Horasis China Meeting22-23 October 2015, Cascais, Portugal

a Horasis leadership event

Report

Horasis is a global visions community committed to enact visions for a sustainable future(http:/www.horasis.org)

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Horasis China Meeting22-23 October 2015, Cascais, Portugal a Horasis leadership event

Co-hosts:City of Cascais

Government of Portugal

China Federation of Industrial Economics

Co-chairs:Guan Jianzhong Chairman, Dagong Global Credit Rating, China

William Haseltine Chairman, ACCESS Health International, USA

Alan Hassenfeld Chairman, Hasbro, USA

Paul Judge Alderman of the City of London, United Kingdom

Liu Ruiqi Chairman, Heng Yuan Xiang Group, China

António Mexia Chief Executive Officer, EDP, Portugal

Ray Ng General Director, Industry and Commerce Association of Macau, Macau SAR

Vachara Phanchet Chairman, Sittipol Holdings, Thailand

Charles Tang Chairman, Brazil-China Chamber of Commerce& Industry, Brazil

Michael Taylor Managing Director Asia Pacific, Moody’s Investors Service, Hong Kong SAR

Wayne W. Wang Chairman, CDP Group, China

Yan Jiehe Chairman, China Pacific Construction Group, China

Michael Yeoh Chief Executive Officer, Asian Strategy&Leadership Institute, Malaysia

Zhang Xiaodong Chairman, Winhopes Investment Co., China

Zhang Zhigang President, China National Aviation Fuel Group, China

Co-organizers:

Committee 2005

Industry and Commerce Association of Macau

Pacific Basin Economic Council (PBEC)

Tonghehui Entrepreneurs Business Club (TEBC)

Strategic Partner:

Estoril Sol

Knowledge Partners:

aicep Portugal Global EdelucEDP

Media Partner:

Plataforma Macau

Delegates of the China Federation of Industrial Economics in front of the townhall of Cascais

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Table of Contents

Foreword 6

A Meeting of the Two Largest Economic Powers 32

Estoril Congress Center

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ForewordOn 22-23 October 2015, the 11th HorasisChina Meeting took place in Cascais,Portugal. The event gathered a collectiveaudience of 300 entrepreneurs and govern -ment officials. With this Horasis ChinaMeeting, Horasis aims to present an inter -disciplinary and systemic view of the majoreconomic, societal and technological driverscurrently at work in China and the world.The location of the meeting rotates annually,and was held so far in Geneva (2005, 2006),Frankfurt (2007), Barcelona (2008), Lisbon(2009), Luxembourg (2010), Valencia (2011),Riga (2012), The Hague (2013) and LakeComo (2014). The 2015 meeting wasorganised by Horasis in partnership withthe Government of Portugal, the City ofCascais, and the China Federation ofIndustrial Economics.

This report – which builds on the outcome ofthe meeting – is an attempt to summarisethe discussions which took place at theHorasis China Meeting. The report shallserve as a catalyst to stimulate furtherthinking on the issues and questions thatwere raised. Being a business-focusedgathering, valuable opportunities forbusinesses were identified during thevarious panels as well as on the side-linesof the event.

The Horasis China Meeting brings togethereminent leaders – from China and beyond– for an engaging discourse on the currentstate of the economy and to evolve a road -map for leveraging innovation for growthand development. The 2015 Horasis ChinaMeeting set out to highlight China’seconomic future against a background ofprofound global and national challenges.

Investors in the Chinese stock market haveexperienced a negative hit to their net assetpositions in recent months. With the biggestfall since 2007, the Chinese govern mentinstituted measures to boost equity prices,and they temporarily stymied stocks’ fall.But that strategy appeared to succeed onlypartially – the value of shares fell by morethan 50% in just a few weeks. The Chinesestock market is one of the most volatileones in the world because it is still a younginstitution with liquidity issues, govern mentintervention and a majority of tradingcoming from retail investors. Participantsat the Horasis China Meeting were dividedin their analysis of the turbulences: somenoted that there is a risk of spill-over intothe real economy that could even turn intoa global downturn. Others were convincedthat the fall in share prices is just one of theusual panics to which young financial marketsare more prone than established ones.

Carlos Carreiras, President of Cascais, during the welcome reception

Virtual Ribbon Cutting Ceremony, with the co-hosts and co-organizers

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With China’s household sector holding arelatively small share of equities comparedto real estate, the current stock-marketslump is unlikely to derail the economy.

Despite the turbulences of the stockmarket, China is making an importantcontribution to the world economy – it hasbeen a source of dynamism in a weak andhesitant global economic climate. Throughthe new normal of a lower growth rate,there is still enormous room for developmentto take place internally and internationally.Even in the face of economic upheaval inmuch of the world, investors rest generallybullish in their approach to China – thecountry remains the world’s growth engine.China is already the world’s second largesteconomy and its economy seems to con ti nueto grow at around 7% annually. China’soutward engagement in terms of trade andinvestment with the rest of the worldadvances, and it is viewed as a land ofopportunities.

The Chinese government has embarked ona process of rebalancing the economy, in -creasing consumer spending and domesticdemand and reducing the roles of exportsand investment in heavy industry. TheHorasis China Meeting focused on thegovernment’s new policies and the related

changing paradigm of the Chinese econo my.Sustained structural reforms aimed atenhancing competitiveness will be neces -sary to bolster and boost China’s economicgrowth and ensure the rising prosperity ofits population going into the future.

The star contingent of participants hasbecome the trademark of the Horasis ChinaMeeting. The gathering was joined by thefollowing meeting co-chairs: GuanJianzhong, Chairman, Dagong GlobalCredit Rating, China; William Haseltine,Chairman, ACCESS Health International,USA; Alan Hassenfeld, Chairman,Hasbro, USA; Paul Judge, Alderman ofthe City of London, United Kingdom; LiuRuiqi, Chairman, Heng Yuan XiangGroup, China; António Mexia, ChiefExecutive Officer, EDP, Portugal; Ray Ng,General Director, Industry and CommerceAssociation of Macau, Macau SAR;Vachara Phanchet, Chairman, SittipolHoldings, Thailand; Charles Tang, Chair -man, Brazil-China Chamber of Commerce &Industry, Brazil; Michael Taylor, Mana -ging Director Asia Pacific, Moody’s InvestorsService, Hong Kong SAR; Wayne W. Wang,Chairman, CDP Group, China; Yan Jiehe,Chairman, China Pacific ConstructionGroup, China; Michael Yeoh, Chief Exe -cu tive Officer, Asian Strategy & Leadership

Opening plenary session

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Institute, Malaysia; Zhang Xiaodong,Chairman, Winhopes Investment Co., China;Zhang Zhigang, President, China NationalAviation Fuel Group, China.

Participants reached consensus that• After the dramatic decline of equityprices, the government needs toconvince investors and consumers thatthe real economy is stabilising and isgoing to be improving. Monetary andfiscal stimulus is necessary get theeconomy on an upward track again.

• Overall, China’s economic growth is stillvery robust but it is slowing. Yet as plansunfold for another wave of urbanizationand the economy transitions towardgreater consumption there will be manyopportunities.

• China will take innovation as the maintheme and focus on transforming theeconomic development pattern at a fasterpace. The country will need to invest incutting-edge research, emerging techno -logies and innovative business modelsQualitative economic growth is key.

• China and the world need to deepenpolicy exchanges to share expertise, tolearn from one another, and to buildcooperative solutions at the global level.

Consolidation of two-way relations betweenChina and Portugal will open up a range ofnew possibilities, and China could bePortugal’s chosen gateway to Asia and vice

versa,’ Carlos Carreiras, President ofCascais, Portugal, said during his welcomingspeech. ‘Cascais exemplifies the closepartnership between China and Portugalthat can be traced back for centuries andhas been underpinned by profound tiesover the last decades,’ he continued.

