Global China Business Meeting21-22 November 2010, Luxembourg

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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Co-hosts:Luxembourg for Business, China Federation of Industrial Economics

Co-organizers:Asia Pacific CEOAssociation, Caixin Media, CEO Clubs UAE, China CEO Roundtable,Future China Society,World Eminence Chinese Business Association,Young Presidents’ Organization (YPO)

Co-chairs:Jeffrey Chen Chief Executive Officer, Neopac Lighting Group, China,TaiwanCarla Cico Chairman, Rivoli S.P.A., ItalyBoris F.J. Collardi Chief Executive Officer, Julius Baer Group, SwitzerlandKolapo Lawson Group Chairman, EcobankTransnational,TogoLiang Xinjun Vice Chairman and Chief Executive Officer, Fosun Group, ChinaNan Cunhui Chairman, Chint Group, ChinaJuan María Nin President and Chief Executive Officer, La Caixa, SpainPatrick O’Basuyi Chairman, Obax Group, USADinesh C. Paliwal Chairman and Chief Executive Officer, Harman International, USASalmanAl Jishi Chairman, Salman Group, Saudi ArabiaYat Siu Chief Executive Officer, Outblaze, Hong Kong SARJohnTan Chief Executive Officer,Asia Capital Reinsurance Group, SingaporeXiangWenbo President, Sany Heavy Industry Co., ChinaZhangYue Chairman, Broad Air Conditioning, ChinaZhang Jianwei President, Sinotrans, ChinaZhou Xin Chairman, E-HOUSE China Holdings, ChinaZhu Jimin Chairman, Shougang Group, China

Strategic Partners:CEIBSPwC

Media Partners:Asean AffairsChina DailyGlobal AsiaInternational HeraldTribunePhoenixTVWirtschaftsWoche

Knowledge PartnersAccentureBaker & McKenzieJulius Baer GroupRoland Berger Strategy Consultants

The Castel of Septfontaine - venue of the opening dinner

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Participants arrive for the opening dinner

At the Luxembourg Congress Center

Table of Contents

Foreword 6

China: Inside Out – Outside In 24

China Exim Bank Eyes Africa Loans, Commodity Focus 34

China's Fosun Laments EU Protectionism 36

Honoring the Chinese Business Leaders of theYear 2010 38

Luxembourg Aims to be EU Gateway for Chinese Firms 42

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

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Foreword

At the sixth Horasis Global China BusinessMeeting, Luxembourg, 21-23 November2010, business and government leaders setthe customary positive tone.The GlobalChina Business Meeting brought together alarge number of CEOs from China withleaders from around the globe to discussChina’s and the world’s current economicstate. Given China’s critical importance inthe global recovery process, Horasis isworking closely with its Chinese partnersto ensure that the Global China BusinessMeeting plays a major role in restoringconfidence and reviving growth.

The Global China Business Meeting was ameeting of many powerful minds.Whatemerged was the thought that the nextdecade was a tipping point for both China

and the world.This report shall distil theoutcomes and observations that emergedfrom the meeting.We hope you find thisreport to be an insightful and timely guideto how the Chinese and global leaders beingpresent in Luxembourg addressed the impli-cations of the current economic, politicaland social challenges.

At a time of great uncertainty in worldmarkets, the 6th Global China BusinessMeeting gave foreign observers a uniqueopportunity to hear firsthand about thelatest changes across China, and to identifythe most promising trade and investmentopportunities the country has to offer,while providing Chinese organisations witha high profile platform to continue to reachout to international investors and partners.Over 400 business leaders from 45countries, including CEOs from the MiddleEast,Asia, Latin America, as well as Europeand North America came together for oneand a half day retreat to debate the criticalrequirements for Chinese firms to

Co-chairs during the opening plenary

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‘The Chinese economy’s response to itsgovernment stimulus has providedimpetus for the rest of the world’Kolapo Lawson,Group Chairman, EcobankTransnational,Togo

successfully expand their operations towardsa global level-playing field.The HorasisGobal China Business Meeting was co-hosted by Luxembourg for Business, anentity under the Grand Duchy’s Ministry ofCommerce as well as the China Federationof Industrial Economics - and supported bya group of co-organizers, strategic partners,knowledge partners and media partners.Ding Lieming, Chairman, Zhejiang BetaPharma Co., China, told participants that‘the Global China Business Meeting providesan excellent platform to discuss Chinesefirms’ strategies, challenges and contribu-tions to overcome the global economic crisisand to develop into truly globalizedcorporations.’

The following co-chairs represented themeeting vis-a-vis to the governmentauthorities from China, Luxembourg andthe world: Jeffrey Chen, Chief Executive

Officer, Neopac Lighting Group, China,Taiwan; Carla Cico, Chairman, RivoliS.P.A., Italy; Boris F.J. Collardi, ChiefExecutive Officer, Julius Baer Group,Switzerland; Kolapo Lawson, GroupChairman, EcobankTransnational,Togo;Liang Xinjun,Vice Chairman and ChiefExecutive Officer, Fosun Group, China;Nan Cunhui, Chairman, Chint Group,China; Juan María Nin, President and ChiefExecutive Officer, La Caixa, Spain; PatrickO’Basuyi, Chairman, Obax Group, USA;Dinesh C. Paliwal, Chairman and ChiefExecutive Officer, Harman International,USA; Salman Al Jishi, Chairman, SalmanGroup, Saudi Arabia; Yat Siu, ChiefExecutive Officer, Outblaze, Hong KongSAR; JohnTan, Chief Executive Officer,Asia Capital Reinsurance Group, Singapore;XiangWenbo, President, Sany HeavyIndustry Co., China; ZhangYue, Chairman,Broad Air Conditioning, China;

Ding Lieming, Chairman, Zhejiang BetaPharma Co. - Orchestrating EffectiveHuman Resources

Jeffrey Chen, Chief Executive Officer,Neopac Lighting Group, China,Taiwan

Carla Cico, Chairman, Rivoli S.P.A.,Italy

Kolapo Lawson,Group Chairman,EcobankTransnational,Togo

Zhu Jimin, Chairman, Shougang Group- 'we are trying very hard to learn fromthe US's mistakes

JohnTan, Capital Reinsurance Group Yat Siu, Chief Executive Officer,Outblaze,Hong Kong

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Zhang Jianwei, President, Sinotrans,China; Zhou Xin, Chairman, E-HOUSEChina Holdings, China; Zhu Jimin,Chairman, Shougang Group, China

As Chinese and world leaders flew intoLuxembourg for this Horasis leadershipevent, China’s economic growth wassurging. Ironically, the more developednations - especially some member countriesof the European Union - were at a lesscertain stage, with many encountering deepstructural problems.The global economyremains fragile amid slowdowns in the U.S.and Japan and worsening imbalances in theeuro zone. Given the fragilities of the worldeconomy, Li Dongrong,Assistant Governor,People’s Bank of China, China, said that itwas essential for developed and emergingcountries to continue to support a stablerecovery. He echoed the outcomes of theG20 Summit which took place 10 daysprior to the Global China Business Meeting.‘Cooperation on global and region levels iskey,’ he said.‘The broader message from theG20 meeting was a powerful recognition ofthe shift in economic power to emergingnations like China - away from the westernindustrial powers,’ added Hu Shuli, Editor-in-Chief, Caixin Media, China. LiangXinjun,Vice Chairman and Chief ExecutiveOfficer, Fosun Group, China suggested thatthe G-20 process needed to be made moreinclusive.

From the Opening Reception to the ClosingDinner, participants expressed theircommitment to cooperating toward astrong and fast recovery and a more stableglobal financial order.

Jeannot Krecké, Minister for the Economyand ForeignTrade, Luxembourg, opened themeeting in a dinner session that was infor-mative and candid. He pointed out how thegovernment of Luxembourg is engaging withChina, highlighting ongoing projects in thearea of urban planning, transportation andthe ‘green’ economy. He cited Luxembourg’spavilion at the 2010 ShanghaiWorld Expoas successful example of this fruitful

In what areas can government, academia and the private sector collaborate to deliver the nextgeneration of business leaders?

‘Cooperation on global and regionlevels is key’Li Dongrong,Assistant Governor, People’s Bank ofChina, China

Jeannot Krecké,Minister of the Economy and ForeignTrade,Luxembourg, reflecting on the success of the ShanghaiWorld Expo

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Xu Kuangdi, Chairman, ChinaFederation of Industrial Economics -China andWorld Economic Outlook

Liu Haiyan, SeniorVice-Chairman, China Federation ofIndustrial Economics

cooperation.‘The effect of theWorld Expois expected to favourably impact China forthe years to come,’ he said. Minister Kreckémade positive remarks on China’s contri-butions to tackling the global economiccrisis and indicated that Luxembourg andChina enjoy wide common interest. ‘Todevelop trade relations with China is apriority of Luxembourg’s economic policy,’he concluded.

Speaking for the Chinese government, XuKuangdi,Vice Chairman, 10th NationalCommittee of the Chinese People’s PoliticalConsultative Conference, Chairman, China

Federation of Industrial Economics, painteda lucid vision for the future of the Chineseeconomy. He talked about his government’splans to make China one of the most com-petitive economies. On growth prospect hesaid that the Chinese economy would growat anticipated rate of over 8 per cent in thecurrent fiscal year despite the sluggish stateof some of China’s trading partners’economies. Xu Kuangdi also expressedconfidence that foreign direct investmentsinto China will continue to grow in comingyears. He pledged that the government ofthe People’s Republic would hold steady tothe policies it put place to address the crisis.On China’s progress toward recovery, henoted that domestic consumption wasshowing encouraging growth, led by a focuson employment opportunities.

