On Dec 4-6, Dr. Guo Wanda, Executive Vice President, and Ms. Carol Feng, Director of International Cooperation Department, attended the 6th World Chinese Economic Forum. Dr. Guo addressed in the first Session: “China’s Role in the World and Regional Economy”, and had a lively interaction with other speakers from Britain, Australia, Thailand, Malaysia, Indonesia and Kuwait. The Forum is themed with “China, ASEAN and the World Economy: China’s New Global Role, Achieving Balanced Growth, Sharing Mutual Prosperity”. It is an annual event organized by the Asian Strategy and Leadership Institute promoting linkages between the East and West and China and Southeast Asia. CDI is one of the supporting organizations of the Forum. 

Mr. Stephen Olson, Managing Director of Asia, ESI visited CDI and was welcomed by Vice President Qu Jian, along with Ms Feng Yueqiu, Director of International Cooperation Department. Dr. Qu answered questions towards foreign direct investment (FDI) raised by Mr. Olson one by one. Dr. Qu also analyzed the reasons why FDI made such a great success in China and the challenges of FDI in different phases from various aspects including the history of China’s FDI policies and its evolvement especially after China entered WTO, the preferential policies for foreign investment enterprises, the role of SEZ, etc.

A delegation of 33 students from 4 Swiss colleges including the University of Applied Sciences, Western Switzerland, led by Professor Claudio Boer and Stefan Dingerkus visited CDI. Dr. Guo Wanda, the Executive Vice President of CDI gave a lecture on “Chinese Economy and China’s Special Economic Zone: its Role for the Transformation of China”. The lecture consists of 4 parts: Chinese Economy in the Past, Chinese Economy in the Future, China’s SEZ and Shenzhen’s Role of SEZ for China’s Transformation. Dr. Guo also had an extensive discussion with the students on China’s plan economy, opening-up policy, household registration system (“hukou”), etc.

CDI was releasing its first joint research report in cooperation with Economic Strategy Institute (ESI), a Washington DC-based, private, non-profit, non-partisan public policy research organization. The report entitled "Industrial Policy and Rebalancing in the US and China" was released by Mr. Stephen Olson, Managing Director in ESI Asia, and Dr. Guo Wanda, Executive Vice President of CDI. The press conference was hosted by Mr. Tang Huijian, Chairman of Shenzhen Soft Science Development Foundation, which provided the sponsorship for the joint study. Ms. Carol Feng, Director of International Cooperation Department of CDI gave a brief introduction of the background of the project. Journalists from 22 domestic media participated in the press conference.

Mr. Olson and Mr. Guo elaborate the main structure and viewpoints of the report on the following four aspects: 1) How has the issue of imbalances contributed to the grindingly slow recovery from the Global Financial Crisis, and to what extent is it potentially setting the stage for future economic calamities of equal or greater magnitude? 2) What have been the respective approaches to industrial policy in both countries? 3)   How have these industrial policies helped fuel the build-up of dangerous imbalances? 4) What are the practical, “real world” adjustments that both countries need to make to their industrial policies in order to gradually and responsibly begin to reverse the imbalances?

Mr. Dominic Trindade, Australian Consul-general in Guangzhou, paid his first official visit to Shenzhen from June 11th to 12th and had a luncheon with CDI Executive Vice President Guo Wanda and Ms. Carol Feng, Director of International Cooperation Department. The Consul General planned this visit in order to renew and further develop the Australian Consulate’s relationship with the Shenzhen municipality and promote mutual development with CDI.

The China-Malaysia High-Level Economic Forum was held at the Great Hall of the People in Beijing, China on to boost bilateral relations into a comprehensive strategic partnership. Datuk Seri Najib Tun Razak, the Malaysian Prime Minister and Datuk Seri Mustapa Mohamed, the International Trade and Industry Minister witnessed the exchange of documents to mark the signing of 11 business-to-business deals, which involves railway, national defense, finance and green resources. On Behalf of China Development Institute, Ms. Carol Feng, Director of International Cooperation Department, signed a MOU with the Asia Strategy and Leadership Institute, on establishing China-ASEAN think tank network.

Dr. Sanjin LEE, Director General of Bureau of Technical Barriers to Trade Affairs, Korean Ministry of Trade, Industry & Energyand Mr. Choi Yeonwoo, Commercial Consul of Korean Consulate-General in Guangzhou visited CDI and was welcomed by Executive Vice President Guo Wanda, along with Ms. Carol Feng, Director of International Cooperation Department. Dr. Guo introduced China’s economic status quo and policies to the delegation. He also analyzed the driving forces and development mode of Shenzhen as a successful example among the SEZs. They also had a brief discussion on migrant workers, China’s Central and Western development strategy and industrial clusters, etc.

