Prior to his visit to the Boao Forum for Asia (BFA) Annual Conference
2007 in Hainan Province, one objective was clear in
the mind of Xu Zongheng – to learn how to help his city's companies
go global. In his role as the mayor of Shenzhen, Xu seeks to
capitalize on the chances the BFA offers to be inspired by
exchanges between the world's foremost business leaders and
economists and to carve an optimum developmental path for his
city.
(The first (R) is Xu Zongheng,
the mayor of Shenzhen)
Shenzhen stands out as a miracle of Chinese economic development
and urban construction, since it was named the nation's first
Special Economic Zone by late leader Deng Xiaoping. Unfortunately,
its development credit may be maxed out given the obstacles it
faces in terms of dwindling land supply and soaring population.
"With ever more fierce competition, developed countries take the
lion's share through their economic, scientific and comprehensive
clout, occupying the high-end position in many industries. In
dealing with the fall-out of globalization, should developing
countries fail to take an active participation in the global
market, they will perpetually be chained to the bottom of the value
chain," said Mayor Xu.
Through attending several panel discussions with international
luminaries at the BFA Annual Conference, Xu realized that this was
the ideal venue to return to Shenzhen from with renewed
inspiration. At a panel discussion entitled "Asian Values: the
Success of Asian Global Enterprises" on Saturday afternoon, he
found further confirmation that Chinese enterprises must actively
seek to join the global competition after listening to the views of
CEOs from several domestic and foreign companies.
This viewpoint is firmly shared by Mark Fuller, chairman and CEO
of Monitor Group of US, who also participated in yesterday's panel
discussion. He explained that Chinese companies must seize the day
in going global at once. "Sometimes the entire purpose of going
global is a quest for profit but there may be other reasons. When
looking at the history of successful companies in the world, we
view their multi-layered methods in going global, to expand their
knowledge, to widen their skill set, to gain new insights and
finally to upgrade their standards."
"Mergers and acquisitions are a very important option in going
global, one I would encourage Chinese companies to consider," said
Fuller. "However, other options exist such as organic growth – the
purposes of relying on the bases of domestic success to build up
their own channel and brand. This may take longer but it is more
sustainable and more conducive to long-term success than
acquisitions."
A third option is also provided by innovation, especially in
terms of products and services. "Thus, if I were a Chinese company,
I would take into account mergers and acquisitions but I would not
rule out organic approaches at the same time, since a combination
of these two techniques might prove most likely to succeed,"
concluded Mark Fuller.
(China.org.cn by staff reporter Wang Qian, April 22, 2007)
