(2014年1月14 日 香港)今日,中国日报第三次携手亚洲金融论坛,假湾仔会议展览中心,举办了题为“东盟经济共同体未来的战略机遇”的论坛,讨论2015年东盟经济体成立给中国以及东盟各国带来的机遇和挑战。 中国新一代国家领导人高度重视与东盟国家的合作与发展,并在对东盟国家的访问中提出建设“中国东盟命运共同体”和“2+7合作框架”规划,此次论坛以“东盟经济共同体”为主题,紧跟时事热点,展开了积极的讨论。 论坛主席中国日报亚太分社社长周立在致辞时表示,拥有6亿多人口的东盟国家市场发展空间巨大,但在社会经济等方面仍存在着较大差异。因而,东盟经济共同体规划经济一体化的蓝图来解决这些问题。 本次论坛邀请到印尼常驻东盟大使斯瓦加亚、全国政协常委、智经研究中心理事胡定旭、香港特区CVC亚洲董事合伙人管文浩、中国东盟投资合作基金首席执行官李耀、印尼基础建设担保基金总裁罗思丽、香港国际经济研究学术研究副总裁肖耿、马来西亚亚洲策略与领导研究院创始人兼首席执行官杨元庆等作为演讲嘉宾。 斯瓦加亚大使在讨论中提到,加强中国和东盟之间的合作来共同解决贸易、投资和旅游业的不平衡问题。他指出,东盟向中国的出口不断增加,且具有很大的增长空间;东盟向中国的外商直接投资远远超过了中国对东盟的外商直接投资;访问东盟的中国游客仍然达不到总数的10%。他期待通过进一步加强中国和东盟的伙伴关系来促进东盟经济体的整体发展。 罗思丽总裁以自己国家印尼为例,提出东盟要进一步加强基础设施建设,并且希望引进更多外商投资。 肖耿副总裁则提出,自由贸易是推动经济发展的关键因素,有助于创造人才、资本和基础建设等价值,香港自由贸易港口将对东盟共同体的发展起到积极作用。 此次论坛围绕着东盟经济共同体建成将为中国带来什么机遇和挑战、对亚洲乃至全球商业和投资环境带来怎样的战略改变、以及中国和东盟各国各行各业,如银行、金融服务、保险、基建、物流及旅游业等,在这一划时代的机遇中如何把握商机进行了深入的探讨,吸引了220多名金融、商界、学界的精英人士出席。 有關中國日報亞洲領袖圓桌論壇 「中國日報亞洲領袖圓桌論壇」旨在搭建一個由亞洲國家和地區的政、商、學界領袖和社會精英參與的高端對話和交流平臺,圍繞亞洲地區經濟、商業、產業和社會發展等具有戰略影響的重要議題展開討論和分享見解,以增進中國與亞洲和西方國家的交流和理解。 www.cdroundtable.com PDF Download: attach/pdf/AFF14012014/%E6%96%B0%E8%81%9E%E7%A8%BF_%E4%BA%9E%E6%B4%B2%E9%87%91%E8%9E%8D%E8%AB%96%E5%A3%872014.pdf
2014-01-14The global economy's continuing shift eastward will further enhance Hong Kong's role as a premier international business and financial center, local officials said at the two-day Asian Financial Forum in Hong Kong. Leung Chun-ying, chief executive of the Hong Kong special administrative region, said in his welcome address on Jan 13 that despite slower growth in major Asian economies last year, the region continues to be an engine powering world growth. "Here in Asia, the Chinese mainland's economic growth for 2013 is estimated at 7.6 percent, according to the International Monetary Fund's projection in October last year, the slowest expansion in 14 years. And Japan's growth momentum has shown recent signs of weakening," Leung said.
2014-01-06HONG KONG - Hong Kong will aspire for more involvement in drafting the nation's 13th Five-Year Plan and will play a bigger role in yuan globalization, Chief Executive Leung Chun-ying said on Tuesday. Addressing the forum - "Financial development in China and implications for the global economy" - organized by China Daily at the Hong Kong Convention and Exhibition Centre, Leung said: "The consultation process has just started and Hong Kong wants to be proactive, it doesn’t want to merely receive a drafted, finalized 13th Five-Year Plan." He said: “We want to provide feedback to various organs of the central government on our experiences in implementing the 12th Five-Year Plan and we want to share with the central government our perspectives on how both Hong Kong and the country could benefit from the new plan.” The yuan globalization provides “huge opportunities” to Hong Kong as one of the key financial centers of the country, and the move will change the whole concept of world trade, Leung said. “Renminbi globalization is more than promoting a new international currency, it creates a whole new mindset in international trade with the Chinese mainland.” “And as a global financial center, it’s Hong Kong’s mission to promote the use of Renminbi in the world,” Leung said. The Pacific Trade and Development Conference, the think tank that helped shape the Asia Pacific Economic Cooperation (APEC), and Hong Kong Institute for Monetary Research, a research organization established by Hong Kong Monetary Authority (HKMA), were co-sponsors of Tuesday's forum. More than 200 business leaders, academics and government officials attended the forum. The panel discussion that followed the forum focused on what China has done and will do in future in terms of financial development and reform, and how Hong Kong can participate in the process so that the city benefits from it. http://www.chinadailyasia.com/news/2013-11/19/content_15099994.html
2013-11-23A series of government-led initiatives aimed at boosting connectivity between Asia, the Middle East, Europe and Africa could help increase trade and power economic growth, but only if theoretical goals and practical realities can be meshed. For more than a year, China has been pushing forward the idea of rejuvenating trade along the ancient Silk Road, both overland and by sea. A key goal is to create a more integrated economic belt that would include just about every economy — from the Philippines, across East Asia, through Central Asia and into Europe and Northern Africa, all the way to Portugal at its furthest point. "China has already taken the initiative in launching the New Silk Road for Asia,” said Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, speaking in Hong Kong on Nov 19 during a forum titled Redefining the New Silk Road: Strategic Regional Initiatives to Improve Connectivity in Asia and the World. The China Daily-sponsored roundtable session was held as part of the two-day Asian Logistics and Maritime Conference, which opened in Hong Kong on Nov 18. “Both the public and private sector will undoubtedly benefit from these discussions,” Zhou added. China’s financial commitments to this and similar efforts to date have risen to $100 billion. Among these pledges is an offer of loans worth more than $20 billion to support the construction of regional infrastructure. At the end of the Asia-Pacific Economic Cooperation (APEC) Summit 2014 in Beijing earlier this month, China’s President Xi Jinping pledged $40 billion for a Silk Road Fund, to invest across the region. The Asian Infrastructure Investment Bank (AIIB), largely funded by China and supported by a range of countries, is moving forward as is the so-called BRICS Bank to bring together Brazil, Russia, India, China and South Africa. The proposed Free Trade Area of the Asia Pacific will help develop the software to go along with the hardware. The idea is to “give more muscle” to the links that are underdeveloped. Sri Lanka, where China is backing the construction of a modern port, is the first beneficiary of these loans. The Sri Lanka project is the latest but certainly not the only infrastructure project China is involved in, said Zhou. The country is working with neighbors and trade partners to build more infrastructure and telecom systems in the region in order to further integrate trade systems and push forward agreements reached during the latest APEC summit, he added. Last year, Xi announced China’s plan to drive forward the Silk Road initiatives and build a Silk Road economic belt. The aim of the various related projects such as One Belt, One Road or the Maritime Silk Road is to increase connectivity, within Asia and with other regions. As well as the AIIB and BRICS Bank, also pushing forward these goals is the five-year-old China-ASEAN Investment Cooperation Fund (CAF), which invests largely in infrastructure projects in the 10-strong Association of Southeast Asian Nations. The bloc’s member countries, both jointly and individually, are key components of the Silk Road. "China has a lot of initiatives to drive regional development,” said CAF chief executive Li Yao. “For any economic growth, for any industrial cooperation, connectivity is very important ... Five years ago, we set up this fund to focus on connectivity.” So why does China want to do this? “To build the Silk Road and share the prosperity,” said Li. “In this way, China can play a positive and constructive role in regional development.” But while governments typically respond positively to the idea of more investments, the key to moving these projects forward is execution. This includes connecting the various modes of transportation involved in logistics. "The faster the trade barriers can be lowered, the faster Asian economies can grow,” said Vivien Lau, managing director of Hong Kong Air Cargo Industry Services, a subsidiary of Hong Kong Air Cargo Terminals, the largest air cargo terminal operator in the world. The company’s main goal is to drive Hong Kong as a hub for the global flow of cargo. "This new Silk Road strategy is very high profile at the national level,” said Lau. “This initiative is very much in line with the APEC initiative about connectivity.” Two hurdles remain, though, to linking the region more efficiently: One has to do with physical infrastructure and the other with the software required to make the best use of the physical links. Despite huge investments, Asia still has some way to go in terms of physical infrastructure. Although places like Hong Kong, Singapore, South Korea and much of the Chinese mainland have spent a lot to build up infrastructure networks, for other places there is an urgent need for new and improved roads, airports, water ports, telecom networks and energy grids. Asia has relatively fewer airports and paved runways than other parts of the world, particularly North America, said Lau. Creating an economic belt to span three continents will require efficient road, rail, sea and air route connections, she explained. "The efficient use of intermodal freight and transportation is becoming more and more important,” said Lau. Along the Silk Road regions, most goods are moved through sea routes, which take around 45 days. More rail links, roads and even airports could speed this up significantly. "The underlying principle is connectivity,” said Lau. “Connectivity does not only mean the hardware network … but it encourages the movement of goods and people between markets.” Hong Kong is one place that has done connectivity well and has emerged as one of the biggest trade and logistics centers in the world. "In Hong Kong, we can pride ourselves on being number one in the world in terms of air cargo because of connectivity,” she said. The city’s air routes connect it to 180 countries globally and it is located just five hours away from half of the world’s population. But development in Hong Kong is slowing while it is speeding up in the Chinese mainland. An illustration of the slow pace is the proposed construction of a third runway at Hong Kong International Airport, which has been under discussion for years. By 2018, said Lau, Hong Kong’s airport will be operating at capacity but it could take until 2023 for the new runway to be opened. Meanwhile, nearby Shenzhen and Guangzhou in southern China have built new terminals and added runways. "The question to ask is how we can position ourselves to leverage these opportunities?” said Lau. It is up to the industry to put together the various piece of this puzzle. Elsewhere in Asia, particularly in some Central or South Asian countries, there are not enough logistics infrastructure or services to facilitate connectivity, said Gordon Lam, chief representative and general manager for Southern China with Li & Fung Development. Lam, who also co-authored a book on the development of the Silk Road published in China this year, said a case in point is rail, which often operates on different track gauges in different countries. "To build a Silk Road economic belt, we need to solve a lot of these issues,” he said. “There should be very big investments in software and hardware to complement these developments.” Investment from both the public and private sectors is likely very worthwhile. "Logistics standardization is actually the core among all these things,” Lam added. “The combined market is actually huge.” Taking advantage of “huge opportunities” may require a shift in attitudes toward investment and policies as business, trade and supply chains now move much faster than ever before. The lead time for product sales, for example, has dropped from more than a year to just a few weeks in some cases. Supply chain management can help connect the world, said Lam, while helping companies grow by providing more value-added services. Providing such services has helped Lam’s employer, Li & Fung, grow into a global player by not only managing supply chains but also by providing services and benefiting from the increasing connectivity that exists regionally as well as globally. "We should tap these opportunities to source more products from these countries and sell them back to China and Asia,” said Lam. “In the past we used to source in the East and sell to the West, but now we are also sourcing in the West and bringing these good things to the East.”