According to Jorge Torres-Pereira,Ambassador of Portugal to China, Portugal,‘Portugal and China share similar challenges,namely finding ways to create sustainablegrowth and prosperous societies, estab lishinga stable environment for their businesscommunities, and creating a global tradeorder that is conducive for the political andeconomic framework of the 21st century.‘We are ready to cooperate with Portugal tomake this happen,’ added Cai Run, Am bas -sador of China to Portugal. The Ambassadoralso highlighted the enhanced relationshipbetween China and Portugal over the pastfew years and said he looks forward to morecooperation.

‘Consolidation of two-way relationsbetween China and Portugal will openup a range of new possibilities’ Carlos Carreiras, President of Cascais, Portugal

Listening to the welcome speeches

Rui Machete, Portuguese Minister of Foreign Affairs, keynoting themeeting

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Portugal is expected to grow strongly overthe next couple of years,’ Rui Machete,Minister of Foreign Affairs, Portugal, said inhis welcome speech. ‘Portugal is delightedto host this eleventh Horasis China Meeting.’The Minister looked to the future withoptimism: ‘We feel encouraged that Chinais pursuing a series of economic and socialreforms that will further open China’seconomy and give a greater role to marketforces,’ he said. ‘We hope that more Chineseenterprises venture to Portugal and morePortuguese enterprises come to China,’ heconcluded.

During the opening dinner, Xiong Meng,Executive Vice Chairman, China Federa tion

of Industrial Economics, China, said thatChina is currently undergoing considerablechange – ‘we will push for more economicreforms in the months ahead.’ ‘China is inan important period where reform is beingintensified, upgraded and transformed; theservices industry is being developed andservice trade has become the key strategicforce. The government is forging a strongskills base, which will not only meet China’sfuture needs but also help bridge the globalskills in the future,’ he told guests. He alsomentioned that the China Federation ofIndustrial Economics is currently preparingfor the establishment of an internationalcooperation mechanism called the Belt& RoadIndustrial and Commercial Alliance (BRICA),with a purpose of leveraging the collective

‘We hope that more Chinese enter prisesventure to Portugal and morePortuguese enterprises come to China’Rui Machete, Minister of Foreign Affairs, Portugal

‘Following the tradition of Sino-European trade cooperation and fuelledby modern technology and logistics thenew silk roads will further connectAsia and Europe’Xiong Meng, Executive Vice Chairman, China Federation of Industrial Economics, China

During the welcome dinner Cai Run, Ambassador of China to Portugal

Xiong Meng, Executive Vice Chairman, China Federation of Industrial Economics

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Vincent Zheng, Managing Partner,Capital First Partners, on China’s capital markets

Richard Li, Managing Partner, Success Mark

advantages of leading industrial and com -mercial organizations worldwide. Throughthe future BRICA network, companies ofmember organizations would achieve betterinter-connectivity of business and invest -ment information by way of the online and offline platforms for investment andfinancing projects. Chairman Xiong alsoexpressed his hope that the discussions atthe Horasis China Meeting provide insightson the best practices in managing Chinesecorporations. He concluded by saying that‘following the tradition of Sino-Europeantrade cooperation and fuelled by moderntechnology and logistics the new silk roadswill further connect Asia and Europe withroads, railways and ocean shipping routes.’

António Mexia, Chief Executive Officer,EDP, Portugal, illustrated how Portugal can

become a hub for Chinese investments.‘Portugal is an attractive country for Chinesebusinesses to set up European operations.The partnership between EDP – Portugal’slargest company – and its shareholder ChinaThree Gorges (CTG) is a good example ofa successful partnership.’

Participants had a rare opportunity to ex -plore China’s development from a varietyof points of view. An intensive programmeof plenary sessions and boardroom dialoguediscussions were devoted to a variety ofkey themes, including China’s role in thenew global governance system. Also on theagenda were sessions on selected industrialsectors, including financial services,urbanization and education, as well as moreconceptual themes covering trade andinvestment, entrepreneurship, innovation,branding and technology.

China’s relations with Portuguese speakingcountries are burgeoning. How can China andthe Lusophone countries work together toaddress global and regional issues, andwhich would be the countries priorities?

‘Portugal is an attractive country forChinese businesses to set up Europeanoperations’António Mexia, Chief Executive Officer, EDP, Portugal

Meeting co-chair António Mexia, Chief Executive Officer, EDP, Portugal

Shazia Ilmi, Brand Ambassador, SwachhBharat, India

Si Hong, Deputy Director General,China Center for SME CooperationDevelopment and Promotion

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Daniel David, CEO, Grupo SOICO, MozambiquePaulo Rego, Chief Executive Officer, Plataforma Macau

Jorge Torres-Pereira, Ambassador of Portugal to China, welcoming delegates

‘Portugal’s privileged partnership withChina,’ said Jorge Braga de Macedo,Professor, Nova School of Business andEconomics; former Minister of Finance,Portugal, would be a ‘significant change inthe way Portugal understands its strategicgeography,’ and the ‘strategic trianglebetween Portugal, Brazil and Portuguese-speaking African countries would becomplemented with a fourth angle inChina. The interest of Chinese companiesin Portugal is certainly also driven by tieswith Brazil and Africa.’

Daniel David, Chief Executive Officer,Grupo SOICO, Mozambique, indicated that‘bilateral relations between China andMozambique have been developing in acomprehensive and steady manner, withthe two nations conducting exchange andcooperation effectively in various fields.And ‘China is the leading trading partner andinvestor in Mozambique. In this context,the administration of Macau is determinedto serve as bridge between China, Portugaland the other Portuguese speakingcountries,’ concluded Gabriela César,Head, Macau Economic and Trade Office in Lisbon, Macau SAR.

Macau is one of the fastest developingtourism and investment destinations inAsia, transforming itself into a vibrant

cosmopolitan city that features ampleattractions for entertainment and business.According to Pedro Cortés, Partner,Rato, Ling, Lei & Cortés, Macau SAR,Macau is now also famous as the gamingcapital of the world.’ ‘What are thegovern ment’s priorities and strategies? And how can investors and entrepreneursembrace Macau’s economic future?’ askedPaulo Rego, Chief Executive Officer,Plataforma Macau, Macau SAR.

‘The government of Macau is planning toboost economic growth and is encouragingspending by a newly enriched middle class,’said Sou Chio Fai, Director, TertiaryEducation Services Office, Macau SAR.‘We are experiencing here in Macau in oneof the biggest economic consumerexperiments in the world,’ added Ray Ng,

Jorge Braga de Macedo, former Minister of Finance, Portugal

Hao Yabin, Vice Chairman, China Video Industry Association

Diana Chou, Managing Director,L’VOYAGE

Pedro Cortés, Partner, Rato, Ling, Lei & Cortés, Macau

Ray Ng, General Director, Industry and Commerce Association of Macau

Gabriela César, Head, Macao Economic and Trade Office in Lisbon

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General Director, Industry and CommerceAssociation of Macau, Macau SAR. Amid theuncertainty of Chinese tourists traditionallycoming to Macau for gambling, someinvestors glimpse opportunity. Macau willbe transformed into an entertainmentcenter like Las Vegas,’ Pedro Cardoso,Chief Executive Officer, Banco NacionalUltramarino, Macau SAR, was convinced.Macau’s history shows the gaming industryand the economy can change withaccelerated speed. ‘Such was the caseduring the global financial crisis. When therecovery comes, it will be pretty sharp,’Afonso Camoes, Director, Jornal deNotícias, Portugal, concluded.

Recent stock market turbulence will nothave a major spill-over effect on China’sreal economy,’ Guan Jianzhong, Chair -

man, Dagong Global Credit Rating, China,said on the opening plenary. He added that‘China’s economy is growing at about 7% in2015 with inflation kept below 3 percent.’

