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ASIA SOCIETY’S 18TH ASIAN CORPORATE CONFERENCE REPORT Co-Organizers Corporate Benefactors

Tianjin Municipal People’s Government About Heidrick & Struggles International, Inc. Corporate Supporters Heidrick & Struggles International, Inc. is the world’s premier provider of senior-level executive search and leadership consulting services, including talent management, board building, executive on-boarding and M&A effectiveness. For more than 50 years, we have focused on quality service and built strong leadership teams through our relationships with clients and individuals worldwide. Today, Heidrick & Struggles leadership experts operate from The Leo KoGuanProgram Special Supporting Series on U.S.-China Rela- principal business centers in the Asia Pacific, Europe, Latin America and North America. tions at the Asia Society Organization For more information about Heidrick & Struggles, please visit www.heidrick.com. Additional Sponsors

AUSTRALIA & NEW ZEALAND INDIA TAIWAN

MELBOURNE BANGALORE TAIPEI Tel: +61 (3) 9012 3000 Tel: +91 80 40224140 Tel: +886 (2) 2757 6123 In Cooperation With Supporting Organizations SYDNEY MUMBAI Tel: +61 (2) 8205 2000 Tel: +91 (22) 6666 3021 THAILAND NEW DELHI AUCKLAND BANGKOK Tel: +91 (11) 2645 1010 Tel: +64 (9) 306 6630 Tel: +66 (0) 2664 1011

P.R. CHINA JAPAN

In Collaboration With BEIJING TOKYO Tel: +86 (10) 6598 8288 Tel: +81 (3) 4520 7800

Knowledge Partner CHONGQING Tel: +86 (23) 6300 1588 SINGAPORE Tel: +65 6332 5001 HONG KONG Tel: +852 21039300 Media Partners KOREA SHANGHAI SEOUL Tel: +86 (21) 6136 1988 Tel: +82 (2) 3430 6000 Lead Corporate Benefactors

For information on copies, permission to reprint or translate the Asia Society 18th Asian Corporate Conference Report and all other correspondence, please write to [email protected]

Copyright 2008, Heidrick & Struggles. All rights reserved. No part of this work may be reproduced in any form without written permission from the copyright holder. About the Conference

Asia Society’s 18th Asian Corporate Conference brought together top business figures and government leaders from around the world to explore Asia’s future in the context of China’s growing global influence. Held in Tianjin, China’s next emerging hub and focus of the Central Government’s third wave of economic development after Shenzhen and Pudong, this year’s conference sought to better understand the opportunities and challenges facing China’s economic development and to examine strategic models of sustainability.

About Asia Society

Asia Society is the leading global organization working to strengthen relationships and promote understanding among the people, leaders, and institutions of Asia and the United States. We seek to enhance dialogue, encourage creative expression, and generate new ideas across the fields of policy, business, education, arts, and culture. Founded in 1956, Asia Society is a nonpartisan, nonprofit educational institution with offices in Hong Kong, Houston, Korea, Los Angeles, Manila, Melbourne, Mumbai, New York, San Francisco, Shanghai, and Washington, DC. Asia Society is on the web at www.AsiaSociety.org. Foreword

It is a pleasure to celebrate the publication of this report on Asia Society’s 18th Asian Corporate Conference, “A New Era for Global Business: Sustainable Growth for China and the World,” held in Tianjin, China from May 28-30. Co-organized with the Tianjin Municipal People’s Government and The Wall Street Journal Asia, the conference illustrated the importance of a holistic approach to development and considered models of sustainable growth. This was the third time in 18 years that the Asian Corporate Conference has been held in mainland China, and it is remarkable how quickly China has developed during this period. With its continued capacity for growth, China has the potential to lead the way in promoting a new global era of sustainable business, incorporating environmental and social considerations into growth models. For more than 50 years, Asia Society has been devoted to strengthening partnerships and deepening understanding among peoples, leaders and institutions of Asia and the U.S. The annual Asian Corporate Conference is an important part of this effort. I want to take this opportunity to thank our co-organizers, sponsors, and partners for all of their assistance, and particularly Heidrick & Struggles for making this report possible. I would also like to thank the senior government and business leaders who came from all over Asia and the world to gather together in Tianjin. I trust that you will find this report informative and enjoyable. We look forward to receiving your comments on the report and suggestions for future conferences. Thank you for supporting the work of the Asia Society.

