Global China Business Meeting25-26 November 2012, Riga, Latvia

a Horasis-leadership event

Report

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

Upcoming Horasis events:

Global Arab Business Meeting Ras Al Khaimah, UAE, 9-10 December 2012

Horasis Annual Meeting Zurich, Switzerland, 22-23 January 2013

Global Russia Business Meeting Limassol, Cyprus, 14-15 April 2013

Global India Business Meeting Belfast, United Kingdom, 23-24 June 2013

Global China Business Meeting The Hague, Netherlands, 10-11 November 2013

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Global China Business Meeting25-26 November 2012, Riga, Latviaa Horasis leadership event

Co-hosts:Government of Latvia

Municipality of Riga

China Federation of Industrial Economics

Co-chairs:Nasir Ali Shah Bukhari Founder Director, Evolvence Capital, United Arab Emirates

Paul Judge President, Chartered Institute of Marketing, United Kingdom

Juris Gulbis Chief Executive Officer, Lattelecom, Latvia

Alan Hassenfeld Chairman, Hasbro, USA

Huang Nubo Chairman, Zhongkun Investment Group, China

Anil Kumar Chief Executive Officer, Ransat, United Kingdom

Lim Chow Kiat President, GIC Asset Management, Singapore

Liu Changle Chairman, Phoenix Satellite Television Holdings, Hong Kong SAR

Oki Matsumoto Chairman and Chief Executive Officer, Monex Group, Japan

Mao Zhenhua Chairman, China Chengxin Credit Management, China

Yat Siu Chief Executive Officer, Outblaze, Hong Kong SAR

Sandra Wu Chief Executive Officer, Japan Asia Group, Japan

Xu Weili Chairwomen, Touping Group Corporation, China

Zhang Weixiang President, Jianlong Holding Group Co, China

Vincent Zheng Managing Partner, Capital First Partners, China

Levin Zhu Chief Executive Officer, CICC, China

Co-organizers:

BTM Institute

China Entrepreneur Magazine

Freeport of Riga Authority

Freeport of Ventspils Authority

Strategic Partner:

Baker & McKenzie

International Chamber of Commerce

Latvian Railway

Lattelecom

Young Presidents’ Organization (YPO)

World Eminence Chinese Business Association

2012 Global China Business Meeting – the 8th annual Horasis meeting on China in a row

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The Global China Business Meeting attracted a full house

Table of Contents

Foreword 6

Reflections on the Horasis Global China Business Meeting 24

Honouring the Chinese Business Leaders of the Year 26

The 2012 Global China Business Meeting is going to start soon

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ForewordOn 25-26 November 2012, the 8th HorasisGlobal China Business Meeting took place inRiga, Latvia. The event gathered a col lectiveaudience of 400 entrepreneurs and govern -ment officials. The Meeting was organisedby Horasis in partnership with the Govern -ment of Latvia, the City of Riga, andthe China Federation of IndustrialEconomics. Informed by the outcomes ofthe reshuffle of the Chinese political leader -ship, the meeting engaged participants toprovide a holistic and timely perspective onthe future direction for China.

The Global China Business Meeting –Horasis’ flagship event on China – bringstogether eminent leaders – from China andbeyond – for an engaging discourse on thecurrent state of the economy, and to evolvea roadmap for leveraging entrepreneurshipfor growth and development. With this yearlymeeting on China, we aim to present aninterdisciplinary and systemic view of themajor economic, societal and technologicaldrivers currently at work in China and theworld. Also, participants engage in variousbusiness-to-business meetings on the side-lines of the event.

This report – which builds on the outcomeof the meeting – shall add insights on theway forward. When summing up the GlobalChina Business Meeting, this report’s pur -pose is twofold: first and foremost, its aimis to document the events and debates andto provide a comprehensive overview ofthe conversations by the business leaderspresent at the meeting. Second, the reportshall unveil the general mood in China andthe world, embedding the Global ChinaBusiness Meeting in the context of today’smost relevant debates.

The 2012 Global China Business Meetingconvened as the global economy appearedto be stalled in stagnation – the global eco -nomy is as fragile as it has ever been sincethe economic crisis began in 2008 – we arenot yet out of the danger zone. The meetingset out to highlight China’s economic futureagainst a background of profound globalchallenges. China is making an importantcontribution to the world economy – it hasbeen a source of dynamism in a very weakand hesitant global recovery. Europe and theUS are both dealing with unpre ce den ted

‘I see China as the main source ofoptimism in the global economy’Andris Berzins, President of the Republic of Latvia

Andris Berzins, President of the Republic of Latvia – ‘we want toensure a new global partnership’

Preparing for the ribbon cutting

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debt problems, the financial markets areflailing about wildly, austerity programs arebeing intensified, prices on commoditiesare soaring and consumers are highly scared.The sovereign debt crisis continues to spreadand deflation pressure will last. Gover ments,which are already living beyond their means,may struggle to get back on track throughextra public spending. Andris Berzins,President of the Republic of Latvia, saidduring the Opening reception of the GlobalChina Business Meeting that ‘– with eco no -mic prospects worsening within the OECD-world – I see China as the main source ofoptimism in the global economy.’ He alsosaid that ‘Europe takes the rise of develo pingcountries as an opportunity, and will co ope -rate closely with China and other emerging

countries to meet global challenges andestablish sustainable partnerships.’