Doubts about the Chinese economy’simbalances and vulnerabilities tend toneglect some of the positive elements of its structural evolution, particularly thegovernment’s track record of correctiveintervention, and the substantial statebalance sheet that can be deployed,’ saidAlan Hassenfeld, Chairman, Hasbro,USA. Consumption and the labour marketare holding up well, and the globalrecovery is expected to support activitygoing forward. Industrial productivity isonly one-fourth to one-fifth of the pro -ductivity in Portugal, which is a problem.Panellists agreed that higher productivityrates can be achieved by improvingmanage ment, innovation, and by thehorizontal and vertical integration ofindustry. ‘Undoubtedly, China’s economy isdemonstrating a drop in growth. The tur -bulences of stock markets are frightening,’

‘Recent stock market turbulence willnot have a major spill-over effect onChina’s real economy’ Guan Jianzhong, Chairman, Dagong Global Credit Rating, China

Liu Wei, Chairman, Wenhao Baoer Technology Co.

Afonso Camoes, Director, Jornal de Notícia

Sou Chio Fai, Director, Tertiary Education ServicesOffice, Macau SAR

Alan Hassenfeld, Chairman, Hasbro, USA – one of the co-chairs Pedro Cardoso, Chief Executive Officer, Banco Nacional Ultramarino, Macau

Guan Jianzhong, Chairman, Dagong Global Credit Rating

noted Michael Taylor, Managing Direc torAsia Pacific, Moody’s Investors Service,Hong Kong SAR. ‘But there is little chancethat China’s market woes will directlyaffect the global financial system,’ explainedLiu Ruiqi, Chairman, Heng Yuan XiangGroup, China. ‘Still, China needs to changeits reliance on foreign demand, and shouldfocus on domestic demand,’ ZhangZhigang, President, China NationalAviation Fuel Group, China, suggested.

Structural reforms and liberalization areeasing China’s reliance on growth throughinvestments and exports mainly driven bymanufacturing. Instead, an economicdevelopment model based on domesticconsumption and services, and stronglydriven by innovation, is emerging.According to Gail Fosler, President, TheGailFosler Group, USA, ‘China’s develop -ment model will, and has to, change tomeet the new realities of the world. Chinawill no longer just be a source of cheaplabour for exports. ‘China will be a newsource of innovation as its investment inR&D is going to continue to grow at a pace

that is higher than any other majoreconomy in the world,’ explained JanuszPietkiewicz, Vice President, Employersof Poland, Poland. China is still the world'slargest manufacturing power – the countryaccounts for more as a fifth of global manu -facturing. But the era of cheap China maybe drawing to a close – China is not a cheapcountry anymore.

China’s growth has slowed in recent years,although it is still very high. The expectedgrowth rate of about 7% p.a. will double thesize of its economy over the next decade,effectively resulting in another China. After30 years of unprecedented growth, Chinais now moving into patterns of single digitgrowth. ‘China is certainly moving towardbecoming a more consumer-driven eco no my,’explained Jürgen Kracht, Chair man,

‘But there is little chance that China’smarket woes will directly affect theglobal financial system’ Liu Ruiqi, Chairman, Heng Yuan Xiang Group, China

Stan Fung, Managing Director,FarSight Ventures, USA

Ulrich Bierbaum, General Manager,Dagong Europe Credit Rating, Italy

Zhang Zhigang, President, China NationalAviation Fuel Group, on China’s economic outlook

Michael Taylor, Managing Director Asia Pacific,Moody’s Investors Service

Liu Ruiqi, Chairman, Heng Yuan Xiang Group, making a point during the opening plenary

Gail Fosler, President, The GailFosler Group, USA

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Henk Kool, Managing Director,BIZ-Platform Netherlands

Rong Yuanlian, Chairman, Rong Group

Fiducia, Hong Kong SAR. ‘China’s eco -nomic development model has to bolsterthis trend,’ Sergey Millian, Chairman,Millian Group, Russia, opined. However,‘China’s ongoing shift away from investmentand real estate toward con sumption isbeginning to hurt the more commodity-oriented segments of both the Chinese andthe world economies,’ said Rong Yuanlian,Chairman, Rong Group, China. Accordingto Charles Tang, Chair man, Brazil-ChinaChamber of Commerce & Industry, Brazil,‘China needs to continue its drive for eco -nomic restructuring to main tain stableeconomic growth.’ ‘The longer China waitsto push economic-policy changes, thebigger the long-term cost in growth couldbe,’ said Rodrigo Costa, President, REN –Rede Electrica Nacional, Portugal.

China’s new silk road-project focuses onbringing together China, Central Asia,Russia and Europe; linking China with thePersian Gulf and the Mediterranean Seathrough Central Asia and the Indian Ocean.The 21st-Century Maritime Silk Road isdesigned to go from China’s coast to Europe(with Portugal as the final point) throughthe South China Sea and the Indian Ocean inone route, and from China’s coast throughthe South China Sea to the South Pacific inthe other. ‘China’s ‘one belt and one road’initiative could usher in a new era that seesChina as the new economic and geopoliti calpowerhouse in the region,’ said HenkKool, Managing Director, BIZ-PlatformNetherlands, The Netherlands. Worldregions from the Atlantic to the Pacific areto be connected through hyper-efficientinfrastructure and new institutionallinkages, as Adnan Akfirat, Chairman,TUCEM, Turkey, proposed. Indeed, ‘Thepurpose of the ‘one belt, one road’ initiativeis to promote China’s economic integra tionwith the conjoined continents of Asia andEurope,’ said Shazia Ilmi, Brand Ambas -sa dor, Swachh Bharat, India.

China’s economic competitiveness relieson a well-developed and sophisticatedfinancial market that can channel financialresources to a good use. According toBernard Pouliot, Chairman, Quam

Adnan Akfirat, Chairman, TUCEM, TurkeySergey Millian, Chairman, Millian Group, Russia Jürgen Kracht, Chairman, Fiducia, Hong Kong

Charles Tang, Chairman, Brazil-China Chamber of Commerce & Industry

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Limited, Hong Kong SAR, the country’sshadow banking markets for instances are abig threat to China’s financial system.‘Further reforms, including marketizationof the interest rate, relaxation of capitalflows under the capital account and financingof small and medium-sized companies, arekey to transforming China’s economicgrowth model,’ conveyed Michael Roux,Chairman, Roux International, Australia.Referring to the current market turbu -lences, Daniele Schilirò, Professor ofEconomics, University of Messina, Italy,opined that Chinese authorities shouldfocus on regulatory and institutionaldevelopment, while following through ontheir commitment to allow markets to playthe decisive role in allocating resources.‘The ongoing turmoil won’t derail the RMBreserve-currency decision, but it may takelonger,’ said Richard Li, ManagingPartner, Success Mark, Hong Kong SAR.Dai Wei, Deputy General Manager, Bank ofBeijing, China, added that financial reformsshould ‘focus on internationalization of theRMB.’ And: ‘the Chinese government needsto help state-run lenders battling rising badloans caused by the slowing economy,rising interest rates and project delays.’‘We now need to develop and improvedomestic capital markets,’ added UlrichBierbaum, General Manager, DagongEurope Credit Rating, Italy. According to

Vincent Zheng, Managing Partner,Capital First Partners, China, ‘the declinein inflation, more particularly non-foodmanufacturing inflation, will create morespace for China’s monetary policy tosupport growth. ‘China needs to offerfinancial solutions to previously unbankedconsumers,’ opined Siegfried Verstappen,Director, Invest Hong Kong, Hong Kong SAR.At the same time, as the country becomesan increasingly important part of the globaleconomy and more Chinese companiesconduct business overseas, the Chinesefinancial sector is required to globalize,’concluded Xiao Zhiyin, Deputy GeneralManager, Bank of Beijing, China.

