Over the 70 eventful years since its founding, the People’s Republic of China (PRC) has caught the attention of the world with its significant achievements, developing into an independent, prosperous and strong country. Her children are pursuing the Chinese dream of the great rejuvenation of the Chinese nation to write a new chapter in history.What China did in the last 70 years is surely a key to understand the next century: From the Great Leap Forward to Household Responsibility Act to Socialism with Chinese Characteristics, China has been the center of economic and political experimentation for hunting welfare society.Let us put the result of experimentations to find the truth from the facts into a simpler context: Chinese macro-economic transformation and growth performance since the opening-up from the 1980s will be recorded in the economic history as an unprecedented miracle by all parameters. We are not only talking about taking a billion people out of the persistent risk of hunger and poverty or growing ten percent for more than three decades without any structural risk of high and volatile inflation. We will also not dig into deep how such a gigantic geographic space bigger than Europe managed to fund such a fast welfare enhancement without external debt accumulation. We will also not investigate miraculous urbanization. We will not describe how Guizhou enjoys the fruits of 21st Century architectural capacity of humanity to enjoy a much better life in the middle of a very difficult mountainous geography. As we will not address how come China managed to complete a highway and railway network, which looks like metro maps of globally important cities such as New York, London or Tokyo when drawn in a nationwide scale. Will we write about the transformation of schools and hospital into this massive change in the way of daily life for average citizen? No. We will not mention how millions of Chinese students went abroad or how many foreign students came to China to look for new capabilities to cement their readiness for the future.What is the reason for this preference? Why do we miss out so many hot topics in such a critical time? Why don’t we just place nice words to tell a lot about these extremely successful occasions to fill this article with a strong content? We have a good reason for that: We are a late comer to China and those parts of transformation can best be documented by the development experts who had a chance to be a part of those initiatives to come to Beijing in early 1980s. That time was a critical time where most of the successful initiatives that has created the current success were being designed, experimented and developed. Surely, those times were desperate times when there was urgent need to address extremely desperate questions with resilient answers with major survival risks. There were massive urgency for problems arising from extreme population growth, the risk for hunger and permanent risk for poverty where resources were not available to figure out day to day logistics of production, delivery and consumption. Hard word was not enough to discover magic solutions to difficult problems. At those times, local, regional and international experts were trying hard to find solutions by all means to issues begging for funding. There was also a desperate need to manage the change in a way to use all the resources available without leaving no one behind and to become open for international cooperation. Maybe an attitude to find a cat to catch a mice without paying any attention to the color of the cat for those times. It became common practice to allow any cat, be it black or white, to try to catch the mice under any circumstance. This has become a symbol of Chinese pragmatism to address any question that has been waiting for a solution for some time. Many experts played critical roles to institutionalize this pragmatic approach along the years.We had a chance to meet some of those experts in different academic activities around China and enjoyed listening to their anecdotal documentation of from where China began creating direct solutions to day-to-day problems citizens suffered from reaching their optimal welfare. They took our attention to how ordinary people contributed to the massively successful leap-frog performance from hunger prevention to poverty reduction to a modestly middle income statues. There were so many bravery stories. There were so many heroes. There were so many unnamed, unrecorded and unnoticed as many volunteered to stay silent not to ask for anything to play major roles for the success of pragmatism. We surely appreciate their contribution not only to China but to the general welfare of the world as well.In order to make a long story shorter, let us sum up: What we have in mind to write addressing the 70th Birthday of the PRC is corporatization! We want to pay a special attention to using firms or company formation as the main framework just from the initial phases of the beginning of this miraculous macro-economic performance that China proved attainable for many other emerging countries. We believe in one famous saying to mention that one hand is quite while two hands can make a big noise. Two hands in this saying refers to the foundation of a company to deliver a particular target of being served or being developed and kept as developed in the long run. It refers to the institutionalization of any economic progress. It sets aside the chance factor in a welfare gain.To make our point clearer, let’s make a small journey into history. Let’s take a look at what archeology and anthropology are telling us about initial social experiments of coming together (s). Let us go back to the roots of company formation from a historical perspective. It is a long history with so many relevant lessons for all of us.Any one remembers the first ever firm or company designed and developed in the