2013-11-21Expert Views on China’s Financial Development and Its Global Impact Hong Kong, Nov. 19, 2013 - China Daily today co-organized a special panel discussion on “Financial Development in China and Implications for the Global Economy” with the Pacific Trade and Development Conference (PAFTAD) and Hong Kong Institute for Monetary Research (HKIMR). The guest of honor and keynote speaker of the by-invitation-only forum was The Honourable Leung Chun-ying, Chief Executive of Hong Kong Special Administrative Region, People’s Republic of China. Other distinguished panelists at the event held at the Chancellor Room of Hong Kong Convention and Exhibition Centre included Prof. Wendy Dobson, Professor and Co-Director, Institute for International Business, Rotman School of Management, University of Toronto; Dr. Narongchai Akrasanee, Former Minister of Commerce, Senator of Thailand and Chairman of MFC Asset Management Plc.; Dr. He Dong, Executive Director (Research) of Hong Kong Monetary Authority cum Director of Hong Kong Institute for Monetary Research and Mr. Benjamin Hung, Executive Director and Chief Executive Officer of Standard Chartered Bank (Hong Kong) Limited. “As China's global financial center, Hong Kong has been given the responsibility to test, launch and develop new products and initiatives to promote Renminbi liberalization. Hong Kong is an international financial center, it is our mission to promote the use of Renminbi in the world.” said Mr. Leung during his keynote speech. As the Forum’s Co-Chair, Mr. Zhou Li, Publisher & Editor-in-Chief of China Daily Asia Pacific put it, this high-level discussion provided more insights of the communique issued after the Third Plenary Session of the 18th Communist Party of China Central Committee (CPCCC), which pledges to “speed up the building of China’s market system“. Prof. Edward K. Y. Chen, the other Forum’s Co-Chair, who is also the Chairman of Council of Advisers of the Hong Kong Institute for Monetary Research believed that Hong Kong has its own role to play in driving forward the growth of the second largest economy. In addition, Dr. He cited at the panel discussion that “capital convertibility of the yuan should be considered as a spectrum, it is not a black and white picture. We have a spectrum of difference shades and colors.” The forum was attended by over 200 CEOs, senior executives, professionals from financial and business sectors, academics and media industry. Discussions were held on China's financial and banking reforms, the internationalization of the RMB as well as the challenges and opportunities these will bring about for Hong Kong in the years to come. It marks the first cooperation ever between China Daily PAFTAD and HKIMR. From time to time, China Daily Asia Leadership Roundtable organizes forum on topics related to China and Hong Kong’s latest development in various industries including finance, economy, culture and environment etc. ### About China Daily From print to digital media, from China to America, Europe, Africa and the rest of Asia, the China Daily Group, with 13 print publications, is an authoritative provider of information, analysis, comment and entertainment to global readers with a special focus on China. While China Daily has firmly established itself as the leading English-language news organization in China since its founding in 1981, the group also publishes the Hong Kong, US, European, African and Asia-Pacific editions of the flagship brand with a total circulation of 800,000. The group is accelerating its pace of overseas expansion through its global reporting and communication networks, and in the process, building a world-class multimedia enterprise. The flagship newspaper publishes 24-page editions Monday through Friday, plus 16-page editions on Saturday and Sunday. It uses cutting-edge design, allied to dynamic photographs and artwork, and encompasses in-depth reports to analyze affairs both in China and internationally. www.chinadaily.com.cn About The Pacific Trade and Development Conference The Pacific Trade and Development Conference (PAFTAD) is an informal private academic conference series which originated in 1968. Since this time, PAFTAD has been a driving force behind the development of thought on Pacific trade and development issues and important economic policy questions facing the region. www.paftad.org About The Hong Kong Institute for Monetary The Hong Kong Institute for Monetary Research (HKIMR) was established in August 1999 by the Hong Kong Monetary Authority (HKMA), with the objective of conducting research in the fields of monetary policy, banking and finance that are of strategic importance to Hong Kong and the Asian region. www.hkimr.org
2013-11-20专家汇聚探讨中国金融发展及全球经济影响 (2013年11月19日 香港)中国日报今天在香港举办题为「中国金融业发展对全球经济的影响」的论坛,讨论中共十八届三中全会为香港保持国际金融中心地位所提供的机遇。香港特别行政区行政长官梁振英出席并发表主题演讲。 梁振英在演讲中表示香港未来会进一步加强与内地的金融合作。他相信香港能从国家的深化改革和扩大开放中取得新的动力,促进经济进一步的增长。同时,他还强调人民币国际化对香港来说是个绝佳的机会,扩大人民币在世界的影响也是香港的使命。人民币国际化不仅是货币应用的一个扩展,更是给世界一个全新的思路。 中国日报亚太分社社长兼总编辑周立在致辞中说,论坛在中共十八届三中全会刚刚闭幕之际举办意义特殊,三中全会通过了《关于全面深化改革若干重大问题的决定》,并承诺了将对全球金融市场和海外商务提供更开放的平台,香港将成为主要的受益者,在改革的进程中发挥其独特优势。 本次论坛是由中国日报、太平洋贸易及发展会议(PAFTAD)及香港金融研究中心(HKIMR)首次联合举办的,参与讨论的嘉宾包括加拿大前财长温迪多布森(Wendy Dobson)教授、渣打银行(香港)有限公司执行董事及行政总裁洪丕正先生、泰国前商务部部长那容猜(Narongchai Akrasanee)博士,以及香港金融管理局助理总裁(经济研究)兼香港金融研究中心主任何东博士。 论坛联合主席香港金融研究中心咨询委员主席陈坤耀教授相信香港在推动中国这个全球第二大经济体的发展过程中发挥着重要作用。在专题研讨中,何东博士认为十八届三中全会的公报令人振奋,将会影响中国未来的发展,而香港作为亚太地区最国际化的城市,其作用也是显而易见的。关于人民币议题,洪丕正先生亦作补充,他认为北京方面希望利用香港作为实验场及防火墙,有助稳步快速地推进人民币国际化。 此次论坛围绕中国十八届三中全会有关中国金融市场的最新发展动向、人民币国际化进程及由此为香港的发展所带来的机遇和挑战等议题进行研讨,共吸引了超过200位来自金融界、商界、学界以及媒体界的执行总裁、高层及专业人士参与。 ### 关于中国日报 《中国日报》是中国国家英文日报,创刊于1981年,全球期均发行90余万份,其中,海外期均发行60余万份。《中国日报》作为中国了解世界、世界了解中国的重要窗口,是国内外高端人士首选的中国英文媒体,是唯一有效进入国际主流社会、国外媒体转载率最高的中国报纸,也是国内承办大型国际会议会刊最多的媒体。www.chinadaily.com.cn 关于太平洋贸易及发展系列会议 太平洋贸易及发展系列会议 (PAFTAD) 成立于1968年,是一个非官方的民间组织。会议旨在提供就太平洋发展及地区性经济政策等问题的讨论平均。 www.paftad.org 关于香港金融研究中心 香港金融研究中心于1999年8月由香港金融管理局成立,目的是对香港和亚洲区内的货币政策、银行及金融业具深远影响的课题进行研究。www.hkimr.org PDF Download: attach/pdf/20131119/%E4%B8%AD%E5%9B%BD%E6%97%A5%E6%8A%A5%E6%96%B0%E9%97%BB%E7%A8%BF1119.pdf
2013-11-20Hong Kong still has unparalleled competitive advantages, such as the rule of law, to benefit from and contribute to the country’s new round of economic reforms, Chief Executive Leung Chun-ying said at the China Daily Asia Leadership Roundtable forum on Tuesday. Tuesday’s forum and panel discussions, themed “Financial development in China and implications for the global economy”, were jointly presented by China Daily Asia Pacific, the Pacific Trade and Development Conference (PAFTAD) and the Hong Kong Institute for Monetary Research. It was also part of the PAFTAD conference series hosted in Hong Kong. Leung’s keynote address at the forum came just days after Beijing outlined the route map to carry on deeper social and economic reforms on the mainland. He said it was too soon for the local administration to formulate a comprehensive view on the 300-plus initiatives adopted last week at the Third Plenary Session of the 18th Central Committee of the Communist Party of China, but he believes the city will certainly benefit from them. “We can gain new development synergies through the national reform and opening-up, so that Hong Kong’s economy will accelerate and the living standards of Hong Kong people will rise. At the same time, this is important -- to make our contributions to the nation,” he said. Hong Kong has always been a premier international gateway for trade and investment into and out of the mainland, Leung said, and the city will continue to serve businesses across the border as the “chief knowledge officer” with its vast experience and well established links. “We know that Hong Kong has benefited significantly from its free and open economic strategies in tandem with the gradually opening-up (and) reform policies in the Chinese mainland since 1978. And this will not change,” he said. Since it was given the responsibility to test, launch and develop new initiatives for yuan liberalization, he said, the city is now the largest center for offshore yuan business, backed by sophisticated infrastructure and the largest pool of yuan capital outside the mainland. But as financial reforms move along, Hong Kong is feeling the heat of competition. Shanghai has just set up its pilot free trade zone, whereas global financial hubs like London and Singapore are gearing up their efforts to share a bigger slice of offshore yuan businesses. It was too early to tell how the Shanghai zone would impact on Hong Kong, Leung said, but the city has always welcomed competition as a driver of growth and progress, as such competition in offshore yuan business shall expand the range and volume of products globally. “The pie, with the fast growth of the Chinese economy, is getting bigger than the growth of the slices and everyone has a role to play. There is enough for everyone around, whether in the country, in the region or in other parts of the world,” he said. Furthermore, Hong Kong still possesses unparalleled competitive edge when compared to mainland and overseas cities. One important attribute for financial services that Hong Kong holds onto, he said, is the rule of law and an independent judiciary. But the city is not complacent with its strength. Leung said the Financial Services Development Council (FSDC), the advisory body that has just completed six reports, “has been proven to be very effective” and the government, together with the regulators, will study the reports in detail. Earlier, the CE said before the weekly Executive Council meeting that he has read all six reports prepared by the FSDC. The government has emphasized its regulatory role in the past and while that is essential, “we cannot forget the part that involves developments.”
2013-11-19Tourism in China could reap rewards for investors if service and infrastructure are improved China’s tourism industry is booming, presenting tremendous opportunities for private companies to invest and take advantage of the soaring demand from Chinese tourists, both at home and abroad. “Tourism assets are the new wealth that Chinese companies should invest in, after traditional industries such as mining and real estates,” said Wang Ping, chairman of the China Chamber of Tourism and vice chairman of the Global Tourism Economy Forum. “It’s time to change people’s idea of future wealth,” she continued, arguing that tourism assets are likely to appreciate over time, and also that the sector has less of a detrimental impact on the environment than other industries in China. Wang was speaking at the China Daily Asia Leadership Roundtable, one of the sessions held as part of the second Global Tourism Economy Forum in Macao on Sept 19. The roundtable gathered a range of Chinese entrepreneurs from the private sector who have invested in tourism or are interested in investing in the industry. These included representatives from some of China’s major conglomerates, in a sure sign that the travel industry is attracting serious investors with deep pockets. It is hardly surprising that interest in the sector is on the up, as statistics suggest that recent fast growth is set to continue. According to data from the China Chamber of Tourism, Chinese people traveled 3 billion times in 2012. The number is expected to increase to 4.5 billion times this year. More than 86 million Chinese people went overseas last year. China also has the world’s biggest purchasing power in terms of overseas tourism spending. “The data from this year means, on average, every Chinese travels three times a year,” Wang said, adding that the private sector should seize this great opportunity to invest. Wang’s comments were echoed by Fu Jun, chairman of the board of directors and president of Macrolink Group Ltd, a private conglomerate of real estate, mining, finance, chemicals, petroleum and beverages. “The tourism industry offers possibilities for China’s private sector to upgrade and transform because it is a big market,” Fu said. “The development speed of China’s tourism infrastructure is much slower than its demand,” he said, adding that there is plenty of space for private companies to invest since the country’s 12th Five-Year Plan (2011-2015) requires 12 percent annual growth in tourism. The Hunan-based group bought two wineries in Bordeaux last month, and is planning to launch a new tourism business in Beijing. It is also considering investing in tourism resources in South Korea, Malaysia, Kenya and Mauritius, where Chinese tourists are already showing an interest. In the domestic arena, Fu said his company is planning to build three resorts and 10 five-star hotels in the near future. “Two of the three resort areas will be in Hunan,” he said. “One is in Suiyan county, a place with a 1 million square-meter primary forest. The other is the Tonggu ancient town near Hunan’s capital city Changsha; we are going to rebuild the town and make it into a resort destination.” For both projects, the group plans to invest around 10 billion yuan ($1.63 billion). Fu further explained that the company has a resort project in Qinghai province’s Guide county, where the Ming Dynasty’s first emperor, Zhu Yuanzhang, once put his troops. He said that his company is eager to figure out how to build infrastructure appropriate to these beautiful places. “We have started some talks with international hotel brands, such as Sheraton and Marriott,” Fu said. “I believe tourism is the future direction for China’s private companies’ development.” Zheng Yuewen is chairman of the China International Chamber of Commerce for the Private Sector, and also founder and chairman of the Creat Group, a conglomerate with interests in sectors including finance, healthcare and agriculture. He noted that China’s private companies have begun to invest in overseas tourism and cultural assets, with recent high-profile cases including Dalian Wanda Group’s purchase of the US cinema chain AMC and Fosun Group’s purchase of hotel and resort chain Club Mediterranee, better known as Club Med. “Both deals involved a big amount of money,” he said. “In fact, I think in many places, Chinese investments have been much bigger than foreign companies in recent years.” He gives an example of Chinese companies’ investments in Northeast China’s Changbai Mountain, where infrastructure was previously poor. “Within three years, we have seen 30 billion yuan invested and five five-star hotels built, as well as 48 skiing areas,” Zheng said. “My company has a skiing area in Changchun also, but that is not one of our major businesses.” Zheng’s company bought Japanese high-class golf equipment brand Honma in 2010, and also owns a golf course in Tokyo. “China’s private companies are eyeing the world’s tourism assets,” Zheng asserted. He also provided an insight into what his firm is looking for when it invests overseas. “We are interested in two kinds of countries. First, they must have mature infrastructure, but have not yet been well publicized in China. Second, they should have special cultural characteristics.” Zheng said that tourism’s development in China is based on the fact that Chinese people have more leisure time and money than in the past. “Along with the increasing number of middle class people, the demand in tourism will keep growing,” he predicted. But it is not an entirely rosy picture. Experts at the event also warned that there will be difficulties on the way as the sector continues to grow. Peter Wong, chairman of the MK Corporation Ltd and vice chairman of the Global Tourism Economy Forum, said despite all the achievements to date, China’s tourism sector still has a long way to go. “The industry has structural problems,” Wong said, quoting a report published by the World Travel & Tourism Council (WTTC) in 2004. “In many other Asian countries, they have a ministry of tourism. However, in China, we only have a tourism bureau, which means we have difficulties in dealing with affairs involving other government departments.” Wong said that in the nine years since this report was published, few changes have been made. He called for a ministry of tourism to coordinate every perspective of the industry. “China’s tourism industry has been included in the government annual report since 1996, and the private sector has only been in the industry since 2002,” Wong said. “We hope that, through the push by the private sector, China could have a ministry-level tourism administrator in future to coordinate the interest of tourism, transportation and cultural heritage administration.” As a delegate of the National People’s Congress over the last five years, Wong said he has been calling for a tourism ministry for a long time. “Tourism has six ‘E’s: Education, entertainment, economy, employment, ecology, and exchange,” he said. “The concept of tourism is much wider than before.” Wong explained that tourism has enjoyed increased focus from the Chinese government in recent years. It is officially supported by the 12th Five-Year Plan (2011-2015), and cooperation with neighboring countries is a highlighted topic, given that China’s neighbors are striving to develop their own tourism industries as well. According to the WTTC’s 2004 China report, 80 percent of tourism income came from cultural heritage attractions. Wong said that China is rich in such sites, but many of them have just started to be developed for the tourist market. “There will be a lot of opportunities in China’s tourism industry to attract foreigner investors as well,” he said, advising that overseas investors will need to move fast as domestic capital is already rushing into tourism assets. However, Yang Bin, professor and senior associate dean of the School of Economics and Management at Tsinghua University in Beijing, sounded a note of caution for domestic investors. “Many tourism projects can be soulless. This kind of investment could easily become a simple property project,” Yang said, advising that Chinese companies should pay attention whether they are buying the “hardware” or the “software” of the tourism assets. “Buying only the ‘hardware’ could lead to assets depreciating in the future because tourism is an industry that is highly dependent on the experience it brings to the customers,” he said. Yang also expressed concern about the relatively low quality of service in China’s tourism industry, saying that the industry will grow only if its personnel improve in quality and put their hearts into their jobs. “For customers, good tourism service provides not only a trip, but also a journey,” Yang said, adding that cultural uniqueness is more important than products in this business. Ultimately, experts concurred that the future for China’s travel sector seems bright, with plenty of scope for improvement and investment. “Tourism in China is still a sunrise industry. The places with the best views are short of infrastructure,” said Fu from Macrolink. “It is a sustainable business and it has great potential for development.” benyue@chinadailyhk.com
