AsianFin -- While globalization has led many to believe they live in an economic world, today’s reality is drastically different, said Chen Weiguang, Managing Partner of Lanchi VC at 2024 T-EDGE Conference on December 7.
"We now live in a world of major political, social shifts, and technological transformation, full of uncertainty," he noted.
Chen discussed how, under new constraints and changes, businesses can re-capture growth and get back on track. As an investor, he believes it is essential to return to the fundamentals and identify the key driving factors. These include China’s rich talent pool, particularly in the field of AI, which forms a strong foundation for the development of Chinese technology and the new economy. He also pointed out that the growth of the new economy is expected to offset the negative impacts of the real estate downturn, while the shift of supply chains toward knowledge-intensive industries and increased global demand driven by diversification of trade partners and G2 competition are also important drivers.
Chen stressed the need to not only recognize these changes but also embrace them. "The next phase of growth will shift from international free flow and optimization of resources to great power competition. We need to accept this, whether as entrepreneurs or investors. If we remain stuck in the mindset of the past generation, we won’t be able to keep up with the current changes," he said.
Looking ahead, Lanchi VC will focus on fields such as embodied intelligence, AI infrastructure, and AI applications.
From the perspective of early-stage technology investors, Chen advised having confidence in facing challenges, while also thinking outside the traditional frameworks. He emphasized the importance of recognizing the differences between the current and past decades and approaching innovation with fresh perspectives to create new value, ultimately driving growth. For venture capitalists, he stated, it is crucial to generate returns for limited partners (LPs) while supporting national innovation and economic growth.
