Hina Is Not a Goldenxanadu in a Bed of Roses C

An Interview with Andrew Leung Founder and Chairman, Andrew Leung International Consultants Limited, London

hina is not a GoldenXanadu in a bed of roses C

Evening of Macau bridge, "© Photographer: Ti_to_tito | Agency: Dreamstime.com"

“China Insights”: Dear Andrew we are honored you century, not only in absolute terms but also in per capita agreed to this interview. Almost everybody today talks terms. She was active in outreaching the outside world in about China’s potential. Let me tell you from the peace and trade during the Tang, Song and Ming dynasties. beginning that your articles, keynotes etc are our favorites. I love the way you make insights to China In a world full of confrontation and aggression, China is Issues. Can you please share with our readers your preaching peace, tolerance, diversity and cooperation. She perception for modern China? In few words what is realizes that each country's development path is different China for you? because of history, culture, resources, geography, demographics, and a host of diverse internal and external hina as an ancient civilization is now recovering her challenges. Just like your family being different from mine. lost potential after a long decline and a great deal of suffering over several hundred years. She had been here can be no single formula for all and for all C the world's largest economy up to the early fourteen times. Instead on imposing a single formula, she recognizes mutual differences but is not T preoccupied by them. Instead she seeks common

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© China Insights Today Issue 1, September-December 2007 grounds for constructive cooperation, knowing that such First, unlike the previous Industrial Revolutions in the West, cooperation will eventually build trust to reduce mutual this time a large part of the entire world including China, differences. This may be a better way in approaching modern India, and to varying degrees South East Asia, Eastern asymmetric international conflicts. Europe, Latin America and even Africa are all industrializing and urbanizing at the same time. This creates unprecedented pressure on natural resources especially Energy and Water.

Second, modern technology including the Internet and global supply chain management skills, have made the entire world a much 'flatter' environment. Value creation migrates across borders much more readily in terms of outsourcing, offshoring and networked operations.

Trade and foreign investment accounts for a huge proportion of China's GDP. But with growing competition, exports of 'Made in China' goods have become wafer thin. China can no longer afford to continue relying on T-shirts and DVD players to finance her need for Boeings and Airbuses. In her 11th Five Year Plan, she has vowed to build a Nation of CHINESE TRADITIONAL DRAGON DANCE Innovation driven by technological upgrading, creativity, and TROOP sustainable energies. She needs to maintain the momentum of © Heng kong Chen | Dreamstime.com Globalization to help achieve her goal.

In aggregate terms China is already the 4th largest economy. “China Insights”: Dear Andrew, as Founder and But with a population of a fifth of mankind, she still ranks Chairman, Andrew Leung International Consultants below 100th in terms of per capita GDP, amongst some of Limited, London and with your tremendous expertise in the poorest countries in Africa. Moreover she has only 7% of consulting, I would like to ask you something the world's arable land and only a third to a quarter of the concerning Chinas characteristics. Which are the main world's per capita water resources. She needs to produce 24 points that differentiate the business environment in million jobs each year just to stay even. She has to maintain a China. In simple words why is China different in doing relatively rapid growth rate to develop a sound economic business in comparison to doing business in the States foundation before her aging population profile begins to bite or in EU? in 30 to 40 years time. She has to do all these, yet maintaining the sustainability of her environment as more and more of the irst, China is very diverse in its regional West's energy-intensive manufacturing is moving to China. development. There is a world of difference between the richer coastal regions and poor inner provinces. So China welcomes international help and cooperation, Second, China is a single-Party meritocracy. There is especially in technology, innovation, resources, and in clean Fboth wide decentralization and centralization, all at once. and efficient energies. She is honing her skills in playing a Third, Chinese culture is markedly different to Western better game in engaging the rest of the world, including the cultures. In China, a carefully completed legal contract is not West, as a leading Responsible Stakeholder. the end-game. Just like marriage, it is just the beginning of an evolving relationship. There is much more emphasis on “China Insights”: Our readers would love to read in the hierarchy, status, respect, harmony, and indirect rather than inaugural issue the article that you let us reproduce on direct communications. Effective engagement in China “How Technology and Globalization are driving China requires absorption and effective blending of both Chinese in the 21st Century (A Keynote Speech given at the AGM and Western cultures. of the China-Britain Technology and Trade Association on 11 June, 2006)”. In my humble opinion you give an “China Insights”: Andrew, doing Business in china is for excellent overview of China’ s Potential. Could you many foreign entrepreneurs a key challenge. Do you feel please share with us some hints on how globalization that china is really a paradise for foreign investments? drives China in the 21st century? China is not a Golden Xanadu in a bed of roses. In such There are two major drivers of Globalization in the 21st a diverse, new, rapidly changing and relatively unfamiliar Century.