2013-09-27China Daily Asia Leadership Roundtable examines how China’s private enterprises can go global to help upgrade the nation’s nascent tourism industry. Wong Joon San reports. While the GTEF has been bombarded with many proposals, one that stands out is the suggestion it plays a much greater role in future tourism development by focusing its efforts on a particular country, and on promoting a certain business model for attracting foreign investment to that nation as well as other projects. Speaking at the China Daily Asia Leadership Roundtable themed “Perspective from China International Chamber of Commerce for the Private Sector on Mainland Private Enterprises”, held in Macao on Sept 19, Zheng Yuewen, founder and chairman of Creat Group, said by doing so, the forum could effectively promote one country at a time. “The GTEF could promote lesser-known countries with good infrastructure, such as island countries. In addition, they could also promote other projects and try to get more investments. These countries could also showcase themselves at the event,” he told participants at the roundtable event held at the Venetian Macao Resort Hotel. Alexander Wan, senior adviser of China Daily Asia Pacific, was the moderator. The China Daily Asia Leadership Roundtable was hosted by the Macao SAR, co-organized by the China Chamber of Tourism and coordinated by the Global Tourism Economy Research Office. It was held in conjunction with the two-day Global Tourism Economy Forum. Zheng said when Chinese companies purchase tourism-related foreign assets, they must have a proper aim and focus, like the example of Dalian Wanda Group, a successful overseas investor from the private sector. Chinese billionaire Wang Jianlin thrust his Dalian Wanda Group into the headlines in Europe in June this year with its $1 billion investment in two projects in the UK: the purchase of a 92 percent stake in yacht-maker Sunseeker and a high-end real estate development in London. It was also announced at the weekend that Wang plans to build China’s biggest film studio, a direct appropriation of Hollywood in the city of Qingdao. Wanda’s acquisition of Sunseeker, and its London property are partially because of the fast-rising number of rich Chinese, too. More significantly, through projects abroad, Wanda can extend its operations overseas and become an international name as a high-end market developer, as well as adding value to its reputation domestically. For Wanda, well-known for its commercial properties, hotels, tourism and entertainment, replicating its projects everywhere is easy. And Wanda stands out because it has been able to enjoy good returns and retain strong credibility. Commenting on tourists to the mainland, Wang Ping, chairman of the China Chamber of Tourism and vice-chairman of the GTEF, said there were 3 billion inbound tourists in 2012, a figure that will rise this year to 4-5 billion, and perhaps, reach 5 billion in two to three years. Investors, while considering overseas investments, should also be aware of local opportunities such as Zhangjiajie, a city in Hunan province, which attracted 39 million visitors last year. Between January and July, a small village there attracted 5 million visitors, she said. Commenting on private sector involvement in tourism, Fu Jun, chairman of the board of directors and the president of Macrolink Group Ltd, said the private sector had been involved in tourism development since reforms were introduced in this sector several years ago. “However, they faced three serious challenges. The first being transformation and upgrades of the sector; second, cultivation of its core competitiveness; and, third, the Chinese private sector must not be too proud of its achievements, and become complacent,” Fu warned. He pointed out that China’s tourism sector was unable to meet the country’s rapidly rising tourist demand, despite the development of some resorts in Hunan. Fu said his group had developed resorts on the mainland under its own brand name and was currently negotiating with Marriott and Sheraton to build other hotels. In addition to turning to investments abroad, Fu said: “We have to go global as countries like Libya and Zambia are attracting lots of Chinese people. We have heard that Chinese people are curious to go to those places, and I would like to go there too.” As a sector supporting tourism, Jane Fountain, managing director of Harmony World Watch Center, said women loved shopping and tourism was a healthy way of living. “When they go on tours, they buy things (including watches) for their friends,” she said. She also related how she and her classmates from wealthy families in China traveled to Europe and the USA to see the retail sector’s high standards and to gain a better first-hand idea of how local brands fared against them. “My own company works with famous international watch brands such as Omega in Hong Kong, and I also promote my own local brand,” she said, adding that her business was thriving well. Commenting on the dip in sales on the mainland due to the anti-corruption drive against government officials, particularly if they purchased a watch at a cost of more than 50,000 yuan ($8,170), Fountain said: “If people in pursuit of beauty can afford to buy a watch for over 50,000 yuan, why not?” She pointed out that 50 percent to 70 percent of global watch brands’ customers are from China. Peter Wong, chairman of MK Corp Ltd and vice-chairman of GTEF, who shared his views of China’s tourism transformation from traditional to modern practices, said that since 1996, the private sector had been encouraged to invest in tourism and had received strong support from the World Travel and Tourism Council. However, China’s tourism development had not been a smooth process, he said, adding that the not-for-profit organization GTEF had published a report in 2007 which had proposed changes to the system involving the Ministry of Transport and the Ministry of Railways. Through the report, GTEF had urged the central government to upgrade the Tourism Bureau to ministry level, a proposal that was put on the back burner. Wong said this is a key matter as to whether or not GTEF had to approach the National Development and Reform Commission to achieve it or to contact local governments. Yang Bin, professor and senior associate dean of the School of Economics and Management at Tsinghua University, said the development of the Chinese tourism industry lacked “cultural spirit and soul”, so most initiatives were confined to single locations and were merely real-estate projects. He told investors who wished to invest in overseas tourism projects that they had to buy both the hardware and the software to provide tourists with a “tourist experience”. Have infrastructure, will travel Tourism in China has just taken off and is still at a nascent stage, said Fu Jun, chairman of the board of directors and the president of Macrolink Group Ltd. In a question and answer session following the China Daily Asia Leadership Roundtable event, Fu said his company was optimistic over the sustainability of the cultural and tourism industry on the mainland. Fu’s company had purchased a piece of land in Shanghai recently for 1.7 billion yuan ($278 million) to build a hotel project in anticipation of a rise in hospitality service demand when Disneyland was completed. It is scheduled to open in December 2015, and expected to attract 20 million visitors per year. Jane Fountain, managing director of Harmony World Watch Center, said some of her CEO friends had visited Chengdu in Southwest China’s Sichuan province and found it a beautiful place, but lacked tourists as there were no good hotels, and infrastructure was not up to international standards. Peter Wong, chairman of MK Corp Ltd and vice-chairman of GTEF, said although there were hotels in some cities, the infrastructure was not well-connected in some places. He urged authorities to build roads for better connections.
2013-09-24The second edition of Global Tourism Economy Forum (“GTE-Forum” or “the Forum”), hosted by the Secretariat for Social Affairs and Culture of the Macau SAR Government, co-organised by the China Chamber of Tourism under the authorisation of All-China Federation of Industry and Commerce (ACFIC) and coordinated by the Global Tourism Economy Research Centre, will return to the Macau Tower Convention and Entertainment Centre from 18-19 September 2013 (Media registration on 17 September). Details of the Programme and the speaker roster were announced at the press conference today (9 September) at the Tourism Activities Centre (CAT). Explore tourism’s critical role in revitalising and driving global economic growth Themed as “Regenerate our Economies: Invest in Travel and Tourism”, this edition of GTE-Forum has invited over 40 ministerial officials and private leaders from globally-renowned corporations to more in-depth discussions on why and how investment in tourism industry can revitalize and mobilise global economic growth. The second edition is expected to command the same force as the inaugural edition, with the attendance of over 1,000 delegates from around the world, including delegations from more than 15 provinces and autonomous regions from China. Approximately 160 local and overseas media representatives will cover this event. Ms. Cheung So Mui Cecília, Chief of the Office of the Secretary for Social Affairs and Culture of the Macau SAR Government, said, "Through successful organisation of the inaugural Global Tourism Economy Forum last year, Macau has demonstrated respective capabilities and assets as well as proven itself as an ideal exchange platform. This year we once again bring industry leaders and elites from around the world together to discuss the insights to drive economic growth by leveraging tourism, while there will be over 100 local and overseas media representatives to join the Forum. Macau’s commitment to organise three consecutive Global Tourism Economy Forums allows the city to fully facilitate its platform role that can bring significant influence to elevate Macau’s international reputation.” Ms. Maria Helena de Senna Fernandes, Director of the Macau Government Tourist Office added, "This year the Global Tourism Economy Forum is themed as ‘Regenerate our Economies: Invest in Travel and Tourism’, which is in line with Macau’s positioning to evolve as the World Centre of Tourism and Leisure, as well as its objectives of foster adequate diversification and sustainable development. This edition of Forum comprises of ministerial round table, presentation sessions and discussion panels with a lineup of ministerial-level tourism officials, renowned entrepreneurs in the Asia-Pacific Region and global level, industry leaders, experts and intellectuals to share their ideas and experience. We firmly believe the invaluable insights contributed during the Forum will provide an important reference for the city’s build-up of World Centre of Tourism and Leisure.” Line up global leaders and deepen global tourism cooperation The second edition of GTE-Forum will present an impressive line-up of global leaders, including Mr. Su Rong, Vice Chairman of The National Committee of The Chinese People’s Political Consultative Conference, Mr. Chui Sai On, Chief Executive of Macao SAR, Mr. Ho Hau Wah, Vice Chairman of The National Committee of the Chinese People''s Political Consultative Conference cum Forum Chairman of GTE-Forum; Mr. Li Lu, Vice Chairman of All-China Federation of Industry & Commerce; Dr. Taleb Rifai, Secretary-General of World Tourism Organization (UNWTO); Mr. Michael Frenzel, Chairman of World Travel & Tourism Council (WTTC) and Chairman of the Supervisory Board, TUI Deutschland Gmbh and TUIfly Gmbh; Mr. João Manuel Costa Antunes, Chairman of Pacific Asia Travel Association; and Ms. Wang Ping, Chairman of China Chamber of Tourism. In addition, ministerial-level government dignitaries such as Mr. Du Jiang, Vice Chairman of National Tourism Administration of the People’s Republic of China and Mr. Adolfo Mesquita Nunes, Secretary of State of Tourism of Portugal will participate in the Ministerial Round Table in collaboration with the UNWTO session and speak on the subject of global cooperation in travel and tourism. The Forum has also invited renowned tourism and corporate leaders around the world to share their insights in tourism economy development. These leaders include Mr. Zheng Yuewen, Founder and Chairman of Creat Group; Mr. Arthur de Haast, Chairman of Hotels and Hospitality Group of Jones Lang LaSalle; Mr. Naren Srinivasan, Senior Vice President of Global Strategy and Corporate Development of The Hertz Corporation; Mr. Luis del Olmo, Executive Vice President, Group Marketing & Asia Pacific of Meliá Hotels International; and Ms. Liu Ting, President of Asia Link Group, among others. Analyse the components of success and foster international cooperation This edition of GTE-Forum is collaborating with, the World Travel and Tourism Council (WTTC) and the Pacific Asia Travel Association (PATA), to explore practical solutions to foster tourism economy from a spectrum of perspectives such as investment opportunities and challenges, supportive tourism policy and tourism innovations. Hospitality Session: Points of View from Global Industry Leaders focuses on the economic and societal impact of hospitality sector at the regional and national levels. China Daily Asia Leadership Roundtable is designed to demonstrate how Chinese private enterprises follow the “Go Global” policy, build and expand their businesses overseas, promote cooperation with overseas enterprises, and bring in overseas business partners. Further, business matching sessions, presentations and workshops, have been created to facilitate direct contact and exchange between Mainland Chinese and overseas enterprises and organisations during the Forum period. Various social events such as luncheon, entertainment shows, and Macau World Heritage visit have been specially created for delegates so that they can experience the fusion of Eastern and Western cultures as well as endless innovations of Macau tourism. Ms. Pansy Ho, Chairman of the Global Tourism Economic Research Centre Chairman and Secretary-General of the Global Tourism Economic Forum, commented, "A high-level international exchange and business matching platform, the inaugural Forum has successfully served as a springboard and established subsequent business networking activities between China and foreign countries. In addition to a wide range of discussion topics, this edition also emphasises the element of business matching, which not only provides first-hand information about the tourism markets in Asia and China, but also continues last year’s success in exploring and fostering cross-regional, cross-sector investment opportunities and cooperation in tourism." - End - About the Global Tourism Economy Forum Hosted by the Secretariat for Social Affairs and Culture of the Macao SAR Government, co-organised by the China Chamber of Tourism under the authorisation of All-China Federation of Industry and Commerce (ACFIC) and coordinated by the Global Tourism Economy Research Centre, the Global Tourism Economy Forum is a prominent annual event for the global tourism industry. In 2012, the Inaugural Forum attracted over 1,000 delegates from 34 countries and cities all over the world. The Forum aims at establishing a platform for domestic and overseas exchange and cooperation, fostering and promoting integrated development in tourism and service industries, creating better investment prospects and deepening tourism cooperation, thus bringing new opportunities of economic development for China and the world.
