Business leaders share views on forum
During the 13th Five-Year Plan (2016-20), China is emphasizing supply-side reform and long-term prosperity brought about by economic restructuring. With the annual China Development Forum that kicks off in Beijing on Saturday, senior executives of multinational companies from a variety of sectors share their insights into the country's new five-year plan and how their companies expect to adjust or improve their strategies in China.
What business opportunities do you see as China pushes the Belt and Road Initiative? Have you participated or do you plan to participate in any projects under the initiative? How do you think infrastructure investment can contribute to global growth?
How do you expect the Chinese economy to perform this year? How would you comment on the business environment for foreign companies? Do you plan to increase investment or expand your presence in the Chinese market?
China will continue to carry out supply-side reforms this year. What do the reforms mean for business and how will you adjust your business strategy in China accordingly?
How do you think China's effort to upgrade its manufacturing capability and boost innovation will spur vitality and competitiveness of the economy? What business opportunities will likely emerge in this process?
Hans-Paul Burkner global chairman of Boston Consulting Group. [Photo provided to China Daily]
A1 The Belt and Road Initiative, proposed by President Xi Jinping in 2013, has brought numerous economic benefits to the world economy and has been a win-win solution for countries involved in the plan. The initiative has dramatically increased investments in infrastructure of countries along the route and spurred international trade. China's advanced technologies, facilities and experience in infrastructure offer new opportunities for member countries to upgrade their industries and market mechanisms. The initiative has also become a driving force for China's growing industries, including energy, information technology, finance and tourism. As one of the biggest consulting firms in the world, BCG has set up offices in many countries along the road. It helps to assess the investment risks and opportunities for China' real estate companies and financial firms who are eyeing markets along the road.
A2 China's economy will stay stable this year but we are confident about future growth. History has shown that the opening-up of the market is key to China's economic growth in the past 30 years and we think the country will continue its integration into the global economic system. We should focus more on the quality of economic growth and the reform goals in China's 13th Five-Year Plan (2016-20) rather than pursue short-term, high-speed growth. We predict that supply-side reform will help to improve the quality of economic growth this year in terms of lowering capacity, destocking, deleveraging, reducing costs and overcoming deficiencies. We also predict that foreign companies will benefit from the process, especially highly localized ones who are more adaptable in the market. We support the policymakers of Chinese companies to form professional advice on key issues such as globalization and digitalization. BCG will continue to invest in the development of technologies and professionals in China.
A3 In the first few years of China's supply side reform, we have witnessed a stable macro economy. As a powerful measure to foster economic growth, it has shifted focus from economic increments and speed to quality and structure. The reform requires government to reinforce the values of innovation, management, research and development and services. On the macroeconomic side, the budget def i cit will not expand. On the microeconomic side, enterprises should focus on innovation and human capital, while financial institutions need to control risks and apply financial tools to restructuring industries and allocating resources. The reform will also exert profound influence on the real estate, agriculture, auto and service industries. As a leading consulting firm, BCG aims to improve the ability of companies at different developmental stages. We are excited to cooperate with local enterprises and create more value for the Chinese market.
A4 We believe that manufacturing has been a pillar industry in China through the long term, regardless of the country's stages of economic transformation. The industry is indispensable for employment and economic development. China needs to upgrade its manufacturing industries, as detailed in the Made in China 2025, a plan released by the government in 2015 to transform the country from a manufacturing giant into a global manufacturing power, during the 13th Five-Year Plan (2016-20). BCG has a deep understanding of manufacturing in developed markets such as Germany and the United States.
We believe China should combine its own conditions with international experiences to improve technology, management and infrastructure of the manufacturing industry.
We believe upgrading of the manufacturing industry may improve the efficiency of China's enterprises to 25 percent and help to create new jobs. With the high quality of labor in manufacturing, and with new technologies such as robots and sensors, Chinese enterprises have many opportunities with high-end products.