Chen Liu|Writing to Enterprises in the Chinese New Year: How To Deal With the VUCA Era?

Release time:2023-01-28Author: Chen Liu

The term VUCA era appeared in the media recently. VUCA represents Volatility, Uncertainty, Complexity and Ambiguity. These factors describe the confusion of enterprises when making plans or looking forward to the future.


The author believes that we should accurately understand the certainty of the times:


1. Development is taken sound as the top priority in governance, but we should recognize that the development refers to high-quality development.

2. It is certain that we will open the door to the outside world wider, but we should recognize that overall development and security are more important.

3. It is certain that we will unswervingly consolidate and develop the public sector and unswervingly encourage, support, and guide the development of the non-public sector, but it is necessary to realize that the state should guide capital to the real economy.


At the same time, we should also see that the short-term challenges are still uncertain:


1. Although we have experienced a big year of macroeconomic shocks in 2022, the exogenous shocks are still uncertain.

2. Although the social order is recovering after the epidemic, it is uncertain whether and how the economy can return to the pre-epidemic.

3. Although the contractive policy is being corrected, the confidence of market participants is uncertain.


Finally, the article suggests that enterprises should always try to be enterprises that use special and sophisticated technologies. It is suggested that enterprises should try to become the leader of the subdivided industry, improve their docking ability, make full use of external resources, and seek certainty from the industrial chain and uphold the spirit of innovation.