We were honoured by the presence of theCEOs of some of the leading Chinese andglobal companies to take a forthright lookat these challenges, generating a wealth ofdiscussions, proposals, and solutions. Thegathering was joined by the following mee -ting co-chairs: Nasir Ali Shah Bukhari,Founder Direc tor, Evolvence Capital,United Arab Emira tes; Paul Judge,President, Chartered Institute of Marketing,United Kingdom; Juris Gulbis, ChiefExecutive Officer, Lattelecom, Latvia;Alan Hassenfeld, Chairman, Hasbro, USA;Huang Nubo, Chairman, Zhongkun Invest -ment Group, China; Anil Kumar, Chief

Opening plenary panel with Latvian Prime Minister Valdis Dombrovskis

Valdis Dombrovskis, Prime Minister of LatviaLu Yaohua, Executive Vice Chairman, China Federation of Industrial Economics, on globalimplications of China’s transformation

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Executive Officer, Ransat, United King dom;Lim Chow Kiat, President, GIC AssetMana gement, Singapore; Liu Changle,Chair man, Phoenix Satellite Television Hol -dings, Hong Kong SAR; Oki Matsumoto,Chairman and Chief Executive Officer,Monex Group, Japan; Mao Zhenhua,Chair man, China Chengxin Credit Manage -ment, China; Yat Siu, Chief Executive Offi -cer, Outblaze, Hong Kong SAR; Sandra Wu,Chief Exe cu tive Officer, Japan Asia Group,Japan; Xu Weili, Chairwomen, ToupingGroup Cor po ration, China; ZhangWeixiang, President, Jianlong HoldingGroup Co, China; Vincent Zheng, Mana -ging Partner, Capital First Partners, China;Levin Zhu, Chief Executive Officer, CICC,China.

Participants reached consensus that

• China is enjoying a high rate of economicgrowth as policymakers responded quicklyand forcefully to the global economiccrisis. Still, Chinese should remain vigilantand continue pursuing a favourable econo -mic environment to sustain scale and scopeof economic growth.

• China will take innovation as the maintheme and focus on transforming theeconomic development pattern at a fasterpace. Social stability and qualitative eco -nomic growth are key.

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

Nils Usakovs, Mayor of Riga, Latvia,welcomed participants during a lavish andcolourful opening ceremony held in Riga’sfamous House of Blackheads. He pointedout how Riga is engaging with China ingeneral and with some of China’s cities inparticular. He highlighted on-going projectsin the area of urban planning, logistics andsustainable energy. ‘Riga is delighted to co-host this eighth Global China BusinessMeeting,’ he told participants. ‘Riga willserve as important base for Chinese firmsto explore the Northern European market.’

‘China and Europe are committed toworking closely to promote dialogue andcooperation of the global industries,’ LuYaohua, Executive Vice Chairman, ChinaFederation of Industrial Economics, China,said during the dinner function. The funda -

‘China and Europe are committed toworking closely to promote dialogue andcooperation of the global industries’ LuYaohua, Executive Vice Chairman, China Federation of Industrial Economics, China

Vincent Zheng, Managing Partner, Capital First Partners, China, making a point during the opening plenary

Daniels Pavluts, Minister of Economics, Latvia – Latvia isgoing to link China with Northern Europe

Hu Yeshung, Ambassador of China to Latvia

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Yat Siu, Chief Executive Officer,Outblaze, Hong Kong

mentals of the Chinese economy remainstrong and, importantly, there is room toease monetary policy and implement fiscalmeasures to support domestic demand,’ hecontinued. ‘China’s rise will be peaceful,’he said. ‘The commitment to peace andharmony is deeply rooted within China’straditional culture,’ he explained. ‘In ourtime, the trend towards prosperity andglobalization is irresistible,’ Lu Yaohuaunder lined, adding that China’s status as theworld’s largest exporter and second largestimporter creates opportunities for theworld economy.

At the same function, Daniels Pavluts,Minister of Economics, Latvia, stressed that‘the Global China Business Meeting willplace Latvia as an important point linkingChina with Northern Europe.’ On Europe’scurrent economic woes, the Prime Ministersaid that ‘our approach to restoring econo -mic growth is based on austerity in theshort-term, deep reforms to prevent anyfuture crisis in the mid-term, and a long-term growth strategy based on openmarkets.’

Participants had a rare opportunity to ex -plore China’s development from a varietyof points of view. An intensive programme

of plenary sessions and boardroom dialoguediscussions were devoted to a variety ofcarefully identified themes, includingChina’s role in the new global governancesystem. Also on the agenda were sessionson selected industrial sectors, includinglogistics, financial services and energy, aswell as more conceptual themes coveringtrade and investment, entrepreneurship,branding and technology. ‘The panels high -lighted China as a new centre of globaliza -tion, and provided insights on the bestpractices in education, social responsibilityand philanthropy,’ said Huang Nubo,Chair man, Zhongkun Investment Group,China.

Participants gather prior to the opening dinner

Huang Nubo, Chairman, Zhongkun Investment Group

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Wang Xiuju, Chief ExecutiveOfficer, Huaruihuang InvestmentGuarantee Co.

Kristian Kaas Mortensen,President, Baltic Institute ofCorporate Governance, Lithuania

At the packed opening plenary, ValdisDombrovskis, Prime Minister of Latvia,said that ‘China’s development is an oppor -tunity for the world.’ He reviewed Latvia’seconomic relations with China: ‘economicand commercial relations between Chinaand Latvia have been growing steadily. Wehave to find new avenues to strengthen ourworking relationship, we need to worktogether,’ he said. ‘The 21st century is acentury of peace and development. Andpeaceful development is the only way tobring a better future for all,’ he affirmed.

Yan Heming, Chairman, China NationalShip Recycling Association, China, remarkedthat ‘the slowing world economy has a nega -tive effect on China’s industrial out put.’ ‘Theeuro zone uncertainty colours the out look forChina’s growth, serving as a re min der thatserious disruptions like cur rently in Europeare part of the operating environmentChinese businesses have to be prepared for.Recent market volatility worldwide con firmshow integrated the glo bal economy hascome,’ added Lim Chow Kiat, President,GIC Asset Management, Singapore.

