CHINA'S AI UNDERDOGS: STARTUP LESSONS FROM BEIJING TO SHENZHEN

Welcome to the video podcast, 'The Way of Wealth Game Changers.'

I am your bilingual host, Angela Zheng.

Hello everyone and welcome to our Vlog, 'The Way of Wealth Game Changers.'

Today, we confront the core of investment: finding certainty within uncertainty.

Behind the explosive growth of China's private economy since the Reform and Opening-up is the 'Gutsy Investment Philosophy' of Chairman Li Xiaohua.

From a stall in Beidaihe to becoming China’s first Ferrari owner, every move he made perfectly hit a niche of scarcity.

Joining us today are Beijing's former richest man, Mr. Li Xiaohua, and Professor Frank Zheng, member of the Forbes Business Council, to deconstruct his wealth mindset.

In 2025, amidst the first market contraction in 40 years, we are all asking: what is the secret to wealth?

Should we follow the trends or go against the tide?

Today we welcome two heavyweights. First, a legend who defined 'reverse breakthroughs' over decades of investing—renowned entrepreneur and philanthropist, Chairman Li Xiaohua.

Our second guest is Professor Frank Zheng, a Forbes Business Council member who witnessed Wall Street’s cycles, here to analyze the key issues of wealth strategy.

Today we invite Chairman Li Xiaohua, the entrepreneur who built Hong Kong Hwada...

Back then, I sold it for 50 cents a cup. That was an astronomical price! I was at the Beidaihe beach where tourists lined up. When I first made that money...

I was so happy I didn't know what to do; I’d never seen that much money. Every night, my buddy and I would count the cash. Sales were handled by the workers, and I counted.

Actually, they helped count too. It was a massive job because it was all small change—dimes and nickels. It felt incredible. I thought I was amazing.

How did I earn so much? Back then, my dream was just to have 2,000 yuan. I thought I'd be rich and satisfied for life if I could just have that much.

But then, I made 2,000 yuan on my very first day! Making money felt great. You mean your first day abroad? No, I hadn't gone abroad yet; I meant my first day there.

Selling that water. Remember, back then a top official's monthly salary was only about 50 yuan. So making 2,000 in a day was more than what the national leaders earned.

I think the highest salary for a national leader back then was about 300 yuan. Most workers made 32 yuan. I quit my job, jumped into business, and hit my life goal on day one.

It took vision, but also guts. If you hadn't quit your job as a cook, you wouldn't be where you are today. I still see my old coworkers, the ones I used to cook with.

Most of them are retired now, still in their roles as cooks. Their lives are quite tough because their pensions are very small.

Not even a few thousand yuan, probably just a few hundred or a thousand. They have to live very frugally on that income.

I sold water during the summer until September 1st. Once school started, the tourists disappeared. So, with the money I earned...

I bought a VCR and a projector to show movies. You really caught every wave! Back then, that business was incredibly hot.

It was like just picking up money because China had so little cultural entertainment. You were running a 'video hall' in Qinhuangdao?

Yes, in Qinhuangdao. At that time, Chinese entertainment was limited to the eight model operas and a few old war movies. People were starved for variety.

I showed imported martial arts films, mostly from Hong Kong and Taiwan—Bruce Lee and things like that—and some foreign action movies.

One that sticks in my mind was a US movie about a 'suicide squad.' It was incredibly popular. It was an absolute hit.

I don't know if you showed 'Man from Atlantis.' I did! That one was huge too.

Back then, I sold tickets for 1 yuan each. That would be worth hundreds of yuan in today's money. At least a 100-fold difference.

Easily. But scalpers would flip my 1-yuan tickets for 10 yuan. The crowds outside were massive, everyone lining up to get in.

People who managed to see a show were so proud. It became a status symbol; word of mouth was everything.

Later on, entire organizations would book the whole hall for private sessions. That business was even better than selling water.

I was so envious. Back then, they far exceeded the '10,000-yuan household' status. One such person per county was a big deal. Actually, that status came a bit later—it was extremely rare then.

Think about it, this was the early 80s. People hadn't started 'diving into business' yet. This was just raw, personal accumulation. He was performing several shows a day, constantly.

Later, I made it a huge success. Doing business felt incredibly simple to me—too easy. Making money wasn't hard at all, unlike the struggle people describe. I had no business school or prior experience.

I felt I had a real knack for making money. It takes talent. I've studied many people, and you're right; talent is indispensable.

Why is it that after 40 or 50 years of reform and opening up, many are still penniless? Why didn't they develop? The opportunities were equal for everyone.

Some dared to jump into business and make money, while others stuck to the old ways, clinging to their stable jobs. From selling drinks to running video halls...

...you perfectly hit the pulse of the era. I really did hit it. First, there was a shortage of drinks, then other things. Not only did I hit the mark, but I knew when to pivot. I stopped selling water exactly on September 1st.

My two workers asked to continue next year. I said absolutely not. I insisted on selling the machines immediately because by next year, they would be everywhere on this beach.

How did I know? While we were selling, so many people were asking where I bought the machines and how much they cost. That meant everyone saw the success and wanted in.

I decisively sold the machines. By the next summer, there were over 100 machines on that beach. The days of people lining up to buy water from me were over. That's a thing of the past.

