From “giving a man a fish” to “teaching a man how to fish”—Guangcai Initiative Creates a Model for Poverty Alleviation That Promotes Harmony and Win-Win Outcomes

　　On April 23, 1994, when Liu Yonghao, Zhou Jinfeng, and eight other private entrepreneurs jointly launched the Guangcai Initiative, the very first sentence of the initiative’s call to action read: “Our motherland and our nation are a harmonious big family, where people are as closely intertwined as water and milk, and whose bonds run deeper than blood.”

　　The three keywords—“ethnic groups,” “blending like water and milk,” and “harmony”—accurately capture the distinctive features of the Guangcai Initiative: fostering cultural exchange and integration among various ethnic groups, promoting mutual complementarity between developed regions and underdeveloped, remote, and impoverished areas, and achieving harmonious win-win outcomes and shared development.

　　Lei Jufang and Zong Qinghou are prime examples of those who have promoted exchange and integration among ethnic groups and regions. By combining advanced ideas, cutting-edge technologies, and substantial capital with the vast central and western regions and their rich traditional cultures, they have not only achieved the goal of poverty alleviation through the "Guancai Project," but have also enabled their own enterprises to achieve rapid development.

　　Lei Jufang: The Radiant Heavenly Road on the Snowy Plateau

　　Tibetan medicine has always given outsiders a sense of mystery. Moreover, the Tibetan people themselves have long revered it as sacred and once kept its secrets closely guarded. In the eighth century AD, the Tibetan physician Yuthok Yonten Gonpo authored the monumental classic of Tibetan medicine, "The Four Medical Tantras." Later, King Trisong Detsen buried this precious text—as if it were a sacred scripture—deep within Samye Monastery. It wasn't until the early 11th century that the text was rediscovered and brought back into the light of day. Since then, generations of Tibetan medical scholars have regarded it as the ultimate authority, and Tibetan medicine has provided a strong foundation for the survival and prosperity of the Tibetan people.

　　No one could have imagined that more than 1,200 years after the "Four Medical Texts" were first published, a Han Chinese female entrepreneur would, through the Guangcai Initiative, not only make outstanding contributions to poverty alleviation in Tibet but also greatly promote Tibetan medicine and Tibetan culture. That person is Lei Jufang.

　　Fated to be connected with Tibet

　　In 1987, the complete Chinese translation of "The Four Medical Tantras" was published, marking an important milestone in the cultural exchange of medicine between the Han and Tibetan peoples.

　　It was in this very year that Lei Jufang, a 34-year-old assistant engineer, stepped out of the laboratory at the Institute of Modern Physics of the Chinese Academy of Sciences and embarked on her entrepreneurial journey.

　　In 1992, Lei Jufang, having just experienced her first entrepreneurial failure, set off alone for Tibet—both to find spiritual solace and to explore a new starting point for her career. Fate, in an unexpected twist, changed her life in this very moment.

　　In Tibet, Lei Jufang came into contact with Tibetan medicine and learned about numerous medicinal herbs deep in the snow-capped mountains—herbs whose healing properties were nothing short of astonishing. Thus, Lei Jufang chose Tibetan medicine as the new starting point for her career. After repeated research, she applied the latest vacuum freeze-drying technology from physics to Tibet’s unique, highly effective yet difficult-to-preserve paste-like black ointments, creating a product called “Qizheng Yan Tong Tie.” This product not only effectively preserves the medicinal properties and efficacy of these ointments but is also clean and easy to carry. Once the drug was developed, it quickly gained widespread acclaim.

　　In August 1993, Lei Jufang registered and established Qizheng Tibetan Medicine Co., Ltd.

　　The Guangcai Initiative Takes Root in Tibet

　　In April 1994, the Guangcai Project—jointly initiated by ten private entrepreneurs including Liu Yonghao and Zhou Jinfeng—greatly inspired and deeply moved Lei Jufang. The Guangcai Project is aimed at poverty alleviation, and Lei Jufang was keenly aware that Tibet, which lagged far behind the eastern regions, stood in greatest need of such a project. Although Qizheng Company was still in its early stages of development and not yet particularly strong, Lei Jufang already had a clear plan in mind.

