Economy

Delegates address global and local concerns

(China Daily)
Updated: 2010-11-12 07:12

Editors note: The fourth International CEO Roundtable of Chinese and Foreign Multinational Corporations was held in Beijing, Nov 5 to 7.

This year's theme was "Promote Multinational Corporations' Investment, Strengthen Corporate Social Responsibility and Facilitate Sustainability Development."

The roundtable was a joint effort, organized by the China International Council for the Promotion of Multinational Corporations, the United Nations Development Program, the United Nations Conference on Trade and Development, the United Nations Industrial Development Organization, the United Nations Environment Program, and the United Nations Global Compact.

Zheng Wantong, CPPCC vice-chairman, chairman of the roundtable organizing committee, and president of the China International Council for the Promotion of Multinational Corporations, hosted the opening ceremony and China's Vice-Premier Zhang Dejiang gave the opening speech.

Cheng Siwei, a prominent Chinese economist, chairman of the roundtable organizing committee, and former vice-chairman of National People's Congress' standing committee, spoke on "Green China's Opportunities and Challenges" at the opening ceremony.

The UN's Resident Coordinator in China also spoke and delivered a message from UN Secretary-General Ban Ki-moon.

More than 600 senior management personnel from Chinese and foreign companies took part in the roundtable and discussions about world economic development problems.

Main sessions included forums on "Bringing In" and "Going Global" for development; low-carbon economic development and cooperation of Sino-foreign enterprises and urban investment; food and drug safety responsibility; protection of intellectual property; and private enterprises of China getting listed on the US Stock Exchange.

Participants said the conference provided a unique platform for Chinese and overseas businesses to enjoy a frank and free exchange.

Li Yizhong, minister, Ministry of Industry and Information Technology

Now, at the end of the 11th Five-Year Plan (2006-2010), we have maintained stable, rapid development in our industrial structural transformation, innovation and energy saving.

However, manufacturing costs are high because our industry consumes more energy than that of the developed countries. In addition, intellectual property rights and over-capacity are hindering industrial development.

We should adjust our industrial structure by developing new environmentally friendly, high-tech industries and further open up to foreign countries and regions by introducing more foreign capital, intellectuals, infrastructure, and experience.

Lin Zuoming, director general, China Aviation Industry Corp

Multinationals have made the largest contribution to globalization in our time. Worldwide businesses and their employees have a profound impact on the global economy, scientific development, cultural communication, politics, and diplomacy.

In addition, they push the change in the world industrial structure through mergers and acquisitions. In future, communications and cooperation will be carried out more by multinationals, which will bring benefits to human civilization.

Peter Mandelson, former deputy prime minister, United Kingdom

I have been emphasizing that an open economy is very important for the world economy. Nationalism and protectionism in the economy will not help solve any problems. I believe that China's enterprises belong not just to the country itself but also to the world.

We have to realize that China has reasonable expectations for the world economy, but we should keep pursuing liberated trade, which is cherished by the US and Europe.

Zhang Xiaoqiang, vice-director, National Development and Reform Commission

By this September, China had introduced direct foreign investment of about $1.06 trillion and had utilized $340 billion in loans.

The Chinese government has provided good development room and economic returns for foreign enterprises. And, by the end of 2009, China had 13,000 companies in 177 foreign countries and regions.

Now China is planning to lead foreign capital to areas like high-tech, environmentally friendly, new energy and modern service industries.

Wang Chao, deputy minister, Ministry of Commerce

By September 2010, China had over 700,000 foreign invested enterprises. It utilized $1 trillion in foreign capital, making it the first among developing countries for 18 consecutive years.

We also believe that with the development of Chinese investment in foreign countries, more companies and people will benefit. However, many Chinese companies still have a long way to go to become really international.

Huang Danhua, deputy director, State-owned Assets Supervision and Administration Commission

A going-global strategy is essential for China's economy.

For State-owned enterprises, going global is an important way to improve competitiveness in the international market. State-owned enterprises should have a good image in foreign countries, and should boost local economy.

Guo Ligen, vice-president, China Banking Regulatory Commission

Reforms in our financial supervision in recent years, especially after the financial crisis, are having an impact internationally.

China is an emerging economy with enough capital in its commercial banks, but it is facing a lot of pressure from increased credit demand because of the economic boom, consumerism, and urbanization.

As a result, China should establish a system centered on capital management. And it should build a modern bank supervisory network with Chinese characteristics.

David Arkless, president, Manpower Inc

We just finished a survey on employers and employees both at home and abroad, and found they have some surprising ideas. More foreigners would like to work for Chinese companies, which have a large demand for labor.

I suggest that foreign companies give employees a competitive salary and provide them with more training opportunities.

Huang Tianwen, president, Sinosteel

I'd like to share with you my opinions based on the experience of Sinosteel, on how to maintain development. We should insist on an open economy, fight all kinds of trade protectionism and maintain a fair and liberated global trade and investment system. All the people around the world should share the fruits of economic globalization and countries should respect each other's culture and traditions.

