Global China Business Meeting10-11 November 2013, The Hague, The Netherlands

a Horasis-leadership event

Report

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

Upcoming Horasis events:

Global Russia Business Meeting Valencia, Spain, 6-7 April 2014

Global India Business Meeting Liverpool, United Kingdom, 22-23 June 2014

Global China Business Meeting location and dates tbc

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Global China Business Meeting10-11 November 2013, The Hague, The Netherlandsa Horasis leadership event

Co-hosts:City of The Hague

Netherlands Council for Trade Promotion

China Federation of Industrial Economics

Co-chairs:Dirk Jan van den Berg President, Delft University of Technology, The Netherlands

Peter Chen Chief Executive Officer, Forest Power & Energy Holdings, USA

Alan Hassenfeld Chairman, Hasbro, USA

Huang Nubo Chairman, Zhongkun Investment Group, China

Jia Yanlin Chairman, Baosteel Metal, China

John M Neill Chairman and Group Chief Executive, Unipart Group, United Kingdom

Ben Noteboom Chief Executive Officer, Randstad Holding, The Netherlands

Vachara Phanchet Chairman, Sittipol Holdings, Thailand

Tan Chin Nam Chairman, Temasek Management Services, Singapore

Alfonso Vegara Chief Executive Officer, Fundacion Metropoli, Spain

Wilfred Wong Ying-Wai Chairman, Hsin Chong Construction Group, Hong Kong SAR

Xia Hua President, Eve Group, China

Xu Heyi Chairman, Beijing Automotive Group, China

Yan Xiaoyan President, Bank of Beijing, China

Co-organizers:

China Entrepreneur Magazine

Committee 2005

International Chamber of Commerce – Hong Kong, China

Pacific Basin Economic Council (PBEC)

China Women School

World Eminence Chinese Business Association

Strategic Partner:

Rabobank

Knowledge Partners:

Baker & McKenzie

EY

TMF Group

The Steigenberger Kurhaus Hotel, venue of the Global China Business Meeting

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Table of Contents

Foreword 6

The Netherlands and China: Trade is Part of our DNA 26

China Headed for Another Massive Social Experiment? 30

The ‘Kurzaal’ – central venue of the Global China Business Meeting

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ForewordOn 10-11 November 2013, the 9th HorasisGlobal China Business Meeting took placein The Hague, The Netherlands. The eventgathered a collective audience of 350 en -tre preneurs and government officials. TheMee ting was organised by Horasis in part -ner ship with the Netherlands Councilfor Trade Promotion, the City of TheHague, and the China Federation ofIndustrial Economics.

The Global China Business Meeting, Horasis’flagship event on China, 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 entrepreneurship forgrowth and development. With this yearlymeeting on China, we aim to present aninterdisciplinary and systemic view of themajor economic, societal and technologicaldrivers currently at work in China and theworld. Also, participants engage in variousbusiness-to-business meetings on the side-lines of the event.

This report – which builds on the outcomeof the meeting – shall add insights on theway forward. When summing up the GlobalChina Business Meeting, this report’s

purpose is twofold: first and foremost, itsaim is to document the events and debatesand to provide a comprehensive overviewof the conversations by the business leaderspresent at the meeting. Second, the reportshall unveil the general mood in China andthe world, embedding the Global ChinaBusiness Meeting in the context of today’smost relevant debates.

At the outset of the meeting, participantselaborated on the Third Plenary Session ofChina’s Communist Party’s CentralCommittee which took place at the sametime as the Global China Business Meeting.Chinese government leaders concluded thatliberalization will serve as a new engine foreconomic growth. The country’s leadershipchange and latest round of State Counciladministrative reforms are part of achanging business environment. In the past,China has relied on its strong export andmanufacturing sectors to boost growth.The Chinese government is now trying toshift the economic mix and gear it more toconsumption.

In August 2013, the government approvedthe establishment of the Shanghai Free TradeZone. It also released supporting policies,the most notable of which is the converti -bility of capital accounts in Chinese yuan.

Lilianne Ploumen, Dutch Minister for Foreign Trade, addressing participants

Ribbon cutting ceremony

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Jia Yanlin, Chairman, Baosteel Metal, China

Ding Zuofeng, Chairman, Fuyang Hospital, China

The Shanghai Free Trade Zone is regardedas a testing ground for broader reformsthat will help upgrade China’s economyand have particular significance for finance.

The 2013 Global China Business Meetingset out to highlight China’s economic futureagainst a background of profound globalchallenges. China is making an importantcontribution to the world economy – it hasbeen a source of dynamism in a weak andhesitant global recovery. Even in the face ofeconomic upheaval in much of the world,investors are generally bullish in theirapproach to China.

While the economies of Europe and the U.S.languish, China still enjoys relatively highgrowth rates and profitability. Anxieties ofa slowing to about 8 to 7.5% growth palein comparison with the challenges of thedeveloped markets of the west. China’seconomic growth rebounded in the thirdquarter 2013, easing pressure on the leader -ship for more stimulus and allowing themto focus on the country’s long-term econo -mic transformation.

Jochum Haakma, Chairman, Nether landsCouncil for Trade Promotion, The Nether -lands, said during the opening reception

that ‘I see China as the main source of opti -mism in the global economy.’ According toJan Peter Balkenende, Former DutchPrime Minister, ‘the Netherlands take therise of China and other developing countriesas an opportunity, and will closely cooperatewith China to meet global challenges andestablish sustainable partnerships.’

We were honoured by the presence of theleaders of some of the foremost Chineseand global companies to take a forthrightlook at China and the world, generating awealth of discussions, proposals, andsolutions. The gathering was joined by thefollowing meeting co-chairs: Dirk Jan vanden Berg, President, Delft University of

Liu Haiyan, Executive Vice Chairman, China Federation of IndustrialEconomics – China is confident of achieving its economic targets

Opening Plenary – China and World Economic Outlook

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Ge Jian, President, Zhongji Investment Co., China

Peter Chen, CEO, Forest Power & Energy Holdings, USA

Technology, The Netherlands; Peter Chen,Chief Executive Officer, Forest Power &Energy Holdings, USA; Alan Hassenfeld,Chairman, Hasbro, USA; Huang Nubo,Chairman, Zhongkun Investment Group,China; Jia Yanlin, Chairman, BaosteelMetal, China; John M Neill, Chairman andGroup Chief Executive, Unipart Group,United Kingdom; Ben Noteboom, ChiefExecutive Officer, Randstad Holding, TheNetherlands; Vachara Phanchet, Chair -man, Sittipol Holdings, Thailand; Tan ChinNam, Chairman, Temasek ManagementServices, Singapore; Alfonso Vegara, ChiefExecutive Officer, Fundacion Metropoli,Spain; Wilfred Wong Ying-Wai, Chair -man, Hsin Chong Construction Group,Hong Kong SAR; Xia Hua, President, EveGroup, China; Xu Heyi, Chairman, BeijingAutomotive Group, China; Yan Xiaoyan,President, Bank of Beijing, China.