Yin Min, Chairman, Zhengda ShanghaiInternational Group, China

Lu Hongwei, General Manager, Baiyi Group Alyce Su,Managing Partner,China Queen Capital,USA

‘Made-in-China is increasinglyperceived as guarantee for reliabilityand advanced intellectual property’Alyce Su,Managing Partner, China Queen Capital,USA

Barry Kellman, President, InternationalSecurity & Biopolicy Institute,USA

Kheng Hwa, CEO, SingbridgeInternational Singapore

Geoff Cutmore,Anchor, CNBC,moderating the session on China-Africa

Jerry Zhang, Chief Executive Officer,Neocomm Broadband, China - oneducation

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At the same dinner, José Luis Guterres,Deputy Prime Minister of Timor Leste,stated that ‘China is the leading tradingpartner and investor inTimor Leste.Weare delighted to continue this fruitfulcooperation.’ José Luis Guterres added thatthe two countries should expand cooperationin agriculture, oil and gas exploration,mining and investment to benefit theirpeople.The Deputy Prime Minister alsohailed China as an example for developingcountries. He thanked China for its supportin economic development, welcoming evenmore cooperation with China.

The general sentiment of panelists on theopening plenary was that China is emergingstronger from the current global crisis.Thebroad consensus was that the global eco-nomic recovery will be led by Asia and theemerging markets, with significant growth

coming from China. Boris F.J. Collardi,Chief Executive Officer, Julius Baer Group,Switzerland, predicted that by 2040 Chinawill account for one-third of the world’sgrowth. Nan Cunhui, Chairman, ChintGroup, China, stressed that growth expecta-tions need to be moderately adjusted down-ward to ensure that growth is sustainable:‘China cannot enjoy the double-digitgrowth rates of the pre-crisis times.’

Can China manage to continue its impressiveeconomic growth?Will China and its compa-nies play a more pronounced role in this

Lulu Zhou, President, Friendship Across Frontier,China

Jose Luis Guterres, Deputy Prime Minister,Timor-Leste

‘China is the leading trading partnerand investor inTimor Leste.We aredelighted to continue this fruitfulcooperation‘José Luis Guterres,Deputy Prime Minister ofTimor Leste

Community Building at the Global China Business Meeting

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Li Dongrong,Assistant Governor, People's Bankof China.

Boris F.J. Collardi, CEO, Julius Baer Group

new emerging global order? And will thisopen up new opportunities for foreignplayers to shape and define economic de-velopment and hence to reposition them-selves a world stage with China at the core?These were only a few of many questionsthat were raised during the opening plenaryon the economic outlook. Senior businessexecutives also debated the pace of China’sintegration with its neighbouring Asianeconomies, China’s security concerns andthe country’s growing demands for energy.A number of key conclusions emerged overthe day and a half dedicated to the GlobalChina Business Meeting. Participantsreached consensus that• The Chinese economy is expected toperform strongly in the years ahead.Thegrowth prospects in China are generallymore compelling than what is beingobserved in the developed world.Whilethe mood in China is certainly upbeat,complacency must be avoided.

• Investments in education, healthcare,technology and infrastructure will bethe key drivers to ensure long-term andinclusive growth.

• China’s influence as an internationalinvestor and reliable partner of the G20is growing.A new generation of Chineseentrepreneurs is driving innovation andgrowth - not only in China but on aglobal scale.

Most participants agreed that economicconditions in the OECD-countries areworsening. Risks from European sovereigndebt have increased factors of instability inthe course of global economic recovery.Growth is uneven - a split between thedeveloped and developing world isunsettling - and it is the developed worldfacing the big challenges. But China stilloffers hope.‘The Chinese economy’sresponse to its government stimulus hasprovided impetus for the rest of the world,’as Kolapo Lawson, Group Chairman,EcobankTransnational,Togo, put it. ‘China’sdemand for commodities has helpedcountries like Brazil, Russia and manyAfrican nations,’ added Raymond Lo CheukKwong, Chief Executive Officer, GMTShipping Group, Hong Kong SAR.Raymond Lo Cheuk Kwong also said thatcontrolling inflation and has become theChinese government’s top priority recently- a preemptive measure to prevent anincrease of commodity prices.’ Still,Europe, Japan and North America benefiteda great deal, as China increased its imports

Wu Jianmiao,Chairman,Miaoshang Group,China Rupert Hoogewerf, Publisher,Hurun Report Myles Lu, Chief Executive Officer, Roxbeam, China, on China'sTechnology Pioneers

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of highly-valued added products and services.‘The right way out for Europe is should bea political assurance of solidarity.Also wehave to keep interest rates low so that wecan pay off debts without too much cost’,explained Juan María Nin, President andChief Executive Officer, La Caixa, Spain.

On Chinese real estate, some participantsexpressed their fear that China is sitting ona massive bubble.According to Gao Dekang,Chairman, Bosideng International Holding,China,‘it seems the Chinese housing bubble

is at the root of inflation.’ KateWestgarth,Visiting Scholar, CASS, China, said ‘theChinese government is very aware of thatrisk and is trying to take the air out of thebubble. Zhu Jimin, Chairman, ShougangGroup, China, added that ‘we are tryingvery hard to learn from the US’s mistakes.Besides, the Chinese government has a lotmore control over its financial sector thanthe US and Europe.‘It can simply tell banksnot to give loans for a second or third home.Luckily for the Chinese economy, thegovernment decided to curb speculation,’arguedMeng Xianzhong, SecretaryGeneral, China Association for ExhibitionCenters, China. JacquesTourel, ChiefExecutive Officer,WorldTrade CenterWarsaw, Poland, punctured the fears of abursting bubble.‘As with any economy,

The opening plenary panel

Daniel Duku, Chief Executive Officer,Venture CapitalTrust Fund,Ghana

Claude Begle,́ Special Adviser,Governmentof the State of Geneva, Switzerland

‘The right way out for Europe is shouldbe a political assurance of solidarity’Juan María Nin, President and Chief ExecutiveOfficer, La Caixa, Spain

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Meng Xianzhong, Secretary General,China Association for Exhibition Centers

Raquel Lucia Perez Brito, GeneralDirector, Sofitesa, Spain

China has cyclical risks,’ he noted.‘ButChina is not a bubble and a hard landing inthe foreseeable future is rather unlikely.’

In a special plenary session on the EU-ChinaAgenda, Luxembourg’s Prime MinisterJean-Claude Juncker stated that ‘China’srelation with the European Union areburgeoning.’ He examined how China andthe European Union can work together toaddress global and regional issues. He alsolaid out the strategic implications for tradeand investment flows. Jean-Claude Juncker,who is also Chairman of the forum of eurozone finance ministers, voiced concernabout the euro’s speeding decline. He alsotold participants that ‘foreign-exchangerates should reflect economic fundamentals.Global imbalances were increasing oncemore after the economic crisis.’

In the same session, Zeng Xianqi,Ambassador of China to Luxembourg,explained that ‘while actively coping withthe global economic crisis, China attachesgreat importance to strengthening coordi-nation and cooperation with the EuropeanUnion.A strong and stable European Unionis beneficial to China and the world atlarge.’Ambassador Zeng indicated thatChina is willing to make joint efforts withthe European Union to stimulate the

balanced and sustained development ofbilateral economic and trade relations.

The plenary sessions in the main hall werefollowed by a unique and intensive board-room dialogue sessions, where delegatesinteracted with the panellists on a variety offundamental issues. More than 20 themedpanels across the one and half days embraceda wide variety of topics, some focussing onspecific sectors such as energy, infrastructure,or financial services, to others featuringdiscussions reflecting on the diversificationof the Chinese economy and the country’semerging leadership role in the world.

A special boardroom discussion wasdedicated to China’s relations with Africa.Daniel Duku, Chief Executive Officer,Venture CapitalTrust Fund, Ghana, saidthat the continent’s investment environmenthas greatly improved in recent years, andmanyAfrican nations have introducedpreferential policies including lower taxrates to attract foreign capital. ‘Africa isChina’s largest supplier of oil, accountingfor 75 percent of China’s total importsfrom the continent,’ said Li Ruogu,

Zeng Xianqi,Ambassador of China to Luxembourg

Premier Jean-Claude Juncker - 'Chinas relation with theEuropean Union are burgeoning'

‘China’s relation with the EuropeanUnion are burgeoning‘Jean-Claude Juncker, Prime Minister of Luxembourg

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Chairman, China Eximbank, China.‘Butthere are abound investment areas in Africaand Chinese companies can explore moreopportunities in sectors like agriculture andmanufacturing, apart from the current focuson infrastructure and energy resources,’ saidKola Karim, Chief Executive Officer,Shoreline Energy International, Nigeria.‘Most products bought byAfrica from Chinaare for infrastructure needs.The number ofconsumer goods imported from China isalso increasing,’ explained Paul Judge,Member of the Board of Directors,Standard Bank Group, South Africa, addingthat cooperation between China andAfricais mutually beneficial. ‘We are now creatingspecial economic zones (SEZs) in targetedAfrican economies.There are currently sixsuch Chinese government-endorsed zonesin Africa, with more to come,’ said CaoSonglin, Chairman,Yaxin Petroleum &Chemical Construction Co., China. It ishoped that these hubs for Chinese-capitalinvestment may stimulate growth in theirrecipient economies in the same way theydid in China in the 1980s and 1990s.