Companies have the responsibility to protect the environment and boost social development and should guarantee the rights of shareholders, employees and consumers.

Esko Aho, vice-president, Nokia

The world has 5 billion mobile users, 800 million of them in China.

This achievement is due to sufficient infrastructure, government support, liberalization of the industry and the free competition based on it, the low cost of mobile communications, and globalization.

China has given us important opportunities in globalization and we should strengthen developers in China and show our users that we have a good supervision system and laws to protect their privacy.

Zhao Guangfa, president, China Railway Construction Corporation (CRCC)

By the end of September, CRCC had built 81 permanent agencies in 42 countries and regions. And some 187 projects are still under construction, generating revenues of 170 billion yuan.

We insist that honesty come first. We also take responsibility in providing services for customers, shareholders, companies, countries and societies.

Huang Bilie, vice-president, Sinotrans

I have several opinions on foreign investment risks. We could resort to international investment consulting companies to examine the politics, economy and current situation of a destination country to prevent risks.

In addition to cooperating with local companies to share the risk, we could employ more local people and purchase materials locally.

Also we should pay attention to supervising managing personnel and prevent financial risks.

Zhang Shigang, coordinator, UNEP China Office

China's economy developed very fast over the past 20 years. But, the country is also facing serious environmental problems. The UN set many goals for economic and social development, as well as environmental protection. And China's vision now accords with that of the UN.

China's environmental agencies has made climate change their major concern. The country is dedicated in achieving sustainable development.

Edward Clarence-Smith, representative and head, United Nations Industrial Development Organization Regional Office

I do hope that China can make a vital contribution to creating environmentally-friendly, low-carbon technologies in replace of those seriously polluting the environment. Those who find the winning technologies will control the future of many of these markets.

Zhang Liying, chief engineer, State Grid

China is planning to build a powerful intellectual grid to cater to increasing energy demands. The State Grid has made some important improvements in this field.

It has built UHA communication projects which provide alternatives for some countries in solving their energy problems.

It has also built several pilot projects in major Chinese cities like Beijing and Shanghai. By the end of this year, there will be 75 recharging stations for electric vehicles around the country.

Zhi Shuping, director, General Administration of Quality Supervision, Inspection and Quarantine

The Chinese government is very concerned about food safety. In recent years, it has passed laws and regulations on food safety and special offices were established to oversee the problem.

Quality watchdogs are also focusing on this matter and we have a complete system to supervise every food production and processing chain.

We hope companies and organizations, including scientific institutions, colleges and the media join the effort to guarantee food safety.

Chen Xiaohong, vice-minister, Ministry of Health

Food and pharmaceutical companies should shoulder the responsibility of guaranteeing food and medicines.

The government always puts the safety and health of its people first and it has passed several policies, laws and regulations on food safety.

The Ministry of Health has made an effort to make sure that food safety laws and regulations are carried out.

It has also established the first national food safety standards committee.We believe that food and medicine safety will see more achievements in the future.

Wang Dongfeng, deputy director, State Administration for Industry and Commerce

The administration has focused on the food safety chain, and has guaranteed the food safety of big national events like the Shanghai World Expo and Guangzhou Asian Games.

For disaster-stricken areas like Yushu in Qinghai province, the minister started emergency food safety plans and tried to keep anyone from disturbing the food markets.

All commercial and industrial administrations in the country should be responsible for guaranteeing food safety.

Bian Zhenjia, deputy director, State Food and Drug Administration

Thanks to support from the government and companies, China's medicines have improved their quality and safety a great deal. We should develop a quality and standards system. Innovations in medical research and development, as well as better services, are encouraged.

Peter K. Ben, representative, World Health Organization

Food safety problems are not just the responsibility of governments. The main problem lies with the fact that balancing crises and profits is the basis for company decisions.

As a result, we should have powerful administrations to implement food safety regulations and create a fair environment for competitors.The World Health Organization compliments China's efforts in carrying out the law and we are calling on international organizations to join hands in combating food safety challenges.

Ma Jianping, vice-president, China Oil and Foodstuff Corporation (COFCO)

COFCO initially came up with the "full industrial chain" concept to guarantee food safety more efficiently. It focuses on every link of the food industry chain from the farm to the table, to provide safe, nutritious, healthy food for consumers. COFCO has a corporate culture of encouraging credit. It established a complete food safety control system.

We hope that companies can be responsible in guaranteeing food safety and that governments will raise the national food quality standards.

Ma Xiuhong, vice-director, CPPCC National Committee's Foreign Affairs Committee and former vice-minister of Commerce

Companies, especially multinational firms, are crucial to the economic recovery by strengthening market vitality, which is considered the micro-foundation of the global economy.

More effort is needed in improving companies' business environment, stopping all forms of protectionism, advocating trade and investment liberalization, and establishing a win-win multilateral trad system.