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© China Insights Today Issue 1, September-December 2007 market, horror stories naturally abound. But no market in the an entrepreneur interested in investing in china? I am world can compare with China's rapid economic development sure many of our readers would love to hearing from you. sustained over several decades. She is already the second largest economy in the world in Purchasing Power Parity I help companies develop better strategies to leverage the (PPP) terms. She is set to become the world's second largest China market. I assist institutional investors to better trading nation within a decade. The 'Chinese Middle Class' is understand China's changing dynamics, to minimize risks and growing by leaps and bounds, poised to welcome much more increase opportunities. I help venture capital, private equity, of the products and services the West may take for granted in and hedge funds to identify and realize M & A and other their consumer societies. investment opportunities. I help with negotiations, IPOs and Road-shows. Western Chambers of Commerce have reported growing and faster profits amongst more of their China investors. Rather Where appropriate, I sit on Boards as Non-executive Director than a Paradise, Modern China is a Paradox and a Promising or Advisor. I accompany business or familiarization trips to as Frontier. She is none the less fascinating in her demand for China Advisor. I take on Visiting Professorships for Business patience, understanding, finesse, skills and insight on how to Schools‟ MBA programs. I give talks and training to leverage her dynamics in the Globalization of the 21st executives on Cross-culture Management and understanding Century. how to do business in China.

“China Insights”: Dear Andrew, all over the world I take on speaking engagements in local and international people are looking for the China challenges. I mean it conferences, seminars and forums. I write feature seriously that in our days the business dream is the commentaries and appear on live TV and other media CHINA DREAM. Can this dream be also a nightmare? interviews on any strategic or development issue related to China. The list is not exhaustive and I am open to ideas and It can. For the reckless and ill-prepared, the nightmare can suggestions. also be horrible. But as I explained above, China can also be a Dream Come True, as Walmart, Carrefour, B & Q, “China Insights”: Andrew can you please tell us few Volkswagen, Toyota, Proctor and Gamble and a host of other words for your consulting activities? How you can help foreign investors, big and small, are beginning to realize. an entrepreneur interested in investing in china? I am Some projects hit a rock. Others reap handsome profits. This sure many of our readers would love to hearing from you. is the name of the game in the world's most dynamic, most rapidly changing, and liveliest market economy. Same as for Q6 above. I am aided by my databank of over 5,000 of my own personal international contacts (including UK and China) built up over decades. They include various decision-making levels from Managers, Directors, VPs up to CEOs and Chairmen, MPs, senior government officials and other business, scientific, academic, professional and community leaders. They include entrepreneurs, fund owners and operatives, consultants, service providers and experts. The range includes international banking, insurance, risk assessment, legal services, accounting, architecture, energy, environment, materials, resources, biotech, healthcare, science, technology, property development, intellectual property, logistics, media, human resources, think-tanks, academia, hospitality, culture, arts, and charities. They provide a vital source for value-creation or partnerships for various China-related projects or ventures. © Photographer: Dragan Grkic | Agency: Dreamstime.com

“China Insights”: Andrew can you please tell us few words for your consulting activities? How you can help

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“China Insights”: Andrew you are serving as Chairman, China Group, Institute of Directors City Branch, London, United Kingdom as well as Chairman, China Group, Royal Society of Arts, London Region, United Kingdom. I am sure many of our readers would love to hearing from you concerning these activities.