Shenzhen Financial Centre Summit was held in Bonn, Germany and Zurich, Switzerland from January 14th to 16th by China Development Institute (CDI), Shenzhen Stock Exchange and Shenzhen Ping An Bank. The Summit was aimed at showcasing the development achievements of Shenzhen through international exchanges. It covered a wide range of topics including the liberalization of finance sector and Chinese currency, bank reform and capital market, and the possible approach of China’s financial centers, etc. Experts from CDI gave speeches on economic status quo of China and Shenzhen City. Over 100 specialists from research institutes, universities, and financial institutions have participated in the discussions. The Shenzhen Financial Centre Summit is held in different financial centres around the world every year since 2010. Previous sessions have been convened in Paris, Washington, Toronto, Luxembourg, etc.

Prof. Mthuli Ncube, chief economist and vice president of the African Development Bank paid a visit in Shenzhen and had a roundtable discussion with Dr. Liu Guohong and Dr. Peng Jian, Deputy Directors of Regional Development Department, and Prof. Wang Kai, the CDI consultant. CDI research fellows shared their observations on the evolution of China’s Special Economic Zones (SEZs) and gave out a brief but comprehensive roadmap for developing industrial parks/zones in African countries.

Ms. Sonja Panday, Acting Program Manager of Canadian Embassy, Mr. Stephen Doust, Consul of Guangzhou Consulate General, and Mr. Charles Letang, Economic Officer of Hong Kong Consulate General paid a visit to CDI. Dr. Yu Lingqu from the Centre for Finance Research elaborated the financial policy measures that have been issued in Qianhai Area, and its innovative reforms in RMB internationalization. Both sides discussed the opportunities that may bring about to the Canadian business in Guangdong Province.

The 5th World Chinese Economic Forum was held on 3rd and 4th in Kuala Lumpur, Malaysia. Dr. Guo Wanda, the Executive Vice President, made a presentation on the China’s Economy: Rebound in Short Run And its Growth Trend in Long Run.

The forum is co-sponsored by the Malaysian International Trade and Industry Ministry, the Asian Strategy and Leadership Institute and the China International Trade Promotion Committee Liaison. Former Malaysian Prime Minister Mahathir Mohamad, Chinese Ambassador to Malaysia Chai Xi have attended the Forum and made speeches. 500 representatives from government, business and academia have had extensive discussion on China’s partnership with the world. China-ASEAN relationship and issues related to education, finance service, and enterprise social responsibility.  

During the conference, Mr. Mahathir presented a “Supporting Organization Award of the World Chinese Economic Forum” to CDI.

Mr. Kapil Kapoor, Director of Strategy Office, and Mr. Mateus Magala, Strategy Advisor of the African Development Bank paid their first visit to CDI. African countries are now investigating China’s approaches and experiences in urbanization and industrialization. A key point is how to improve the productivity of talents and labor force. Dr. Guo Wanda, the Executive Vice President showed the history of Shenzhen’s economic innovation and its talent structure, and shared Shenzhen’s experiences and lessons in the process of development.

Mr. Stephen Doust, the newly-appointed Political, Economic and Public Affairs Consul of the Consulate General of Canada in Guangzhou, paid an introductory visit to CDI. Dr. Guo Wanda, the Executive Vice President gave a brief introduction of CDI and its major research focus. The two sides agreed to explore an extensive network between CDI and Canadian think tanks.

Dr. Guo Wanda, Executive Vice President of CDI, and Ms. Carol Feng, Director of International Cooperation Department, visited the Macau Foundation and met with Dr. Wu Yongliang, President of the Foundation. Dr. Guo paid the visit to learn about the operation and major projects of the Macau Foundation. Both institutions agreed to further their cooperation in the future research on Mainland-Macau cooperation.

Ms. Xie Wanting, Consul of Singapore Consulate-General in Guangzhou visited CDI and had a discussion with Dr. Guo Wanda, Executive Vice President of CDI and Ms. Yu Jun, the research fellow, on the development of three New Areas in South China, including Qianhai of Shenzhen, Hengqin of Zhuhai, and Nansha of Guangzhou. Dr. Guo and Ms. Yu made comparative analysis on the three areas and their different policies to clarify the investment environment in these areas.