Dr. Vishakha N. Desai President Asia Society

2 Asia Society’s 18th Asian Corporate Conference Report Foreword

As Asia’s foremost leadership advisory firm, we have focused all of our energy and resources on partnering with companies and institutions in the region to drive improved business performance assisting them in identifying, securing, retaining, developing and aligning next generation leaders. Since our first Asian office opened in 1989, we have spent every available hour consulting with Asia’s eminent business leaders on their future challenges and opportunities. We are pleased to support Asia Society’s 18th Asian Corporate Conference as it explores Asia’s future in the context of China’s growing global influence. At an early stage Heidrick & Struggles identified China’s importance and great potential and perhaps not surprisingly was the first global executive search firm to establish an office in China. This conference provides an important platform and opportunity to foster an ongoing dialogue with Asia’s business leaders. This will provide us with additional insight and knowledge helping us to redefine leadership in the Asian context. We look forward to many more joint efforts with the Asia Society, as it works to strengthen relationships and understanding among the people, leaders, and institutions of Asia and the rest of the world.

Mr. Gerry Davis Regional Managing Partner, Asia Pacific Heidrick & Struggles

Asia Society’s 18th Asian Corporate Conference Report 3

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Sustainability

Charles D. Dalluge Feng Lun Alan Hepburn Michael Klibaner Consulting, Jones Lang LaSalle (preparatory) James L. McGregor Frank Newman Jing Ulrich Zhu Min Kai Nargolwala Zhang Xiaoming Limited Capital Corporation Janine Feng Victor Gao Howard Chao Cui Jindu Lawrence Fok Limited Exchanges and Clearing David Shuler

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, CEO, Asian Strategy and Leadership Institute Sustainable

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School of Humanities and Social Sciences, Nanyang Technological University Sciences, Nanyang Humanities and Social School of

Ronnie Chan Nicholas Platt John Thornton Wu Jianmin Michael Yeoh He Shushan Technological Development Area Bruce Quinn Pacific Limited Dan Rosen Woochong Um Development Bank Steve Chapman Cummins Inc. Thomas Farrell Tishman Speyer Tadakatsu Sano Trade and Industry (METI), Japan Ministry of Economy, Venu Srinivasan Kwok Kian Woon Kwok Kian Tu Weiming

Corporate

Ren Xuefeng Vishakha N. Desai SESSION Participants • • • • • Moderator John Bussey Closing Zhao Xiaoping Participants • • Moderator Shai Oster • • Moderator Rebecca Blumenstein SESSION Keynote • • Moderator Vishakha N. Desai SESSION Participants • • • • Introductory Pacific Asian

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Agenda 8 Innovation and Sustainability Survey Survey

“Innovation should be focused on meeting market needs, current and emerging, and targeted at ‘Changing The Game’.” - Delegate at Asia Society’s 18th Asian Corporate Conference

Heidrick & Struggles solves business b. Employee recruitment, motivation problems for clients every day. As innovators and retention (88%) in leadership advisory services, we have c. Improved investor relations and actively redefined and reshaped the leadership access to capital (81%) landscape for more than 350 of the world’s 3. Innovation is seen as key in promoting leading companies operating in the Asia Environmental Sustainability in companies’ Pacific. We will continue to foster dialogue corporate goals, either through managing with Asia’s business leaders and help shape the environment (34%) or as a driver of the leadership benchmark for multinationals Environmental Sustainability in general (26%). and Asian conglomerates in the region. 4. A corporate culture that fosters innovation As Knowledge Partner of Asia Society’s is seen as having an impact across the board, 18th Asian Corporate Conference, Heidrick & Struggles took the opportunity to ask on areas such as: delegates for their views on issues concerning a. Long term growth (98%) sustainability and innovation. Key findings b. Leadership development (98%) from interviews with 55 senior business c. Employee morale (96%) delegates from top international companies based in Asia and the United States are shown 5. Innovation is encouraged across all functions, below. Of the respondents, 87% were based especially in Business Strategy & Planning in the Asia Pacific, and 69% were male. (18%), Knowledge & Improvement (15%), Sales, Marketing & Customer service 1. Many business leaders acknowledge that (12%), Environment, Health & Safety environmental conscious investments can (11%) and Leadership coaching, retention lead to commercial profits (63%) while & development (10%). 31% see such investments as having no financial impact. 6. Encouraging employee initiative (45%) is seen 2. All the respondents agreed that being a as the main driver for fostering innovation, leader in Environmental Sustainability followed by financial incentives (20%). would improve their brand image and 7 On the other hand, sharing and applying reputation (100%), as well as have an expertise across the organization is seen as impact on areas such as: the main hurdle to fostering innovation a. Improved competitiveness and market (37%), followed by aligning implementa- positioning (89%) tion with market demands (27%).