　　From July 29 to August 13, 1995, a 40-member delegation from China’s Private Sector Brightness Program—organized by the All-China Federation of Industry and Commerce—undertook a 16-day investment exploration trip to Lhasa City and the regions of Linzhi, Shannan, and Nagqu in Tibet. Lei Jufang was one of the members of this delegation. It was during this very expedition that Lei Jufang decided to establish a Tibetan medicine factory in the Linzhi region of Tibet.

　　At that time, Linzhi faced harsh transportation conditions, struggled with energy shortages, and had a severely underdeveloped economy. Yet, this region boasted a pristine ecological environment and abundant wild medicinal plant resources—features that no other place could match. With the support of the China Guangcai Program and the assistance of the local government, Lei Jufang invested tens of millions of yuan. That same year, the Linzhi Qizheng Tibetan Medicine Factory was completed and began operations on the high-altitude plateau at an elevation of 3,000 meters.

　　As a result, the Qizheng Tibetan Medicine Factory in Linzhi, Tibet, became the first project of China’s Guangcai Initiative to take root in Tibet and has been hailed as a flagship of the Guangcai Initiative’s science-and-technology-based assistance to Tibet.

　　Following the Linzhi Tibetan Medicine Factory, Lei Jufang went on to establish other remarkable projects in Tibet and Gansu. With Lei Jufang’s assistance, many Tibetan compatriots have risen out of poverty.

　　Cultural identity integrated into Tibet

　　The Guangcai Initiative encourages private entrepreneurs to invest in poverty alleviation efforts in remote, underdeveloped, and ethnic-minority regions. Among these regions, those inhabited by ethnic minorities are the most complex, as investing there for poverty alleviation also involves addressing issues related to ethnic relations.

　　Why is it possible to achieve this? Lei Jufang has her own insights. She says, “Are you consciously engaging in a process of cultural integration, or are you investing with a savior complex? Consciously immersing yourself in the local culture—and even feeling as though you’re being assimilated by it—this is a fundamental principle for achieving success in investments, whether across national borders or across ethnic groups.”

　　In Lei Jufang’s view, Tibetan medicine and Tibetan culture are inseparable. Simply promoting Tibetan medicine without integrating it with Tibetan culture is like trying to catch fish from a tree—over time, it will inevitably become a tree without roots and water without a source. For Qizheng to achieve significant development, it must first demonstrate its respect for Tibetan culture.

　　In the course of running her Tibetan medicine business, Lei Jufang’s outlook on life has also been profoundly influenced by Tibetan culture. In Tibet, physicians are revered as “Jishi Taiyi”—healers who have enjoyed high prestige across generations. Tibetan medical ethics require practitioners to possess not only considerable wisdom but also a compassionate heart and a sincere commitment to alleviating suffering and helping others. Imbued by this environment, Lei Jufang has set similar standards for her own enterprise: emphasizing moral self-discipline, treating others with kindness, and “doing good deeds for humanity while building a company that endures through the ages.” Deeply rooted in the wisdom of Tibetan medicine and dedicated to studying Eastern civilization, Qizheng Group has developed a cultural ethos centered on “acting with goodness and benefiting others, pursuing the right path and engaging in righteous endeavors.” Through cultural integration, Qizheng Group has established a foundation of integrity among Tibetan medicine experts and government authorities, creating a favorable humanistic environment for expanding its promising undertakings.

　　Taking responsibility lies at the heart of Tibet.

　　On August 28, 2009, Qizheng Tibetan Medicine was listed on the Shenzhen Stock Exchange, marking Qizheng’s departure from Tibet and its embarkation on a new path of modern development. The 105% increase on the first day of trading was the capital market’s recognition of Lei Jufang’s 16 years of hard work and dedication.

