Horasis China Meeting7-8 November 2016, Interlaken, Switzerland

a Horasis leadership event

Co-hosts:Bern Economic Development AgencyChina Federation of Industrial Economics

Report

Horasis is a global visions community committed to enact visions for a sustainable future (http:/www.horasis.org)

Upcoming Horasis events:

Horasis Asia Meeting Bangkok, Thailand, 27-28 November 2016

Horasis Global Meeting Cascais, Portugal, 28-29 May 2017

Horasis India Meeting Interlaken, Switzerland, 25-26 June 2017

Horasis China Meeting Sheffield, United Kingdom, 5-6 November 2017

© Horasis2016 – All rights reserved

The publication was prepared in cooperation with the University of Bern.

No part of this publication may be reproduced or transmitted in any form or by any means.

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Horasis China Meeting7-8 November 2016, Interlaken, Switzerlanda Horasis leadership event

Co-hosts:Bern Economic Development Agency

China Federation of Industrial Economics

Partner City: Shenzhen

Co-chairs:Bo Inge Andersson Chief Executive Officer, Bo Group Enterprises, Sweden

Han Benyi Chairman, Shijie Huaxia Fund, China

William Haseltine Chairman, ACCESS Health International, USA

Jiang Xirong Chairman, Da Sheng Electronic Commerce Co., China

Eliano Lodesani Chief Operating Officer, Intesa Sanpaolo, Italy

Lu Yuebing Vice Chairman of China Funds, Siguler Guff, China

William Meaney Chief Executive Officer, Iron Mountain, USA

Umberto de Pretto Secretary General, International Road Transport Union (IRU), Switzerland

Susanne Ruoff Chief Executive Officer, Swiss Post, Switzerland

Luca Schenk Chief Executive Officer, BX Berne eXchange, Switzerland

Shi Yuyou Chairman, Dianba New Energy Technology Co., China

Wu Yijian Chairman, Ginwa Investments Holding Group, China

Xu Heyi Chairman, Beijing Automotive Group, China

Zhang Hao Chairman, Xinglong Zhusongmei Commercial Center, China

William Zhang Chairman, EU-China Municipal Development Commission, China

Zhao Yiwu Chairman, Beijing Naton Technology Group, China

Co-organizers:

China Council for the Promotion of International Trade (CCPIT)

City of Interlaken

Committee 2005

Supporting Partners:

Finanz und WirtschaftInterlaken TourismJungfrau RailwaysTada Auto Parking Co., LtdUniversity of BernVictoria-Jungfrau Grand Hotel & Spa

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The Hotel Victoria-Jungfrau – venue of the 2016 Horasis China Meeting

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The 12th Horasis China Meeting took place in Interlaken

Table of Contents

Foreword 6

Summary 14

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Foreword

By Frank-Jürgen Richter, Chairman, Horasis, Switzerland

The 12th Horasis China Meeting took placein Interlaken, Switzerland over 7 – 8thNovem ber, 2016. The Bern EconomicDe velop ment Agency and the ChinaFederation of Industrial Economicsco-hosted the event, Shenzhen acted aspartner city with Vice Mayor Liu Qingshengattending and leading a delegation ofShenzhen based entrepreneurs. Further -more a group from Shanxi Province wasled by Xue Yanzhong, Chairman, ChinesePeople’s Political Consultative Conference(CPPCC) to engage in discussions.

The location of this meeting rotates annuallyand in recent years has been held in Cascais(2015), Como (2014), The Hague (2013),Riga (2012), Valencia (2011) and Luxem -burg (2010). With these meetings Horasisaims to present a systemic view of activitiesaffecting the drivers of China’s economicsuccess across all sectors. In Interlakenthere were over 300 delegates attending tohear how the interactions of political andcommercial policies combined to developChina’s present and future well-being.Within the meeting delegates from govern -ments and CEOs of global enterprisespresented their knowledge in plenaries andin panel sessions.

With the watershed Free Trade Agreement(FTA) between Switzerland and Chinawhich was finalized in 2014, bilateralcooperation between both countries hasentered a new era of strategic partnership.The FTA marks a significant economic anddiplomatic achievement for Switzerland, andhas factored into current debates within theEuropean Union as to whether a China freetrade agreement of its own should be sought.

The Swiss and Chinese negotiators under -stand that long drawn-out discussions thatare needed to ensure fair trade and toensure that third parties accept their bi-lateral logic: for example the bid for theSwiss seed and pesticide firm Syngenta by theChina National Chemical Corp (ChemChina)announced last February for US$ 43 billion.This is an important acquisition for Chinaas it faces increasing demands to raise cropyields for its population that is increasingin the near-term. Faced with an ageingrural population China must turn morerapidly to technological solutions – notonly to compensate for a lack of hands inthe fields, but also to have more effectivechemical and seed-stock combine withintelligent farming machinery to raiseyields. The EU Commissioners’ worriedabout the venture’s magnitude and itspotential to harm rivals or customers

Geng Wenbing, Ambassador of China to Switzerland, speaking on behalf of the Chinese Government

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placed the merger on hold. This seems notto be an impediment as on 31st Octoberthe EU commenced its standard Phase IIdiscussions. In the meantime, in China,ChemChina is merging with Sinochemthrough a US$ 100 billion deal which isnot expected to delay the Syngentaacquisition since Sinochem does not sellagro-products.

Swiss firms bought by Chinese investorsneed not be large – the watch maker Corumbought in 2013 had only 140 employees.But it represented a new opportunity forthe China Haidan Group to consolidate itsinvestment in Swiss-made watches, havingacquired Eterna in 2011. It strengthens itsinvestment in the luxury market as a“Made in Switzerland” brand has a certainattractiveness for buyers of luxury. Otherfirms acquired by Chinese backers are

Swissmetal Reconvilier, Dornach, andAddax Petroleum – all offer knowledgeablestaff, marketing and sales contacts, and adeep knowledge of the European markets.Skills relating to Europe are often weak inChina, and acquisition represents a speedylink into the shipping, due diligence andfinance systems long-established throughoutSwitzerland. Over 80 Chinese firms are

Xiong Meng, Executive Vice Chairman, China Federation of Industrial Economics Christoph Ammann, Minister of Economic Affairs, Canton of Bern,welcoming participants

Liu Qingsheng, Vice Mayor, City of Shenzhen, keynoting the meeting

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already in Switzerland and others are inter -ested – all persuaded by the new free tradeagreement potential. This was a big discus -sion point in this Horasis China Meeting.

Across the world, noting the magnitude ofeconomies from the IMF 2016 data, theUS comes first with a GDP of US $18.8trillion; second is China 11.3; Japan 4.4;Germany 3.5 and the UK at US $2.8trillion is the fifth largest economy.Switzerland is at 19th place (US $650billion) yet it offers an attractive invest -ment potential to global firms having agood location, infrastructures, and skilledwell-educated workers.

The agreement last year by the IMF toinclude the Chinese RMB into its basket ofcurrencies creates a more resilient invest -ment climate. The IMF designated a newSpecial Drawing Right valuation basketincluding the RMB as a fifth currencyallowing it to become a freely useablecurrency world-wide. With this comes newresponsibilities for Chinese bankers – theymust pay attention to their alleged baddebts accrued mainly by under-performingstate enterprises. The Chinese highlightthat their quality of growth is improving,evidenced by stable employment, robustwages... and reductions in the energyintensity of GDP. The latter is of impor tanceas China and other nations have ratified the2015 UN Paris Accord on Climate Changewhich will spawn new cleaner industries.The Chinese Government notes “…overthe medium term, the authorities expectgrowth to remain in the range of 6-7% ofGDP” which, they emphasised, wassustain able considering the potential forrestructuring, upgrading and convergencein less developed regions. In parallel theChina Leading Economic Index, compiledby the Chinese National Bureau of Statistics,continued to move forward, as it has donefrom April last. From this news we mightconclude the outwards investment climate

The Shenzhen delegation meeting the hosts from the Canton of Bern

Xue Yanzhong, Chairman, People’s Political ConsultativeConference (CPPCC) of Shanxi Province

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for Chinese firms remains robust, andSwitzerland might benefit.

This Horasis meeting took place while theUS voted for its next president. Thus fewventured an opinion how economies mightreact across the globe. Politicians andfinancial advisors usually follow everyannouncement of the Federal Reserve Bankthat guides the US financiers (and thus therest of the world). Although three assessors– the IMF, the World Bank and the UN –differ slightly in their estimates of GDPthey usually rank the US the first globalnation, but sometimes place the EU (as awhole) first or second, with China next.Yet above all, the attitude and inclination ofthe next US President is of great importance.We now know that Donald Trump is theUS President-elect but we will have to waituntil his 20th January inauguration to findout how he will guide the nation – and howhe will shape Washington’s policy towardsBeijing.