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Keynote Address 10 Session Building Sustainable First-Class World Cities

Saskia Sassen, Robert S. Lynd Professor of Sociology, Columbia University; John So, Lord Mayor, City of Melbourne, Australia; Huang Xingguo, Mayor, Tianjin Municipal People’s Government, P.R. China; Grace Fu, Senior Minister of State for National Development and Education, Republic of Singapore; Sheila Dixit, Chief Minister, Delhi, India

Huang Xingguo, Mayor of Tianjin Municipal make a conscious trade-off between growth People’s Government, opened the panel and environmental sustainability. Having a session with a keynote address in which stable government has made this trade-off he spoke at length about the province’s successful, as Singapore now has 50% of green pressing development issues. Tianjin has a space. If it continues along it current path, water shortage problem and it needs major Fu believes Singapore is on track to conserve investments in sewage infrastructure. He its biodiversity. The Singapore government added that water should terminate in small has also set standards for green buildings. steam boilers that emit less carbon dioxide She said that to do this, legislation was than conventional boilers. deemed necessary, as the alternative market Following Huang’s address, Saskia Sassen, mechanism could have failed. Fu added that Robert S. Lynd Professor of Sociology at Singapore is proof that economic vibrancy is Columbia University, set the stage for the not mutually exclusive with building a livable, discussion by laying out three discussion areas: environmentally friendly city. the environment, economic globalization and Then it was the turn for New Delhi’s Chief inequality. And Sassen noted, city centers are Minister, Sheila Dixit, to describe her city’s on the frontline for all the three issues. development. For 2,000 to 3,000 years, New One of the panelists, Grace Fu, Singapore’s Delhi has served as the center of India. Today, Senior Minister of State for National it houses 16 million people, incorporating Development and Education, described the all cultures, languages and religions in India. city-state’s unique situation. Given its role as It’s also the seat of the central government. both a city and country with 4.5 million people The latter has both its pros and cons. Under squeezed into just 700 square kilometers, the Dixit’s tenure, New Delhi began a program conservation of resources has been forced upon to develop a greener city that involved mostly Singapore. Even during times of enviable women and children. Within nine years, New economic growth, Singapore had to constantly Delhi’s green cover has grown from 32 square

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environmentally friendly processes. Motorola be a leader in moving customers to healthier is also in the midst of developing a recycling alternatives. In terms of environmental program for used phones. sustainability, Minges noted that PepsiCo is well ahead of its goal to reduce water usage by Tim Minges, President of PepsiCo Interna- 20% by 2010. He argued that in the current tional for the Asia Pacific Region, related his business environment, most companies experience during his 25-year career with the actually set themselves higher sustainability company, noting that an area especially in targets than those enforced by governments. question was that of sustainability from the Sustainability is not just the right thing to perspective of a consumer goods company. do, but it is what people expect from major Minges noted that Indra Nooyi, Pepsi’s Chair- corporations, he said. woman, has rallied the company behind the mantra of “performance with purpose.” Al- Raymond Leung, Chairman and CEO of TDK China, noted that TDK has been active in though the company’s performance has been China for 40 years. It currently has 100,000 well documented, Nooyi wants PepsiCo to be items on the market, all of which are ‘green’. a force for good in the world as she believes In China’s highly competitive electronics it’s not enough just to be a high performing industry, companies have had to continuously company. PepsiCo has set itself three main upgrade or launch new products to stay ahead objectives for the future: healthier products, of the pack. As a result, Leung said, 10% of environmental sustainability, and talent sus- TDK’s products are new at any given time. tainability. With this need for new process development While PepsiCo will continue to be a and technology, TDK has no choice but to manufacturer and marketer of sweet sodas be even more innovative. To achieve this, the and salted snacks, the company also expects to Chinese company sponsors many university

“Suntech spends 5% of its profits each year on research and development, and also gives in-house awards to promote innovation. Suntech allows people to make mistakes. As such, innovation is also associated with high initial costs.”

