2013 APEC CEO Forum China in Transition: New Leadership, New Prospects (Day One)

2013 APEC CEO Forum

China in Transition: New Leadership, New Prospects

Sheraton Dongcheng Hotel, Beijing

13-14 July 2013

 

Please Note: The bullet points are a faithful recount of what panellists and speakers said during the course of a nine hour conference. In some cases, however, the speakers were simultaneously translated from Mandarin to English and then recorded. There are no doubt flaws in reporting. Instead of a faithful transcript of the first day, this post provides an overview of the major issues.

 

For more information on the conference, visit here: http://www.apecchinaceoforum.com/

 

Day One

Welcome Address by Mr. Wan Jifei,
Chairman, China Council for the Promotion of International Trade

。        Greetings and formal welcome

。        Importance of APEC & role in business

。        Theme of new leadership, new prospects – introduction of agenda

。        2014 China host of APEC – series of meetings – CCPIT organisers

 

Keynote Address by Dato Timothy Ong,
Forum Co-Chair , Former Economic Development Minister of Brunei, Chairman, Asia Inc Forum

。       November 1989 – birth of APEC in Australia. Now 24 years old.

。       Trade w/in region increased 7-times; Barriers to trade reduced; Average tariffs from 17% to 6%; Non-tariff barriers reduced significantly

。       3.5% growth of APEC countries vs. 2.9% of non-APEC companies; Dynamic growth of many such as China

。       Region faces new challenges

 

“China in Transition: New Leadership, New Prospects”
Keynote Address by H.E. Zhang Baowen,
Vice Chairman,the Standing Committee of the National People’s Congress

。       Deep impact of economic crisis and sovereign debt crisis in Europe continuing

。       Worldwide long term economic recovery ongoing

。       China has contributed to regional and global growth; China’s GDP growth exceeded 10% for ten consecutive years since entering APEC; #2 economy in world; #1 exporter & trader in world

。       Livelihoods and living standards have improved

。       Industrialisation, urbanisation and modern agriculture encouraged

。       High tech will be embedded into traditional industry

。       Economic development a main priority for the new government; Economy will be stable

。       Economic priorities (followed by reciting of numerous government statistics)

Stable growth – GDP 5.7%. Moderate rates encourage livelihood, smooth operations of companies

Economic restructuring will play a vital role

Emission of major pollutants will decline continually

Overall price control – CPI will be 3.5%

Over 9 million new jobs; Unemployment will be controlled below 4.6%; Population growth will be capped below 0.5%; Building of new home

。       In 2014 China host of APEC meeting and important related meetings. After Olympics and Shanghai Expo a lot of attention on China.

。       I hope we can have frequent cooperation with the business community

 

Keynote Address by H.E. Mr. Jullapong Nonsrichai, Vice Minister of Foreign Affairs, Kingdom of Thailand

。       Served as Ambassador to China from Thailand 10 years ago

。       Opportunities for cooperation between ASEAN and China – now strategic partnership between two celebrating 10 years

。       Code of conduct in South China Sea – spirit of cooperation important

。       Challenge – make sure growth is inclusive, with opportunity for all. Any business irrespective of size can benefit from growth of global value chain

。       Create a seamless regional economy. Ensure linkages between countries. ‘Connectivity begins at home’ – Thai government investing US$66 billion in infrastructure over next several years

Seaports, custom border checkpoints, high speed trains

Road and rail link connecting ASEAN countries to Southern China via Thailand; Can connect from Pacific to Indian Oceans

。       Thailand has returned to economic stage – ‘Thailand is open for business’

Invitation to government and business to partner with Thailand

China is our close friend and ally; We share a long history and culture

Thailand’s second largest trading partner

#1 tourists to Thailand; Now 9 offices in China

。       ASEAN and China are natural partners – Room for further growth

 


 

DIALOGUE ON INNOVATIVE GROWTH: FROM QUANTITY GROWTH TO QUALITY GROWTH
How do we create a culture that promotes creativity and innovation? How to secure a quality development by way of improving innovation, increasing manufacturing effectiveness and restructuring? After the round of fast economic growth in China, how to balance the growth from quantity to quality?