Juris Gulbis, Chief Executive Officer,Lattelecom, Latvia feared that ‘the biggestrisk to China is a global recession leading toa steep fall in demand for the country’sservices and products.’ China may not bealone in this slowdown. ‘There is a moregeneral worry that the grouping of emer -ging countries known as the BRICS nations –Brazil, Russia, India, China and South Africa– has lost some of its previous momentum,’stressed Charles Tang, Chairman, Brazil-China Chamber of Commerce & Industry,Brazil. ‘If growth has slowed recently, thiscooling is welcome, as it has helped bringinflation down to a more comfortable level,’pinpointed Alan Hassenfeld, Chairman,Hasbro, USA.

China’s ability to resist inflation is strong.Recently, after a series of measures to

‘China’s development is an opportunityfor the world’Valdis Dombrovskis, Prime Minister of the Republic of Latvia

‘Recent market volatility worldwideconfirms how integrated the globaleconomy has come’ Lim Chow Kiat, President, GIC Asset Management, Singapore

‘If growth has slowed recently, thiscooling is welcome, as it has helpedbring inflation down to a morecomfortable level’ Alan Hassenfeld, Chairman, Hasbro, USA

Bilateral dialogue between Latvia and ChinaWang Jinron, Chairman, Southwest Building Materials (Group) Co.,reflecting on secrets of successful Chinese entrepreneurship

Imants Sarmulis, Chief Executive Officer, Ventspils Free Port Authority, Latvia

Yan Heming, Chairman, China National Ship RecyclingAssociation

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stabilize commodity prices by the StateCouncil were released, obvious positivereactions were apparent in the market.According to Anson Chan, Chairman,Bonds Group of Companies, Hong KongSAR, ‘domestic consumption needs now toassume an even larger role in driving growth.And that needs to happen sooner rather thanlater or tensions in the current growth pathwill become increasingly evident,’ ‘In thiscontext, I welcome that China’s 12th FiveYear Plan emphasizes the objective ofshifting toward consumption-led growth,’

said Sir Paul Judge, President, CharteredInstitute of Marketing, United Kingdom.

John Quelch, Dean, CEIBS, China notedthat although the West’s perception about

‘It is important to recall that China’sremarkable economic transformationwas not the result of happenstance. It was born out of a vision’ Mao Zhenhua, Chairman, China Chengxin Credit Management, China

Paul Judge, President, Chartered Institute of Marketing, United Kingdom makes a point during theclosing plenary whereas Yat Sui looks on

Anil Kumar, Chief Executive Officer, Ransat, United Kingdom,speaking about globalization

Süheyl Baybali, Board Member,Turkish Association of AutomotiveParts Manufacturers

Anson Chan, Chairman, BondsGroup of Companies, Hong Kong

Reception at the House of Blackheads

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China is improving, there are still miscon -cep tions. He urged Europe to strengthen itsunderstanding of China as ‘an importantstep to reduce a deficit in understanding’between China and Europe. ‘It is importantto recall that China’s remarkable economictransformation was not the result of hap -penstance. It was born out of a vision – afar-sighted strategy to open up the Chineseeconomy, to develop deeper global tradeand investment ties, and to connect with therest of the world,’ added Mao Zhenhua,Chair man, China Chengxin Credit Manage -ment, China.

In recent years, the Chinese government hasbeen concerned about transitioning out ofthe current mode of economic develop ment,

stressing that the key was to maintain fasteconomic development with an acceleratedtransition for economic development model.‘In this way, transition and development shallpromote each other,’ urged Liu Changle,Chairman, Phoenix Satellite TelevisionHoldings, Hong Kong SAR.

The global economy has not even comple te -ly recovered from the economic crisis, yetthe world must face challenges like pollutionand climate change. China’s 12th Five YearPlan sets out ambitious intentions for ad van -cing a more balanced domestic economy,dubbed by out-going Premier Wen Jiabao’scharacterization of the current economicmodel as unstable and unsustainable.‘Evidence of the seriousness of China’sstance includes its commitment over the planperiod to substantially invest in environ men -tal protection,’ said Michael A. Johnson,Chief Executive Officer, Kokoda CapitalGroup, Australia. Wang De, Chairman,Huatong New Energy Co., China, observedthat ‘the decision to refocus not just on thelevel of growth, but on the quality of growthand on how it can benefit the entire popu la -tion is the right one.’

Transition and development shall promote each other’ Liu Changle, Chairman, Phoenix Satellite TelevisionHoldings, Hong Kong SAR

Stacy Kenworthy, Chief ExecutiveOfficer, OptiGlobal, USA

Michael A. Johnson, Chief Executive Officer, Kokoda Capital Group, Australia

Juris Gulbis, Chief Executive Officer, Lattelecom, Latvia,on the world economic outlook

Sandra Wu, Chief Executive Officer, Japan Asia Group, Japan – differences in language are a common reason for a lack in execution

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Charles Tang, Chairman, Brazil-China Chamber of Commerce & Industry, Brazil, on new models of growth

‘Certainly there is anecdotal evidence ofpoor, social and environmental practice,including amongst self-declared sustain abi -lity leaders,’ revealed Wu Rongshan,Chief Executive Officer, Shengshe Sanhe TeaIndustry Co., China. Highly visible casesinclude most recently the bad working con -ditions in Apple’s main supplier, Foxconn,and the case of Sanlu Dairy which soldtainted milk that killed several children andsickened thousands more. ‘China’s success,indeed very survival, depends on its will toqualitatively transform its economy,’reckoned Wang Bingqiang, Chairman,Tianheng Chemical Fiber Co., China. Statepolicy will be crucial in driving forwardmore responsible business behavior and thegreening of investment and global valuechains. According to Zhang Xingsheng,Managing Director, The Nature Conser vancyChina, China, ‘improvements on China’ssustainability records are crucial as China’sburgeoning outward investment seekslegitimacy, access and success. ‘But it willalso be important domestically, as the stateallows seeks to harness the forces of civilregulation,’ surmised Stacy Kenworthy,Chief Executive Officer, OptiGlobal, USA.

