China’s impact as a global investor; the Sting reports live from World Economic Forum 2015 in Davos

China‿s Impact as a Global Investor: Cai, Gonzalez, Dong Minzgzhu, Lin, Davies, Diamond, Shuli

China’s impact as a global investor. World Economic Forum 2015, Davos (WEF, 21/01/2015)

The Sting continues its exclusive live coverage from the World Economic Forum 2015 in Davos with a critical piece on China. Yesterday afternoon all the panelists took their seats to participate in what was to become a fresh revealing dialogue on Chinese investment around the globe.

The panelists of the session were Mr Cai Jin-Yong, Executive Vice-President and CEO of International Finance Corporation (IFC), Mr Davies Rob, Minister of Trade and Industry of South Africa, Mr Diamond Bob, Founder and CEO of Atlas Merchant Capital LLC, Mrs Dong Mingzhu, Chairperson and President of Gree Electric Apliances, Mr Gonzalez Diaz Francisco, CEO of ProMexico and last, but not least, Mr Lin Justin, Professor at Peking University. The session was moderated by Mrs Hu Shuli, Editor-in-Chief of Caixin Media, the Chinese media that sponsored the session.

The main topic of the discussion was the massive Chinese investment equivalent to 1,5 trillion dollars that is being diffused in the next years in markets around the globe. An interesting discussion then was focused on the estimation of the impact that this investment will have on the developing and developed world, showcasing the Chinese and the global point of view. The topic is considered of utmost relevance for the global state of the world.

First, it was pointed out that China is going through a major change in the past few years. From a market focusing mainly on attracting foreign capital and investment, now more and more Chinese companies are becoming export minded and they prospect investment in various markets around the globe. Further, the status quo of the past, which poses China as a major player specialised only in raw materials and minerals, has long gone. Now China is catching up with the trends of the global market and is shooting in a successful manner at manufacturing and infrastructure.

All the panelists agreed that there has been a substantial turn of the Chinese economy recently towards high quality. The President of Gree, big international Chinese company, made a very relevant quote on this one, stating that the world’s public opinion has mistakenly linked the Chinese product with poor quality standard. For Mrs Dong it is the duty of companies like hers to contemplate with that and build trust towards the global consumer with products of exceptional and reliable value. Moreover, Gree, one of the best representatives of China’s export manifesto, has already substantial experience in various export markets. Mrs Dong shared with the audience and the world her big success story in other markets, where this Chinese company is selling its brand and provides significant added value to its customers. Gree is not a me-too product and certainly does not plan to be one.

Going a step further, the panelists, right after, started discussing the impact and challenges of the gigantic wave of Chinese investment fund that is flooding the global market. Professor Lin emphasised on the fact that China is coming through an industrial transformation today. In principle it is hard for big Chinese companies that are very successful in the mainland to go abroad and adjust to challenges. However, it is happening more and more lately. Chinese companies need to adjust and localise their products and services, in order to have success in the local market, the Professor underlines. What is more, Chinese companies need to adjust and localise their mindsets. Different markets mean different cultures, different legal systems, different climate, different world. And the most ambitious Chinese companies are called today to learn this lesson very well and very fast.

Despite the difficulty that Chinese companies face by default when they go abroad, it seems that the signs of this venture are more than positive. The panelists shared numerous examples where the Chinese entrepreneurial spirit has grown to a mature level so that it does not look primarily at the short term profit but at a long lasting strategy. Mr Bond, ex-CEO of Barclays, shared with us a good number of positive examples where Chinese investors are looking into financial products in a consistent manner. They partner with local banks and they increase their profitability fast. More so, they gain the most important value, the know-how and the experience, and they bring this back to homeland China, transforming it into talent and success.

It has to be mentioned here that one of the hot topics of the panel was Africa. Mr Rob Davies, Minister of Trade and Industry of South Africa, served his role as a discussion initiator on African investment. Apparently the Chinese interest has been great in the African continent lately. However the challenges are still high. Mr Davies explained to us that Africa, suffering the long post-colonialism effects, is a difficult territory to play ball. A massive continent of 54 different countries with different cultures, history, language and legal system as well as governance is not what one should call an easy market to prospect. However, the situation is allegedly changing for good and Mr Davies welcomes investors and particular Chinese investors to sit around the negotiation table and discuss.

Consequently, a new topic was naturally born in the panel and that was how the Chinese investor is to cope with all possible investment difficulties to face. Then all stakeholders, each from his one perspective, stressed that every investor and thus the Chinese investor, if he drives on the export road, or he strives to be an international/multinational company, he absolutely needs to embrace the “contributor’s mindset”. This is the biggest entrepreneurial wisdom passed in a few moments in only one session of the World Economic Forum 2015. It means that investment, and particularly Chinese investment in another market, needs to bring significant added value to the local society; be it jobs, be it growth, be it sustainability, be it level of health and so on.