history? Put your bets for a second and let us share one news from Minor Asia with you. According to the recent archeological excavations and findings in and near the Gobeklitepe site (Near Şanlıurfa in South East Turkey); the earliest settlement of human beings in joint accommodation was set 12,000 years ago. Humans “came-together” for spiritual activities in Gobeklitepe and that moment was the first ever origination for the rules of conduct “to live together” for a common destiny of humans for a shared future. Gobeklitepe was the first ever experiment of how people can come together beyond their family connectedness and how they can design rules of leaving together in a sustainable and reliably resilient methodology. It was the Place any societal formation beyond family ties were placed into experimentation. Our first ever gatherings with so called foreigners or people somehow unknown to us totally or partially.Our argument is simple from Gobeklitepe findings: the demand for a corporate or a firm originated from those roots or from earliest experiments to come together for a common cause and to design, develop and operate a better way of life beyond individual’s time-restricted survival capabilities. Any guesses what life expectancy level was 12,000 years ago? Maybe, nowhere close to current levels but it is now proved that in very early stages, there was an open desire among humans to come together for a shared future and to somehow fight for a shareable destiny all together against the dangers arising from the un-trustful natural causes or other dangers surrounding the living spaces. Surely, it was an inclusive strategy as well. Gobeklitepe was not singular but multi-cultural according to current discoveries from the Site. Gobeklitepe surroundings kept changing constantly. Anyone from the near surroundings are given somehow access to the common grounds in one way or another. Consequently, the place was the ideal area where more than personal capacity was needed to serve all participating in spiritual activities: An initial demand for company formation. More than the origination of corporatization, the new joint way of life beyond collecting and hunting to create the first ever communal living was the source of the demand for “money” but is beyond the coverage of this particular note. But, let us share some short insights.Beyond the coinisation of money, corporatization was a discovery of Lydian Civilization. They surely invented not money but coins as the new norm of money as Sumerians, Egyptians and Chinese all used differing tools as money historically. Lydian innovation of coins as the new form of money played an amazing role in the creation of “shops” as the earliest institutional experimentation of “companies” in the form that we have still been using in the age of digitalization: A corporate is a joint stock company to buy and sell anonymous goods and services just for the sake of profit maximization. Since Magna Carta, there has been a gradual institutionalization of property rights to create welfare through firms and especially in the last three hundred years, all the welfare societies are the masters of company origination, design, development and operation. We can make a simple argument that without a strong and sustainable corporate capacity, it will be extremely difficult to sustain any economic progress in the long run. Corporatization is the optimal way of sustaining institutionalization as a prerequisite for sustainable long run welfare enhancement.Our argument is becoming clearer now: Our understanding of the miraculous Chinese macro-economic performance relies on one main success strategy as the massive corporatization initiatives. The World never before experienced in such a short period of time to realize such a sharp success story in terms of company creation. What we see as the answer to how come China managed a transformation no one else reached anywhere close to this level is Chinese approach to firm origination, firm design, firm development and firm operation.It was not painless to discover optimal design of firms and support rapid corporatization: Massive layouts and unprecedented mergers and acquisitions have been implemented hurting many citizens starting from 1990s. We still observe efforts of merging inter-related companies. Such a massive dynamic and pragmatic approach to corporatization is giving China a capacity no other emerging countries have: Corporate China is fundamentally profitable. Why?There can actually be open clues to understand why China is a country where stare owned enterprises are profitable and are not a burden on central government budgets to lead issues such an original sin or crowding out as typical developing country problems: Please refer to periodical re-structuring efforts from the highest levels for any company that can possibly operate with higher profits. During the periodical overviews and periodical valuation of performances, if the decision makers can figure out a more profitable structure for any company or group of companies; a reform goes ahead almost spontaneously and instantly to give way for a brand new company of a mergers of companies or directed and managed acquisitions of interconnected companies. This short of decision making in China is slower to no other country in this world. This is a uniquely fast and sometimes very fast decision making strategy where the main aim is to figure out the optimal structure of any given company that is responsible to fulfill a particular societal responsibility. Companies are meant to serve so called “remnin” in China. And, they are supposed to deliver this responsibility with a sustainably profitable way.Companies, even State owned companies are extremely profitable against gigantic sizes with unprecedented scales of economies. Profits are supporting capital markets deepening up with massive dividend