On currencies, participants engaged in acandid and open discussion. Anil Kumar,Chief Executive Officer, Ransat, UnitedKingdom, called for a stronger and more

flexible exchange rate of the renminbi; OkiMatsumoto, Chairman and Chief Execu -tive Officer, Monex Group, Japan, addedthat a more effective liquidity and monetarymanagement might be useful. ‘Flexibledeposit and lending rates, and finally openingup the capital account will help to tacklelocal and global imbalances,’ commentedMaja Bacovic, Professor, University ofMontenegro, Montenegro. ‘Against thisbackdrop, I see no reason for the renminbinot to reach the status of an internationalreserve currency and occupy a position onpar with China’s economic size,’ concludedMaris Mancinskis, Chief Executive Offi -cer, Swedbank Latvia, Latvia.

Jason L. Ma, Founder and ChiefExecutive Officer, ThreeEQ, USA

Adnan Akfirat, President, TUCEM, Turkey

Intervention by Thomas Sevcik, Chief Executive Officer, Arthesia, Switzerland

The international media gathers to cover the welcome speeches

Mao Zhenhua, Chairman, China Chengxin Credit Management –‘China’s economic transformation was born out of a vision’

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The Global China Business Meeting also puta spotlight on China’s dynamic private sectorand the talent within, as well as the newchallenges and opportunities for foreigncompanies operating in China. ‘Successivewaves of reforms have enhanced the impor -tance of the private sector in the Chineseeconomy,’ argued He Zhenhong, Presi -dent, China Entrepreneur Magazine, China.In 2011, more than 75 percent of thecountry's industrial profits were created byprivate enterprises. Boosting the privatesector will be an effective way to raise thecountry’s manufacturing productivity,’pondered Jason L. Ma, Founder and ChiefExecutive Officer, ThreeEQ, USA. ‘At a timewhen China is striving to shift from low-endto high-end manufacturing developing theprivate sector will provide a driving forcefor innovation,’ acknowledged AdnanAkfirat, President, TUCEM, Turkey.

As China’s rapid economic growth and mass-scale urbanization drive up labour costs,manufacturers must consider shifting pro -duction inland. Xu Xiaoping, Founder,ZhenFund, China, pointed to trends thatsuggest that as China’s manufacturing movesinland, coastal regions must adapt to aservices industry. The rise of China’sservice-sector output signals that the sectorcontinues to offset slowing manufacturingactivity,’ mentioned Roger King, Memberof the Supervisory Board, Orient Overseas(Int.), Hong Kong SAR.

Participants tried to find answers to theselooming questions by highlighting the crucialrole played by innovation and creativity forlaying the foundations for sustainable growth.Rong Jianying, Secretary General, ChinaFederation of Industrial Economics, China,pointed out that ‘innovation at all levels ofeconomic activity is the key element of thenew Chinese growth model.’ Progress hasbeen impressive in many areas; for example,spending on research and development(R&D) surged to nearly 2% of GDP,making China the second country in theworld by total R&D spending. ‘Chinese firmshave to continue their quest for innovationexcellence and make innovation part of theirsuccess,’ pinpointed Henry Birdseye Weil,Professor, Sloan School of ManagementMIT, USA. He also urged Chinese firms tofocus on attracting global talent to makethis transition happen. Joachim Reidiess,

The Latvian Prime Minister receiving a gift from the Chinese delegation

Chinese and Latvian authorities gather for a group photo

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Joachim Reidiess, President, Dr. Wirth Group, Germany

Wu Rongshan, Chief ExecutiveOfficer, Shengshe Sanhe TeaIndustry Co.

President, Dr. Wirth Group, Germany, juxta -posed that ‘China’s efforts to promote R&Dneed to be mirrored by the en force ment ofintellectual property rights protec tion.’

China is now not only a key destination offoreign investment, but Chinese companieshave themselves also become major inter na -tional investors increasingly looking beyondChinese borders – Chinese outbound acqui -sitions have steadily gained momentum in thelast years. China is now the fourth largestsource of international mergers andacquisitions, accounting for around 7% ofthe world’s total. The energy sector was themost targeted area by Chinese acquirers witha volume of close $30 billion in the first 11months of 2012. Activity in the sector wasboosted by the $18.2 billion acquisition ofthe Canadian oil major Nexen by CNOOC.‘The future of outbound acquisitions looksbright for Chinese firms. With lowervaluations of potential targets in NorthAmerica and Europe there is great scopefor Chinese firms to strike major deals,’said Peter Chen, Chief Executive Officer,VOLK Flow Controls, USA. ‘Historically,Chinese firms looked at American compa -nies as targets. However, the trend is fastchanging with more and more Europeancompanies being approached by Chinesefirms looking for established brand andquality products,’ suggested PrzemyslawAleksander Schmidt, Chairman, Trigon,

Poland. German companies, in particular,are on the list of cash-rich firms – recentdeals include Putzmeister’s acquisition bySany Heavy Industry, a landmark acqui si tion.‘I see many more deals to follow,’ saidBoris Levin, Founder and ManagingPartner, Stargate Capital, Germany.

‘Leading Chinese firms have been growingrapidly outside the Chinese domestic mar -ket. They now need to protect their localvalue while simultaneously using cross-border synergies and increasing scale,’reasoned Zhao Shumin, Chairman, BlackSea Horizon Investment Holdings, China.Wayne W. Wang, Chairman, CDP Group,China, suggested that ‘Chinese executivesshould choose carefully among a range oforganizational options from outright cen -tralization to full localization and counterthe ensuing complexity by defining keyroles carefully, clustering activities in regio -nal groups, and selectively introducing acommon corporate culture.’

