher than the average profit of real economic must be go bankrupt! This is fact!

It is reported that the Association of Industry and Commerce says: the case of running away is few. Someone takes examples of Wen Zhou, and says that SMEs amount to more than 140000 without self-employed people, but the amount of entrepreneurs who runs away is about 90, without regional, industry crisis.

But you know, even through enterprises are much many, the chairman is only one in a region! He himself is just a unique representative in industry in this region. Amount of the running away is only one, but its bad effect and influence is great.

It is said by research of SMEs’ Promotion in one advance region that his city has 30 percent of enterprises which do not started or rarely works, and the amount extending to this winter and next spring may be 40 percent.

Although local governments all claim that risk is under control, without regional, industry and systematic risk. But we know steel financing and coal financing has been industry and cross- localization risk pre-warning. If debt risk of local government is added, namely folk risk is superimposed on government risk; it will be difficult to dispose in short term. So, great attention should be paid by governments at all levels.

Losing contact is just relatively lost, not absolutely lost. Running away is a narrow road, and actually they have no road to run. Once we met a problem that backbone of Association ran away. When contact with him, we tried to persuade him to face with his problem and help him revitalize stock assets, resolving the debt. Finally, this enterprise makes good locations for government to auction in order to repay debt in place of them, stepping aside to comeback. But they stand in industry with new attitude now, and are still respected men.

Chairman has famous boom and great correlation! Losing contact and running away is the worst way! Losing Morality, lose all! Advise everyone that go back from the brink, repenting and being saved.

 
 
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