Key to China’s changing growth pattern isthe renewed focus on innovation. ‘I foresee a

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Bernard Pouliot, Chairman, QuamLimited, Hong Kong SAR

Dai Wei, on Bank of Beijing’sapproach towards capital markets

Siegfried Verstappen, Director, Invest Hong Kong

Plenary on China as the 21st Century’s Superpower Daniele Schilirò, Professor of Economics, University of Messina, Italy

fundamental shift in the way China generatesits wealth. To find new routes to growthand solutions to the challenges it faces, thenation will move gradually towards becomingan economy in which innovation is central,’noted Martin Haemmig, Visiting Pro -fessor, Renmin University, China. China’sleadership has been determined to under -stand that it cannot rely only on existingstrengths to determine the nation’s future.It is already taking bold steps to instil aculture of innovation and sustainability atall levels. ‘These will enable the country toconsolidate its remarkable gains and reapthe opportunities that lie ahead,’ saidMark Turrell, Founder and ChiefExecutive Officer, Orcasci, USA. ClasNeumann, Senior Vice President, SAP,Germany, explained that Chinese firms are

re-defining approaches toward innovationto take part in the promise of a networkedglobal economy. China’s IT and other newtechnology firms are emerging as globalplayers in their own right. China is now amature economy, and ‘we are experiencinga trickle-down effect due to the impressivetechnology output the country has beencreating over the last couple of years,’noted Jerry Zhang, Chief ExecutiveOfficer, Neocomm Broadband, China.‘China’s future growth will dependincreasingly on the knowledge economy.The country needs to create an even moredynamic environment to unlock the entre -preneurship potential,’ opined J.T. Li,Senior Associate Dean, The Hong KongUniversity of Science and Technology,Hong Kong SAR.

John Cook, Chairman, Rock LakeAssociates, Switzerland, claimed that Chinaneeds to develop its venture capital industryto harvest the fruits of innovation. Goingforward, ‘we need to ensure that innovativefirms have easy access to finance at an earlystage of development,’ Stan Fung, Mana -ging Director, FarSight Ventures, USA,added. Also, the distinction will be betweenhigh-innovation economies and low-inno -vation ones. China’s challenge is to becomea high-innovation economy,’ Liu Wei,Chairman, Wenhao Baoer Technology Co.,

Martin Haemmig, Visiting Professor, Renmin University, China Xiao Zhiyin, Deputy General Manager, Bank of Beijing

John Cook, Chairman, Rock Lake Associates

He Qingyuan, Chairman,Wuchang Property Co.

J.T. Li, Senior Associate Dean, The Hong Kong University of Science and Technology

Jerry Zhang, Chief Executive Officer, Neocomm Broadband, China

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China, said. And, according to WalterPalma, Principal, Caixa Capital, Portugal,collaboration is essential to driving inno -vation – and China can derive significantbenefits from sharing its expertise.Expanded trade and investment abroadcould stimulate growth domestically.‘Infrastructure has been and will continueto be an area in which China can make amajor contribution, especially in countrieswhere it has strong business interests,’maintained Scott Rickert, Chairman,PEN Inc., USA.

China’s reform programme has helped buildtrust in the government among investorsand the public. ‘The country embracedwidespread reforms to make its marketeconomy stronger, Jacques Tourel, Pre si -dent, World Trade Centre Warsaw, Poland,reported.‘The task is to turn what wasonce a lumbering command economy intoa dynamic society of innovators and entre -preneurs,’ suggested Ivan Tselichtchev,Professor, Niigata University of Manage -ment, Japan. ‘While China’s state-ownedenterprises remain the dominant players inthe economy, the private sector is on therise,’ said Johan Nylen, Partner, UnitedBankers, Sweden. According to DonnyHuang, Founder and Managing Director,4stones, China, ‘state-owned enterprises canstill be innovative, if left alone to compete

in the global market.’ Moves to upgradecorporate governance, such as the inclusionof independent directors from outside thecountry, could be a way to improve companyperformance,’ Andrew Tiernan, Mana -ging Director, Silvermark Holdings, HongKong SAR, added.

The entrepreneurial drive of Chineseentrepreneurs is one of the most importantfactors in China’s economic success. Thisdrive will continue to keep China at theforefront. According to Hao Yabin, ViceChairman, China Video Industry Associa tion,China, ‘private entrepreneurs are wellpositioned to accelerate economic growth.’‘Chinese entrepreneurs increasingly focusless on what the government could do forthem – they see how they can help

Ivan Tselichtchev, Professor, Niigata University of Management, Japan

Andrew Tiernan, Managing Director, Silvermark HoldingsWalter Palma, Principal, Caixa Capital Donny Huang, Founder and Managing Director,4stones, China

Clas Neumann, Senior VicePresident, SAP, Germany

Scott Rickert, Chairman, PEN Inc., USA

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themselves,’ observed Harbeen Arora,Chancellor, Rai University, India. ‘The nextdecade will be a very good time for Chineseentrepreneurs,’ reasoned Yan Changming,President, Jiada Investment, China.‘Chinese entrepreneurs generally exhibit ahigh degree of curiosity and willingness tolearn. China is unique in this regard andhas an open-mindedness about innovation,’concluded Fan Yaju, Chairperson, SuizhidaoJewellery Co., China.

China is in the midst of profound changesthat will shape the course of business andgeopolitics for the rest of the 21st century.‘What does China’s rise mean for regionaland global stability? What are the oppor -tunities and challenges for Portugal andother nations?’ asked Anson Chan,Chairman, Bonds Group of Companies,

Hong Kong SAR. Participants warned thatthe rise of populism across East Asia isfueling tensions that could lead to conflictor an unintended escalation. ‘Yet, signs haveappeared that conflicting parties – like Chinaand Japan – want to mend ties, includingthe scheduling of visits by officials,’ statedVachara Phanchet, Chairman, SittipolHoldings, Thailand. ‘China’s economic risedoesn’t mean it will dominate the 21st cen -tury. China’s rise is a peaceful one,’ con -veyed Yan Jiehe, Chairman, China PacificConstruction Group, China. The formationof the Asian Infrastructure Investment Bank(AIIB) nations along with the formation ofthe New Development Bank (NDB) by theBRICS (Brazil, Russia, India, China, SouthAfrica) will break the monopoly of the IMFand World Bank and make their functioningmore transparent,’ opined Wayne W. Wang,Chairman, CDP Group, China. ‘China istaking a lead role in those initiatives – thecountry will surely become the 21st centu -ry’s superpower,’ added Charles Tang,Chairman, Brazil-China Chamber ofCommerce & Industry, Brazil.

‘China’s economic rise doesn’t mean itwill dominate the 21st century. China’srise is a peaceful one’ Yan Jiehe, Chairman, China Pacific Construction Group, China

Vachara Phanchet, Chairman, Sittipol Holdings, Thailand, on China’s economic rise

Michael Roux, Chairman, Roux International, Australia

Harbeen Arora, Chancellor, Rai University, India

WayneW.Wang, Chairman, CDP Group

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Anson Chan, Chairman, Bonds Group ofCompanies, moderating a plenary

Fan Yaju, Chairperson, Suizhidao Jewellery Co.

China has taken steps to widen and deepenengagement with its trading partners,Noel Akpata, Chief Executive Officer,Stratex Pro, Nigeria, observed. It reached abroad agreement on an economic partner -ship with its Asian neighbours. ‘Once theOne Belt, One Road vision is realized, itwill create the most promising economiccorridor, directly benefiting almost twothirds of the global population,’ saidChitra Narayanan, Associate Fellow,Geneva Centre for Security Policy,Switzerland. ‘With the Doha Roundstalled, the future directions of inter natio -nal trade will be largely determined by theinitiatives of China and its economicpartners,’ said James Fierro, Chief Exe -cutive Officer, Recipco Holdings, UnitedKingdom. ‘The rise of China will kick-startglobal supply chains and trade,’ statedStacy Kenworthy, Chief ExecutiveOfficer, OptiGlobal, USA. ‘Chinese firmswill hugely benefit from this trade stimulus,’Liang Shaohui, Member of the Board,Daqing Oilfield, China, said. ‘China’ssuccessful integration into the global eco -nomy is the single biggest challenge – as wellas opportunity – facing the West,’ concludedNicholas Parker, Co-founder & ManagingPartner, Global Acceleration Partners,Canada.