Moderator: Zhang Yong, Deputy Director, External Relations Department, People’s Daily. Discussion Participants:

  • Wei Jianguo, Vice Chairman & Secretary-General, China Center for International Economic Exchange
  • Chen Quansheng, Counsellor,the State Council
  • John Russell, Founder & Managing Director, North Head
  • Richard C. Koo,Chief Economist , Nomura Research Institute

。       Innovation is a destructive process – creates opportunities but also destroys old patterns, ways of doing business

。       CHEN

Top 3 innovative companies? If I name them many will question my remarks

–            Broad – refrigerators

–            Lenovo – Computers

–            MinMetal – an old SOE

Ministry of Railways is also innovative; Developed via international cooperation, as well as business-government cooperation

。       WEI

Innovation in China at important juncture; 18th CPC conference to encourage innovation

–            Equal rights – no matter who you are, so long as in PRC

–            Equal rules – apply same to all (college entrance exams, as example)

–            Equal opportunity

These ‘Three Equals’ will help drive innovation in China; Huawei enjoys these three equals. Institutional innovation critical

1,770 rights have been decentralised across government

Government reform centres around important issues

–            Must guarantee national secret and national security will not be damaged

–            Follow the laws and regulations

Market economy with Chinese characteristics

。       RUSSELL

Enormous changes across all industries – innovation coming from within the market

–            Example: Traditional low-tech sector – Paper. In 1999 10,000 paper mills but low demand for paper; Chinese citizen uses 1/4 of what a German uses; 1/3 of an American or Australian uses. Paper growth enormous. Five year plan to shut down 3600 mills and replace with 100 enormous mills – greater output in 100 than in 3,600. Lower pollution and higher quality. China issuing more patents in paper than America or Europe. Fast pace of market-driven innovation

–            Example: High tech industry – Energy. State Grid

。       KOO

Chinese name, Japanese birth, American citizenship

Competitiveness depends largely on exchange rate – Japan like that for 4 years. Yen so strong companies could not compete. USA in early 1980s with high exchange rate companies could not compete

Innovation depends on stage of economic maturity. Japan in 1950s did not need to innovate as it was copying. Then higher labour costs forced Japan to innovate

China going through the same now – 2-3 years ago unlimited labour no need to innovate. Now high employment rates forces innovation. Cannot compete on price alone due to higher wages

China long history of innovation – paper, gunpowder

。       CHEN

Some say SMEs are major innovators in China – that’s not true

Innovation requires investment – high risk, high return. SMEs cannot bear risk and investment

Pesticide called 666 – US$666,000 invested and 666 trials made

In China, institutional innovation most important due to requirements of capital and manpower – and ability to afford risk

In Silicon Valley, Stamford University introduces the concepts and then lawyers and PR firms help reduce the risk. PE firms investment. That’s why SMEs can develop new ideas because of shared risk across organisation.

–            Role of PE firms in innovation – discussion of limited liability. On left a cliff and on right a high mountain. A narrow, golden road straight ahead. Must work hard to stay on track

。       WOO

Near zero interest rate but no growth, no innovation

Concern over bubble – asset price collapse but liabilities remain

China doing the right thing trying to contain the real estate bubble

15-20 years to get it right before it gets old as a nation. Cannot afford a balance sheet crisis such as in the USA

。       CHEN

Innovation on low value products, like sofas or tables

。       WEI

Advanced player like USA fell down and got hurt – caused concerns for China

China needs to innovate in financial services

。       HOST

Noted that Chinese panellists discouraged by China’s growth, yet foreign panellists encouraged.

 

DIALOGUE ON GREEN FACTORY & ECONOMIC BENEFITS

“Green Leap Forward; Factories Of The Future”
How should corporations strengthen green business awareness to realize green manufacturing? How should they well balance environmental best practice input and economic output at different development stage? How to propose a short-term, mid-term and a long-term green factory building plan?

