CEIBS - The EU & China - October 2015 - Page 7

CEIBS,The EU & China

ByCharmaineNClarke

OnAugust28,CEIBSalumnusandPresidentofCathayCapitalPrivate

EquityCaiMingpoannouncedthathiscompanywilldonate€500,000

toestablishtheCathayGlobalPEResearchFundatCEIBS.Itwasthe

latest in a series of initiatives, over the years, that have underscored

CEIBS’ importance in Sino-European ties. By promoting the study of global

private equity investment, along with the innovations taking place, the

fund will have far reaching implications. It will also complement

CathayCapital’sSinoFrenchInnovationFund,anewcross-border

investment vehicle dedicated to venture capital financing for

innovative start-ups.Focusedonactivities inFrance,

China and the United States, the innovation fund will

invest up to €25 million in about 18 Internet

related projects.

theLINK Volume 4, 2015

14

Cai’s company is just one of the many CEIBS alumni

ventures that have invested billions of euro and created

thousands of jobs in Europe since the school’s launch in

1994.“ThoughCEIBSisstillayoungbusinessschool, the

impact that our alumni have had, and continue to have,

on the vital Sino-European relationship is impressive,”

says CEIBS Chinese President Professor Li Mingjun.

“Theiraccomplishmentsreassureusthatwearemakinga

difference.”Of thealmost200CEIBSalumniworking in

Europe, about 88% are at management level while the rest

–likeCai–arerunningtheirownbusinesses.Meanwhile,

there are more than 100 European alumni working in China.

Some of them stayed after studies funded by scholarships

suchasthoseprovidedundertheEU-ChinaBMTProject.

Fromleft:ProfessorsZhangWeijiong,PedroNueno,LiMingjun&DingYuan.


15

Workingincollaborationwiththreeotheracademicpartners–EuropeanFoundationforManagementDevelopment(EFMD),

FrankfurtSchoolofFinanceandManagement(FS),andIESESchoolofBusiness–CEIBSwonthebidforthe €10.1 million

BMTProjectin2007.“In1984,whenCEIBS’predecessorCEMIwassetuptoprovidemuchneededmanagementeducation

inChina,theEUprovidedscholarshipsformanyofthestudentsinitsall-Chineseclass,”saysCEIBSEuropeanPresident

ProfessorPedroNueno.“TheBMTprojectwasanaturalprogressionintheSino-Europeanrelationship.”

TheBMT’sgoal:toprovidetheeducationalbaseneededtosupportbusinessinfacilitatingChina’ssocialandeconomic

reform, a move that would ultimately create lasting relationships between the Chinese and European economies and benefit

both sides. It is, after all, in the interest of both parties to see the other do well. According to EU data, EU-China bilateral

trade in goods reached €467.5 billion in 2014, up from €428.1 billion in 2013. EU imports from China were worth €302.5

billion,whileEUexportstoChinareached€165billion.TheEUisChina’sbiggesttradingpartner,accountingfor14%of

China’sexternaltrade.MeanwhileChinaistheEU’ssecondbiggesttradingpartner,aftertheUS.

The China-EU relationship has never been more promising and full of

opportunities. Despite the lower GDP growth environment, the China

development story is still in its early years and promising. The slowdown

of GDP growth is a sign of maturity: you have to slow down before taking

a major turn. A weaker quantitative growth can be a stronger qualitative

one if it is more harmonious, more respectful of the environment and less

dependent on low cost exports.

China is coming out of its “factory of the world”model to become a

full market offering much more than low production costs. It is already

a major hub for many European companies but the potential is still

considerable, especially in areas such as consumer goods, services,

healthcare, clean tech, etc.

The rise of Chinese consumers also creates a favourable ecosystem for

innovation with the emergence of new uses and needs through the

mobile internet revolution. Innovation has a huge impact on economies

and business models, and our vision at Cathay is that companies need

to connect to the key networks in Europe, Asia and the United States

in order to accelerate their international growth. With our focus on

innovation, we are pleased to collaborate with CEIBS on projects such

as the recently-launched Cathay Global PE Research Fund as the school

continues to provide management education to business executives such

as myself and the next generation of business leaders who will help shape

the China-EU relationship.

