Embed Size (px)
Citation preview
China – The Growing Unknown
Societal Trends and Issues
Economy
Economic and Political Dichotomy
Chinese CommunistParty’s 90th Birthday
The Party Re-affirms Central Control
China – The Growing Unknown
Private Sector Being squeezed Out of China
China – The Growing Unknown
The Five Noes
China – The Growing Unknown
No Multi-party elections
No diversity in guiding thoughts
No separation of powers
No federal system
No privatization
Wu Bangguo – Chairman of the National Peoples Congress standing committee.
China – The Growing Unknown
“China thinks it can pick losers – it found 426 of them – and will ensure their demise.
The only exception to this rule involves Western companies with technology that Chinese champions need
China – The Growing Unknown
Was 75%
Now 33%
Multinationals Involved in China’s Wind Market
Multinationals have failed to win a central government-funded wind energy project since 2005
“The government slapped a 70% local-content requirement on foreigners and hiked tariffs on imported components.”
China – The Growing Unknown
Business Reaction
Recognise and understand that it is a threatAssess the risks to each particular businessExhaustive Due DiligenceDevelop and adhere to risk and threat mitigation plans
Outsourcing, Off-Shoring and Intelligence Gathering
Protect intellectual propertyLegal agreements may not be sufficientConsider only outsourcing non-critical componentsDo not outsource all of the process/technology, etc. to one organizationEncapsulate Intellectual Property to limit reverse engineeringConsider software disable capabilities
China – The Growing Unknown
Population – Ageing Pensions
Societal Trends and Issues
Ageing Pensions
Economic Dichotomy
10
Societal Trends and Issues
Ageing Pensions
Expectation Dichotomy
Defined Benefit Defined Contribution
Plan Risk Individual Risk
11
Societal Trends and Issues
Ageing Pensions
Societal Trends and Issues
Ageing Pensions
Freedom 55
Distant Memory?
13
Societal Trends and Issues
Ageing Pensions Countries and Companies are:
• Delaying Eligibility/Vesting
• Changing Eligibility Age
• Deferring Full Payments
• Redefining Benefits
Public Sector & Union
14
Societal Trends and Issues
Ageing Pensions
There are Other to Pensions
12% Converted to Defined Contribution in 2010
15
Societal Trends and Issues
Ageing Pensions The situation is not unique with more than 75% of all pension plans in Canada facing a deficit at the end of 2010
16
Business Reaction
Recognise and understand pension issues and obligations
Assess the risks to corporate plans (funding deficiencies, investments, investment strategies, advisors, etc.)
Develop defensive risk and threat mitigation plans
Pension Risk Management
Affordability and SustainabilityContract RevisionsTwo Tiered Pension Plans (defined benefits vs. defined contribution)Existing retirees
