Company special: Anbang seeks win-win cooperation through M&As

Chinese President Xi Jinping is visiting the United States at the invitation of US President Barack Obama.

This is Xi's first state visit to the US since he became president in 2013. The visit is expected to take the China-US relations to a new level and strengthen exchanges between the two global players.

A bilateral investment agreement will be a major topic during the visit, according to media reports. The economic exchanges between China and US, the largest developing country and the largest developed country, will have a significant impact on the global economy.

Investing in US

Bilateral investment is a crucial barometer of economic cooperation between the two countries, while investment by enterprises is a major barometer of bilateral economic exchanges.

With the rapid growth of China's outbound investment, China has become a major buyer of US properties over the past decade.

By the end of 2014, Chinese investment in the US totaled $15 billion, and the figure is expected to reach $20 billion this year.

Moreover, Chinese investors are paying more attention to improving brand awareness after acquiring enterprises overseas and helping with local environmental protection, employment and community contributions.

As one of the first Chinese insurance enterprises engaging in overseas mergers and acquisitions, Anbang Insurance Group has launched operations in Europe, the Americas and Asia.

The group bought Waldorf Astoria, a landmark hotel in New York that has hosted presidents and other top US officials for decades, at a price of $1.95 billion from Hilton Worldwide Holding Inc on Oct 6 last year.

Russian President Vladimir Putin is staying at the hotel during the upcoming high-level meeting of the United Nations General Assembly.

Saudi Arabia will hold a grand National Day reception at the hotel late this month.

Embracing win-win

As the new owner of the trophy hotel, Anbang strives to inherit the renowned brand and respect the culture it represents, said Wu Xiaohui, Anbang's chairman and chief executive.

"As an iconic US hotel, Waldorf Astoria represents the glorious history and spirit of the country. We plan to keep a world-class hotel, which represents not only the top-notch experience of the Waldorf Astoria brand, but also the American culture. We also plan to renovate the two towers into luxury residential apartments with world-class amenities and finishes to reflect its culture and social status," Wu said in a speech at a job fair at Harvard University in January.

To maintain the high-quality service of the hotel, Anbang entrusted Hilton Worldwide, the former owner of the hotel, to operate the hotel for the next 100 years, demonstrating Anbang's trust in the company's ability to provide hospitality on a global scale.

Anbang also worked with the labor union to protect the hotel employees' interests, winning praise from the international media.

"It was a win-win deal for both Anbang and Hilton Worldwide. Our renovation of the project will bring a number of jobs and increase tax revenues of the US government. Anbang will also enjoy tax breaks for revenues gained from enterprises set up in the US according to tax agreements between China and the US," Wu said. The essence of business is win-win relationships, which alone guarantees sustainability, Wu said.

Anbang puts multi-winning of customers, employees and investors at the core of its business model and the first and foremost principle of the group is win-win, Wu said.

Moreover, all of Anbang's overseas acquisitions are friendly. "We will back out whenever there is any oppositions from stakeholders," Wu said.

Going global

Anbang has set an example for Chinese enterprises investing overseas and the strong momentum of Chinese enterprises has attracted broad attention from the world.

China became a net investor as its direct investment overseas reached $102.9 billion last year, according to China's Ministry of Commerce. In the next five years, the country will import products worth $10 trillion and its direct investment overseas will surpass $500 billion, said the ministry.

As one of Anbang's most important investment destinations, the US boasts great potential for cooperation with China. Moreover, the China and the US advantages are complementary, Wu said.

"The China Dream means peace, development, cooperation and win-win cooperation. The China Dream has many similarities with the American Dream," President Xi once said.

To seek new sources for economic growth, China is undergoing in-depth reform and encouraging the public to engage in innovation.

The country is also investing overseas and allocating resources worldwide.

"Great dreams need to be realized through actual strength. We must succeed in each investment," Wu said.

Anbang Insurance Group would like to seize the opportunities brought by the national strategy and embrace an even brighter future for win-win cooperation, Wu said.

zhuanti@chinadaily.com.cn

(China Daily 09/25/2015 page13)