The City of London represents the very heart of London as the world's leading financial centre. It is managed under the aegis of the City's Lord Mayor. The Institute of Directors (IoD) is a premier business institution and one of the most influential business organizations in the United Kingdom with overseas affiliations. Its City Branch China Group, which I chair, organizes China-related business and networking events including those in partnership with other financial, business, and professional organizations. Its Membership is open to both IoD and non-IoD members. Anyone wishing to join should email direct to the Honorary Secretary [email protected] for details.

The Forbidden City "© Photographer: Studioceja | Agency: Dreamstime.com" Fellows and non-Fellows. Information on RSA events can be The Royal Society of Arts, Manufacture and Commerce, obtained from www.theRSA.org/events commonly referred to as the Royal Society of Arts (RSA) is a prestigious UK Society promoting commerce, arts, culture, “China Insights”: If someone asked you to predict the and human understanding, with HM The Queen as Patron future of China in the international business arena which and HRH Prince Philip as President. As a Fellow (FRSA) and would be your comment? That in X years china can be elected to the Executive Committee of the London Region the 1st economic power on planet? Is there something branch,I lead its China Group, which organizes events to that make you worry for the future of China Economy, further the aims of the RSA. Its events are open to both e.g. recently we had the crisis in Chinese Stock market.

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Those perplexed by the recent roller-coasters in China's stock eventual voluntary unification through increasing economic market may be interested in my recent articles 'Irrational and social integration. Exuberance, Rational Economics or Irrational Politics' under Publications and 'The China Black Swans' under CHINAwatch Internally, China‟s vigorous policy towards more balanced and on my website sustainable development is likely to diffuse or contain the www.andrewleunginternationalconsultants.com rising pockets of discontent. The continuing fight against corruption and IPR infringements are likely to remain high on It is not always meaningful to do China predictions. That's the political agenda. Civil society and Christianity are on the why I referred to China's Black Swans. And the world is full rise. There is a vibrant and expanding private sector together of books either predicting a path to eventual collapse or with a fast growing and generally contented Middle Class. depicting a range of thought-up scenarios loaded in favour of This is opening up a vast consumer market embracing more the author‟s argued choice. I think It is more meaningful to cosmopolitan lifestyles. delve more deeply into China‟s fundamentals, her underlining currents and imperatives. Most of these I have tried to capture A recent proprietary study by Credit Suisse First Boston is on my website, which incidentally you may wish to save on telling. Taking into account gradual RMB appreciation, the your computer, laptop or Blackberry as a China resource. USD size of China‟s economy is likely to grow to 90% of the US‟ by 2014 with an annual growth twice that of the US. The consumer pendulum has begun to swing towards China.

China thus stands a fair chance of progressing economically, socially and politically so as to be able to showcase a convincing alternative development model to the entire world. Indeed, Goldman Sachs‟ latest linear forecast (The Economist, 30 June, 2007) predicts China‟s economy not only to catch up with the US by 2027/8 and to exceed it by 75% by 2050, at the same point as India‟s economy matches the US.

China‟s looming challenging mountains to climb are her ongoing energy and resource constraints and the onset of her aging profile in about 30-40 years time. This is the more reason why China cannot afford and does not want to be aggressive. She needs peace and Harmony, both at home and China Men Fishing internationally, to continue to build a better society for her © Photographer: Marco Poli | Agency: Dreamstime.com people.

“China Insights”: Andrew given your expertise on China, can you please tell us few things for the China But if I have to predict, then my take is that China stands a Business System in General? How easily is for a fair chance of maintaining a relatively high rate of growth at foreigner to establish a business in China? least in the next several decades or so, provided the world is not shaken by major tremors such as a world epidemic, severe Because of the imperatives I have outlined, China has to be Climate Change, or a Middle East implosion. very business proactive and business-friendly, especially towards foreign investment which brings her much needed I say this because unilateral US neo-conservatism is likely to innovation, technology and international business savvy. lose steam with changing US internal politics. There is also a Many cities and provinces are competing for such investments global re-balance towards multilateralism as the EU, Asia, by bending backwards to help investors through one-stop Russia, the Middle East, Latin America and Africa are rising in business promotion units, special development zones, high geopolitical influence. China-Japan relations are on the mend. tech parks etc. The challenge is to truly understand China‟s China is also building up regional cooperation and friendship diverse and rapidly changing business environment, establish across the globe. The Taiwan status quo is likely to be reliable and effective local partnerships and network, and preferred as much by Washington as by the business-minded obtain traction by leveraging projects in tune with China's Taiwan electorate. It also suits China‟s strategy of achieving national development strategies. It is no longer difficult to