Shenzhen Financial Centre Development Summits had been held in Washington and New York Stock Exchange on July 1, co-hosted by China Development Institute (CDI), Economic Strategy Institute (ESI), and the Financial Industry Development and Service Office of Shenzhen Municipal People's Government.

At the summits, experts from CDI and Shenzhen Stock Exchange gave presentations on China financial centre development to more than 60 specialists from the U.S government, senate, think tank and financial institutions. China is moving steadily to liberalize its currency policies and to make the yuan eventually into a reserve currency as an alternative to the dollar. In July 2012, the State Council officially approved the policy of Shenzhen Qianhai development and opening, and implemented the preferential policy of “first implementation and first trial” in six fields: finance, taxation, law, human resources, medical services, and telecom. It means that Qianhai will serve as an “experimental site” in the opening of the Chinese finance industry, and will play a leading role in the internationalization of RMB.

China, as the world’s largest developing country, and the U.S., as the world’s biggest developed country, need to play a major role in bringing the global economy back to the recovery track. Both countries need to have more extensive exchanges and cooperation in the financial field. The Shenzhen Financial Centre Summits gave a good opportunity for researchers and investors from both sides to gain more understanding and information about the progress of RMB liberalization and financial system reform of the two countries.

On June 28, CDI Delegation visited New York Stock Exchange and had a roundtable meeting with Mr. Glenn, Senior Vice President, Financial Compliance and Mr. Marc, Managing director, International Listings-Asia Pacific. On July 2, CDI delegation visited Toronto Stock Exchange (TSX) and had talks with Mr. John Justin, Director of Global Business Development on the business development and Ms. Olga Trofimova, Head, International Trading and Research. 

As invited by Taiwan Bureau of Industry, CDI research fellows, along with experts from China Association of Development Zones (CADZ) paid a visit to Yunlin Science Industrial Park and Southern Taiwan Science Park to learn their experiences, and had academic exchange with Manufactures United General Association of Industrial Park and Taiwan Institute of Economic Research.

Mr. Li Hao, Honorary Chairman of CDI and Former Secretary-General of Shenzhen, Mr. Tang Jie, Vice Mayor of Shenzhen met professors and research fellows from Institute for China and Global Development, Hong Kong University in CDI. The Heads of Qianhai Administration Bureau, Shenzhen DRC and Building Research Institute made presentations on the development of Qianhai, Shenzhen International Low-carbon City and green building concept respectively. 

Mr. Joaquin Lim, Executive Director at California Institute of Public Administration (CIPA) and Former Mayor of the Walnut City paid a visit to CDI. The CIPA delegation was welcomed by Vice President Dr. Wu Liangcheng, along with Director of CDI Training Centre, Mr. Chen Hanzhou. CIPA and CDI Training Centre signed a Cooperation Memorandum on Family Business Training Courses. Both sides reached a consensus on the future cooperation on government official training and business administration training.

Invited by the government of Ethiopia, CDI research fellows, along with experts from China Association of Development Zones (CADZ) and Suzhou Industrial Park paid a visit to Ethiopia and provided consulting service on establishing Special Economic Zones in the country. The delegation was arranged to meet with 18 government departments and 16 enterprises respectively, and had site visits to some candidate cities. The expert team is expected to conduct further consultancy concerning the SEZ Master Planning, investment promotion, administration, supporting service and training, etc.

CDI Delegation, led by Prof. Feng Subao, Executive Director of Academic Committee, visited Chatham House (The Royal Institute of International Affairs) in the UK. The Research Director of International Economics, Dr. Paola Subacchi and her team met Prof Feng and other 6 research fellows. After two presentations made by the British counterparts on transatlantic relationship and Italy’s economic recovery, Prof. Feng introduced the financial innovation of Qianhai, Shenzhen, and the progress of RMB internationalization. 

Ms. Catherine Webb, Economic & Trade Policy Counselor of British Embassy in Beijing, and Ms. Julia Skorupska, Consul Political & Economic, British Consulate-General Guangzhou paid a visit to CDI to learn about the Qianhai’s strategic planning and competitiveness. Dr. Guo Wanda, Executive Vice President of CDI made an explicit explanation on the latest policy measures issued by the central government.

Dr. Pilsoo Choi, Associate Research Fellow of Centre for Emerging Economies Research, Korea Institute for International Economic Policy visited CDI to discuss with Mr. Zeng Zhen, the Executive Director of Urbanization Department on China’s land reform and urbanization.

