AmCham HK China Conference Assesses China's "New Normal"

HONG KONG, Sept. 4, 2015 /PRNewswire/ -- The American Chamber of Commerce in Hong Kong (AmCham) assembled 19 global/APAC CEOs to share their insights on China's "New Normal" at its Annual China Conference, held at the Four Seasons Hotel Hong Kong on September 1.

"Conventional wisdom around what was normal in China has been significantly altered over the past couple of months, and the timing of this China Conference couldn't have been better," said AmCham Chairman Peter Levesque.

Defining the "New Normal"

Opening keynote speaker Christopher Johnson, Senior Adviser and Freeman Chair in China Studies, Center for Strategic and International Studies (CSIS), gave an economic-political perspective on various aspects of the "New Normal."

Johnson discussed changes in leadership style and priorities, such as the ongoing anti-corruption campaign and the creation of the National Security Commission. He stated that the strengthening of the role of the party and its involvement in the day-to-day management has created a "real shift at the expense of traditional institutions of governance."                                                                                                                                               

Johnson observed that in the midst of market turmoil, there has been a rise of mixed messaging in economic policy and management by the Chinese leadership. "With reform, they have talked a lot about crossing the river by feeling the stones, but I think there is a sense emerging now with the market difficulties and currency devaluation difficulties that you either dive into the river, or you either drown in the coming tide," said Johnson.                                                                        

On competition in the US-China relationship, Johnson stated that the "laundry list of complications in the relationship grows longer every day," yet there is optimism about the relationship as China has the real opportunity to alter current tensions by deepening the engagement and maintaining healthy dialogue between two nations. "What we can do is to go to the traditional strength of economic relationships, something where China can make a valuable contribution, and they should recognize the continuing importance of their historical ally in the relationship -- the US business community," Johnson said.

Key trends for Chinese Companies

Luncheon keynote speaker Gordon Orr, Past Chairman of McKinsey Asia, shared some of the key trends and implications for Chinese companies as well as risks that could lead to discontinuities in the economy. On services industries, Orr noted that there is an issue on pricing and the quality of services and products. Oftentimes, Chinese companies and consumers don't see the link between high-quality and price. Going cheap isn't the best option.

Orr also stated that technology would be the key game changer in the nearer term to maximize efficiency and he saw a growing demand for functional excellence in companies if they are to excel.

Other challenges that will stress the credibility of provincial and central governments are labor issues, urban development, and in some cases shrinking economies with the departure of manufacturing.

Nevertheless, Orr saw many opportunities for China: "The strength of talents in China, their adaptability, is well developed," he pointed out. "The opportunities that we have to grow global leaders in business creates a level of optimism about the resilience of the economy, the resilience of society, and the resilience of the government to identify problems…and to come out the far side with a stronger economy and a stronger society," he said.

Four panel discussions at the Conference focused on --

• New Strategies for the New Normal
• Expanding Roles for Foreign Service Industries in China
• Business Strategies for the "One Belt, One Road" Initiative
• Innovative Business Models in the Fast-Changing Chinese Markets

The speakers and moderators included:

More than 250 corporate executives, analysts, and government officials attended the Conference, along with more than 25 media representatives.

This year's event was generously sponsored by General Electric, KPMG, Thomson Reuters, Sino-Singapore Guangzhou Knowledge City, TMF Group, CUHK Business School, JLL, Scholastic, United Technologies, together with United Airlines as Airline Partner and CNBC as the Broadcast Partner.                                                                                                                                                                    

In the intervening months before next year's China Conference, AmCham HK plans to host a series of speaker events that will further address topics raised in the China Conference.

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With roughly 1,700 members, the American Chamber of Commerce in Hong Kong (AmCham) is one of the largest American Chambers outside the United States, the largest international chamber in Hong Kong, and one of the most dynamic and influential international business organizations in the Asia-Pacific region. AmCham's mission is to foster commerce among the United States, Hong Kong, and Mainland China; and to enhance Hong Kong's stature as an international business center.