The same went for the video hall; I did it for less than a year. The state started regulating the market strictly, and people's cultural lives became more diverse, so they stopped making special trips for videos.

They had other activities to do. So I decisively sold all the equipment and returned. Actually, the major turning point in my life hadn't even happened yet.

The most important thing was that in 1985, I had an opportunity to go to Japan. To study abroad. Back then, many people from Shanghai went, but not many from Beijing.

Strictly speaking, I didn't have much vision then. I didn't even want to go. Why? I had no connections.

No classmates, no friends, no acquaintances, and I didn't know Japanese. What would I do there?

I already had hundreds of thousands of yuan in my pocket. I had bought a house and a car. In Beijing at that time...

...you weren't just well-off; you were among the extremely wealthy. So why did you choose to go to Japan?

I was hesitant. Should I go or not?

Internally, I didn't want to go for the reasons I mentioned: no friends, no language skills, a completely strange country. How would I manage?

Then there was my mentor, my benefactor. He was the director of the First Bureau of Commerce, Song Xuejin. He guided me like a lighthouse. Since I had this chance...

I went to Director Song and said, 'Uncle Song, I have this opportunity. Should I go?'

I told him how good I had it in Beijing—driving my own car, living in a great house. My child had just been born too.

My family life was full of joy, and I didn't want to leave. Uncle Song was the director of the commerce bureau; he understood business. Which bureau was it?

The Beijing First Bureau of Commerce. Oh, the First Commerce Bureau?

Yes, the director of that bureau. There were several commerce bureaus. As a senior with vast experience, he told me I must go.

He said that in Beijing, I was just an individual vendor—not even a small businessman, just a street hawker. He said going to Japan to learn their management and expand my horizons was crucial for my growth.

He said it was vital for my self-improvement and that I must go. Since my mentor said so, I decided to go.

So I left my hometown and went to Japan.

Once you arrived, what was the first difficulty you encountered?

Was it the language or something else?

Everything was hard. Not knowing the language made daily life—buying things, paying utilities—very difficult.

Did you go to Tokyo or Osaka?

Tokyo.

In Tokyo, with no friends and nothing at all.

Later, I enrolled in a Japanese language school in Tokyo to learn the language.

Is that school still there?

Yes, it's still there.

Where is it located?

In Tokyo, I'm not sure if you know it, but it was in Ueno.

Right next to Ueno Park.

Okachimachi, near the Japan Gokkaku.

That's where I started learning Japanese.

I met some classmates there; they became my first circle of friends.

So you built a circle. What were you doing then?

My situation was different from theirs.

I didn't need to work part-time.

Right, because you already had money.

I had money, but all my classmates had to work multiple jobs. It was very exhausting.

Not only did they have to attend class, but they had to rush to work right after.

How much could they earn a month working there back then?

800 yuan?

800 yen.

800 yen hourly.

At that time, the exchange rate was about 270 yen to one US dollar.

270 yen to a dollar.

270 to a dollar.

He developed a hair growth formula called 101 Hair Regenerating Essence.

He told me, 'Take this to Japan. There are many bald people in Japan; it’s bound to sell like crazy.'

After hearing him out, I agreed to be his agent.

Actually, there are many bald people in China now too.

Back then, there was nothing else like it; there was only this hair essence.

Only that one product.

Just that one.

Back then there was no competition; it dominated the market.

Going back to that time, selling 101 was a very complicated process.

To do 101, I had to buy 1 million yuan worth of stock upfront.

Only then could you become the general agent.

The general agent.

You couldn't get the agency without buying the stock.

Exactly.

I didn't have a million yuan then, so I had to go around borrowing.

People didn't have much money back during early reform and opening up.

It was hard to borrow. People were reluctant because they didn't know if I'd succeed or be able to pay them back.

My family was completely against it. They didn't want me going to Japan to sell medicine in the first place.

They kept saying how good my life already was in Beijing.

Right, exactly.

I said fine then, I'll go after all.

I went against everyone's advice and became the sole distributor for 101.

But once I actually arrived in Japan, I was stunned.

I had no idea how to sell it.

Right, and why was that?

Because Japan was right in the middle of the bubble economy.

The mid-80s bubble era.

To do business in Japan back then, you had to meet three conditions.

First, you had to advertise.

Second, you had to rent a storefront.

Third, you had to hire staff.

But in Japan, those three things were incredibly expensive—labor is very dear there.

Right, right, right.

The overhead was high.

But my pockets were already empty.

Man, I thought, 'What do I do now?'

Then I got more bad news.

Someone said, 'It’s fine if you don't want to do it, but you still have to pay storage fees for that inventory.'

I asked, 'What if I just throw it away?'

No, you can't just throw it away; you have to pay a hazardous waste disposal fee.

Because these are chemical materials and medicines; medical waste requires special handling, unlike household trash.

You're not talkin' about a small amount; the disposal fee would be nearly a million yen.

Man, I thought, I'm stuck between a rock and a hard place.

That was the first real dilemma I faced in business.

Man, I completely lost my old confidence.

You know, I used to think business was so easy and simple.

Now I saw that business is incredibly difficult; there are so many pitfalls.

I was so anxious I couldn't eat or sleep.

What was I supposed to do?