Mr. Atul Keshap, U.S. Senior Official for APEC, Ms. Jennifer White, Economic and Energy Officer of Bureau of East Asian and Pacific Affairs visited CDI and had an in-depth discussion with Dr. Guo Wanda, Executive Vice President of CDI on China’s industry planning and experimental reform in Qianhai Area. 

Mr. Victor Radujko, China Analyst of Government of Canada Privy Council Office, and Ms. Sumeeta Chandavarkar, Consul of Canadian Consulate-general in Guangzhou visited CDI and discussed the economic development of Guangdong Province and China with young research fellows.

Mr. Huang Yiheng, Deputy Consul of Singapore Consulate-General in Guangzhou, and Mr. Huang Mingjun, Deputy Director of South China Section, International Enterprise Singapore visited CDI. Dr. Guo Wanda, the Executive Vice President, briefly introduced the development of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, and made a comparison between Qianhai and other economic development zones such as Nansha in Guangzhou and Hengqin in Zhuhai. 

The 4th World Chinese Economic Forum was held on 12th and 13th in Melbourne, Australia. CDI as the think tank partner organized a delegation of 6 staff to attend the annual meeting. Dr. Guo Wanda, the Executive Vice President, made a presentation on the macro economic trend of China, and challenges and opportunities the manufacturing industry has faced in China.

The forum is held by the Asian Strategy & Leadership Institute (ASLI) with support of the State of Government of Victoria, Australia. The Rt. Hon. Tan Sri Muhyiddin Yassin, Deputy Prime Minister of Malaysia, Mr. H.E. Alex Chernov, Governor of Victoria, and the Hon. Ted Baillieu, Premier of Victoria, have attended the Forum and made Speeches. 200 representatives from government, business and academia have had extensive discussion on China’s partnership with the world. Global entrepreneur competitiveness and issues related to agriculture, education, and infrastructure development.  

On the sideline of the meeting, CDI delegation has met Mr. Sidney Hordern Myer, Chairman of the Asialink Centre, Melbourne and its CEO Ms. Jenny McGregor to explore the possibilities of future cooperation. 

France-China Friendship Association Delegation led by its President, Mr. Alain Labat, visited CDI. Dr. Guo Wanda, the Executive Vice President, made a presentation on the development of Shenzhen as Special Economic Zone. He also had a discussion with the delegation on RMB internationalization, maintaining the competitiveness of Shenzhen SEZ, etc.

Mr. Roger Donnelly, Chief Economist of Export Finance& Insurance Corporation, Australia, together with Mr. Tim Lindenmayer, Vice Consul of Australian Consulate-General in Guangzhou visited CDI and had a brief discussion with Dr. Guo Wanda, Executive Vice President of CDI on the macro economic situation of Shenzhen and its industrial restructuring.

Qianhai readies itself for the big league with investor-friendly policies

If you take subway line 1 in Shenzhen, get off at Qianhai Bay and try to exit the station, subway personnel will ask you to read the notice on the wall carefully before you leave. The main point of the notice is that the surrounding area of this station is still under construction, and hence no buildings or transportation are available outside the station.

And you will understand what the notice really means the moment you step out of the station, the only building within a 1-kilometer radius. Cranes are busy working, while trucks loaded with earth keep coming and going. In the distance, on the other side of the bay, the skyscrapers of Hong Kong loom on the horizon.

Before 2010, no one could have imagined that this remote area would soon become an international financial hub connecting Hong Kong and the mainland. By 2015, the expected output volume of this area is 50 billion yuan ($7.9 billion, 6.3 billion euros), while in 2020, the amount is expected to triple to 150 billion yuan.

Qianhai, the 15-square-kilometer area in the western coast of Shenzhen, has been in the limelight recently after it was announced that it would be the testing ground for the next set of financial innovations in China.

Unlike previous financial innovations in Wenzhou of Zhejiang province, which aimed at transforming private capital to industrial capital, Qianhai's project focuses on accelerating the internationalization of renminbi by establishing closer linkage between Shenzhen and Hong Kong, and strengthening Hong Kong's role as an offshore business center for renminbi.

"Financial liberalization, including the promotion of renminbi as an international currency, is the centerpiece of the initiative. It reveals China's broad reform agenda that can eventually be extended nationwide," says a recent research report published by Citibank.

Guo Wanda, executive vice-president of China Development Institute in Shenzhen, says: "It is an important stepping stone for China to accelerate renminbi internationalization. Qianhai is like a pioneer for the mainland's efforts in gradual achievement of full renminbi convertibility."

