Investor dedicated to knowing business

A design sketch of the campus for Schwarzman Scholars at Tsinghua University in Beijing.[Provided to China Daily]

What are your business strategies in China amid a slowing economy?

As long-term investors, we see great opportunities to invest during periods of slower growth. For private equity and real estate our strategy is to be patient and be highly selective in the midst of a slowing and generally more challenging environment in China, with a focus on sectors with long-term secular growth prospects－are as such as technology/IT services, healthcare, commercial real estate, and retail.

We also believe that as the scale of companies continue to get larger in China and as Chinese companies become more global, that there will be a continued need for operational expertise. We bring a very differentiated set of capabilities along with our capital to support Chinese companies in their growth.

What's the greatest challenge for your business in China? How do you deal with it?

In China you have to make sure you are in the right sector because it used to be everything in China was growing, and now it is no longer the case. Certain sectors are growing very rapidly and are great to be in; other sectors, like steel, are not.

We, for example, are in the shopping mall business, among many things that we do. Our shopping mall business oriented to the middle class in China is growing very rapidly. Totally unlike what people in the West think is happening to China. We are growing approximately 15 percent a year in terms of same-store sales. In other words, more customers come in and buy more things. That's a very strong growth, so that's a good thing to do. There are a variety of areas in China that are not very healthy, but then there's the medical business, which is doing very well. So, you have to be careful and focus where you want to be active.

Tell us about your good or bad investments in China. And what advice can you give to other investors?

We have invested selectively in China and will continue to do so. But whether we're putting capital to work there or anywhere else, I always approach investing as a doctor would-"do no harm. "The first rule is don't lose money. And even with as lowdown, it's important to remember China is still growing at 2-3 times the rate of the United States-for example, our fund sown approximately 30 shopping malls that cater to the middle class in China, and we have seen a year-over-year increase in sales there of 16 percent. So opportunities are out there if you're smart and selective.

Why did you set up the scholarship program at Tsinghua?

Since 1500, the last 16 times when a rising power has challenged an established power, the result has been war between the two. That out-come is to be avoided at all cost.

The probability of successfully avoiding such conflicts has been very low in history, but I want to see that change by having future leaders around the world going to China, meeting the leaders of China, having mentors from Chinese society and the student's are as of study, traveling to different parts of China, as well as studying a curriculum that involves China.

When people know how other systems work, and when they know people there, their ability to interpret what's going on in that country is in finitely better.

And if we can establish those types of links with super achievement-oriented younger people who take their places in their own society, then we can go a long way to change the outcomes between China and the outside world.