Like you said, there was no way out. Right, right.

And no way forward.

I only had a few tens of thousands of yen left. I had to eat and pay for the train.

By then I hadn't eaten in two days; I didn't even wash my face—I looked like a mess.

Because I felt this was the biggest setback, the first real low point of my life.

Then, one day, I suddenly saw a small Chinese-language newspaper saying the Chinese Students' Association in Japan had been founded.

I thought, 'This is great! What a perfect platform, and it's all Chinese students.'

So I went to their office and said I wanted to join. They said, 'Sure, that’s fine!'

It was a great setup, a platform for students, by students.

However, they required a membership fee.

Right, a 100,000 yen fee to become a member. I felt my pockets; I only had 80,000 yen left. I needed at least 20,000 for travel and food. I said, 'I'll pay 60,000 now; I don't have the rest, but next month—'

'—I'll owe you 40,000, but I’ll pay back 80,000 next month, okay?' They looked at me and thought, 'This kid from Beijing is really persistent.' So they agreed. When they did, they gave me a student directory.

Exactly, the directory. I took it home and started dialing non-stop. I told them I was a student too, where I was from, and that I had this amazing hair regrowth product. I told them if they sold it, they wouldn't have to work part-time anymore and could make real money.

People were curious. After that round of calls, most Chinese students in Tokyo started selling my product—about 20,000 people. Can you imagine the scale? 20,000 people everywhere, all saying they were quitting their part-time jobs.

They carried the 101 product to their former Japanese bosses and said, 'Look at this hair tonic.' Imagine, 20,000 people working for me, a whole system, and I didn't even have to pay them a salary. A massive sales force.

Right, right. Man, my entire inventory sold out in three days. Huge amounts of cash started flowing back. I was so worried—worried about where to put all the money. I had never seen so much cash.

Compared to selling water in Hokkaido or my stuff in Qinhuangdao, this made those look like child's play. Then 101 just went viral in Japan. That was a shift in the business model. It created a storm. Exactly.

At that time, I should say, the money I made... no other Chinese person there could top me. Right, right. At that time, that money—

I used money counters to process the revenue because Japanese people were used to paying in cash. Right, cash. There were six money counters running non-stop. Eventually, my team said, 'Boss, just buy six scales.'

'Just weigh the money; the margin of error won't be more than a few thousand yen. It'll be much faster.' I thought, 'You're right!' Man, that was another miracle—weighing money instead of counting it.

No joke, that probably made more money than a restaurant. Yeah, at that time, everyone selling 101 was making a fortune. I led a whole generation of students to quit their part-time jobs.

Back then, one bottle of 101 could be traded for a color TV. It was like gold. I essentially pioneered two models. One was non-store direct sales. I created that model by accident.

Nowadays people ask who the pioneer of non-store direct sales is; well, here I am. Right. That was the early 80s, selling goods like that. No shop, no paid sales force, no advertising.

Right, it all sold. But it was just one level, right? You grew it directly— No, it was just one level. That non-store direct sales isn't the same as the multi-level marketing or pyramid schemes you're thinking of. It was just one level straight to the Japanese customers.

If I had invented multi-level marketing back then, it would have been insane. Right, right. It was just non-store direct sales, but back then, I already felt pretty incredible. I had made so much money.

I basically became the first Chinese billionaire. It was around that time. In the mid-80s, even '10,000-yuan households' were rare. True. And I had already earned that much. Right.

So Japan was the lucky place for my business. It was a major step up for my business sense and personal growth. You could say that before, it was mostly luck.

But in Japan, you faced a crisis and innovated the business model. If you want to call it luck—well, there was luck involved. You can't say there wasn't. Out of all the people in business, for you to have this rebirth at your lowest point...

You can't deny luck's role. If I hadn't seen that newspaper that day, I wouldn't have known about the Students' Association, and my fate would be different. Also, there was a massive influx of Chinese people to Japan then.

That created the foundation for your sales force. Yes. Anyway, after I finished up there, I returned to China in the early 90s. I had money then. And when you're young and rich, you get a bit headstrong.

My childhood dream was to drive a luxury car—I loved sports cars. Then one day, I saw in the newspaper that the famous Italian car brand, Ferrari, was coming to China for an exhibition. I was so excited. I was just a young guy.

All boys love cars. I thought, 'Now that I have the money, I must fulfill my dream and desire.' I hoped for it, then went to the exhibition center. There the cars were, all lined up. I hadn't even dressed up; I just rushed over.

But when I got there, they had already put the car covers on and were loading them into containers to ship back. It was just an exhibition; no one bought the display cars because nobody could afford them. They wanted to sell, but no one had the money.

Right, exactly, no one could afford it back then. How much was it? The quoted price back then was 1.488888 million yuan.

You might think that sounds cheap now, but in Beijing back then, that was a fortune. At the time, 100,000 yuan could buy you a traditional courtyard house. So what's the math? That car could buy 18 courtyard houses.

So back then, the RMB was extremely valuable, but material goods weren't. Think about those courtyard houses—fine ones for just 100,000 yuan. That's how it was. Anyway, I went there.

I saw they were packing up, so I found their manager, a Mr. Song. I said, 'Manager Song, this car is amazing. Let me see it again, I love cars.' No matter what I said, he wouldn't let me look.