2013-09-19The developing China-ASEAN relationship promises reciprocal benefits for trade and beyond Ten years on since the initial framework for a China-ASEAN Free Trade Area (CAFTA) was signed in Phnom Penh in Cambodia, the bloc has blossomed into a partnership that goes well beyond commerce. With a population of 1.9 billion people, the CAFTA, established on January 1, 2010, boasts a combined GDP in excess of $9 trillion. Continued trade ties and the future of the CAFTA were among some of the key issues raised at the China Daily Asia Leadership Roundtable themed “China-ASEAN Business and Economic Partnership” on July 18 in Kuala Lumpur. “It’s a particularly good time to talk about China-ASEAN (Association of Southeast Asian Nations) business,” said Dicky Yip, Asia Pacific chief representative for the Institute of International Finance, a trade group that represents major financial firms worldwide. This year also marks the 10th anniversary of the Joint Declaration on Strategic Partnership for Peace and Prosperity, signed between China and ASEAN on the Indonesian island of Bali, in October 2003. To celebrate the occasion, the roundtable meeting, held on the sidelines of the 10th ASEAN Leadership Forum, gathered business leaders and entrepreneurs from across the region to explore the opportunities and challenges arising from closer economic ties. “China is an important partner of ASEAN for peace, stability and prosperity,” Le Luong Minh, ASEAN secretary general, told China Daily Asia Weekly in an interview on the sidelines of the forum. “China’s development has brought huge opportunities to ASEAN. China’s peaceful development would be beneficial to the region. And vice versa, a strong, stable and united ASEAN is in the interest of the region, including China,” he said. Le further estimates CAFTA-related agreements will bring bilateral trade to $500 billion by 2015. Trade volume between China and ASEAN amounted to $319 billion last year, up from $55 billion in 2002. Foreign direct investment flow from China to ASEAN doubled to $5.9 billion in 2011. “The development of the China-ASEAN relationship has not only benefited both sides, but also contributed vigorously to building the ASEAN community,” said Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, in his welcoming remarks. “The relationship is also an important factor ensuring wider ASEAN stability and prosperity.” While China has been ASEAN’s largest trading partner, ASEAN has since emerged as one of China’s top trading partners. It has leapt in importance from fifth place between 2000 and 2006 to third place in 2011, just behind the European Union and the US. During a lively discussion, the panelists identified connectivity as one key area for China-ASEAN cooperation. Shen Jiajun, chairman of CSR International Equipment and Engineering, the company behind China’s high-speed rail network, stressed the importance of technological exchange in building railway networks in the region. “It’s not necessarily (that) we produce bullet trains in China and ship them here. We invest in ASEAN and export our technology,” Shen said. “China has both (comparative) advantages and disadvantages in certain areas; so do our ASEAN neighbors. That’s why we need to trade,” added Shen, whose company has cooperated with local partners and exported services to more than 70 countries, including Vietnam, Singapore and Malaysia in ASEAN. Tourism is another promising sector. Few would forget the miracle of the low-budget Chinese movie Lost in Thailand — a record-breaking success at the box office, it has also been an inspiration for Chinese travelers. The fact that the number of Chinese tourists visiting Thailand is expected to surge by 10 to 20 percent — to 3 million visitors this year — has surely made Thailand the envy of its ASEAN neighbors. While the China Tourism Academy estimates the number of Chinese outbound visitors reached 82 million last year, ASEAN countries attracted only less than 10 percent of this group, observed Abdul Majid Khan, president of Malaysia-China Friendship Association. Top-spending tourists Chinese tourists also emerged as the world’s top spenders, surpassing both Germany and the US with a record $102 billion last year. Indonesia’s Bali and Thailand’s Phuket in the ASEAN region were ranked among the top 10 travel destinations for Chinese tourists last year, according to Ctrip.com, China’s leading online travel agency. “ASEAN countries should act together to sell ASEAN to China,” Khan said. He recommended promotional campaigns in Chinese cities and provinces as a good way to inform potential Chinese tourists of the many and various holiday options across the region. Yet despite plenty of goodwill toward increased regional cooperation, the reality is more complex. With numerous free trade agreements (FTAs) in place, such as ASEAN Plus 3 (including China, South Korea and Japan), a challenge facing ASEAN is to implement what has already been agreed. Domestic laws and the regulations of some ASEAN members are often not up to the required level of the FTAs, explained Ong Keng Yong, Singapore’s high commissioner to Malaysia and former ASEAN secretary general. “We have to work on that quickly,” Ong said. For example, the deadlock on removing tariffs on all goods, including those listed as “highly sensitive” such as oil and rice, is still awaiting progress after years of negotiations. Bilateral trade between China and the 10-nation ASEAN bloc is expected to reach $500 billion in 2015, Chinese Vice Minister of Commerce Gao Yan told a press conference on July 23. According to the Ministry of Commerce (MOFCOM), China-ASEAN bilateral trade has surged in the past decade, from $54.7 billion in 2002 to $400.1 billion in 2012, with an average annual growth rate of 22 percent. Currently ASEAN is China’s third largest trading partner, and the fourth largest export market. It is also the second largest source of imports, as well as a major contributor of foreign tourists to China. The first half of 2013 saw year-on-year growth of 12.2 percent in China-ASEAN trade that totaled $210.5 billion, MOFCOM said. China had a trade deficit with ASEAN until 2012, when China had a trade surplus of $8.5 billion, or 2 percent of the bilateral trade value, showing an almost balanced trade, Gao said. Trade patterns have changed since the China-ASEAN free trade area was established, Gao said, with China overtaking Japan to become the largest exporter to ASEAN. The world’s second largest economy has so far directly invested in 2,500 enterprises in ASEAN, creating 120,000 local jobs. Meanwhile, ASEAN’s direct investment in China has more than doubled over the past 10 years, from $3.26 billion in 2002 to $7.1 billion. While all eyes are on promoting multilateral trade between ASEAN and China, the thorny issue of harmonizing banking practices must not be neglected. “International trade and banking goes hand-in-hand,” said Yip from the Institute of International Finance. The former banker suggested that one way to facilitate trade between ASEAN and China is to use the yuan as a trading currency. Today, over 70 percent of world’s trade is still carried out in US dollars. This compares to less than 1 percent in yuan, although the potential of the currency should not be underestimated. Some five to six years ago, only 3 percent of China’s export and import trade involved the yuan, compared with 12 percent today. As part of the internationalization drive of the yuan, the People’s Bank of China, the country’s central bank, has signed bilateral currency swaps worth $275 billion with some 20 countries, including ASEAN economies such as Singapore, Malaysia and Thailand. The currency swap allows two signatory countries to conduct business in their own currency without having to settle trade invoices in US dollars. Yip highlights a two-point benefit of using yuan as a trading currency, reserve currency and investment currency. “First, people use this channel to minimize exchange risk. Second, we foresee (yuan) value to gradually increase over time,” he said. With the possible scaling back of quantitative easing amid a stronger US economic recovery, recent worries have been of a large-scale exodus of capital from ASEAN and China. “The reason underlying the ASEAN countries developing the Regional Comprehensive Economic Partnership (RCEP) in 2015 is precisely to address some of the implications of the issue,” said Ong, the former ASEAN secretary general. The idea is that relying on just China-ASEAN trade could be insufficient to fend off adverse effects to the region. Instead, the RCEP — branded as a 16-nation-strong free trade zone comprising all ASEAN members plus China, Korea, Japan, Australia, New Zealand and India — will have a better chance of attracting new potential investors from outside the bloc. jennifer@chinadailyhk.com http://www.chinadailyasia.com/focus/2013-07/26/content_15080217.html
2013-07-26China’s Lenovo and India’s Tata group are among a handful of huge Asian companies that are widely known around the world. But such household names do not give the full picture, as these giants coexist with a large population of successful small and medium enterprises (SMEs), which form the backbone of the region’s economies. In fact, SMEs account for as much as 85 percent of employment and contribute up to 53 percent of GDP in many Association of Southeast Asian Nations (ASEAN) countries. SMEs in China, meanwhile, make up more than 99 percent of all enterprises in the country. The China-ASEAN Free Trade Area (CAFTA), which came into effect in January 2010, has had considerable impact, presenting tremendous opportunities, but also threats, to the region’s SMEs. CAFTA is the world’s largest free trade area in terms of population — 1.9 billion people — and has a GDP of more than $9 trillion. It is also the third largest in terms of trade volume, after the European Union and the North American Free Trade Area. Nonetheless, some SMEs in the region are still unaware of the potential it offers. “One challenge is about educating people about CAFTA and what it means for businesses,” said Ong Keng Yong, Singapore high commissioner to Malaysia and former ASEAN secretary general, speaking at the China Daily Asia Leadership Roundtable event on “China-ASEAN Business and Economic Partnership” on July 18, held on the sidelines of the 10th ASEAN Leadership Forum in Kuala Lumpur. Recent surveys by the ASEAN Secretariat indicated that one-third of the business community lacked basic understanding of the ASEAN Economic Community, which will kick off in less than two years time, and the benefits of free trade agreements with major trading partners such as China. “The CAFTA is certainly a good start,” said David Chua, executive advisor of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM). “But it takes time to sink in and for SMEs to adjust (their strategies).” Under CAFTA, tariffs on over 90 percent of products and services traded between China and six ASEAN countries including Brunei, Indonesia, Malaysia, the Philippines, Thailand and Singapore have been removed. In 2015, four newer ASEAN members — Vietnam, Laos, Cambodia and Myanmar — will join the agreement. Such a closer China-ASEAN tie is of particular importance to some of the region’s developing nations, explained Ken Chanthan, former president of the Young Entrepreneurs Association of Cambodia and the CEO of the Ken Group of Companies. “Cambodia is a relatively small market,” said Chanthan, “ASEAN (partnerships) and free trade agreement with China have enabled Cambodia to expand our market.” Promoting free trade would also mean opening up domestic markets to regional competition. But this need not be bad news; rather it could act as a spur for ASEAN countries to raise their game. Developing a niche market is one way of competing with the “big boys” in the region, argued Hafimi Abdul Haadii, president of the Young Entrepreneurs Association in Brunei. With a population of just half a million, “(Brunei) is smaller than a Chinese village,” Haadii said. Brunei entrepreneurs are looking into producing unique products from specialized pillow cases to handbags, or kain tenunan, a detailed embroidered woven cloth that is exclusive to the country. Dicky Yip, Asia Pacific chief representative for the Institute of International Finance, recognizes the difficulties for cross-border SME business between China and ASEAN. “For SMEs to go abroad (they need) a lot of support and energy,” he said. SME support needed The fact that every country has its own definition of SMEs poses a challenge to meet entry requirements overseas. “In China, SMEs by definition can be very big,” Yip explained. This view is echoed by business communities in Malaysia. “SMEs in China could be a multinational in ASEAN countries,” said Abdul Majid Khan, president of the Malaysia-China Friendship Association, based in Kuala Lumpur. So far, there is no universal criterion of an SME. In China, companies with up to 2,000 staff and assets of less than 400 million yuan ($65 million) are still classified as SMEs. Yet a medium-sized firm in Cambodia could have just 200 employees and fixed assets of $500,000. SMEs in the region are also affected by barriers to market access. More than a decade ago, the Chinese government announced the “going out” strategy to encourage domestic enterprises to invest overseas. The policy has been a success in promoting China’s SMEs abroad. Nonetheless, a great disparity in capital flow is seen in some parts of ASEAN. “Chinese investment in Malaysia and Malaysian investment in China is probably in the ratio of just 1:10, largely favoring the Chinese,” observes ACCCIM’s Chua. In Malaysia alone, Chinese foreign direct investment amounted to $370 million in 2011. This is compared to $6.2 billion of Malaysian investment in China in the same year. To put things in perspective, Chinese investments in ASEAN surged to $5.9 billion in 2011, up from just $120 million in 2003. By mid-2012, China had invested $18.8 billion in ASEAN. Not surprisingly, China has emerged as Indonesia’s second-largest trading partner after Japan. As in Myanmar, investors from China already account for the largest share of foreign investment. Looking ahead, ASEAN still represents a market of potential for Chinese SMEs. From Indonesia’s timber to Malaysia’s palm oil, “China will find ASEAN attractive in the sense that we have lots of natural resources,” said Michael Yeoh, CEO of the Asian Strategy & Leadership Institute, a Malaysian independent think tank. For decades, countries in ASEAN have nurtured friendly business ties with China, thanks to cultural similarities. In practically every ASEAN country, ethnic Chinese people constitute a large proportion of the business community. “It makes it easier to do business because we speak the same language,” Yeoh added.