Cai Mingpo (EMBA 2004, CEO 2009)

PresidentofCathayCapitalPrivateEquity


16

The time I spent studying at CEIBS is particularly memorable. I treasured the

atmosphere there, which was an integration of East and Western cultures. It was at

the school that I learned that frankness and innovation were important aspects of the

European approach. I also deepened my understanding of Chinese culture, especially

its characteristic depth and tolerance. My career was greatly enhanced by the lessons

taught through a combination of East and Western elements, which gave me an

international perspective and the sophistication to lead an enterprise.

My company Schneider Electric is a European enterprise which originated in France

and has been rooted in China for almost 30 years. It is one of the foreign companies

with the greatest achievements in localising for the Chinese market, and is a paradigm

of the blend between Chinese and European corporate cultures.

From my personal experience, and the success of Schneider Electric, I can tell there’s

marvellous synergy between Chinese and European cultures. Once the two cultures

are combined, immense power can be unleashed.

After two thousand years, the exchanges between China and Europe have grown

stronger, tens of times more than that in ancient times. We are fully convinced that

the exchanges between China and Europe would give birth to even more splendour in

the years ahead.

I am honoured to celebrate the 40th Anniversary of China-Europe ties together with

my alma mater, and witness a brand new milestone of this miracle.

Zhu Hai (EMBA 2001)

Pres ident of Schneider E lec t r ic

ChinaandSchneiderElectricGlobal

ExecutiveVicePresident

It is no surprise, then, that both sides have regular discussions aimed at

strengthening their relationship. In fact, there are more than 60 high level

and senior level dialogues, working groups and steering committees that

focus on issues such as foreign policy, security and defence, cyber, high

tech, innovation,andpeople-to-peopleexchanges.The latter isalsoa

component of the EU-China 2020 Agenda for Cooperation which lays

outtheframeworkforrelationsbetweenbothsidesoverthenextfive

years. It covers everything from cultural to educational initiatives and

CEIBShasdoneits fairshare inadvancingthisagenda.Theschool’s

EUDayshave servedupeverything fromthought-provoking lectures towine tastings.Meanwhile, theBMTProject

providedmorethan100exchangescholarshipsforMBAstudentsacrossEuropeandChinabetween2008and2012.Italso

madeitpossibleforanother60+studentsfromChina’sinnerregionstoenrolintheCEIBSMBA,andprovidedmodern

businessmanagementtrainingtomorethan400mid-levelprofessionals fromtheWestern,CentralandNorth-Eastern

regions of China.


17

In addition to scholarships for participants from

both sides, plus developing and providing business

management training in China, other aspects of

the BMT included strengthening academic and

corporate interactions as well as boosting the EU’s

visibility inChina.This includedeverythingfrom

research by CEIBS faculty to forums hosted on its

campuses(see“BoostingEUVisibilityinChina”).

“Overtheyears,therehavebeenmanyothertangible

expressions of the strong ties between China

and the EU and the role that CEIBS has played

in strengthening those bonds. CEIBS faculty, for

example,haveplayedasignificantrole increating

and disseminating knowledge on Sino-European

issues,” says CEIBSVice President and Dean

ProfessorDingYuan.Underthefour-year-longBMTLike all relationships that span four decades, the one between the

EU and China has seen good times and there have been shared

values, accompanied by difficult times and severe differences.

Reflecting on the last 4 decades brings us to think about what the

future holds for this union.

The economic ties between China and Europe will only get stronger,

whether in terms of Chinese-made products coming to Europe, or

European luxury goods purchased by Chinese consumers. However,

while there was plenty of room for expansion over the last few decades,

today’s difficult economic situation has brought us closer to a zero-sum

game. The single biggest challenge for this partnership, going forward,

is trust and credibility on both sides. Europeans need to see China as

a partner and a potential engine for economic growth in the coming

years. At the same time, the Chinese need to enhance their institutional

credibility, assuring Europe (and the world) that all companies will be

treated equally in China, there will be no discrimination against foreign

players and that China will not engage in short-term economic policies.