A major issue at the meeting has been theneed to alleviate China’s impending labourshortage and the need for education. ZhangQianbing,Vice Chairman & GeneralManager, North China PharmaceuticalGroup Corporation, China, unveiled

China’s solution to the problem: theindustrialization of Chinese agriculture, thecreation of scores of new cities to absorbthe 800 million farmers who will migrateto those cities and a holistic and efficientsystem of education.

Annette Nijs, Dutch Minister (ret.) ofEducation; Executive Director, GlobalInitiative, CEIBS, China, chaired the session‘Education:The Currency of the Future’.

Debates at one of the boardroom sessions

‘Historically, Confucianist influencehas reinforced education’s central rolein the Chinese society,with Chinaleading the world in the number ofuniversity graduates’Richard Hung, President, Confucius Ni ShanEducation, China

Annette Nijs, Dutch Minister (ret.) of Education; Executive Director, Global Initiative, CEIBS,China, with KaiVettel,Managing Director, Klimatech,Germany

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‘The dynamism of Chinese entrepreneur-ship and innovation will largely be dependenton both the pace of government educationreforms and the quality of training pro-grammes, both in-house and as provided byChina’s emerging business schools.A closerelationship with industry in curriculadevelopment and internships is needed,’ hesaid.‘Historically, Confucianist influencehas reinforced education’s central role inthe Chinese society, with China leading theworld in the number of university graduates,added Richard Hung, President, ConfuciusNi Shan Education, China - who is a 78thdirect descendent of the revered philosopherand educator, Confucius.Mao Zhenhua,Chairman, China Chengxin InternationalCredit Rating Co., China emphasized that‘we have to place greater emphasis on

having students develop creative solutionsrather than promoting role learning.’‘Overseas exposure will make Chinesegraduates more competitive,’ concludedHarvey Chen, Chief Executive Officer,First Light.

Chinese firm’s corporate globalization wasat the heart of the agenda. Dominantthemes of the meeting proved to be China’sinfluence as an international investor andthe emergence of a new generation ofentrepreneurs who are driving globalinnovation and growth in a number of newsectors. Most participants agreed thatChinese firms will have to develop a long-term strategy in internationalization, andmove beyond mere cost competitiveness.‘Compliance with international bestpractices, the projection of cultural valuesembedded in the societies we will operatein and globally valuable HR-practices willrequire sophisticated managementexperience,’ saidMikael Makinen, ChiefExecutive Officer, Cargotec Corporation,Finland. In a session on the rise of globalfirms of Chinese origin, Chen Ping,Chairman, China Investment PartnersGroup, China, called on Chinese firms tostart assessing implications and strategiesfor internationalization, as well asdetermining the sequence of markets toenter. Compared to achieving success in

Participants exchanging business cards

Cao Songlin, Chairman,Yaxin Petroleum& Chemical Construction Co.

Richard Hung, President, Confucius NiShan Education - direct descendent ofphilosopher Confucius

Paul Judge,Member of the Board ofDirectors, Standard Bank Group, SouthAfrica

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their domestic market, global Chinese firms‘will have to adopt to a more complexoperating environment that presents criticaluncertainties’, opined John M. Probandt,Vice Chairman, CITIC Rising Star, China.

‘Chinese firms are emerging as globalcorporations, reaching a level playing fieldwith the established Multinationals of theWest,’ Jon Koplovitz, Managing Partner,Blackstone Advisory Partners, UnitedKingdom, continued.The expansion ofChinese companies into Europe and NorthAmerica is yet another facet of the globalizedeconomy.As these companies get bigger,they need to start thinking about globalpositioning - they are seeing Europe andNorth America as more than just a places totrade their products and services.‘Made-in-China is increasingly perceived as guaranteefor reliability and advanced intellectualproperty,’ stated Alyce Su, ManagingPartner, China Queen Capital, USA.‘China

has the potential to improve its competi-tiveness in value-added services like IT andother high-content industries.We will buildglobal firms of Chinese origin, also in areasbeyond mere manufacturing,’ added KarohyShi, Chairman, Newcom Group, China.‘Chinese firms are fast emerging as globalleaders in technology sectors,’ he said.

‘The acceleration in the emergence ofChinese Multinationals will have significant,competitive implications for global firms, butthere are also potential opportunities forcollaboration,’ explainedMichael Barbalas,

Harald Einsmann,Member of the Boardof Directors,Tesco, listening to his co-panelists

Johan Staël von Holstein, ChiefExecutive Officer,Mycube, Singapore -on Investments in China

Thomas Homberg, CorporateVicePresident, EADS

‘Compliance with international bestpractices, the projection of culturalvalues embedded in the societies wewill operate in and globally valuableHR-practices will require sophisticatedmanagement experience’Mikael Makinen, Chief Executive Officer, CargotecCorporation, Finland

Mikael Makinen, Chief ExecutiveOfficer, Cargotec Corporation, Finland,on managing globalization

John M. Probandt,Vice Chairman, CITIC Rising Star; Chen Ping, Chairman,China Investment Partners Group

Timothy Beardson, Chairman,AlbertPlace Holdings,Hong Kong

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President China, Goodrich, China. Giventhe mixed success of Multinational’soperations in China,‘the question arises asto what challenges are facing globalinvestors and what strategies will boostsuccess in China’ askedMottie Kessler,Chairman, Banner Chemicals, UnitedKingdom.‘China is not an easy market.Wehave to move the Chinese market to thecentre of our global strategy, pinpointedThomas Homberg, CorporateVice

President, EADS, Germany.‘Even withmany years’ experience and knowledge indeveloping business in China, we recog-nized very well that there is no company inthe world today that has enough resources

to reach and fully tap a market as large asthat of China. Many of the challenges,though not all, relate to the problem of howto establish effective and efficient distribu-tion channels,’Harald Einsmann, Memberof the Board of Directors,Tesco, UnitedKingdom, added.‘Western companies wantto compete in China,’Hong Nguyen,Managing Director, GC Millenium Group,Hong Kong SAR, said.‘We want to sellgoods made globally to Chinese consumerswith rising income and increasing demand.’‘China represents our single largestopportunity today outside the US,’DineshC. Paliwal, Chairman and Chief ExecutiveOfficer, Harman International, USA,added.‘It is going to remain that way andwill extend that lead. I am travelling toChina at least once a year - visiting not onlythe usual destinations for an executive -Beijing and Shanghai - but also the cities intheWest, North and South. I want todemonstrate how important China is toHarman.’

During the plenary session on the post-crisiseconomic order, the meeting co-chairsdebated China’s potential role in theworld’s economic and political governance.The consensus of the panelists was that anew global financial and economic order isinevitable - with China playing a key role inthis future global infrastructure. China’sactive participation in recent G20 meetings

Michael Barbalas, President China,Goodrich, China andKarohy Shi, Chairman,Newcom Group, China

Professor Lou Marinoff and Mottie Kessler, Chairman, BannerChemicals

Mao Zhenhua, Chairman, Chengxin International andYao Zhijun, Chairman,Yaosheng Steelwork

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led some panelists to place faith in thecountry’s ability and willingness to helpresolve the global economic crisis. ‘China’sincreasing global engagement underlinesthe shift in the balance of power betweenthe members of the G8 and the emergingeconomies like China,’ said Carla Cico,Chairman, Rivoli S.P.A., Italy.‘While theeconomic crisis arose from the imperfectionsin the financial regulations in theWest,spreading from there to the rest of theworld, those same countries are no longerable to manage such problems on theirown,’ Jeffrey Chen, Chief ExecutiveOfficer, Neopac Lighting Group, ChinaTaiwan, argued.‘China’s role in the postcrisis economic order has to be moreassertive’. His main concern expressedduring the discussion with his co-panelistswas the threat of protectionism:‘unfortunately, we have seen a new wave of

protectionism in the wake of the financialturmoil.We must help the world move backon the track of free trade, to theWorldTrade Organization’s Doha round.’‘And, ofcourse, we need to involve China,’ addedJohnTan, Chief Executive Officer,AsiaCapital Reinsurance Group, Singapore.

Participants exchanged views on financialservices and the reform of the financialsupervision system. Delegates heard fromChen Hui, Chairman, Xiangyun InvestmentCo., China, that ‘the last decade has seenmany positive developments in the Chinesefinancial services sector. Banking isdeveloping into a Chinese success story andis one of the most advanced users of infor-mation technology.’ Commenting on thecurrent debate about currencies, LordDavidson,Advocate General for Scotland,United Kingdom, exclaimed that ‘an inter-national role for the renminbi is moreimportant than a revaluation. China’sfinancial sector will play a much bigger rolein the global monetary and financial systemthan today.’‘I wish the US Federal Reservedisplayed the same understanding of therole of regulation that the PBOC has done,’added Jacques Kemp, Non-ExecutiveDirector, KB Financial Group, Korea.Francois Barrault, Chairman and Founder,FDB Partners, France, argued that ‘if Chinawants the renminbi to stick with the dollar,it must have an interest rate that remains aslow as its US counterpart.’