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Rick Carew, M&A – Asia Reporter, The Wall Street Journal; Janine Feng, Managing Director (Hong Kong), The Carlyle Group; Victor Gao, Senior Officer, Zhongxin Hi-Tech Investment Fund Management Company (preparatory); James L. McGregor, Chairman and CEO, JL McGregor & Company

Private equity is a relatively new phenomenon research on private equity for over a decade. in China. Rick Carew of the Wall Street Journal Gao is confident the run on private equity still Asia informed attendees that the financial has a long way to go. numbers were not looking so good at that James MacGregor of JL McGregor & Company point in time. Globally, buyouts were down also tried to put private equity in perspective. 71%. However, in Asia ex-Japan, buyouts He said his Tiger Capital Management unit was were up 41% year-on-year. Totaling 147 deals, involved in some good deals two or three years the absolute numbers were still relatively small. ago. Nonetheless, he thinks the private equity China alone was up 22%. It’s still early days market in Beijing and Shanghai have become yet, Carew added, a sentiment that was widely pretty saturated. Investors now have to go out shared by the panel. to the provinces in order to find good deals. Janine Feng of the Carlyle Group explained MacGregor added that the Carlyle Group went her firm’s structure, which is very much from buy-outs to buy-in because they have not focused on the traditional Leveraged Buy been able to secure any good deals. Out business. Feng said that Carlyle has very Gao predicts the value of Renminbi funds to dedicated regional funds and does not have grow exponentially. Valued at about RMB75 a global fund. Because of its strong belief in billion at that point in time, he forecasts there integrating the company in the local culture, will soon be RMB150 billion in the market all its 40 professionals in greater China are through 10 to 12 funds; each one more native Chinese speakers. transparent and with a different focus. Victor Gao, of Zhongxin Hi-Tech Investment Gao informed the participants that the Social Fund Management Company, noted how Security fund had already indicated its intention his first excursion into private equity in Asia to allocate 20% of its capital to private equity. recently, at a time when no major local currency “We’ve gone from almost zero two years ago to all funds existed in China. All this changed two of China being a major source of private equity,” years ago. Now, China is rife with “private he said, adding that China will become a major equity with Chinese characteristics,” as he put exporter of funds, with RMB funds playing a it. The country has benefited from conducting more important role.

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g s s h h i d e o o e u u u E e f o b b e e o h h h o a n e n a a g b b b b h h l l o f m i t t t t i r r w B C C L M F Session How is Global Competition Driving the Interna- tionalization of Corporations & Investment?

Dan Hertzberg, Deputy Managing Editor and Editor, International, The Wall Street Journal; Laurence Barron, President, Airbus China; Ni Xiangyu, Vice Chairman, Administrative Commission of Tianjin Economic Technological Development Area; Michael Smith, Chief Executive Officer, Australia and New Zealand Banking Group Ltd; Shaun Rein, Managing Director, China Market Research Group; Yu Ping, Vice Chairman, China Council for the Promotion of International Trade

Asia is carving a new place in history as it that Chinese companies could be spreading embraces new unfamiliar markets and competes themselves too thin as they expand globally. globally. Does China have the necessary Michael Smith of Australia and New Zealand resources for success in worldwide markets? Banking Group Ltd. discussed the role of Ni Xiangyu of the Tianjin Economic international financial institutions in China. Technological Development Area explained He applauded the progress that has been that it would take time for most local achieved over the past ten years but stressed businesses in China to globalize, as they are that continuous progress was necessary. The currently still relatively small or medium-sized. influence of foreign banks on China has been Ni stressed that it is important for the Chinese positive. While there was once a concern that government to encourage these businesses to large domestic banks would lose market share expand beyond domestic boundaries. to their international counterparts, it has been Shaun Rein, Managing Director of China shown that the presence of international banks Market Research Group, addressed three has provided the competitive pressure to fuel main areas that he felt businesses in China the development of products, services and new and other Asian countries should focus channels. Smith emphasized the important on as they expand. These were branding, role that sovereign wealth funds would have in human resources and globalization. Chinese the future of China, as recent liquidity flows businesses are currently competing on from Asian and Middle Eastern sovereign price. Rein explained that brand building funds indicate that they can be a source of takes time and is more complex than price liquidity for world markets. competition. With regard to human resources Yu Ping, Vice Chairman, China Council issues, Chinese businesses should consider for the Promotion of International Trade, recruiting both locals and foreigners in order explained the roles of government agencies to overcome limited human capital in their and commercial organizations in helping quest to go global. Rein expressed his concern Chinese companies expand overseas. Inter-