Key emerging economies, such as in Africaand Latin America, are becoming importantdestinations for Chinese firms investingabroad. ‘We have started to integrate globalmarkets, human resources, capital, brands,technology, and raw materials into ourexisting operations,’ believed Wang Meng,Chairman, Liya Engineering Technology,

Chairman Lu Yaohua speaking on behalf of the China Federation of Industrial Economics

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Luo Keren, Dean, Institute ofOverseas Chinese Studies, Huaqiao University

Wayne W.Wang, Chairman, CDP Group, China

‘Improvements on China’s sustainability records are crucial’ – Zhang Xingsheng, Managing Director, The Nature Conservancy China

China. ‘As Chinese firms get bigger, theyneed to start thinking about global positio -ning, and more and more, they are seeingforeign markets as more than just places totrade their products and services – they areestablishing R&D facilities, manufacturingsites and hiring local talent,’ held FaisalHoque, Founder & Chief Executive Offi -cer, BTM Corporation, USA.

During the panel on the future of capita lism,Lulu Zhou, President, Friendship AcrossFrontier, China, believed that ‘Chinese com -panies are starting to embrace and dominatethe globalization agenda.’ Yat Siu, ChiefExecutive Officer, Outblaze, Hong KongSAR, stressed that ‘globalization will beChina’s immediate move’, adding that China

has transformed from being a centre ofmanufacturing to a centre of consumption.Sandra Wu, Chief Executive Officer, JapanAsia Group, Japan, believed that – rela tiveto their global counterparts – most Chinesecompanies have only just begun the processof global integration. Execution has been abarrier so far – differences in language andculture are common reasons for a lack inexecution. Unclear accountability and ashortage of managers with internationalexperience can hinder execution as well.‘Chinese business leaders have to be sensi ti -ve to their surroundings and be able to adaptand adjust,’ worried Katarzyna Nawrot,Assistant Professor, Poznan University ofEconomics, Poland. ‘These days manyChinese firms – private or state-owned – areincreasingly staffed with smart executiveswith international vision. They know whatthey do. Many of those acquisitions are goingto be successful,’ surmised Steven Feng,Managing Partner, Sapientia Capital Partners,China.

Some Chinese firms have encountered va ri -ous difficulties with direct investment in theUS and Europe. According to Luo Keren,

‘Most Chinese companies have only justbegun the process of global integration’Sandra Wu, Chief Executive Officer, Japan Asia Group, Japan

Alan Hassenfeld, Chairman, Hasbro, USA – ‘If growth has slowedrecently, this cooling is welcome’

‘Transition and development shall promote each other’ – Liu Changle, Chairman, Phoenix Satellite Television Holdings

Annie Zhan, Chief ExecutiveOfficer, SkyBridge, China

Bob Li, Senior Research Fellow,China Institute of Strategy andManagement Research

Nils Usakovs, Mayor of Riga, welcoming participants

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Dean, Institute of Overseas Chinese Studies,Huaqiao University, China, ‘a certain lackof political trust at the governmental levelcaused to treat trade as issue of geo-politicalimportance. Some Western firms viewChinese investments with prejudice andsuspicion – hence the lack of mutual under -standing.’ Many Chinese firms are inexpe -rienced on the public relations front, andtheir investment strategies are immature.They are relative novices in the rough andtumble market economy, not savvy enoughabout regulations and insufficiently awareof risk. ‘They should do their homeworkthoroughly and take a comprehensive ap -proach,’ conveyed Luan Zhihao, GeneralManager, Buddha Water EnvironmentalTechnologies, China.

Ambitious Chinese firms want to becomebranded players in developed markets. Pane -lists reasoned what it will take to establishbrand awareness overseas and how to buildsustainable brands. Participants agreed that– relative to their global counterparts –most Chinese firms have only just begunthe process of global integration, buildingwidely acknowledged brands. ‘China has sofar come up only with a few truly inter na -tio nal brands,’ alleged Annie Zhan, ChiefExecutive Officer, SkyBridge, China. ‘WhatChina as a country in general and Chinesefirms in particular should do more is very

active promotion of its business interestsoverseas, maybe by using events like theGlobal China Business Meeting, to tell thekind of good things happening in the country,’Jacques Tourel, President, World TradeCentre Warsaw, Poland, asked for boldly.

The complexity of supply chains in China isrelatively high. ‘Wherein lies the Chineselogistics sector’s Achilles heel?’ askedAnthony Chan, Executive CommitteeMember, International Chamber ofCommerce Hong Kong, Hong Kong SAR.How can China benefit from supply chainsoffered by its global trading partners? Andhow can companies find qualified Chinesesuppliers in an environment of cost-cuttingand weak logistics infrastructure? As multi -

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Xu Weili, Chairwomen, Touping, China and Oki Matsumoto, Chairman, Monex Group, Japan

Hellen Song, General Manager, La China Capital, sharing herviews on competitiveness for long-term growth

Luan Zhihao, General Manager, BuddhaWater Environmental Technologies

Jerry Wirth, Chairman, Foreign Investors’ Councilin Latvia (FICIL)

Zdzislaw Sokal, Member of theBoard, National Bank of Poland

Anthony Chan, ExecutiveCommittee Member, InternationalChamber of Commerce

national companies expand in China andlocal firms scale up, a key challenge is todevelop and manage a sustainable supplychain in a rapidly changing economy. Lear -ning how to leverage global value chainswill not only help Chinese firms expandabroad but will also boost their standing inthe domestic market, where they competewith Multinationals,’ pinpointed Bob Li,Senior Research Fellow, China Institute ofStrategy and Management Research, China.‘Chinese firms are beginning to see that itis not just about managing operations welland reducing cost, but it also means wor kingwell with upstream and downstream part -ners,’ said Ho Punyu, Managing Partner,Wabash Investment, USA.

Financial services in China have reached aglobal level-playing field. ‘What should do -mestic and foreign firms do to thrive in thisstrategic environment?’ asked ZdzislawSokal, Member of the Board, National Bankof Poland, Poland. Timothy Beardson,Chairman, Albert Place Holdings, HongKong SAR, emphasized that the demand forbanking services, especially retail banking,mortgages and investment services is ex pec -ted to be strong. ‘One may expect mergers,takeovers, and asset sales,’ he said. ‘Our goalshould be to ensure that China’s financialsystem works to support economic growth –it should be open and innovative. It shouldensure that everyone has access to credit tohelp boost consumption, support smallerenterprises, and create jobs. Risks must bescrutinized and managed, so as not tothreaten financial stability,’ maintainedJochum Haakma, Chairman, Nether landsCouncil for Trade Promotion, The Nether -lands.