Moderator: Mu Qianguang, Vice President, Takung.com

Discussion Participants:

  • Johnny Kwan, Senior Vice President, BASF Group
  • Dr Frank-Jurgen RichterChairman, Horasis: The Global Visions Community
  • Zhang Yue, Chairman & President, Broad Group
  • Chien Ming ChengCEO, Greater China , LANXESS Chemical (China) Co., Ltd

。        QIANGUANG

–            I returned to my home village, and wondered where were the clean rivers of my youth? Sewer pipes flowed into the rivers. For our children – who will provide the clean rivers?

–            Capitals with sever haze, smoke, haze, traffic. Leading to shortened life spans. How can businesses increase green awareness and green growth?

。        KWAN

–            BASF a giant in chemicals and made many contributions. Companies need to ensure CSR

–            We consume a lot of energy and we are big emitters of pollutants. Society is trying to develop green and cleaner factories. Green development should be traceable and sustainable.

–            Today population at 5 billion – will grow to 9 billion. Demand on resources cannot continue. Today’s industrial development is using 1.5 Earths.

–            Strategic deployment of resources. Integrate Green into DNA of company – R&D, innovative production, etc

。        ZHANG YUE @ Broad

–            Shanghai Expo pavilions all had air conditioning provided by this company. We manufacture but we have to restrict usage of air conditioners

–            Green factories should have four levels

–            Emissions of waste air and liquids – must follow national standards, which many companies do not follow the standards. People think waste control is expensive

–            Products must be certified and safe

–            Energy efficiency and material usage in production. From low oil usage to reduced packaging. Reduce utilization of raw materials – car weight 1.8 tons? Can be lighter. Better heat insulation in buildings. LED lights save power

–            Service life of your products the longest

。        CHIEN @ LANXESS

–            2005 separated from BAYER – largest rubber, high performance plastics and specialty chemicals. Covering tires to drink water filters

–            Green factory is trend = there is no other way. We must guarantee survival of mankind. Without green pathway companies cannot survive

–            How do we balance economic development and green manufacturing?

–            Must sustain profitability otherwise no way to guarantee R&D

–            Tire classification system – based on noise, life, etc. Allows users to select product by efficiency. EU label directive has big impact on China’s tire industry (world’s largest tire exporter)

。        RICHTER from Switzerland

–            Balance growth and green?

–            Problems & facts: Witnessing climate change; Islands in Pacific may disappear in near future. No solution – ‘Tit for Tat’ and finger pointing. Chinese government focusing on quality not quantity

–            Solutions: Invest in technology – not abandon cars! First is top-down with government regulations (e.g., injection technology for cars led by regulations). Government could create incentives for electric cars and support infrastructure. Bottom up led by entrepreneurs – like TESLA at forefront of building electric car technology and production

–            Sustainability should be part of our business model – a systemic approach

–            Contradictions and Absurdities: Trade war linked to export of solar panels. Solar reduces energy consumption – companies involved in something useful, yet building Chinese walls around Europe.

。        ZHANG YUE @ Broad

–            Why should companies be afraid of Environmental Protection Department?

–            We recycle production material scraps – it has reduced manufacture costs

–            8 classifications of wastes, with different collectors. You have to invest in recycling

–            Employees higher awareness

–            Germany highest value exports – why? Detail focused. Western companies more attentive and now Chinese need to pay attention to details. Need to focus on quality not speed

。        CHIEN

–            Dow Jones Sustainability Index outperforms other companies

–            If you don’t follow codes you won’t survive many years later

–            Need for education with employees and local schools – start with young students (200 projects covering 100,000 students)

–            If you want success in the future you need to involve all society

。        RICHTER

–            Switzerland a world leader in green technology, but a wealthy country

–            Need to start with education and awareness

。        CHIEN

–            Need for education with employees and local schools – start with young students (200 projects covering 100,000 students)

–            If you want success in the future you need to involve all society

。        KWAN

–            Short term – Auditing and quantitative work. Identify hidden dangers. Reduce three wastes.

