2017 the Bund financial summit

Belt and Road Initiative, China’s Insights and Bilateral Relationships

In November 2017, Fosun has hosted the Bund Global Financial Summit together with Yabuli China Entrepreneurs Forum. The honored guests include Fosun’s Chairman Guo Guangchang, and former President of France, Jean-Pierre Raffarin and other have talked about their insights and opinions regarding main topics, such the Belt and Road initiative and Sino-France bilateral relationships and etc. Below is an excerpt of their thoughts and ideas.


About Belt and Road Initiative


Guo Guangchang, Chairman, Fosun International:


Fosun's development strategy has always been "combining China's growth momentum with global resources". We used to spread industrial layout throughout the world and have obtained some accumulation. In the future, we hope to synergize the development of Fosun with the economic development of your countries based on the industry. In particular, we hope to realize win-win development with joint consultation and joint construction according to the Belt and Road initiative proposed by Chinese President Xi Jinping. The Belt and Road is a strategic thought to further promote globalization, but it is not only limited to the cooperative joint construction of the countries along the Belt and Road, and the construction of the Belt and Road is not only depending on investment or trade. Instead, it needs the force of finance to construct the financial Belt and Road. The financial Belt and Road is a bridge connecting us, a global company from China, with other companies from all over the world, and is a key field to promote. Of course, what is more important on top of that is the culture and friendship, as everybody agrees. The "better life" to be built in the vision of Fosun is about enjoying music, traveling around and sharing tasteful food with friends. "It is always a pleasure to greet a friend from afar". This world will become better with the trust and exchange in culture.”


Sean B. Stein, Consul General of the US in Shanghai:


"Ten days ago, the US President Trump met with the President Xi, in the hope of building a free, equal and reciprocal business and economic relationship. Fosun has made very good investments in the US, Europe, Israel and other parts of the world. Last year, its investment amount in the US was more than US$ 3 billion, including the investments in R&D, pharmaceutical, real estate and finance, fully achieving win-win result between China and the US. The pharmaceutical R&D of Fosun in the US is benefiting the US, China and beyond. Everyone is happy. The cooperation between the two countries in finance, economy and R&D is becoming closer and closer. We hope that in the future the capital flow will be freer and the global exchange smoother. ”


Dr. Eyay Prepper, Consul General of Israel in Shanghai


“I first came to China in 1992 when China and Israel just established diplomatic relations and Israel opened its Embassy in Beijing. Today, we are honored to witness a closer relationship between our two countries over the past 25 years. Shanghai has always been friendly to Judaism and the Jewish people. We are grateful to Shanghai for embracing us with warmth when we had to be away from home. Fosun’s investment in BondIT, a leading technology company in Israel, shows the intimate China-Israel relations, thanks to the pioneering role played by Fosun. Fosun’s leadership is forward-looking, and I believe Fosun will lead more projects in promoting China-Israel relations. The direct flight between China and Israel opened by Hainan Airlines is just one of the good signals. The cooperation between the two sides will certainly grow, and I hope I can express my feelings in Chinese one day.”


 David Aikman, Chief Representative Officer, Greater China, Member of the Executive Committee, World Economic Forum


Absolutely I’m very optimistic of the Belt and Road initiative.


 As you mentioned, it is a model, which is quite different, which is still in the process of formation.


The first thing I like is the fact that it is multi stakeholder. It’s not just government initiative or intern government initiative. It requires the private sector to be engaged. We talked about issues like corruption, NGOs and academics to be engaged. And in our experience in forty years of operation, this multi stakeholder, dialogue, trying to create mutual benefits and share benefits is a key success factor for this kind of initiative. We welcome new models of regional collaboration, the multi represents.


The second thing is an open platform. It’s a platform organization, platform initiative, which can join the strength of Chinese champions like Alibaba, or Didi, or wechat. You know, when you create a platform, which allows others to make new value and create new opportunities.


We see again these business models are more and more dynamic. They are outperforming the traditional competitors. And this is the first time you are thinking to an original cooperation, initiative. So, it’s quite an interesting experience we never expect.