　　After the company went public, Lei Jufang said in an interview: “To address the challenges modern people face in understanding Tibetan medicine, our company has been committed since its inception to introducing modern pharmaceutical standards into the field of Tibetan medicine. Today’s performance in the capital markets shows that we’ve been on the right track over the past decade and more.” At the start of 2010, Lei Jufang stepped down as general manager, retaining only her position as chairwoman. There’s no doubt that promoting Tibetan culture will be the focus of her work going forward.

　　On April 22, 2010, as a publicly listed company, Qizheng Tibetan Medicine released its 2009 Corporate Social Responsibility Report along with its annual report. This marked the first CSR report ever published by a Tibetan medicine enterprise to the public. As a leading enterprise in the Tibetan medicine industry, Qizheng Tibetan Medicine presented in the report its CSR commitment system—“guided by core values, grounded in practical implementation, and supported by robust mechanisms”—and highlighted the special social responsibilities that traditional ethnic medicine enterprises should shoulder. The report also underscored the importance of cultural heritage preservation and protection, as well as sustainable industrial development, within the context of the traditional ethnic medicine sector.

　　In the report, Qizheng Tibetan Medicine concluded: Tibetan medicine is one of the representatives of China’s traditional medicine and also an important component of global traditional medicine. Only a Tibetan medicine industry rooted in the cultural heritage can possess long-term vitality.

　　Following the 7.1-magnitude earthquake that struck Yushu, Qinghai on April 14 this year, Qizheng Tibetan Medicine immediately mobilized supplies and cash totaling over 500,000 yuan on April 15 and dispatched a rescue team to support the disaster area. In total, the company has donated more than 4.93 million yuan in supplies, medicines, and cash for relief efforts, including a donation of 2.8 million yuan to the disaster area through the China Guangcai Foundation. Additionally, Qizheng Tibetan Medicine has launched a long-term relief program aimed at building six Tibetan medicine clinics, thereby contributing to the reconstruction of the grassroots medical and health system in the affected region.

　　Zong Qinghou: The Glorious Mission of China’s “Richest Man”

　　In March 2010, when Forbes released its wealth ranking, Zong Qinghou, the head of Hangzhou Wahaha Group, ranked 103rd globally with a net worth of 7 billion U.S. dollars, becoming the richest person in mainland China.

　　Many people may not know that this nation’s “richest man” has been smoking a German brand called “Big Brother” in recent years—each pack costs only 12 RMB. Aside from visiting markets and inspecting branch offices across the country, he spends nearly every day in his office, eats three meals a day in the company cafeteria, dresses casually, and leads a frugal lifestyle.

　　Corresponding to the 12-yuan pack of cigarettes is another set of figures as of 2009: Over its 23-year history, Wahaha has cumulatively donated 280 million yuan to public welfare causes. And this figure represents only direct donations; in response to the call of the China Guangcai Program Promotion Association, Wahaha has undertaken development-oriented poverty alleviation efforts in remote, underdeveloped, and impoverished regions by investing in business ventures, acquiring agricultural and sideline products, and helping local residents escape poverty and become prosperous. Wahaha’s contributions in this regard are even greater—its investment alone in building factories has reached as much as 5.4 billion yuan.

　　Help the Poor and Support Those in Need—Boundless Brilliance

　　Letting some people and some regions become prosperous first, and then using the prosperity of the early movers to help those who are less well-off—this is the wise decision made by Deng Xiaoping, the chief architect of China’s reform and opening-up policy.

　　In 1994, the "Guangcai" Initiative was officially launched. Zong Qinghou actively responded to the call of the Guangcai Promotion Association, regarding the promotion of western development, assistance to poverty-stricken areas, and the revitalization of the old industrial bases in Northeast China as his own responsibility, and incorporated these goals into the company’s “second entrepreneurial” strategic plan.

