Photo: AP Images
Steve Wynn just led and completed the Wynn Resorts earnings webcast. Minutes ago during the Q&A, Wynn shared some details of a conversation he had with a high ranking Chinese official.
According to Wynn’s source, China is planning to “privatize and liberalize” certain industries. “[T]here was a feeling that less government central control, not less government monitoring, but their ownership and day-to-day control of these institutions was not in the best interest, over regulation and over control, to promoting growth in the PRC and creating jobs
Below is a transcription of Wynn’s comments:
“In China, it’s is very interesting, I had an occasion to be in the company of a very influential, well-informed, high placed source of political insight in the Peoples Republic Of China last week, 10 days ago in Singapore.
“And, some very interesting things were said. And, if they’re true they’ll be noteworthy to all of us as we look at the Chinese market.
“The point was made that there’s a feeling in Beijing in order to service the expansion of that economy going forward from where it is today, having achieved critical mass of today’s proportion, to go forward, changes have to be made in The PRC.
“And this source made the point that there was a point that there was a thinking in Beijing that they have to privatize and liberalize some of the institutions in that country. And that meant that some of the state-owned businesses, and you know the list as well as I do, Tom, were going to be..they were going to release their control of those enterprises. And either privatize or allow them to go public or do other things.
“And so there was going to be a liberalization of central government control in the hopes that would by de-centralization allow the country to be more agile and flexible in response to its growing needs of consumerism and industrialisation. That overwhelming central control at this point was, as it is in America, is a detriment to rapid expansion and job creation.
“And this source shared with myself and other people that were present, and I assure you, I don’t want to get my name in the paper quoting anybody, because these stories are often repeated in the local press in China, but there was a feeling that less government central control, not less government monitoring, but their ownership and day-to-day control of these institutions was not in the best interest, over regulation and over control, to promoting growth in the PRC and creating jobs.
“If that statement is accurate, and Xi’s government is going to be characterised by that, then I believe that will get a great deal of press going forward and will be a discussion widely held because it will mark a slight change, again, in the direction of leadership in China.
“My source may be wrong. He may be adding a personal interpretation that’s not accurate, but it’s interesting that someone of this calibre made that observation. Because if it’s true, I’m hoping the government in Washington, D.C. will take note of it.
“If the Peoples Republic of China think that job creation and small business expansion is best served by decentralization, then that’s what the business community of the United States has been telling Washington, D.C. in ever louder voices for the past 12 or 15 months.
“It would be interesting if they finally get that clue from China rather than from their own country. But I did hear that Tom and I heard it from a fancy source…10 days ago. That would be very good news for us because the more you release the entrepreneurial zeal of China, and the way that temperament of those people are, the more unbelievable results will be. That’s a hustling, hard working, entrepreneurial, risk taking culture over there and unless someone holds them down they’re up and at ’em.”
Wynn warns that his source may be wrong. But he’s optimistic that if it is true, China would see a big boom.
Business Insider Emails & Alerts
Site highlights each day to your inbox.