payments. Also, public finances in China compares to no other emerging countries with massive fiscal space for risk management or resolution. This should be one reason why there is no crowding out or original sin problem for Chinese renminbi. The backing of Chinese renminbi is surely the capacity of corporate China with an unprecedented scale to sustain their activities with profitability to share with individual investors as dividend payments. They pay taxes as contributions for massive structural fiscal surpluses. Isn’t this the real backing of any fiat currency after the collapse of commodity standards from 1972? What else can be a better identification for the real backing of renminbi? When China has got so many gigantic corporates with a clear track record of profitability which is regulated and supervised contemporaneously to sustain profits to a certain extend and make sure keep paying taxes and dividends, how come there can be any lack of unmanageable economic re-structuring tools when there comes a time to re-direct the economy from one direction into the other? All the countries need this space. A fiscal space that can be used under the economic stress. A fiscal capacity to spend when no one else within the economy are dare to spend. An ammunition that gives a massive opportunity to trigger economic sustainability in hard times. When the time comes to spend all the water that has been collected while raining. Is there any other emerging country in a better position in terms of this capacity?Let us underline one more thing as we get closer to the end of this article: what happens to the research and development activities for companies with Chinese characteristics? Should we assume simply that state administered innovation capacity is much more creative than the generally accepted free liberal markets micro and macro structures? Maybe, we should not go that far. Why? Because socialism with Chinese characteristics relies on the fruits of market economy price discovery mechanisms. What China uniquely managed is to create a space for market economy without downgrading the main economic governance and without jeopardizing the innovation capacity. Innovation matters in the big picture because, it brings productivity gains in production, distribution and consumption. Every productivity gain is a prerequisite for additional profitability. Profit means more taxes or more dividends it not both. Underlying backing of a currency is, from this perspective, the profit generating productivity gains to lead more profits for being shared with investors and the state. Corporatization is one of the best enhancer for the real backing of a national currency, when valued from this picture. Long term welfare enhancement is best guaranteed with profit generating companies to spare enough resources for research and development for seamless innovation. It is a positive cycle that supports the strength of macro-economic well-being as well.Next time you visit Beijing, please take a very long walk in Chang’an Avenue through Tiananmen Square. As you get closer to the Beijing Headquarters of the People’s Bank of China, you will see many towers. Each belongs to another successful Chinese corporate’s headquarters as the real backing of renminbi. The same observation is valid for Shanghai, Guangzhou, Shenzhen, Hangzhou, Chongqing and many other mega cities all around China where you see skyscrapers representing just another profitable company with mega balance sheet full of profit to share with shareholders and the People’s Republic of China central and local budgets as taxes. This is not a common sight seeing in other developing countries. Corporate structure in China is much closer in China to developed countries, instead of developing countries.What is our final stake? Where do we want to bring this discussion? How we can connect these opinions into the current global financial conjecture? What is the relevance of our discussion to international monetary and financial systems?We believe that the root cause of the current trade war climate has got nothing to do with the international trade. Again, extensively gossiped currency wars will have nothing to do with currencies. If you really want to understand why we have a new economic contest for this decade, treat it as arising from contestable innovation capacity of corporatization. This is a war of innovative corporate capacity skill hunt. This is a war for research based innovative corporatization to increase corporate profits for higher dividends and for higher tax contributions for fiscal support. This is a war of contestable corporate capacities; and few to do with trade, investment or currencies. This is a war to figure out before everyone else what the next cutting edge technology will be to generate most profit to distribute highest dividends and taxes to the relevant governments. It is a sort of contestable corporatization to figure out the firms of the next century to produce goods and services with the most profitable way to sustain welfare society standards and to keep fighting in the direction of becoming a welfare society.When you take out the hype of trade war terminology and replace it with “contestable” terminology, we come to competition, which is generally accepted as the best form of market structure: Congratulations to the PRC’s 70th birthday and thank you for making the world a more competitive economic place. This will surely be remembered. This will surely lead to a more optimal equilibrium for all the citizens of the world. This will support more investment on research and development. This will lead to more innovation. This will lead to more dividends and profits. This will lead to funding surpluses to export to those parts in need. This will surely lead to a better world of all the citizens of our worlds, not for only tomorrow or next month but for the following centuries as well.