The moment the Chinese investment will apply the “contributor’s mindset”, success will be booming. In all markets, particularly in Africa, governments seek betterment from foreign investment. It is often the easiest way. Thus the Chinese company is called to come up with the strategic offer to the local market of not only producing growth but also enhancing the lives of the people, enhancing the relations of the country with the world, improving the state of the country.

Grabbing this latter thought and being mobilised by the relevant headline of WEF, “improving the state of the world”, this is what China is at the end of the day called to do; improve the state of the world with its 1.5 trillion dollars investment. For that strategy and vision is needed and the Chinese entrepreneur seems to be adopting those values pretty fast.

The world will be better, or at least more affluent to be precise, if the massive Chinese investment can be properly managed and diffused with plan and contribution.-

Stay tuned at the European Sting, the only Brussels media that effectively broke the “Brussels bubble” and made it to Davos with live critical coverage of the most important sessions of the World Economic Forum 2015.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

TTIP wins Merkel’s endorsement ahead of 2016 tough deadline

The Commission sees ‘moderate recovery’ but prospects deteriorate

Why the ECB had to clarify it caters for the entire Eurozone not just Germany?

EU accused of being too nice with Gazprom in the infamous antitrust case

EU-US to miss 2015 deadline and even lose Germany’s support in TTIP’s darkest week yet

Is a full course lunch, a new Commissioner and 2 million anti-TTIP citizens what you would call a “Fresh Start”?

ECB readies itself for extraordinary monetary measures defying Germany

Austerity lovers to put a break on Renzi’s growth vision for Europe? the Sting reports live from World Economic Forum 2015 in Davos

More billions needed to help Eurozone recover; ECB sidesteps German objections about QE

One Day in Beijing

EU signs with Canada historic trade agreement, others to follow

GREXIT final wrap-up: nobody believed Aesop’s boy who cried wolf so many times

COP21 Breaking News: “There is an ecological debt that the world needs to pay back to Africa”, French President Francois Hollande promises 2 Billion euros by 2020 from Paris

Europe united in not supporting a US attack on Syria

Migration crisis: how big a security threat it is?

Does the world have strong enough institutions to handle risks like Trump and Brexit?

Commission’s feeble response to financial benchmarks fraud

Obama turns the G20 summit into warmongering platform

The Chinese spirit

Refugee crisis: Commission proposes a new plan urging EU countries to help Italy

Entrepreneurship’s key to success showcased by a serial young entrepreneur

On European immigration: Europe’s Missing Citizens

Does the Commission subsidise a forced labour scheme in Britain?

Doctors vs. Industry 4.0: who will win?

Is Data Privacy really safe seen through Commissioner’s PRISM?

European Business Summit 2014 : The Sting Report, Day II – Business, Politics and EBS 2015

ECB to support only banks not Peoples

Half of Eurozone in deflation expecting salvation from monetary measures

Quantitative easing: how Mario can tackle low inflation in Eurozone

France fails again the exams. Kindly requested to sit in on Commission’s class

Syria: Why did the US now take the Russian offer for a truce? What next?

Will Turkey abandon the refugee deal and risk losing a bonanza of money?

YO!FEST ENGAGES 8,000 YOUNG EUROPEANS IN FUTURE OF EU

Global Citizen-Volunteer Internships

Why the 33,000 staff European Commission did not have a real contingency plan for the refugee crisis?

Microsoft’s YouthSpark: a kiss of Life to European Youth from the European Parliament

The ASEAN Community sees the light: the genesis of a new powerful economic and political bloc and EU’s big opportunity

Is a deal over EU budget possible today?

EU: Turkey to shelter Syrian refugees and turn other immigrants back in return of €3 billion

The increasing drug prices in Europe

EU Commission: Once in every 20 beef meals you eat…horse probably with drugs in it

France and Poland to block David Cameron’s plans on immigration

The world is a book and those who do not travel read only one page

WEF Davos 2016 LIVE: “Chinese economy has great potential, resilience and ample space for policy adjustment”, China’s Vice President Li Yuanchao reassures from Davos

Intel @ European Business Summit 2014: Better decisions now, the new business dashboard 

Me and China

GSMA Mobile 360: Connecting Cities, Connecting Lives, Connecting Europe

Banking Union: ECOFIN and Parliament ready to compromise

A very good morning in European markets

EU Commission challenges Berlin by proposing breakthrough legislation on banks

Advocate General ‘outlaws’ Data Retention Directive

Gloomy new statistics signify no end to Eurozone’s economic misery

Will Brexit shatter the EU or is it still too early to predict?

Why banks escape from competition rules but not pharmaceutical firms

Human rights in Brussels and in Beijing: a more balanced approach needed

The Americans are preparing for the next financial crisis

While EU Open Days 2013 discuss the 2020 strategy, Microsoft shares a glimpse of EU 2060

Paris agreed with Berlin over a loose and ineffective banking union

IMF’s Lagarde to Peoples of the world: You have to work more for the banks!

A few, or rather two, trade and economic alliances may rule our brave new world

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s