Participants reached consensus that• China’s economic growth is still robustbut it is slowing.Yet as plans unfold foranother wave of urbanization and theeconomy transitions toward greaterconsumption there will be manyopportunities.

• China will take innovation as the maintheme and focus on transforming theeconomic development pattern at afaster pace. Social stability and quali ta -tive economic growth are key.

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

Jozias van Aartsen, Mayor of The Hague,The Netherlands, welcomed participantsduring a lavish and colourful opening cere -mony held at Nieuwe Kerk. ‘The Hague isdelighted to co-host this ninth Global ChinaBusiness Meeting,’ he told participants.‘The Hague will serve as important basefor Chinese firms to explore Europe.’

Liu Haiyan, Executive Vice Chairman,China Federation of Industrial Economics,China, said during the dinner function that‘China is confident of achieving its econo mictargets and will strengthen its cooperationwith the international community to en sureglobal economic growth.’ He illustrated thegovernment’s plans on moving an economydepending on big projects to an economydependent on consumer spending. ‘To boostdomestic consumption, we will tackle issues

‘China is confident of achieving itseconomic targets’Liu Haiyan, ExecutiveVice Chairman, China Federation of Industrial Economics, China

Chinese and Dutch authorities gather at the townhall

Jozias van Aartsen, Mayor of The Hague, welcoming participants

Shi Zhanwei, General Manager,Xuchang Rongxin Real EstateCo., China

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Diana Chou, Managing Director,Sino Private Aviation

of immediate concern to Chinese citizenssuch as employment, education, health care,housing and environmental protection,’ hetold participants. ‘The continuous growthof China's economy not only concerns thewellbeing of China but is also a contribu tionto the world economy,’ he added.

‘The discussions at the Global ChinaBusiness Meeting highlight China as a newcentre of globalization, and provide insightson the best practices in managing ourcorporations,’ said Chen Xu, Ambassadorof China to The Netherlands, China.

At the same function, S.A. Blok, Ministerfor Housing and the Central GovernmentSector, The Netherlands, emphasized the im -portance of the economic relations betweenChina and The Netherlands. On Europe’scurrent economic woes, the Minister saidthat ‘our approach to restoring economicgrowth is based on austerity in the short-term, reforms to prevent any future crisis

in the mid-term, and a long-term growthstrategy based on innovation and openmarkets.’

Participants had a rare opportunity to ex -plore China’s development from a varietyof points of view. An intensive programme ofplenary 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 logistics, financial servi -ces, urbanization, food and energy, as wellas more conceptual themes covering tradeand investment, entrepreneurship, brandingand technology. ‘Our approach to restoring economic

growth is based on innovation andopen markets’S. A. Blok, Minister for Housing and the Central Government Sector, The Netherlands

During the welcome dinner S. A. Blok, Minister for Housing and Civil Service, The Netherlands

Jochum Haakma, Chairman, Netherlands Council for Trade Promotion, The Netherlands

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Vincent Zheng, ManagingPartner, Capital First Partners,China

Wen Qiguo, President, Tianju Happy Group, China

At the packed opening plenary, LiliannePloumen, Minister for Foreign Trade andDevelopment Cooperation, The Nether -lands, told participants that ‘China’s deve -lop ment is an opportunity for the world.’She reviewed The Netherlands’s economicrelations with China and affirmed that ‘traderelations between China and The Nether -lands have been growing steadily. ‘We nowhave to find new avenues to strengthen ourworking relationship even further,’ she said.On the Netherlands, The Minister reported

that consumer confidence hit its highestlevel in more than two years, suggesting thatthe country’s recession is easing further.

‘The slowing world economy had a nega tiveeffect on China’s economic output. Marketvolatilities worldwide confirm how inte gra -ted the global economy has come. But thefundamentals of China’s economy areturning for the better,’ said Xiang Bing,Founding Dean, Cheung Kong GraduateSchool of Business, China. ‘The Chineseeconomy advanced at a faster pace in recentmonths,’ Xu Heyi, Chairman, Beijing Auto -motive Group, China, added, allaying fearsthat China was headed for a downturn.

According to Ben Noteboom, ChiefExecutive Officer, Randstad Holding, TheNetherlands, ‘the economic crisis in Europeis here to stay for a few more months.Deflation pressure will last. But I see light

‘China’s development is an opportunityfor the world’Lilianne Ploumen, Minister for Foreign Trade and Development Cooperation, The Netherlands

‘The fundamentals of China’s economyare turning for the better’ Xiang Bing, Founding Dean, Cheung Kong Graduate School of Business, China

‘The Chinese economy advanced at afaster pace in recent months’ Xu Heyi, Chairman, Beijing Automotive Group, China

Jan Peter Balkenende, Former Dutch Prime Minister

Karin van Rooyen, Co-founder,Federation BusinessWomen, The Netherlands

Mei Yan, Senior Partner,Brunswick – getting ready forbrands from China

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Chen Xu, Ambassador of China to The Netherlands

Henk Kool,Vice Mayor, City of The HagueVachara Phanchet, Chairman, Sittipol Holdings,Thailand

at the end of the tunnel.’ On the U.S.’ eco -no mic prospects, Peter Chen, Chief Exe -cu tive Officer, Forest Power & EnergyHoldings, USA, maintained that the last-minute U.S. debt deal is only postponingthe decline of global confidence in theU.S. financial system. ‘We need a strongU.S. economy. And we need a strong China,’he said. Wilfred Wong Ying-Wai, Chair -man, Hsin Chong Construction Group,Hong Kong SAR, concluded by stating that‘China’s recent economic advance stemsfrom continued but modest governmentstimulus efforts, tax cuts, more productionoutput and higher consumption.’ Panelistsagreed that China is lifting the globaleconomy.

Europe’s sovereign debt crisis and the U.S.fiscal crisis leave their impact on the world’spower equation. Meanwhile, China is risingas an economic super power. ‘Are we onthe cusp of The China Century?’ askedJean-Christophe Iseux Baron vonPfetten, President, Royal Institute forEast-West, United Kingdom. ‘We are

certainty envisioning a century which isdifferent from the Washington Consensus –let’s call it The China Century. But we haveno vision for what a post-American worldorder should be,’ said Alan Hassenfeld,Chairman, Hasbro, USA. ‘China’s role in theglobal arena is evolving. China will emergeas economic and political superpower,’reasoned Vachara Phanchet, Chairman,Sittipol Holdings, Thailand. ‘China’sdeepened cooperation with its SoutheastAsian neighbours as well as with the U.S.shall serve as a wake-up call for Europe. Werisk being left behind. We need to increaseour engagement with China,’ said Dirk Janvan den Berg, President, Delft Uni ver si tyof Technology, The Netherlands. Accordingto Jia Yanlin, Chairman, Baosteel Metal,

‘China’s recent economic advance stemsfrom continued but modest governmentstimulus efforts, tax cuts, more produc -tion output and higher consumption’Wilfred Wong Ying-Wai, Chairman, Hsin Chong Construction Group, Hong Kong SAR

Xu Heyi, Chairman, Beijing Automotive Group and Xiang Bing, Dean, Cheung Kong Graduate School of Business

WilfredWong Ying-Wai, Chairman, Hsin Chong Construction Group

Mao Donglai, Chairman,Shenxiancao Co., China

Chayan H. Shah, ManagingDirector, Premier’s Tea, India

Alan Hassenfeld, Chairman, Hasbro, USA – are we on the cusp of The China Century?