Jiao Xuding, Chairman, SCP Oilfield Services Co,China

Lord Davidson,Member,House of Lords,United Kingdom

Danny Constantinis, Chief Executive Officer,EM&I,UK, on low-carbon energy

Dinesh C. Paliwal, Chairman,Harman International,USA -leading change in a globalized world

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On climate change and sustainable develop-ment, participants engaged in a heateddebate.‘The Chinese government’s argumentthat the country cannot compromise itsdevelopment seems justified,’ said DannyConstantinis, Chief Executive Officer,EM&I, United Kingdom. Simply becausethe developed countries of Europe andNorth America polluted more in the past,they do not have the right to do so infuture.’ Many participants pointed to thelatent potential in renewable energy.‘Weneed to take advantage of green technologyas we have to address global warming’, saidZhangYue, Chairman, Broad AirConditioning, China.‘And we have topromote the new industries clusteredaround green. However, we need clearincentives for the Chinese private sector todevelop renewable energy,’ added JiaoXuding, Chairman, Copower Enterprise,China. Jan-Olaf Willums, Chairman,Inspireinvest, Norway, told participants thatrenewable energy offers a real win-win forChina and Europe, in terms of energysecurity, economic and social development,and the welfare of our planet.‘Inrenewables, the revolution is justbeginning,’ he said. Zhang Xingsheng,Managing Director, North Asia,The NatureConservancy, China, explained that ‘theChinese government will launch a pilotprogramme to provide subsidies to buyers

of electric and hybrid cars, as thegovernment steps up efforts to cutemissions in the world’s biggest automarket.’

Participants pointed out that urbanization,the environment, health challenges, thedigital divide and social responsibility arenow mainstream topics in Chinese businesscircles, and rightly so. In a session onglobalization and urbanization, participantsdiscussed what it will take to shape thesustainable cities of tomorrow. JenniferAngenend, Director,WaterFilled BarrierSystems, USA, started the discussion bysaying that cities in China and abroad are onthe front line of global challenges such asmigration, climate change and energyefficiency.‘Urban planners in China aretrying to help cities become more environ-mentally and economically sustainable,’ saidMark Minevich, President, Going GlobalVentures, USA. Ko Kheng Hwa, ChiefExecutive Officer, Singbridge InternationalSingapore, Singapore, reported back fromthe successful Shanghai Expo.‘With the

‘Renewable energy offers a realwin-win for China and Europe, interms of energy security, economicand social development, and thewelfare of our planet‘Jan-OlafWillums, Chairman, Inspireinvest,Norway

Per Olofsson, CEO,ClimateWell, Sweden Jan-Olaf Willums, Chairman,Inspireinvest,Norway

Hellen Song,General Manager, La China Capital making a point as AlbertTeolooks on

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theme ‘Better City, Better Life,’ the 2010World Expo incorporated visitors intoenvironmentally friendly and environ-mentally sensitive urban systems that arenot only equipped with the latest life-facilitating products and processes, but arealso prepared for sustainable urbanization,’he said.‘The ShanghaiWorld Expo willtransform the way we live and play,’concluded Laurent Mosar, President,Chamber of Deputies, Luxembourg.‘And the Expo will fuel new businessopportunities for China and the world.’

At a packed session, panellists agreed thatthe age of the Chinese consumer is in reach.As the emerging middle class in China seeksto consume more products and services,powerful brands of Chinese origin are in themaking.At many other sessions, participantsemphasized the importance of sustainablebrands in the Chinese context.Traditionally,Chinese firms focused on manufacturing -they are now realizing that they are notmaking the highest margins.At that pointthey try to build brands.‘Expectations havealways been that developing countriescannot build brands because their com-parative advantage is in manufacturingcosts,’ said SteveTappin, Chief ExecutiveOfficer, Xinfu, United Kingdom.‘So thefact that Chinese firms are building brandsis quite amazing,’ emphasized Claire Chung,Chief Executive Officer and Founder,Touch2give.com, Portugal.‘I expect to seebrands from China spreading globally,’ ShaoWenguang, President Europe, PhoenixTV,United Kingdom, added.

Continuing discussions over lunch.

‘The Global China Business Meetingprovides an excellent platform todiscuss Chinese firms’ strategies,challenges and contributions toovercome the global economic crisis andto develop into truly globalizedcorporations‘Ding Lieming, Chairman, Zhejiang Beta PharmaCo., China

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‘China is growing, and may Chinese arebecoming prosperous.’ reckoned Salman AlJishi, Chairman, Salman Group, SaudiArabia.‘But the question remains as towhether China is becoming more com-petitive.’With all the resources it has, Chinamust find ways to exploit its richest betterand more efficiently.What has to be done?Foreign exchange reserves, bank saving andthe country’s technological expertiseshould all be employed to make China morecompetitive, Yat Siu, Chief ExecutiveOfficer, Outblaze, Hong Kong SAR,concluded.‘China has money, markets,technology, and global brands that didn’texist 10 years ago,’ added Edgar Bullecer,Chief Operating Officer, Paglas Group ofCompanies, Philippines.The shift to theEast is not likely to end soon.‘WhileEurope struggles to rein in gaping budgetdeficits and the U.S. continues to sufferfrom high unemployment, China has

weathered the economic downturn better.China is tapping into growing domesticmarkets, fuelled by its emerging middleclasses eager to spend their renminbi,’opinedWu Qi, Senior Partner andVicePresident, Roland Berger StrategyConsultants, China.

In short, China is expanding and engagingthe world.At the close of the Sixth GlobalChina Business Meeting, a panel of businessleaders called for fundamental shifts inbusiness models and government policies toaddress the post-crisis economic order -where China is at the core.Theyrecommended partnerships between theprivate and public sectors to translate fiscal

Zheng Xiongwei, Executive Chairman,Asia Pacific CEO Association, China

Matthias Kamp, Editor China,WirtschaftsWoche, Germany

Mark Minevich, President, Going GlobalVentures,USA, on sustainable cities

Jennifer Angenend,Director,WaterFilledBarrier Systems,USA

Laurent Mosar, President, Chamber ofDeputies, Luxembourg

SteveTappin, CEO,Xinfu,UnitedKingdom, on what it takes to establishsustainable brands

Salman Al Jishi,Chairman,SalmanGroup,Saudi Arabia - about the intrinsicbusiness models leading to success

‘We are trying very hard to learn fromthe US’s mistakes’Zhu Jimin, Chairman, Shougang Group, China

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stimulus into real economic growth.Theyalso suggested a concerted strategy to investin sectors other than manufacturing - astrategy which shall lead to massive techno-logical innovation and a ‘green approachtowards growth’, as He Dongdong,President International, Sany HeavyIndustry Co., China, put it.And third, theyencouraged global firms to cooperate withemerging Chinese multinationals creatingwin-win frameworks which could benefitall players.‘Globalization isn’t a zero-sumgame where one country or one companygains only if another other loses.As Chinagrows, it will become an even larger marketfor our goods and services. It’s also likely tobe a continuing source of capital for us,’saidWajdi Maalouf, President,Consolidated Contractors Company,Greece. Robert Dennewald, Chairman,Fedil, Luxembourg, added that ‘China has

adopted a strategic and gradual approach toglobalization where the government plays akey role.’

The closing plenary was followed in theevening with the Gala Dinner at the HotelSofitel, which once again featured theformat that Horasis introduced since theinception of the Global China BusinessMeeting - structured discussions to providea maximum amount of knowledge exchangeand interaction in a variety of formal andinformal settings. ZhangWeijiong,VicePresident and Co-Dean, CEIBS, China, toldparticipants during the gala dinner:‘Education and innovation are the drivingforces of China’s rise.’ Jean-ChristopheIseux von Pfetten, President,The RoyalInstitute of East-West Strategic Studies,United Kingdom added that ‘China’sleadership in the global recovery is evident.

Claire Chung, Founder,Touch2give.com,Portugal

Edgar Bullecer, Chief Operating Officer,Paglas Group of Companies, Philippines

ShaoWenguang, President Europe, PhoenixTV, on future brands of Chinese origin

Robert Dennewald, Chairman, Fedil, Luxembourg in discussion with XuKuangdi, Chairman, CFIE

Jean-Christophe Iseux von Pfetten,Special Invited Delegate, CPPCC, China

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Hu Shuli, Editor-in-Chief, CaixinMedia, China

Iseux von Pfetten also underscored thatChina gives high priority to intellectualproperty protection and has made this anational strategy. In conclusion:‘The frankdiscussions at the meeting - whether on thepost-crisis economic order, sustainablegrowth or China’s firms increasingcompetitiveness - are the basis for mutualtrust and joint actions that will help ensurethe global recovery,’ as Liu Haiyan, SeniorVice-Chairman, China Federation ofIndustrial Economics, China observed.On behalf of Horasis, I would like topersonally thank the rapporteurs of the2010 Global China Business Meeting fortheir efforts in capturing the spirit ofconstructive dialogue in their contributionsfor this report.The Global China BusinessMeeting was a unique experience whichwould not have been possible without thededication and enthusiasm of our partnersfrom China, Luxembourg and the world.

The 2011 Global China Business Meetingwill take place inValencia, Spain, 7-8November 2011. Horasis looks forward towelcoming you again next year to an evenmore fruitful edition of the Global ChinaBusiness Meeting.

Dr. Frank-Jürgen RichterPresidentHorasis:The GlobalVisions Community

Wu Qi,Vice President, Roland BergerStrategy Consultants, China

Patricia Iserte, Representative of theMayor of Valencia, announcing the 2011Global China Business Meeting

ZhangWeijiong,Vice President andCo-Dean, CEIBS, China - hosting thegala dinner

Participants sharing a light moment Musicians welcoming participants

Zhou Heping, Chairman, Ruisitong RealEstate Co., China

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China: Inside out– Outside In

By John B.Kidd,Lecturer,Aston Business School

The sixth global China Business meetingwas this year centred on the Sofitel Hotel,the Castel of Septfontaine and the Luxem-bourg Conference centre, but there wasalso a pre-conference workshop organisedby the Cheung Kong Graduate BusinessSchool (CKGBS).TheWorkshop reviewedthe present and future state of ChinaBusiness from the viewpoints of successfulChinese business leaders and politicianswith dialogs undertaken with members ofthe audience.We also learned details of thechange of emphasis of the Chinese govern-ment with its consensus arising in its recentlyheld 12th Five-year Plan which will bepublished early in 2011. Notable in this newPlan is the renewed pressure by the govern-ment to undertake radical changes in itsinfrastructure - to strongly reduce pollutionand to use much greater levels of renewableresources such as wind and solar power.The

Plan will introduce enforceable reductionsbased on new targets to be met at province,township and firm levels.These will not beexpressed as wishes but as measured changesin levels. Following this interesting work-shop we convened at the Sofitel receptionto wait for our shuttle transport to CastelSeptfontaine and the opening of the con-ference with its reception and its welcomedinner.

