Adding Impetus to‘Belt and Road’

By Sun Qi

Adding Impetus to‘Belt and Road’

By Sun Qi

Overseas Chinese businesspeople serve as a bridge for understanding between China and the rest of the world, benefiting global development

The Overseas Chinese CEO/ Think Tank Roundtable at the Boao Forum for Asia Annual Conference 2017.

“Overseas Chinese have displayed exceptional advantages and played an irreplaceable role in promoting the Belt and Road construction,” explained Wang Huiyao, Counselor of China’s State Council and president of the Center for China and Globalization. Wang was speaking at the Overseas Chinese CEO/Think Tank Roundtable during the Boao Forum for Asia (BFA) Annual Conference 2017 held in March in Boao, southern China’s Hainan Province. Wang stressed that overseas Chinese businesspeople are garnering increasing attention for their special contribution to economic and trade cooperation between China and ASEAN countries. Understanding both Chinese culture and cultures of foreign countries, they can serve as a bridge in the construction of the Belt and Road.

At the Roundtable, more than 20 Chinese business leaders shared their views on the theme of “joining hands to renew the glory of the Silk Road”, discussing how to improve Chinese merchants’ global influence and carry out more ef f ective cooperation in various fields through the implementation of the Belt and Road Initiative. Seizing opportunities under new circumstances to achieve the upgrade and transformation of enterprises was also keenly discussed.

Innovation Key to Further Growth

Chinese business leaders around the world are mostly engaged in traditional industries, which makes innovation a key strategy for further growth. Zhang Xiaoqing, standing vice president of the China Overseas Chinese Entrepreneurs Association (COCEA) and executive chairman of Malaysia Evergreen Group, told a recent story that deeply inspired him: On March 22, China’s e-commerce giant Alibaba Group and the Malaysian government officially announced the launch of a“digital free trade zone” in Kuala Lumpur, an electronic platform that is designed to help small and mediumsized enterprises and young people develop businesses through new technologies, according to Alibaba founder and chairman Jack Ma.

“Ma’s statement that any young people who have good ideas can start their own business on this platform made me realize that technological innovation is vital to future enterprise development,” Zhang said. In his perspective, 3D printing, artificial intelligence (AI), big data, mobile internet, Industry 4.0 and robot technology have become indispensable in the growth of overseas Chinese startups and enterprises. Innovative systems, innovative competition and innovative forces will compose an integral part of the operational and management modes of enterprises.

Innovation is set to inject new life into traditional industries. Only by addressing technological shortcomings and accelerating industrial transformation and technological upgrading can overseas Chinese businesses seize economic, scientific and cultural development opportunities in the global arena, Zhang added.

Duan Yanwen, named a member of China’s national“Recruitment Program of Global Experts” and chairman of Hayao Cihang Pharmaceutical Company Limited, shared the same view.

“The Belt and Road construction should take into consideration the varying cultures, religions and beliefs of dif f erent countries involved,” he noted. “Meanwhile, innovative approaches are needed to meet local citizens’ demands. For example, traditional Chinese medicine (TCM) is a good carrier and mode in this regard. The Belt and Road Initiative covers a large number of countries with a total population of 4.4 billion, including 40 million overseas Chinese, which indicates huge market demand.”

Based on his years of experience in the research, development and innovation of TCM, Duan believes that as a gem of traditional Chinese culture, TCM provides original contributions to the global progress of public health. He stressed that technical innovations in TCM will bring endless vitality to the development of this sector, whether it is applied to health care reform in developed countries or to providing medical security to the 4.4 billion people along the Belt and Road.

Zhang Xiaoqing, standing vice president of the China Overseas Chinese Entrepreneurs Association and executive chairman of Malaysia Evergreen Group.

Duan Yanwen, a member of China’s national“Recruitment Program of Global Experts”and chairman of Hayao Cihang Pharmaceutical Company Limited.

Dhanin Chearavanont, senior chairman of Charoen Pokphand Group of Thailand.

Creating Win-Win Opportunities

The main goal of the Belt and Road Initiative is to promote regional connectivity.

Innovation and smart technologies have emerged as “key weapons” strategic to enterprise development. Dhanin Chearavanont, president of the COCEA and senior chairman of Charoen Pokphand Group of Thailand, agrees that constant technological improvement is key to his business.

“The future of the Belt and Road Initiative lies in hightech innovation and talent,” he said. “Innovation depends on new technology. To embrace the ‘era of Industry 4.0’, the Thai government has focused on attracting enterprises and professionals in high-tech fields such as electric cars, robots, unmanned aerial vehicles, driverless cars and biological engineering. Dif f erent countries have dif f erent national situations, policies and investment environments. Chinese firms should understand the facts of target countries from the beginning, and then let them know what contributions they can provide.”

