Deloitte in the news
Deloitte Leaders: Positive prospects for China's economy with One Belt One Road benefitting the world
At Deloitte's 2015 Global Chinese Services Group Annual Meeting held in Beijing last week, George Warnock, Deloitte Country Services Group's Global Leader, Rosa Yang, Chairman of Deloitte’s Global Chinese Services Group, and Patrick W. Yip, National Merger & Acquisitions Leader, Deloitte China were interviewed by CBN TV, Xinhuanet, China Daily, and CBN Daily on a number of hot topics including the global economy, China's economic development, and the interest rate hike by the US Federal Reserve.
Reforms facilitate the sound development of China's economy
Journalists were naturally interested to discuss the implications of Chinese President Xi Jinping's state visit to the United States. George Warnock said that the communications at this juncture between high-level leaders of China and the U.S. were very beneficial as the Chinese market continues to be extremely important to the U.S.. With the structural transition of China's economy, China has begun to pay more attention to service and innovation, with increasing emphasis on consumption, especially investment in health care, science, financial services and insurance. By this token, there will be more opportunities for China and U.S. to cooperate with each other.
Rosa Yang was also confident about the sustainable and sound development of China's economy. The focus of reform was improving the quality of economic development. In the long run, it is imperative for China to slow down its economic growth, which is beneficial for the sound development of the economy. Driven by reforms, China's economy will continue to show a positive trend.
Patrick W. Yip foresees that US will be the second-largest destination for Chinese outbound mergers and acquisitions this year, and Chinese interest in the US will continue to grow, especially in the technology and innovation sector.
One Belt One Road benefits many countries
Rosa Yang pointed out that the One Belt One Road development strategy not only provided huge opportunities to the construction and development of China and countries along the routes, but also promoted multilateral cooperation, including cooperation between China and countries along the routes as well as cooperation between China and developed countries. A case in point would be the combination of technology and construction capabilities.
In the course of going global, it is quite normal for enterprises to encounter various difficulties and challenges. Rosa Yang suggested that enterprises should firstly clarify their goals and determine whether to purchase technology, acquire channels, or invest financially; secondly, careful consideration should be given to capital arrangement regarding operation so as to avoid possible risks in exchange rate and interest rate; thirdly, it is imperative for enterprises to understand and navigate local laws and regulations.
George Warnock also noted that companies should decide whether to merge overseas or establish subsidiaries based on their own conditions. If a Chinese company possesses talent and technology already, it may establish a new company overseas; on the other hand, M&A is a viable option for a company in need of technology and talent. M&A is not just about investment, but also about gaining from investment.
Source: CBN TV Oriental Financial Channel
Date: 23 September 2015
- Yicai (Video in Putonghua)
- Yicai (Simplified Chinese)
- Xinhuanet (Simplified Chinese)
- Chinadaily (English)