Wanxiang Rep who is China Wanxiang Holdings Vice Chairman is believing that blockchain will lead a more globalized world with other high tech.
According to local news, the Vice Chairman of investment company China Wanxiang Holdings, Dr. Xiao Feng attended the 7th Global Investment and M&A Summit in Shanghai.
The Vice Chairman’s keynote on digital economic reform gave speculation that globalization will migrate from the real to the digital world.
Dr. Xiao said that:
“Blockchain is a digital trust mechanism. Because of its characteristics of irrevocability, delectability and immutability, when we move these data to blockchain, these data can not be tampered with.”
Digital globalization- true deal
Xiao thinks that many people, China, Wall Street, and multinationals, benefited from globalization before the pandemic.
But unfortunately, the middle class and industrial workers were its victims.
He said that:
“Because the middle class and workers cannot be globalized, in economics it is called ‘non tradable goods’.”
However, he assumes that post-COVID-19, borderless digital globalization will help both developing countries and developed countries. He explained:
“With the help of digital technology, the labor force can be traded from now on, and employees do not need to move from the United States to China, although the industry moves to China. Then there is education. Internet English teaching has turned non-tradable things into tradable things...”
Digital globalization direction
He thinks that more companies are moving their operations online and digital globalization will influence many companies' organizational management systems. The new goal-setting framework can replace the original ways in which companies measure their performance, they can be replaced as the most important governance structure. He is saying that such a framework will be called “Objectives and Key Results”.
“Because we need to do one thing together in different time and space. We need to be transparent and align our goals, so we need OKR tools.”
The complete restructuring of business practices is also being affected by digitalization.
He also claims that another impact of digitalization will see businesses undergoing complete overhauls in the way they conduct their practices. He declares that the industrial revolution has spanned the degree of diminishing marginal use. The marginal utility of a good or service decreases as its supply increases, as stated in the law of decreasing utility in economics.
Entrepreneurs dedicate each successive unit of a good or service towards less and less valued ends.
Venture capital investor Tim Draper also thinks that digital financial innovations like Bitcoin, smart contracts, and artificial intelligence will lead to a more globalized world.