At the Castel we were greeted by the musicof a jazz quartet, who provided backgroundmusic during the reception and throughoutthe dinner. During the reception we werewarmly welcomed by HRH Crown PrinceGuillaume of Luxembourg and LuiHaiyan, SeniorVice Chairman of the ChinaFederation of Industrial Economics.Theyexpressed their pleasure of hosting thismeeting of over 400 delegates from 45countries.They also stressed the many yearsof formal relationships between the smallbut ideally centred Luxembourg and thelarge rapidly developing China whose firmsare more and more looking to outwardinvestment.After the ‘virtual ribbon cuttingceremony’ we were invited to dinner wherethere were speeches by Jeannot Krecké,the Luxembourg Minister for the Economy &ForeignTrade (and incidentally the longestserving ForeignTrade minister within theEU); Xu Kuangdi,Vice Chairman of the10th National Committee of the ChinesePeople’s Political Consultative Conferenceand Jose Luis Guterres, Deputy PrimeMinster of Timor-Leste.All stressed in theirdifferent ways the need to be ecological inthe trades undertaken, not only betweeneach of their countries, but to maintain fullawareness of global resource management.

The working sessions through Monday 22ndNovember were undertaken in the Luxem-burg Conference Centre a few hundredmeters distant from the Sofitel Hotel.Thefour parallel Breakfast Sessions took placeover 07:30 until 09:00: I chose to attend

HRH Crown Prince Guillaume of Luxembourg welcomngparticipants

Liu Haiyan,SeniorVice-Chairman, ChinaFederation of IndustrialEconomics, during the welcomereception

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‘The Quest for Sustainability’ chaired byIván Máñez, publisher of Global Asiamagazine.Dorian Bishop, Chief ExecutiveOfficer, BV Capital Group,Andorra spokeof his firm’s inclination to conduct 25% ofits new project investment on projectsfocused on sustainability. He was worriedabout many projects that apparently wereconcerned to recognise ecological factorsbut which were effectively being ‘greenwashed’ to meet current global needs.From his work he thought that customerscould discern if the supplier was offeringsocially responsible products. In effect thiscould be translated to a subjective measureof the public safety or public health of theproduct – thus perceived safer productswould sell well. Edgar Bullecer, ChiefOperating Officer, Paglas Group ofCompanies, Philippines raised the ancillaryquestion of the supply of resources to aproduct also need careful measurement oftheir eco-impact. For instance the waterdemand and supply to often exceed thepotential of surface or shallow reservoirsand demand to much from deep aquifers ifsparse rainfall is not captured well for lateruse. Furthermore excessive pesticide use isnot sustainable either. Ron Kok, Founderand Chairman, ODME and OTB Group,

Netherlands remarked that although businessin China related to renewables were growingin absolute terms very quickly even theywere driven by a profit motive – howeverthere was cross-reference to the new 5-yearplan that will strongly focus all businesseson ecological matters in the future. Never-theless he agreed with Bishop that thejudgement of the ethics was a complex taskboth for the supplier and the customer.Zhang Xingsheng, Managing Director,North Asia,The Nature Conservancy,China, stressed the notion of ‘China Inc’and that after 30 years of the Chinesegovernment stress on GDP growth it wasnow time to slow this and to concentrate onbetter ecological performance.This we willall see as the next 5-Year Plan is published.However, the state-owned enterpriseswould take longer to move as they had aheavy inertia due to many factors, but theprivate firms will immediately be able tomove to new targets concerning a verystrong reduction in CO2 emission.Albrecht Graf Matuschka, President,Matuschka Group, Germany, suggested weneed also to consider ‘sustainablesustainability’ to promise longer-termbenefits and though more profit can bemade where there is a current gross

HRH Grand Duke Henri of Luxembourg with members of the Chinese delegation

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inefficiency we must look at all projectsand use whatever technology we have.Anexample might be to use solar power fordesalination – but China my lack a fullspectrum of technologies to combat allinefficiencies. Charles Moore, ExecutiveDirector, Committee EncouragingCorporate Philanthropy, USA supportedearlier speakers and stressed that corporatesocial responsibility ought to be a businessstrategy for all firms while KarenTang,Executive Director,The Better Hong KongFoundation, Hong Kong SAR, looked to the‘one world’ in which government andprivate firms ought work more closelytogether helped by the broader introductionof incentives, both financial and non-financial, for start-ups and novel eco-projects. Finally Ben Cotton, Partner,Earth Capital Partners, United Kingdom,noted that we have to strive to make thenot-yet-invented goods sustainable fromconception.This may be much easier inChina as it creates new machinery, systemsand other goods, but difficult in Europewith its stock of legacy equipment whichgenerate much waste.

The Opening Plenary addressed the questionof the probably weak global 2011 growthprospects although China seems not to havesuffered greatly.We were addressed first byXu Kuangdi who accepted the globalvariations in growth prospects. He notedthat China’s recovery has not benefited allits population equally as there remainedlarge disparities between the rural andurban incomes but also China ought not toremain as a producer of low-level consumergoods. Li Ruogu, Chairman, China Exim-bank, China supported those observations,adding global growth remain important butis confounded by the heavy debt burden inmany western countries, especially the US.These create an imbalance that will takesome time to resolve.Yet Juan María Nin,

Xu Kuangdi,Vice Chairman, 10th CPPCC, on China's globalmomentum

Iván Máñez , Publisher, Global AsiaMagazine, Spain,moderating the sessionon sustainabilty

Alastair Campbell, Chairman,Conservation Finance International,China

Anthony Chan, Chairman, InternationalChamber of Commerce - Hong Kong

Han Xiaoli, President, ErdosMengshanglijun

‘Domestic consumption is showingencouraging growth, led by a focus onemployment opportunities’Xu Kuangdi,Vice Chairman, 10th NationalCommittee of the Chinese People’s PoliticalConsultative Conference, China

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President and Chief Executive Officer, LaCaixa, Spain thought that China wouldshape the European and US futures, butit will not be a one-way pressure – develop-ment needs to be co-operative with anunderstanding of fair competition. KolapoLawson, Group Chairman, EcobankTransnational,Togo reminded us of theAfrican investments by China who arerepresented in 31 of the 38 central Africannations with investments in telecoms,mining, oil, railways and banking.Thereare even two ‘China-towns’ in Lagos andpossibly over all Africa there may be over2000 active Chinese firms. Zhu Jimin,Chairman, Shougang Group, China said thatthere may be 10% grown in outwards chinainvestment and it must get the US to be lessanxious (Europe though is calmer). Dialogueis the answer. Boris F.J. Collardi, ChiefExecutive Officer, Julius Baer Group,Switzerland, said he is a careful optimist for2001, though Ireland seems to have causeda problem just at this time; and there maybe other unknown issues in the future.Thus, in a similar vein, China must controlits inflationary inclination.Always one mustchallenge current views to balance overlyoptimistic and pessimistic views thus

gaining confidence for the future. LiDongrong,Assistant Governor, People’sBank of China, China, noted that China’sfinancial markets have improved over theyears which gives more confidence toinvestors – and incidentally, from otherpanel discussions, ought to allow easierstart-up ventures from inward investingoverseas firms.

After the coffee and contact break we cameto the five parallel Boardroom Dialoguesessions – herein I note the session on‘Orchestrating Effective Human Resources’focusing on the question of Chinese firmsentering global markets so the panellistswere asked to discuss stumbling blocks tosuch ventures.The session was chaired byme: John Kidd. Initially the panel wereasked to offer brief assessments, then hope-fully more in-depth coverage involving theaudience members. First, Noel Akpata,President,Take the Lead EconomicDevelopment, Nigeria firmly stated thatthat the Chinese firms must look carefullyat the human side of management.DingLieming, Chairman, Zhejiang Beta PharmaCo., China, noted the difficulties in insiderstart-ups, and in his high-science R&D

Connecting China and theWorld

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centred pharmaceutical firm he allocatedcompany shares to his staff to help themfurther identify in ‘their own firm’, ratherthan having them believing they were onlyhired staff: however, these staff were mostlyreturning Chinese with high expectations ofa continuance of a western life-style, so anequity share might be a normal expectation.LiWei, Member of the ExecutiveCommittee, Chinese Entrepreneur Global,United Kingdom, shared with us some ofher research findings from the Chinese staffin Chinese representative offices.Againthere was an expectation that local staffmight have needs unlike Chinese staff backin China, so outsider start-ups must takecare how they built up their staff. AndreasE Mach, Chief Executive Officer,International Family EntrepreneurNetwork, Germany, was very firm on theneed to carefully consider staff needsopenly, transparently and with truth thusgenerating trust between members.Karohy Shi, Chairman, Newcom Group,China, was an active outsider investor inhuman resources, not only in terms of salesstaff, but in developing an outsidermanufacturing presence: his brief advicewas to pay the market rate, or more, toretain staff. Of course they ought to beengaged in interesting work.And on thatpoint JacquesTourel, Chief ExecutiveOfficer,WorldTrade CenterWarsaw,Poland, discussed the tedium of entering anew country: the need to be patient and fillin all the forms that bureaucracy demand.In his experience in Poland there are two

main issues – getting the country to issuework permits (it can take time for thisprocess to be undertaken); and dealing withthe many aspects of acquisition of land orlegal rights involved with the start-up(again time is noteworthy, as well as theneed for good legal representation able tounderstand the needs of both sides, buttrusted by the Chinese).