　　The establishment and development of the Fuling Company in Sichuan exemplify Zong Qinghou’s commitment to supporting and promoting development as his personal mission, as well as his enthusiastic involvement in the “Glorious Cause.”

　　Facing the media cameras, an employee from a Fuling company spoke in a thick Sichuan accent: “Before, we lived in dilapidated little houses of just a few dozen square meters; now we live in brand-new homes that are over 100 square meters. Previously, our annual income was only a few hundred yuan; now it’s tens of thousands of yuan. Since Wahaha came along, our lives have undergone a dramatic transformation.”

　　Enterprise Development Benefits “Agriculture, Rural Areas, and Farmers”

　　As a food and beverage company, Wahaha has extensive and profound connections with agriculture, rural areas, and farmers.

　　Among Wahaha’s current employees, more than 80% come from rural areas. In some places, villagers bring along fellow villagers, and relatives bring along relatives—so many people from a single village end up working at Wahaha. Many of them have had their lives transformed thanks to their jobs at Wahaha: some have settled down in cities, while others have built beautiful homes back in their hometowns and now lead prosperous lives.

　　As is well known, the fundamental issue underlying the “agriculture, rural areas, and farmers” problem lies in the challenge of finding outlets for agricultural products. Yet precisely among Wahaha’s core product lines—tea beverages, fruit juices, dairy and dairy beverages, eight-treasure porridge, instant noodles, and others—many are deeply processed using agricultural products as their primary raw materials, requiring the company to procure vast quantities of various agricultural and sideline products every year.

　　In October 2008, the Wahaha Wu Zhong factory was completed and began operations. At the outset of production, the melamine scandal had just erupted, causing many local dairy companies to cut back on production. The launch of the Wahaha Wu Zhong factory brought good news to the local dairy industry, helping to rescue a large number of dairy farmers and boosting their confidence in raising cows. Thus, whenever the local director of animal husbandry talks about this matter, he expresses deep gratitude toward Wahaha.

　　Passionate about education, generously devoted.

　　The predecessor of Wahaha was a school-run factory. It is precisely because of this background that Zong Qinghou has a deep affection for education. Not only does he devote great effort to supporting educational initiatives in his hometown of Hangzhou, but he also pours tremendous energy into the development of education in western, remote, and impoverished regions.

　　As early as the initial stages of its development, Wahaha has spared no effort in giving back to education: it established the Wahaha Youth Palace, founded the Wahaha Wind Orchestra, and donated 400,000 yuan to set up the “Hangzhou Red Scarf Foundation.” Today, Wahaha continues to provide the Education Bureau of Shangcheng District in Hangzhou with over ten million yuan in funding each year, earmarked for improving teachers’ living standards and upgrading school facilities—this commitment has remained unchanged for 23 years.

　　In 1999, Wahaha donated 15 million yuan to the Shangcheng District Education Bureau for the construction of a new school building.

　　In 2002, Wahaha provided exclusive funding of 400,000 yuan and, in collaboration with the Civilization Office of Zhejiang Province and Hangzhou City, distributed “The Code of Civic Ethics for Zhejiang Province—Calligraphy Practice Book for Primary and Secondary School Students” to primary and secondary school students across the province.

　　In 2003, Wahaha donated 2.5 million yuan to establish the “Outstanding Master’s Student Award Fund” at Zhejiang University, providing additional support and encouragement for the development of young talents.

　　In 2007, on the occasion of Wahaha’s 20th anniversary of establishing its factory, the company invested over 5 million yuan to build more than 20 Hope Primary Schools in Chongqing, Xinjiang, Heilongjiang, and other regions, giving children in impoverished areas of central and western China wings to pursue their dreams.

　　On September 26, 2007, Hangzhou Wahaha Hongsheng Beverage Co., Ltd. donated 10 million yuan to the Zhejiang Provincial Charitable Federation to establish the “Fuli Charity Fund,” which is dedicated to providing financial assistance to impoverished college students.

　　Help those in distress and step forward bravely.