Forty years is a short time in international diplomacy and both sides are still

in the phase of building trust. If this is done within the next 5-10 years, we will

be looking at a period of mutual growth and prosperity for both sides. There

is a lot that can done by CEIBS and its alumni, in the years ahead, to foster

the EU China relationship: academic exchange and the sharing of knowledge,

the strengthening of networks between business executives on both sides, and

providing a platform for continued dialogue and debate. These will all help to

build mutual understanding and trust. I am eager to see what comes next.

Guillaume de Colonges (GCPT14)

CEO,Carrefour,Turkey


18

As a CEIBS alumnus, I am honoured to have studied at a business school established with investments

from China and the EU. We’re also honoured that BIOSTIME is now a corporate partner for CEIBS

Centre for Globalisation of Chinese Companies. We provide a vivid case of China-French acquisition

for the research centre, and we receive advice and support from the centre’s faculty. In the future we will

deepen our collaboration with the research centre, and continue to explore the “going global” strategies

for Chinese companies through our initiatives. We hope to be able to help more of “China’s capital” and

“Europe’s resource” successfully combine and profit.

Since its inception in 2000, BIOSTIME has collaborated with French companies. It’s one of our visions

to bring premium French baby milk powder to the Chinese people. In 2013, BIOSTIME invested in

the French milk company ISM. We did this because we value the prime local resource, Normandy AOP

milk source, and because of the advanced milk processing techniques of the French company. In the

future we’d like to look further into the development potential of the investment model of “resource +

technology”, in order to inspire more Chinese companies that wish to go into Europe.

Luo Fei (EMBA 2006)

Chairman and CEO of BIOSTIME

InternationalHoldingsCoLtd

Projectalone,morethan16researchpaperswerewrittenbyfaculty

who also supervised more than 60 EU-China related research papers

by students. Over the years, CEIBS faculty have also been frequently

quoted in the media on European and/or China-EU issues. As a

result, they have helped shape public debate on topics ranging from


19

doing business in China to stagflation in Europe (see section

called“IntheMedia”).Atthesametime,CEIBShasalsobeen

ameetingplaceandplatformforleadingglobalexecutives–

many of them from Europe and China – who, as part of the

school’s International Advisory Board (IAB) meet annually

to advise school leaders on strategic issues. IAB meetings

are invariably shaped by global economic affairs and these

gatherings provide an opportunity for some of the world’s

best business minds to frankly share their views.

Only 21 years old, CEIBS has become synonymous with the

EU-China relationship. A stop at its campuses in China’s

economic and political capitals – Shanghai and Beijing – is

often on the agenda of visiting European officials. A look

back at the school’s history also shows numerous visits by

high-ranking Chinese government officials (see related story

“RememberWhen…”).CEIBS’valueisobviouslynotloston

those who recognise the importance of the Sino-European

relationship. During his term as European Commission

President, Manuel Barosso described CEIBS as“a very

successful symbol of cooperation between the EU and

China”.In2008,speakingattheEU-ChinaBusinessSummit,

When I look at the next decades of the China-EU relationship,

I would expect a significant increase in knowledge transfer from

China towards the EU. Over the years, a lot of the discussion has

been around bringing knowledge from the EU to China. I’m truly

convinced, though, that the EU can benefit from a lot more than

just economic ties and that we will see a lot more knowledge from

China coming into the EU.

Business, as well as general cross-cultural cooperation, starts with

establishing a common understanding for each other. Connecting

people, establishing relationships based on mutual trust is key to

further strengthening the relationship between China and the EU.

Institutions such as CEIBS are and will continue to be of increasing

importance in establishing strong connections.

However, maintaining cooperation is, like any relationship, hard

work. Both sides have to demonstrate that they want it. And

obviously, any good relationship needs to have a strong base of

mutual values. The challenge will be to keep on working on the

China-EU relationship when times are difficult. Especially tough

times will show if the China-EU relationship is strong enough to be

more than just economic ties. I truly hope it is.