22 Asia Society’s 18th Asian Corporate Conference Report Session national trade is strongly encouraged as it compete, but would require the right people helps developing economies and the overall to support it and market it internationally. balance of trade. Chinese businesses in turn All the panelists acknowledged that both get to improve their management skills. While Chinese and Asian companies face many internationalization has many benefits, it challenges as they internationalize. Ni is not easy and may not be suitable for all observed that, in spite of the progress that companies. Firms should first evaluate their China has made over the years, it had also performance potential before expanding made intangible sacrifices. Going forward, it globally. The government plays two important needs to strengthen international travel and roles. Domestically, it establishes policies, mutual understanding with foreign parties, incentives, taxation, financing schemes and while recognizing that market mechanisms rules for deregulation that encourage overseas are the best drivers of domestic economic expansion. Secondly, it negotiates with other development. Shaun Rein emphasized the governments to facilitate the operations of importance of education and training. By Chinese companies outside of China. To introducing liberal arts education programs maximize returns, companies should consider for example, Chinese university graduates greater participation with various chambers would be able to receive more exposure to and of commerce, trade organizations, accounting training in global ideas and concepts. Michael firms and other intermediary organizations. Smith agreed that access to global talents Laurence Barron, President of Airbus China, in China is limited at the moment and that addressed the issue of competition in the it would be good to groom globally-minded Asian aerospace industry and the lack of local talents. Laurence Barron stated that the options for large-scale investments. While local engineering industry was in dire need of China and Japan may be the largest markets basic English language education and technical in East Asia, countries such as Brazil, Canada training, two very important factors for foreign and Russia are emerging as strong competitors. business start-ups. China’s aerospace industry has huge potential, In closing, the panelists unanimously agreed but success will be dependent on capital that the business sector should be more investments and human resources. China involved with education policy makers in the possesses the determination and finances to Chinese government.

“The panelists unanimously agreed that the business sector should be more involved with education policy makers in the Chinese government.”

Asia Society’s 18th Asian Corporate Conference Report 23 Session Competing Models of Regional Economic Cooperation & the Sustainability of the World Trading System

Mary Kissel, Editorial Page Editor, The Wall Street Journal Asia; Pramit Pal Chaudhuri, Senior Editor, Hindustan Times; Clyde V. Prestowitz Jr., President, Economic Strategy Institute; Geoff Raby, Australian Ambassador to P.R. China

With rapidly growing global trade imbalances with regards to India’s acceptance of the Doha and stalled negotiations at the recent Doha Round. While China has been one of the most Development Round, there are concerns about active players in global trade, India is now the future of the world trading system. stepping up to this role as well and its sign-in Geoff Raby, Australia’s Ambassador to the on the Doha round could help further develop People’s Republic of China, began the panel by the global trading system. stressing that the proliferation of bilateral free trade agreements (FTA) impedes the development of a Prestowitz described current trade dynamics, multilateral system, and that current multilateral and globalization as a whole, as being on the rules are weak. Few of the FTAs are genuinely edge of a potential crisis. U.S. savings are at liberalizing. A completion of the Doha Round record lows while virtually all Asian countries negotiations would have greater potential gains. (with the exception of India) have extremely Clyde V. Prestowitz Jr., President of the high savings rates. In order to correct this Economic Strategy Institute, seconded Raby’s situation, the dollar will have to cease to be the argument and pointed out that commercial interests tend to support bilateral deals over world’s reserve currency. Doing so however, multilateral agreements. Prestowitz added that would require major adjustments that could opposition to bilateral deals could be driven lead to a crisis. Prestowitz went on to describe by many legitimate concerns and should not some short-term initiatives that the U.S. could be looked upon as being protectionist. Raby take in order to raise its national savings rate. agreed that the U.S. is not turning protectionist although the pressures to do so are enormous, The moderator, Mary Kissel, Editorial Page Editor given the growing trade imbalances. at The Wall Street Journal Asia, closed the session Pramit Pal Chaudhuri, Senior Editor of the by saying that the global economy is at a crossroad Hindustan Times, provided a more optimistic and that there seems to be no consensus on where perspective as he described the progress made the current multilateral trading system will lead.