William Niebur, vice-president, Pioneer China and general manager, Du Pont

We support China's sustainable development, urbanization and industries, including new energy and bio-industries through its innovative technology.

We plan to lead and demonstrate the progress of China's seed industry and ensure that it develops with intensification, modernization and industrialization to rapidly achieve world-leading status.

Zhang Hongwei, president, Orient Group

The concept of inclusive growth advocated by President Hu Jintao in this year's Asia-Pacific Economic Cooperation forum is now getting a huge amount of attention, especially in developing countries.

The concept refers to eliminating the social exclusion of poor people and realizing equality of opportunities and participation. It reflects the desire for political equality, shared opportunities, and mutual benefits of developing countries.

Mike Blades, managing director, International Business Development, Standard Bank

To do business in China and be successful, one needs patience, clear objectives, sound partners, good access to decision makers, and some more patience.

Despite the cultural, ethical and language challenges that exist and are a daily occurrence, our experience says that the investment is worth it.

Liu Zhenhua, vice-chairman, National People's Congress' Internal and Judicial Affairs Committee

Because of the increasing cooperation with foreign countries, protecting Chinese companies' intellectual property (IP) is becoming a strategic issue for our central government.

We have turned to a number of measures to improve the country's IP protection, including formulating laws on trademarks, patents, copyrights, anti-unfair competition and other areas. The government has also improved the IP justice system and has increased law enforcement in infringement cases.

Liu Meng, China representative, UN Global Compact Office

The UN Global Compact (UNGC) is the symbol of social responsibility. It is a UN initiative to encourage businesses worldwide to adopt sustainable polices.

First announced by the UN secretary-general in1999, Global Compact is a principle-based framework for businesses, covering 10 principles in the areas of human rights, labor, the environment and anti-corruption. It allows companies to be brought together with UN agencies, labor groups and civil society.

Richard Ward, senior global vice-president, Baker Hughes

Corporate social responsibility means maintaining high standards, legal and financial compliance, ensuring a secure work environment, protecting the environment, developing sustainable technology and products, supporting the communities where we work, and developing a loyal workforce.

This is important to Baker Hughes because we believe investing in progress focused on social responsibility will ensure that we deliver sustainable benefits to customers, shareholders, employees, and the countries where we work.

Li Hualin, director, China National Petroleum Company (CNPC)

As a major petroleum producer and supplier, CNPC is looking at sustainable development and is devoted to balancing China's economy, environment and society.

We hope to make a contribution to people's lives by continuously providing energy through safer, effective and environmentally friendly operations.

Na Xizhi, director general, China Huaneng Group

Saving energy and actively responding to global climate changes are responsibilities companies should shoulder.

Huaneng, which is a Fortune 500 company, is one of the five largest State-owned power companies involved in investment, construction, operation and management of power generation and the production and sale of electric power. The company sticks to the idea of green development and is devoted to promoting the development of clean energy and technical innovation.

Yue Xiongfei, vice-president, Cisco Systems Inc

I am honored to introduce the social responsibilities our company has undertaken. In its commitment to a long-term vision, our company has devoted itself to establishing a medical service that suits the 21st century.

In 1995, the company was introduced to China with about 3,000 employees. We have set up cooperation with a series of public and private organizations within five years with a total investment of 20 million yuan. And, we donated $4 million to earthquake stricken Sichuan province, and have provided technical support for remote medical consultations.

Rob McBratney, senior global vice-president, Automatic Data Processing (ADP)

I want to focus on the cooperation between companies, both multinationals and small companies, in taking social responsibility. Cooperation here refers to contributing to local communities with Chinese companies. Apart from a reasonable investment, we believe that realizing a company's localization by expending more time and effort brings mutual benefits.

Charles Moore, executive director, Committee Encouraging Corporate Philanthropy

We released a report with Mckinsey (international consulting) this year in which shaping the future was considered a management strategy of the company.

Nowadays, many developing countries are increasingly productive, which means large demand for talented people. This trend will surely have some impact on companies' strategies.

Keeping an eye on the social situation is important for companies to adjust quick enough to keep up with the pace of the world.

Yogan Rasanayakam, vice-president, Westpac Banking Corp

Since its founding in 1817, our company has focused on social responsibilities related to the core value of our brand. We have hosted many related activities welcomed by our employees.

We keep long-term relations with various organizations, providing feasible proposals on environmental protection and education, affordable housing, and responding to climate change. One of our basic principles is sustainable management through which we can take risks with our clients and stakeholders together.

Yang Fujia, president, University of Nottingham

Achieving mutual understanding still has a long way to go. That's why the British prime minister said that education could build mutual understanding that leads to trust and world peace. Cultural exchanges are more important than any other thing.

Liu Changle, chairman of board of directors, Phoenix TV

In the past 10 years, China's news media have witnessed rapid development and the digital revolution has made great progress that is greatly changing our lives. We believe that in the next 10 years, China will move to a wholly new media combining the traditional and the new.

(China Daily 11/12/2010 page5)