‘This meeting is a chance to know how wework here in Latvia. It is also a good oppor -tunity for Chinese firms to get to knowpotential partner firms in order to establishtheir regional subsidiaries here,’ said ArtisKampars, Chairman, Latvia China BusinessCouncil, Latvia. The event will ‘place Rigaas an important point linking China withEurope,’ summarized Leonids Loginovs,

Networking lunch – an opportunity to share ideas and insights in an informal setting.

Steve Varsano, Chairman, The Jet Buisness, USA

Nasir Ali Shah Bukhari, FounderDirector, Evolvence Capital,United Arab Emirates

Roger King, Member of the Supervisory Board, Orient Overseas, Hong Kong, gives his views on shipping

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Chief Executive Officer, Freeport of Riga,Latvia.

Announcing the 2012 Chinese BusinessLeaders of the Year, Horasis – together withour strategic partner Baker & McKenzie –celebrated three outstanding entrepreneurswho have been building and leading suc cess -ful Chinese firms: Huang Nubo, Chair man,Zhongkun Investment Group; Liu Changle,Chairman, Phoenix Satellite TelevisionHoldings; and Mao Zhenhua, Chairman,China Chengxin Credit Management. Werecognized and honoured those businessleaders as they excel in entrepreneurship,innovation and leadership. ‘The chosenleaders have decisively impacted the eco -nomic development and global integrationof China,’ said Thomas Gilles, Partner,Baker & McKenzie, Germany, who announ -ced the award winners during a specialplenary.

At the close of the meeting, a panel of busi -ness leaders called for a ‘sustainable globa li -zation’. As globalization goes deeper anddeeper, the degree of interdependencebetween countries has grown, as has theneed to cooperate for the common good.‘As the second-largest economy in theworld China is increasingly integrated intothe global economy. During the process ofglobalization, economies will certainlyaffect one another,’ said Xu Weili, Chair -women, Touping Group Corporation, China.Participants were candid about the priori -ties China must pursue. When reflecting onthe take-away ideas from the meeting, par -ticipants called for fundamental shifts inbusiness models to address the need forsustainable globalization. ‘This meeting is an

‘The panels highlighted China as a new centre of globalization, andprovided insights on the best practicesin educa tion, social responsibility andphilanthropy’ Huang Nubo, Chairman, Zhongkun Investment Group, China

Prime Minister Valdis Dombrovskis meeting with members of the Chinese delegation

Wang Shuchun, Chairwoman,Tiancheng Real Estate Development Co.

Mo Fan, Chairman, YOUDE Energy-Saving Tech Development Co.

Lim Chow Kiat, President, GIC Asset Management, Singapore –‘Recent market volatility worldwide confirms how integrated theglobal economy has come’

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opportunity to celebrate China’s pro gressand applaud the many good policy actionsbehind that progress. And, as we lookahead, the actions and policies towardssustainable globalization provide the key toa more prosperous future for China,’ saidNasir Ali Shah Bukhari, Founder Direc -tor, Evolvence Capital, United Arab Emirates.

The meeting ended on a note of optimismand called for a strong collaboration be -

tween private and public sector initia ti vesto address China’s economic future. CaiShiyin, Chief Executive Officer, DialogueIn the Dark, China, proposed a new type ofcapitalism ‘which combines state and private-sector interests.’ A key thought from themeeting was that to deliver prosperity – inChina and elsewhere – capitalism must be‘embedded in the social, environmental,political, and financial systems with whichit is intertwined,’ as Lou Marinoff, Pro -fes sor of Philosophy, The City College ofNew York, USA, put it. ‘The most impor -tant driver for taking China to its rightfulplace in the global community are sociallyresponsible economic development strate -gies,’ said Mo Fan, Chairman, YOUDEEnergy-saving Tech Development Co., China.His statement drew a round of applause.

As with the previous editions of the GlobalChina Business Meeting, delegates headedfor a closing dinner during the evening hours.An occasion to revel in newly-forged net -works and friendships, the dinner offeredfurther debates and reflections. The dinnersession was framed under the title‘Envisioning the New Silk Road’. Tradecorridors between China, Central Asia andEastern Europe carry huge economic growthpotential. Panelists examined what theprospects could be for China’s economicambitions along the ‘New Silk Road’ and

Capitalism must be embedded in the social, environmental, political,and financial systems with which it is intertwined’Lou Marinoff, Professor of Philosophy, The CityCollege of New York, USA

Cai Shiyin, Chief Executive Officer, Dialogue In the Dark, China Lou Marinoff, Professor of Philosophy, The City College of New York, hosting the panel on capitalism

Wang Xin, Chairman, YangquanMining Chemical Co.

Wolfgang Lehmacher, Managing Director, CVA, Hong Kong

Claude Be�gle, Chairman, SymbioSwiss, asking a question

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what the impact on business could be.

We at Horasis are very pleased with theresults of the 2012 Global China BusinessMeeting and the feedback we have receivedfrom participants in the event. ‘The 2012Global China Business Meeting deliveredanalysis and insights needed to address risksand opportunities and achieve durable finan -cial stability and more even, sustainableeconomic growth,’ summarized AndrisOzols, Director, Investment and Develop -ment Agency of Latvia.

On behalf of Horasis, I would like to per so -nally thank Valdis Dombrovskis, PrimeMinister of Latvia who generously agreedto act as patron of the 2012 Global ChinaBusiness Meeting. My thanks go also to theCity of Riga, the China Federation ofIndustrial Economics as well as the co-chairs, co-organizers, partners from theprivate sector and all participants. ThisGlobal China Business Meeting was aunique experience which would not havebeen possible without the dedication andenthusiasm of our friends and partners.