2013-07-23(2014年1月14 日 香港)今日,中国日报第三次携手亚洲金融论坛,假湾仔会议展览中心,举办了题为“东盟经济共同体未来的战略机遇”的论坛,讨论2015年东盟经济体成立给中国以及东盟各国带来的机遇和挑战。 中国新一代国家领导人高度重视与东盟国家的合作与发展,并在对东盟国家的访问中提出建设“中国东盟命运共同体”和“2+7合作框架”规划,此次论坛以“东盟经济共同体”为主题,紧跟时事热点,展开了积极的讨论。 论坛主席中国日报亚太分社社长周立在致辞时表示,拥有6亿多人口的东盟国家市场发展空间巨大,但在社会经济等方面仍存在着较大差异。因而,东盟经济共同体规划经济一体化的蓝图来解决这些问题。 本次论坛邀请到印尼常驻东盟大使斯瓦加亚、全国政协常委、智经研究中心理事胡定旭、香港特区CVC亚洲董事合伙人管文浩、中国东盟投资合作基金首席执行官李耀、印尼基础建设担保基金总裁罗思丽、香港国际经济研究学术研究副总裁肖耿、马来西亚亚洲策略与领导研究院创始人兼首席执行官杨元庆等作为演讲嘉宾。 斯瓦加亚大使在讨论中提到,加强中国和东盟之间的合作来共同解决贸易、投资和旅游业的不平衡问题。他指出,东盟向中国的出口不断增加,且具有很大的增长空间;东盟向中国的外商直接投资远远超过了中国对东盟的外商直接投资;访问东盟的中国游客仍然达不到总数的10%。他期待通过进一步加强中国和东盟的伙伴关系来促进东盟经济体的整体发展。 罗思丽总裁以自己国家印尼为例,提出东盟要进一步加强基础设施建设,并且希望引进更多外商投资。 肖耿副总裁则提出,自由贸易是推动经济发展的关键因素,有助于创造人才、资本和基础建设等价值,香港自由贸易港口将对东盟共同体的发展起到积极作用。 此次论坛围绕着东盟经济共同体建成将为中国带来什么机遇和挑战、对亚洲乃至全球商业和投资环境带来怎样的战略改变、以及中国和东盟各国各行各业,如银行、金融服务、保险、基建、物流及旅游业等,在这一划时代的机遇中如何把握商机进行了深入的探讨,吸引了220多名金融、商界、学界的精英人士出席。 有關中國日報亞洲領袖圓桌論壇 「中國日報亞洲領袖圓桌論壇」旨在搭建一個由亞洲國家和地區的政、商、學界領袖和社會精英參與的高端對話和交流平臺,圍繞亞洲地區經濟、商業、產業和社會發展等具有戰略影響的重要議題展開討論和分享見解,以增進中國與亞洲和西方國家的交流和理解。 www.cdroundtable.com PDF Download: attach/pdf/AFF14012014/%E6%96%B0%E8%81%9E%E7%A8%BF_%E4%BA%9E%E6%B4%B2%E9%87%91%E8%9E%8D%E8%AB%96%E5%A3%872014.pdf
2014-01-14The global economy's continuing shift eastward will further enhance Hong Kong's role as a premier international business and financial center, local officials said at the two-day Asian Financial Forum in Hong Kong. Leung Chun-ying, chief executive of the Hong Kong special administrative region, said in his welcome address on Jan 13 that despite slower growth in major Asian economies last year, the region continues to be an engine powering world growth. "Here in Asia, the Chinese mainland's economic growth for 2013 is estimated at 7.6 percent, according to the International Monetary Fund's projection in October last year, the slowest expansion in 14 years. And Japan's growth momentum has shown recent signs of weakening," Leung said.
2014-01-06HONG KONG - Hong Kong will aspire for more involvement in drafting the nation's 13th Five-Year Plan and will play a bigger role in yuan globalization, Chief Executive Leung Chun-ying said on Tuesday. Addressing the forum - "Financial development in China and implications for the global economy" - organized by China Daily at the Hong Kong Convention and Exhibition Centre, Leung said: "The consultation process has just started and Hong Kong wants to be proactive, it doesn’t want to merely receive a drafted, finalized 13th Five-Year Plan." He said: “We want to provide feedback to various organs of the central government on our experiences in implementing the 12th Five-Year Plan and we want to share with the central government our perspectives on how both Hong Kong and the country could benefit from the new plan.” The yuan globalization provides “huge opportunities” to Hong Kong as one of the key financial centers of the country, and the move will change the whole concept of world trade, Leung said. “Renminbi globalization is more than promoting a new international currency, it creates a whole new mindset in international trade with the Chinese mainland.” “And as a global financial center, it’s Hong Kong’s mission to promote the use of Renminbi in the world,” Leung said. The Pacific Trade and Development Conference, the think tank that helped shape the Asia Pacific Economic Cooperation (APEC), and Hong Kong Institute for Monetary Research, a research organization established by Hong Kong Monetary Authority (HKMA), were co-sponsors of Tuesday's forum. More than 200 business leaders, academics and government officials attended the forum. The panel discussion that followed the forum focused on what China has done and will do in future in terms of financial development and reform, and how Hong Kong can participate in the process so that the city benefits from it. http://www.chinadailyasia.com/news/2013-11/19/content_15099994.html
2013-11-23A series of government-led initiatives aimed at boosting connectivity between Asia, the Middle East, Europe and Africa could help increase trade and power economic growth, but only if theoretical goals and practical realities can be meshed. For more than a year, China has been pushing forward the idea of rejuvenating trade along the ancient Silk Road, both overland and by sea. A key goal is to create a more integrated economic belt that would include just about every economy — from the Philippines, across East Asia, through Central Asia and into Europe and Northern Africa, all the way to Portugal at its furthest point. "China has already taken the initiative in launching the New Silk Road for Asia,” said Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, speaking in Hong Kong on Nov 19 during a forum titled Redefining the New Silk Road: Strategic Regional Initiatives to Improve Connectivity in Asia and the World. The China Daily-sponsored roundtable session was held as part of the two-day Asian Logistics and Maritime Conference, which opened in Hong Kong on Nov 18. “Both the public and private sector will undoubtedly benefit from these discussions,” Zhou added. China’s financial commitments to this and similar efforts to date have risen to $100 billion. Among these pledges is an offer of loans worth more than $20 billion to support the construction of regional infrastructure. At the end of the Asia-Pacific Economic Cooperation (APEC) Summit 2014 in Beijing earlier this month, China’s President Xi Jinping pledged $40 billion for a Silk Road Fund, to invest across the region. The Asian Infrastructure Investment Bank (AIIB), largely funded by China and supported by a range of countries, is moving forward as is the so-called BRICS Bank to bring together Brazil, Russia, India, China and South Africa. The proposed Free Trade Area of the Asia Pacific will help develop the software to go along with the hardware. The idea is to “give more muscle” to the links that are underdeveloped. Sri Lanka, where China is backing the construction of a modern port, is the first beneficiary of these loans. The Sri Lanka project is the latest but certainly not the only infrastructure project China is involved in, said Zhou. The country is working with neighbors and trade partners to build more infrastructure and telecom systems in the region in order to further integrate trade systems and push forward agreements reached during the latest APEC summit, he added. Last year, Xi announced China’s plan to drive forward the Silk Road initiatives and build a Silk Road economic belt. The aim of the various related projects such as One Belt, One Road or the Maritime Silk Road is to increase connectivity, within Asia and with other regions. As well as the AIIB and BRICS Bank, also pushing forward these goals is the five-year-old China-ASEAN Investment Cooperation Fund (CAF), which invests largely in infrastructure projects in the 10-strong Association of Southeast Asian Nations. The bloc’s member countries, both jointly and individually, are key components of the Silk Road. "China has a lot of initiatives to drive regional development,” said CAF chief executive Li Yao. “For any economic growth, for any industrial cooperation, connectivity is very important ... Five years ago, we set up this fund to focus on connectivity.” So why does China want to do this? “To build the Silk Road and share the prosperity,” said Li. “In this way, China can play a positive and constructive role in regional development.” But while governments typically respond positively to the idea of more investments, the key to moving these projects forward is execution. This includes connecting the various modes of transportation involved in logistics. "The faster the trade barriers can be lowered, the faster Asian economies can grow,” said Vivien Lau, managing director of Hong Kong Air Cargo Industry Services, a subsidiary of Hong Kong Air Cargo Terminals, the largest air cargo terminal operator in the world. The company’s main goal is to drive Hong Kong as a hub for the global flow of cargo. "This new Silk Road strategy is very high profile at the national level,” said Lau. “This initiative is very much in line with the APEC initiative about connectivity.” Two hurdles remain, though, to linking the region more efficiently: One has to do with physical infrastructure and the other with the software required to make the best use of the physical links. Despite huge investments, Asia still has some way to go in terms of physical infrastructure. Although places like Hong Kong, Singapore, South Korea and much of the Chinese mainland have spent a lot to build up infrastructure networks, for other places there is an urgent need for new and improved roads, airports, water ports, telecom networks and energy grids. Asia has relatively fewer airports and paved runways than other parts of the world, particularly North America, said Lau. Creating an economic belt to span three continents will require efficient road, rail, sea and air route connections, she explained. "The efficient use of intermodal freight and transportation is becoming more and more important,” said Lau. Along the Silk Road regions, most goods are moved through sea routes, which take around 45 days. More rail links, roads and even airports could speed this up significantly. "The underlying principle is connectivity,” said Lau. “Connectivity does not only mean the hardware network … but it encourages the movement of goods and people between markets.” Hong Kong is one place that has done connectivity well and has emerged as one of the biggest trade and logistics centers in the world. "In Hong Kong, we can pride ourselves on being number one in the world in terms of air cargo because of connectivity,” she said. The city’s air routes connect it to 180 countries globally and it is located just five hours away from half of the world’s population. But development in Hong Kong is slowing while it is speeding up in the Chinese mainland. An illustration of the slow pace is the proposed construction of a third runway at Hong Kong International Airport, which has been under discussion for years. By 2018, said Lau, Hong Kong’s airport will be operating at capacity but it could take until 2023 for the new runway to be opened. Meanwhile, nearby Shenzhen and Guangzhou in southern China have built new terminals and added runways. "The question to ask is how we can position ourselves to leverage these opportunities?” said Lau. It is up to the industry to put together the various piece of this puzzle. Elsewhere in Asia, particularly in some Central or South Asian countries, there are not enough logistics infrastructure or services to facilitate connectivity, said Gordon Lam, chief representative and general manager for Southern China with Li & Fung Development. Lam, who also co-authored a book on the development of the Silk Road published in China this year, said a case in point is rail, which often operates on different track gauges in different countries. "To build a Silk Road economic belt, we need to solve a lot of these issues,” he said. “There should be very big investments in software and hardware to complement these developments.” Investment from both the public and private sectors is likely very worthwhile. "Logistics standardization is actually the core among all these things,” Lam added. “The combined market is actually huge.” Taking advantage of “huge opportunities” may require a shift in attitudes toward investment and policies as business, trade and supply chains now move much faster than ever before. The lead time for product sales, for example, has dropped from more than a year to just a few weeks in some cases. Supply chain management can help connect the world, said Lam, while helping companies grow by providing more value-added services. Providing such services has helped Lam’s employer, Li & Fung, grow into a global player by not only managing supply chains but also by providing services and benefiting from the increasing connectivity that exists regionally as well as globally. "We should tap these opportunities to source more products from these countries and sell them back to China and Asia,” said Lam. “In the past we used to source in the East and sell to the West, but now we are also sourcing in the West and bringing these good things to the East.”