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© China Insights Today Issue 1, September-December 2007 start a business in China. But to be a winner in any business “China Insights”: The global community has a critical always requires a contest of entrepreneurship. In China it gap on knowledge concerning China. Which you demands an insightful strategy as well as deeper cultural consider as the key themes of the Agenda related with understanding of her unique national and local characteristics. doing Business in China?

“China Insights”: So Andrew, let me put it simply. If I First, a deeper understanding of China. Second, a bespoke want next month to establish a publishing company in business strategy suited to the chosen investment sector and China, do you feel that bureaucracy is worst than target. Third, identification of a reliable local partner or European countries or States? Do you have examples network. Last but not least, how to institutionalize cross- from your consulting activities of successful launches of cultural understanding in the business venture. This list is by new businesses in China? no means exhaustive. Above all, implementation is the key, from due diligence, negotiation to scaling up a globally This is an important unique China characteristic. While most integrated business. businesses do not touch on national sensitivities, publishing is not one of them. The media is subject to more control in China. But translations of Western business, self- improvement, and children's books are hugely popular in China as are Chinese versions of world-class fashion and lifestyle magazines.

I played a part in offering advice to Lenovo in cross-cultural management (in the wake of the IBM Computers Division acquisition) through a leading US consultancy firm. Recently I helped coordinate an international strategic consultancy looking at the global risks and opportunities of China's energy sector as overall Editor-at-Large. I just returned from Jilin Province as an invited Guest of the Municipal Government of Changchun, where, amongst other things, I was looking at a project involving agricultural mechanization and sustainable energies.

“China Insights”: A last practical question. How do you comment the Taxation system in China especially for enterprises? Are there incentives for new investments in China? In one of our next issues we will have a special section in taxation of enterprises in China.

Taxation is China has become more and more developed and professionalized. But apart from revenue collection, it serves above all as a central policy instrument. For example, in line with China's latest development, the taxation between foreign and local enterprises has recently been equalized. The rebates for energy and emission-prone exports have been removed so as to promote sustainable development. There are recent increases in stamp duty on share transactions to curb unhealthy speculations in the stock market, along with removal of tax on interest earned to encourage retention of bank deposits. There is a variety of tax incentives offered by a China Landscape multiplicity of special high tech parks and development zones © Photographer: Gabrielle Chan|Agency: Dreamstime.com in various provinces and cities.