–            Mid-term – Expand applications to products (e.g., reduce weight of cars from two tons to one – replace metal with resins, plastics). Find new applications for existing products, such as decomposable plastics for domestic organic household waste (reduces cost of waste management).

–            Long term – Investment in new technologies to develop new products. Can take ten years to see results.

–            Team building and raising awareness across society. BASF launched ‘Golden Bee’ award to encourage sustainability and environmental awareness across companies. Must drive across other companies as a corporate citizen.

–            Chemicals can help us to live better

 

THEME PRESENTATION ON APEC CEO SUMMIT 2013 IN BALI, INDONESIA

Speaker: Mr. Amin Subekti, ABAC Executive Director 2013, Senior Vice President,PT. Indika Energy Tbk

。        APEC leaders want concrete ideas to support business environment – business is real driver of economy, employment. Partnership required to transform challenges into opportunities

。        Keep focus for many years

。        China takes over APEC leadership from Indonesia in 2014

。        Indonesia’s priorities in 2013 as APEC leaders:

–            Economic crisis has led to shift to Asia as global economic driver of growth

–            How well prepared are APEC nations to take up helm? How sustainable? How stable and integrated markets? How well prepared people with education and skills?

–            We still have an immense amount to do if we will be stable drivers of global economic growth

。        Strengthen long term pillars of economic growth

–            Develop multi-year agenda to drive infrastructure to operate competitively. $8 trillion for public infrastructure (not including private like tourism and hotels). Requires private sector investment

–            Better integrated and more stable financial markets. Poorly integrated and immature today. Have improved since Asian economic crisis in late ‘90s. High savings rates. Asia Pacific Financial Forum to help with these complex issues – investors, regulators, agencies, business to work together. To be agreed in Bali

–            Connectivity: Better connection for goods, services, people, institutions

。        Indonesia growing well but can do better with infrastructure, connectivity and more stable financial markets. Resource rich, good climate for agriculture, and young-skilled workforce

。        Provide an environment where more APEC countries can invest and share in the growth of Indonesia

。        China can only prosper with a strong and stable financial system

。        5-7 October APEC CEO Forum in Bali – strong line-up of presidents and leaders, including Xi Jinping

CONVERSATION ON INNOVATION

“Future technological innovation will mainly come from the East rather than from the West: Agree or Disagree?”

Moderator: Ms. Eunice Yoon, Senior Correspondent, Beijing Bureau, CNBC

Discussion Participants:

  • Dr. Kai-Fu Lee, Chairman & CEO, Innovation Works
  • Ji-Ren Liu, Chairman, Neusoft Group Co., Ltd
  • Chaoyong Wang, Chairman & CEO, China Equity Group
  • Tatsuo Higuchi, President and Representative Director, CEO, Otsuka Holdings Co., Ltd
  • V. Paul Lee, ABAC Representative of Canada , Managing Partner, Vanedge Capital Partners Ltd
  • Rameshbabu Songukrishnasamy, Vice President & General Manager, Honeywell Technology Solutions China

。        KAIFU LEE @ Innovation Works

–            Innovation that creates value, not Nobel Prizes. Innovation will come increasingly from the East from an IT-Internet connection

–            Start with a lean need. Develop a solution and trial on the Internet. Feedback real time online

–            Facebook: Harvard voting on photos – ‘Hot or Not.’ Then grew to more capabilities, Expanded to other colleges. It was developed iteratively over time.

–            Weibo, Tencent – developed faster than Facebook

–            When you want groundbreaking research you need mavericks like Steve Jobs. But if you want iterative innovation you want focused, process-driven, lean start-ups able to gradually refine their innovations

。        LIU JIREN @ Neusoft

–            Innovation becoming more integrated. Hard to say where it originated from East or West. China R&D of USA company?

–            Nationality of innovators? Global dispersed teams working together – makes it harder to say East or West

–            Market will be driving force for innovation. Whoever has largest internet users will drive innovation to enhance consumer experience, payment, delivery

–            If you ask someone far away from the battlefield to decide next steps you won’t get the right choice. China is at the forefront of internet usage and is in the battle – can make decisions quicker

。        WANG CHAOYANG @ ChinaEquity

–            Agree with others – hard to say East vs. West

–            Two kinds of innovation

Innovation that generates demand, like iPhone, iPod or iPad. Before no one knew they existed

Innovation that follows demand – in China a lot of innovation driven by customer demand.