I introduced a model that the Chinese maybe facing – that is, firms inside China willbe carrying all their Chinese conceptslearned naturally from childhood that maygrate on members of a target host nationand the staff of a target acquisition.Alter-natively the Chinese who have been edu-cated overseas at undergraduate, masters ordoctorate levels will have acquired abroader range of cultural views – yet may

Arrival of Jean-Claude Juncker, Prime Minister of Luxembourg

Richard Jian Li, Executive Director, GoldenConcord Holdings,Hong Kong SAR

John B.Kidd, Lecturer,Aston Business School,UK, debating withparticipants

ChenYihong, Chairman of China Dongxiang,listening to the panelists

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suffer from ethnic confusion. For instancethey may identify with their Chinese-nessbut may not speak or read Mandarin havingbeen born overseas and declined to learnMandarin. Nevertheless they will bedesirable recruits to the overseas investingChinese firm because of their overseaseducation. I further suggested theinevitability of the new wave of Chineseoutward investment being compared byacademic researchers with the historicJapanese investments - first in the near-east(relative to Japan), then in the US, later inEurope and once more in their near-east.There will be lessons to learn and others todiscard as the Chinese will not behave likethe Japanese.At this stage the panellistsreaffirmed their views and the audience alsocontributed – noting their worry that theChinese firm might view their humanresources not as a strategic force but as acost. In which case the Chinese firm mayexperience great resistance overseas assome non-Chinese individuals will quicklyresign their staff position if they perceive anunusual management style.After all, leader-ship is acquired by being gifted from thesupport staff, not by the head acting from aposition of authority: to get to that relation-ship good Human Resource Management isrequired at all staff levels operating withtrust and transparency. Some in theaudience expressed their doubts that earlyChinese overseas venturing might notundertake open management, and so severeconflict may occur, damaging the venture.

A half-hour Plenary followed withLuxembourg’s Prime Minister Jean-ClaudeJunker and the Chinese Ambassador toLuxembourg Zeng Xianqi expressing theirviews on the EU-China Agenda.The PrimeMinister was confident that China was andwill be very important for all of us in the21st century, and after 35 years of EU/Chinarelationships the former ought not now tobe lecturing China on a daily basis. Helooked forward to increasing links betweenLuxembourg and China. In response Zengoffered his optimism and suggested that theEU will be more competitive in the future.Also the 12th 5-Year Plan will pave the wayfor China and the rest to move forward, andof course Luxembourg will be high in theirregards at the centre of Europe that offersmany benefits, not least a stablegovernment.

Immediately before lunch Didier Mouget,PwC’s Managing Partner in Luxembourg,presented awards to three outstandingChinese business leaders over 2010.Theirachievements are detailed in anothersection of the report on this 6th GlobalChina Business Meeting.

The Plenary following lunch discussed thePost Crisis world economy.All panelmembers were in broad agreement – thatChina had played a major role in the globalrecovery - and there was a hope expressedthat China never itself had a financial crisis.While even smaller countries likeLuxembourg or Singapore could expect to

Frank-Jürgen Richter, Chairman,Horasis, welcoming particpantsLuis Go ́mez Cobo, Chairman and Founding Partner, SinoLatinCapital, China

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grow in the next 3 to 4 years China wouldalso be growing its internal market and by10 years hence it is most likely that Chinawould have the globe’s largest domesticmarket. So, if western firms wishedindividually to grow they must think ofjointly venturing with a Chinese partnerfirst in China, and then jointly venturingoverseas from its solid Chinese base. It wasnoted that China must learn to abide byinternational rules and engage intransparency.

Five parallel Boardroom Dialogue sessionstook place before the afternoon coffee break:I attended the session on ‘China’s aspirationfor low carbon energy while sustaininggrowth’ chaired by Andreas Schweitzer,Managing Director, Investissements Mistral,Switzerland.Danny Constantinis, ChiefExecutive Officer, EM&I, United Kingdom,noted that liquefied natural gas (LNG) wasplentiful and polluted much less than coalor oil fuels so could offer much for thefuture wherein the pollution of many gases,not only CO2, will have to be reduced.

Robert Dennewald, Chairman, Fedil,Luxembourg, presented some findings fromthe International Energy Agency (IEA) heldin Beijing in mid-November 2010.Theysuggested that China will (1) have impacton climate change, (2) it will benefit from a‘golden age’ for gas, (3) fuel pricingreforms in China will beneficially reduceCO2 emissions, (4) China’s leadershipdecisions and perhaps its large internalmarket will reduce the costs of alternativefuels or systems, and (5) more inter-connection will link China to the rest of theglobe. Jiao Xuding, SCP Oilfield ServicesCo, China, said that China can move moreto using renewables, but needs largerinward technology investment. LiYi,Chairman,Trony Solar Holding Co., HongKong SAR agreed and also said that state-

During a coffee break

Didier Mouget,Managing Partner, PwC, Luxembourg, announcingthe Chinese business leaders of the year

‘Liquefied natural gas (LNG) couldoffer much for the future wherein thepollution of many gases, not only CO2,will have to be reduced’Danny Constantinis, Chief Executive Officer, EM&I,United Kingdom

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owned firms are slower to change thansmaller private firms – however all spendless on R&D than the west as there was lesschance of financial reward in researchcompared with an acquisition with readysales outlooks. On a slightly different butrelated theme,Waji Maalouf, President,Consolidated Contractors Company,Greece, said that China needs to invest in‘smart grid’ technology and in research inpower storage, perhaps supported byincreased subsidies. Per Olofssen, GroupChief Executive Officer, ClimateWell,Sweden, reminded us that China has a largemarket and some form of partnering withinternal firms is needed. Once done, andafter internal market consolidation, the newventure can export its goods but in theshort-term complex regulations hinderprogress. Jeffery Chen, Chief ExecutiveOfficer, Neopac Lighting Group, China,Taiwan, presented an interesting thesis –that China produces affordable technologypartly because of its low-wage economy butalso because the goods designed in the USor Europe are over-engineered therebyincreasing costs.The interesting trick is toaccurately assess risk, then build to thatmeasure. In this aspect the design processneeds to be investigated as excessiveregulation may not be the cause of highprices or delivery time over-runs.

After the coffee break the final five parallelsessions got underway. I will report on thesession considering how China might designits new entrepreneur system to movetowards global business chaired by S Roy,Founder and Chairman,Asean Affairs,Thailand. Richard Jian Li, ExecutiveDirector, Golden Concord Holdings, HongKong SAR noted that many small firmswere self-developed and having acceptedadvice went public and continued theirprofit taking – often doing as StacyKenworthy, President,Asymsys, USA,suggested investing in multi-projects acrossmultiple markets. In this complex state theworkload is intense and fast moving sogaining for the Chinese entrepreneur a‘Fast-mover’ tag. Even so, these firms needto attract new technical talent as well asnew sources of capital. Zhou Li,AssistantDean, Cheung Kong GSB, China, contra-dicted the idea that there were 1.3 billionentrepreneurs in China – they ought to becurbed he said. Having been released 30years ago to develop growth for China thesepeople do not wish to work in teams: theyall wish to be the boss, which restricts theirnew development perspectives.WolfgangLehmacher, Chief Executive Officer (ret.),GeoPost Intercontinental, France, thoughtthe Chinese entrepreneurs were being re-developed to meet international standards,but in comparison the EU lack dynamism.

S Roy, Founder and Chairman,Asean Affairs,Thailand He Dongdong, President International, Sany Heavy Industry, with participants

Sylvie Ouziel, Chief OperatingOfficer,Accenture

Boris Levin,Managing Partner,Stargate Capital, Germany

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The Chinese firm on the other hand needsperhaps an EU or US partner to help withtheir movement towards globalisation, andalso the Chinese need to pay attention totheir Human Resource Management(echoing an earlier panel’s findings). JingDing, Member of the Board, Sino PrivateAviation, Hong Kong SAR, also stressedthat the Chinese ought to respect culturaldifferences, though good leadership willallow the staff to acknowledge the leader’swishes so there is some danger of ignoringthe cultural differences through a generallack of outsider knowledge. Finally,OliverNyumbu, Chief Executive, Caret, UnitedKingdom, considered that the entrepreneurfirms ought to balance soft/hard aspectspaying attention to culture and branding assoft aspects while being concerned to main-tain a strong technological advance therebybecoming more attractive to global partners.Several of the panel and delegates in theaudience mentioned that the leading partnerhad considerable difficulty in sharing hisknowledge so restricting natural growth.This may be alleviated by employingEuropean of US managers tasked with thisbroader task – but one further hurdle is thegeneral lack ofVenture Capital funds,though the State may help in this respect.

