UNDERSTANDING CHINA’S ECONOMIC MIRACLE AND THE 13TH FIVE-YEAR PLAN
Dr. Wang Yong, Professor, School of International Studies, Peking University; Visiting Chevalier Chair Professor, IAR, UBC
This presentation starts with a puzzle obvious to the west: Why can an “undemocratic” China achieve the economic miracle in last three decades? China’s growth is indisputable, and it has been deeply integrated into the global economy and become the second largest economy in the world. A great number of middle class emerge. The lecturer argues that the secret lies in the reforms and opening up, which are the key to understanding the success of contemporary China.
Dr. Wang Yong will give introduction of China’s reform and development objectives, strategies and implementation and key details included. He will emphasize the factors such as liberation of mind, restructuring the relationship between state and market, between state and society, a mixture of marketization, privatization and state intervention, and most important, a stable and sustainable political framework, which work together to create the Chinese development experience defined by “China model” or “Beijing consensus” by some experts. Finally, the lecture will go over the challenges Chinese economy is facing now in transformation and transition (the so-called New Normal of Chinese economy), and brief about the New 13th Five-Year Plan and its significant implications to the future of Chinese economy.
Trends & Opportunities in the Next Stage of China’s New Economic Development
MODERATOR: Jonathan Chow
PANEL: Professor Dr. Wang Yong, Dan Koldyk, Jacky Pan
Amid global economic slowdown, rising labour costs and fierce competition from other emerging markets, China’s low-cost manufacturing boom is drawing to a close. The new growth model, under the ‘new normal’ economic environment laid out two years ago during the important Third Plenum of the 18th Central Committee, will see a shift from the old model of export and investment dependent economy to a domestic consumption and services driven economy.
The rise of the middle class in China is going to continue to drive domestic consumption. Based on the government’s urbanization target, the total middle class population will reach 854 million in China’s urban areas by 2030, adding over 3oo million in the next 15 years. This drastic increase will place huge demand in goods and services, new technologies and innovations from social protection and health care systems to energy and environmental solutions.
In March 2016, the world will see the new objectives laid out in China’s 13th Five Year Plan* – the central government’s social and economic blueprint that will drive direction from the central government to provincial to municipal levels over the next 5 years. For foreign company leaders and entrepreneurs, understanding the plan spells new market and investment opportunities in the China market.
What are the sectors that we will see opportunities for Canadian companies?
How will the new growth model affect outbound and inbound foreign investments?
Why is the 13th Five Year Plan an important source for foreign companies?
What can we expect from the new 13th 5 Year Plan?
Have the targets and objectives laid out in the 12th 5 Year Plan been met?
What are the new initiatives that will affect foreign companies doing business in China?
How can Canadian enterprises take advantage of this growth?
Wisdom From The Trenches – Doing Business With China
MODERATOR: Ronald Lee
PANEL: Tommy Yuan, Allison Boulton, Shirley Wong Walker, Stephen Clarke, Shane Sondermann
China has often been described by cross border business veterans as a country with hundreds of markets. China is the 3rd largest country in the world with over 22 provinces and 600 cities with different living standards and consumer habits. So while China boasts a potential market of 1.3 billion customers and a rapidly rising middle-class with a high disposable income, doing business in China is more than just setting up an operation in Shanghai or Beijing. Even experienced multinationals such as Groupon, eBay, Home Depot and Mattel have tried and failed to cement their footing in the potentially lucrative market; but then many large and small Canadian companies are, against all odds, thriving in the complex market.
What are the top 3 reasons that companies fail in the China market?
What are the key strategies that successful companies do differently than their counterparts?
Foreign companies entering the Chinese market have focused predominantly on China’s Tier 1 cities such as Shanghai, Beijing or Guangzhou, as their entry points. What about Tier 2 and 3 cities? What are the differences and opportunities?
What are the pros and cons of establishing your own business vs finding a local partner?
What do Canadian entrepreneurs and companies need to know when working with Chinese companies?
What are some of the legal concerns?
‘Going Global’ – China’s Outbound Investment, Joint Venture and Collaboration
MODERATOR: Eddy Choong
PANEL: Wai Shao, Ling Zhang, Alice Chen, Pavel Bains
The Chinese government’s ‘Going Global’ Strategy encourages Chinese companies to raise their international competitiveness, enter foreign markets and to acquire advanced technology and innovation through direct foreign investments, joint venture partnerships and collaborations.
With the recent years of growing challenges and competition in the domestic market, Chinese companies increasingly look beyond the border to diversify their portfolio. Last year, over $102 billion was invested in 6128 overseas companies across 156 countries and regions. China is projected become the world’s biggest overseas investor by 2020. Currently, China’s accumulated overseas assets totals over $6.4 trillion.
Many of these overseas investments have been in the form of joint venture partnerships and collaborations with foreign companies. One of the high profile investments in Canada is the recent $50 million investment from Tencent in Waterloo’s Kik Mobile Messenger.
What have been the industry targets for China’s overseas investment and joint venture partnerships?
What are the new investment trends?
What are some of the examples of recent investments? And why were they chosen?
How will Canadian companies go about finding the right Chinese investors or partnerships?
IP protection has always been a big concern especially in the tech sector. What are the legal concerns foreign companies need to be aware of?
BENEFITING FROM CANADA’S RENMINBI ADVANTAGE
Dan Koldyk, Senior Researcher at Export Development Canada
As China reinforces its status as the world’s 2nd largest economy, its currency, the renminbi (RMB), continues to rise in prominence around the globe. In October of this year, the Renminbi became the world’s 4th most popular payments currency and it is now in hot pursuit of the British pound. This is a major development that promises to have important implications for Canadian companies that are doing business with China.
This presentation will focus on the rapid rise of the RMB as an international currency and why it matters to Canadian exporters. It will also address four critical questions that Canadian companies need to consider. These are:
1. Why is the world paying attention?
2. What are the main drivers behind the RMB’s global rise?
3. Why should Canadian companies get in the game?
4. How can EDC help Canada’s exporters gain a competitive edge?
Canadian Government Resources & Tools
MODERATOR: Jason Butcher
PANEL: Dan Koldyk, Lindsay Margenau, Allison Boulton, Paul Irwin
Canadian entrepreneurs and companies looking to trade or acquire outbound foreign investments from China have access to a wide range of business support services and even financing programs from the Canadian government.
The Canadian Federal government has invested millions of dollars to expand Canada’s international trade. From municipal to provincial to the Federal government, there are numerous programs and infrastructures available to support Canadian entrepreneurs and companies to go global.
What are some of these resources? And how to access them?
What kind of government funding are available for companies and entrepreneurs entering the China market?
How kind of support companies can get when they are in China?