The World's View about China's Economy


Jean-Pierre Raffarin, former President, France


The world economy is getting better and better. IMF has raised the indicators of economic development in 2016 and 2017 except for the US and UK. The development speed of the world economy (excluding these two countries) this year will reach 3.6%, higher than that of last year which was 3.2%, and will possibly reach 3.7% by 2018. EU’s economic development is also increasing significantly, with the development speed similar to that of the US. The emerging economies will have an even more considerable growth rate - 4.6%. In 2017, China will take the rag off, with the growth rate of 6.8%, higher than that of India. I think the objective of quadrupling GDP in China from 2010 to 2020 predicted by IMF and other countries in the world will be achieved, which means that the goal of development of double-hundred year is credible. Previously, someone forecasted that the China's economy will be subject to a hard landing. Such kinds of words were often ill-disposed. In addition to the liabilities and insufficient control of financial market highly concerned by the Chinese government and IMF, the Chinese government pays close attention to the liability ratio and the economy’s exposure to shadow banking. We also often talk that these problems need to be resolved urgently. The declaration by the Chinese government fully demonstrates it has been sufficiently aware of this problem and will take immediate correction actions.


I will refer to the latest book written by President Xi Jinping. I am one of the few Europeans who have read it. Every one of you, please turn to page 305 of the book, on which, President Xi has mentioned finance and our expectation, stating that we will continue to strengthen the BRICS ability of the whole nation, build a good and strong leadership, and enhance our consensus in the financial sector. This is a very important point of China's strategy, which covers four directions, namely, the four important factors for China currently. As China is a world power once again, the things important to China are equally important to the world.


There are four goals crucial for us. The first goal is that we must better realize the great rejuvenation of the Chinese nation, and besides, we should take the economic development and social stability as the main task in China's development. Obviously, the main purpose of finance is to serve the real economy. The second one is to continue to strengthen the social stability of China.

We experienced a financial risk in the US and a financial crisis hit Europe in 2008. Each of us has a similar experience. The Chinese government attaches great importance to and strictly manages such risk. Of course, it requires us to obey the law, and leaves no room for criticism. The financial circle must be market-oriented. In addition, all the economic and financial resources must be made the most of to promote social development. Regulation is necessary, but all of such monitoring work must be based on the scope of international cooperation. It is essential we have some important literature as a reference, and China speaks of a vision to demonstrate its contributions to the world. During the financial crisis in 2008, Europe received support from China. China bought a lot of Euros, which was an important factor for the world's financial balance. Therefore, we have the intention for further financial reform, which will affect everyone. French President Macron will pay a state visit to China in early January and will talk about this issue, about how to achieve greater safety of the reform for the economic and financial system of both sides, providing more means for development of the real economy and further improving the service to the real economy with our experience. We have made a commitment to the development direction after entering into the new international finance stage and we will jointly build such a financial system. This prospect is very positive.


Finally, I want to talk about the relationship between China and France. We have very good political relations. France today is a most reliable country and one of the most reliable partners of China. Every one cares about the consequences of Brexit. For the moment, we cannot predict the prospects of the UK. We need the UK, but we are also concerned about the consequences of Brexit. At the same time, we Europeans also feel anxious about our ally, the US. Sometimes their behaviors, measures or responses will surprise us.


Some of their extreme words make us nervous. In this aspect, both China and France are countries with clear viewpoints. We can work together at the UN Security Council and the G20 meeting, to bring peace and stability to the world, and give an ability of political dialogue. And such occasions can strengthen our positions and make them acceptable to others. Of course, the control of foreign exchange under China's new policies may cause some problems in terms of investment. If both China and Europe improve the quality of these investments, such really good investments are bound to win government support and public support and promote the development in the future. For example, Fosun’s investment in Club Med represents a combination of both economic benefits and the country's political interests, about which I feel very pleased.


At the same time, we shall not forget our young French President has launched a series of reforms, hoping to attract more foreign investment to change the labor protection system of France, facilitate our business cooperation and enable foreign entrepreneurs to better develop their business in France.