Several of the discussions in earlier panelswere repeated in the final plenary whichconsidered the building blocks that wouldhelp Chinese firms become globalised.Dinesh C Paliwal, Chairman and Chief

Executive Officer, Harman International,USA, noted that often managers thoughtthat developing trust within the firm wouldlead to a loss of their control, but this neednot be so. He said it was also veryimportant to exchange staff, with theoutsider firms sending to the Chinesepartner staffs who are A+ in technical skillsand also E+ in emotional skills so they willbe flexible in all respects in their newlearning environment inside China. SalmanAl Jishi, Chairman, Salman Group, SaudiArabia, said the Chinese firm must attemptto join in more parts of the supply chain so

raising their general abilities beyond that ofthe ‘assembler’. Yat Siu, Chief ExecutiveOfficer, Outblaze, Hong Kong SAR, stressedthat there were vast opportunities at alllevels in China and the outside world, andthere wasVenture Capital if one looked forit.He Dongdong, President International,Sany Heavy Industry Co., China, expectedthe sensitive entrepreneurial Chinese firmwould operate as a ‘glocalising’ firm – beingglobal in reach and respecting local aspectseverywhere. ZhangYue, Chairman, BroadAir Conditioning, China, as the finalspeaker noted that China had learned muchfrom the west but ought to integrate thewestern concepts of strategic management

‘China can move more to usingrenewables, but needs larger inwardtechnology investment’Jiao Xuding, SCP Oilfield Services Co, China

Lou Marinoff, Professor of Philosophy,The City College of NewYork,USA

Stan Fung,Managing Director, FarSightVentures, China, on Reviving EconomicGrowth

Guy Spier, Chief Executive Officer,Aquamarine Capital, Switzerland

IvanTselichtchev, Professor,NiigataUniversity of Management, Japan -Reviving Economic Growth

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to strengthen their planning, accountingand general management to increasetproductivity. In his own case he hadstudied how to assemble low cost buildingsand to do this quickly.We were pleased toview a short video showing in time-lapseform how he constructed a 15 storybuilding in 2 days and finished off thebuilding within one week (the Ark Hotel).This is a high-tech thermal and soundinsulated building resisting earthquakes tolevel 9. ZhangYue implied that if he couldmake this happen, others could be equallyas successful in their sectors.

There were several points that were oftenre-emphasized during the panel and plenarysessions: the primary point being that the12th 5-year Plan will stress China’s movetowards ecological development withmeasures being put in place from Beijingdown to firm-level to strongly reduce CO2emissions as well as embracing more andmore renewable energy sources. Coincident

within this plan are more opportunities toacquire new financial grants to develop newventures, especially if these venturesinclined to eco-protection.

Second, we understood that many Chinesefirms were poised to open contacts in theoutside world.There have been notabledevelopments in mining and some othersectors, but now many firms were con-sidering becoming global entities.We haddiscussed several factors they need to takeinto account – the most serious being theneed to treat their staff as assets, not just asa cost.To aid their internationalizationprocess it was suggested that they join withan outside partner: this might be describedas ‘Inside-out’.

Thirdly we noted that time may be ripe formore inwards investment by outside firmsto join with a Chinese partner to exploitthe huge Chinese market existing withinmany sectors.This development may laterresult in a new outwards development bythe one-time inwards investor having gainedstrength from its extensions within Chinaso could be called ‘Outside-in/out’.

Finally the outwards investment flows willinevitably invite academic comparisons tobe made with those earlier undertaken byJapanese firms.We know that the Chineseperson and the Chinese firm cannot becompared in detail with their Japaneseequivalents – but there is a strong history ofacademic investigation of ‘entry modes’ ofinternationalizing firms, and new data isalways attractive to the academic.Anunderstanding of this literature might aidthe Chinese firm in their new quests in theglobalised marketplace.

‘China had learned much from the westbut ought to integrate the westernconcepts of strategic management tostrengthen their planning, accountingand general management to increaseproductivity’ZhangYue, Chairman, Broad Air Conditioning,China

Andreas Schweitzer,Managing Director,Investissements Mistral, Switzerland

ZhangYue, Chairman, Broad AirConditioning, on urbanization andglobalization

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China Exim BankEyes Africa Loans,Commodity Focus

By Juliane von Reppert-Bismarck,Reuters, 22 November 2010

The Export-Import Bank of China seesplenty of opportunity to extend loans inAfrica, focussing on raw materials and oil,while commercial banks are steering clearof the risk, its chief executive said on Mondayat the Global China Business Meeting.

‘There are a lot of areas to operate - particu-larly in the raw materials and oil sector.Certainly this is the area we will focus on,’Exim Bank Chairman Li Ruogu toldEuropean and Chinese executives, bankersand officials meeting in Luxembourg.

This month European Union trade chiefKarel De Gucht rejected what he calledChina’s ‘cheque book’ approach to doingbusiness with Africa, saying the EU wouldcontinue demanding good governance andtransparent use of funds from its tradingpartners.

‘China does not interfere in the internalaffairs of Africa.What we want to do is

foster their own development capacity,’ Litold the conference.‘Democracy andhuman rights, these are fantastical terms.Without economic governance they arenothing,’ he added.

Exim Bank is one of China’s three policybanks that extend credit in line withgovernment initiatives.‘Very few foreigncommercial banks are consideringproviding finance in Africa.They may seethe risk aspects more than they see thebenefits,’ Li told Reuters.

‘We take a long-term view.We don’t expectprofits this year or next year; we see thingsin decades,’ he said. If the Europeans followthe Chinese example they may have an

opportunity in Africa,’ Li added.

He said Exim Bank would also focus onAfrica’s agriculture sector, where it sees apotential for recovery and future exports,potentially supplying China’s boomingdemand for basic commodities.

‘Africa has very good agricultural land andyet they’ve been importing food from other

‘There are a lot of areas to operate -particularly in the raw materials andoil sector. Certainly this is the area wewill focus on’Li Ruogu, China Exim Bank, China

Lu Xingyu, President, Future Leader's Club, and Ninel Seniuk,CEO, Business Partnership Kiev-Beijing

Frank Adu,Managing Director,CAL BankGhana,Ghana, listening to hisco-panelists

Zhang Xiaodong, Chairman,WinhopesInvestment, China

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countries.We are going to developagriculture cooperation so that the Africanscan rely on themselves for food and evenexport, maybe to China.’

An EU-Africa summit scheduled for nextweek inTripoli is expected to includeEuropean attempts to improve commercialand diplomatic relations with Africa, whichwere damaged by a long-standing row overregional trade accords.

China’s presence in Africa has revivedEuropean interest in a continent with 1.4billion inhabitants and an average GDPgrowth rate of 8 percent, said KolapoLawson, Chairman of pan-African bankinggroup EcobankTransnational.

‘The Chinese have taken advantage ofAfrica’s growing middle class by supplyingthe needs of consumers,’ Lawson said.Europe’s growing interest, following on theheels of China, is allowing Africangovernments to demand better terms innegotiations, Lawson said.

Ecobank, west and central Africa’s leadingregional banking group, has entered acooperation agreement with the Bank ofChina to deepen trade relations, he said.‘One would say it’s a very happyrelationship, and it’s a relationship that onehas a great deal of optimism incontemplating.’

What kind of recovery can we expect in 2011 in a global economic landscape that has been fundamentally changed by the crisis?

Kola Karim, CEO, Shoreline Energy Int.,Nigeria; Li Rugu, Chairman, China Exim Bank Studying the programme

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China’s FosunLaments EUProtectionism

By Juliane von Reppert-Bismarck,Reuters, 22 November 2010

Shrinking European demand and risingprotectionism are leading Chinese firms toturn to domestic markets, the head of FosunInternational, China’s largest private conglo-merate, said on Monday.While others lookto home, Fosun is planning to tackle theissues faced by Chinese firms in Europe byestablishing a new investment platform in theEuropean Union -- which, with 500 millionpeople, is the world’s largest trading bloc.

Fosun has interests in pharmaceuticals,mining and real estate and recentlyannounced plans to spend up to $2 billionto buy financial services companies as itbets on China’s domestic consumptionbooming in the coming years. Fosun’s ChiefExecutive Liang Xinjun said Europe’sgenerally lacklustre growth and increasingurge to raise levies on certain imports fromChina had made it all the more pressing todevelop markets among China’s 1.3 billionpeople.

‘The challenge is in the weakening ofdemand coupled with protectionism inEurope,’ he told Reuters on Monday.‘MostChinese companies have noticed theseproblems so the first thing to cope with isto sell products on the domestic market,’ hesaid, speaking through an interpreter at theGlobal China Business Meeting.

As the European Union began to reboundfrom recession this year, China has seenbooming exports of car wheels, electronics

Anson Chan, Chairman and CEO, Bonds Group of Companies,Hong Kong SAR,making a point on the globalization of Chinesefirms

Premier Juncker in discussion with Xu Kuangdi and Frank-Jürgen Richter

Xiang Bing,Dean, Cheung Kong GSBHe Dongdong, President International, SanyHeavy Industry Co.

‘We want to establish an investmentplatform in Europe, to better access themarket‘Liang Xinjun, Chief Executive Officer, Fosun Group

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and construction materials.At more or lessthe same time, the EU began imposingimport tariffs on a range of Chinese goods.The EU denies it is being protectionist,saying it is taxing Chinese imports that areillegally priced and subsidised.

Liang rejected moves by European policy-makers to challenge the legality of Chinesestate subsidies, including cheap bank loansand preferential property leases.‘This isnonsense.We Chinese companies don’treceive anything.There are no subsidies forthe steel sector,’ he said.

Fosun, founded in 1992 by Liang and threeother graduates of Shanghai’s FudanUniversity with initial capital of $4,000, isnow worth $5 billion with five mainbusinesses: pharmaceuticals, real estate,steel making, mining and consumerservices. Besides focusing on China’sdomestic market, Fosun aimed to set upoperations in Europe in the hope ofavoiding high EU duties, Liang said.