We know China has become well-endowedwith physical infrastructure, but it also has amassive population that is ageing and whichneeds new forms of support via robots,insurance, health care and education to fitits entire people for their future roles in its

Virtual ribbon cutting ceremony Denis Grisel, President, Bern Economic Development Agency,thanking participants

‘Interlaken is one of Switzerland’s best known cities in China’ –Urs Graf, Mayor, City of Interlaken, Switzerland

Christoph Neuhaus, Minister of Justice, Canton of Bern, on the Swiss-Chinese enhanced economic partnership

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society. All these topics were reflectedupon in the opening plenary focussing onChina and the World Economic Outlookdiscussed by Cai Suping, Deputy Chair -man, Beijing Automotive, China; ElianoLodesani, Chief Executive Officer, IntesaSanpaolo, Italy; Luca Schenk, ChiefExecutive Officer, BX Berne eXchange,Switzerland; Wu Yijian, Chairman, GinwaInvestments Holding, China; Zhang Hao,Chairman, Xinglong Zhusongmei Commer -cial Centre, China; and William Zhang,Chairman, EU-China Municipal Develop -ment Commission, China. They suggestedthere was a need for Chinese firms to fullyintegrate with global firms, to be appreciativeof globalisation, and to be efficient andeffectively move towards their goal ofMade in China. One of the very positive

changes in China’s external relationshipswas the One Road, One Belt initiativeproposed by President Xi Jinping in 2013.This is forging ahead, and the panellists werein accord, that it represented a vast changein the stance of China and would tend toopen up Central Asia as well as parts ofAfrica and stimulate Europe with its newtrade opportunities.

It was opportune that the program in clu -ded a panel on Mapping China’s Trade. Itsmembers discussed the legal implicationsacross many sectors from labour law throughto international trade. In particular, two ofthe panellists noted the very strong globaltrade-enhancing links that China hasagreed to. Andrew Crosby, ManagingDirector, International Centre for Tradeand Sustainable Development, informed usof their E15 Initiative which was aimed atstrengthening global trade and investmentthrough the 21st century. They had broughttogether 375 experts, held over 80 dialogues,and formed 15 thematic Expert groups tocreate a broad set of plans covering global

‘The entrepreneurial ecosystem is aworld where only the fittest will survive.’Wu Yijian, Chairman, Ginwa Investments Holding Group, China

Opening Dinner – Seeking a Win-Win Partnership

Susanne Ruoff, Chief Executive Officer, Swiss Post – ‘we are going to catalyze common growth’

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development and governance. Comple men -tary to his summary, Umberto de Pretto,Secretary General, International RoadTransport Union (IRU) noted the power ofinternational agreements. He informed usof a historic ratification between Chinaand the UN/TIR convention which willenter into force on 7th January 2017. Thismeans, for instance, a truck laden with Swissgoods can pass unhindered by borders andcustoms inspections to anywhere in China.The One Belt, One Road initiative is offundamental importance to this new accordand will allow Chinese trucks clear passage,not only into the Central Asian states, butalso to Europe. Mr de Pretto was adamantthat while rail or maritime links wouldalso benefit, it is only road transport thatpermits the ultimate flexibility of routingfrom source to destination.

In parallel one panel discussed how China’sdiaspora might influence China’s futuregrowth; and in another session how China’syouth might be directed to create a brighterfuture for all. This latter aspect is ratherimportant as China’s demographic futureis somewhat bleak being an ageing society.Its youth must be persuaded to worksmarter, its rural children must not beforgotten, and possibly the elderlypersuaded to work a few years longer.

Meanwhile its firms must be willing toemploy the many graduates coming fromtheir universities; otherwise they will sufferthe blight of youth unemployment sufferedby several European nations.

Banking and investment always createinter esting discussions and herein it wasnatural to discuss Switzerland’s dynamicinvestment scene and its innovations –linking both aspects to Shenzhen. ThisChinese region has long been at the fore -front of innovation and trade with the restof the world. We noted how banking ischanging with China becoming more openand how Shenzhen is benefiting through itslinks with the stock markets in Shanghaiand also via bi-lateral relations with theHong Kong bourse.

The developments supporting the ChineseOne Belt, One Road Initiative was thesubject of the after-lunch plenary.Umberto de Pretto emphasised theUN/TIR accord with China suggestingthat the on-paper ratification will indeedprompt far greater Chinese trade influenceacross Central Asia and beyond. This pointwas reinforced by William Meaney,Chief Executive Officer, Iron Mountain,USA, who strongly supported Free TradeAgreements (noting the benefits of the

William Meaney, Chief Executive Officer, Iron Mountain, USA, making a point Christian Etter, Federal Council Delegate for Trade Agreements –‘the Swiss-China FTA is a success story’

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Swiss-China FTA which was in operation);and Susanne Ruoff, Chief ExecutiveOfficer, Swiss Post, reminded us of theInternational Postal Union that permittedSwiss Post to be an integral part of postalsystems of the world, and that the Chinaaccord with the UN/TIR system furtherenabled Swiss Post to do its job. Shi Yuyou, Chairman, Dianba New EnergyTechnology Company, China, noted howtransport has contributed to historically highpollutions levels, but that new transportvehicles and electricity generation machineryimports had benefitted China, while LuYuebing, Vice Chairman, Siguler Guff,China, suggested that swappable batteriescould be the way forward, noting ex peri -ments in Berlin. Jiang Xirong, Chairman,Da Sheng Electronic Commerce Co, China,explained how the Internet is having a greateffect almost minute by minute, but thatregulation needs to be maintained as noveltrades are created.

Following on, panels discussed Chineseglobalisation; its increasing digitalisationmoving towards the Internet of Things;inwards investment in China; and its greenrevolution. Such developments at scale alsoadvance Chinese education systems, itscapital markets, and the increasingpropensity for Chinese brands to be boughtin China and overseas – all of which boostthe profitable private sectors.

Drawing these panels to a close was a plenarydiscussing growth, the global trade slow -down, and how the Chinese New Normalwould consolidate Chinese progress andwealth development in the future. Bo IngeAndersson, Chief Executive Officer, BoGroup Enterprises, Sweden, noted how farChina still has to go to reach the car owner -ship rate of the US, implying the need toexploit efficiency gains for engines as wellas greater use of e-vehicles. Han Benyi,Chairman, Shijie Huaxi Fund, Chinarecalled the New Normal and emphasisedits pervasive strength with respect tocreativity and innovation. Yet that futuremust be embraced carefully, suggestedZhao Yiwu, Chairman, Bejing NatonTechnology Group, China. He noted thatas the present Chinese GDP growth wasslowing managers must watchfullyconsider their development plans to con -

‘Postal enterprises today must act as a network in order to fulfil customerneeds. With Swiss companies doublingthe number of goods shipped fromChina to Switzerland every year, a direct connection is needed. Susanne Ruoff, Chief Executive Officer, Swiss Post, Switzerland

Vincent Zheng, Managing Partner,Capital First Partners, China

Liu Yongli, Deputy Secretary-General, Beijing Association of Development Zones

Political leaders and entrepreneurs from Shenzhen portray the cities development initiatives

serve resources. Yet William Haseltine,Chairman, ACCESS Health International,USA, stressed that there was no ‘New’normal, but only a continuum of change…we must embrace changes past andpredicted. The years of the Asian Tigershad finished and now the Central Asiannations, in parallel with China, will cometo the forefront.

This program was the 12th in a seriesfocused on China. During the final dinnerSir Nigel Knowles, Chairman, SheffieldCity Region, United Kingdom, announcedthe next Horasis China Meeting would beheld in Sheffield over 5-6th November 2017.

It is our hope that the Horasis China Meetingwill continue to serve as a bridge throughwhich China will build stronger links withits global trading partners. We welcome youback to next year’s edition of the meeting.

‘There is no ‘New’ normal, but only a continuum of change… we mustembrace changes past and predicted.’ William Haseltine, Chairman, ACCESS Health International, USA

Zhu Shunhua, President, Shenzhen Watch & Clock Association

Liu Qingsheng, Vice Mayor of Shenzhen and Christoph Ammann,Minister of Economic Affairs of Bern, exchanging gifts

Nigel Knowles, Chairman, Sheffield City Region, United Kingdom,announcing the 2017 Horasis China Meeting

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Frank-Jü� rgen Richter, Chairman, Horasis, reflecting on the new China context

Summary

By Harley Krohmer, Professor, University of Bern, Switzerland

In the opening reception, ChristophAmmann, Minister of Economic Affairsand Member of the Government of theCanton of Bern in Switzerland, welcomedparticipants of the Horasis China Meeting.He emphasized, that the conference wouldlead to a better understanding and moreexchange between the economies and thecultures of China and Switzerland.Christian Etter, Federal Council Dele -gate for Trade Agreements in Switzerlandalso saw the conference as a great chanceto discover new opportunities for Chinese-Swiss cooperation.

Geng Wenbing, Ambassador of China toSwitzerland, emphasized that the meetingwould be a great platform for strengtheningthe Chinese-Swiss cooperation. He high -lighted that China has a large potential as acountry. And he was sure that the Chinese-Swiss partnership will become better anddeeper. In his opinion, every participant ofthe conference had something to sharewith others and could contribute to thispartnership.