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China, ‘China won’t overthrow the existingorder – but it will become a part of it.’‘The rise of China does not have to triggera tweaking power transition,’ concludedXia Hua, President, Eve Group, China.‘We are a stable and reliable member of theinternational community,’ she added.

The Global China Business Meeting put aspotlight on China’s dynamic private sector.‘Chinese private firms are usually very ver -satile – they show a high level of flexibilityto adapt to rapidly changing consumer andmarket trends,’ said He Zhenhong, Pre si -

dent, China Entrepreneur Magazine, China.‘They are often more nimble and flexiblethan their Western counterparts, exploitingrapidly evolving market trends,’ addedRodria Laline, Chair, Intrabond HoldingsAsia, Hong Kong SAR. Ambitious Chineseprivate firms want to leave behind the roleof mere manufacturers to become brandedplayers. ‘We need to establish leading globalbrands,’ emphasized Shi Zhanwei, Gene ralManager, Xuchang Rongxin Real Estate Co.,China. ‘China can foster vibrant entre pre -neur ship while sticking to top-down eco -nomic development model. Economicplanning and entrepreneurship are not acontradiction,’ said Xu Weili, Chairwomen,Touping Group Corporation, China.

China is now not only a key destination offoreign investment, but Chinese companieshave themselves also become major inter -national investors increasingly lookingbeyond Chinese borders. ‘Key emergingeconomies are becoming important desti -nations for Chinese firms investing abroad,’said Adnan Akfirat, Chairman, TUCEM,Turkey. According to Charles Tang, Chair -man, Brazil-China Chamber of Commerce &

‘The rise of China does not have totrigger a tweaking power transition’ Xia Hua, President, Eve Group, China

‘China won’t overthrow the existingorder – but it will become a part of it’ Jia Yanlin, Chairman, Baosteel Metal, China

Rodria Laline, Chair, IntrabondHoldings Asia, Hong Kong SAR

Rajiv Biswas, Senior Director and Asia Chief Economist, IHS,Singapore

He Zhenhong, President, China EntrepreneurMagazine, hosting a panel on entrepreneurship

Dirk Jan van den Berg, President, Delft University of Technology,The Netherlands

XuWeili, Chairwomen, Touping GroupCorporation, China

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Xia Hua, President, Eve Group – the rise of China does not have to trigger a tweaking power transition

Industry, Brazil, China and Latin Americahave the potential to set up a significantbusiness partnerships.’ On the other hand,some Chinese firms have encountereddifficulties with direct investment in the USand Europe. According to Ge Ming, ViceChairman, China M&A Alliance, China,‘acquisitions of foreign companies soundlike an easy journey towards globalizationbut in reality they are rather difficult toaccomplish.’ ‘Most acquisitions conductedin the last years failed as the Chinese buyershave little experience in M&A, much less ofthe complexities involved in cross-borderM&A,’ Jin Zhongli, Deputy President,Chint Group Corp., China, added.‘However, business is booming like neverbefore, thanks to a combination of biggerand more ambitious Chinese firms, fiercercompetition and a slowing economy athome,’ maintained Thomas Gilles, Partner,Baker & McKenzie, Germany. ‘I believe thathaving roots in China will help us to globa -lize,’ said Vincent Zheng, ManagingPartner, Capital First Partners, China. ‘In China we are in two markets at the sametime. We have the developed markets in first-tier cities and we operate on the countryside – a developing market environ ment,’opined Hellen Song, General Manager,La China Capital, China. ‘This combinationof experiences in developed and developingmarkets gives us a good advantage when

internationalizing our operations,’ LiangHaiping, Chairman, Wansheng Group,China, reasoned. ‘Going global is Chinesefirms’ new imperative,’ concluded EdHotard, Partner, HAO Capital, China.

China is the world’s largest manufacturingpower – the country accounts for more as afifth of global manufacturing. But the era ofcheap China may be drawing to a close. ‘Costsare steadily rising and maintaining satis fac -tory levels of profitability is increa singlydifficult – for both foreign investors as well

‘Deflation pressure will last. But I see light at the end of the tunnel’Ben Noteboom, Chief Executive Officer, Randstad Holding, The Netherlands

Adnan Akfirat, Chairman, TUCEM, Turkey

Sergei Millian, President, Russian-American Chamber of Commerce in the USA

Charles Tang, Chairman, Brazil-China Chamberof Commerce & Industry

Hellen Song, General Manager, La China Capital, China

Thomas Gilles, Partner, Baker & McKenzie, Germany, hosting the session ‘Going Global – The New Imperative’

Ed Hotard, Partner, HAO Capital, China, asking a question

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as indigenous firms,’ said Feng Leiming,Secretary General, Tianjin Institute forInter national Development Studies, China.Chinese authorities have raised the mini mumwages in many provinces and localities overthe last couple of years. Labor costs are alsoincreasing due to demographic factors –labor cost pressures are being exacerbatedby a shrinking labor supply. ‘It is not cheaplike it used to be. Wages, which make up athird our costs, have doubled in the past fouryears at our factories,’ lamented PaoloFerrario, Chief Executive Officer, SIADMacchine Impianti, Italy. ‘Productivity gainsare now a priority,’ added John Leggate,Founding Partner, Quintal Partners, UnitedKingdom.

JP Sharp, Managing Director China, TMFGroup, China, observed that some low-tech,labour-intensive industries such as clothinghave already left China. ‘A number ofemer ging markets in South East Asia likeIndonesia and – potentially – Myanmarprovide alternatives,’ Ping Chen, Presi dent,China Investment Partners, China, said.‘India is appealing as well, and may representthe next frontier for manufacturing,’ addedGour Saraff, Founder, Solar Global Ser -vices, Spain. ‘China is still the place to be,’juxtaposed Markus Gärtner, Director,Gapa News Agency, Canada. ’China is huge.The country’s labour pool is large andflexible enough to accommodate manpowerfor low-tech industries as well,’ pinpointedRoger Parodi, Managing Partner,Silverhorn Principal Investors, China.‘China’s rising labour costs are a blessing indisguise – as the economy is moving up thevalue-chain. The old stereotype about low-wage sweatshops is out-of-date – China’sfuture competitiveness lies in high-tech,’reasoned Jin Zhongli, Deputy President,Chint Group Corp., China. Also, the rise ofChina’s service-sector output signals thatthis sector continues to offset slowingmanu facturing activity,’ concluded HenryBirdseye Weil, Professor, Sloan School ofManagement, MIT, USA.