He said, 'You're just looking blindly; you're not going to buy it, so why bother?' Precisely. I said, 'Manager Song, I came here specifically to buy it.' Well, he looked at me and thought I didn't look like a buyer.

I asked, 'What does a buyer look like? Why don't I look like one? Tell me.' He said, 'A buyer asks the price first. You just keep shouting that you want to see the car without asking the price. That's why I think you're not a buyer.'

I thought, 'He has a point. If you want to buy, you should ask the price to see if you can afford it.' But I said, 'What's the price? Can I not afford it?' I told him, 'I can afford it, I don't need to ask. If you let me see it, I'll buy it.' He thought, 'Wow, this guy is serious.'

He had his workers pull the car out. They pulled it out: a fiery red Ferrari. I loved that sports car so much. It was a convertible—the top could be removed. The lines of that car... man, in 1992...

It was so advanced for its time. Yes. The cars running on our streets back then were what? Shanghais, Ladas—actually, Ladas weren't even there yet. There were Shanghais, Beijing Jeeps...

And the Shanghai sedans. Right, right. Then I saw this sports car... man, I loved it beyond words. I said, 'I'll buy it.' He asked, 'For real?' I said, 'For real.'

I gave him four blank checks. He said, 'You're not asking the price?' I replied, 'I don't want to ask. Fill in whatever amount you want, but this car is mine.'

When I bought that car, the salesman was actually more excited than I was.

That’s for sure.

He said, 'Finally, a Chinese person has bought this car.' Otherwise, even after years of reform and opening up, no one could afford it.

That was the first one in China, wasn't it?

The very first.

At that time, the number of Chinese people who could afford such a thing could be counted on one hand.

I couldn't even afford it back then.

As it turned out, the manager was even more excited than I was. There was another guy who was also negotiating to buy the car.

But that guy kept lowballing him, asking for a fifty percent discount. The manager couldn't do that; the pricing power stayed with Ferrari in Italy.

Italy.

He told me, 'I didn't sell it to him, and you buying it makes me feel vindicated.'

Right. So we signed the contract and I paid by check. He was thrilled. He said, 'The other guy is coming back soon, so you should head out first. On the 15th, Ferrari will host a grand delivery ceremony for you.'

The ceremony was held in Beijing, at the Temple of Heaven showroom.

After I left, the other buyer showed up. He was still trying to negotiate and drive the price down.

The manager, Alain, said, 'Stop bargaining; the car is sold.' Hearing this, the guy flew into a rage and shouted, 'Why did you sell it?'

'We were still in the middle of negotiating the price!'

The manager calmly replied, 'Look, you didn't sign a contract, and you didn't pay a deposit.'

'I'll sell to whoever gives me the money first.'

True, true.

'I haven't done anything wrong.'

Exactly. The guy realized he was right, so he finally said, 'Look, I'll pay double. Can I have it?'

The manager said, 'It's already sold. The contract is signed and the money is collected. Even if you offer eight times the price, I can't give it to you.'

Back then, there was only that one display car.

Just one. He told him, 'What took you so long? You were the first to talk to me, but you kept haggling, whereas this person didn't bargain at all.'

You missed your chance. He was so full of regret he could have died.

And so, I had already bought the car.

It became the first Ferrari in China.

So, who was this other guy?

Everyone knows him. He's a Chinese-American who struck it rich after receiving an inheritance from an older foreign woman. He loved luxury cars.

It was Li Chunping.

Right. But in the end, he didn't get the car.

Correct.

At the time, we actually lived in the same building and our parking spots were right next to each other.

When I drove the car back, he looked at it with such mixed emotions. I don't know what he was thinking, but Li Xiaohua was the one who bought it, not him.

The delivery ceremony was a huge event.

Ferrari invested heavily in publicity because they wanted to open up the Chinese market. China had opened up, and people were starting to get wealthy.

They saw huge potential in the luxury car market.

In fact, Ferrari used your purchase as a major advertising campaign.

Yes, it was like a stepping stone that opened the doors to China's luxury car market.

The delivery ceremony was high-profile.

Who was the host?

It was the Mayor of Beijing at the time, Zhang Baifa.

Mayor Zhang Baifa hosted the event personally.

He said in his speech that he was proud to see a self-made person from Beijing buy this car.

It was proof of the success of China's reform and opening-up.

Exactly.

Everyone was very happy he was there.

Since he was the mayor, he had the authority.

He spoke directly to the person in charge of license plates at the DMV.

He said, 'Put the 001 plate on this car.'

The Beijing 001 plate.

He immediately assigned 'Jing A001' to it. Honestly, that plate is worth more than the car itself now.

Where else could you get a plate like that?

Does the plate still exist?

Not only is the plate still around, but the car is still road-legal and drivable.

I'm telling you, that plate alone is worth over a hundred million now.

Anyway, after the country opened up, many foreign leaders visited China and wanted to see the car.

They all ended up signing their names on it.

Wow, over 80 presidents have signed that car now.

It has become a priceless treasure.

Because of those signatures—and about a third of those people have since passed away—

What kind of advantage does that give the car?

It's a one-of-a-kind, irreplaceable item.

It has immense collector value.