The Minister of Justice of the Canton ofBern, Christoph Neuhaus, welcomedthe opportunity to co-host the meeting. Hethen gave an insight into the history of thediplomatic relationships between Switzer -land and China that were first established

in 1950, and then reinforced in 2014, withthe FTA (Free Trade Agreement) and theAgreement on Labour and Employment.He emphasized the importance of therelationship between China and the Cantonof Bern, wishing all the success for theircooperation. He also saw the movementtowards a higher standard of life as a commonobjective that connects both countriestoday and in the future.

Liu Qingsheng, Vice Mayor of the Cityof Shenzhen agreed with Swiss PresidentJohann Schneider-Ammann who visitedChina earlier in 2016. “The strategicpartnership between China and Switzerlandis very important” he said. Furthermore,Xiong Meng, Executive Vice Chairmanof the China Federation of Industrial Eco -nomics, talked about the structural changesof the Chinese economy, high lighting the factthat trade volumes increased significantlyduring the last 10 years and that China “isthe first largest exporting country forSwitzerland in Asia, and the third largest inthe world.” He also emphasized that Chinais actively attracting foreign direct invest -ment. Concerning energy efficiency, heemphasized that China can learn from

‘The Horasis China Meeting will leadto a better understanding and moreexchange between the economies andthe cultures of China and Switzerland.’Christoph Ammann, Minister of Economic Affairs,Canton of Bern, Switzerland

‘The strategic partnership between Chinaand Switzerland is very important.’Liu Qingsheng, Vice Mayor, City of Shenzhen

Harley Krohmer, Professor, University of Bern, Switzerland

Hansruedi Wandfluh, President,Wandfluh AG, Switzerland

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Zhang Hao, Chairman, XinglongZhusongmei Commercial Center

Luca Schenk, Chief Executive Officer,BX Berne eXchange, Switzerland

Switzerland and mentioned his hope thatthe two countries will complement eachother in the future.

China and World Economic OutlookThe aim of the Opening Plenary was tohighlight the actual risks of the globalagenda as a result of increasing connectivityand external shocks. In this context, Chinahas to play a coordinator role to positivelyand actively achieve balance. Cai Suping,Vice Chairman, Beijing Automotive Group,China, said that the national focus onrenewable resources is captured in a newpolicy, which dictates a percentage ofelectric cars putting so pressurising Westerncompetitors. Most of all, because Chinatries to attract the most talented peoplefrom all over the world to push forward itstechnology. Another example that showsChina’s fast technological development

was given by Eliano Lodesani, ChiefOperating Officer, Intesa Sanpaolo, Italy.He mentioned that Chinese school childrenoften did not now know what a standardphone was because they are only used tosmart phones. While this story was fun hecontinued, noting “Chinese entrepreneursnot only have to be innovative but they needto be disruptive.” This is only possible,according to Wu Yijian, Chairman, GinwaInvestments Holding Group, China, by theright investments sharing the knowledge ofentrepreneurs from over the whole world– a world where only the fittest will survive.“The Chinese economy seems to haveadapted quite well to this challenge” saidZhang Hao, Chairman, XinglongZhusongmei Commercial Center, China,adding “China will play an extensive role inthe process of global exchange to improvethe state of the world.”

‘China can learn from Switzerland.The two countries will complementeach other in the future.’Xiong Meng, Executive Vice Chairman, China Federation of Industrial Economics

‘Chinese entrepreneurs not only haveto be innovative but they need to bedisruptive.’ Eliano Lodesani, Chief Operating Officer, Intesa Sanpaolo, Italy

Listening to the welcome speeches

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China’s role in Europe could be essentialfor the future of human mankind. Due toEurope’s famous brands there is a greatpossibility for cooperation. “However, toreally make this happen Europe has to getcloser to China and vice versa by improvinglogistic services” opined William Zhang,Chairman, EU-China Municipal Develop -ment Commission. China has to be respectedand in turn respect other countries. LucaSchenk, Chief Executive Officer, BXBerne eXchange, Switzerland, mentionedthat the Bernese stock exchange is veryeager to invite Chinese companies to usetheir platform and emphasized that coopera -tion between Switzerland and China couldbe very fruitful.

One Belt, One Road: Catalyzing Common GrowthThe One Belt, One Road initiative is adevelopment strategy that focuses onconnectivity and cooperation amongcountries primarily in Eurasia. Following

the “Silk Road” mind-set established over2,000 years ago; this new initiative willallow the freer movement of capital, goods,people and ideas with the establishment ofan intercontinentally connected infra struc -ture-network. Participants of the HorasisChina Meeting discussed what Beijing istrying to achieve with this New Silk Road.They are also reflected on the potentialbenefits to Eurasia.

According to Umberto de Pretto, Secre -tary General, International Road TransportUnion (IRU), Switzerland, the main advan -tage of One Belt, One Road is that theinitiative allows road transport to becomemore efficient with the simplification ofcustoms legislation, thus bringing progress,prosperity and greater peace to CentralAsian regions, with freight and peoplestreams flowing from the East to the Westand vice-versa. Challenging the thoughts of

‘China’s role in Europe could beessential for the future of humanmankind.’ William Zhang, Chairman, EU-China MunicipalDevelopment Commission, China

‘The national focus on renewableresources is captured in a new policy,which dictates a percentage of electriccars putting so pressurising Westerncompetitors.’ Cai Suping, Vice Chairman, Beijing Automotive Group, China

Iurii Seniuk, Chief ExecutiveOfficer, Global Strategy Centre,Ukraine

Gilles Frô�té, Managing Partner,Frô�té� & Partner, Switzerland

Meeting co-chair Eliano Lodesani, Chief Operating Officer, Intesa Sanpaolo, Italy, about technological disruption

Wu Yijian, Chairman, Ginwa Investments Holding – Chinesefirms to remain competitive in a very cost driven environment

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Umberto de Pretto, William Meaney,Chief Executive Officer, Iron Mountain,USA, warned about the negative aspects ofglobalization. He sees One Belt, One Roadas the “Ultimate in terms of free trade”,accelerating the free movement of goodsand reducing friction amongst countries.However, he fears that politicians are notprepared for the fact that the momentummight further fall towards China’s side asit produces (or should we say at present‘assembles’) much more efficiently. Withyouth unemployment high in Europe, theremight be a rise of populism as people feelthat politicians are not honest about theimpact on free trade on regular workers.

Jiang Xirong, Chairman, Da ShengElectronic Commerce Co., China, proposedthat benefits of innovation should be sharedamongst all members of the society, and allcountries along the New Silk Road. With

the greater use of the Internet, knowledgeand culture can be shared using businesscontent as communication means.According to Shi Yuyou, Chairman, DianbaNew Energy Technology Co., China, allnations can benefit from the success ofChinese entrepreneurship.

Susanne Ruoff, Chief Executive Officer,Swiss Post, Switzerland, demonstrated thatpostal enterprises today must act as a net -work in order to fulfil customer needs.With Swiss companies doubling the numberof goods shipped from China to Switzerlandevery year, a direct connection is needed.However, only a collaborative dialoguethat includes all relevant stakeholders willguarantee the availability of an end-to-enddelivery system, able to operate within agiven time-frame, providing a guaranteedlevel of quality at a reasonable price.

Lu Yuebing, Vice Chairman of ChinaFunds, Siguler Guff, China, gave insightsinto how companies can enter China anduse-up excessive Chinese productioncapacities in order to scale up production.Position of China should be used toformulate integrative strategies to bringcompanies in, build up brand awareness,scale up production and thus bring down

‘The main advantage of One Belt, One Road is that the initiative allowsroad transport to become more efficientwith the simplification of customslegislation.’Umberto de Pretto, Secretary General, InternationalRoad Transport Union (IRU), Switzerland

Gao Shengyuan, Governor, Futian District of Shenzhen

Alexander Batchvarov, ManagingDirector, Merrill Lynch, UnitedKingdom

William Meaney in conversation with Susanne Ruoff William Zhang, Chairman, EU-China Municipal DevelopmentCommission, speaking about China’s trade with Europe

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costs. However, China should take the leadand innovate rather than produce.Alexander Wan, Senior Advisor, ChinaDaily Asia Pacific, Hong Kong, noted thehistoric transformation from China’splanned economy to a market economy.Now, “electronic transportation systemsare going to be introduced, bringingefficiency to the New Silk Road” he said.

Investing in SwitzerlandDespite Europe’s current economic woes,Swiss economy is expected to grow in theyears to come. How does the countriesinvestment landscape look like? How canSwitzerland serve as hub for Chineseinvestments?

Thomas Bohn, Managing Director,Greater Geneva Bern Area, Switzerland,believed that Switzerland is one of the mostinnovative and competitive country in theworld. Political, economic and financialsystems in Switzerland are stable and there -fore in future there is a good opportunityto intensify the cooperation between Chinaand Switzerland. Jean-Philippe Devaux,Director, Bern Eco nomic DevelopmentAgency, Switzerland, recognized theexcellent ongoing collabo ra tion betweenSwitzerland and China. Switzerland hasadvantages over other European playersowing to its different languages, its highlyeducated workforce and its geo-location,being embedded in the heart of Europe. Ge Ming, Vice Chairman, China M&AAssociation, predicted that food will be themedicine of the future and the society mustbe focused in its health system. The Swisscompany Nestlé is a good example forcompetitive excellence in the food sector.

