APRIL 2011

New Five-Year Plan Emphasizes Quality

China is trading GDP growth in its 12th Five-Year Plan (2011-2015) for quality and efficiency – and expects to create 45 million new jobs. Premier Wen Jiabao announced at the National People’s Congress on March 5 that the new GDP target is 7 percent, with less reliance on exports and investments to a more balanced, consumer-driven economy. Human resources training and China’s President Hu Jintao Sees management, a strong suit in the West, may provide added value to China’s As Place For Investment And Job Creation need, and opportunities for American businesses. China’s President made Chicago Family Foundation to bring promis- It is likely there will be more his only stop in the ing Chinese designers and architects opportunities, because the National after a State visit with President to study at the Art Institute of People’s Congress has approved a Plan Obama in January and said many Chicago. that calls for spending 2.2. percent of good things about the City’s educa- Friday, he escorted Hu to Walter GDP on R&D. tional innovations and businesses. Payton Preparatory High School, the President Hu Jintao was honored home of Confucius Institute in at a dinner by Chicago’s Mayor Rich- Chicago which supports a program ard M. Daley and business leaders at teaching 12,000 Chicago students the Hotel Hilton Thursday night, Mandarin in Chicago Public Schools, January 20, where Daley noted that where Hu announced that his govern- “Chicago’s long-range goal is to ment would bring 20 of the school’s make the City the most China- faculty and students to China during friendly city in the United States.” the summer. Hu’s response acknowledged Later they traveled to suburban that “Chicago has long taken the lead Woodridge to visit an exhibit of 30 among U.S. cities in strengthening its Chinese companies doing business bonds with China.” He noted that in the Midwest. Hu noted, “The “Boeing, Caterpillar, McDonald’s, Chinese government will continue to Motorola, and many other Mid- encourage our corporations to do western companies have become business and invest here.’’ household names in China.” Picture: Mayor Daley and Presi- Daley announced a $1 million- dent Hu visited Payton School, by grant from the Margo and Tom Pritzker Brooke E. Collins, City of Chicago

2011 Effective Public Relations In China Should Prove Valuable To Society

The China Business Review has the skills of native-born nationals to observed that communicating a achieve goals. message effectively in China requires In China, for example, Royal “understanding the subtly moving Roots routinely works with media of parts of the country’s complex oper- the CCP, with government-controlled ating environment. Government- television, or famous universities to controlled media, the Chinese Com- bring forth information that serves China Business Review sums up munist Party’s interests, economic China’s interest as it also serves goals procedures to follow to get messages reforms, and rapidly expanding inter- of clients. In the U.S., on the other across in China: Companies should net use all affect corporate communi- hand, there usually is not the neces- treat public relations as they would cations strategies in China.” sity to take into consideration govern- treat government relations; compa- Government affairs and PR are ments as stakeholders. nies should factor recent trends into intertwined in China and must their PR strategies, including PRC acknowledge this fact. The situation government and industry consolida- is usually not the same in the U.S. tion, social media and the “marketi- Royal Roots Global has vast zation” of the media; effective PR experience in both countries, using strategies require that companies public relations activities to further clearly and effectively demonstrate strategies for clients, and draws on their contribution to Chinese society.

Rising Prices China expanded by 58 percent in from an export-oriented economy. 2009 and 2010. One way or another, Chovanec Change China Game This rapid expansion in the said, China will become more expen- money supply was funneled into sive relative to the rest of the world. Patrick Chovanec, Professor, investment and not consumption, he This changes the “China price” which School of and Manage- said, driving up prices for housing, has redefined the global economy ment, in , raw materials, gold and other com- over the past two decades. walked the 130 participants in the modities and “leaking” inflation into Focus on China programs are Focus on China series of the Chicago wages and adding to existing imbal- supported by the Dr. Scholl Founda- Council on Global Affairs through ances. tion and Boeing; Royal Roots Global how China’s stimulus package has China, he said, must now Inc. is among cosponsors. led to inflation and what this means confront the same challenge of to that country and the world. moving from an export to consump- He spoke Tuesday evening, tion driven economy that Japan did in February 8, at the Chicago Club on the late 1970s, predicting it won’t be “2011 China: Rising Prices Change easy as many Chinese companies The Game.” don’t own their own products, brands China sustained its target eight or technology and lack domestic percent growth rate during the finan- marketing and distribution. cial crisis through a RMB 4 trillion He said China’s reluctance to stimulus which resulted in a lending move on its currency exchange rate is explosion that is now fueling infla- a barometer of how vulnerable govern- tion, he said; the lending portfolio in ment leaders feel with a transition away Catch Up On China Call Report. Visit Our Web Page www.rroots.net Groupon Goes To China