2013-11-21Expert Views on China’s Financial Development and Its Global Impact Hong Kong, Nov. 19, 2013 - China Daily today co-organized a special panel discussion on “Financial Development in China and Implications for the Global Economy” with the Pacific Trade and Development Conference (PAFTAD) and Hong Kong Institute for Monetary Research (HKIMR). The guest of honor and keynote speaker of the by-invitation-only forum was The Honourable Leung Chun-ying, Chief Executive of Hong Kong Special Administrative Region, People’s Republic of China. Other distinguished panelists at the event held at the Chancellor Room of Hong Kong Convention and Exhibition Centre included Prof. Wendy Dobson, Professor and Co-Director, Institute for International Business, Rotman School of Management, University of Toronto; Dr. Narongchai Akrasanee, Former Minister of Commerce, Senator of Thailand and Chairman of MFC Asset Management Plc.; Dr. He Dong, Executive Director (Research) of Hong Kong Monetary Authority cum Director of Hong Kong Institute for Monetary Research and Mr. Benjamin Hung, Executive Director and Chief Executive Officer of Standard Chartered Bank (Hong Kong) Limited. “As China's global financial center, Hong Kong has been given the responsibility to test, launch and develop new products and initiatives to promote Renminbi liberalization. Hong Kong is an international financial center, it is our mission to promote the use of Renminbi in the world.” said Mr. Leung during his keynote speech. As the Forum’s Co-Chair, Mr. Zhou Li, Publisher & Editor-in-Chief of China Daily Asia Pacific put it, this high-level discussion provided more insights of the communique issued after the Third Plenary Session of the 18th Communist Party of China Central Committee (CPCCC), which pledges to “speed up the building of China’s market system“. Prof. Edward K. Y. Chen, the other Forum’s Co-Chair, who is also the Chairman of Council of Advisers of the Hong Kong Institute for Monetary Research believed that Hong Kong has its own role to play in driving forward the growth of the second largest economy. In addition, Dr. He cited at the panel discussion that “capital convertibility of the yuan should be considered as a spectrum, it is not a black and white picture. We have a spectrum of difference shades and colors.” The forum was attended by over 200 CEOs, senior executives, professionals from financial and business sectors, academics and media industry. Discussions were held on China's financial and banking reforms, the internationalization of the RMB as well as the challenges and opportunities these will bring about for Hong Kong in the years to come. It marks the first cooperation ever between China Daily PAFTAD and HKIMR. From time to time, China Daily Asia Leadership Roundtable organizes forum on topics related to China and Hong Kong’s latest development in various industries including finance, economy, culture and environment etc. ### About China Daily From print to digital media, from China to America, Europe, Africa and the rest of Asia, the China Daily Group, with 13 print publications, is an authoritative provider of information, analysis, comment and entertainment to global readers with a special focus on China. While China Daily has firmly established itself as the leading English-language news organization in China since its founding in 1981, the group also publishes the Hong Kong, US, European, African and Asia-Pacific editions of the flagship brand with a total circulation of 800,000. The group is accelerating its pace of overseas expansion through its global reporting and communication networks, and in the process, building a world-class multimedia enterprise. The flagship newspaper publishes 24-page editions Monday through Friday, plus 16-page editions on Saturday and Sunday. It uses cutting-edge design, allied to dynamic photographs and artwork, and encompasses in-depth reports to analyze affairs both in China and internationally. www.chinadaily.com.cn About The Pacific Trade and Development Conference The Pacific Trade and Development Conference (PAFTAD) is an informal private academic conference series which originated in 1968. Since this time, PAFTAD has been a driving force behind the development of thought on Pacific trade and development issues and important economic policy questions facing the region. www.paftad.org About The Hong Kong Institute for Monetary The Hong Kong Institute for Monetary Research (HKIMR) was established in August 1999 by the Hong Kong Monetary Authority (HKMA), with the objective of conducting research in the fields of monetary policy, banking and finance that are of strategic importance to Hong Kong and the Asian region. www.hkimr.org
2013-11-20专家汇聚探讨中国金融发展及全球经济影响 (2013年11月19日 香港)中国日报今天在香港举办题为「中国金融业发展对全球经济的影响」的论坛,讨论中共十八届三中全会为香港保持国际金融中心地位所提供的机遇。香港特别行政区行政长官梁振英出席并发表主题演讲。 梁振英在演讲中表示香港未来会进一步加强与内地的金融合作。他相信香港能从国家的深化改革和扩大开放中取得新的动力,促进经济进一步的增长。同时,他还强调人民币国际化对香港来说是个绝佳的机会,扩大人民币在世界的影响也是香港的使命。人民币国际化不仅是货币应用的一个扩展,更是给世界一个全新的思路。 中国日报亚太分社社长兼总编辑周立在致辞中说,论坛在中共十八届三中全会刚刚闭幕之际举办意义特殊,三中全会通过了《关于全面深化改革若干重大问题的决定》,并承诺了将对全球金融市场和海外商务提供更开放的平台,香港将成为主要的受益者,在改革的进程中发挥其独特优势。 本次论坛是由中国日报、太平洋贸易及发展会议(PAFTAD)及香港金融研究中心(HKIMR)首次联合举办的,参与讨论的嘉宾包括加拿大前财长温迪多布森(Wendy Dobson)教授、渣打银行(香港)有限公司执行董事及行政总裁洪丕正先生、泰国前商务部部长那容猜(Narongchai Akrasanee)博士,以及香港金融管理局助理总裁(经济研究)兼香港金融研究中心主任何东博士。 论坛联合主席香港金融研究中心咨询委员主席陈坤耀教授相信香港在推动中国这个全球第二大经济体的发展过程中发挥着重要作用。在专题研讨中,何东博士认为十八届三中全会的公报令人振奋,将会影响中国未来的发展,而香港作为亚太地区最国际化的城市,其作用也是显而易见的。关于人民币议题,洪丕正先生亦作补充,他认为北京方面希望利用香港作为实验场及防火墙,有助稳步快速地推进人民币国际化。 此次论坛围绕中国十八届三中全会有关中国金融市场的最新发展动向、人民币国际化进程及由此为香港的发展所带来的机遇和挑战等议题进行研讨,共吸引了超过200位来自金融界、商界、学界以及媒体界的执行总裁、高层及专业人士参与。 ### 关于中国日报 《中国日报》是中国国家英文日报,创刊于1981年,全球期均发行90余万份,其中,海外期均发行60余万份。《中国日报》作为中国了解世界、世界了解中国的重要窗口,是国内外高端人士首选的中国英文媒体,是唯一有效进入国际主流社会、国外媒体转载率最高的中国报纸,也是国内承办大型国际会议会刊最多的媒体。www.chinadaily.com.cn 关于太平洋贸易及发展系列会议 太平洋贸易及发展系列会议 (PAFTAD) 成立于1968年,是一个非官方的民间组织。会议旨在提供就太平洋发展及地区性经济政策等问题的讨论平均。 www.paftad.org 关于香港金融研究中心 香港金融研究中心于1999年8月由香港金融管理局成立,目的是对香港和亚洲区内的货币政策、银行及金融业具深远影响的课题进行研究。www.hkimr.org PDF Download: attach/pdf/20131119/%E4%B8%AD%E5%9B%BD%E6%97%A5%E6%8A%A5%E6%96%B0%E9%97%BB%E7%A8%BF1119.pdf
2013-11-20Hong Kong still has unparalleled competitive advantages, such as the rule of law, to benefit from and contribute to the country’s new round of economic reforms, Chief Executive Leung Chun-ying said at the China Daily Asia Leadership Roundtable forum on Tuesday. Tuesday’s forum and panel discussions, themed “Financial development in China and implications for the global economy”, were jointly presented by China Daily Asia Pacific, the Pacific Trade and Development Conference (PAFTAD) and the Hong Kong Institute for Monetary Research. It was also part of the PAFTAD conference series hosted in Hong Kong. Leung’s keynote address at the forum came just days after Beijing outlined the route map to carry on deeper social and economic reforms on the mainland. He said it was too soon for the local administration to formulate a comprehensive view on the 300-plus initiatives adopted last week at the Third Plenary Session of the 18th Central Committee of the Communist Party of China, but he believes the city will certainly benefit from them. “We can gain new development synergies through the national reform and opening-up, so that Hong Kong’s economy will accelerate and the living standards of Hong Kong people will rise. At the same time, this is important -- to make our contributions to the nation,” he said. Hong Kong has always been a premier international gateway for trade and investment into and out of the mainland, Leung said, and the city will continue to serve businesses across the border as the “chief knowledge officer” with its vast experience and well established links. “We know that Hong Kong has benefited significantly from its free and open economic strategies in tandem with the gradually opening-up (and) reform policies in the Chinese mainland since 1978. And this will not change,” he said. Since it was given the responsibility to test, launch and develop new initiatives for yuan liberalization, he said, the city is now the largest center for offshore yuan business, backed by sophisticated infrastructure and the largest pool of yuan capital outside the mainland. But as financial reforms move along, Hong Kong is feeling the heat of competition. Shanghai has just set up its pilot free trade zone, whereas global financial hubs like London and Singapore are gearing up their efforts to share a bigger slice of offshore yuan businesses. It was too early to tell how the Shanghai zone would impact on Hong Kong, Leung said, but the city has always welcomed competition as a driver of growth and progress, as such competition in offshore yuan business shall expand the range and volume of products globally. “The pie, with the fast growth of the Chinese economy, is getting bigger than the growth of the slices and everyone has a role to play. There is enough for everyone around, whether in the country, in the region or in other parts of the world,” he said. Furthermore, Hong Kong still possesses unparalleled competitive edge when compared to mainland and overseas cities. One important attribute for financial services that Hong Kong holds onto, he said, is the rule of law and an independent judiciary. But the city is not complacent with its strength. Leung said the Financial Services Development Council (FSDC), the advisory body that has just completed six reports, “has been proven to be very effective” and the government, together with the regulators, will study the reports in detail. Earlier, the CE said before the weekly Executive Council meeting that he has read all six reports prepared by the FSDC. The government has emphasized its regulatory role in the past and while that is essential, “we cannot forget the part that involves developments.”
2013-11-19Tourism in China could reap rewards for investors if service and infrastructure are improved China’s tourism industry is booming, presenting tremendous opportunities for private companies to invest and take advantage of the soaring demand from Chinese tourists, both at home and abroad. “Tourism assets are the new wealth that Chinese companies should invest in, after traditional industries such as mining and real estates,” said Wang Ping, chairman of the China Chamber of Tourism and vice chairman of the Global Tourism Economy Forum. “It’s time to change people’s idea of future wealth,” she continued, arguing that tourism assets are likely to appreciate over time, and also that the sector has less of a detrimental impact on the environment than other industries in China. Wang was speaking at the China Daily Asia Leadership Roundtable, one of the sessions held as part of the second Global Tourism Economy Forum in Macao on Sept 19. The roundtable gathered a range of Chinese entrepreneurs from the private sector who have invested in tourism or are interested in investing in the industry. These included representatives from some of China’s major conglomerates, in a sure sign that the travel industry is attracting serious investors with deep pockets. It is hardly surprising that interest in the sector is on the up, as statistics suggest that recent fast growth is set to continue. According to data from the China Chamber of Tourism, Chinese people traveled 3 billion times in 2012. The number is expected to increase to 4.5 billion times this year. More than 86 million Chinese people went overseas last year. China also has the world’s biggest purchasing power in terms of overseas tourism spending. “The data from this year means, on average, every Chinese travels three times a year,” Wang said, adding that the private sector should seize this great opportunity to invest. Wang’s comments were echoed by Fu Jun, chairman of the board of directors and president of Macrolink Group Ltd, a private conglomerate of real estate, mining, finance, chemicals, petroleum and beverages. “The tourism industry offers possibilities for China’s private sector to upgrade and transform because it is a big market,” Fu said. “The development speed of China’s tourism infrastructure is much slower than its demand,” he said, adding that there is plenty of space for private companies to invest since the country’s 12th Five-Year Plan (2011-2015) requires 12 percent annual growth in tourism. The Hunan-based group bought two wineries in Bordeaux last month, and is planning to launch a new tourism business in Beijing. It is also considering investing in tourism resources in South Korea, Malaysia, Kenya and Mauritius, where Chinese tourists are already showing an interest. In the domestic arena, Fu said his company is planning to build three resorts and 10 five-star hotels in the near future. “Two of the three resort areas will be in Hunan,” he said. “One is in Suiyan county, a place with a 1 million square-meter primary forest. The other is the Tonggu ancient town near Hunan’s capital city Changsha; we are going to rebuild the town and make it into a resort destination.” For both projects, the group plans to invest around 10 billion yuan ($1.63 billion). Fu further explained that the company has a resort project in Qinghai province’s Guide county, where the Ming Dynasty’s first emperor, Zhu Yuanzhang, once put his troops. He said that his company is eager to figure out how to build infrastructure appropriate to these beautiful places. “We have started some talks with international hotel brands, such as Sheraton and Marriott,” Fu said. “I believe tourism is the future direction for China’s private companies’ development.” Zheng Yuewen is chairman of the China International Chamber of Commerce for the Private Sector, and also founder and chairman of the Creat Group, a conglomerate with interests in sectors including finance, healthcare and agriculture. He noted that China’s private companies have begun to invest in overseas tourism and cultural assets, with recent high-profile cases including Dalian Wanda Group’s purchase of the US cinema chain AMC and Fosun Group’s purchase of hotel and resort chain Club Mediterranee, better known as Club Med. “Both deals involved a big amount of money,” he said. “In fact, I think in many places, Chinese investments have been much bigger than foreign companies in recent years.” He gives an example of Chinese companies’ investments in Northeast China’s Changbai Mountain, where infrastructure was previously poor. “Within three years, we have seen 30 billion yuan invested and five five-star hotels built, as well as 48 skiing areas,” Zheng said. “My company has a skiing area in Changchun also, but that is not one of our major businesses.” Zheng’s company bought Japanese high-class golf equipment brand Honma in 2010, and also owns a golf course in Tokyo. “China’s private companies are eyeing the world’s tourism assets,” Zheng asserted. He also provided an insight into what his firm is looking for when it invests overseas. “We are interested in two kinds of countries. First, they must have mature infrastructure, but have not yet been well publicized in China. Second, they should have special cultural characteristics.” Zheng said that tourism’s development in China is based on the fact that Chinese people have more leisure time and money than in the past. “Along with the increasing number of middle class people, the demand in tourism will keep growing,” he predicted. But it is not an entirely rosy picture. Experts at the event also warned that there will be difficulties on the way as the sector continues to grow. Peter Wong, chairman of the MK Corporation Ltd and vice chairman of the Global Tourism Economy Forum, said despite all the achievements to date, China’s tourism sector still has a long way to go. “The industry has structural problems,” Wong said, quoting a report published by the World Travel & Tourism Council (WTTC) in 2004. “In many other Asian countries, they have a ministry of tourism. However, in China, we only have a tourism bureau, which means we have difficulties in dealing with affairs involving other government departments.” Wong said that in the nine years since this report was published, few changes have been made. He called for a ministry of tourism to coordinate every perspective of the industry. “China’s tourism industry has been included in the government annual report since 1996, and the private sector has only been in the industry since 2002,” Wong said. “We hope that, through the push by the private sector, China could have a ministry-level tourism administrator in future to coordinate the interest of tourism, transportation and cultural heritage administration.” As a delegate of the National People’s Congress over the last five years, Wong said he has been calling for a tourism ministry for a long time. “Tourism has six ‘E’s: Education, entertainment, economy, employment, ecology, and exchange,” he said. “The concept of tourism is much wider than before.” Wong explained that tourism has enjoyed increased focus from the Chinese government in recent years. It is officially supported by the 12th Five-Year Plan (2011-2015), and cooperation with neighboring countries is a highlighted topic, given that China’s neighbors are striving to develop their own tourism industries as well. According to the WTTC’s 2004 China report, 80 percent of tourism income came from cultural heritage attractions. Wong said that China is rich in such sites, but many of them have just started to be developed for the tourist market. “There will be a lot of opportunities in China’s tourism industry to attract foreigner investors as well,” he said, advising that overseas investors will need to move fast as domestic capital is already rushing into tourism assets. However, Yang Bin, professor and senior associate dean of the School of Economics and Management at Tsinghua University in Beijing, sounded a note of caution for domestic investors. “Many tourism projects can be soulless. This kind of investment could easily become a simple property project,” Yang said, advising that Chinese companies should pay attention whether they are buying the “hardware” or the “software” of the tourism assets. “Buying only the ‘hardware’ could lead to assets depreciating in the future because tourism is an industry that is highly dependent on the experience it brings to the customers,” he said. Yang also expressed concern about the relatively low quality of service in China’s tourism industry, saying that the industry will grow only if its personnel improve in quality and put their hearts into their jobs. “For customers, good tourism service provides not only a trip, but also a journey,” Yang said, adding that cultural uniqueness is more important than products in this business. Ultimately, experts concurred that the future for China’s travel sector seems bright, with plenty of scope for improvement and investment. “Tourism in China is still a sunrise industry. The places with the best views are short of infrastructure,” said Fu from Macrolink. “It is a sustainable business and it has great potential for development.” benyue@chinadailyhk.com