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“China Insights”: I would like to ask your help in a very Puzzle? Which is your advice to people interesting in practical issue. I think that if you ask an entrepreneur investments in China? interested in investing in China, the typical context is “We are looking for a low cost production line, and we Nothing can substitute an open mind, and a proactive attitude will apply our advanced, high quality know-how”. Is the to find out and learn. Above all, avoid stereotype thinking and China business arena that simplistic? looking everything through Western –colored spectacles. First-timers would find it both enjoyable and educative to visit No. As I said, China cannot afford to survive on low cost the chosen territory, to see and feel how the society and alone. In fact she doesn't. Apart from low cost, she is people behave, and to experience the local „hardware‟ and extremely production efficient and has successfully honed a software‟, before drawing any conclusions, however tentative. world-class critical mass in a variety of manufacturing sectors. Her products are already achieving an extremely competitive “China Insights”: Dear Andrew, you have provided quality-to-price ratio. That's why 'Made in China' labels can be consultation to many UK Companies. Can you share found in the world's leading stores. . which us, which is the typical perception of European Executives for China? Are there typical stereotypes and “China Insights”: Do you feel that the “low cost” misunderstanding? Can you share with us few clips from characteristic of production in China causes some talks with executives? problems in “branding” of Chinese products? Some of my best UK colleagues have a good and As I explained, China cannot live on low cost balanced understanding of China. Some visit alone. But in spite of all her upgrading and China regularly and have successfully often first-class quality, the Low Cost developed good rapport with their image remains. What is more, the Chinese counterparts. But there are image of her being an ostensibly In China, the success some who unconsciously harbour „Communist‟ country (even she stereotypes, biases, prejudices and appears more Capitalist than story is more a half-truths, borne of their personal Victorian England) sometimes question of vision, hearsay, background reading, and rubs on her products, along with individual experiences. Examples her perceived deficits in human strategy, nimbleness are „The Western model is the only rights, freedom of expression, and cross-culture model that will work for China„ intellectual property protection, „China being Communist will clean governance, transparency, and chemistry eventually lead to her collapse‟, the rule of law. See my earlier article „China is not a unified nation but „The Long March for Brands‟ dated consists of many different China‟s‟; January 31, 2006 under CHINAwatch on „Guanxi is all paramount and that‟s why my website there is so much wining and dining‟; „The key www.andrewleunginternationalconsultants.com to a trouble-free partnership is a water-tight contract‟. While there is always a grain of truth in some of “China Insights”: In most of cases investments require a these concepts, they can preclude a more balanced well-defined context. How would you evaluate Chinese understanding of China and may even threaten China policies, government procedures for helping foreign business success as much as total ignorance. investments in China? “China Insights”: In our inaugural issue we have a As explained under Q10 to Q12 above, China‟s policies are special section on Beijing’s 2008 Olympics. Do you generally pro-business, pro-market and pro-foreign believe that these Olympics generate new opportunities investment, except in areas of national sensitivity, particularly for China’s Economic Development? the so-called Three Ts (Tibet, Taiwan, Tiananmen Square). he 2008 Olympics stays at the top of China‟s “China Insights”: China Mainland, Taiwan, Hong Kong, national agenda as a timely and God-given all areas with great differences in terms of cultural and opportunity to showcase Modern China to the business characteristics. How difficult is for a entire world. She has also openly committed to businessman to understand the diversity of china Tmaking it the first Green Olympics. It will therefore provide foreign investors or potential investors a golden opportunity