Oliver Bruns (MBA 2006)

ManagingDirector

CoverisFlexiblesDeutschlandGMBH

Warburg,Germany


20

Konstantinos Derdemezis (GCPT15)

SouthEastEuropeExecutiveRegionalDirector

TitanCementCompanySA

Athens,Greece

In an increasingly interconnected international landscape faced with a series of acute

and impactful global challenges, it is of extreme importance that two of the main

global actors, the EU and China, further deepen their relationship and strengthen

cooperation on multiple fronts with the aim to promote peace, prosperity and

balanced growth. In spite of the progress made over the last 40 years, grave multi-

faceted risks such as climate change, terrorism, changing demographics, proliferation

of nuclear and chemical weapons, obstacles to trade and elusive sustainable

development need to be further addressed in pursuit of common development of

China, the EU and the rest of the world.

With trade remaining the primary driver of China-EU relations, stronger emphasis

could be placed on facilitating maximum access to each other’s markets and lifting

existing barriers which hinder movement of goods, capital and services. Apart from

the obvious mutual economic benefits, the EU will be able to additionally tap into

the potential of China’s growing middle class while at the same time human capital

from China may play a decisive role in mitigating the phenomenon of Europe’s aging

population. Leveraging on its learning curve, accumulated experiences and already

applied practices, the EU could transfer know-how and support in helping China

deal with the intensifying need for introducing all-inclusive social systems (e.g. social

insurance, healthcare, etc.) as well as with the Asian country’s increasing urbanisation

and the range of associated challenges.

To complement these initiatives, both sides will need business leaders who recognise

the significance of EU-China ties as well as the potential opportunities and synergies

that are ahead. For more than two decades, CEIBS has played an important role in

that regard. It will be a role that is increasingly important in the decades to come.


21

thenChinesePremierWenJiabaoendedhisspeechbysaying,“Chinawill

continue to cooperate with the European Union in the areas of education

and science. Our previous agreements have led to obvious, positive

results.TheChinaEuropeInternationalBusinessSchoolisanexampleof

this.CEIBShasbecomeanincubatorforexcellentbusinessleaders.”

TheCEIBScommunityknowsalotisexpectedofit.

“Thechallengenowis forCEIBStobuildonthesolid foundation it

has laid over the last 21 years in order to remain relevant in shaping the

next40decadesofEU-Chinaties.ItisachallengethattheentireCEIBS

communityeagerlyaccepts,” saysCEIBSVicePresident&Co-Dean

ProfessorZhangWeijiong.

Today’s Europe is challenged by an influx of refugees and economic

volatility. China is challenged by a slowdown in growth and

adjustment of the RMB, and its roller coaster stock market.

Meanwhile the entire world has a huge challenge over the coming

decades to stop global warming – and hopefully work together across

continents, nations and people.

While the European Union is not united in all political issues, along

the broad lines Europe can work in a concerted way, together with

China. They have done so in the past. Together they can lead the

world into a better environment, one with more responsible business,

and where new productive ways of cross continent collaboration

among states will be invented between China and Europe. We all live

in the same world – we are in the same boat – and the Chinese and

European governments understand that only together can we change

the world. It is the EU and China’s responsibility to act; it is also up

to us, as individuas, to take an active part in delivering practical

solutions. CEIBS, a common bridge between both sides, will be relied

on to play its role as well: providing China-specific knowledge and

training business executives who can help both China and the EU

make the changes needed that will impact all our lives.

Simon Lichtenberg (SEPC)

CEOTraytonGroup/Simon

LiFurniture

Shanghai


22

We have come a long way; the relationship between China and Europe has

become stronger over the past 40 years.

I anticipate that in the next four decades it will be even stronger. The EU is

already China’s biggest trading partner and the amount of direct investment

and tourism is ever increasing. At the same time, there is still a lot we can

learn from each other and we should use this anniversary as an opportunity

to have deeper – and also more challenging – conversations with each other.

Personally I am excited about the opportunity that China will present to

the EU, and I am looking forward to many happy interactions with friends

and potential business partners in China over the next 40 years. I am also

looking forward to seeing how CEIBS will build on the tremendous role it

has already played in supporting the EU-China relationship.

Thorsten Seeger (MBA 2005)

HeadofSME-FinancialMarkets

LloydsBankingGroup

London


23

Documents

CEIBS - The EU & China - October 2015 - Page 7