24 Asia Society’s 18th Asian Corporate Conference Report Session The Future of Culture in the Age of Commerce

Vishakha N. Desai, President, Asia Society; Duncan Clarke, Chairman, BDA China Limited; Frederick C. Dubee, Senior Advisor, United Nations Global Compact; James Fallows, National Correspondent, The Atlantic Monthly; Kwok Kian Woon, Associate Chair (Academic) & Head, Division of Sociology; School of Humanities and Social Sciences, Nanyang Technological University; Tu Weiming, Professor, Harvard University

Asia Society President and panel moderator, economy to create a ‘market society’. Vishakha Desai, opened the session by Frederick Dubee, Senior Advisor of the asserting the significance of cultural issues United Nations Global Compact, responded within the greater context of the conference. by suggesting a different way of looking at Sustainability is a crucial topic as it pertains the session title. He said our generation could to business, the environment and society - and be remembered as one that thought critically within the context of society, the sustainability about ‘The Future of Commerce in the Age of culture cannot be ignored. How we address of Culture’. Dubee claimed that many in the these issues today will impact how the Asian business world are re-evaluating the complex region will be remembered hundreds of year relationship between commerce and culture. from now. Culture, she said, can be thought James Fallows, National Correspondent at The of as ‘the soul of a civilization’; it works in Atlantic Monthly, agreed with Dubee’s remarks conjunction with economics and politics to and noted that China’s development has had form national and regional identities. relatively little emphasis on cultural outputs Tu Weiming, a Harvard University professor compared to other booming economies. This and specialist in classical Chinese culture, is probably a good thing. The next stage of said that culture features prominently in the China’s evolution however, will increasingly Chinese system of governance, where the involve the cultural aspects of development. focus is on people and a harmonious society. Using the environment as an example, Fallows Tu noted an upsurge of interest in humanity- said that growing cultural awareness would be based programs from the media, the business crucial to China’s development and recognition community as well as intellectuals and on the world stage. academics. This can be thought of as a cultural Kwok Kian Woon, Associate Chair & Head renaissance. Tu however, warned against the of the Division of Sociology at the School politicization of culture and what some may of Humanities and Social Sciences, Nanyang describe as “the dictatorship of the engineer”. Technological University in Singapore, On the other hand, he also highlighted the departed from the general viewpoint by danger of allowing the success of a market pointing out that over the past five to ten

Asia Society’s 18th Asian Corporate Conference Report 25 Session

years, culture has been recognised as a source culture. Within the academic realm, Professor of creativity. Asia deserves greater recognition Tu also highlighted the growing scope of for its cultural diversity and its tolerance of religion in China. Christianity and Islam are divergent views. flourishing on university campuses, but the most important change is the rise of ‘engaged Duncan Clarke, Chairman of BDA China Buddhism’, he said. This seems to suggest a Limited, said that, with the advent of the reinvigoration of interest in certain elements Internet and the increased ability of people of classical Chinese culture. to mobilize, media in China has been moving from a top-down driven economic model Dubee asked whether much of the social and to a bottom-up one. The industry has been economic developments in China over the past undergoing revolutionary changes and is two decades could be attributed to a strong experiencing an influx of private capital. He cultural base. He noted that the expression stated that this raises the questions of ‘To of cultural values were evident in China’s what extent is this a good thing?’ and ‘Is domestic development and international this something to be afraid of?’. In addition, communications even in the late 1980s. Clarke noted the role of the Internet in Dubee went on to suggest that Asia could be the propagation of culture and the issue of the future source for new business models that intellectual property rights in developing promote increased stakeholder development. countries such as China. Traditional media Fallows commented that countries and cultures can also be revolutionized by cultural changes of growing influence often develop their own through the bottom-up model. identities and legacies. While these are yet In response to Clarke’s comments, Professor unclear for China, he recognized that its effort Tu noted the growing search for new cultural to bring its people out of rural poverty is an identities; identities that are open and self- essential component of China’s rise. reflective, with strong underlying nationalist Kwok Kian Woon closed the discussion with and patriotic sentiments. He pointed out the a note of caution against viewing cultural growing collaboration between business and progress as an instrument for commercial or cultural establishments in many nations. The political purposes. Creativity, he said, can be study of classical texts and traditional culture thought of as an ecosystem. He emphasized in the pursuit of wealth and commercial the role of conservation in fostering creativity success is deeply rooted in the East Asian and culture.