Rong Jianying, Secretary General, China Federation of IndustrialEconomics, thanking the Latvian government of behalf of theChinese delegation

Session host He Zhenhong, President, ChinaEntrepreneur Magazine, listening to her panelists

Huang Nubo, Chairman, Zhongkun InvestmentGroup ... the panels highlighted China as a newcentre of globalization

Fernando Freire, Member of theBoard, Aman Bank, Libya

Xie Ming, President, Luzhoulaojiao, China

Andris Ozols, Director, Investment and Development Agency of Latvia, speaking during the closing dinner

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Zhang Xiaodong, Chairman, WinhopesInvestment Co., China, pinpointed that‘Horasis has established with the GlobalChina Business Meeting a global learningplatform for Chinese firms that allows tointeract and exchange experiences withglobal entrepreneurs. As Chinese businessesglobalize and emerging markets move tocentre stage, the meeting is playing a crucialrole in helping firms from China and theworld adapt and thrive.’ ‘This platform willenable the creation of a new group of globalchampions of Chinese origin which willproduce innovations to benefit the world,’concluded Hellen Song, General Manager,La China Capital, China.

It is our hope that the meeting will conti nueto serve as an important platform for sti -mu lating thought and creative solutions.Horasis looks forward to welcoming youback to next year’s edition of the GlobalChina Business Meeting which will be heldin The Hague, The Netherlands, 10-11November 2013, as announced by HenkKool, Vice Mayor, City of The Hague andJochum Haakma, Chairman, Nether landsCouncil for Trade Promotion who also gavea preview of what delegates can expect.

Horasis looks forward to your continuedengagement and to welcoming you to the2013 Global China Business Meeting. We alsotake great pleasure to invite you to take partin our other upcoming meetings, namelythe Global Russia Business Meeting, GlobalIndia Business Meeting, Global Arab Busi -ness Meeting as well as the Horasis AnnualMeeting.

Dr. Frank-Jürgen RichterChairmanHorasis: The Global Visions Community

Faisal Hoque, Founder & Chief Executive Officer, BTM Corporation, USA, hosting a boardroom session

Chinese entrepreneurs blending with leaders from Europe and the world

Jochum Haakma, Chairman, Netherlands Council for TradePromotion and Henk Kool, Vice Mayor, City of The Hagueannouncing the 2013 Global China Business Meeting

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Matthias Heimerl, Head of Strategic Intelligence,Airbus, France

Mark Minevich, President, Going Global Ventures, USA

Exchange of gifts

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Mirjana Perko, Chairperson, InCon, Slovenia

Yang Yongqi, President, Angel Bakery Co., China

Mao Yufeng, Deputy Secretary General, China Machine Tool & ToolBuilders’ Association

The meeting opened Latvia’s attraction for investments from China John Quelch, Dean, CEIBS, China, moderating a plenary panel

Listening to the welcome speeches Exchanging business cards

The Horasis Global China Business Meetingin Riga provided a wonderful opportunityfor high-ranking global officials and promi -nent business people to get to know moreabout Latvia and enjoy our country’s greathospita li ty.

During the event, the Latvian president,prime minister, economy minister, themayor of Riga, and other high-level Latvianofficials hosted the Chinese delegation herein our city and shared their experiences, aswell as participated in a full day of paneldiscussions. Perhaps most importantly, the event allowedChinese and Latvian business people to meetface-to-face and discuss collaboration possi -bilities. Many Chinese business people metwith potential collaboration partners inLatvia and talked about how they could worktogether in the future.

My own organization, the Investment andDevelopment Agency of Latvia (LIAA), hadthe pleasure of organizing a special side eventduring the meeting – Business and Invest mentOpportunities in Latvia – where visitingdelegations could hear more about ourcountry. Hopefully the panel discussionsserved as a springboard for forging newpartnerships between China and Latvia!

In recent years, China has become an in crea -singly interesting destination for Latviancompanies. Our entrepreneurs can not onlybenefit from the booming Chinese market,but also learn from their Chinese counter -parts about how to innovate and achievetechnological progress. The Horasis GlobalChina Business Meeting provided a wonder -ful forum for these interactions, as well as aplatform for new ideas.

In addition, the event was also the settingfor fascinating discussions on many pressingissues facing the world today, from globali -zation and global management standards togreen economic growth. Everyone in atten -dance could therefore share their viewpoints,open their minds to fresh new ideas, andshape their personal outlooks. The eventoffered a chance for all of us to improveour knowledge of the world and refine ourunderstanding of global affairs.

I am incredibly thankful to Horasis forinspiring new ideas, providing the chanceto forge these new friendships, and layingthe groundwork for collaboration projectsin the future. The event was a trueinspiration to all who attended!

Andris Ozols, Director, Investment and Development Agency of Latvia

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Reflections on the Horasis Global China Business MeetingBy Andris Ozols, Director, LIAA, Latvia

Chen Jianke, Vice President, Chint Group Corporation

Yang Xiaoyan, Chairwoman,Damping and Noise ReductionMechanical Technology Co.

Aivars Taurins, Chairman,Schenker

A working session on investment opportunities

Plenary – Driving the Next Wave of Globalization

Xu Xiaoping, Founder, ZhenFund, in discussion with participants Horasis meetings – learning, sharing, shaping

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Peter Chen, Chief Executive Officer, VOLK Flow Controls, USA,sharing a light moment

The interactive nature of the panels allowed entrepreneurs tosharing challenges they should be addresses

Valentin Romanov, Executive Director, SUN Capital Partners, Russia

Liviu Lepadatu, President, Tornado Systems, Romania

Qi Gengxin, Chairman, GuangfengReal Estate Development Co.