Ben Noteboom, CEO, Randstad Holding, The Netherlands

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Roger Parodi, Managing Partner,Silverhorn Principal Investors,China

Ping Chen, President, China Investment Partners, China

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

J P Sharp, Managing Director China, TMF Group, China Feng Leiming, Secretary General, Tianjin Institutefor International Development Studies

For Multinationals, the current Chinese eco -nomic environment is a time of transition.The government is no longer solely con -cen trating on GDP growth, and policiestowards foreign investment have becomeless favourable than some years ago.‘Navigating changes, the mixed pattern ofboth threats and opportunities, is the callof the day,’ said Silvano Coletti, ChiefExecutive Officer, Chelonia, Switzerland.Many Multinationals find themselves in astrained environment with a growing im -portance of product safety issues, environ -mental issues, labour unrest and disputesarising from partnerships with local com -panies. According to Harald Einsmann,Member of the Supervisory Board, Tesco,United Kingdom, ‘managing disputes withlocal partners and authorities can be verysensitive.’ Indeed, there is an increasingnumber of Multinationals finding themselvesin public disputes with Chinese partners andcompetitors. Schneider Electric, Danone andConocoPhillips are examples of companiesthat experienced public disputes in pastyears. ‘Success still depends upon theability to develop local partnerships thatare productive and meaningful,’ opinedKimball J. Andrews, Executive Chair man,Asia Star Capital, Australia. Given that Chinais now the world’s second biggest R&Dmarket, there is a shift in Multinationals’attitudes to innovation in China. A prefe -

rence for the protection of intellectualproperty rights is giving way towards openinnovation models. ‘Innovation in China isthriving,’ said Stacy Kenworthy, ChiefExecutive Officer, OptiGlobal, USA. ‘Wewant to take advantage of China’s talent,’he continued.

Despite China’s unprecedented economicsuccess, the country has many inherentrisks. The Chinese economy is consolida -ting, anti-trust investigations are becomingmore frequent and the new administrationhas launched a series of anti-corruptioncampaigns. ‘Risk profiles are certainlychanging,’ Hans Bruning, Executive Di -rector, Netherlands Institute for Multi partyDemocracy, The Netherlands observed.

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Jin Zhongli, Deputy President,Chint Group Corp., China

Paolo Ferrario, Chief ExecutiveOfficer, SIAD Macchine Impianti,Italy

Harald Einsmann, Member of the Supervisory Board, Tesco

Liang Haiping, Chairman,Wansheng Group, ChinaGe Ming,Vice Chairman, China M&A Association,China

Hans Bruning, Executive Director, Netherlands Institute for Multiparty Democracy

‘What economic, political and social risksmight threaten the Chinese economy in thecoming years? How to mitigate those risks?’David R. Young, Chairman, OxfordAnalytica, United Kingdom, asked. Somerisk exposure is internal to firms resultingfrom years of high growth. ‘Internal riskmanagement systems and processes areoften not solidified,’ Colin Hill, Chair man,CDH Group, Hong Kong SAR, maintained.

Traditional business development strategiesbased on guanxi (relationships) are in crea -singly obsolescent as China’s bureaucracybecomes more professional. The localmanagement of Multinationals should nottake the special conditions of the Chinesemarket as an excuse for corruption andnon-compliant business behaviour,’ said

David Clive Price, Author of ‘The MasterKey to Asian Business Success’, UnitedKingdom. ‘We have to allow our economyto become leaner and more modern,’conveyed Annie Zhan, Chief ExecutiveOfficer, SkyBridge, China. ‘Historically,Confucian influence has reinforced thecentral role of entrepreneurship in Chinesesociety, with China leading the world in thenumber of company founders, both inMainland China and overseas – where thehuaqiao (overseas Chinese) lead the way,’ saidMichael Yeoh, Chief Executive Officer,Asian Strategy & Leadership Institute,Malaysia. ‘Chinese philosophy and customsshape indeed the fabric of China’s society andeconomy,’ commented Lou Marinoff,Professor of Philosophy, The City Collegeof New York, USA. According to Lu Ang,President, Artrade Auction Co, China, ‘theConfucian norm of harmony is unconven -tional by Western standards. In Westernmanagement practice, there is often afeeling of opposition between upper andlower positions. Confucian values promotethe establishment of contacts that build upsocial capital within an organization. ‘This, inturn, can become a resource for inno va tion,’concluded Jose Maria Muñoz, FoundingPartner, MCH Private Equity, Spain.

An ancient Chinese proverb says that womenhold up half the sky. Participants debated

David R.Young, Chairman, Oxford Analytica, United Kingdom The meeting gathered participants from all around the world

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

Lou Marinoff, Professor ofPhilosophy, The City College of New York, USA

Lulu Zhou, Managing Partner, China Foundation for Global Partnership, USA

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how female entrepreneurs are shapingChina’s economy. ‘Given salary disparitiesand still-persistent discrimination, the idealput forward by the proverb is still far fromreality,’ commented Christina Boutrup,Journalist, Denmark. ‘How can women beempowered to achieve gender equity?’ askedJackie Wang, Founder and President,China Women School and Future ChinaSociety, China. An increasing number ofChinese women have indeed created theirown companies. A variety of factors has ledto the success of female Chinese entrepre -neurs,’ said Kang Haishu, Director, MinzuSecurities, China. ‘Chinese women arerelatively ambitious. And society is finallyrewarding them for their endeavors andhard work,’ said Lulu Zhou, ManagingPartner, China Foundation for GlobalPartnership, USA. China’s rise to globaleminence is a direct result of women’seconomic empowerment,’ concluded MajaBacovic, Professor, University of Monte -negro, Montenegro.

China is in need of well-groomed managerswith good university degrees, able to take onresponsibility and fluent in English. Whilethe number of graduates is increasing, thechurn out is still far from the ever-growingneeds of Chinese firms – as well as foreignfirms operating in China. ‘There is such ahigh need for talent,’ said Wayne W. Wang,

Chairman, CDP Group, China. The crucialconsequence of this talent shortage is a highstaff turnover. ‘Young employees look for agood salary, job offering security, a careerplan and opportunities,’ explained TianYuan, Director, Golder Ciming HealthManagement, China.

China’s education system is being madeready for the challenges of globalization.‘How will the country’s educational insti tu -tions nurture the talent resources necessaryto sustain the next wave of economicgrowth?’ asked Hamira Riaz, ManagingDirector, H Riaz Consults, United Kingdom.‘Education is a very hot topic here,’ saidJason L. Ma, Founder and Chief ExecutiveOfficer, ThreeEQ, USA. ‘Everybody wantsto get the best education offered on the

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Jason L. Ma, Founder and Chief Executive Officer, ThreeEQ, USA

Sergey Demin, Chairman, Synergy Development, RussiaAnnie Zhan, Chief Executive Officer, SkyBridge, China

Karen Tang, Executive Director, The Better Hong Kong Foundation

Maja Bacovic, Professor, University of Montenegro

WayneW.Wang, Chairman, CDPGroup, China

market. Costs are rising. And new institutionsare emerging. I am observing a real boom,’Kai Vettel, Managing Director, Pack Per for -mance, Germany, continued. ‘The trick isto link supply and demand, and to nurturethe type of graduates the Chinese economyurgently needs,’ claimed Zhao Lei, Chair -man, Wangxing Group, China. ‘We mustkeep learning to integrate global resources,’pinpointed Li Guanghui, Chairman, Xi'anTypical Industries Co., China.

