All Business: Wanxiang America’s Pin Ni Discusses the New US-China Relationship

 

Launched in 1994 by Pin Ni, Wanxiang America is the Chicago-based arm of Wanxiang Group, which is involved in auto parts, clean energy, private investment, and real estate in the United States. A three billion dollar corporation with a workforce of 12,500 employees, Wanxiang America acquired over 20 US companies during the economic downturn–saving more than 3,000 American jobs in the process. In addition to its own business, Wanxiang launched the China-America Bridge Program, providing full import and export services to customers in the US. Wanxiang has also sponsored hundreds of American students to study in China in partnership with the 100,000 Strong Foundation.

 

 

Wanxiang is a Chinese company doing business in America that has also acquired many American companies, each with its own culture. How have the genetics of the company changed?

We have a lot of confusion talking about companies from China. I think that’s not even the real subject in the actual business. It’s not about whether you are an American or Chinese company. In the end, it comes down to a simple question: are you making money? If you are, then you are a company that’s going to grow. If not, it does not matter whether you are Chinese or American.

Wanxiang doesn’t deal with unions in China, but they are a central part of American manufacturing. How do you approach that relationship?

I don’t think we ever tried to please the unions specifically–just like in China, we never tried to please any specific groups. From my point of view, all of our stakeholders are family members, and the company is responsible for taking care of all the stakeholders.

There are four different stakeholders in every business: first is the customers who give you the money, second is the shareholders who take the risks and invest in the business, third is the employees who are really working hard to make the customer happy and make money for the shareholder. And the last one, fourth, is the community–you cannot isolate the community. So, from our point of view, it’s just about how you balance the interests among these four parties. They all have a different orientation. We need to create value for our customers, we need to create a future for our employees, we need to create returns to our shareholders, and we need to create prosperity for our community.

So you have to bring these perspectives together. It’s not about who is more important; rather, it is bringing balance to the four parties. For unions, sure, there are some unreasonable union leaders, and there are just as many unqualified corporate executives. However, there are a lot of good people, too. We need to work together, and a healthy growing business will benefit all parties.

How is the trade relationship affected by different systems in China and the US?

In general, the trade relationship is getting better. However, as we are trying to fill many gaps, we are also creating phantom enemies in our minds. Chinese people often get confused about who is representing the United States. Because China is a one party, one government, and one voice system, if the voice says something, that’s representing the government. In the United States, we have a very different political environment. When some congressmen or congresswomen speak out, that does not necessarily represent the voice of the United States. Congressmen, mayors, governors, and the media are just some of the voices in this society, but none of them are the voice that represents the administration. That’s the reality of democracy.

What are the main drivers of the China-US relationship right now?

The business-to-business relationship is probably the most influential force because, structure-wise, America and China are different yet complementary. What we are missing right now are cultural exchanges, where different units of the society can exchange ideas, discuss differences, and share opinions.

Cultural exchange programs can be the most powerful ties between nations. They are powerful not because of today but for their long term impact. President Obama launched the 100,000 strong initiative, in which the United States is planning to send 100,000 students to China. Wanxiang supports that program, so I reviewed comments from some of the students who participated. They didn’t have a good impression of China before they went there, but when they landed in China, they thought, wow, this is great! It is obvious that this program will have a significant impact after these students come back.

While the government-to-government relationship matters a great deal to the leaders of the nation, it does not make as much of a difference to the people living in these countries.

Compare the Chinese dream to the American dream: how are they similar, and how are they different?

In reality, dream is more like common sense, which can have a lot of meanings. It does not necessarily mean that China has to do exactly as the United States does, but whatever we are not good at, we need to improve. For example, right now, anticorruption is a big part of the Chinese dream. Certainly, we have the same dream in the United States, and that’s why many of Illinois’ past governors are in federal prison.

The dream is necessary, especially when people get lost. The leader establishes the vision and the way in which we are going to get there. The United States is lucky, since, for the last two hundred years, it has had one constitution without lots of changes. That gives the stability needed to realize a dream. It doesn’t mean we don’t have problems. There are always insights that these two countries can learn from each other.

Feature Photo: cc/(Ring gear hardware)