On the sidelines of the Global China Business Meeting Latvian President Andris Berzins meeting participants during thewelcome reception

Economics Minister Daniels Pavluts moderating a boardroom sessionCommunity building – China, Latvia and the world

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Plenary panel – The Global Crisis, Reading China’s Options

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Xu Diangang, President, BeijingEnergy Efficiency Technical Co.

Andris K.Berzins, Chairman,TechHub Riga, Latvia

During a networking break

Liu Changle, Chairman, Phoenix and Mao Zhenhua, Chairman,Chengxin, with Frank-Jürgen Richter, Chairman, Horasis

Debating how to unleash China’s creative potential

In the recent years, the global economy hasbeen slowly recovering from one of the mostsevere crises in recent history, a crisis manybelieve is not over, yet. Europe’s financialsystem is in turmoil. China, however, hasbeen at the forefront of the recent econo micrebound. China’s resilience, even in thesedifficult times, is in large part due to thetremendous entrepreneurial spirit of thebusiness leaders driving its economicgrowth and development. A jury, led byBaker & McKenzie and Horasis, took theopportunity at this eighth Global China Busi -ness Meeting to recognize and honor threebusiness leaders who exemplify this spirit:

Huang Nubo is the Chairman of ZhongkunInvestment Group. Established in 1995,Zhongkun is now one of China’s most in -fluential large-scale private enterprises inthe real estate and vacation sector. Mr. Huanggraduated from Peking University and gotan MBA from China Europe InternationalBusiness School in Shanghai. In his profes -sional career, Mr. Huang started out in theCentral Propaganda Department of theChinese Communist Party before movinginto the private sector. Apart from being asuccessful business man, Mr. Huang is alsoan accomplished poet who has publishednumerous anthologies. His entrepreneurialcareer started when he printed businesscards, sold children’s toys and renovatedbuildings. After founding Zhongkun Invest -ment in 1995, his first major profit were 50 Million Yuan, merely two years later. Anastonishing achievement. Mr. Huang is alsoknown to be one of the most active donorsin China. He shows tremendous care for hiscountry’s cultural heritage. With his help,Hong village in Anhui province was saved,

restorated and eventually included in theUNESCO world heritage. One of his count -less charity activities was the donation of30 Million Yuan to promote the develop -ment of Chinese poetry and 900 Millionyuan to his alma mater, Peking University.Apart from this, he is engaged in numerouscharitable organizations.

Liu Changle is the Chairman of PhoenixSatellite Television Holdings. In 1996, Mr. Liuand Mr. Rupert Murdoch’s News Corpo ra -tion co-founded Phoenix Satellite TelevisionCompany Limited in Hong Kong. Phoenixnow operates six TV channels and has deve -loped multiple business fronts. Its mediasector has been listed on the NYSE since2011. Mr. Liu graduated from the BeijingBroadcasting Institute, now the Communi -cation University of China, where today heis also an visiting professor and doctoralsupervisor. In 2006, he received an HonoraryDoctoral Degree from the City Universityof Hong Kong in recognition of his signifi -cant contribution to learning and the well-being of society. Before the merger whicheventually would become Phoenix SatelliteTelevision, he went overseas in 1988 andinvested in oil, infrastructure and real estate

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Honouring the Chinese Business Leadersof the YearBy Thomas Gilles, Partner, Baker & McKenzie, Germany

Thomas Gilles, Partner, Baker & McKenzie announcing the Chinese Business Leaders of the Year

projects. After returning to China andfounding Todays’ Asia, his own TV company,he convinced Rupert Murdoch to form ajoint venture with him. Phoenix’ revenuessaw mind-blowing jumps in the recent yearsand there is no end in sight. Mr. Liu is alsoan active promotor of socio-cultural move -ments relating to the Chinese culturalheritage as well as religious and culturalresearch. In 2010, he was awarded the SilverBauhinia Star by the Hong Kong govern -ment for his outstanding contribution tosocial undertakings.

Mao Zhenhua is the chairman of ChinaChengxin Credit Management, CCX.Founded 20 years ago, CCX was China’sfirst national credit rating agency and hasset path for a number of other ratings com -panies that followed. In 2006, CCX set up ajoint venture with Moody’s. This year, CCXwas voted as the top 50 enterprise with mostpotential by Chinese Venture capitalists. Mr. Mao graduated from Wuhan University

with a Doctorate in Economics and obtai neda post-doctor from the China Academy ofSocial Science. Nowadays, he is the dean ofthe Institute of Economics at Renmin Uni -versity in Beijing. Mr. Mao established CCXin 1992 when he was just 28 years old. Hewanted to found a business that was “verypopular in mature markets but little knownin China” – signs of a true entrepreneur.CCX became the first licensed mainlandcredit ratings business to operate in HongKong, and Singapore is likely to be the nextstep. Apart from this, he is also known forhis enthusiasm for education and econo mics.He has granted Millions of Yuan to WuhanUniversity, Renmin University and othertertiary institutions and has co-operatedwith them in macro-economic research.Their research reports constantly receivehigh appraisals in China.

All three award winners excel inleadership, innovation, global reach, and economic performance.

The award winners

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Liu Changle, Chairman, Phoenix Satellite Television Holdings, receiving the award Acceptance speech of Mao Zhenhua, Chairman, China Chengxin Credit Management,

Xia Lingsheng with representatives of the World Eminence Chinese Business Association

Arriving for the opening dinner, through the dungeon of the House of BlackheadsWelcome Dinner

Taking notes At a boardroom panel

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The meeting was broadcasted by several TV-stations Preparing for the next panel

The closing dinner – featuring world class performers and a spectacular scenery

A capella vocal performances by the Latvian Voices, a Latvian vocal ensemble

The Global China Business Meeting offered simultaneous interpretation services

Celebrating the success of the 2012 Global China Business Meeting

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Horasis: The Global Visions CommunityThurgauerstrasse 40CH-8050 ZurichSwitzerland

phone +41 79 305 3110fax +41 44 214 6502

www.horasis.org