China increasingly attracts plenty of brightyoung returnees who would like to act asentrepreneurs within the world’s mostpromising entrepreneurial hotbed. Everyyear, thousands of Chinese who have studiedor worked abroad return home. Many have

mixed with the world’s best entrepreneursin the Silicon Valley, having seen first-handhow the Valley works,’ said Stan Fung,Managing Director, FarSight Ventures, USA.Indeed, Silicon Valley veterans have foundedsome of China’s most interesting firms,such as Tencent and Baidu. According toWang Jincheng, Professor, Tianjin ForeignStudies University, China, Chinese firms are‘increasingly pursuing technology-driveninnovation strategies.’ ‘How can they leveragemajor shifts in the global economy to ensurethat innovation and technology increasecorporate performance?’ asked J.T. Li,Associate Dean, The Hong Kong Universityof Science and Technology, Hong Kong SAR.‘The emergence of new tech firms and anew system for financing represent a keyopportunity in China’s transition,’ saidHenk Schulte Nordholt, Managing Di -rector, Hofung Technology, The Nether lands.‘I wish for China to be seen as a land oftech opportunity not a black hole of theftof intellectual property and cybercrime,’concluded Scott E Rickert, Chairman,Nanofilm, USA.

‘How can Chinese and European citiesjoin forces to meet the demands of theworld’s urban population?’ Tan Chin Nam, Chairman, Temasek Management Services, Singapore

Plenary – Envisioning The China Century

Scott E Rickert, Chairman, Nanofilm, USA

Wang Jincheng, Professor, TianjinForeign Studies University

Tan Chin Nam, Chairman, Temasek Management Services, Singapore –how do Chinese firms drive the next wave of internationalization?

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During the panel on Sustainable Urbani sa -tion, participants examined the key infra -structure challenges and opportunitiesfacing modern cities. In terms of physicalinfrastructure, China’s most dynamic cities– such as Beijing, Shanghai and Shenzhen –already resemble Western metropolises likeNew York and London. ‘But how can Chineseand European cities join forces to meet thedemands of the world’s urban population?’asked Tan Chin Nam, Chairman, TemasekManagement Services, Singapore.‘Sustainable urbanization is a prerequisitefor China’s modernization,’ stated KarenTang, Executive Director, The BetterHong Kong Foundation, Hong Kong SAR.Housing needs are the imperative tobuilding a modern city. Aesthetic archi tec -ture, on the other hand, is a nice add-on,’claimed Liu Thai Ker, Chairman, Centrefor Liveable Cities, Singapore. ‘After all,China’s cities must be attractive to attractand retain talent,’ argued Alfonso Vegara,President Fundacion Metropoli. ‘I see idealChinese cities having a pleasant environ ment,with a smooth traffic and being pollutionfree,’ added Gijs van den Boomen, Exe -cutive Director, Kuiper Compagnons, TheNetherlands. Sergey Demin, Chairman,Synergy Development, Russia, emphasizedthat ‘China’s urban development had oftenbeen at the expense of the environment.’

‘Developing the economy and fighting pollu -tion in big cities are not mutually exclusive,declared Sein-Way Tan, Chairman, GreenWorld City Organisation, Australia. And‘we need to achieve real goals that ignitefaster change toward truly sustainable cities,’concluded Chin Phei Chen, Chief Exe -cutive Officer, Sino-Singapore GuangzhouKnowledge City Investment and Develop -ment Co, Singapore.

According to Felix Zhang, Founder andExecutive Director, Envision Energy, Chinatoday is at a crossroads. ‘The country’s highconsumption, high pollution and high carbonemission path is no longer adequate,’ he said.‘The nation must adopt a green and lowcarbon path,’ stipulated Ron Kok, Founder,

meeting co-chair AlfonsoVegara, CEO, Fundacion Metropoli, Spain

Sein-Way Tan, Chairman, GreenWorld City Organisation, Australia

Valentin Romanov, Executive Director, SUN Capital Partners, Russia

Liu Thai Ker, Chairman, Centre for Liveable Cities, Singapore,making a point on globalization

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J.T. Li, Associate Dean, The Hong Kong Universityof Science and Technology

Felix Zhang, Founder, Envision Energy, China

ODME and OTB Group, The Netherlands.Indeed, ‘China increasingly invests in greenenergy projects and is moving rapidly onrenewable technologies,’ stated RenXiaotong, Deputy General Manager,Gemeng International Energy, China. ‘Andthe country is right to do so,’ pronouncedValentin Romanov, Executive Director,SUN Capital Partners, Russia. ‘Living insome big Chinese cities is still rather un -healthy.’ Air pollution broke records in early2013, reaching a level nearly 40 times whatthe World Health Organization considerssafe. ‘Increased focus on the environmenthas become a political imperative,’ saidGao Chaohong, Chief Editor, ChinaPetroleum Enterprise Association, China.

‘The Chinese government is committed tospend huge amounts countering air andwater pollution, in addition to funds forenergy conservation and renewable energy,’continued Herman Mulder, Chairman,Global Reporting Initiative, The Nether lands.According to Jan Peter Balkenende,Former Dutch Prime Minister, The Nether -lands, ‘Chinese firms and their globalcounterparts need to join hands to forge asustainable growth coalition.’

Financial services in China have reached aglobal level-playing field. ‘Still, China’sfinancial sector is plagued by bad loans,’said Wim Boonstra, Chief Economist,Rabobank, The Netherlands. ‘Indeed, Chinagot a debt problem, Anthony Chan,Chairman, New Line Capital Investment,Hong Kong SAR, voiced. ‘The country isstruggling to contain growing local govern -ment debt, the result of easy credit andstimulus measures,’ he continued. ‘And agrowing number of debt defaults by privatecompanies has spurred regulatory crack-downs on the unofficial lending sector,

‘The Netherlands take the rise of Chinaand other developing countries as anopportunity’Jan Peter Balkenende, Former Dutch Prime Minister,The Netherlands

Li Xuejun, Chairman, Beijing Hainachuan Automotive Parts Co.,China

Anthony Chan, Chairman, New Line Capital Investment

Jean-Christophe Iseux Baron von Pfetten, President,Royal Institute for East-West Strategic Studies

Jose Maria Mun�oz, FoundingPartner, MCH Private Equity, Spain

Chin Phei Chen, CEO, Sino-Singapore GuangzhouKnowledge City Investment Co.

Wim Boonstra, Chief Economist, Rabobank, hosting the finance panel

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called ‘shadow banking’ in China, explainedErnst Jan Kruis, Chief Executive Officer,Solveigh Greater China HK, Hong KongSAR. According to Zhang Xingqiang,President, Zoucheng Yuxing Investment Co.,China, ‘small and medium-sized companieshave to find ways to break out of thecramped financing space securing alter na tiveways of financing.’