To be successful in global markets, asChristoph Gisler, Chairman, Fontavis,Switzerland, put it, corporations have tostay flexible and they have to make use oflocal networks, especially in China. ManySwiss companies are struggling in theChinese market, not only because of the

Shi Yuyou, Chairman, Dianba New Energy Technology Co., one of the meeting co-chairs

Ge Ming, Vice Chairman, China M&A Association

Jean-Philippe Devaux, Director,Bern Economic Development Agency

Umberto de Pretto, Secretary General, International Road Transport Union – One Belt One Road is central to global trade

Thomas Bohn, Managing Director, Greater Geneva Bern Area, chairing the panel ‘Investing in Switzerland’

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language, but also because of differences ofvalues. In fact, it is hard to place the rightproduct at the right place – everything hasto be improved. According to Li Jinyan,General Manager, Jin Shang Yi Kang TradingCo., China, about one million Chinesetourists come to Switzerland every year.Moreover half of the students in Europeare from China. Chinese people are verywell educated. Switzerland could make useof their know-how. Rudolf Minsch,Deputy Chairman and Chief Economist,economiesuisse, further stressed thatSwitzerland is a good place for Chinese firms,as companies come to invest when the focusis on high quality luxury products.

Andreas Rickenbacher, Chairman,Andreas Rickenbacher Management AG,Switzerland, outlined that Switzerlanddoesn’t have other ingredients to marketthan innovation, because Switzerland doesn’thave possess many natural resources.Probably that’s the reason why the countryis rather innovative – famous Swiss brandsinclude Nestlé, Novartis, Credit Suisse,UBS, Swatch, Richemont, and Rolex,amongst others. Tuck Seng Low,Memberof the Executive Board, Swiss-Asian Chamberof Commerce, Switzerland, highlightedSwitzerland’s competitive excellence is in

logistics, engineering, chemistry, and food.Moreover, the country is incredibly open-minded.

Spotlight on ShenzhenShenzhen is one of the fastest growingcities in the world. Shenzhen’s success canbe attributed to a vibrant economy madepossible by rapid foreign investment pro -cesses, modern industrial infrastructure, andprescient economic policies. The sessionabout Shenzhen, chaired by Zhu Shunhua,President, Shenzhen Watch & ClockAssociation, China, focused on under stan -ding the lessons learnt and the emergingtrends in China’s richest city.

Alexander Wan, Senior Advisor, China Daily Asia Pacific, commenting on Beijing’s ‘One Belt, One Road’ initiative

Jiang Xirong, Chairman, Da Sheng Electronic Commerce Co.,emphasizing the benefits of the ‘One Road, One Belt’ initiative

Li Jinyan, General Manager, Jin Shang Yi Kang Trading Co.

Christoph Gisler, Chairman,Fontavis, Switzerland

Lu Yuebing, Vice Chairman, Siguler Guff, China, on the New Silk Road

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The discussion began with general facts andinsights of Shenzhen. Shenzhen is located bythe South China Sea and over three decadesit had only been a small town with a smallpopulation. Nowadays, it is a metro politancity and an economic centre, hosting oneof the major hubs of China. “Shenzhenencourages young people to become entre -preneur and supports innovation, as it aimsto become leading in the market” said BaoYu, Founder, Green China Lab, China.Shenzhen keeps its energy consumption tothe minimum compared to other Chinesecities. Jiao Yi, Assistant Secretary-General,Shenzhen Association of Medical Devices,China, highlighted that the exports are onthe rise, especially for medical equipmentand Shenzhen is a core city for medicalequipment, creating many innovativeproducts. Within Shenzhen there is thecapability to make and develop medicalequipment, like high-tech X-Ray machines.It has several advantages enabling medical

products which are very high-end to beupdated very quickly before being exportedto Europe and the US.

Florian Schmied, Chief Executive Officer,Euro Sino Invest Group, Germany, seesShenzhen as the most innovative city notonly in China but also in the world. As he isrunning a family company with 700 years ofhistory, he is always seeking for innovationand ideas on which innovation will surf thenext wave. Since Shenzhen profits from lowcosts for innovation yielding high added-value products he perceives Shenzhen as aninnovation driver to consolidate supplychains. Also Zhu Shunhua confirmed thatShenzhen has brought a lot of opportunitieseven for non-Chinese firms and highlightsits great potential. Ding Lining, ChiefExecutive Officer, DongGuang LiningInvestment Company, China, believed thatShenzhen has a credible mix of know-how,people and opportunities. Sun Yan Yan,President, Shenzhen Tianmeiyuan TradingCo., China, stressed her hope for collabo ra -tion with Swiss firms to enlarge herproduct lines.

Liu Qingsheng, Vice Mayor, City ofShenzhen, sees it as government’s respon -si bility to understand how the younger

‘While restructuring and reinvigoratingtraditional industries, Shanxi Provincehas invested in new industries. Our economy is doing very well.’Xue Yanzhong, Chairman, Chinese People’s PoliticalConsultative Conference (CPPCC) of Shanxi Province

Rudolf Minsch, Deputy Chairman and ChiefEconomist, economiesuisse

Tuck Seng Low, Member of theExecutive Board, Swiss-AsianChamber of Commerce

Working together to improve China’s trade with the worldJiao Yi, Assistant Secretary-General, Shenzhen Association of Medical Devices

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generation will be enabled. Also to under -stand how the government can keep theentrepreneurial spirit alive to guarantee abright future. Shenzhen depends on an openand innovative mind, driving the growth.Now Shenzhen’s growth is a pilot for otherChinese cities to copy as an inspiration onhow to lead.

Leading Global InnovationChina is investing heavily in research anddevelopment and rapidly increasing its high-tech output. How to create an ecosystemthat nurtures start-ups? How to ensure thatinnovation increases corporate perfor mance?China has proven that it is already inno -vative in many aspects. “Chinese entre -preneurs are generally very quick to adaptto new ideas. And If we want the world togrow, we need China to be innovative,” saidTomas Casas i Klett, Professor, Univer -sity of St. Gallen, Switzerland. Stan Fung,Managing Director, FarSight Ventures,USA, provided evidence that China hassuccessful and very innovative companies,like Alibaba und Huawei. But the transitionof old-school business to new innovativeones is a real problem. According toRaymond Cron, Chief Executive Officer,Switzerland Innovation, innovation is

clearly a top priority; however it is wellpromoted through deregulation. China hasa very good program in place for innova -tion, which is key to stimulate growth andhas parallels with Switzerland.

Tomas Casas i Klett, Professor, University of St. Gallen, on global innovation Cai Suping, Deputy Chairman, Beijing Automotive, on China’s economic outlook

Andreas Rickenbacher, Chairman, Andreas RickenbacherManagement AG

Jan Siemons, Chairman,International Trade & InvestmentCenter, The Netherlands

Community building at the Horasis China Meeting

21

Zhao Yiwu, Chairman, Beijing NatonTechnology Group, China, wasn’t sure thatChina is going to be a powerhouse ofinnovation. He expressed his concerns thatChinese firms will be not able to manage tocommercialise products in an innovative way.China is way behind western competitorsand communication and exchange ofknowledge and know-how will be crucialfor their growth. Without stimulation thegrowth it will take a long, long time.Katharina Fromm, Vice President, Swiss

National Research Council, argued that thecommunication possibilities in Europe arehigher than in China, which is importantfor innovation. Also in Europe there is thepossibility to start science research projectswithout any goal to apply it in a commercialway. And at the end, these findings still endup being used for commercial value. StacyKenworthy, Chief Executive Officer,HellaStorm, USA, argued that China hasalready proven many times that they areinnovative, but it also depends as what youdefine as innovation. Changing to differentbusiness models is happening, and if youlook very closely, you even find technicalinnovation.

Preparing for the Next DisruptionsIn this session, led by Alastair Campbel,Chairman, Bridger, Hong Kong, partici pantswere asked to share their view on the globalgeopolitical and economic environment.The panellists provided their insights intochallenges and opportunities arising fromthe ongoing disruptive changes and theirimpact on business and China.

Richard Li, Managing Partner, SuccessMark, Hong Kong, highlighted trends inChina’s current investment activities. The

‘In the future the Chinese should focuson the quality of life and their culturalpursuits, which would enhance a furthergrowth of China in the next decades.’Zhao Yiwu, Chairman, Beijing Naton Technology Group, China

Zhao Yiwu, Chairman, Beijing Naton Technology Group, about China’s New Normal

Florian Schmied, Chief ExecutiveOfficer, Euro Sino Invest Group,Germany

Bao Yu, Founder, Green China Lab

Katharina Fromm, Vice President, Swiss National Research Council

Stacy Kenworthy, Chief Executive Officer,HellaStorm, USA

Alastair Campbel, Chairman, Bridger, Hong Kong,hosting the panel on economic disruptions

22

direction of the flow of funds has changed;there currently is a shift in the direction oflarge investments, flowing from the East tothe West rather than from the West to theEast. This was proven by increasing invest -ments made by Chinese companies inSwitzerland and Europe. Feng Leiming,Secretary General, Tianjin Institute forInternational Development Studies, China,pointed out, that China is still a very goodplace for international companies to investin, as political and legal stability is high, agood infrastructure is available, the marketfor investments is opening and the establish -ment of special trade zones is a top priorityof politicians. However, this demand willlikely increase the price of raw materials,land and labour with China already facingconstraints imposed by the environment.

