Dr. Xiao Feng, vice president of the investment company, China Wanxiang Holdings, attended the 7th Global Investment and M&A Summit in Shanghai, according to local news, on June 5.
In his keynote speech Dr. Xiao spoke about how digital economic reform revealed the speculation that globalization will soon migrate from the physical world to the digital world. He believes that Immediate Edge and other emerging technologies will be the tools with which we will reach this digital globalization, he explained:
„Blockchain is a digital trust mechanism, because of its characteristics of irrevocability, delectability and immutability, when we move this data to blockchain, this data cannot be altered.
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Digital globalization is the real business
Xiao believes that before the pandemic, globalization benefited many people, including China, Wall Street and multinational companies, however, it also left victims such as the middle class and industrial workers in many developed countries, he explained:
„Because the middle class and workers cannot be globalized, in the economy it is called non-tradable goods.
However, he believes that after COVID-19, digital globalization without borders will benefit both developing and developed countries, he said:
„With the help of digital technology, the workforce can be changed from now on, and employees don’t need to move from the United States to China, even if the industry moves to China, then there is education, teaching English over the Internet has turned non-tradable things into tradable things … „
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Trends in digital globalization
According to Dr. Xiao, digital globalization will affect the organizational management systems of many companies, and more and more companies will move their operations online, the traditional ways in which companies measure their performance will become less important, and a new goal-setting framework may replace them as the most important management structure, he says. Such a framework will be called „Objectives and Key Results“, or OKR, Xiao says:
„Because we need to do one thing together in a different time and space, we need to be transparent and align our objectives, so we need OKR tools.
He also says that another impact of digitization will make companies subject to complete reviews of the ways in which they perform their practices, he says that the industrial revolution has reached the degree of diminishing marginal utility, in economy, the law of decreasing marginal utility states that the marginal utility of a good or service decreases as its available supply increases, Economic agents dedicate each successive unit of a good or service to less and less valued purposes.
As Cointelegraph reported earlier, venture capitalist Tim Draper also believes that digital financial innovations such as Bitcoin, smart contracts and artificial intelligence will lead us into a more globalized world.