Ports, railways and other means of supply-chain oriented infrastructures are impor tantdrivers of economic growth. ‘China’s growthstory has entailed the orchestration of in -creasingly efficient supply chains,’ commentedClaude Bégle, Chairman, SymbioSwiss,Switzerland. ‘Now, how can China benefitfrom supply chains offered by its globaltrading partners?’ asked Philip Bowring,International Columnist, Hong Kong SAR.‘New investments in logistics and supply-chain related infrastructure will open upChina’s vast interior and bring access tohundreds of millions of potential newcustomers,’ said Wolfgang Lehmacher,Managing Director, CVA, Hong Kong SAR.‘That’s a necessary step,’ said Han Dehua,President, Aojian Construction Enginee ring,China, ‘as in many industries domestic supplychains are still largely under-developed.’The picture is different for the shippingindustry – China’s shipping industryaccounts for more than half of the global

total and Shanghai as well as Hong Kongare amongst the world’s largest ports,’ saidRoger King, Member of the SupervisoryBoard, Orient Overseas (Int.), Hong KongSAR.

The agricultural and food sector is amongstthe ten industries identified as key growthdrivers by the Dutch government. Partici -pants examined how China can benefitfrom the Dutch experience and whatpartnerships are needed to redefine foodsystems in China. ‘Nutrition is essential,and food safety should be a top priority inChina,’ said Jan Fongers, ManagingDirector Asia, Wageningen University &Research Centre, The Netherlands. ‘The

John M Neill, CEO, Unipart Group, UK – China has an important role to play

Gijs van den Boomen, Executive Director, Kuiper Compagnons, The Netherlands

Roger King, Member of the Supervisory Board, Orient Overseas, Hong Kong

Philip Bowring, InternationalColumnist, Hong Kong

Jan Fongers, Managing DirectorAsia, Wageningen University &Research Centre, The Netherlands

Huang Nubo, Chairman, Zhongkun Investment Group – we need a new period of enlightenment

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2008 milk scandal received world-wideattention,’ reported Edgar Bullecer, Co-Founder and Managing Trustee, The PaglasGroup, Philippines. According to LiuWeidong, Chairman, Xinjiang Bai HuaCun Co., China, ‘changes in the countryfood production system are generating anawareness of food safety problems. Newregulations standardize food productionand restrict illegal activity in the industry.’‘I am observing the growth of sustainableagricultural products in shopping baskets isincreasing. Farmers’ markets are appearingin major urban centres. A promisingsignal,’ said Rick Xu, President, BeijingTime Beauty Trading Co., China.

The panel ‘Investing in The Netherlands’ washosted by Jochum Haakma, Chairman,Netherlands Council for Trade Promotion,The Netherlands. ‘The Global China BusinessMeeting and this panel is a chance to knowhow we work here in The Netherlands. It isalso a good opportunity for Chinese firmsto get to know potential partner firms inorder to establish their regional subsidiarieshere,’ said Edwin Visser, Deputy Director-

General, Ministry of Finance, The Nether -lands. ‘Despite Europe’s current economicwoes, the Dutch economy is expected togrow in the years to come,’ voiced JacquesKemp, Chairman, ToBecome, Netherlands‘The country’s investment landscape ispromising – the Netherlands will becomean European hub for Chinese investments,’said Liu Jiaming, Director, Bairun Invest -ment Management, China. ‘To an increa singextent, Chinese firms choose the Nether -lands as their springboard to Europe. Moretrade with China and more investment fromChina means more business and more jobsfor The Netherlands,’ estimated Henk Kool,Vice Mayor, City of The Hague, The Nether -lands. ‘We view the Netherlands as a per fectbase to penetrate European markets,’ saidLi Xuejun, Chairman, Beijing HainachuanAutomotive Parts Co., China. ‘A proactiveattitude toward Chinese investments hasbeen the major motivational factor for ourcommitment to the Netherlands,’ concludedZhang Xiaodong, Chairman, WinhopesInvestment Co., China.

‘I see China as the main source ofoptimism in the global economy’Jochum Haakma, Chairman, Netherlands Councilfor Trade Promotion, The Netherlands

‘More trade with China and more invest -ment from China means more businessand more jobs for The Netherlands’ Henk Kool,Vice Mayor, City of The Hague, The Netherlands

Xia Hua, President, Eve Group, awared by Jan Siemons as Chinese Business Leader of the Year

Jia Yanlin, Chairman, Baosteel Metal – Chinese Business Leaders of the Year

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Rick Xu, President, Beijing TimeBeauty Trading Co., China

Edgar Bullecer, Co-Founder andManaging Trustee, The PaglasGroup, Philippines

Announcing the 2013 Chinese BusinessLeaders of the Year, Horasis – togetherwith the Netherlands Council for TradePromotion celebrated two outstandingentrepreneurs who have been building andleading successful Chinese firms: Jia Yanlin, Chairman, Baosteel Metal, andXia Hua, President, Eve Group. We re cog -nized and honoured those business leadersas the excel in entrepreneurship, innova -tion and leadership. ‘The chosen businessleaders have impacted the economic de -velop ment and global integration of China,’said Jan Siemons, Managing Director,Netherlands Council for Trade Promotion,The Netherlands.

In a reception on China-Africa economicties, Noel Akpata, Chairman, Stratex Pro,Nigeria, announced that ‘Nigeria is keen tobecome a hub for Chinese firms in Africa.China is supporting infrastructure projectsin Nigeria, particularly in energy, housingand transportation.’ ‘African nations canlearn a lot from China in key areas ofeconomic developmental strategy,’ addedNiyi Meka Olowola, Chief ExecutiveOfficer, Zenera, Nigeria. ‘China has bigeconomic plans and ambitions in Africathat go beyond oil and minerals.’

The meeting ended on a note of optimismand called for an increased collaborationbetween China and its trading partners.Participants agreed protectionism is notthe way out of the current economicimbalances. Under this background, JohnM Neill, Chairman and Group Chief Exe -cutive, Unipart Group, United Kingdom,suggested ‘China has an important role toplay as one of the largest trading nations toadvance global trade.’ Participants called formore global dialogue. And, as Yan Xiaoyan,President, Bank of Beijing, China, put it –‘we shall seek harmony but not uniformity.’‘We shall reflect on the state of globaliza tionand China’s contribution to globalization,’added Huang Nubo, Chairman, ZhongkunInvestment Group, China. ‘We need a newperiod of enlightenment to fully appraiseuniversal concepts of humanity,’ he con -cluded.

‘We shall reflect on the state ofglobalization and China’s contributionto globalization. And we need a newperiod of enlightenment to fully appraiseuniversal concepts of humanity’ Huang Nubo, Chairman, Zhongkun Investment Group, China

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Noel Akpata, Chairman, Stratex Pro, Nigeria

Zhang Xiaodong, Chairman,Winhopes Investment Co.

The Chinese Business Leaders of the Year, with Jochum Haakma and Jan Siemons

As with the previous editions of the GlobalChina Business Meeting, delegates headedfor the closing dinner during the eveninghours. An occasion to revel in newly-forgednetworks and friendships, the dinner offeredfurther debates and reflections. The dinnersession was framed under the title ‘Explo -ring New Models of Growth’. Accordingto Rong Jianying, Secretary General,China Federation of Industrial Economics,China, ‘we need to drive new models of

growth in China and elsewhere.’ ‘And wehave to ensure competitiveness for long-term growth,’ added Frans Weekers, StateSecretary for Finance, The Netherlands.