Edgar Bullecer, Co-Founder and Mana -ging Trustee, The Paglas Group, Philippinesbrought up trends in smaller countries thatlead to the shift of the economic centre ofgravity from the United States to China andAsia. New leaders question the relation -ships with the West and start building uprelationships with nearby partners. He hascalled for better relationships amongst allcountries in order to sustain peace and alloweach country to benefit from globalization.

Discussing the issue of extreme poverty,Eugen Brand, former Director General,ATD Fourth World, stated that there is a linkbetween poverty and extreme poverty.People living in extreme poverty face totalinsecurity in every aspect of their life, lossof autonomy and loss of representation: itreally is a downward spiral. Fearing povertyas the killer of people, innovation, ideas andpotential, he called for a broad inter natio -nal dialogue. Matthias Roebel, ChiefExecutive Officer, Ming Labs, Germany,said, that “China is a source of ongoingdisruption.” International cooperation hasenabled China to benefit from a veryinteresting mix of cultures and this hasgenerated endless constructive possi bili ties.For established companies, the rise ofChina has led to the need to rethink theirbasic business model. “However, in orderto benefit even more, Chinese firms mustunderstand the global market and barriersand borders must be broken down” asYuan Mingli, Co-founder and ChiefTechnology Officer, Caiyunapp.com,China, put it.

Chitra Narayanan, Associate Fellow,Geneva Centre for Security Policy, sharedher views and experience on regulation andbureaucracy. Embracing and praising Digital

Sun Yan Yan, President, Shenzhen Tianmeiyuan Trading Co.

Raymond Cron, Chief ExecutiveOfficer, Switzerland Innovation

Eugen Brand, Director General (ret.), ATD Fourth WorldFeng Leiming, Secretary General, Tianjin Institutefor International Development Studies

Edgar Bullecer, Co-Founder and Managing Trustee,The Paglas Group, Philippines

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Development for the opportunities itcreates to build a better world, she discussedthreats arising from the potential misuse ofnew technologies, calling for an efficientmanagement of digital innovation by thegovernment. China’s ability to managelegislation in such a manner was de ter mi nedas very impressive and a competitiveadvantage. Focusing on geopoliticalchanges, Ninel Seniuk, Professor,MGIMO University, Russia, introducedchallenges and tensions that China andother large countries face today. She statedthat the ongoing change from a Western-oriented “old order” to a “new order” willnot be straightforward or easy. Agreeingwith the other panellists, she expected thecentre of gravity to move towards Asia.

Globalizing Chinese FirmsChinese firms have been using distinct waysto advance their presence on the world map.The goal of this session, chaired by CharlesTang, Chairman, Brazil-China Chamber ofCommerce & Industry, was to discuss bestpractices for Chinese Multinationals to riseto global eminence and to answer howthey make sense of a world characterizedby pronounced fragility and heighteneduncertainty.

Ali Osman Ozdilek, Member of Board ofDirectors, GD Holding A.S, Turkey,described Chinese manufacturers as lackingbrand awareness. In Turkey, Chinese brandshave not yet established themselves. YetChinese firms make enormous efforts toadapt themselves to global best businesspractices so some have nearly completedtheir transition towards globalization, andsome Chinese brands have already success -fully established themselves, for example,Lenovo. But some say that these brands arestill not real Chinese brands, but onlyChinese-named brands. Nevertheless,Chinese goods and engineering prowesshave become important for Turkey andexemplary power plants have beenconstructed through collaboration by thetwo parties.

Discussing the Chinese global impact,Peng Yuanzheng, Vice Chairman andSecretary-General, China PetroleumEnterprise Association, said that after over40 years of opening up, China’s economyis now fully integrated in the great wave ofthe world. Chinese firms going global havemade great progress, as Alibaba proves.China shows a fast and great developmentwithin the last 30 years. Peng Yuanzhengperceived this trip to Berne as a necessary

Chitra Narayanan, Associate Fellow, Geneva Centre for Security Policy

Peng Yuanzheng, Vice Chairman and Secretary-General, China Petroleum Enterprise Association

Ali Osman Ozdilek, Member of Board of Directors,GD Holding A.S, Turkey

Mark Turrell, Founder and ChiefExecutive Officer, Orcasci, USA

Richard Li, Managing Partner,Success Mark, Hong Kong

24

Matthias Roebel, Chief ExecutiveOfficer and Co-founder, Ming Labs, Germany

Yuan Mingli, Co-founder andChief Technology Officer, Caiyun App, China

measure as Berne is the window to theWorld and Switzerland one of the mostinnovative countries. As Berne is a big placewith big influence, China and Switzerlandneed to cooperate together to achieve theirdreams and should benefit from each othersince cooperation helps achieve win-wingoals.

Mark Turrell, Founder and Chief Exe cu -tive Officer, Orcasci, USA, stated that manyChinese companies decide to grow globaland that Lenovo has been one of the firstto do so. But China needs to consider thatglobalization always faces challenges, as itis very difficult for a British company todecide what any overseas customer wantsto buy. According to Lin Feng, Founderand Chief Executive Officer, DealGlobe,Chinese firms investing globally have takennew paths not trodden by their competitors.Chinese firms pursue a very long-termstrategy.

Charles Tang highlighted the huge invest -ments of Chinese companies into Brazil.Prototypical in the last couple years, Chinahas become the leading nation for electronicscoming into Brazil and it keeps makingfurther acquisitions. The relationshipbetween China and Brazil can be seen as a

complementary, as the Chinese can forexample profit from Brazilian ideas toreduce China’s pollution problems asChina might profit from Brazil’s ethanolprogram, and implement it in Beijing toreduce pollution.

Spearheading China’s Digital TransformationDigital technologies are an importantdriver in China’s economic transformation.Delegates discussed how the new genera -tion of Chinese technology entrepreneursare shaping industries and business pro -cesses locally and globally. John Cook,Chairman, Rock Lake, Switzerland,introduced the topic by arguing that inorder for disruptive innovation to happen,

Charles Tang, Chairman, Brazil-China Chamber of Commerce & Industry, Brazil

A debate during the Horasis China Meeting

Ninel Seniuk, Lecturer, MGIMO University, Russia

25

the free movement of goods, people andcapital is a central key for success, althoughthis proves to be difficult. Giving an over -view over the Chinese economy, MartinHaemmig, Visiting Professor, RenminUniversity, China, introduced the fact thatChina is the global leader of numerousindustries but is not seen as an innovationleader. Currently, the US is still consideredto develop most of the cutting edge tech -nology. Despite lacking internationalawareness, this leadership position has hada deep social and economic impact onChina. “As China leapfrogs the adoption oftechnological innovation, its expertise liesin producing and introducing products tothe market rather than fundamentalresearch,” pinpointed Marián Škvarek,President, Easycore, Czech Republic.

Comparing India and China, SmitaPurushottam, Ambassador of India toSwitzerland, remarked, that funding forcompanies in India is more dependent onthe government than in China. Even so, asIndia has many mobile internet users,chances are high that it might drive thenext wave of innovation. This is also due tothe different approach towards innovation.India follows an ‘open space’ approach,allowing all users to access the Internetany way they want. China still struggleswith this part of the Internet as informa -tion is not always publicly accessible.Furthermore, it is much easier to fundcompanies in India as there are fewerrestrictions on foreign capital.

Responding to the ‘open space’ approachof India, Carlos Moreira, Chairman,WISeKey, Switzerland discussed aspectsconcerning Cyber Security. He argued thatChina’s segmentation of the Internet mighthold a competitive advantage concerning theInternet of Things. With an ever-growingnumber of devices connected to theInternet, the need to protect the“Industrial Internet” grows. This will likelyallow China to benefit from the next IT-revolution – if it is able to develop thenecessary software applications. Digital

John Cook, Chairman, Rock Lake Associates, on China’s digital transformation

Smita Purushottam, Ambassador of India to Switzerland and Minister Christoph Neuhaus

Yan Junjie, General Manager,TusCity Scicence & Technology Co.

Marián S� kvarek, President,Easycore, Czech Republic

Martin Haemmig, Visiting Professor, Renmin University, China

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transformation has massively influencedcompetition and competitive advantages ofcompanies. Today, the question is not “if ” but“how well” something can be implemented,suggested Ken Hu, President and ChiefExecutive Officer, HKF Technology, USA.This leads many traditional companies tooverthink their business model. A growingpool of information can be analysed anddiscussed with professionals all over theworld, for example allowing doctorsremotely to treat their patients faster andmore successfully.