Groupon, the Chicago company that was founded in 2008 and is being called the fastest-growing company in history, has now entered the Chinese market, starting services in Beijing and Shanghai, with plans to expand to other major cities. “Groupon features a daily deal on the best stuff to do, see, eat, and buy in more than 500 markets and 44 Gary Locke and Chen Deming. Photograph by Joan Hackett countries, and soon beyond,” its Web- site notes. “We have about 1,500 Chicago Hosts U.S-China Forum people working in our Chicago head- On Economic And Trade Cooperation quarters, a growing office in Palo Alto, CA, account executives based While China President Hu Jintao one investment destination in the in local markets across North was getting a tour of Chicago by world because we have a secure envi- America and regional offices in Mayor Richard M. Daley on January ronment for investment, an open Europe, Latin America, Asia and 31, hundreds of members of a market system with an embedded rule throughout the world.” Chinese delegation and hundreds of of law culture, the most productive The daily deals it offers include Midwest business leaders were meet- and best educated workers in the dining, health-and-beauty, and out- ing in the International Ballroom of world, and vast resources.” He also door activities as well as indoor the Hilton Hotel, and getting down to announced that “Exports to China are skydiving, Segway tours, teeth whit- business on economic and trade up 34 percent in 2010 over 2009 and ening and Brazilian hair blowouts. It cooperation. in fact our exports to China are on intends to enter new categories such Before the day was over, leaders track to exceed $100 billion in 2011.” as travel. of some 60 U.S. and Chinese compa- Chen hoped that the minimum The company has a 20 percent nies signed contracts. U.S. export to China should reach growth rate with 60 million subscrib- In the meantime, they attended $200 billion by 2015 and observed ers. It turned down a reported $6 panel sessions such as "Future Over- that the U.S. Midwest was highly billion takeover offer from Google view of China-U.S. Business Rela- complementary with China’s eco- and raised $950 million in venture tions – 10-Year Outlook" which nomy producing, for example, one- funding in January, 2011. could encourage cooperation. fourth of the soybeans China imports In China, Groupon is partnering The day was punctuated with from the U.S. with Tencent, the country’s largest addresses by the Honorable Gary Wang stressed that China was Web portal, through its Tencent Locke, Secretary, U.S. Department of combating IPR infringement. Collaboration Fund. Yungfeng Capi- Commerce; His Excellency Chen The Forum was organized by the tal also is an investor. Deming, Minister, Ministry of Com- Chicago Council on Global Affairs merce of the People’s Republic of and the China Chamber of Commerce China; and His Excellency Wang for Import and Export of Machinery Chao, Vice Commerce Minister of and Electronic Products, in partner- China. ship with the Ministry of Commerce Locke encouraged the Chinese of the People’s Republic of China. delegates about American opportuni- ties, noting, “The U.S. is the number New Yorker Views Urban China: headquarters of Boeing, which just

Hu’s Chicago Visit sold China $19 billion in airplanes; Informal Cities Illinois is also home to the U.S. operations of Wanxiang Interna- The Museum of Contemporary tional, an auto-parts company that Art Chicago is presenting “Urban employees more Americans than any China: Informal Cities,” an exhibi- other Chinese company.” tion of how cities across the globe, A deeper reason, he said, was from Chinese cities to Chicago, grow that Chicago had built “America’s and transform. The exhibition provides largest Chinese-language program.” an analysis of Chicago’s and urban He pointed to the partnership of China’s growth through history to educator Robert Davis and Mayor highlight the similarities within the Evan Osnos, the New Yorker Richard Daley in helping develop the differences of all cities. A text Magazine’s China correspondent, largest Confucius Institute in the discussion of the exhibit, which raised a question back in January that world. “The city employs 58 full- continues through April 3, and was on many people’s minds: “Why time Chinese-language teachers; they images may be viewed at MCA site Is Hu Jintao Going to Chicago?” oversee 12,000 public-school stu- www.mcachicago.org/media. His answer was that despite the dents learning Chinese.” value of such destinations as Silicon Osnos wrote, “I’ve sat in on Valley or New York, “Chicago has Chinese classes in poor neighbor- emerged as a clear, and unlikely, new hoods, and I’ve seen how it compels favorite of the Chinese leadership.” students to see China as a plausible Osnos noted a few reasons: “It’s part of their lives. Most of those kids the President’s home town; it’s the will never learn enough Chinese to make a career out of it, but that’s not the point. These kids are growing up to believe, at least on some level, that China can be part of their lives. And that is worth something.”

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