Boao Forum for Asia (BFA) Annual Conference 2017

Deloitte dialogues with delegates

As the long term Intellectual Supporting Partner, Deloitte organized the following sessions in the BFA Annual Conference 2017:

• Private Sector Roundtable "Why is the private sector investment subdued?" on 23^rd March, 2017 at 4:30pm - 6:30pm. (Moderator)
• MNC China CEO Roundtable "Global competition for capital: Re-defining the Chinese market" on 24^th March, 2017 at 9:00am -11:00am (Moderator)

Below senior executive of Deloitte partners attended the Boao Forum for Asia 2017 Annual Conference (BFA AC), met and exchanged views with fellow delegates:

• Ian Thatcher, Deputy Managing Partner, Deloitte Asia Pacific
• Patrick Tsang, CEO, Deloitte China
• Paul Siu, Deputy CEO, Deloitte China
• Vivian Jiang, Deputy CEO, Deloitte China
• Norman Sze, Northern Region Managing Partner, Deloitte China
• Lily Sheng, Partner & Brand & Communications Leader, Deloitte China
• Sitao Xu, Chief Economist & Partner, Deloitte China
• Jennifer Qin, Lead Partner of Investment Management, Deloitte Asia Pacific
• Mingqing He, Partner, Markets and Global Network, Deloitte China

Please scan the QR code and explore Deloitte's discussions at the BFA Annual Conference.

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Private Sector Roundtable

Why is the private sector investment subdued?

Date: 23^rd March, 2017

Time: 4:30pm - 6:30pm

Venue: ICC, Level 1, Peacock 1

Introduction: 

Since we moderated the first roundtable for leaders of Chinese private enterprises in 2011, there have been significant changes and expansion in the business ecosystem in this marketplace. At 2017’s Private Sector Roundtable, Deloitte China Chief Economist & Partner – Sitao Xu and seasoned media practitioner – Shuo Qin joined you together with many other business leaders to look what the present and the future hold for the private sector, a growing and increasingly significant driving force for China’s economy.

Private enterprises have significantly scaled back their domestic investment in 2016 (fixed asset investment grew by 3.2% YOY in 2016) which has prompted heated policy debate on incentives and deregulation for companies. Meanwhile, private enterprises more than doubled their overseas investment during the same period. Over-capacities and entry barriers are widely viewed as the main hurdles of domestic investment especially in the face of tightened monetary conditions for stabilizing the RMB exchange rate. What could policymakers do to revitalize private investment? As Chinese companies continue their outbound investment journey, how can they re-evaluate the risks and uncertainties arising from heightened protectionism?

• How to look at and respond to the persistently weak private investment?
• How to leverage various drivers - the Belt and Road, international capacity cooperation, etc. to rebuild investment confidence and achieve a leap-forward upgrade?
• Will cross-border investment by private enterprises accelerate or slow down?
• How to prevent risks and expand the global business footprint?
  

Session summary: 

Chinese private companies discuss pressing issues at Deloitte roundtable @Boao

At the Deloitte-sponsored Boao Forum for Asia (BFA) Private Sector Roundtable on 23 March, moderated by Deloitte China Chief Economist & Partner Sitao Xu and seasoned media practitioner Shuo Qin, a room full of Chinese leading executives gathered to discuss the most pressing issues faced by Chinese private enterprises.

The majority of our participants are optimistic and eager to increase overseas investments, while expressing concerns about growing geopolitical risks, slower domestic growth, foreign exchange risk and changes in capital and finance policies. They commented that China's regulators can partner with business leaders to ensure that the private sectors are not hampered by issues such as additional tax burdens and unprotected IP rights.

Nevertheless, new opportunities are emerging. Chinese private enterprises expect to thrive on the consumer sector and advanced technologies including fintech and smart manufacturing. They are also eyeing on outbound M&A to acquire established foreign brands and bring them into home markets.

With above issues addressed, China’s private sector will receive the confidence boost it needs to unleash a new era of consumer growth across the world’s second largest economy.

Please click here to read the full summary
Remark: Flash on Boao Forum's website is also not supported on some mobile platforms, it is recommended to download its pdf report to your mobile device or read the report on computer.

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MNC China CEO Roundtable

Global competition for capital: Re-defining the Chinese market

Date: 24^th March, 2017

Time: 9:00am - 11:00am

Venue: ICC, Level 1, Peacock 1

Introduction:

Each year since we moderated the first roundtable in 2010, we have tracked changes in the business environment with roundtable participants who are all CEOs of MNCs in China. In 2017, MNCs may be facing the most complex and competitive environment than ever. At 2017’s MNC China CEO Roundtable, Sitao Xu, Chief Economist & Partner, Deloitte China and Simon Cox, Emerging Markets Editor, The Economist were the moderators to facilitate an exchange of insights and ideas among MNC business leaders for how to reset their China strategies and models as China resets its economy.

The U.S. economy is strengthening and China's growth is stabilizing. But multinational companies cannot afford to relax because of intensifying competition from local rivals in emerging economies, and newly unpredictable terms of trade with the United States. The Trump administration has promised to loosen regulations and cut taxes on companies at home, even as it toys with protectionist measures against companies abroad. The aim is to support capital growth in America and combat capital outflow pressure.

What will this mean for emerging markets in the global competition for capital? And how should multinational companies respond? Will they be tempted to "tariff-hop": building American plants to serve American customers? Or should they wait and see whether the protectionist bark is worse than its bite? Are multinationals in China faced with a two-fold challenge: tougher access to America’s market and more fierce competition in the China market? The competition for capital has always been ferocious, but the rules of the game have rarely been so unsettled.

Session summary:

MNCs still plan to expand in China this year @Boao

At the Deloitte-sponsored Boao Forum for Asia (BFA) MNC China CEO Roundtable on 24 March, the mood among senior executives from multinationals could be best described as “guarded optimism.” Well over 70 percent of attendees said China’s growth would not surpass 6.5 percent in 2017. But well over 60 percent said they still plan on expanding their China operations this year.

What is clear is that for many multinationals with big China dreams the focus is now on consumption growth. Obviously, the less saturated the service category, the better the opportunity. That means those consumer-focused services in which China is still playing catch-up – say, physical fitness or cruise lines – stand a strong chance to cash in. Executives from those sectors said their growth is ‘exploding’ as middle-class Chinese consumers spend more disposable income in search of new lifestyles and experiences.

Moving forward into 2017 and beyond, multinationals will have to be even more consumer-focused and service-driven to earn their slice of what is still one of the world’s most coveted markets.

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