2013-09-27China Daily Asia Leadership Roundtable examines how China’s private enterprises can go global to help upgrade the nation’s nascent tourism industry. Wong Joon San reports. While the GTEF has been bombarded with many proposals, one that stands out is the suggestion it plays a much greater role in future tourism development by focusing its efforts on a particular country, and on promoting a certain business model for attracting foreign investment to that nation as well as other projects. Speaking at the China Daily Asia Leadership Roundtable themed “Perspective from China International Chamber of Commerce for the Private Sector on Mainland Private Enterprises”, held in Macao on Sept 19, Zheng Yuewen, founder and chairman of Creat Group, said by doing so, the forum could effectively promote one country at a time. “The GTEF could promote lesser-known countries with good infrastructure, such as island countries. In addition, they could also promote other projects and try to get more investments. These countries could also showcase themselves at the event,” he told participants at the roundtable event held at the Venetian Macao Resort Hotel. Alexander Wan, senior adviser of China Daily Asia Pacific, was the moderator. The China Daily Asia Leadership Roundtable was hosted by the Macao SAR, co-organized by the China Chamber of Tourism and coordinated by the Global Tourism Economy Research Office. It was held in conjunction with the two-day Global Tourism Economy Forum. Zheng said when Chinese companies purchase tourism-related foreign assets, they must have a proper aim and focus, like the example of Dalian Wanda Group, a successful overseas investor from the private sector. Chinese billionaire Wang Jianlin thrust his Dalian Wanda Group into the headlines in Europe in June this year with its $1 billion investment in two projects in the UK: the purchase of a 92 percent stake in yacht-maker Sunseeker and a high-end real estate development in London. It was also announced at the weekend that Wang plans to build China’s biggest film studio, a direct appropriation of Hollywood in the city of Qingdao. Wanda’s acquisition of Sunseeker, and its London property are partially because of the fast-rising number of rich Chinese, too. More significantly, through projects abroad, Wanda can extend its operations overseas and become an international name as a high-end market developer, as well as adding value to its reputation domestically. For Wanda, well-known for its commercial properties, hotels, tourism and entertainment, replicating its projects everywhere is easy. And Wanda stands out because it has been able to enjoy good returns and retain strong credibility. Commenting on tourists to the mainland, Wang Ping, chairman of the China Chamber of Tourism and vice-chairman of the GTEF, said there were 3 billion inbound tourists in 2012, a figure that will rise this year to 4-5 billion, and perhaps, reach 5 billion in two to three years. Investors, while considering overseas investments, should also be aware of local opportunities such as Zhangjiajie, a city in Hunan province, which attracted 39 million visitors last year. Between January and July, a small village there attracted 5 million visitors, she said. Commenting on private sector involvement in tourism, Fu Jun, chairman of the board of directors and the president of Macrolink Group Ltd, said the private sector had been involved in tourism development since reforms were introduced in this sector several years ago. “However, they faced three serious challenges. The first being transformation and upgrades of the sector; second, cultivation of its core competitiveness; and, third, the Chinese private sector must not be too proud of its achievements, and become complacent,” Fu warned. He pointed out that China’s tourism sector was unable to meet the country’s rapidly rising tourist demand, despite the development of some resorts in Hunan. Fu said his group had developed resorts on the mainland under its own brand name and was currently negotiating with Marriott and Sheraton to build other hotels. In addition to turning to investments abroad, Fu said: “We have to go global as countries like Libya and Zambia are attracting lots of Chinese people. We have heard that Chinese people are curious to go to those places, and I would like to go there too.” As a sector supporting tourism, Jane Fountain, managing director of Harmony World Watch Center, said women loved shopping and tourism was a healthy way of living. “When they go on tours, they buy things (including watches) for their friends,” she said. She also related how she and her classmates from wealthy families in China traveled to Europe and the USA to see the retail sector’s high standards and to gain a better first-hand idea of how local brands fared against them. “My own company works with famous international watch brands such as Omega in Hong Kong, and I also promote my own local brand,” she said, adding that her business was thriving well. Commenting on the dip in sales on the mainland due to the anti-corruption drive against government officials, particularly if they purchased a watch at a cost of more than 50,000 yuan ($8,170), Fountain said: “If people in pursuit of beauty can afford to buy a watch for over 50,000 yuan, why not?” She pointed out that 50 percent to 70 percent of global watch brands’ customers are from China. Peter Wong, chairman of MK Corp Ltd and vice-chairman of GTEF, who shared his views of China’s tourism transformation from traditional to modern practices, said that since 1996, the private sector had been encouraged to invest in tourism and had received strong support from the World Travel and Tourism Council. However, China’s tourism development had not been a smooth process, he said, adding that the not-for-profit organization GTEF had published a report in 2007 which had proposed changes to the system involving the Ministry of Transport and the Ministry of Railways. Through the report, GTEF had urged the central government to upgrade the Tourism Bureau to ministry level, a proposal that was put on the back burner. Wong said this is a key matter as to whether or not GTEF had to approach the National Development and Reform Commission to achieve it or to contact local governments. Yang Bin, professor and senior associate dean of the School of Economics and Management at Tsinghua University, said the development of the Chinese tourism industry lacked “cultural spirit and soul”, so most initiatives were confined to single locations and were merely real-estate projects. He told investors who wished to invest in overseas tourism projects that they had to buy both the hardware and the software to provide tourists with a “tourist experience”. Have infrastructure, will travel Tourism in China has just taken off and is still at a nascent stage, said Fu Jun, chairman of the board of directors and the president of Macrolink Group Ltd. In a question and answer session following the China Daily Asia Leadership Roundtable event, Fu said his company was optimistic over the sustainability of the cultural and tourism industry on the mainland. Fu’s company had purchased a piece of land in Shanghai recently for 1.7 billion yuan ($278 million) to build a hotel project in anticipation of a rise in hospitality service demand when Disneyland was completed. It is scheduled to open in December 2015, and expected to attract 20 million visitors per year. Jane Fountain, managing director of Harmony World Watch Center, said some of her CEO friends had visited Chengdu in Southwest China’s Sichuan province and found it a beautiful place, but lacked tourists as there were no good hotels, and infrastructure was not up to international standards. Peter Wong, chairman of MK Corp Ltd and vice-chairman of GTEF, said although there were hotels in some cities, the infrastructure was not well-connected in some places. He urged authorities to build roads for better connections.
2013-09-24The second edition of Global Tourism Economy Forum (“GTE-Forum” or “the Forum”), hosted by the Secretariat for Social Affairs and Culture of the Macau SAR Government, co-organised by the China Chamber of Tourism under the authorisation of All-China Federation of Industry and Commerce (ACFIC) and coordinated by the Global Tourism Economy Research Centre, will return to the Macau Tower Convention and Entertainment Centre from 18-19 September 2013 (Media registration on 17 September). Details of the Programme and the speaker roster were announced at the press conference today (9 September) at the Tourism Activities Centre (CAT). Explore tourism’s critical role in revitalising and driving global economic growth Themed as “Regenerate our Economies: Invest in Travel and Tourism”, this edition of GTE-Forum has invited over 40 ministerial officials and private leaders from globally-renowned corporations to more in-depth discussions on why and how investment in tourism industry can revitalize and mobilise global economic growth. The second edition is expected to command the same force as the inaugural edition, with the attendance of over 1,000 delegates from around the world, including delegations from more than 15 provinces and autonomous regions from China. Approximately 160 local and overseas media representatives will cover this event. Ms. Cheung So Mui Cecília, Chief of the Office of the Secretary for Social Affairs and Culture of the Macau SAR Government, said, "Through successful organisation of the inaugural Global Tourism Economy Forum last year, Macau has demonstrated respective capabilities and assets as well as proven itself as an ideal exchange platform. This year we once again bring industry leaders and elites from around the world together to discuss the insights to drive economic growth by leveraging tourism, while there will be over 100 local and overseas media representatives to join the Forum. Macau’s commitment to organise three consecutive Global Tourism Economy Forums allows the city to fully facilitate its platform role that can bring significant influence to elevate Macau’s international reputation.” Ms. Maria Helena de Senna Fernandes, Director of the Macau Government Tourist Office added, "This year the Global Tourism Economy Forum is themed as ‘Regenerate our Economies: Invest in Travel and Tourism’, which is in line with Macau’s positioning to evolve as the World Centre of Tourism and Leisure, as well as its objectives of foster adequate diversification and sustainable development. This edition of Forum comprises of ministerial round table, presentation sessions and discussion panels with a lineup of ministerial-level tourism officials, renowned entrepreneurs in the Asia-Pacific Region and global level, industry leaders, experts and intellectuals to share their ideas and experience. We firmly believe the invaluable insights contributed during the Forum will provide an important reference for the city’s build-up of World Centre of Tourism and Leisure.” Line up global leaders and deepen global tourism cooperation The second edition of GTE-Forum will present an impressive line-up of global leaders, including Mr. Su Rong, Vice Chairman of The National Committee of The Chinese People’s Political Consultative Conference, Mr. Chui Sai On, Chief Executive of Macao SAR, Mr. Ho Hau Wah, Vice Chairman of The National Committee of the Chinese People''s Political Consultative Conference cum Forum Chairman of GTE-Forum; Mr. Li Lu, Vice Chairman of All-China Federation of Industry & Commerce; Dr. Taleb Rifai, Secretary-General of World Tourism Organization (UNWTO); Mr. Michael Frenzel, Chairman of World Travel & Tourism Council (WTTC) and Chairman of the Supervisory Board, TUI Deutschland Gmbh and TUIfly Gmbh; Mr. João Manuel Costa Antunes, Chairman of Pacific Asia Travel Association; and Ms. Wang Ping, Chairman of China Chamber of Tourism. In addition, ministerial-level government dignitaries such as Mr. Du Jiang, Vice Chairman of National Tourism Administration of the People’s Republic of China and Mr. Adolfo Mesquita Nunes, Secretary of State of Tourism of Portugal will participate in the Ministerial Round Table in collaboration with the UNWTO session and speak on the subject of global cooperation in travel and tourism. The Forum has also invited renowned tourism and corporate leaders around the world to share their insights in tourism economy development. These leaders include Mr. Zheng Yuewen, Founder and Chairman of Creat Group; Mr. Arthur de Haast, Chairman of Hotels and Hospitality Group of Jones Lang LaSalle; Mr. Naren Srinivasan, Senior Vice President of Global Strategy and Corporate Development of The Hertz Corporation; Mr. Luis del Olmo, Executive Vice President, Group Marketing & Asia Pacific of Meliá Hotels International; and Ms. Liu Ting, President of Asia Link Group, among others. Analyse the components of success and foster international cooperation This edition of GTE-Forum is collaborating with, the World Travel and Tourism Council (WTTC) and the Pacific Asia Travel Association (PATA), to explore practical solutions to foster tourism economy from a spectrum of perspectives such as investment opportunities and challenges, supportive tourism policy and tourism innovations. Hospitality Session: Points of View from Global Industry Leaders focuses on the economic and societal impact of hospitality sector at the regional and national levels. China Daily Asia Leadership Roundtable is designed to demonstrate how Chinese private enterprises follow the “Go Global” policy, build and expand their businesses overseas, promote cooperation with overseas enterprises, and bring in overseas business partners. Further, business matching sessions, presentations and workshops, have been created to facilitate direct contact and exchange between Mainland Chinese and overseas enterprises and organisations during the Forum period. Various social events such as luncheon, entertainment shows, and Macau World Heritage visit have been specially created for delegates so that they can experience the fusion of Eastern and Western cultures as well as endless innovations of Macau tourism. Ms. Pansy Ho, Chairman of the Global Tourism Economic Research Centre Chairman and Secretary-General of the Global Tourism Economic Forum, commented, "A high-level international exchange and business matching platform, the inaugural Forum has successfully served as a springboard and established subsequent business networking activities between China and foreign countries. In addition to a wide range of discussion topics, this edition also emphasises the element of business matching, which not only provides first-hand information about the tourism markets in Asia and China, but also continues last year’s success in exploring and fostering cross-regional, cross-sector investment opportunities and cooperation in tourism." - End - About the Global Tourism Economy Forum Hosted by the Secretariat for Social Affairs and Culture of the Macao SAR Government, co-organised by the China Chamber of Tourism under the authorisation of All-China Federation of Industry and Commerce (ACFIC) and coordinated by the Global Tourism Economy Research Centre, the Global Tourism Economy Forum is a prominent annual event for the global tourism industry. In 2012, the Inaugural Forum attracted over 1,000 delegates from 34 countries and cities all over the world. The Forum aims at establishing a platform for domestic and overseas exchange and cooperation, fostering and promoting integrated development in tourism and service industries, creating better investment prospects and deepening tourism cooperation, thus bringing new opportunities of economic development for China and the world.