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© China Insights Today Issue 1, September-December 2007 to show what they can offer to China, to develop good China‟s major national business champions are all gearing up relations with local partners, and to make their own brand- to take to the global stage. This is in line with China‟s strategy name known far and wide in China and the rest of the world. of nurturing more Chinese multinational champions to rank amongst the top Fortune 100s. But so far this is still an uphill “China Insights”: Recently I had a conversation with an battle, owing to the long lead time required to boost creativity, entrepreneur. In few words he stressed me the gap in international business savvy, and global branding. We are knowledge about China. Do you believe that likely to see more Chinese M & As with, or outright international organizations, associations, centers are acquisition of, international brands (e.g. MG Rover) and performing well in knowledge dissemination activities? I more professional marketing at the top end (Huawei am aware of many initiatives almost in every country advertisement in The Economist). This will also open up concerning China-X country cooperation. Which you opportunities for Western global brands to take a stake in consider as the pillars of any sustainable cooperation at upcoming Chinese national champions (Danone in Wahaha). business, scientific, or other context? However, as the Danone example shows, the course of true partnership seldom runs smooth. My earlier advice under Q3 First, there is no substitute for regular, open-minded, and above on cross-cultural understanding is very relevant. unbiased exchanges. This applies especially to information dissemination. China is essentially a rapidly transitional “China Insights”: Andrew I don’t know if you have any economy and society. By way of parable, it is all too easy for a expertise on the banking system of China. Do you feel blind man to focus too much on an unseen elephant‟s tusk to that foreigners can find a friendly banking system for think that it represents the entire shape of the animal. This supporting them in business initiatives in China lack of balance reporting could reinforce stereotypes and Furthermore are you aware of Government investment prejudices. Second, It often pays to be proactive in building incentives in China for foreign Companies? mutual trust and friendship, by offering concrete help and cooperation before they are directly sought (the last resort in There is no lack of tax incentives for foreign businesses as Chinese culture). Perhaps even more important, it is really up explained under Q10 and Q12 above. As for bank credit to these cooperation organizations to educate their facilities for foreign investors, a recent Mckinsey Quarterly constituencies back home and to help them understand and article shows that in terms of private corporate debt as a engage China better. percentage of GDP, China ranks bottom with 1% compared with the top US 145%., Most of corporate lending through “China Insights”: Dear Andrew, in 2010. Shanghai is China‟s banking system remains dominated by the largest hosting the World Expo. Can you explain us in few state-owned banks, which tend to favour State Owned words the significance of this event and also the Enterprises. Therefore, until China completes her banking participation of China in WTO? reform, foreign investors generally prefer their own banking and credit facilities outside Mainland China. Some of these China has already joined the WTO since 2001. The investors also expect to raise funds through listing of their transitional arrangement for full compliance came to an end in China enterprises in Hong Kong, London or New York. December 2006. Following the 2008 Olympics, the 2010 Shanghai Expo will be China‟s next golden opportunity to “China Insights”: Dear Andrew, many people worldwide showcase herself to the entire world. It will likewise be a are “drunk” with the potential of Chinese Economy and golden opportunity for foreign enterprises to showcase in most of times they are looking for short-term profits. themselves to China and the rest of the world. As with the Last weeks we had the decline in stock index in Chinese 2008 Olympics, China is likely to pull all the stops to make Stock Exchange. Do you consider Chinese Markets as this the best Expo ever. Work has already proceeding at great mature ones? Are there any hints for people interesting speed. Potential foreign partners have no time to lose. in avoiding bad surprises?

