Dhanin Chearavanont, Chairman of the Charoen Pokphand Group——China Faces Aging Population Challenges
When it comes to economic changes in the world, I believe traditional industries and real industries are still very important. As for the Internet business, Charoen Pokphand Group is a leading e-commerce group in Thailand because we integrate telecommunications with television and we are three-in-one network. We have been constantly studying on the transition of our traditional enterprises as real industries have brought about automatic innovation.
Our food factory doesn't have workers, as robots have totally replaced workers. As the world develops, robots have taken the place of labor forces. Previously, agricultural development fully relied on farmers. Later, with agricultural reform, industries emerged which used workers, and then robots will replace workers, especially in our food industry. We've made investment in the meat industry and the best way is not to reduce cost; rather, we work to ensure quality and safety. We use full-automatic machines and try to use fewest people to replace risks and unstable quality. To ensure high quality and high efficiency, we could only rely on modern mechanization.
I connect in mind China's aging population. That said, don't worry. China needs to rapidly produce robots to meet a shortage of labors in an aging society. Before the agricultural revolution, 100% people were peasants, and finally only 1% of people in the United States are farmers. The industrial revolution used machineries, but also employed many workers. In this new era, the sales volume of the Internet is growing increasingly. Who will replace the production finally? Real economy occupies the most important position at last. Who will be the producer of commodities sold on the Internet? Who will be the carrier? Apart from virtual products that are produced and carried online, who will transport real products from the factory to the shops and then homes? Distribution and warehousing is an important link. So my suggestion is that in the new era, we need to become fully automatic. We have built a factory in Belgium which doesn't have workers and only employs seven people. Full-automation ensures its production around the clock.
CMIG was born with favorable climatic, geographical and human conditions. I said at the meeting with Chinese merchants of the world in China that powerful outsiders can hardly afford to neglect local bullies. As we powerful outsiders meet local bullies, your era has passed. Previously you had money to make investment as China was short of capital and foreign exchange. Today you couldn't come even you have money available. Only with special technology, could you come to make investment; otherwise, you should come to invest in CMIG when you have money. When we made investment, some businesses have been out there in China and it is too late for us to come here. China has talented entrepreneurs. Opportunity alone is insufficient. You should also have people as human effort is the decisive factor. Today, China has been going global and carried out reform. Everything is just right.