2013-09-19The developing China-ASEAN relationship promises reciprocal benefits for trade and beyond Ten years on since the initial framework for a China-ASEAN Free Trade Area (CAFTA) was signed in Phnom Penh in Cambodia, the bloc has blossomed into a partnership that goes well beyond commerce. With a population of 1.9 billion people, the CAFTA, established on January 1, 2010, boasts a combined GDP in excess of $9 trillion. Continued trade ties and the future of the CAFTA were among some of the key issues raised at the China Daily Asia Leadership Roundtable themed “China-ASEAN Business and Economic Partnership” on July 18 in Kuala Lumpur. “It’s a particularly good time to talk about China-ASEAN (Association of Southeast Asian Nations) business,” said Dicky Yip, Asia Pacific chief representative for the Institute of International Finance, a trade group that represents major financial firms worldwide. This year also marks the 10th anniversary of the Joint Declaration on Strategic Partnership for Peace and Prosperity, signed between China and ASEAN on the Indonesian island of Bali, in October 2003. To celebrate the occasion, the roundtable meeting, held on the sidelines of the 10th ASEAN Leadership Forum, gathered business leaders and entrepreneurs from across the region to explore the opportunities and challenges arising from closer economic ties. “China is an important partner of ASEAN for peace, stability and prosperity,” Le Luong Minh, ASEAN secretary general, told China Daily Asia Weekly in an interview on the sidelines of the forum. “China’s development has brought huge opportunities to ASEAN. China’s peaceful development would be beneficial to the region. And vice versa, a strong, stable and united ASEAN is in the interest of the region, including China,” he said. Le further estimates CAFTA-related agreements will bring bilateral trade to $500 billion by 2015. Trade volume between China and ASEAN amounted to $319 billion last year, up from $55 billion in 2002. Foreign direct investment flow from China to ASEAN doubled to $5.9 billion in 2011. “The development of the China-ASEAN relationship has not only benefited both sides, but also contributed vigorously to building the ASEAN community,” said Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, in his welcoming remarks. “The relationship is also an important factor ensuring wider ASEAN stability and prosperity.” While China has been ASEAN’s largest trading partner, ASEAN has since emerged as one of China’s top trading partners. It has leapt in importance from fifth place between 2000 and 2006 to third place in 2011, just behind the European Union and the US. During a lively discussion, the panelists identified connectivity as one key area for China-ASEAN cooperation. Shen Jiajun, chairman of CSR International Equipment and Engineering, the company behind China’s high-speed rail network, stressed the importance of technological exchange in building railway networks in the region. “It’s not necessarily (that) we produce bullet trains in China and ship them here. We invest in ASEAN and export our technology,” Shen said. “China has both (comparative) advantages and disadvantages in certain areas; so do our ASEAN neighbors. That’s why we need to trade,” added Shen, whose company has cooperated with local partners and exported services to more than 70 countries, including Vietnam, Singapore and Malaysia in ASEAN. Tourism is another promising sector. Few would forget the miracle of the low-budget Chinese movie Lost in Thailand — a record-breaking success at the box office, it has also been an inspiration for Chinese travelers. The fact that the number of Chinese tourists visiting Thailand is expected to surge by 10 to 20 percent — to 3 million visitors this year — has surely made Thailand the envy of its ASEAN neighbors. While the China Tourism Academy estimates the number of Chinese outbound visitors reached 82 million last year, ASEAN countries attracted only less than 10 percent of this group, observed Abdul Majid Khan, president of Malaysia-China Friendship Association. Top-spending tourists Chinese tourists also emerged as the world’s top spenders, surpassing both Germany and the US with a record $102 billion last year. Indonesia’s Bali and Thailand’s Phuket in the ASEAN region were ranked among the top 10 travel destinations for Chinese tourists last year, according to Ctrip.com, China’s leading online travel agency. “ASEAN countries should act together to sell ASEAN to China,” Khan said. He recommended promotional campaigns in Chinese cities and provinces as a good way to inform potential Chinese tourists of the many and various holiday options across the region. Yet despite plenty of goodwill toward increased regional cooperation, the reality is more complex. With numerous free trade agreements (FTAs) in place, such as ASEAN Plus 3 (including China, South Korea and Japan), a challenge facing ASEAN is to implement what has already been agreed. Domestic laws and the regulations of some ASEAN members are often not up to the required level of the FTAs, explained Ong Keng Yong, Singapore’s high commissioner to Malaysia and former ASEAN secretary general. “We have to work on that quickly,” Ong said. For example, the deadlock on removing tariffs on all goods, including those listed as “highly sensitive” such as oil and rice, is still awaiting progress after years of negotiations. Bilateral trade between China and the 10-nation ASEAN bloc is expected to reach $500 billion in 2015, Chinese Vice Minister of Commerce Gao Yan told a press conference on July 23. According to the Ministry of Commerce (MOFCOM), China-ASEAN bilateral trade has surged in the past decade, from $54.7 billion in 2002 to $400.1 billion in 2012, with an average annual growth rate of 22 percent. Currently ASEAN is China’s third largest trading partner, and the fourth largest export market. It is also the second largest source of imports, as well as a major contributor of foreign tourists to China. The first half of 2013 saw year-on-year growth of 12.2 percent in China-ASEAN trade that totaled $210.5 billion, MOFCOM said. China had a trade deficit with ASEAN until 2012, when China had a trade surplus of $8.5 billion, or 2 percent of the bilateral trade value, showing an almost balanced trade, Gao said. Trade patterns have changed since the China-ASEAN free trade area was established, Gao said, with China overtaking Japan to become the largest exporter to ASEAN. The world’s second largest economy has so far directly invested in 2,500 enterprises in ASEAN, creating 120,000 local jobs. Meanwhile, ASEAN’s direct investment in China has more than doubled over the past 10 years, from $3.26 billion in 2002 to $7.1 billion. While all eyes are on promoting multilateral trade between ASEAN and China, the thorny issue of harmonizing banking practices must not be neglected. “International trade and banking goes hand-in-hand,” said Yip from the Institute of International Finance. The former banker suggested that one way to facilitate trade between ASEAN and China is to use the yuan as a trading currency. Today, over 70 percent of world’s trade is still carried out in US dollars. This compares to less than 1 percent in yuan, although the potential of the currency should not be underestimated. Some five to six years ago, only 3 percent of China’s export and import trade involved the yuan, compared with 12 percent today. As part of the internationalization drive of the yuan, the People’s Bank of China, the country’s central bank, has signed bilateral currency swaps worth $275 billion with some 20 countries, including ASEAN economies such as Singapore, Malaysia and Thailand. The currency swap allows two signatory countries to conduct business in their own currency without having to settle trade invoices in US dollars. Yip highlights a two-point benefit of using yuan as a trading currency, reserve currency and investment currency. “First, people use this channel to minimize exchange risk. Second, we foresee (yuan) value to gradually increase over time,” he said. With the possible scaling back of quantitative easing amid a stronger US economic recovery, recent worries have been of a large-scale exodus of capital from ASEAN and China. “The reason underlying the ASEAN countries developing the Regional Comprehensive Economic Partnership (RCEP) in 2015 is precisely to address some of the implications of the issue,” said Ong, the former ASEAN secretary general. The idea is that relying on just China-ASEAN trade could be insufficient to fend off adverse effects to the region. Instead, the RCEP — branded as a 16-nation-strong free trade zone comprising all ASEAN members plus China, Korea, Japan, Australia, New Zealand and India — will have a better chance of attracting new potential investors from outside the bloc. jennifer@chinadailyhk.com http://www.chinadailyasia.com/focus/2013-07/26/content_15080217.html
2013-07-26China’s Lenovo and India’s Tata group are among a handful of huge Asian companies that are widely known around the world. But such household names do not give the full picture, as these giants coexist with a large population of successful small and medium enterprises (SMEs), which form the backbone of the region’s economies. In fact, SMEs account for as much as 85 percent of employment and contribute up to 53 percent of GDP in many Association of Southeast Asian Nations (ASEAN) countries. SMEs in China, meanwhile, make up more than 99 percent of all enterprises in the country. The China-ASEAN Free Trade Area (CAFTA), which came into effect in January 2010, has had considerable impact, presenting tremendous opportunities, but also threats, to the region’s SMEs. CAFTA is the world’s largest free trade area in terms of population — 1.9 billion people — and has a GDP of more than $9 trillion. It is also the third largest in terms of trade volume, after the European Union and the North American Free Trade Area. Nonetheless, some SMEs in the region are still unaware of the potential it offers. “One challenge is about educating people about CAFTA and what it means for businesses,” said Ong Keng Yong, Singapore high commissioner to Malaysia and former ASEAN secretary general, speaking at the China Daily Asia Leadership Roundtable event on “China-ASEAN Business and Economic Partnership” on July 18, held on the sidelines of the 10th ASEAN Leadership Forum in Kuala Lumpur. Recent surveys by the ASEAN Secretariat indicated that one-third of the business community lacked basic understanding of the ASEAN Economic Community, which will kick off in less than two years time, and the benefits of free trade agreements with major trading partners such as China. “The CAFTA is certainly a good start,” said David Chua, executive advisor of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM). “But it takes time to sink in and for SMEs to adjust (their strategies).” Under CAFTA, tariffs on over 90 percent of products and services traded between China and six ASEAN countries including Brunei, Indonesia, Malaysia, the Philippines, Thailand and Singapore have been removed. In 2015, four newer ASEAN members — Vietnam, Laos, Cambodia and Myanmar — will join the agreement. Such a closer China-ASEAN tie is of particular importance to some of the region’s developing nations, explained Ken Chanthan, former president of the Young Entrepreneurs Association of Cambodia and the CEO of the Ken Group of Companies. “Cambodia is a relatively small market,” said Chanthan, “ASEAN (partnerships) and free trade agreement with China have enabled Cambodia to expand our market.” Promoting free trade would also mean opening up domestic markets to regional competition. But this need not be bad news; rather it could act as a spur for ASEAN countries to raise their game. Developing a niche market is one way of competing with the “big boys” in the region, argued Hafimi Abdul Haadii, president of the Young Entrepreneurs Association in Brunei. With a population of just half a million, “(Brunei) is smaller than a Chinese village,” Haadii said. Brunei entrepreneurs are looking into producing unique products from specialized pillow cases to handbags, or kain tenunan, a detailed embroidered woven cloth that is exclusive to the country. Dicky Yip, Asia Pacific chief representative for the Institute of International Finance, recognizes the difficulties for cross-border SME business between China and ASEAN. “For SMEs to go abroad (they need) a lot of support and energy,” he said. SME support needed The fact that every country has its own definition of SMEs poses a challenge to meet entry requirements overseas. “In China, SMEs by definition can be very big,” Yip explained. This view is echoed by business communities in Malaysia. “SMEs in China could be a multinational in ASEAN countries,” said Abdul Majid Khan, president of the Malaysia-China Friendship Association, based in Kuala Lumpur. So far, there is no universal criterion of an SME. In China, companies with up to 2,000 staff and assets of less than 400 million yuan ($65 million) are still classified as SMEs. Yet a medium-sized firm in Cambodia could have just 200 employees and fixed assets of $500,000. SMEs in the region are also affected by barriers to market access. More than a decade ago, the Chinese government announced the “going out” strategy to encourage domestic enterprises to invest overseas. The policy has been a success in promoting China’s SMEs abroad. Nonetheless, a great disparity in capital flow is seen in some parts of ASEAN. “Chinese investment in Malaysia and Malaysian investment in China is probably in the ratio of just 1:10, largely favoring the Chinese,” observes ACCCIM’s Chua. In Malaysia alone, Chinese foreign direct investment amounted to $370 million in 2011. This is compared to $6.2 billion of Malaysian investment in China in the same year. To put things in perspective, Chinese investments in ASEAN surged to $5.9 billion in 2011, up from just $120 million in 2003. By mid-2012, China had invested $18.8 billion in ASEAN. Not surprisingly, China has emerged as Indonesia’s second-largest trading partner after Japan. As in Myanmar, investors from China already account for the largest share of foreign investment. Looking ahead, ASEAN still represents a market of potential for Chinese SMEs. From Indonesia’s timber to Malaysia’s palm oil, “China will find ASEAN attractive in the sense that we have lots of natural resources,” said Michael Yeoh, CEO of the Asian Strategy & Leadership Institute, a Malaysian independent think tank. For decades, countries in ASEAN have nurtured friendly business ties with China, thanks to cultural similarities. In practically every ASEAN country, ethnic Chinese people constitute a large proportion of the business community. “It makes it easier to do business because we speak the same language,” Yeoh added.
2013-07-23