When the King of Dubai—who is also a car collector and enthusiast—invited me to visit,

He had many Ferraris, but he asked me, 'Can you sell this Ferrari to me?'

I asked him, 'How much are you offering?'

He said, 'Is 200 million US dollars enough?'

I said, 'This car is a witness to China's reform and opening-up.'

'It belongs in China; I can't sell it to you.'

You've really done a service for China.

I know the true value of this car.

It's the first one in China, which is very significant.

The plate is Jing A001.

That's also significant.

Plus, it has 83 presidential signatures.

All those signatures.

And the fact that a third of them are gone adds to the weight.

A third of them have passed away.

That's what makes it a unique, collectible masterpiece.

So his 200 million dollar offer didn't surprise me at all.

I said if you wait a few more years, it might not be worth 200 million—it might be worth 2 billion.

True, true.

Yes, because it's a one-of-a-kind piece.

You are like the owner of the world's very first Mercedes-Benz.

Think about how much that first-ever car would be worth today.

But that's not the only factor; what else do I have going for it?

First, it has the '001' license plate, plus signatures from so many people.

How did you manage to get signatures from so many leaders and presidents back then?

When they visited China, many had already heard that the country had such a car.

Exactly.

At that time, Beijing probably treated you as a symbol and representative of China, right?

So they recommended you to those presidents.

And even now, names are still being added.

I think once it reaches a hundred signatures, there won't be any room left.

It's already full; there's no space, and I'm just looking for tiny gaps to sign in now.

So, this is a convertible, right?

Yes, just a convertible.

A convertible.

That's why there's no space left to sign.

Later, even the top will be covered in signatures.

Right. So, that is the story of the Ferrari.

When you bought it, they invited the top ten global news agencies to cover the delivery ceremony.

The news media.

The media reported on the event.

Those ten agencies provided global coverage.

Yes, exactly.

Their reports were picked up all over the world.

Every corner of the world learned that a once-impoverished young man in China, who couldn't even afford a bicycle, could now buy a Ferrari.

It was a success for China's Reform and Opening-up.

Yes, exactly.

It became known everywhere.

Le Figaro even took a photo of me at Tiananmen Square...

I became wealthy and bought the world's most luxurious car. I've been lucky to catch the era of China's Reform and Opening-up. It's not just luck; you clearly had unique strategic vision. Most people don't have the entrepreneurial or life experience to time every step perfectly.

What is the core of reaping success at every historical turning point? It's the ability to turn failure into success—to treat a crisis as an opportunity.

In fact, every crisis is an opportunity. This is crucial. Look at the challenges China has faced, like the recent pandemic. It had a negative impact on the economy; for those three years, people's livelihoods were clearly affected, especially individuals and small businesses that faced closures or bankruptcy. Your experience is a great reference for today's entrepreneurs and small business owners. It’s a new starting point to go against the tide. Doing business now is different—I didn't have cell phones, the internet, AR, or AI. We had fax machines, but even those were primitive—Panasonic ones. Back then, business relied on faxes since computers weren't common. I remember a trend in Zhongguancun called Hanwang; they did input methods because computers were all in English. Today, there are more opportunities and better tools. Anything happening in any corner of the world is on the internet instantly; you know within a minute. Like 9/11—we watched the collapse in real-time. Technology today is incredible. Back then, you did the right thing by hiring many international students to do sales. You helped them realize their own entrepreneurial dreams so they didn't just have to work part-time jobs. It was a win-win. My case was even written into a Harvard Business School textbook. It influenced a generation. Now, when people see me on the street, they ask for a photo, and the first thing they mention is 'the first man to buy a Ferrari.' No one talks about the star named after me or my charity work. They just say, 'That's Li Xiaohua, the one with the Ferrari.' It’s no exaggeration to say you became a symbol of wealth for the common man during the Reform era. I was one of the first to 'eat the crab'—to try business. While I faced setbacks, I overcame them. By 1992, you were essentially China's first billionaire. That era truly toughened me up. Whether in business or life, you will face many obstacles. You must persist and find a new path—even if it means switching tracks. When one door closes, a window opens. The Ferrari came after you returned from Japan. What did you do after that? I did many things, including real estate in Hong Kong from 1990 to 1992. I seized an opportunity after the 1989 events when people were nervous about the 1997 handover and started migrating. They sold their properties at whatever price was offered. Looking back, maybe you sold too early? Not really. Even if prices went higher later, you can't capture every stage. My philosophy is to earn what is yours in one phase and leave the next phase for others. If you try to take everything, you leave no profit for the next person, and your path becomes narrower. So Hong Kong provided your 'third pot of gold.' There was even a movie about acquiring the Gold Mountain Building. Hong Kong was a blessed land for me. I stayed there for two years before returning to develop in Beijing, focusing on the Big Health industry.

What products did you focus on in the Big Health sector?

I bought a scientific research project for a biological health product aimed at brain regeneration. Its principle is to activate and regenerate brain cells.

It was called 'Brain Power Treasure.' What year was that?

The year 2000, the start of the new millennium. Coincidentally, I watched the flag-raising at Tiananmen on January 1st, 2000, having returned from the US in late 1999.

It's a great coincidence. Can you briefly introduce the effects of Brain Power Treasure?