Chinese firms are increasingly looking toinvest abroad to accomplish its motives ofacquiring technology, resources or marketshare. As the Chinese economy evolves, thecountry is beginning to see massive growthin its cross-border capital flows. Chineseinvestment abroad exceeded $100 billionfor the first time in 2014, and a lot moreinvestment is on the way. The majority of itwill go into investments under the ‘one belt,one road’ program. China’s emergingglobal financial role will be decisivelyshaped by its experience with Eurasianeconomic integration. Financing has beenthe lifeblood of the going-out initiative,which expanded over the past year with therollout of the government's silk-roadinfrastructure and trade investment plansas well as the Asian Infrastructure Invest -ment Bank. Many global investments by

Stacy Kenworthy, Chief ExecutiveOfficer, OptiGlobal, USA

Noel Akpata, Chief ExecutiveOfficer, Stratex Pro, Nigeria

James Fierro, Chief Executive Officer, Recipco Holdings

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Discussing geopolitics – Yan Jiehe, Chairman, China Pacific Construction Group

Nicholas Parker, Managing Partner, GlobalAcceleration Partners, Canada

Chitra Narayanan, Associate Fellow, Geneva Centre for Security Policy

Chinese firms have been supported by thecountry's policy lenders and state-ownedbanks. ‘China is now not only a keydestination of foreign investment, butChinese companies have themselves alsobecome major international investorsincreasingly looking beyond Chineseborders,’ said Ge Ming, Vice Chairman,China M&A Association, China.

Ji Bo, Assistant Dean, CKGSB, China,stated that ‘Chinese firms have been usingdistinct ways to advance their presence onthe world map. According to PhilippeMonnier, Member of the Board, WayRay,Switzerland, ‘Chinese firms have achievedonly the first step towards global inte gra -tion. ‘They now need to shift from atraditional domestic strategy to a broader

global approach,’ Alf Erik Lundgrenn,Chairman, Nordic Invest SIA, Latvia, said.Furthermore, as Eduardo Catroga,Chairman, EDP, Portugal, explained, ‘theyhave to ensure they incorporate globalvalues into their thinking to create aglobalized way of doing business.’ ‘This isan important step for the continued healthydevelopment of Chinese firms,’ concludedZhao Liping, Director General, ChinaAssociation of Pharmaceutical Commerce,China.

Alastair Campbel, Director, Asian CapitalPartners Group, Hong Kong SAR, judgedthat ‘Chinese firms are rapidly gainingconfidence and are themselves now majorplayers in globalization through inter natio nalexpansion. ‘But China’s depth of globaliza -tion is still lower than one would expectbased on a cross-country estimates,’juxtaposed Erwin Feldhaus, Chief Exe -cu tive Officer, Roeder Praezision, Germany.‘Globalization is a two-way street. But I seeChina on the winning side,’ concludedJose Maria Muñoz, Founding Partner,MCH Private Equity, Spain.

Commenting on the decelerating growth offoreign companies in China, Walter Levy,Chief Executive Officer, NCH Corporation,USA, put a positive spin on the challengesforeign investors companies currently face

Ge Ming, Vice Chairman, China M&A Association Alf Erik Lundgrenn, Chairman, Nordic Invest SIA, Latvia

Philippe Monnier, Member of the Board, WayRay

Alastair Campbel, Director, Asian Capital Partners Group

Ji Bo, Assistant Dean, CKGSB, China

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Eduardo Catroga, Chairman, EDP, Portugal

in the Chinese market. ‘Market expansionand success is always something that needsto be earned. We cannot blame the Chinesegovernment or the Chinese consumer forreduced growth. We need to adjust ourstrategies,’ he said. Indeed, ‘for manycompanies the Chinese market remainsconfusing and complex to grasp,’ assertedNed Cloonan, President, Ned CloonanAssociates, USA. ‘For sure, the currentChinese economic environment is a time ofadjustment and consolidation,’ explainedHou Kun, Vice Chairman, Harbin PowerEquipment Industrial Base Association,China. ‘If European firms want to pursuethe China opportunity, then it must reachout to China more confidently,’ maintainedJan Siemons, President, SILC Global, TheNetherlands. ‘The opportunity set in Chinafor European businesses is large andsignificant,’ said Jacques Gravereau,Chair, HEC Eurasia Institute, France.‘China is growing – we are very focused ondoing business with China,’ Sergey Demin,President, Rosatom Eastern Asia, Russia.To close the discussion, the turned to avery topical subject: Intellectual propertyrights (IPR) protection in China. ‘Despiteincreasingly stronger statutory protection,China continues to be a haven for counter -feiters and pirates,’ he said. According toHarald Einsmann, Member of theSupervisory Board, Tesco, United Kingdom,

China’s legal system needs to be improved,so economic disputes can be solved in abetter manner. But,as more and moreChinese companies become patent holders,‘they will then have a vested interest inprotecting their technology, just like theirinternational counterparts, Feng Leiming,Secretary General, Tianjin Institute forInternational Development Studies, China,concluded. More than any other factor, thistrend will drive the future of IPR protectionin China.

Despite China’s continued economicsuccess, the country has many inherent risks.Participants identified several challengesfor China including rising debt, volatilestock markets, pollution, social stability,

Jose Maria Muñoz, Founding Partner, MCH Private Equity, SpainErwin Feldhaus, Chief Executive Officer, Roeder Praezision, Germany

Harald Einsmann, Member of the Supervisory Board,Tesco, United Kingdom

Hu Yue, Chief Executive Officer,NOC Media

Jan Siemons, President, SILC Global, The Netherlands

Sergey Demin, President, Rosatom Eastern Asia, Russia

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modernisation of the rural sector, moresubstantial investment in education andskills development, and a need to liberalisethe sector of professional services includingbanking. China’s future economic growth ispressing for those millions of people in ruralareas, who have benefited comparativelyless from the economic growth and pros -perity. According to Ravi K Mehrotra,Executive Chairman, Foresight Limited,United Kingdom, ‘it is necessary to focuson the country’s poor who are not part ofthe formal economy. ‘The challenge is toreduce the vulnerabilities that have built up,and transit to more sustainable eco no micdevelopment,’ voiced Marina Ferreira,President, Port of Lisbon, Portugal.

Greater efforts are needed to boost energyefficiency. Because energy security is the

country’s biggest existential challenge – itdepends largely on imported sources offuel – China has had to explore ways tomake consumption efficient and to findalternatives to fossil fuels, such asgeothermal energy for power. While Chinahas maintained growth, resource andenvironmental problems have becomeincreasingly pertinent. ‘The country’senvironmental problems are one of thedrivers behind the planned shift towards agreener and more sustainable model ofeconomic development;’ stated JoãoRibeira da Fonseca, President, CascaisDinâmina, Portugal. As more cities faceurban pollution related to fossil fuels, thereis an urgent need to develop cleaner energysources that are more sustainable in the longrun,’ added Felix Zhang, Founder andExecutive Director, Envision Energy, China,in a panel discussion called ‘Greening theChinese Economy’. ‘Indeed, China’s highconsumption, high pollution and high carbonemission path is no longer adequate,’suggested Rob Morrison, Chairman,H.R.L. Morrison & Co, New Zealand on thesame panel. According to Sein-Way Tan,Chairman, Green World City Organi sa tion,Australia, ‘power stations, manufacturers,and construction firms are preparing toadopt cleaner technology to prepare fortougher emissions standards.’