‘We want to establish an investmentplatform in Europe, to better access themarket,’ he said, adding Fosun was in talkswith an EU private equity firm ‘with greatknowledge of the local market’ to findacquisition opportunities in the leisure,luxury goods and pharmaceuticals sector.

Fosun aimed to buy pharmaceuticalscompanies in the EU to co-develop genericdrugs and sell Fosun’s own diabetes drugs,liver treatment and other medicines directlyin the EU, he said. Liang has in the pastpredicted China will become the second- orthird-largest drugs market globally withinfive years, following similar strides inluxury goods, automobiles and financialservices.

Participants gather for the opening plenary

Carla Cico, Chairman, Rivoli S.P.A., Italy, sharing a laughter with Liang Xinjun, CEO, Fosun Group

Liu Hongchuan, Senior Partner,Broad & Bright, China

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Honoring theChinese BusinessLeaders of theYear 2010

By Didier Mouget,Managing Partner,PwC Luxembourg

This year, the Global China BusinessMeeting has been held in Luxembourg, asmall but very dynamic country at the heartof Europe.Around 400 business leadersfrom all over the world gathered here onNovember 21-22, to share their perspectiveon China’s development, the globalizationof Chinese firms, and their strategy towardsfuture China. PwC is proud to be thestrategic partner of the 6th Global ChinaBusiness Meeting and award four ChineseLeaders who have been chosen by a jury ledby Horasis.These Chinese decision makersexcel in leadership and business strategy.They are highly significant of the economicdevelopment of today’s China.

Even with the economy subdued, however,the tremendous entrepreneurial spirit ofChinese business leaders has driven theeconomic growth, the development and theinfluence of China at worldwide level.Therefore, four business leaders have beenawarded for their outstanding performanceas business leaders this year and for being anexample for all the entrepreneurs.

• Mr. Li Ruogu Chairman and President ofthe Export-Import Bank of China (Exim)since June 2005. China Export-ImportBank Fully is owned by the Chinese govern-ment and is under the direct leadershipof the State Council.The Bank has 17domestic business branches and repre-sentative offices as well as three overseasrepresentative offices in South Africa,Paris and St. Petersburg.

• Mr. Nan Cunhui, Chairman of the Board& Chief Executive Officer of CHINTGroup Corporation. CHINT GroupCorporation, formerlyThe Switch Factory,was founded in 1984 and is now one ofthe first class global electrical productmanufacturers with 23,000 employees.

• Mr. Zhang Jianwei, President ofSinotrans Limited. He is also the Directorof Sinotrans & CSC Group and the Chair-man of Sinotrans Air, the managingdirector and deputy chairman of ChinaMaritime LawAssociation, as well as vicechairman of China Federation of Logistics& Purchasing (CFLP).

Li Ruogu, Chairman, China Eximbank, with Premier Juncker and Didier Mouget.

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Li Ruogu, Chairman, China Eximbank; Juan MarÌa Nin, President and Chief Executive Officer,La Caixa, Spain

• Mr. ZhangYue, Chairman of Broad AirConditioning. He has been granted over100 patents for his inventions.And he alsoserves as theVice Chair of the UnitedNations Environment Programme’sSustainable Buildings & Climate Initiative(SBCI).

Mr. Zhang Jianwei, who has considerableexperience in the transportation andshipping industry, has run Sinotrans since2002 as President. Sinotrans is one of thekey state-owned enterprises in China; itprovides integrated logistics serviceincluding sea, air and road transportation;storage and terminal services. Due to thequality of the services provided by thecompany, Sinotrans is one of the largestliner shipping companies in Asia. In 2009,the shipping market had to deal withchallenges.The global financial crisis hit theshipping industry hard. Despite the volatilemarket situation, Mr. Zhang manages tomaintain the company at the top. Hedecided to invest in strategic resources ofgreat potential, such as land for warehousesdistribution centers and vessels.This qualitydriven investment maintains Sinotrans atthe top level of services for the comingyears. Sinotrans is well involved on theglobal shipping market but has alsoexpanded its intra China Logistics Businessdue to the nation’s booming economy. Mr.Zhang shows state of the art quality ofmanagement.

During his brilliant career, Mr. Li Ruoguhas strongly supported China’s rate policy,especially when he was a Deputy Governorof the People’s Bank of China. Now as theChairman and President of the Export –Import Bank of China (EXIM), he aims atsupporting Chinese enterprises’ inter-national operations and their imports andexports. Meanwhile, Mr. Li Ruogu is oneof the key pioneers of the cooperationbetweenAfrica and China.The EXIM bankis involved in financing infrastructures inAfrica. It has financed several projects inAfrica. For instance, one of the first

Nan Cunhui, Chairman, Chint Group, awarded by Premier Juncker

Award ceremony in honor of Zhang Jianwei, President, Sinotrans, China

ZhangYue, Chairman, Broad Air, awarded by Didier Mouget,Managing Partner, PwC

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projects supported by the EXIM was theSports palace in Cameroun.Another projectwas to finance the ICT infrastructures tostrengthen phone and communicationsaccess. Mr. Li Ruogu plays a key role inChina as he supports the Chinese enter-prises and positions China in the field ofthe cooperation.

Mr. Nan Cunhui is the Chairman of theBoard & Chief Executive Officer of CHINTGroup Corporation and has had an out-standing and incredible ascent that bringshim at the top. He has started his career asshoe repairer. Now he is one of the mostimportant entrepreneur in China. In adynamic and ever changing world, CHINT

has always adapted its business.With itsstate of the art technologies, high qualityproduction and spirit of innovation, CHINTis one the China’s largest enterprise. NowCHINT group has entered the solarindustry and has invested a lot in a projectin the Gansu Province.Thanks to his workand his talent, Mr. Nan Cunhui embodiesthe spirit of entrepreneur in China.

Mr. ZhangYue, the Chairman of Broad Airconditioning, was born in Changsha in 1960and graduated in 1980 with a degree in finearts.After working as a teacher andlibrarian for several years, he foundedBROAD in 1988.As an entrepreneur, hepoured his innate passion for creativethinking into his company. He has beengranted over 100 patents for his inventions,among the most famous, theVacuum Boilerin 1989, the Direct-fired Chiller (non-electric air conditioning) in 1992, theCooling, Heating and Power (CHP) System

Celebrating the Chinese Business Leaders of theYear

‘Growth expectations need to bemoderately adjusted downward toensure that growth is sustainable’Nan Cunhui, Chairman, Chint Group, China

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in 1999, the A/C indoor units withelectrostatic cleaner in 2005, and theFactory Built Sustainable Building in2009.Each of his inventions has broughtabout a revolution in the industry, makingBROAD a technological leader in manyfields. Facing the urgent situation of climatechange, ZhangYue heartily wishes to turnhis electric air conditioning into non-electric air conditioning as the latter savestwice as much energy. But his greatestaspiration is to be 5 times more energyefficient through sustainable buildings, forexample.

All the achievements of these 4 ChineseBusiness Leaders of the year are exceptionaland show us the dynamism, the innovationand the excellence of Chinese CEOs. Inaddition to economic performance, theseLeaders are willing to change society.Theytruly deserved to be honoured as BusinessLeaders of the year.

Participants during a boardroom panel

The 6th Global China Business Meeting was attended by a recordnumber of participants, from 45 countries

Discussions during a break

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LuxembourgAims to be EUGateway forChinese Firms

By Xinhua News Agency,23 November 2010

Luxembourg aims at being a gateway forChinese firms to explore the EuropeanUnion (EU) markets, the country’s topeconomic official saidTuesday.

Economic ties between China and Luxem-bourg were becoming ‘even stronger be-cause Chinese people have discoveredLuxembourg as their possible hub andpossible gateway to the internal market inthe EU,’ Minister for the Economy andForeignTrade Jeannot Krecké said in aninterview with Xinhua on the sidelines ofthe sixth Global Chinese Business Meeting.

Krecké said the meeting, which attractedmore than 400 business leaders from Chinaand elsewhere in the world, was the biggestevent of its kind held in his country.‘It isdefinitely a promotion for us to have so manybusiness leaders in Luxembourg,’ he said.

Trade relations between China andLuxembourg have flourished in the pastdecade, with bilateral trade volume up fromaround 100 million U.S. dollars before2002 to nearly 3.3 billion dollars in 2009despite the international financial crisis,according to official statistics.

Krecké said the close ties between the twocountries were built on a long tradition.‘There is a longstanding tradition withChina.We started more than a century agowhen we helped Chinese steeldevelopment,’ he said.

Nowadays, Luxembourg has become amajor hub for Chinese goods enteringEurope by air. Each week, there are about40 flights from China’s mainland,Taiwanand Hong Kong to Luxembourg, accordingto Krecké.The goods are then dispatched totheir European destinations.

Besides transit trade, Luxembourg, aleading financial center of Europe, issearching for cooperation opportunitieswith Chinese companies in some new areas,notably financial services.

‘We have many banks here.We have really alot of know-how in this area,’ Krecké said.Several top Chinese banks, including theIndustrial and Commercial Bank of Chinaand Bank of China, have already openedbranches in Luxembourg.

Krecké said his country is providingassistance to Shanghai in the Chinese city’sbid to become a top global financial centerin the coming years.‘We are contributingto them.We are working together with the(Chinese) central bank and also with bankshere,’s he said.

The Crown Prince of Luxembourg hosting representatives of the Chinese delegation

‘There is a longstanding tradition withChina.We started more than a centuryago when we helped Chinese steeldevelopment’Jeannot Krecké,Minister of the Economy andForeignTrade, Luxembourg

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