I acquired it from the Guangdong Institute of Brain Diseases. It was a mature project developed by over a dozen scientists—a high-tech product of its time. Products that can regenerate brain cells are rare.

Are there age limits for using it?

No limits. It can be used by children as young as one to centenarians. It regenerates brain cells. Most brain-related issues—

Forgetfulness, insomnia, intellectual disabilities—are caused by the death of brain cells. This product inhibits that death and activates regeneration.

This helps people recover their health. For example, those with Alzheimer's can regain awareness and improve memory. The official state permit explicitly lists functions like improving memory and brain hypoxia tolerance.

It has national patents. Is it classified as a drug or a health supplement? It's a health supplement with the 'Blue Hat' certification.

This is extremely valuable for everyone. Many elderly people suffer from Alzheimer's and lose their way home.

Mr. Li Chunping, who competed with you for the Ferrari, reportedly suffered from Alzheimer's in his later years. Is he still alive?

Reports a few days ago said he passed away, though media reports aren't always accurate. He was a controversial figure but a kind person.

He did a lot for charity over the years and inspired others. Even though he didn't buy the Ferrari, he left a significant mark on Chinese philanthropy.

Regarding your product—in Japan you used students for sales. How do you plan to market this one?

Not yet decided, though it sold very well in Japan—even better than '101.' It was sold through Japan's largest direct-selling company using multi-level marketing.

Since it was direct sales, there were multiple layers. It was sold by the top firm in Japan. I think you could use a global bidding platform for sales, as there are large orders available.

Particularly for the UN, as they care about youth, children, and the elderly in less developed regions.

The core benefit of global bidding is that orders are real; if you win the bid, you get the order. The volume is quite large.

The market is vast. Alzheimer's is affecting younger people now, even those in their 60s and 70s. There are about 250,000 charity-related hospitals in the UN system worldwide.

They deal with elderly patients and children with developmental issues every day.

Since there are no other supplements or drugs that regenerate brain cells, you have made a great contribution to humanity.

It is unique. It’s a Chinese research achievement that won national awards. This product, the technology, and the patents are all in my hands.

That's a fantastic project. I hope we can collaborate. Through global bidding and various networks, this can be sold everywhere. Brain health is a universal need.

It’s a huge market. While we talk about AI replacing jobs and creating wealth, wealth means nothing if your lifespan or quality of life is poor.

Alzheimer's is the biggest threat to quality of life. If you have it, life loses its meaning because you don't recognize anyone.

No matter how well you dress or eat, you forget it immediately. All the dopamine is gone.

To have a long, healthy, and high-quality life, you must first have a clear and healthy brain. With Alzheimer's, you lose all your life experiences.

Mr. Li, you are talking so freely now because your brain is functioning perfectly. I still have very clear long-term memory because I take this every day.

Your thinking is sharp and your memories are as clear as if they happened yesterday.

Brain health is indeed vital. Health is the most important asset.

We've discussed your journey through different eras and industries, from real estate to health and AI. Looking toward 2025 and 2026, which fields do you see as having the most potential?

Many areas will take off. AI is a given; it's being popularized across all sectors. Using AI leads to a leap in productivity beyond imagination.

Beyond productivity gains, there is AI combined with brain-computer interfaces, new energy, and electric vehicles. These are all excellent tracks.

These still provide many opportunities for Chinese people.

Young people today are confused because jobs are scarce and the environment for startups isn't as good as it was a few years ago.

Compared to the era of high-speed growth, there seem to be fewer opportunities now.

Based on your experience, what advice would you give to today's young people?

I think there are two main areas: high-tech sectors, as I mentioned, and the massive consumer market.

No matter how much technology advances, people still need to eat, sleep, and consume.

Opportunities abound in both big consumption and high-tech. Truly, there are many.

Some people see the opportunities but don't know how to seize them. With the prevalence of short-form videos, people get short-term stimulation and lose their way.

They receive a lot of incorrect information. That’s why these people really need advice and guidance from someone like you.

So the question is how he can become the next Li Xiaoping in the future.

But as things stand, it's fair to say that opportunities and challenges coexist.

Regarding current opportunities, you'll notice a tendency in China for everyone to rush into the same thing at once—like the current craze for social media and e-commerce.

Between that and live-stream sales, the 'involution'—or hyper-competition—is intense right now.

Exactly. As we mentioned, this 'involution' phenomenon happened elsewhere first—it was huge in Japan, then South Korea, and now it's China's turn.

Since you've lived in Japan, what advice can you give people on how to avoid this cutthroat competition?

I think avoiding 'involution' is a long-term process.

If you look at how they do business in Japan, they don't really have this kind of toxic competition.

It's based on trust; if I set a price, you'll find the same price no matter who you go to.

In Japan, there isn't really a culture of aggressive price wars.

Right, they don't undercut each other. They won't drop the price to 90 cents just because you sell for a dollar. If yours is a dollar, they'll stick to a fair price too—take it or leave it.

You could walk the whole street and find everyone selling for the same price.

But honestly, Professor Li, I think your past experiences could be incredibly helpful to people now.

Why do I say that?

Because the real 'involution' is happening domestically. For example, cross-border e-commerce sellers might take a 10 yuan item and sell it for $20 on Amazon or other foreign markets.