Felix Zhang, Founder, Envision Energy, China

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Alfonso Vegara, President, Fundación Metropoli, Spain

Sein-Way Tan, Chairman, Green World City Organisation,Australia

Ravi K Mehrotra, Executive Chairman, Foresight Limited, United Kingdom

Feng Leiming, Secretary General, Tianjin Institute for International Development Studies

Natalie Samovich, Co-founder, Energopark Group, Portugal

‘China has been lagging behind othernations in the use of renewables,’ revealedHenry Weil, Professor, MIT Sloan Schoolof Management, USA. ‘The country’s needto promote more widespread adoption ofrenewable energy to help displace fossilpower generation and, in turn, limit green -house gas emissions that accelerate climatechange,’ claimed Natalie Samovich, Co-founder, Energopark Group, Portugal.Rick Xu, President, Beijing EnergyEfficiency Technical Co., China, proposedthe Chinese government can learn from theEuropean experience of ecologicaldevelopment, implementing best practicesin China. At the same time, according toJoão de Jesus Ferreira, Managing Direc -tor, Vivapower, Portugal, ‘China can shareits experiences in green technologies withother Asian countries and the rest of the worldthrough technology transfers or exchanges.’

With five of the world’s 10 most populouscities, China is well known for its urbanlandscape. The scale of urbanization in Chinais without precedent in human history. ‘Theurbanization that took almost two cen tu riesin Europe is occurring in a decade in China,’reported Liu Hongchuan, Partner,Broad & Bright, China. In 2014, 55 percentof Chinese lived in cities, up from less than20 percent in 1980. Alfonso Vegara,President, Fundación Metropoli, Spain,

pointed out that ‘sustainable urbanization isnow very much needed for China’smodernization.’ Zhang Xiaodong,Chairman, Winhopes Investment Co., China,believed that urbanization should protectthe environment, support conservation, andattract more investment. China has to faceup to a re-build and a new-build programfor 300 million people in the next twodecades – demanding great fiscal andmanagerial resolve. ‘The improvement inwelfare of households is contingent on thekind of infrastructure that is put in place onthe countryside,’ proposed Steve Lewis,Chief Executive Officer, Living PlanIT,Portugal. According to Lydia Long, Ma -naging Director, EA Pacific Group, China,‘sustainable urbanization also means greaterrecognition for China’s migrant workers asurban residents.’

Zhang Xiaodong, Chairman,Winhopes Investment

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Rick Xu, President, Beijing EnergyEfficiency Technical Co.

Henry Weil, Professor, Sloan School of Management,MIT, USA

Rob Morrison, Chairman, H.R.L. Morrison & Co, New ZealandLiu Hongchuan, Partner, Broad & Bright, China João de Jesus Ferreira, Managing Director,Vivapower, Portugal

Youth is changing the way, in China andelsewhere. Where is China’s youth headed?And how can China’s new generation makethe most of its potential and resources?Ambitious young people who pursue careerswith traditional companies are starting tochange them from within. Liu Yiman,Managing Director, Huashang EducationGroup, China, noted that young employeesare not interested in working seven days aweek to get their work done. Workingattitudes are changing in China as well.‘Foreign firms need to get inside thepsyche of young and modern China,’ addedLi Mingyi, Chairman, Tonghehui Entre -preneurs Business Club, China.

Quality education systems will provideyoung people with the skills they need to play a part in China’s economic trans -

forma tion and help boost innovation and productivity. ‘Education is key forinnovation-based growth,’ saidDimosthenis Manginas, Chairman,Manginas and Partners, Greece. PieterPerrett, Professor, University of AppliedSciences Northwestern Switzerland,Switzerland, stressed the importance ofChina’s commitment towards highereducation building on an already strongtechnical base. José Pedro Freitas,President, Mota-Engil, Portugal, addedthat a key attribute of youth was having noburden of the past and hence their abilityto look forward to the future. ‘Education isa country’s most valuable asset,’ ZhengSuhui, Vice Dean, Graduate School ofCommunication University of China, China,continued. According to Edgar Bullecer,Co-Founder and Managing Trustee, ThePaglas Group, Philippines, China needsmore focused efforts to match the skillsthat are needed in fast evolving labourmarkets with the type of education on offerin the country.’ ‘China needs talent,’ saidMichael A. Gurevich, Managing Partner,MSV Partners, USA, ‘Businesses need towork closely with universities to define theskills the country will need,’ he added.

In China, consumer behaviour – especiallyamong the younger generation – is changingrapidly. ‘Concurrently, ambitious Chinese

Lou Marinoff, Professor of Philosophy,The City College of New York

Zheng Suhui, Vice Dean, Graduate School of CommunicationUniversity of China

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Li Mingyi, Chairman, Tonghehui Entrepreneurs Business Club

Liu Yiman, Managing Director, Huashang Education Group Pieter Perrett, Professor, University of AppliedSciences Northwestern Switzerland

Edgar Bullecer, Co-Founder and Managing Trustee,The Paglas Group, Philippines

firms want to become globally brandedplayers,’ said Diana Chou, ManagingDirector, L’VOYAGE, Hong Kong SAR.‘How are tastes changing in China and inthe world,’ asked Zhang Ying, AssociateDean, Rotterdam School of Management,The Netherlands, on a panel called ‘Meet theFuture Chinese Consumer’. Some Chinesefirms have done the right things in terms ofbranding, from advertising to Olympicsponsorships to logo design to the manu -facturing of endurable goods. ‘But this hasnot been enough to enable them to makethe transformation from local to globalbrands’, opined Zhu Li, Director,Confucius Institute, Portugal. According toCui Wanyou, Executive Vice Chairman,Langfang Federation of IndustrialEconomics, China,‘not many Chinese brandsyet have figured out a way to play on theworld stage, despite the exponential growthof many Chinese firms.’ ‘A reason couldbe that when Chinese firms have such animmense home-based market, there is notas much pressure to move beyond thecountry’s borders. The local market issufficient enough to fuel exponentialgrowth,’ ex plai ned Lou Marinoff, Pro -fessor of Philosophy, The City College ofNew York, USA.

Chinese firms are said to be different fromtheir global counterparts. How the world

sees China and Chinese firms, and howChina and Chinese entrepreneurs see theworld, asked Liu Jingyi, Editor-in-Chief,Global China Insights, The Netherlands, ona breakfast panel. Despite the dynamiceconomic relations between China and itsglobal partners, the knowledge gaps abouteconomy, society, culture remain large.With China’s growing influence on theglobal stage, domestic and internationalperceptions might be changing. What roledo culture and values play in advancingcorporate globalization? How do Chineseentrepreneurs succeed amid rapid cultural,technological and economic shifts? ‘ManyChinese citizens dream of advancing Chinabased on the respect for culture, family, andnature,’ stated Albert Teo, Vice President,Asia Pacific CEO Association, China. ‘AndChina’s cultural legacy is beginning to

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Cui Wanyou, Executive Vice Chairman, Langfang Federation ofIndustrial Economics

Janusz Pietkiewicz, Vice President,Employers of Poland

Lydia Long, Managing Director, EA Pacific Group, China

Michael A. Gurevich, Managing Partner, MSV Partners, hosting the youth panel

Steve Lewis, Chief Executive Officer, Living PlanIT Zhang Ying, Associate Dean, Rotterdam School of Management, The Netherlands

impact the world,’ affirmed On Kit Tam,Member of the Board, Australia ChinaBusiness Council, Australia.

According to Katarzyna Nawrot, Pro -fessor, Poznan University of Economics,Poland, ‘there is not such a concept as aChinese style corporate culture or a typicalChinese leadership style. While there aresome similarities between Chinese compa -nies, each has its own unique corporateculture.’ ‘Some companies move veryslowly, but others move very, very fast,’confirmed Gregor Heinecke, ChiefExecutive Officer, Transcontinental M&AAdvisory, Germany. Mirjana D. Perko,Chairperson, inCon, Slovenia noted that‘Chinese firms start to delegate authority topreserve flexibility and accelerate productinnovation. Choi Man Hin, Director,Estoril Sol, Portugal, brought a further

concept into the discussion: diversity.‘Chinese firms need to embrace morediversity. When its potential is tapped,diversity is a powerful tool that increasestheir wealth,’ he said.