China’s impact on the global economy ison the rise. ‘Less obvious to observers,perhaps, is the scale and scope of the powershift from the West to China,’ stated IvanTselichtchev, Professor, Niigata Universityof Management, Japan, during a nightcapsession. ‘China’s ascend might ultimatelymean the West’s descend,’ added JuanPablo Cardenal, Author of ‘China’sSilent Army’, Spain. ‘The industriousnessof Chinese citizens around the world is acc -ele rating China’s rise to global eminence,’Anson Chan, Chairman, Bonds Group ofCompanies, Hong Kong SAR, summarized.

We at Horasis are very pleased with theresults of the 2013 Global China BusinessMeeting and the feedback we have receivedfrom participants in the event. ‘The 2013Global China Business Meeting deliveredanalysis and insights needed to address risksand opportunities and achieve durable finan -cial stability and more even, sustainable eco -nomic growth,’ summarized Xu Wenying,Vice Chairman, China National Textile &Apparel Council, China.

‘We shall seek harmony but not uniformity’ Yan Xiaoyan, President, Bank of Beijing, China

FransWeekers, State Secretary for Finance, The Netherlands, speaking during the closing dinner Markus Gärtner, Director, Gapa News Agency,Canada

Xu Wenying,Vice Chairman,China National Textile & ApparelCouncil, China

Rong Jianying, Secretary General,China Federation of IndustrialEconomics

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The international and Chinese media covered the meeting

On behalf of Horasis, I would like to per -sonally thank the Netherlands Councilfor Trade Promotion, the City of TheHague and the China Federation ofIndustrial Eco nomics as well as the co-chairs, co-orga ni zers, and all participants.My special thanks go to our partners fromthe private sector, namely Rabobank,Baker & McKenzie, EY and the TMFGroup. This Global China Business Meetingwas a unique experience which would nothave been possible without the dedicationand enthusiasm of our friends and partners.

It is our hope that the meeting will continueto serve as an important platform forstimulating thought and creative solutions.Horasis looks forward to welcoming youback to next year’s edition of the GlobalChina Business Meeting.

We also take great pleasure to invite you totake part in our other upcoming meetings,namely the Global Russia Business Meeting,Global India Business Meeting, Global ArabBusiness Meeting as well as the HorasisAnnual Meeting.

Dr. Frank-Jürgen RichterChairmanHorasis: The Global Visions Community

The meeting ended on a note of optimism.

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Nightcap with Juan Pablo Cardenal, Author of ‘China’s Silent Army’; Ivan Tselichtchev, Author of ‘ChinaVersus the West’ and Anson Chan, CEO, Bonds Group

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More than ever, Dutch companies are in -volved in the Chinese economy and Chineseenterprises are investing in The Netherlands.More than 500 Dutch companies have set up950 establishments in China. They are notonly seeking opportunities in the econo mi -cally-developed coastal regions (Shanghai,Beijing), but also in the rapidly-developingwestern part of the country. In 2012, theNetherlands was the eighth-largest investorin the Chinese economy. Less well-knowncities, such as Chongqing, Chengdu andQingdao will soon be sky rocketing interms of growth and business potential.Moreover, in the past decade, bilateraltrade relations have been growing steadily,creating employ ment in both countries.Exports of Dutch goods to China and HongKong have grown significantly in the last10 years, from EUR 1.5 billion in 2003 toEUR 9.5 billion in 2012. Exports increasedin 2012 for the 14th consecutive year. China,including Hong Kong and Macau, is theeighth-largest export destination for Dutchgoods. China is the highest-ranking non-Western destination for Dutch exports andthe strongest climber. In 2010 over 3,500companies in the Netherlands exportedgoods to China. Dutch companies are doingwell in China. The majority of the compa niesare profitable. Dutch companies foresee anincrease in turnover (70%), profitability(60%) and investment (53%) in the comingyears. Companies in certain sectors can beconsidered out-performers, for examplethose in agro-food and trading, medicaltechnology, and real estate. Large companiesshow somewhat better results than smalland medium-sized Dutch companies.

As far as Chinese investment in TheNetherlands is concerned, it is expectedthat the number of Chinese companies inThe Nether lands (some 350) will double oreven triple in the next 5 years. Chineseclients of The Netherlands Council for TradePromotion (NCH) regard the Netherlandsas a good country to invest in. Its Gatewayto Europe-function, its good geographiclocation, advanced knowledge infra struc -ture, its talent pool, the favorable taxclimate, highly educated workforce andlanguage skills are just a few of the manyadvantages the Netherlands has to offer.Other attractive features are an alreadyexisting Chinese community in the area andmany Chinese companies. The Netherlandsis very well aware of what potential Chineseinvestors can bring in terms of future de -ve lopments and is therefore more thanwilling to compete with other Europeancountries for China’s attention.

Jan Siemons, Managing Director, Netherlands Council for Trade Promotion, The NetherlandsJan Siemons, Managing Director, Netherlands Council for Trade Promotion, The Netherlands

The Netherlands and China: Trade is Part of our DNABy Jan Siemons, Managing Director, Netherlands Council for Trade Promotion

These facts are well-known to the Dutchbusiness community and we embrace andare proud of the more than 350 Chinesecompanies already located in The Nether -lands, which serves as the gateway toEurope due to its excellent infrastructurewith Europe’s largest port – Rotterdam –and fourth largest airport – AmsterdamSchiphol Airport. Transportation costs forintercontinental sources through these mainports are low and connections to otherEuropean regions by land and water areexcellent. Fiscal incentives and a stronglyskilled labor force are important, too. TheNetherlands offers a low corporate tax rateand has signed the largest number of taxtreaties with countries around the world.Dutch workers are highly educated, multi -lingual and flexible.

For the Dutch business community, China ison the rise and is a growing and interestingmarket to do business with. Many govern -ment and private organizations, such asNCH, the largest private trade promotionorganization, have been looking into howto best benefit from the Chinese oppor tu -ni ties in Europe and particularly those inThe Netherlands.

In order to get the most benefits from theintensified cooperation with China, it is keyto aim high by not focusing on small projectsbut instead, to aim for large and contribu -ting projects. Another approach would beto strengthen the cooperation betweenindividual organizations with China. There isa need to fundamentally establish a strongChinese-Dutch cooperation which would

Making the Chinese Dream a Reality

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result in a new and improved human, scien -tific and cultural harmony between ourcountries. In this regard, together withHorasis, NCH stimulates the exchange ofexperiences and insights between Chineseand Dutch decision makers. NCH organizesmany trade and investment missions toChina, guides many Chinese companies toThe Netherlands and has been successful inmatchmaking between Chinese and Dutchcompanies. NCH has also identified manyopportunities for foreign companies andinstitutes in the field of knowledge transferand innovation. Generally speaking, closercooperation on a pan-European level willbring better understanding of the opportu -nities presenting themselves in the variousdifferent European countries. Only then,will we truly benefit in Europe as a wholeand in The Netherlands and China in parti -cular from the growing opportunities thatlie in front of us.