–            In Asia not as much disruptive innovation

–            China – high innovation for environmental cures, healthcare issues (due to high demand within China).

Water and soil pollution technology

Hybrid rice technology due to strong market demand

–            Alibaba – more capabilities with chat and payment systems than Western counterparts

。        RAMESH @ Honeywell

–            Innovation driven by need – it’s a market system

–            Focus on energy efficiency – target to increase 15%

–            Now 50 new cities under construction, Phenomenon that doesn’t happen anywhere else. Urban migration scale enormous and unique to China

–            China solving problems through innovation due to unique challenges of country (scale, speed)

。        PAUL LEE @ Vanedge Capital Partners

–            Rise of China – the 21st century belongs to China (students, patents)

–            For fundamental changes – not process innovations – that’s going to come for the West

–            Over next 20 years the West will continue to lead. Why?

Education – improvements and rise in rankings in Asia. In the West they teach you how to think, and in the East they teach you how to learn

Legal – For innovation to happen it must upset the status quo. The incumbents power will limit innovation. Fundamental change requires a legal system that protects the underdog and limits corruption

Financial System – Tremendous improvements but in Silicon Valley much better. Private markets and venture capital help SMEs. Asian banking system geared for large companies

Culture – In Asia very paternalistic. Respect elders, your family, your region, your school, your gender. In the West more focus on meritocracy – they just want the best & brightest. In East more focus on order & stability. West accepting of rapid change

Information – We are in information age and information is real power. Big data – all about information in the West. In East those who have more market powers have greater access to information. Much more transparent in the West (e.g., joining a club)

Leadership is really, really hard. It’s much easier to take someone else’s idea and improve. Now you need to create something new? It’s a dramatic difference to be #1 versus a trailing #2

–            Can China lead and direct for the next 20 years?

。        TATSUO HIGUCHI @ Otsuka

–            Discovery of antibiotics led to Nobel Prize for Japanese scientist

。        YOON @ CNBC

–            Main driver for innovation in Asia is the large population. Yet the environment isn’t conducive to innovation.

。        LIU JIREN @ Neusoft

–            China has world’s largest telecoms company (Huawei), world’s largest PC maker (Lenovo), and third largest IT company (TenCent)

–            Most research laboratories and institutions are government owned – most interested in publishing, not the real application. State-run too far away from market

–            Lack of funding to help labs produce innovative results. None could compete with USA pharmaceutical companies

–            China Science Academies patents and developments haven’t resulted in real products

–            Most innovation is private entrepreneurs supported by venture capital

。        RAMESH @ Honeywell

–            Investing in people capital, and creating a safe environment where people can succeed. People are afraid of failure so we need to create a safe environment. Small things that add to innovation culture.

。        KAIFU LEE @ Innovation Works

–            Six reasons why the East has a chance

Information asymmetrical – What excites Silicon Valley is well known in the East. But no one in West knows what’s happening in China. We’ll have 20 million consumers and the USA still won’t know

Hard work – Chinese entrepreneurs work twice as hard

Focus and efficiency – An iterative process requires efficiencies. 400 million users in less than 3 years. Smart people tend to get distracted with a lot of ideas. Chinese are very focused.

Larger market

Lower costs – start-up economics Sell 10% of start-up that’s $2 million. Get $200k and that buys you 3 people for 6 months. In China $200k gets you 10 people for 2 years

Tough environment – more copycats, tough competition. It’s tougher to survive. Very tough, tenacious. Fosters more robust business model. Taibao makes more money off fewer people. Ebay at risk due to lower cost competitors.

。        LIU JIREN @ Neusoft

–            China’s education system has tremendous challenges. More Chinese returning home with degrees from Harvard, Stamford, Berkley. 500k per year studying abroad. The world is flat

–            Global integration means people don’t belong to a country or a company. People, capital, all are connected

。        TATSUO HIGUCHI @ Otsuka

–            Can you damage innovation prospects if you only think short-term?