Another challenge in this more innovativeand thus more complex world is to integratebusiness processes and digital technology,as portrayed by Andreas Hube, PresidentChina, SAP, Germany. Basic IT systems mustbe adapted to fulfil constantly changingrequirements. One of the major challengescurrently facing IT Service and Softwareproviders is connecting all the differentforms of connections. China, growing atan astonishing rate, has become the leaderin this field as there no other nation has asimilar set of ever changing requirements.However, in order to achieve the next levelof connectivity, further investments willbe necessary into the technology platform.

Fred Wang, Chairman, Salon Films Groupof Companies, Hong Kong reminded thepanellists of the problem that not every -body within a company can focus oninnovation. Greater external and internalthreat to the security of IT systems createsthe need for people who efficiently run thesystem. If software can be improved tocreate value for customers and company,there is a huge potential for future economicdevelopment. “The user experience can,and sometimes must, be adjusted in orderto meet special requirements and needs ofChinese users,” added Yan Junjie, GeneralManager, TusCity Scicence & TechnologyCo., China.

Andreas Hube, Vice President, SAP, Germany

Ken Hu, President andChief Executive Officer, HKF Technology, USA

Carlos Moreira, Chairman,WISeKey, Switzerland

Fred Wang, Chairman, Salon Films Group of Companies, Hong Kong

Chinese and Swiss entrepreneurs discussing bilateral trade and investments

27

Foreign Firms in China: From Investment to EnduranceSwiss and other foreign firms are lookingto expand their business in China. In thelast few years, we could observe a growthof foreign investments in China. OltmannSiemens, Member of the InternationalAdvisory Board, International FinanceForum, raised questions about theopportunities and challenges of ForeignDirect Investment (FDI) in China andabout what strategies can lead to success.Harald Einsmann, Member of theSupervisory Board, Tesco, United Kingdom,claimed that there is deterioration inChina’s investment climate. One mainreason is the slowing growth of China’soverall economy – it is now more difficultfor foreign investors to access the market.Ryo Kubota, Chairman, Acucela, USsuggested the opposite, claiming that thatthe foreign investment environment inChina will continue getting better.

Jürgen Kracht, Chairman, Fiducia,Hong Kong, reported that the Chinesegovernment increasingly prefers to sourcelocal products “the wind has changed” hesaid. Michael Escher, Chief CommercialOfficer, Meyer Burger Technology, Switzer -land, said he would like to see more control

of business habits in China, moving theme-too attitudes to real innovation. LuYuebing, Vice Chairman, Singuler Guff,China, added that China has stoppedprivatizing state assets so there are feweropportunities for foreign investors.According to Zhang Xiaodong, Chairman,Winhopes Investment Co, China, theChinese Market is now more relaxed andopen for outsiders. Mr. Zhang Xiadongunambiguously encouraged foreigninvestors to enter the Chinese market.

Sergey Demin, President, RosatomEastern Asia, Russia, was convinced thatentrance to the Chinese market is gettingmore expensive. He also emphasized theimportance of having a local partner inChina, especially if you are a middle-sizedforeign company. He also mentioned thatforeign investors increasingly complainabout bureaucracy “investors should bringto China not only money, but also newideas” he concluded.

Creating Ecosystems for Green GrowthChina’s environmental problems are one ofthe drivers behind the country’s plannedshift towards a greener and more sustainablemodel of economic development. “How can

Sergey Demin, President, Rosatom Eastern Asia, Russia Cai Xiangbo, General Manager, Solid WasteEnvironmental Protection Technology Co.

Harald Einsmann, Member of the Supervisory Board,Tesco, United Kingdom

Zhang Xiaodong, Chairman,Winhopes Investment Co.

Michael Escher, Chief CommercialOfficer, Meyer Burger Technology,Switzerland

28

China and its global partners join hands tocreate ecosystems for green growth?”asked Sein-Way Tan, Chairman, GreenWorld City Organisation, Australia. CaiXiangbo, General Manager, Solid WasteEnvironmental Protection Technology Co.,China stated that the waste and pollutionsituation of China is alarming, especially in big cities like Beijing. Seeking for animprove ment is therefore of a high impor -tance. He was convinced that green canand should be the new engine of economicdevelopment. Wu Wei, Chairman, TheAmbassador Club, China, claimed that the

level of pollution of large Chinese cities isalarming “we need fast and sustainablechange. We want to learn from Switzerlandand we promise to become a cleaner andgreener country.”

Claude Béglé, Chairman, Symbioswiss,Switzerland, praised the Chinese govern -ment for developing very concrete andprecise strategies, standing out even againstother countries like Germany and Switzer -land. Nevertheless, these strategies have yetto be fully realised by action, and thereforethe insight, how Europe and especially

Sein-Way Tan, Chairman, Green World City Organisation, Australia, chairing the panel on green energy

Ryo Kubota, Chairman, Acucela, USA

Wu Wei, Chairman, TheAmbassador Club, China

Oltmann Siemens, Member International Advisory Board,International Finance Forum, China

Debating how to create ecosystems that nurture start-ups

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Switzerland did it, is very valuable. KurtRohrbach, President, Trade & IndustryAssociation, Canton Bern, gave an insightinto Swiss energy policies. Historically,Switzerland’s most important source ofrenewable energy has been hydropower.But the renewables like solar, wood, biomass,wind, geothermal and ambient heat alsoplay an increasingly important role intoday’s Swiss energy mix.

Felix Zhang, Founder and ExecutiveDirector, Envision Energy, China, sharedhis dream that one day energy will be free,because wind and solar are free and that iswhere energy should come from. It is notonly China’s but a global goal to ensure asystem that will lead to sustainable energyfuture. Zhao Mi, Chairwomen, Jiangsu

Security Allied Investment and Develop -ment Co, talked about her experiencewith wind farms “offshore wind farms willaccelerate wind power installations alongChina’s coast,” she said.

Winning with TalentEducation systems in China are being madeready for the next wave of economicdevelopment. The session was chaired byZhang Ying, Associated Dean, RotterdamSchool of Management. She asked partici -pants about theirs views on trendstransforming the future of work “how canbusinesses and educational institutionscollaborate to prepare today’s workforcefor tomorrow's jobs?” she inquired.

Anthony Chan, Chairman, New LineCapital Investment, pointed out thedifferences between Chinese and Europeanprimary education systems, He alsomentioned, that many European employersdoesn’t trust the Chinese educationalsystem, as it is often old-fashioned basedon rote learning. Martin Schneider,Chief Executive Officer, Brainforce,Switzerland, pinpointed the need to createeducation systems that will allow studentsto be flexible and critical, as flexibility leads

Kurt Rohrbach, President, Trade & Industry Association of the Canton Bern, making a point

Zhao Mi, Chairwomen, Jiangsu Security Allied Investment and Development Co.

Michael Jeive, Professor, University of AppliedSciences and Arts Northwestern Switzerland

Jü� rgen Kracht, Chairman,Fiducia, Hong Kong SAR

Felix Zhang, Founder and Executive Director, Envision Energy

Claude Bé�glé, Chairman, Symbioswiss, Switzerland

30

to innovation. Jackie Wong, Founder,China Women School, added that “socialeducation will be key in the future. We needgraduates who can connect with their peersand with society.”

Sun Ho, Chairman, Chang ChengInsurance Brokers, pointed out thatChinese graduates cannot be operationalwhen they arrive for their first job. Theirknowledge is usually rather narrow “weneed creative graduates who can deal withcomplex situations” he said. In his opinion,more specialized courses should be offered.Knowledge laboratories should be set up atChinese Universities. Shi Yuyou, Chair -man, Dianba New Energy Technology,added that China needs more engineers,finance specialist and marketing people.Hands-on education is needed.

Michael Jeive, Professor, University ofApplied Sciences and Arts NorthwesternSwitzerland, noted, that people move at adifferent pace with different speeds. And itis all about being innovative and making animpact on society. Daniele Schilirò,Professor of Economics, University ofMessina, Italy, concluded that “education isthe key for innovation and growth, inChina and elsewhere”.

Chinese Brands Taking to the Global StageConsumer behaviour is changing rapidly inChina. Currently ambitious Chinese firmswant to become globally branded players.Alexander Trentin, Correspondent,Finanz und Wirtschaft, Switzerland, askedparticipants what it takes to gain inter -national recognition and to successfullyenter global markets.According to Daniel Meyer, NationalChairman, Swiss Chinese Chamber ofCommerce in China, successful Chinesebrands will need to position their productsemphasizing quality rather than just a lowerprice. Of course, pricing is important, asthe relationship between product and pricemust be reasonable. Ren Siyi, Founder,Herbalíssimo, China, countered that as thebrand identity needs to give informationabout aspects central to the identity of acompany, Chinese companies shouldmaintain their identity in order to selltheir products in the global market.