As the first foreign enterprise to invest in the Chinese mainland since the introduction of reform and opening-up policies, Charoen Pokphand Group has taken an active part in China’s economic reform, while adhering to its core philosophy of “benefiting the country, the people and the company”. Dhanin Chearavanont suggested that Chinese entrepreneurs join hands with their Thai partners in public relations ef f orts to help Thai citizens and enterprises become aware of the benefits they may gain from the Belt and Road Initiative.

When mentioning the China-Thailand high-speed railway project, the Thai tycoon pointed out that after completion, the project will exert profound influence upon infrastructure construction, economic development, employment and living standards in Thailand. Currently, Charoen Pokphand Group is working with Chinese enterprises such as the China State Construction EngineeringCorporation (CSCEC) and China International Trust Investment Corporation (CITIC) to realize business growth on a win-win basis and help promote the Belt and Road construction through integration and coordination of their respective advantageous resources.

“Once going overseas, we must fully integrate into local society, instead of separating ‘my country’from ‘your country,’ which may lead to discrimination that hurts enterprises’ longterm development,” said Yan Cheung, chairwoman of the Nine Dragons Paper (Holdings) Limited. “For business entities, the first step towards the goal of advancing abroad is to make their products visible across the border. The products should not only meet domestic quality standards but should be also competitive in foreign countries, thus establishing their brands in the international market. This is an inevitable path to the globalization of enterprises.”

The Nine Dragons Paper Company began its globalization journey in Vietnam, a country along the Belt and Road. In 2008, it launched an investment project in a local papermaking factory, setting up a new production line that is capable of producing 300,000-400,000 metric tons of packaging paper annually.

“If free trade is the second wave of globalization, in the third wave, we will see not only bilateral benefits, but also multilateral win-win situations,”said Wang Feiyue, director of the State Key Laboratory of Management and Control for Complex Systems at the Institute of Automation under the Chinese Academy of Sciences. In his view, a “multilateral win-win”means closer communication and integration. Through worldwide resource optimization and intelligence allocation, and with the support of smart technologies, full utilization of local resources based on the integration of virtual and real technologies will allow participants in the global economy to realize multilateral mutual benefits.

Nearly all the business leaders in attendance agreed that they “know what the Chinese markets have as well as what the international markets want”.

Yan Cheung, chairwoman of the Nine Dragons Paper (Holdings) Limited.

Super Links

Nearly all the business leaders in attendance agreed that they “know what the Chinese markets have as well as what the international markets want”.

Tu Haiming, vice president of the COCEA and chairman of Hong Kong Hodoor International, stressed that overseas Chinese firms should serve as “promotion ambassadors” of the Belt and Road by taking advantage of local characteristics. Local public support has greatly contributed to the smooth implementation of the Belt and Road Initiative in countries involved. From the moment overseas Chinese businesses were founded, they were implanted with the “Oriental gene”, giving them unique insight into the business environment both in China and their home country. In addition to seeking business opportunities, they have a lot more to contribute to the Initiative.

“Priority should be given to friendship over business,” said Wang Linda, chairwoman of Yihai Group. According to her, while participating in Belt and Road construction, overseas Chinese businesses must not simply explore resources in countries involved, but should also make friends with local people through cultural and educational ef f orts and promote the availability of charity along the route.

Wang herself has twice donated money to Serbia. When devastating floods hit Serbia in May 2014, she donated a sum of 300,000 yuan (US$45,000) to disaster-af f ected residents. Last year, she donated 330,000 euros to establish a kindergarten there. Both charitable deeds were recognized by the Serbian government and citizens alike, winning her a Lifetime Achievement Award from the Serbian government.

Wang is not alone. At last year’s BFA Annual Conference, Chen Jianghe, chairman of board of directors of Singapore Golden Eagle International Group, donated 100 million yuan (US$14.5 million) to a professional training project aimed at increasing communication and mutual trust between entrepreneurs of China and other countries along the Belt and Road, creating business opportunities and promoting people-to-people bonds.

At present, preparations for the project have been completed, with a series of activities scheduled for this year. Chen Jianghe reveals that the project is a platform open to entrepreneurs in Southeast Asia, South Asia, Central Asia and the Middle East — regions along the Belt and Road. By deliberately designing the training courses, organizers intend to clear up misunderstandings and worries about China’s Belt and Road Initiative, thus helping Chinese entrepreneurs gain better insight into the national conditions of countries along the route.