　　In August 2006, Mazhan Town in Wenzhou was directly hit by Typhoon Saomai. Zong Qinghou immediately instructed the company to launch an emergency relief effort, “seizing” 10,000 cases of purified water from orders across the country and loading them onto trucks overnight for delivery to the disaster-stricken area of Mazhan. As Wahaha employees handed bottles of crisp, pure drinking water to the affected residents, the locals sincerely thanked Wahaha for promptly relieving their most urgent needs.

　　In early 2008, southern China was hit by a severe ice and snow disaster. Immediately, Wahaha Group donated more than 2.91 million yuan to help governments at all levels and disaster victims get through this difficult time.

　　After the Wenchuan earthquake in May 2008, Wahaha overcame the challenge of having two of its production facilities damaged by the quake. Working overtime and putting in extra effort, the company promptly sent relief supplies to the disaster-stricken areas. In total, it donated more than 15 million yuan in cash and goods to the affected regions. Moreover, Wahaha proposed adopting 500 orphans collectively, providing them with care and support until they graduate from university. The company also pledged to create 1,500 job opportunities to help displaced residents find employment.

　　After the earthquake struck Yushu County in Qinghai Province this year, rescue efforts were extremely challenging due to shortages of tents, food, and water. Upon hearing news of the earthquake while on a business trip, Zong Qinghou immediately made a phone call to instruct the Xining branch, located in Qinghai, to promptly arrange the shipment of purified water and eight-treasure porridge to the disaster area.

　　“Running a business means taking responsibility for society.” While growing and strengthening his company, Zong Qinghou always kept in mind those who were in need of help.

　　Do a good job in energy conservation and emission reduction, and protect our green mountains and clear waters.

　　We want both mountains of gold and silver as well as clear waters and green hills.

　　Zong Qinghou has consistently said—and consistently acted upon—that Wahaha’s development must never come at the expense of the environment or the interests of future generations.

　　Since many Wahaha factories are located in underdeveloped, remote, and impoverished regions with lagging economic development and poor infrastructure, many of these areas lack public wastewater treatment facilities. Faced with this situation, Zong Qinghou has always been keenly aware of the need for strict standards. Every time he invests in a new factory in a particular region, he invariably allocates millions of yuan without hesitation to build environmental protection facilities such as wastewater treatment systems, proactively taking the lead in environmental protection efforts.

　　Currently, Wahaha has an annual production capacity of over 13 million tons, making it a true energy-intensive enterprise. To achieve the government’s energy consumption reduction targets and further enhance energy efficiency and conservation, Zong Qinghou has taken a systematic approach by strengthening institutional frameworks, assigning clear responsibilities, increasing investment, and promoting technological innovation—doing everything possible to save energy and reduce consumption.

　　The recycling of cooling water is one particularly significant issue. Previously, the cooling water used to bring products from 80°C down to 40°C was simply discharged, resulting in a massive waste of water resources every day. However, after the retrofitting, this cooling water is cooled in cooling towers and then filtered through a two-stage intelligent filter before being reused in a closed-loop system. Since the implementation of this retrofit, the results have been highly positive: not only does it fully meet the cooling requirements for the products, but the entire group can also save up to 12 million tons of water annually. Moreover, because the retrofit process employs closed-circuit cooling towers for temperature reduction, it has eliminated the electricity consumption previously required for ice-water-based cooling of chillers, saving an additional 5 million kilowatt-hours of electricity each year. Furthermore, by recovering and reusing condensate water, the project has significantly reduced both coal consumption and emissions of waste gases, achieving multiple benefits in one go.

　　Continuously optimizing production processes and ensuring quality control from the very beginning of process design are fundamental to energy conservation and consumption reduction. To this end, companies incorporate energy-saving and environmental protection requirements into all stages—including the design of new project construction plans and the bidding for equipment and materials. In terms of design, they emphasize the economic efficiency and cost-effectiveness of equipment configurations, striving to achieve optimal results.