Jennifer Lu, Executive Chairwoman,China-Africa Project Hope, stated thatChinese companies must consider brandheritage and their roots. Resonating verywell with the panel, she drew a line fromChinese branding efforts to the social

Zhang Ying, Associated Dean, Rotterdam School ofManagement, chairing the education panel

Martin Schneider, Chief Executive Officer,Brainforce, Switzerland

Anthony Chan, Chairman, New Line Capital Investment,Hong Kong

Daniele Schilirò, Professor of Economics,University of Messina, Italy

Alexander Trentin, Correspondent, Finanz undWirtschaft, Switzerland

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responsibility of these companies. Shestated that, the stronger a brand is, thebigger the responsibility must be, and thatsharing is everything as these are traits thatbenefit the whole society.

Lots of Chinese brands do not travel well,stated Anson Chan, Chairman, BondsGroup of Companies, Hong Kong. Theconfidence of consumers in product qualityand consistency are key aspects for successand the perceived lack thereof mightprevent western consumers to buy theproduct. Generally, in a mainly western-oriented environment, Chinese designshould be modernized but Chinese heritageshould be maintained regarding core product

aspects. Anson Chan also pointed out thatproducts must be authentic with regards tothe culture from which they derive. Hisadvice to Chinese companies was “not tobecome something that they are not” led toapplause from all the panellists as well asthe audience.

The panellists discussed a variety ofstrategies for entering foreign markets,concluding that a certain mind-set isneeded before going global. Increasingpressure on margins, competitive pressurein China and risk diversification, aremotivations to expand globally. Chinesecompanies should build up economies ofscale and then move out to emerging

Anson Chan, Chairman, Bonds Group of Companies, Hong Kong Ren Siyi, Founder, Herbali�ssimo, China Noel Akpata, Chief Executive Officer, Stratex Pro,Nigeria

Sun Ho, Chairman, Chang Cheng Insurance Brokers

Jackie Wong, Founder, China Women School, China

High-level officials from China and Switzerland

32

markets. To some degree, this limitedstrategy to go global right away also restswith the Chinese consumers failing topurchase Chinese branded products.Allowing western companies to enter theChinese market has also brought in westernlifestyle and values. This forces Chinesecompanies to have a global strategy in orderto compete as they already face westernbrands in their home market. Socially,Chinese brands are not considered to bringhuge value. Might this be solved throughbetter education?

The session was summed up by He Bing,Executive Secretary, Beijing Federation ofIndustrial Economics, who advised Chinesecompanies to “do what suits them best” aseverything else will naturally follow later onif companies are patient. Jerry Zhang,Chief Executive Officer, NeocommBroadband, China, proposed that caringfor greater virtues will carry everythingand that chasing money and profit has ledcompanies to forget humanity. NoelAkpata, Chief Executive Officer, StratexPro, Nigeria, warned companies not tobecome too materialistic. The panellistclosed the session by opining that branding,if done successfully, will be great for thecompany as well as the entire country.

Boosting the Private SectorChina is set for far-reaching economicreforms to ensure a greater role for theprivate sector. In a session on China’sprivate sector participants reflected on thepractical steps that could be expected inthe next months and “what Chinese entre -preneurs can learn from their globalcounterparts” as Zhang Mei, GeneralManager, Kunming Meilin Science &Technology Co., put it. Liu Chang, ChinaDirector, ACCESS Health International,explained that China is open to work withthe private sector in the health sector. Therising Chinese middle-class is asking forbetter care and house-services. Regardinghealth care, China wants to learn from itsinternational counterparts. For this it needsto think of more adaptive care, startingwith innovative business models andincluding the governmental intention tocover health costs and or insurances.

Wu Jun, Chairman, Yizhao Hengji GroupCo. stated that through China’s “goingabroad”, China can learn also from othercountries. He refers to his own experienceas when he went to America and learntmuch that he was able to bring back intohis business in China. Zhang Xiaoling,Chairman, Linte International, highlighted

Daniel Meyer, National Chairman,Swiss Chinese Chamber of Commerce in China

Jerry Zhang, Chief ExecutiveOfficer, Neocomm Broadband,China

Gérard Wolf, Member of the Board, MEDEF International, FranceJennifer Lu, Executive Chairwoman, China-Africa Project Hope, China

Zhang Xiaoling, Chairman, Linte International,China

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that China’s needs to reform the state-owned sector, with the goal of promotingthe private sector. Paul Xie, Founder,Kunpeng Online, explained that manyChinese business leaders have no confidenceand are rather pessimistic towards theChinese economy “we need more start-upcapital to kick-start our economy” he said.“The private sector is crucial for futuregrowth in China” according to LiaoWenjian, Chairman, Bluesource Capital,and Chinese entrepreneurs have to thinkand act globally. Finally, Gérard Wolf,Member of the Board, MEDEF Inter na -tional, France, proposed to engage moreChinese citizens – old and young – withinentrepreneurship.

Fulfilling the Chinese dreamThis session was about the perception ofthe Chinese dream, to what extend willChina be able to preserve its values (e. g.,about family and religion) and how theChinese dream will change the world. If wecompare the well-known American Dreamto the Chinese Dream there is one bigdifference: The focus of the AmericanDream is the fulfilment of the individuals’dream, but in China you have differentvalues. It’s not only the ‘own family’ whichis important, but the well-being of thewhole nation. This dream is based on China’shistory and religions: Confucianism,Taoism and Buddhism.

The session began with Gaurav Gaur,Managing Director, TLEX, who stressedthe fact that India’s situation is not verydifferent from what China is nowadaysexperiencing. The goal of everyone was toearn a lot of money. As China becomes aricher country, it needs to share moreexperiences and enterprise values with therest of the world. Donny Huang, Founderand Managing Director of 4stones,discussed the question of how to developtrust with the western part of the world.According to Huang, the Chinese dream hassignificant collective values. He considers

Paul Xie, Founder, Kunpeng Online

Zhang Mei, General Manager,Kunming Meilin Science & Technology Co.

Lou Marinoff, Professor of Philosophy, The City College of NewYork, on the Chinese dream

Liu Jingyi, Editor-in-Chief, Global China Insights Donny Huang, Founder and Managing Director,4stones

Yang Xinfang, Director, CCPIT Commercial Sub-council

34

his nation as a big family and this woulddistinguish the Chinese dream from theAmerican dream. According to Liu Jingyi,Editor-in-Chief, Global China Insights, Chinamakes a lot of efforts to connect to thewhole world and to provide infrastructureto enable this connection. The integration ofthe different values of the three religionsmentioned above helps all to have a bettercomprehension. “The ultimate goal of theChinese dream is harmony” she said. “Theintegration of the Chinese culture in therest of the world can be done through thepromotion of Chinese food” said YangXinfang, Director, CCPIT CommercialSub-council, China. Zhao Yiwu, Chairman,Beijing Naton Technology Group, China,stressed that Chinese values should alsoabsorb western values. Zhang Shunchuan,Founder, Bai Art Museum, focused hiscontribution on Confucianism, “Confucianpluralism and China's dream of a harmoniousworld go very well together” he said.

For Vincent Zhang, Managing Partner,Capital First Partners, China is globallyunderrepresented. “We need more ofChina in this globalized world” he said.Lou Marinoff, Professor of Philosophy,The City College of New York, USA,answered that China has already embedded

through Chinese thought and Chinesemedicine some of its values in the westernpart of the world.

Leveraging China’s Global DiasporaZhu Li, Director, Confucius Institute ofUniversity of Lisbon, Portugal, discussedhow China can benefit by reversing braindrain. Stanley Loh, Chief ExecutiveOfficer, One Card Limited, Canada startedhis intervention with a brief overview ofChinese Migration, which began in 1850with migrants searching for gold. Heunderlined that advanced skills were and willalways be the best way to be welcomedabroad. Gregor Heinecke, Chief Exe cu -tive Officer, Transcontinental M&A Advisory,Germany, shared the situation of Chinesepeople in Germany, stating that Chinesemigrants are usually very well educated.Most of them are either business people orstudents. Roger King, Member of theSupervisory Board, Orient Overseas(International), Hong Kong took theseinputs to lead to the next topic, thehomogeneity of Chinese people. He statedthat this cliché is very untrue, as theChinese are very diverse. While a lot ofChinese immigrants were simple labourswhen they arrived in the USA, there was

Wu Jun, Chairman, Yizhao Hengji Group Co.

Liao Wenjian, Chairman,Bluesource Capital, China

Pieter Perrett, Professor, University of Applied SciencesNorthwestern Switzerland, hosting the youth panel

Zhang Shunchuan, Founder, Bai Art Museum, China

Zhu Li, Director, Confucius Institute of University of Lisbon, Portugal

35

also a smaller, well-educated group. LiuJianjiang, Chairman, DaoshengheyunEco-agricultural Development Co., China,reflected on the impressive work theChinese immigrant has done all over theworld. Philippe Monnier, Member ofthe Board, WayRay, Switzerland, made thepoint that Chinese immigrants usually “don’tsteal jobs, they are recreating them.”