It is our firm belief that if entrepreneursfrom both countries continue to capitalizeon trade and investment opportunities overthe past few decades, the best days of Sino-

Dutch economic relations are yet to come.The extensive networks of NCH, its clientsand business partners, which cover almostall the main growth areas in China, areavailable to help both Chinese and Dutchbusinesses to team up with potentialpartners. China is now well on its way torealizing the ‘Chinese dream’ in the decadeto come.

The Netherlands Council for Trade Promo -tion (NCH) is the largest Dutch organiza tionfor improving trade and investment withforeign countries. Its mandate is to supportcurrent and potential exporters to enterforeign markets, facilitate direct invest mentby Dutch companies in foreign markets andassist the foreign and Dutch business com -munity to liaise with officials, knowledgecenters and politicians. NCH-teams supportcompanies with entering into new foreignmarkets, making use of a unique and strongnetwork. One of these unique networks isan NCH-group of more than 30 associatedbilateral business councils including theChina Chamber.

Yan Xiaoyan, President, Bank of Beijing, China – we shall seek harmony but not uniformity

Welcome dinner at the Nieuwe Kerk

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Studying the programmeJan Peter Balkenende exchaning business cards with participants

Co-hosts and co-organizers during the ribbon cutting

In fairy tales, giants are typically lumberingcreatures, but the giant that is China ismoving fast and rekindling the excitementthat followed its opening up in the 1980s.That came as a shock to some observers,but its next moves will be even moremomen tous. Of course, one perceives “thepositive” after the events while ignoringrelative failures.

Few would have forecast that Deng Xiaoping’sSouthern Tour in the early 1990s after thecollapse of the Soviet Union would havebolstered China’s rise into controlled capi -talism and into the modern China of today.

China has always had unique managementproblems, such as attempting to controldistant provinces using poor roads and slowtransport. Yet, Marco Polo (about 1300 AD)saw for himself the legacy of the HanDynasty’s messenger system (about 210 BC)wherein messengers would ride flat-out for200km and then the message would betaken on by fresh riders and horses. Ofcourse, ordinary folk travelled on foot andnot far.

Successive emperors built the 1,600-km-longGrand Canal by 600 AD, incorporatingpound locks that would not be invented inEurope for another 300 years. The canal’sinitial stretches were for wartime supplies,but later it was entirely used for generaltrade. China prospered and contributedabout one-third of global economic outputby 1820 before falling into internal andinternational squabbles.

The Western perception of the emergentPeople’s Republic was one of backward ness,but later the entrenched family and villageeconomic prowess passed into modern com -mercial activities, into its diaspora acrossAsia and the rest of the globe – benefitingmany, including hightech startups, in theUnited States.

China’s four decades of massive growth havebrought hundreds of millions out of poverty.The building blocks for China’s future nowlie in the opening up of its inner space. Thisis being done by inducing industry and com -merce to move from the coast. Yet directinducements are not enough: There have tobe several other factors in place, notablyeducated people for new factories and gooddigital links, as well as good physical com mu -nications by air, railway, road and river.

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China headed for another massive social experiment?It’s difficult to forecast what China Inc may do, but history shows it’s being managed well

By Frank-Jürgen Richter, Business Times, October 31, 2013

Participants gather at the welcome reception

Over the past years, China has ramped upits infrastructure. Its many business schoolsenrol overseas staff and are entering globalrankings. Yet, while the US has about 1,000MBA programmes with 130,000 studentsgraduating annually, in China only one in20 of the 420,000 graduate students wouldget an MBA. Even so, this bodes well forChinese business management as there isthe need to use the best of global methods,though not follow trends slavishly.

Chinese businesses are now better served bya more extensive and capable communi ca -tion infrastructure. Its telecommunicationssystems gradually grew in range and qualityby the 1970s and the vast installation offibre-optic cable further increased the use ofthe Internet and the associated mobile-phonesystems. This growth was also apparentacross China’s physical logistics systems.

Although in rural areas ox carts still haulgoods along poorly surfaced dirt roads,during the last decade the government hasbuilt a vast network of safe dualcarriage way

roads, speeding the transport of inter-citygoods and passengers.

There is a similar story for the rail service:Its capacity was always stretched at holidaytimes when millions returned home fromthe places where they worked. Now therailway network boasts almost 10,000 kmof high-speed lines, allowing the separationof goods from passenger traffic. This bene -fits all: Passengers are not held up by slowgoods trains, and the latter are not sidelinedin favour of passengers, allowing vital flowsof minerals and food to pass unhindered.China has further increased its railway in -vest ment by 12 per cent over the first ninemonths of this year.

River navigation systemPerhaps the greatest increase in investmenthas been associated with rivers, especiallyYangtze, and their management and deve -lop ment as logistics routes. Ports have beenextended and coordinated with road andrailway infrastructure and many have beengiven the “free zone” status. Many river

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Horasis meetings – learning, sharing, shaping

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navigation systems have been put under acoherent safety policy.

We have seen, month by month, increases inimport-export flows with ever larger shipsplying upriver, benefiting the short-seashipping flows. Much larger ports have beenconstructed for oceanic trade. And the south-north canal system is being built to movewater from the wet south-west to the aridnorthern parts of the country, benefitingagriculture and offering the potential toundertake fracking to exploit their reser vesof unconventional oil and gas.

So much for history. What is next? It is nevereasy to predict what China Inc may do, yethistory tells us it is being managed well. Itslatest GDP (gross domestic product) growthis 7.8 per cent – lower than the stellar per -formance of the recent past but still amongthe highest in the world. I wonder if Chinais on the verge of yet another massive socialexperiment. I am sure its leaders are wellaware of the developed world’s flight of

workers from the countryside to the citiesthat generated their wealth creation.

Ahead of a potential catastrophe in China,the government has built many cities in itscentral and western regions that are oddlyempty at the moment. Given the new com -munication infrastructure, I am sure thatthey will over time be able to accommodatenew waves of rural to urban migrants.Businesses will be induced to come inland ingreater numbers to absorb the new urbanitesin meaningful work rather than allowingthem to languish among the unemployed inthe coastal regions.

Meanwhile, farmers will benefit from largerfields with fewer workers and more mecha -nisation. Call it a social experiment if youwill, but this is a great example of govern -ment forethought that could potentially reapbenefits on a huge scale.

The writer is founder and chairman of Horasis,a global visions community

Closing dinner

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Panelists sharing a light moment

Reception – Building China-Africa Economic Ties Taking notes

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The meeting offered simultaneous interpretation services Registering participants

Discussions during a boardroom sessionThe 2013 Global China Business Meeting drew a collectiveaudience of 350 delegates from 37 countries

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Seashore in front of the conference hotel

Horasis: The Global Visions CommunityThurgauerstrasse 40CH-8050 ZurichSwitzerland

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