"Business is no different than a sport," Welch said. "The team that has the best players wins." One retail example of a winning business Welch mentioned was Wal-Mart. "No one knows their customers better than Wal-Mart."

China's economic boom is a competitive threat to the United States, but at the same time, the country offers opportunities for some US business, particularly retailers like Wal-Mart that are poised to open hundreds of stores in the country, he said.

On management, Welch said that it's best to be as honest as possible with employees. "If you manage 10 people, you have the obligation to let everyone who works at your place know exactly where they stand," he said. "A company, to make the right decisions, needs healthy debate."