–            Education, culture essential for creating innovation

–            Need long term timeframes

。        PAUL LEE @ Vanedge Capital Partners

–            Short term timeframes focused on quarterly results hurts innovation

–            PE funds can take longer term investments – $100 million over 14 years in one quantum computer company. Patient capital – some people still willing to take long term view

。        KAIFU LEE @ Innovation Works

–            Timeframe in China is shorter, but not much. Average investment is 10+1+1

。        RAMESH @ Honeywell

–            How do people respond to culture of taking risks. Is that happening across region?

–            Sceptical when opened ‘Safe Fund’ program

。        CHAOYANG @ ChinaEquity

–            Seeing more patient capital especially from initial internet billionaires in China. Government supporting in important sectors – new materials, aerospace, biotechnology

 

DIALOGUE ON FINANCE & REAL ECONOMY

  • Li Lihui, Vice Chairman, Board of Directors and President, Bank of China

。        Economic challenges – overcapacity. Wind power under 50% utilization rates

。        Demand not recovered due to global economic crisis

。        Land cost, labour cost, RMB appreciation along with decreased export leading to greater challenges. Exports decreased and domestic demand weak

。        Overconsumption? Fast growth led to rapid development, now consuming more electricity, population

。        Real economy structure imbalance will be reflected in financial sector

。        Use differentiated lending policies based on enterprises that have under or over capacity in their industry

。        For emerging industries need to focus on good performers

。        Banking credit should be selective to encourage good performers

 

 

DIALOGUE ON FINANCE & REAL ECONOMY

How can APEC promote financial stability? How can finance industry be the new engine in the recovery of real economy? How can well-designed finance infrastructure strengthen financial markets integration in Asia Pacific region?

Moderator: TBC (Sadly the moderator was not introduced, or I missed his name; He was a fill-in at the last minute)

Discussion Participants:

  • Li Lihui, Vice Chairman, Board of Directors and President, Bank of China
  • Liang Xinjun , Vice Chairman & CEO, Fosun Group
  • David Daokui Li, Director, CCWE at the School of Economics and Management, Tsinghua University
  • Jing Ulrich, Managing Director and Chairwoman , Global Markets,     China, J.P. Morgan

。        LI @ Tsinghua

–            Economic restructuring is the goal for long term growth

。        JING ULRICH @ JP Morgan

–            Heavy industry developing suffering severe losses. Services industry taking more important role – 45% of GDP (still low compared to developed nations).

–            Rapid development of ecommerce, logistics..

–            Services like education and healthcare – government policy should support these service sectors

–            Deleverage heavy industry – must reduce capacity

–            USA stock market reached record high. GDP growth in USA 1-2%. China slowed from 10% to 7%. Yet USA stock market at all time high, and China dropping

–            Are enterprises focusing on profitability versus production capacity or scale? Some China firms are focused on market share and size – not a focus on profitability. We need to challenge

–            Unprofitable businesses should be closed down. Structural reform is tough and will create many pain points. This reform is vital. Government at turning point. If you don’t reform now then problems will be bigger.

。        CHU GUN, Managing Director @ CICC

–            Relationship between financial sector and real economy. Credit crunch showed mismatch between two. 2007 crisis in USA showed financial services developed faster than the real economy. Crash allowed them to adjust.

–            Media, entertainment increased 30-40% in price

。        LI LIHUI @ BOC

–            Employment a significant issue that needs to be balanced. If we do economic restructuring we need to look at social costs and social investments. Can expand domestic consumption and drive employment if well balanced

。        LIANG XINJUN @ Fosun

–            Domestic consumption could maintain higher portion of China’s economy

–            Next year projected per capita income to grow – will lead to increased consumption

–            GDP growth rate of 6-7% is important under restructuring. In 7-8 years strong performance after restructuring.