Right, that’s nearly a 15 or 16-fold gross profit.

Actually, we should learn from you—having a global perspective and going abroad is crucial.

Chinese goods are incredibly cheap at home, but they become highly valuable once they reach international markets.

Exactly, Professor Li, I feel the same way. I completely agree with you.

I really feel this. China is a manufacturing powerhouse; we produce things faster and better than anyone. We are also 'infrastructure monsters.'

Our capacity for building bridges and roads isn't just a few times higher than abroad; it's hundreds of times higher.

So at a time like this, people shouldn't just focus on the domestic market. Look abroad; the global stage is much wider.

I think while we boost domestic demand, we should also drive exports.

You hit the nail on the head. China is a processing giant. If all that production stays domestic, you get an oversupply, which leads to price wars and everyone getting hurt.

Lately, I've noticed that even when people sell internationally, they often haven't found the primary channels.

Most are stuck in B2B or B2C markets, like opening an Amazon shop or a standalone website.

However, traditional international trade stays point-to-point. It's a shame that people haven't tapped into the 'Big B' and 'B2G' markets—like foreign public procurement and multinational corporate sourcing.

Right. If we can activate both foreign and domestic demand, the opportunities will multiply.

Exactly. Our global bidding and procurement project aims to bring massive orders to Chinese companies through B2C, B2G, and international consortiums.

These orders actually account for about 65% of total global trade. It's a huge market.

I think this 'Naolibao' project is something we should carefully plan out.

It could be a massive hit if sold through these global procurement channels.

And why is that?

Because other channels are just too slow.

Also, I think those other ways are just too far removed from the actual market.

Professor Li, I have a thought—correct me if I'm wrong.

If you're in capital operations, you need to be close to the money.

But if you're in the real economy, you need to be close to the orders, right?

Your life experience perfectly illustrates this point.

I think your ability to grasp the market at every stage is incredible. That's a very important lesson we should all learn from you.

So, Professor Li, what are your future plans for Naolibao?

I believe it's a great health product that can benefit humanity, and I want to maximize its potential.

There's a huge market for treating and preventing Alzheimer's worldwide.

First, it's about helping people; second, it's about making money.

Right?

So, I think we need a systematic plan—which channels and models to use. We should discuss this.

I'm sure it will be a bestseller.

Professor Li, could you share some case studies? How has Naolibao helped specific people?

Oh, there are many different groups it's suitable for.

For instance, children born with intellectual disabilities.

If they take it, it can help restore their cognitive functions.

Then there are cases caused by trauma. We had a police officer in Wuhan who was shot in the head during a struggle. He was in a vegetative state, essentially gone.

We contacted his family and started him on Naolibao. He recovered! Now he can talk to his kids and act like a normal person.

So that means it can repair brain damage caused by external force, right?

Yes, it repairs. It's also great for those who overwork their brains. Between mental exhaustion and radiation from electronics, our brains take a hit. This helps repair brain cells.

It’s great for scientists and entrepreneurs alike.

So you should use it.

What about specific cases of children whose intellectual development was delayed?

There are many. We’ve seen elderly patients with dementia become much clearer after taking it.

For those with fading memories, it shows immediate results.

Can you give some specific examples?

Take Zhouzhou, the conductor. He has Down syndrome, but after taking this, he's much better; he even plays on his phone now.

He was encouraged by playing for top leaders. Since taking Naolibao, he really feels like a conductor. Are there other cases?

Plenty with the elderly. People with dementia aren't 'lost' anymore; they can go for walks and find their way home, whereas before they'd get lost immediately. There are many such cases.

I think we should contact Joe Biden—just kidding! But seriously, once this gets going, we need a solid, systematic marketing plan.

If we integrate Naolibao into our health system, it’ll be even more popular. I can help with this—I used to work for a national strategic consulting firm.

Later, I was a partner at Peking University Alliance. I’ve always done strategic planning. That’s great, you can definitely help. Right, Professor Li.

As a leader in Chinese industry, how do you think Chinese entrepreneurs should navigate the 'World's Factory' identity and go global?

I think China is more open now than ever, and conditions are improving. Many countries are now visa-free.

There are almost no obstacles for Chinese entrepreneurs to go abroad now. The state supports this 'going out' strategy. We should provide China's supply chain to the whole world.

It’s not that China has 'overcapacity,' it's just that the focus is too narrow. But there is an issue: when people think about going abroad, they worry about language barriers.

The living environment is different, and they have no friends overseas. I imagine you faced all these issues when you went to Japan—no Japanese, no friends.

And everything was unfamiliar, back when Japan was much more advanced than China. Well, let me tell you, Chinese people are the most adaptable in the world.

Right, but what advice do you have for them on overcoming that fear?

Once you actually get there, you'll find a way. You'll blend into society quickly.

Look at the old overseas Chinese who left before the revolution with nothing. Today's entrepreneurs have money when they go out.

They'll integrate quickly and become successful. Many overseas Chinese families became wealthy within a generation or two. And you're already successful before you even leave.

Exactly, they already have the foundation to develop. You know, that reminds me of Elon Musk's 'First Principles.'

Many people ask him how he'll get to Mars, then worry about how to eat or breathe there. You're right—just start doing it first. Get out there.