“Culture can be thought of as ‘the soul of a civilization’; it works in conjunction with economics and politics to form national and regional identities.”

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systems such as those found in Tokyo and The panel discussion concluded by saying that encouraged a lower reliance on luxury cars. greater collaboration between the government, Venu Srinivasan, Chairman and Managing private sector and consumers is needed in Director of TVS Motor Company, was order to overcome environmental challenges. particularly concerned about the issue of The government should educate the public on ‘urban waste’. Urban waste in India and the increase in cost of consumer products as China is expected to exceed that of the a result of fostering sustainable development. United States over the next few years. There is currently an acute water shortage in India. All the panelists also acknowledged that it As much as 50 percent of water sources in its is unrealistic to expect China and India to cities will be depleted in 20 years. Without follow a similar path of development as proper urban planning, India’s city dwellers the United States, Japan and South Korea. have to grapple with issues such as improper Instead, both countries would need to look sanitation facilities, illegal housing, health for more innovative and localized solutions, problems and illiteracy. Srinivasan concluded by saying that curbing urbanization is not the with the help of proper policy guidelines, solution, and that other alternatives needed transfer of knowledge and technology and a to be discussed. genuine commitment across all sectors.

“Both India and China need to look for more innovative and localized solutions, with the help of proper policy guidelines, transfer of knowledge and technology and a genuine commitment across all sectors.”

28 Asia Society’s 18th Asian Corporate Conference Report Session Sustainable Growth and Energy

Shai Oster, Correspondent, The Wall Street Journal; He Shushan, Chairman, Administrative Commission of Tianjin Economic Technological Development Area; Bruce Quinn, Vice President, Strategic Development, Rockwell Automation Asia Pacific Limited; Dan Rosen, Principal, China Strategic Advisory, LLC; Woochong Um, Director, Energy, Transport, and Water Division, Asian Development Bank

Shai Oster, correspondent for The Wall Street is expected to overtake the U.S. as the largest Journal and session moderator, opened the global consumer of energy. Energy security discussion by commenting on the current and is crucial for national security, but the ADB future status of global energy consumption. If believes the issues of climate change and living standards in China reached that of the energy security can co-exist. He warned China U.S. today, he said, the world would need to against replicating the American model of produce double the amount of oil it currently transportation and encouraged it to look produces. That would be impossible to achieve. towards the development of renewable energy China’s development is not slowing down and fossil fuels. The three challenges to and energy efficient resources are not being managing energy consumption, he said, were implemented widely enough to stave off future financing, technology and policy reform. threats. The crucial question revolved around Dan Rosen, Principal of China Strategic how China can sustain its pace of growth with Advisory, LLC, pointed out that China’s this in mind. energy dilemma could not be resolved with Woochong Um, Director of the Energy, Water, policies. While efficiency improvements on and Transport Division of the Asian Develop- a macro level are crucial, the need for reform ment Bank (ADB), began by highlighting that within select sectors is even more pressing, stable and affordable energy sources are key especially within the heavy industries. Much of to the ADB’s efforts at reducing poverty in the nation’s energy consumption is driven by the Asia Pacific region. Future global energy structural shifts in investments towards heavy demand, which is expected to grow by 55%, industries, while price and scarcity are related is daunting. Global warming will compound to the volatility in domestic demand. These the problem, which will be further exacerbated need to correspond with energy concerns. The by the industrialization boom in China and banking sector, he said, needs to be sensitive other developing countries. By 2010, China to the structural needs of China while the real

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Session 32 Co-Organizer Corporate Benefactors

Tianjin Municipal People’s Government About Heidrick & Struggles International, Inc. Corporate Supporters Heidrick & Struggles International, Inc. is the world’s premier provider of senior-level executive search and leadership consulting services, including talent management, board building, executive on-boarding and M&A effectiveness. For more than 50 years, we have focused on quality service and built strong leadership teams through our relationships with clients and individuals worldwide. Today, Heidrick & Struggles leadership experts operate from The Leo KoGuanProgram Special Supporting Series on U.S.-China Rela- principal business centers in the Asia Pacific, Europe, Latin America and North America. tions at the Asia Society Organization For more information about Heidrick & Struggles, please visit www.heidrick.com. Additional Sponsors

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