“China Insights”: Sometimes we focus on the China‟s stock markets are still very much work-in-progress, performance of foreign companies in China. But at the pending more robust corporate governance, transparency, and same time several Chinese companies, like Lenovo, etc, regulation. On their roller-coaster behaviour, please see my perform excellent at the global competitive arena. How explanation under Q9. The Chinese economy, however, is do you see the future of Chinese brands in the worldwide much more stable, supported by robust export and growing business landscape? internal consumption, with more sensible government policies geared to maintain stability.

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“China Insights”: You are aware for several programs on Andrew is an international and independent China China Studies in many universities worldwide. If you specialist. He is Founder and Chairman of Andrew Leung would be asked to design a degree on Doing Business in International Consultants Limited. He has written and China, which are your main propositions in terms of spoken extensively on strategic China issues at local and courses, objectives, program philosophy? international forums on numerous occasions. Many of his articles can be found on his website My program philosophy would be flagged up by the word www.andrrewleunginternationalconsultants.com . Andrew „Understanding‟. Understanding China as a country. chairs the China Interest Group of the Institute of Understanding her diverse business environment. Directors‟ City Branch. He has been elected to the Understanding the Chinese business culture. And Executive Committee of the Royal Society of Arts, London understanding China business strategies through the latest Region and chairs its China Group. He is an invited case studies. It would feature Cross-cultural Management and Member of the Asymmetric Threats Contingency Alliance (ATCA), an influential global think-tank. He is a Senior modern-day business applications of Sun Tze‟s Art of War. Consultant with MEC International with special interest in There would be proactive class participation and interaction, energy businesses involving China. He sits on the Executive with experience sharing as part of the learning process. Rather Committee of the 48 Group Club with historical links with than a formal degree course, I have designed a modular the Chinese leadership. He sits on the Governing Council Elective series which can be adapted to suit specific needs, of King's College London and the Advisory Board of the ranging from 4 selected lectures to the full syllabus of 12 China Policy Institute at Nottingham University. He is a lectures spread over a month or so. Visiting Professor at the graduate schools of management at NIMBAS University in the Netherlands as well as Sun “China Insights”: Dear Andrew, in close relevance to the Yat-sen University and Lingnan University in China. previous question. I think that many business people are Andrew has amassed a great deal of China-related interested in executive training on China business. I am knowledge and experience with a career of some 40 years in aware that you provide such program in your company. a variety of senior government positions. His last was Hong Do you feel that business leaders need to learn from Kong‟s chief representative for the United Kingdom as well China Business Case? as all the new EU Member States, Russia, Switzerland and Norway. During a mid-career sabbatical, Andrew helped set Much of the West‟s modern business school theories lose up Standard Chartered Asia Ltd, a merchant banking some of their relevance in a transitional fast-moving market subsidiary in Hong Kong. He was twice sponsored by the economy with Chinese characteristics. It is vital to have the U.S. Government for month-long visits to the US, support of actual business case studies on Chinese or Foreign- including a visit to brief multi-national Chairmen and CEOs on China post-Tiananmen Square. He was invited to brief invested enterprises operating in China.Additionally, the the Duke of York and the Lord Mayor prior to their recent Danone -Wahaha saga highlights the importance of respective China visits. He was sponsored by the cross-cultural management. This is of increasing application as Economist as a speaker at a China conference in Berlin more and more expatriate executives are working in China with the German Foreign Affairs Institute. Andrew was with their Chinese counterparts inside and outside their own included in UK‟s Who‟s Who since 2002. He was awarded enterprises. Many a time, not only communication but long- the Silver Bauhinia Star (SBS) in the July 2005 Hong Kong term relationship and profits can be „lost in translation.‟ Honours List. Andrew has graduate qualifications from the University of London, postgraduate qualifications from “China Insights”: Dear Andrew, our readers would love Cambridge University and the Harvard Business School, to hear for your future plans. Are you planning new and Solicitors‟ qualifying examination certificates from the books, events? Will you be in Beijing Olympics? Law Society, London. He speaks Cantonese and Mandarin, writes Chinese calligraphy, and paints classical Chinese My published articles on China are building up into a valuable paintings. China resource for use by entrepreneurs, senior executives, bankers, analysts, politicians, government officials, think-tank “China Insights”: Do you consider some domains like researchers, academia, and a variety of other decision makers Tourism or Energy as of key importance in the agenda and observers wanting to gain a deeper understanding of a of making business in China? rapidly changing China. This resource may be turned into a book, suitably embellished.I hope you‟re not asking me to I would choose Sustainable Development (including Green attend the Beijing Olympics as an athlete! Yes, I wish to be Energies), High-tech Manufacturing (e.g. precision able to attend the Beijing Olympics as well as the Shanghai components for car and aircraft engines), Fund Management, Expo, ideally with my family. Life Sciences, Creative Industries, and Tourism.

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“China Insights”: Any thoughts you would care to share on the publication of China Insights Magazine? We made a painful effort to develop a magazine on China themes targeting in various groups. And we would like really to thank you from the bottom of my heart for your great support.

Many thanks for your kind words. I am passionate about my mission to help promote a deeper understanding of China. I look forward to reading the China Insight Magazine in full as a final product. I would be happy to offer my thoughts about it in due course.

“China Insights”: Dear Andrew thank you for your time. It was an excellent talk. Would you like to give parting thoughts to our readers?

One out of every five persons on the planet is Chinese. Not long ago, few people in the West cared very much about the Inscrutable Chinese. Now part and parcel of 21st Century globalization, China is everywhere, every day. This is the title of my early article dated June 1, 2005 under CHINAwatch on my website www.andrewleunginternationalconsultants.com

Yet, there are still many people around the world thinking that China is too far away and mysterious for them to understand. Only recently I came across an article in a leading UK broadsheet. There is this small UK trade association for importers of prefabricated wooden planks. Its office is somewhere in the backwaters. Its telephone seldom rings. But one day, it seemed that the whole of the UK media was after them. The telephone almost went dead with overheating. The big story was that virtually all the wooden planks had gone to China. The association did not have to care too much about China. Now they know.Indeed, the word „Inscrutable‟ denotes despair in understanding. I am afraid that such despair will increasingly translate into business disruptions (as in the story above), loss of business opportunities or profits. It may even threaten the very survival of the business itself.

On the other hand, understanding China and her culture is exciting. It‟s fun. It is full of promise. It is poised to widen your personal horizon. And also your horizon for profits.

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