–            Wealth management industry critical in China. 90 trillion RMB only 1/3 under management

–            Luxury sector needs longer term to evaluate growth rate and future of industry

。        JING ULRICH @ JP Morgan

–            China’s drop in shares is redress of overgrowth in market. Prior PE ratio of 50 but now 9-10 PE. Profitability will drop and markets have far sightedness. In mid-term expect 15-16 PE

。        XINJUN @ Fosun

–            Shadow banking industry is a risk

–            Interest rate stabilization

–            Online payments accounted for high percentage of payments. Internet is affecting banking sector

。        CHU GUN @ CICC

–            Balance sheet of individuals and government are good in China whereas balance sheets of companies are bad

。        LI @ TSINGHUA

–            Camera lens is distorted because SOEs are underperforming so the big shares are performing worse. Small shares are performing better. Stock market doesn’t reflect the real economy.

。        LI LIHUI @ BOC

–            Hope RMB is better used as payment and trade currency

–            Current account reserve, high savings rate

。        XINJUN @ Fosun

–            Many issues facing manufacturing sector restructuring

–            Reduce reliance on getting money out of the land – not privatization, but land acquisition fees to support local government

–            Shift financial resources to small and micro enterprises where higher rates of profitability than large scale industry. Need support of banks.

。        LI @ TSINGHUA

–            To clean up land acquisition reliance and clean up local government debt we could provide RMB denominated bonds issued by central government

。        JING ULRICH @ JP Morgan

–            IPO market should restart after September. For better economy we need to provide more opportunities for smaller companies to list

–            Secondary market not strong so investors not willing to invest in primary market

–            Chinese prefer to buy 10 houses versus 1 stock. Prefer to fly to Paris to buy luxury goods versus buy 1 share

–            China’s stock market needs more reliance on individual investors and local institutions – ups and downs of China’s stock market is driven by retail investors. Government needs to bolster confidence

。        CHU GUN @ CICC

–            In 20 years development the capital market has come a long way – from nothing to a working stock market.

–            Liberalisation of interest rate

。        LI @ TSINGHUA

–            RMB to US dollar – stabilised

–            Unemployment never forecast because only urban register unemployment rate

 

DIALOGUE ON SUSTAINABLE DEVELOPMENT

“Resource Pressures, Environmental threats: What must we do?”
How to well balance environmental, ecological, economic and social elements in development? How to find a co-existence solution between development and natural resource? What must we do under this circumstance?

Moderator: Tian Wei, Anchor, CCTV9

Discussion Participants:

  • Zhang Yue, Chairman & President, Broad Group
  • Chandran Nair, Founder & CEO, Global Institute For Tomorrow (GIFT)
  • William S. Niebur, Ph.D., DuPont Vice President – DuPont Pioneer North Asia
  • Lu Zhicheng, Chairman, TongFang Co., Ltd

。        WEI

–            Hot topic – sustainable development

。        NAIR @ GIFT

–            Don’t listen to economists – listen to science and limits to growth

。        NIEBUR @ Dupont

–            Three megatrends we are experiencing right now

Food (safety, quantity)

Fuel

Protection (of environment and people)

–            Sustainability is that capacity to endure – to go forth with confidence. Don’t put populations at risk

–            Social equity and equality we provide to people around the world

–            Timeframe and horizon differs based on country, company, population

–            Mindset we must adopt – one community on edge of desert in China measures in terms of days or weeks. Worried about next 5 days, not next 5 decades

。        ZHANG YUE @ Broad

–            Give us example of sustainability – energy?

–            From first to fifth evolution of product the energy consumption drops 10 then 20 then 50 percent and more. Energy efficient buildings. Reduce resources waste and pollutants

–            Relationship between economy and ecology. Save on air conditioning better for economy – save more, spend more in smarter areas. Improve living standards.

。        LU ZHICHENG @ Tong Fang

–            Relationship between high tech and sustainability?

–            Largest responsibility falls to government? They’ll decide based on economist input. We have more technical tools in era of ICT

–            Our company only had two indicators – revenue growth and profitability. These can be adjusted by changing accounting to get different results with same numbers. Government needs better data to make better decisions

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s