According to Luis Filipe de CastroHenriques, Member of the Board, aicepPortugal Global, Portugal, ‘the acquisitionof a minority share of EDP by China ThreeGorges (CTG) was a special moment forbusiness relations between Portugal andChina.’ This transaction was followed byState Grid Corporation of China (SGCC)taking a stake in Portugal’s national powergrid, Redes Energéticas Nacionais (REN).China’s largest investment fund Fosun tookover Fidelidade, the largest insurancecompany in Portugal, and Fosun Propertyhas helped to manage its €700 million realestate assets. ‘These acquisition are thestarting points for more strategic invest -ments by Chinese firms in Portugal,’ saidSergio Martins Alves, Secretary General,Portuguese-Chinese Chamber of Com mer ce,Portugal. ‘It is reasonable to assume that, ifthe opportunity appears, the Portuguesegovernment will allow more Chinese in vest -ments in other strategic sectors of its eco -no my, such as banking, telecommuni ca tions,or transport,’ sug gested Francisco Veloso,Dean, Católica Lisbon School of Business &Economics, Portugal.

Francisco Veloso, Dean, CatólicaLisbon School of Business &Economics

Albert Teo, Vice President, Asia Pacific CEO Association

On Kit Tam, Member of the Board, Australia China Business Council

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Mirjana D. Perko, Chairperson, inCon, Slovenia

Katarzyna Nawrot, Professor, Poznan University of Economics, Poland

Gregor Heinecke, CEO, Transcontinental M&A Advisory, Germany

‘A positive attitude toward Chinese invest -ments has been the major motivationalfactor for our commitment to Portugal,’ saidHiroki Miyazato, Chairman, HaitongBank, Hongkong SAR. Portugal with itsdiverse industrial and creative sectors is anatural partner of choice,’ reportedMazen Darwazah, Chairman, HikmaPharmaceuticals, Jordan. According toJosé Pedro Soares, Chairman, APS –Administração dos Portos de Sines e doAlgarve, Portugal, ‘nearshoring to Portugalprovides a viable strategic option for Chinesefirms, with end users sending processes tolocations with a cultural, regulatory andphysical proximity.’ Geographical proximitydefinitively translates into easier access andcommunication,’ said António MelloCampello, Managing Partner, BluecrowCapital, Portugal. ‘Sizable opportunitiesexist for Portuguese firms that can provideinnovative solutions to support China’sgrowth where the right process can make ahuge difference,’ Fernando Freire,Founder and President, Edeluc, Portugaltold participants.

With investors nervously watching theShanghai stock market, Chinese are the nowbiggest foreign buyers of Portuguese realestate. ‘The country is seeing a huge influxof Chinese buyers, both investors and owneroccupants, thanks to low prices and a special

schema – the golden visa programme – setup by the Portuguese government toattract Chinese investors,’ said CarlosVasconcellos, Chairman, Quantico,Portugal. ‘Chinese buyers accounted formore than 80 percent of the residentpermits issued under the program last year,’reportedWang Guanlin, Chairman,Yusend Property Group, China. As the widereconomy struggles to get back on track,the Portugal’s tourism and real estatesector – fuelled by Chinese investments – isgoing from strength to strength. ‘Portugaland other geographies around the worldhave become major destinations for Chinesetourists and investments in tourism relatedreal restate,’ said Kimball J. Andrews,Executive Chairman, Asia Star Capital,Australia.

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Luis Filipe de Castro Henriques,Member of the Board, aicep Portugal Global

Sergio Martins Alves, SecretaryGeneral, Portuguese-ChineseChamber of Commerce

Choi Man Hin, Director, Estoril Sol

Mazen Darwazah, Chairman, Hikma Pharmaceuticals, JordanLiu Jingyi, Editor-in-Chief, Global China Insights,chairing a breakfast panel

Hiroki Miyazato, Chairman, Haitong Bank

George Betz, Head of InternationalBusiness Fine & Country, United Kingdom,conveyed that tourism will play a bigger andbetter role in both China’s and Europe’sfuture. ‘Tourism can drive development ofother complementary sectors includingtransport, infrastructure and real estate,’he explained. Panellists debated what takesto thrive on this new wave of outboundtourism and real estate investments.

In the memory of the event, IvanTselichtchev, Professor, Niigata Uni -versity of Management, Japan, presentedto the City of Cascais the Portuguesetranslation of his book ‘China versus theWest’ containing a comprehensive analysisof the balance of power and economic rela -tions between China and major Westernnations, as well as at insights into the Chineseeconomic model.

Announcing the 2015 Chinese BusinessLeaders of the Year, Horasis – togetherwith the City of Cascais – celebrated twooutstanding entrepreneurs who have beenbuilding and leading successful Chinesefirms: Guan Jianzhong, Chairman,Dagong Global Credit Rating, and YanJiehe, Chairman, China Pacific Construc -tion Group. We recognized and honouredthose business leaders as they excel inentrepreneurship, innovation and leader -ship. ‘The chosen business leaders haveimpacted the economic development andglobal integration of China,’ said MiguelPinto Luz, Vice Mayor of Cascais, Portugal.

On the closing plenary, participants askedhow Chinese firms should prepare for thefuture. Where are the opportunities forgrowth? And how do Chinese firms drivethe next wave of globalization? ‘Chineseentrepreneurs need to recognize andharness the momentum created by globalopportunities with business models thatfulfil the expectations of global markets,’Paul Judge, Alderman of the City ofLondon, United Kingdom said. According toMichael Yeoh, Chief Executive Officer,Asian Strategy & Leadership Institute,Malaysia, ‘Chinese firms are well advised toprove that they are different in a way that isrelevant to the world’s consumers.’

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George Betz, Fine & Country, United Kingdom, asking a question Fernando Freire, Founder and President, Edeluc

Wang Guanlin, Chairman, Yusend Property Group

Guan Jianzhong, Chairman, Dagong Global Credit Rating, receiving the awardAward winner Yan Jiehe, Chairman, China Pacific Construction Group

‘Innovation is most essential to upgradingthe Chinese economy and improving itsperformance,’ William Haseltine, Chair -man, ACCESS Health International, USA,suggested. ‘For sure, we will drive the nextwave of globalization,’ added ZhangXiaodong, Chairman, WinhopesInvestment Co., China.

The 2015 Horasis China Meeting waswrapped up during the gala dinner at theCasino Estoril. The strategic partnershipwith Portugal is of great importance toChina and one in which both countries arecontinuing to invest. An occasion to revelin newly-forged networks and friendships,the dinner offered further debates andreflections. Miguel Pinto Luz, ViceMayor of Cascais, Portugal , said in hisclosing remarks thin Cascais exemplifiesthe spirit of dialogue and global economicgrowth. And he observed the Horasis ChinaMeeting was witness to a large number ofB2B meetings that will pave the way forPortugal’s trade with China.

The day after the event, participants wereinvited to join a guided tour of Cascais andits surroundings. The warm climate, beaches,landscapes and array of hotel and culinaryoptions make Cascais one of the most soughtafter destinations. Participants jointlytravelled round the city by coach and strolledthrough Cascais’ colourful old town.

We at Horasis are very pleased with theresults of the 2015 Horasis China Meetingand the feedback we have received fromparticipants in the event. The meeting wasdesigned for foreign companies who wantto acquire the fundamentals of successfulbusiness with China. Also, the meetingbroadened the horizon of Chinese firms tothe different approaches of doing businessin Europe and the world.

