Annual Meeting of the China Outbound Forum Held in Sanya
The Second Meeting of the China Outbound Forum was held on Nov. 20-22nd at the InterContinental Sanya Resort in Hainan province. The event was put on by the Center for China & Globalization and co-sponsored by China Association for International Economic Cooperation, China Global Talent Society, and Smadja & Smadja Strategic Consulting firm. It also received support from a number of public and private-sector parties, such as the Sanya municipal government and ICBC. Building on the widely-acknowledged success of its first meeting last year, the China Outbound Forum, which has become the most influential and authoritative high-level conference focused on the globalization of Chinese enterprises, held another constructive discussion on China’s outbound investment, taking “Rising to the Global Business Stage” as its main theme this year.
According to Chinese Government data, China’s outbound investment grew by 14.2% to $123.13 billion in 2014, hitting a record high. For three consecutive years, China has maintained its position as the world’s third largest overseas investor, with its outbound investment nearly matching inflows of FDI into the country. As the reforms in outbound investment management system and domestic capital market are deepened and the “One Belt, One Road” strategy unfolds, China’s outbound investment capacity has been significantly expanded and become a key engine for its industrial upgrading and economic growth. However, compared to developed countries such as the United States and Japan, China remains a laggard in terms of in terms the outbound investment stock. But given that it is now the second largest economy in the world, China has great unfulfilled potential with respect to overseas investment and the globalization of its business enterprises.
Against this backdrop, the Second Meeting of China Outbound Investment Forum was held, gathering over 300 business executives, government officials and scholars. By holding in-depth discussions on Chinese business enterprise globalization in 16 separate sessions, the meeting explored a great variety of issues, including new opportunities, challenges, and strategies for the globalization of Chinese enterprises.
Over 300 attendees exploring new strategies for globalization of Chinese enterprises
HUANG Mengfu, Vice President of the 11th CPPCCnational committee, Honorary President of the National Federation of Industry and Commerce
LONG Yongtu, Former Vice-Minister of Commerce, Former Secretary General of the Boao Forum,Chairman, Center for China & Globalization
ZHANG Qi, CCP Secretary of Sanya, Hainan Province
WU Jianmin, Former China’s Ambassador to France, Vice Chairman of China Institute for Innovation and Development Strategy
CUI Mingmo, President at the Chinese Association of International Economic Cooperation (CAFIEC)
WANG Huiyao, President of Center for China and Globalization, Counselor to the State Council
Claude SMADJA, President, Smadja & Smadja, Switzerland
Moderated by CCG President Dr. Wang Huiyao and Smadia & Smadja President Claude Samadja, the opening session featured speakers were:
Huang Mengfu, Vice President of the 11th CPPCC national committee, Honorary President of the National Federation of Industry and Commerce
Long Yongtu, Former Vice-Minister of Commerce, Former Secretary General of the Boao Forum,
Wu Jianmin, Former China’s Ambassador to France, Vice Chairman of China Institute for Innovation and Development Strategy
Cui Mingmo, President at the Chinese Association of International Economic Cooperation
On behalf of the host city, Zhang Qi, CCP’s Secretary of Sanya, extended his welcome to the distinguished guests from all over the world.
Unlike last year’s gathering, the second Outbound Investment Forum arranged its first plenary session as a panel discussion. The theme of that discussion was “China as a global investor: accelerating and broadening the trend.” Long Yongtu, the moderator, told the audience that he believes Chinese companies will inevitably seek to expand globally. However, they have only just started going global and are facing mounting challenges in talent recruitment, risk management and overseas business operation. To build on the current globalization momentum, Chinese companies should improve their business decision making and increase economic and social benefits. They should also capitalize on the “One Belt, One Road” initiatives to expand their investment abroad while further integrating in local society and fulfilling their corporate social responsibilities. Other panelists included:
Cui Mingmo, President at the Chinese Association of International Economic Cooperation
Sun Yongfu, former head of the Department for European Affairs, MOFCOM
Tang Xiuguo, President of SANY Group
Wang Chaoyong, Founder Chairman & CEO ChinaEquity Group
Qian Jiannong, General Manager of Fosun Tourism and Business
Shen Jiajun, Vice President, CSR Corporation Limited
Sixteen sessions examine new opportunities and challenges for Chinese enterprise globalization
The Second Meeting of China Outbound Investment Forum comprised six plenary sessions and 10 parallel sessions, respectively, addressing different issues in the globalization of Chinese enterprises, such as:
◆China’s rising role as a globalinvestor: Accelerating and Broadeningthis trend The “one belt, one road” initiative: What it means in terms of newopportunities
◆Sino-Foreign partnerships: What createssuccessful, win-win combinations?
