Hello Jack, how are you? It has been a long time since we last talked. Before we begin, can you tell us about your background and current activities?
After graduating from Harvard Business School, I went to work on Wall Street, joining Paine Webber, where I served for 20 years and ended up running the Investment Banking Department. I then decided to do something different for a second career and became interested in Asia. That led to a trip to Hong Kong in 1990 and my moving there in late 1991. I quickly decided within Asia, China was the key driver, and in 1992 made my first trip to the Mainland.
At that time, China’s auto market was small and fragmented. They were manufacturing about 500 thousand vehicles a year, but it was clear the country wanted to develop a large auto industry. However, foreign companies were slow to enter because volumes were too small, so to encourage investment, the government allowed foreigners to have majority ownership in automotive components companies. That is now allowed in most industries in China, but at the time, auto components were the only industry where this was permitted.