According to the official approval given by the State Council on June 27, Shenzhen's Qianhai will be known as Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. The State Council has given "national strategic importance" to the reform.

Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission, says that the pilot measures to be launched in Qianhai had been carefully designed to reflect Hong Kong's position in the area's development and had also taken into consideration Hong Kong's opinion and demand during the policymaking process.

The series of pilot measures will be in areas such as finance, taxation, legal, human resources, education, healthcare and telecommunications.

Companies in Qianhai will receive help from the central government for issuing yuan bonds in Hong Kong, while the Hong Kong equity investment fund will be allowed to develop in new ways in Qianhai.

The entry thresholds for financial institutions from Hong Kong will also be lowered under the Closer Economic Partnership Agreement.

"When the idea of developing Qianhai area was first put forward, many people were concerned that Qianhai might be a threat to Hong Kong's financial industry once it is fully developed," Guo says. "As a matter of fact, there is nothing to worry about. Qianhai is designed to strengthen Hong Kong's role in the global market, since it focuses on innovation of RMB internationalization."

The Hong Kong Monetary Authority has welcomed the plans to facilitate cross-border use of the yuan and its flow between the mainland and Hong Kong.

"We believe that cooperation between Hong Kong and Qianhai can create a win-win situation for both," says Peter Pang, deputy chief executive of the HKMA. "Hong Kong is developing into a global yuan offshore center. Qianhai's innovation in yuan's cross-border business can be another engine for Hong Kong's yuan offshore business."

Hong Kong is the largest offshore holder of the yuan. According to statistics from the HKMA, Hong Kong had yuan worth 673.7 billion yuan by the end of May. It is also the largest offshore yuan bond market. A total of 254.4 billion yuan bonds were issued since 2007.

"We are glad to see the central government is contemplating measures to allow Hong Kong's banks to extend yuan loans to companies and projects in Qianhai, and we hope that the usage of the loans can be enlarged to other areas of the mainland," Pang says.

On July 16, 37 companies, including 12 Hong Kong companies, signed agreements with Qianhai Administration Bureau, worth 220 billion yuan. Eighteen of them are financial institutions including Hang Seng Bank, HSBC and Citibank.

Anita Fung, CEO of HSBC Hong Kong, says that Qianhai's exploration in luring cross-border yuan will be a new engine for the internationalization of yuan.

"HSBC, together with the banking industry in Hong Kong, will utilize its experience in offshore yuan business to the fullest and work out professional products and services for mainland companies," she says.

According to Fung, HSBC's offshore yuan cross-border trade settlement has so far covered 59 markets in the world, accounting for three-fourths of total markets the company has covered.

"HSBC has the broadest yuan trade service network among foreign-funded banks. I am sure that with our participation in Qianhai, a better environment, which can stimulate the growth of entity economies, will be built," she says.

A detailed regulation of what and how innovative financial policies will be applied in Qianhai has not been made available yet, but financial institutions in Hong Kong have started to look forward to the future benefits and a bolder innovation in Qianhai is expected by all parts.

Guan Yanping, vice-chairman and governor of Hang Seng Bank (China), says that Hang Seng Bank is looking forward to cooperation with Qianhai, and hopes Qianhai can lower thresholds for foreign banks to conduct mixed operation in the mainland.

Hang Seng Bank's business areas in Hong Kong include banking, securities, funds and insurance, but up to now, it does not have much space in mixed operation in the mainland.

Guan says the company will come out with innovative products in Qianhai to attract more cross-border yuan business.

Guo from the China Development Institute says apart from cross-border yuan loans, foreign banks are expecting more business opportunities in the mainland.

If they are allowed to conduct mixed operations in Qianhai, it would be an unprecedented development opportunity for them, he says. "However, mixed operation is complicated. It will take a long time for relevant authorities to sort this question out, so the progress won't be achieved within a short time."

Xie Yonghai, executive vice-president of BOC International Holdings, says a super monetary authority should be established in Qianhai to conduct mixed financial operations, with banking, securities and insurance as sub-divisions.

"As an experimental zone for China's financial industries, Qianhai should not stick to the old tradition in the mainland that puts industries under the financial category separately, as it will hamper financial innovation. It should join the international trend that allows experiments in mixed operation," he says.

Academics also picture a colorful future for Qianhai, with some bold recommendations.

