Steve and Michelle joined the annual Boao Forum for Asia that took place over April 9-11th weekend. Asia’s own Davos platform attracted more than 1,000 leaders in Government and global business to discuss this year’s theme: Green Recovery: Asia’s Realistic Choice for Sustainable Growth. The conference kicked-off by a charismatic speech from China’s Vice-Premier Xi Jinping (appointed successor to Premier Hu Jingtao), along with the 74th US Treasury Secretary Henry Paulson, former Australia Prime Minister Bob Hawke, and current Danish Prime Minister Anders Fogh Rasmussen.
From the business side, Steve joined the ranks of global Chairmen, CEOs, and leading Chinese entrepreneurs in looking at Asia’s road to development and its next global challenges. With many key discussions surrounding the post-economic recession environment, there was much debate on:
- Developing new solutions: Panelist shared their thoughts on rethinking growth and adopting counter cyclical strategies. Also learning from top Asian firms who have adopted M&A strategies, “Asian countries cannot acquire Western companies without global culture” Mohamed Al-Mady, Saudi Basic Industries Corp. said, and also suggested for other CEOs to “give people time to adjust, and then do what you want to do.”
“When scoping M&A deals always look at well represented, long-term, low cost companies” (Xiong Weiping, Aluminum Corporation of China)
“It’s about finding key people to understand local business, to go to the new company” (Harsh Pati Singhania, JK Organization)
- Redefining Corporate Governance: Are companies too big to fail? What are the new building blocks for corporate governance, and how easy or complicated should this be? Fred Hu (Goldman Sachs) urged for “simple, smart, and effective regulations.” While many China housing market questions were directed at Liu Mingkang (Chairman of China Banking Regulatory Commission) who emphasized the upcoming regulations to the lending market: “Collateral cannot be used to buy a piece of land; we have changed the way loaning has been to the developers, we will be more selective, regulatory, and handle transactions internally rather than outsourcing to agencies – prevention is better than the cure!”
- Looking at new ways to lead: Does Asia have the will and drive towards a Green and sustainable environment, who will lead it? And what does the new environment mean for CEOs?
“Since the recession, China has brought the lifeline to the world economy. This means that in the new environment, Chinese companies will have to continue to save more energy, adopt a new life revolution, and recognize the China market will continue to develop which represents a challenge as well as an opportunity.” (Chen Feng, HNA Group)
“Business leaders should think about a lesson from the Chinese housewives: who do not buy the morning fresh fish at the fish market for full price, but rather wait till 5pm when the market is about to close and all fish are on sale for 50% off, while the taste is still the same!” (Wei Jiafu, COFCO)
After the conference, our questions still remain on follow-up:
- With the recognition of what must be done, and which areas need more focus coming out of the recession, how will CEOs address areas for change? How will they implement the measures for change?
- There is now a recognition of what needs to be done, but not enough of how to do it
- How does a corporation measure success? Should be more continued discussion about changes in measuring change
- Changes discussed may not be done, because entrepreneurs are over loaded, and business is still doubling, making it harder for their middle management to stay in pace with the company
- Still worries about talent, not enough focus on smarter solutions rather than work harder or making up responses to opportunities – however, there is a real sense of belief that Eastern leaders can do it (and not necessarily copying from the West)
- Still confusion of governance model going forward, reinventing governance which is not just process related step but also involves changes in management, and risk and reward systems – danger of western companies being so risk adverse because of what has happened in the recession
You can read more about the conference coverage at the Boao Media website.