If you overthink it, you'll scare yourself to death. Many Chinese firms are stuck in a dilemma—as the saying goes: 'Either go overseas or jump in the sea.'

Don't fear failure; you need a fighting spirit. Only with that drive do you have a chance at success. If you don't take risks, you've already lost that chance. Exactly.

I encourage young people to do what I did—I went to Japan alone, knowing no one. You need that mindset and preparation. Besides, conditions are different now; there are many Chinese communities and support groups.

When you go out there now, you're not just a laborer or alone. You have China's massive supply chain, production, and infrastructure behind you. And in terms of safety, China has become very powerful.

Our embassies and consulates are your strong backbone. So don't be afraid; just go out and give it your all. Starting a business is better than drifting aimlessly. Right, that reminds me of another story.

Remember the movie 'A Native of Beijing in New York'? That era is over. Think how hard it was when people like you first left to study in the US.

You'd land with no money, not even enough for a taxi to the city. You'd sleep in a basement and have to find work the next day just to survive. Now, people go abroad with plenty of money. Exactly.

To be honest, if you sell just one apartment in a major Chinese city, you have a million US dollars. The conditions are night and day. Mr. Li, you just shared your journey from daily life to wealth creation.

Do you think entrepreneurs or the general public today can replicate your success, or do they need to forge their own paths? I don't think it can be replicated now. Why? Because the path I took is outdated.

It's too traditional and obsolete; no one does it that way anymore. We're in a high-tech era now with different tools. With smartphones and social media, why would you even buy traditional ads?

I can just post on social media and sell my products. E-commerce costs are so low. Back then, you had to bid for ad slots on CCTV. It was so traditional that all your hard-earned money went to the TV station.

Right? Now there are so many more ways. Before, it was just newspapers and TV, which are now 'weak' media. Today, we have the power of the internet—TikTok, Kuaishou, and the like.

Mr. Li, based on my observation of businesses today, we start with an idea, R&D, industrialization, and then packaging the product.

But the core issue is still the orders—whether you can actually sell it. If you can't, all the prior effort is wasted. I think...

If your product has high-tech value, it sells well. Traditional products are harder, but as I said, if you target the mass consumption market for long-term basics, like food and drink...

Those are essentials people can't live without, so they still sell. Also, some products considered outdated in China are actually quite advanced in Africa, Southeast Asia, or Latin America.

What's obsolete in China can be advanced and sellable in a developing country. If you had to choose again, would you pick Southeast Asia, the Middle East, or North America like Mexico and the US? Which three would be your top picks for going global?

I'd still choose Japan. I think Japan has sufficient spending power.

If you find the right product, you can still make money there. First, the Japanese have high purchasing power, and second, they have a strong 'contract spirit' and honor agreements.

Between developed and developing countries, like the Third World... Southeast Asia like Thailand or Malaysia is okay, and Singapore is fine, but Singapore lacks a large market.

It's too small.

So while you can go there, the scale is limited. But in Japan, the average spending power is high. If you can make them happy with a product they need, it will be a huge hit.

So Mr. Li, you're saying we should prioritize developed countries because of their large markets and high purchasing power.

The primary consideration is whether the customers have the ability to pay.

Exactly.

Especially for non-essential items where a purchase is optional, that's when their financial strength really matters.

If I have money, I'll buy it just because I like it, even if I don't need it.

If I lack purchasing power and it's not a necessity, I simply won't buy it.

Like you mentioned with Zhangguang 101—you can survive without hair, right?

You could just wear a wig.

True, exactly.

But that market is still huge in China because life is stressful now, and many people are losing hair due to anxiety.

Do you think that product still sells well in China?

It's mainly that the competition is too fierce.

Way too fierce; there are just too many hair growth products now.

Too many.

Not just hair growth, but also wig companies.

Right, right.

There are so many options for hair extensions and wigs now.

Yeah, I've seen many. Growing hair is hard and takes too long.

Exactly.

That’s an interesting point.

Regarding the 'Lao Li Bao' supplement you mentioned, I think that product is very interesting.

It's a necessity, a high-demand health product.

It's different from the other one.

The other was a luxury; this is a true necessity.

If I don't grow hair, it doesn't affect my ability to eat or drink.

But Alzheimer's affects everything—eating, drinking, family relationships. It impacts the whole household.

Right, like you were saying, you forget things you just knew.

I saw a short clip on TV where an old man was talking to a woman for a long time, asking about her kids, when they were born, what her name was, and where she lived.

At the end, the girl says to him, 'Dad, it's time to get in the car.'

That’s a classic symptom of Alzheimer’s.

He forgot everything.

Forgot your happy history, right?

Forgot your current family and your future.

If he doesn't even recognize people, how can there be any family connection?

A family needs that bond to be a family.

If I forget everything and just spend my days eating and sleeping in a daze...

Mr. Li, hearing you say that, I'm really looking forward to your product.

Because we all grow old eventually.

AI might let you live to 150.

But if you're in a state of knowing nothing from age 50 to 150, just waiting to die, that's worse than a life sentence or a death penalty.

So I think this product is extremely valuable.

Yes it is, definitely.

Alright, Mr. Li, thank you very much.

You're welcome.

We've covered so much, but I feel we're not done yet, so let's find time to talk again.

Let's talk again soon.