Desmond Shum | Climbing The Peak Of China's Elite & Fleeing Before Being Disappeared
Aug 29, 2023
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Desmond Shum, a former insider of China's political apparatus, shares his experiences climbing the peak of China's elite and fleeing before being disappeared. Topics include dealing with abuse and the Chinese caste system, leveraging status and vanity, navigating China's politics, corruption and guanxi, dynastic wealth, publishing a book, and discussing Jack Ma. The podcast also covers topics such as how rich Chinese hide their money, fallout after publishing a book, the influence of wealthy Chinese in Australia, and the dire outlook in China.
Guanxi is crucial for conducting business in China, where personal relationships hold significant influence.
Status and vanity play a vital role in business interactions and decision-making processes in China.
The wealthy elite in China pursue unique experiences, with a focus on building relationships and enhancing personal connections.
True wealth goes beyond money and involves passing down legacy and values to future generations.
Deep dives
The Influence of Guanxi in Chinese Business
Guanxi, a concept of cultivating relationships and securing political capital, plays a crucial role in conducting business in China. Unlike in Western countries, where legal systems and institutions regulate transactions, in China, personal relationships and connections hold significant influence. The absence of a reliable legal recourse makes building and leveraging guanxi essential for achieving business goals and navigating the complex political landscape. The depth and value of connections formed through guanxi can determine success or failure, impacting a range of situations, from obtaining business deals to resolving legal disputes.
The Significance of Status and Vanity in Chinese Business Culture
Status and vanity are integral to doing business in China. They influence interactions and decision-making processes, both within the business sphere and in social contexts. In Chinese society, outward appearances and gestures of wealth and success carry great meaning. High-status individuals are often surrounded by a collection of talented individuals, signaling their power and influence. In the business realm, projecting an image of success through expensive purchases, extravagant experiences, and high-profile connections is vital for gaining trust and influence among peers and clients. Vanity and status-consciousness shape social dynamics and can greatly impact business relationships.
Curiosity and Experience-Driven Lifestyle of the Wealthy in China
The wealthy elite in China often have a thirst for unique and extravagant experiences. Money is not the main objective, but rather the curiosity to explore and collect new things. This drive for new encounters leads to seeking out expensive and rare possessions, engaging in luxury travel, and pursuing exclusive opportunities. However, once these experiences have been attained, the allure may fade, and wealth alone loses its appeal. The focus then shifts to building relationships and enhancing personal connections, such as meeting influential individuals and engaging in thought-provoking conversations.
Desmond Shum's Personal Journey of Legacy and Family Wealth
Desmond Shum, a former member of China's elite, embarked on a personal journey to study wealth and family legacies. He sought to understand the impact of passing wealth to future generations. Through experiences, research, and introspection, Shum realized that true wealth is not just about money but also about the legacy and values one passes down. He explored the significance of family, lineage, and the stories behind wealth creation. Shum believes that equipping children with an understanding of family legacy and values is more important than solely focusing on monetary inheritance.
The impact of the New York Times article and Whitney's disappearance
The New York Times article about the relationship between Desmond and the Wang family played a part in exposing their relationship to the world and making them vulnerable. It also revealed how Desmond dealt with government officials and ministers, which was a shocking revelation for many. The article contributed to the strained relationship between them and the Wangs, and it also raised concerns about the secrets Desmond knew about top political circles. However, it is not clear if the article directly led to Whitney's disappearance.
The role of randomness and serendipity
Desmond believes that luck and randomness play a significant role in one's fortune. He shares examples of how chance encounters, opportunities, and timing shaped his own experiences. He highlights the importance of being prepared and ready to take advantage of these serendipitous moments when they arise. Desmond also acknowledges that while randomness can provide opportunities, it is crucial to have a strong foundation and capability to make the most of these occasions.
Outlook on China's future
Desmond expresses a pessimistic view about China's future. He cites demographic problems, political factors, and the limitations of China's economic model as issues contributing to a downward trajectory for the country. He believes that the growth of China is largely supported by increasing debt and inefficient projects, and that the heyday of China is over. Desmond sees a gloomy outlook and does not identify any silver lining in the big picture.
#149 - After climbing the peak of China's Elite, Desmond Shum had to flee his country of birth out of fear of being disappeared.
He was on the inside of the political apparatus along with his former wife, a multi billionaire who would later go on to be disappeared, and together, but in the years before they built their empire of the backs of being cosy with the most powerful elites right up the tippy top of the CCP mountains-cape.
These relationships coupled with an incredible ambition and nouse for business led Desmond to multiple business deals that were not only extremely lucrative, but also interesting as a case study into the tide lifting all boats phenomenon that was a booming china ins the early 2000’s.
00:00 – Introduction
05:13 - Dealing With Abuse & The Chinese Caste System
16:39 - Status, Vanity, Social Awareness & How Desmond Used It To His Advantage
31:13 - Navigating China's Politics & Attention To Detail
37:19 - Corruption & Guanxi
49:13 - Desmond's Lifestyle When He Was At The Top
53:48 - Dynastic Wealth & Desmond's Relationship With Whitney & His Son
58:58 - Whitney's Disappearance
1:04:13 - Whitney's Elite Guanxi
1:12:18 - Desmonds Biggest Deals & The Tide That Lifts All Boats
1:26:13 - Whitney's Disappearance
1:29:28 - How Rich Chinese Hide Their Money
1:38:03 - Does Desmond Still Feared Being Disappeared?
1:39:23 - Fallout After Publishing Book & Discussing Jack Ma
1:45:43 - China's Future
1:47:23 - 'I Signed My Life Away When I Decided To Publish The Book'