◆Looking at the drivers for Chineseinvestment in the United States
◆How China is reshaping the globaltourism industry
◆China as a partner for the “Made inIndia” policy
◆The European attraction: What comesnext?
◆Developing more cost-efficientfinancing channels for outbound expansion
◆Built by China: becoming a globalinfrastructure player
◆The increasing role of Chinese privatecompanies in going global: Reshaping the overall picture of China’s outbounddrive
◆Adjusting to new market trends inAfrica
◆How the Trans-Pacific PartnershipAgreement could impact the outbound drive of Chinese enterprises
◆“Buying the world”?: How Chineseinvestors can address obstacles and resistances to their internationalexpansion
◆China’s private equity: fast track forglobalization
◆Building the international brand valueof Chinese products and services
◆How China’s outbound drive is beginningtoreshape the global business landscape
A number of senior business executives were invited to the sessions to share their perspectives and experience in global expansion, which provided highly useful and encouraging strategic inspirational and practical strategies for other Chinese companies to go abroad. Those who spoke at the sessions included:
Chen Feng, Chairman, Hainan Airline Group
Tang Xiuguo, President of SANY Group
Wang Chaoyong, Founder Chairman & CEO ChinaEquity Group
Qian Jiannong, General Manager of Fosun Tourism andBusiness
Qiao Jian, Senior Vice President of Lenovo Group
Wang Guangfa, President of Fazheng Group
Shen Jiajun, Vice President, CSR Corporation Limited
Chen Jianzhou, Senior Vice President, ZTE Corporation
Xu Muhan, Deputy General Manager China NationalTravel Service Group (HK), Executive Director ChinaTravel Service International Investment Hong Kong
Gao Hongbing, Vice-President Alibaba
Yang Xiaozhong, Vice President, TrinaSolar
Dai Zhikang, Founder & Chairman, Shanghai ZhengdaGroup
Zou Ming, Chairman and Editor General, Phoenix New Media
Stanley Shen, Managing Partner, Leadway
Hu Bo, Chairman of Ciming Health Checkup Group
He Mei, Chairman, Overseas & Consulting
Henry Zou, President, Henry Group
Yang Lin, Partner, Yingke Global
Wang Shaofeng, President, Shanghai ChinaConstructionOverseas,DevelopmentCo. Ltd.
Zhang Huarong, President & CEO, Huajian Group
Zhou Wei, President Assistant MinMetals Group Corporation
Liu Zhengyu, CEO, Guangzhou Sky-Tech Cloud
The meeting also served as a platform for sharing international business resources and exploring cooperation opportunities. It has thus attracted many representatives from foreign diplomatic and business missions in China to present key information and address questions regarding investing in their home countries. These individuals included:
Michel Malherbe, Belgium Ambassador to China
Dolana Msimang, South African Ambassador to China
Sailas Thangal, Consul General of India in Guangzhou
Erfa Iqbal, Commercial Counselor, Embassy of Pakistan in China
Syed Munir Khasru, Chairman, The Institute for Policy,Advocacy and Governance (IPAG), Bangladesh
Yew Sung Pei, Assistant CEO, International Enterprise Singapore
Mark Duval, President, The American Chamber of Commerce in China
Stephen Phillips, Chief Executive Officer, China-Britain Business Council, United Kingdom
John Conlon, Director of Asia Pacific Investment Development Agency, Ireland
Harald Fuchs, Director, China Frankfurt RheinMain, Germany
Other business executives who also participated in the discussion about China outbound investment and Chinese company globalization included:
Sun Yongfu, Former Director, Department of European Affairs, Ministry of Commerce
Lu Dong, Chief Representative of European Union Digital City OASC (China), Executive Chairman of theEuropean Federation of Chinese Entrepreneurs
Yan Lijin, Co-Chairman, China-Pakistan Economic Corridor Council
Ma Jun, Vice-President of International Promotion Association for Chinese Multi-national Corporations of China
Shi Yanhua, Former Ambassador of China to Luxemburg
HONG Qing, President of ICBC’s Mumbai Branch
Henri Giscard D’estaing, Chairman & CEO of Club Méditerranée
Vittal Mallya, Country Head –China, Larsen& Toubro, India
Abhinav Mayank, Vice President,Welspun Energy PvtLtd., India
Sreedhar Pothukuchi, Vice President –Business Development,GMR Group,India
Chen Xinhua, President of Statoil China
Li Siyan, Vice-President of Laureate InternationalEducation Group China Business
Li Lei, Vice President and President of North Asia, Saudi Arabia Basic Industries Corporation, Saudi Arabia
Senior consultants from international investment banks, accounting firms and law firms as well as scholars also provided insightful recommendations for Chinese companies going abroad. These individuals included:
Zhang Zhihao, Vice President, General Manager of Enterprise and Finance Institution Department of Standard Chartered Bank China
Zuo Xiaolei, Chief Economist of Galaxy Securities, Hong Kong
Mao Jiangqi, Product Expert, Industrial and Commercial Bank of China H.O. Global Banking Department
Kevin Lu, Managing Director, Head Investment Solutions Asia, Partners Group, Switzerland
Philippe Metoudi, Managing Director, Alfa Sec AdvisorsPte Ltd, Hong Kong
John Jullens, Partner, PwC Strategy & USA
Ge Ming, Senior Advisorof Ernst &Young Huaming AccountingFirm
Simon Bevan, Chairman of China Advisory Services, Advisory Partner, Grant Thornton China, United Kingdom
Eric Zhang, Executive Partner, Chan& Zhang LLP
Liu Hongchuan, Senior Partner of Broad & Bright Law Firm
Li Liyuan, lawyer, Yingke Law Firm
Li Likai, Founding Partner of Beijing Guangsheng LLP, Managing Partner of EnnoHubTechnology
David Tang, Asia Managing Director, K&L Gates, USA
Sebastian Vos, Partner, Head of Public Policy and Government Affairs, Covington, USA
Tim Stratford, managing partner, Covington & Burling LLP Beijing
Scott Anthony, Head of the Silicon Valley office of Covington, USA
In addition, prominent experts and scholars from government and independent think tanks, strategic consulting organizations and academic institutions were among those who attended the meeting. These individuals included:
Prof. Chi Fulin, President, China Institute for Reform and Development
Tang Min, Vice President of Center for China and Globalization (CCG), Counselor to the State Council
Clyde PRESTOWITZ, President, Economic Strategy Institute, USA
Yael Smadja, President, Smadja & Smadja America
Joel Backaler, Associate Vice President at Frontier Strategy Group
Ivan Cheah, Managing Director, Centric Advisers
Fanny Zhang, Board Director of Spencer Stuart, USA
Liu Haiying, Managing Director, Spencer Stuart Asia Pacific
Zhao Bosong, President, John Hopkins Medical Research Institute
Chen Wenjie, President of CTS Academy for Tourism Industry
Lu Jinyong, Professor of Foreign Trade University, Director of FDI Research Institute
Zhang Lingyun, President of Academy of Tourism Development of Beijing Union University
On CCG side, Vice President Frances Sun, Secretary in General Dr. Mabel Miao Lu, Director of “One Belt, One Road” Institute Huang Rihan and Deputy Director Chu Yin attended the meeting.
CCG releases ranking lists of top globalized Chinese enterprises
As one of the most influential independent think tanks in China, CCG has, for two consecutive years, compiled and published the bluebook report on the Globalization of Chinese Enterprises. The book, published by the Social Science Academic Press (China), thoroughly reviews and insightfully analyzes the current situation, trends, and challenges in the globalization of Chinese enterprises using extensive data analysis and case studies. It also identifies key implications for future strategies and provides policy recommendations.
Based on CCG’s own data and publicly-available information, the new Blue Book Report for 2015 puts forward several ranking lists of Chinese enterprises going global. Two of these lists rank the “Top 50 Chinese Companies Going global” and the “Top 50 e Emerging Chinese Companies Going Global.” The firms in these lists are meant to serve as role models for other Chinese businesses undertaking outbound investment and global expansion. Some of them, such as Sany Group, CSR Corporation Limited, Lenovo Group, China National Travel Service Group (HK), ZTE Corp., Wei Chai International, and Fosun Group, sent representatives to the awarding ceremony on Nov. 21st and delivered presentations. Following the ceremony, Long Yongtu led a discussion with the awarded outstanding entrepreneurs about future strategies for Chinese enterprise globalization.
The China Outbound Investment Forum, as a high-level international conference dedicated to the issues of Chinese enterprise globalization, provides extensive international perspectives and deep strategic thoughts to engage and inspire multiple parties. It is not only a platform for the exchange of ideas and views, but also a venue for policy proposals and business networking. Its benefit to Chinese companies that are expanding or planning to expand their business globally has been widely-acknowledged both at home and abroad since its first meeting last year. The Forum will carry on in hope to provide more effective and practical guidance on Chinese enterprise globalization.
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