‘Innovation is most essential toupgrading the Chinese economy andimproving its performance’ William Haseltine, Chairman, ACCESS Health International, USA

Paul Judge, Alderman of the City of London

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Kimball J. Andrews, Executive Chairman, Asia Star Capital, Australia

António Mello Campello, Managing Partner, Bluecrow Capital

Miguel Pinto Luz, Vice Mayor of Cascais, speaking during the closing dinner

Michael Yeoh, CEO, Asian Strategy & Leadership Institute, Malaysia

William Haseltine, Chairman, ACCESS Health International, USA

By bringing together leaders from so manydifferent backgrounds, this meeting provi -ded an ideal framework for setting a boldagenda and taking the initiative on the newgeneration of Investments, innovation andtransformational projects. We hope thisunparalleled opportunity for dialogue willinfluence the future course of China and itspartners.

On behalf of Horasis, I would like per -sonally to thank the Government ofPortugal, the City of Cascais, theChina Federation of IndustrialEconomics, as well as the co-chairs, co-organizers, knowledge partners, and allparticipants. This Horasis China Meetingwas a unique experience which would nothave been possible without the dedicationand enthusiasm of our friends andpartners.

It is our hope that the meeting willcontinue to serve as an important platformfor stimulating thought and creativesolutions. Horasis looks forward to yourcontinued engagement and to welcomingyou to the 2016 Horasis China Meeting.We also take great pleasure to invite you totake part in our other upcoming meetings,namely the Horasis Global Meeting,Horasis Asia Meeting, Horasis IndiaMeeting, Horasis Arab Meeting and theHorasis Russia Meeting.

Dr. Frank-Jürgen RichterChairmanHorasis: The Global Visions Community

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The Horasis China Meeting gathered a collectinve audience of 300 participants

Participants share a light momentExecutive Vice Chairman Xiong Meng and President Carlos Carreiras exchanging gifts

During one of the plenary discussions

Plenary – China’s Relations with Lusophone Countries

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Chinese President Xi Jinping is visiting theUS and meeting US President Barack Obamain the White House this week. They met inBeijing last November when they agreed onstronger voluntary efforts against atmosphericpollution – hopes again run high for newagreements to be made. Of course therewill be a public agenda, but their manyaides will hold wide discussions, some willfocus on trade and on the Trans-Pacific TradeAgreement.

World trade volumes faltered after thefinancial crash of seven years ago but thereare signs of renewed optimism as earlierinitiatives come into operation. The expan -sion of the Suez and the Panama canals arevirtually complete and will allow the largestof ships to pass through. And, well-timed,more ships carrying up to 19,000 containersare being deployed, as well as massive bulkships and car carriers like the Hoegh Autolinerthat can carry 8,500 cars. They epitomisehigh economies of scale and a belief in thefuture of global trade.

Up to the 1970s the world was generally inbalance with respect to trade and its mone -tary implications, and then gradually therewas massive change. The US achieved a large

deficit of US$ 820 billion in 1990 which hasnow been reduced to US$ 700 billion. InEurope, Germany was long its economicpowerhouse and has a national trade surplusof US$50 billion. And China, which wasroughly in balance until the 1990s, now hasa US$ 90 billion surplus. Most imbalancestake a few years to smooth out because theyare subject to both national and inter natio nalforces which take some time to work throughtheir respective economies. National govern -ments, officials and business leaders need tobe cajoled into greater efforts, new proces -ses and training needs to be instigated andthe processes of marketing, manufacturing,transporting and selling finalised before thenational finances are seen to move.

For example, in Germany with its largetrade balance (which is very much greaterthan China’s when compared per person) itis suggested that it increase infrastructurespending, raise wages and undertake fiscalreforms to permit greater inward purchases.These changes will take time to enact. Yetwe see that China has already undertakenthese macro-economic suggestions – it hasmassively invested in all its transport systems(road, rail and air-, river- and sea-portsacross the nation), in river-flow diversions(to bring more fresh water to the drynorthern areas) and in housing (200 newlarge towns are being built). It is allowinggreater inward investment and simplifyingmany regulations. These changes will helpbalance its money-trade fluctuations. The US,however, is somewhat mired in its internalpolitics and little will be changed to sub -stantially alter its economic activity (whichis still high as it remains the world’s largesteconomy) until perhaps a year after itspresidential election in November 2016.

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A Meeting of the Two Largest Economic Powers By Frank-Jürgen Richter, Business Times, September 23, 2015

Delegates taking notes Zhao Renfeng, Managing Partner, Kreab Beijing

John B. Kidd, Research Fellow,Aston Business School, United Kingdom

Many economists suggest that it is not themacro but the micro-economy that rules: itis the work of ordinary people that deter -mines local wealth and thus national wealthso benefitting the balance of trade in thelonger term. But a nation has to create themassive infrastructures that aid enterprise –China has followed the earlier examples ofthe US (1960s interstate road building) andEurope (the long-distance road and railintegration from 1990 onwards). We expectnow that China will rapidly raise its pro duc -tivity in its new inland development regionswith everyone working smarter to live aricher life.

Total Factor Productivity (TFP) measuresoutput against input and the efficiency ofconversion. Of course it is not an exactmeasure but it is used to measure the relativeefficiencies of nations, and over time can beused to judge how smartly entrepreneursare working. Researching TFP at currentpurchasing power parity (a useful way ofequating monetary exchange rates) andcomparing with the US base = 1.0 we findthe TFP for Germany rose steadily from the1950s as it redeveloped after the last WorldWar through youth education and investingin top-class machinery. By 1980 it was asefficient as the US, but has since fallen to0.82 by 2010 (the last data year reported byFRED in St Louis, US). China on the other

hand grew from a low base to reach 0.5 byabout 1958, then falls a level between 0.3and 0.4 to the present day. Last year Chinawas the world’s largest market for industrialrobots and one factory in Dongguan, perhapsextreme, has reduced its 650 workforce to60 while its robots produce parts for mobilephones. Moving to smart working willbenefit inland China and the wealth of itspeople.

Germany’s wealth derived within its town -ships and its small and medium enterpriseswho were administratively guided to beentrepreneurial and export-orienteddeveloping its so-called Mittelstand. China did not permit such private SMEsuntil after its “opening up” from the late1980s. The IMF notes Germany’s economicgrowth was almost linear from a modestbase of US$ 4,300/capita in 1950 tobecome US$47,600/cap by 2014.

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Discussion on China’s firms driving globalization

The meeting was covered by the international media

Participants exchanging views

Lu Ying, Director General ofInformation, China Association of Pharmaceutical Commerce

Avi Rabinovich, Chief ExecutiveOfficer, Creative Links, Israel

China in com parison had a GDP of onlyUS$614/cap in 1950 and has grown toUS$7,600/cap by 2014 – though its basedid not lift much until 1990 when furthercoastal Special Economic Zones (SEZ) werecreated. Now, with its vast new infra struc -ture China is well poised to re-ignite itsentrepreneurial spirit, developing moregoods truly made in China (not simplyassembled). To do this effectively it willneed to buy more high-tech engineeringgoods from, say, Germany so aiding thelatter’s trade balance.

The meeting this month in the US betweenthe heads of the two largest economic powerswill have many beneficial outcomes for allnations. I wonder what surprises the leadersmay offer to us.

One of the boardroom panelsDelegates arrive for the opening reception

Participants gather for the opening dinner David Bevan, Professor, CEIBS, China

Francisco Mantero, President,Portuguese Association forEconomic Development andCooperation

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Carlos Carreiras, President of Cascais meeting with Wu Huatai,Chairman, Shanxi Coking Coal Group

A show took participants on a glamorous time travel trip The evening was framed by traditional Portuguese fado music

Visiting Cascais’s colourful old townA group of participants discover the surroundings of Cascais

Cascais’ world-famous seashores During the welcome reception

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