Unlocking China’s Youth DividendThe general theme of this session, led byPieter Perrett, Professor, University ofApplied Sciences Northwestern Switzer -land, was how the ongoing technical(r)evolution will change the influence ofChina’s youth on business and society inthe future. He panellists agreed that China’syouth is actively seeking to fulfil its dreams

and ambitions: a change enabled by the de -velopment of the internet as a techno logi calplatform. Huang Xiaohong, Chair man,Teng Jin Logistics, noticed that in order togrow their companies, the millennialswithin the workforce must be engaged.The employees benefit from taking on moreinteresting projects and more responsibility.Innovation and reformation is thereforemainly driven by young employees.Additionally, besides supporting constanteducation for her employees, HuangXiaohong sees her young employees asambassadors, sharing Chinese cultureinternationally with other young peopleand companies.

According to Nathan Anderson, Co-founder, ScanTrust, China, keeping upwith change seems to be much easier forthe “digital born natives”, as there is a largegap between different members of thesociety and the workforce when it comes tothe use of technologies. Although technologyis used roughly the same way all aroundthe world, older people in the Chinesework force struggle with change as theyare not accustomed to technology. NathanAnderson furthermore discussed the fact,that the ability to follow technologicalchanges was made possible by a changing

Huang Xiaohong, Chairman, Teng Jin Logistics Gregor Heinecke, Chief ExecutiveOfficer, Transcontinental M&AAdvisory, Germany

Stanley Loh, Chief Executive Officer, One Card Limited, Canada

Nathan Anderson, Co-founder, ScanTrust, China Roger King, Member of the Supervisory Board,Orient Overseas (International), Hong Kong

Philippe Monnier, Member of the Board, WayRay, Switzerland

36

perception of smaller business venturesand start-ups. The pressure from parentson their children to choose steady jobs inbig enterprises has noticeably lessened inthe past few years. Young Chinese peoplehave discovered, that smaller companiesand start-ups also give them a chance toearn money and, even more important,have a fulfilling life style.

Another aspect subject to massive changesis the higher educational system in China.Students use collaboration platforms inorder to communicate and work onprojects with students from other countries.This inter-connectivity opens up new waysto transfer knowledge and soft, “cultural”,skills amongst the students and countries

involved. Looking in the future, theinfluence of the youth is likely to grow: it will be even more important for youngpeople to connect internationally in orderto sustain their parents and their country.This will be facilitated by the changingtechnology platform. With an engagedyouth, China can become the leader ratherthan the follower in the next technologicalrevolution. However, in order to benefitfrom this international collaboration, techni -cal and social aspects must be con sidered.In general, Chinese companies can onlygrow by becoming more innovative; and tobecome more innovative, the youth mustbe better educated and inter nationallyintegrated.

Liu Jianjiang, Chairman,Daoshengheyun Eco-agriculturalDevelopment Co.

Sergey Millian, Chairman,Millian Group, Russia

Andrew Crosby, Managing Director, International Centre for Tradeand Sustainable Development

John B. Kidd, Research Fellow, Aston BusinessSchool, United Kingdom

Prabhakar Atla, Senior Vice President, Cyient, India

Plenary session – China and World Economic Outlook

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Mapping China’s TradeJohn B. Kidd, Research Fellow, AstonBusiness School, United Kingdom, focusedthe session on the future directions of globaltrade, as it will be largely deter mined bythe initiatives of China and its economicpartners. John B. Kidd highlighted thechange in Chinese firms’ strategy frombeing a low cost manufacturer towardsinvesting in the global market and thus,pursing a grand plan. Through theiracquisitions in European countries, theyreceive knowledge and know-how for theirsupply chain and due to their investmentsin African and South American countriesthey further profit from cheap labour andnatural resources. Thanks to a big entre -

preneurial spirit and a hunger for success,today, Chinese firms show great potentialin world market.

The discussion about China’s impact onglobal supply chains and trade focused onthe changes and challenges of the globalvalue chain, and the participants of theHorasis China Meeting several timeshighlighted the ‘one belt one road’initiative, which is further strengtheningChina’s role in global cooperation. In onlya few decades China displaced Japan fromits leading position by its transition from alocal to a collaborative market. In thiscontext, Umberto de Pretto underlinedthe progress in antidumping, which

Liu Hongchuan, Partner, Broad & Bright, on China’s global trade Bo Inge Andersson, Chief Executive Officer, Bo Group Enterprises, Sweden, speaking about China’s car industry

Discussing the impact of global economic hyper-connectivity on China

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increased China’s attractiveness. Followingthis change other countries could profit byengaging in the global economic valuegeneration process. But where can we findvalue creation? Prabhakar Atla, SeniorVice President, Cyient, India, highlightedthe increased importance of knowledgeand investments instead of goods, whereasAndrew Crosby, Managing Director,International Centre for Trade andSustainable Development (ICTSD),Switzerland, pointed out that non-economicvalues influence decision makers on theglobal stage more and more. China has totackle security concerns, increased labourcosts and the lack of environmentalprotection to sustain its position in theglobal value chain.

Umberto de Pretto, Secretary General,International Road Transport Union (IRU),Switzerland, and Dimosthenis Manginas,Chairman, Manginas and Partners, Greece,both agreed on the need to ‘go back to thesource’, creating products that are not sosophisticated. Manginas described prices inChina as very high even for Chinese products.In his opinion this constitutes a problembecause even the Chinese population canhardly afford Chinese products because of

their low income. He thinks that theChinese have to pay more attention to theinternal market in the future. With its riseChina also started to penetrate areaswhere resources and labour are cheap.According to Sergey Millian, Chairman,Millian Group, Russia, this can be seen asChina’s plan to stay competitive in the futurebecause it is exactly those countries at thisstage of development that are getting thetrading partners of tomorrow. Furthermore,Liu Hongchuan, Partner, Broad & Bright,China questioned Chinese brand names, asit takes not only much money but also a lotof time to establish recognizable brands.According to him, this is the reason for thenumerous mergers: Chinese companiesacquire a company with an established brandbringing it closer to the desired goal ofbecoming an important international player.

Participants sharing a light moment

Stan Fung, Managing Director,FarSight Ventures, USA

Xi Beiming, Director General,Shanxi Coking Coal Group Co.

Han Benyi, Chairman, Shijie Huaxia Fund –‘China’s fundamentals are good’

William Haseltine, Chairman, ACCESS Health International, USA, making a point on the closing plenary

Achieving Growth under the New Normal The closing plenary highlighted andsummarized the recommendations andinitiatives identified during the meetingand how progress can be made in thecoming years. The question of discussionwas which economic model would allowChina quantitative and qualitative growthunder the ‘New Normal,’

Harley Krohmer, Professor, Universityof Bern, Switzerland started the discussionand highlighted that key business successfactors can be created through the combi -nation of the best of the world. Thanks tofusion, something completely new can becreated. He described the key insight ofthe Horasis China Meeting as “go global,make the world a happier place.”

Bo Inge Andersson, Chief ExecutiveOfficer, Bo Group Enterprises, Sweden,said he is very optimistic towards China andexpects its automotive market to furthergrow within the next years. In contrast,William Haseltine, Chairman, ACCESSHealth International, USA, argued that thereis no such a thing as a ‘normal’. For him,normal keeps changing in everyday life.China has faced enormous growth withinthe years, but the past is not a predictor forthe future. There is a limit of what Chinacan export, and therefore new ways mustbe found.

Han Benyi, Chairman, Shijie HuaxiaFund, further mentioned that during thefirst twelve years of this century, thegrowth of China was three times higherthan that of the rest of the world, but thatthe current slowdown of economy is ofconcern. In his point of view, normal is notonly slowing down the growth, it is also astage of new thinking. If China succeeds inthis transition, it is starting with a 2.0version, focusing more on the quality ofdevelopment. Further in the discussionZhao Yiwu, Chairman, Beijing NatonTechnology Group, stated that one feelsthe change of economy in China and that itinfluences people’s life. China faces a lot of

Closing Plenary – Achieving Growth under the New Normal

Participants exchanging business cards

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problems, and is affected by the environ -ment, but it is hoping for change to thebetter. In the future the Chinese shouldfocus on the quality of life and their culturalpursuits, which would enhance a furthergrowth of China in the next decades.

Harley Krohmer closed the plenary witha final statement and mentioned that thekey challenge is to go global. We could alllive in a knowledge society, with artificiallearning and machine learning and wecould add creativity to the Chinese dreamby going global. Thus “we need to goglobal to become more creative.”

Closing dinner at the famous Interlaken Congress Center

A question from the audienceDuring one of the boardroom sessions

Delegates gather for the welcome receptionStudying the programme

Celebrating the Horasis China Meeting

In which direction is China’s economy heading Panellists prepare the next panel

The meeting was covered by the international media Some of the parallel sessions

Bern Economic Development Agency Prepared for a fascinating (and cold) day in the mountains

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Excursion on the last day – delegates walking to the train station During the two hours breath-taking railway journey to the Jungfraujoch

A typical Swiss mountaineers’ lunch is served

Admiring the high-Alpine wonderland of ice, snow and rock

In front of the Aletsch Glacier

Experiencing a treasured high alpine wonderland

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