Chan Yanchong, associate professor at the Department of Management Sciences in the City University of Hong Kong, says that the Hong Kong Exchanges and Clearing, which operates the Hong Kong stock exchange, should open a subsidiary in Qianhai.

"Actually, every brokerage and bank in Hong Kong should have subsidiaries in Qianhai", so that mainland investors can access and invest in Hong Kong's stock market from Qianhai, he says.

In this way, Chan says, the money that is used to invest in Hong Kong securities technically stays onshore all the time, making it safer and easier to control.

Though the blueprints promise a bright future for Qianhai, there are still some questions that linger.

One of the most frequently asked questions is how Qianhai is going to treat financial institutions from other regions, as its innovative financial policies are not exclusive to those from Hong Kong. If all foreign institutions are to be treated equally, how does Qianhai ensure its role of facilitating Hong Kong's position as an yuan offshore center?

In recent years, Singapore and London have also been trying to take positions as offshore centers for yuan trading.

According to Guo, Hong Kong has around 600 billion offshore yuan, while the figure is 100 billion yuan for Singapore and around 10 billion for London.

"Of course, Qianhai is open to every eligible foreign institution," says Wang Jinxia, liaison director of Qianhai Administration Bureau.

"If financial institutions from Singapore and London are interested in Qianhai, they are also welcome. However, Hong Kong's advantage in becoming the yuan offshore center is incomparable."

According to Wang, Qianhai has strict standards to define eligible companies, which can enjoy the innovative policies.

For the first phase of construction, Qianhai is planning to build up a functional area of 2.5 square kilometers.

The thresholds for companies to enter this area, according to Wang, are those capable of holding a working area of more than 100,000 square meters with more than 10 billion yuan of total investment, and can provide annual revenue of more than 600 million yuan in Qianhai in the second year.

"The standards are quite steep and ensures that every company which comes to Qianhai passes muster. The plan has been proposed to the National Development and Reform Commission, and hopefully will be approved by the end of this year," Wang says.

The work on filling the sea will be finished by the end of this year, and then construction of a traffic hub will start.

"2013 is the beginning of the second step of Qianhai construction. A total of 12 subway lines will be built and by 2016, it will take only 13 minutes to take a subway from Qianhai to the Hong Kong International Airport," he says.

Other than financial areas, Beijing will also support Hong Kong's educational institutions to establish schools in Qianhai. Medical institutions in Hong Kong are also being encouraged to set up hospitals there, while telecom companies from Hong Kong have also been urged to set up ventures in Qianhai.

China Daily 09/07/2012 page12

Dr. Jihyun Jung, Research fellow of China’s Regional and Provincial Research Group, Center for Emerging Economies Research, Korea Institute for International Economic Policy visited CDI and had a discussion with Mr. Zhang Yuge, Director of Economic and Social Development Research Centre on the impacts of enterprises in Hong Kong and Shenzhen after the signing of “Closer Economic Partnership Arrangement”(CEPA) .

Mr. Weldon Epp, Consul General of Canadian Consulate-General in Guangzhou visited CDI. Dr. Guo Wanda, the Executive Vice President had a luncheon with the Consul General discussing on the industrial upgrading and transferring, and their economic and social impacts.

Mr. Tim Lindenmayer, Vice Consul of Australian Consulate-General in Guangzhou visited CDI and had a brief discussion with Dr. Guo Wanda, Executive Vice President of CDI on the development of Shenzhen’s macro economy and manufactory industry in Shenzhen.

The World Bank Delegation on "Upgrading Competitiveness of the Soft Industry in African Countries" has paid a visit to CDI. The delegation was aimed at learning experiences of the Shenzhen government's policy on encouraging enterprises to develop processing trade upon the establishment of Shenzhen Special Economic Zone. Dr. Qu Jian, Vice President, and Dr. Liu Rongxin, Director of Department of Regional Development Planning have introduced the evolution of the four generations of Industrial Parks in China and made a comparative analysis on their business models,planning orientations as well as the planning criteria.

Ms. Julia Skorupska, Consul Political & Economic, British Consulate-General Guangzhou paid a visit to CDI. Dr. Guo Wanda, Executive Vice President of CDI. Dr. Guo made an analysis on the overall economic development of Shenzhen in the first quarter of 2012. Faced with the complicated and volatile international environment and the new emerging challenges in domestic economic development, the Shenzhen governments has implemented policies and measures to keep making progress while maintaining social stability.

Dr. Song Leilei, Senior economist of the Office of Regional Economic Integration, Asian Development Bank held a seminar on World Economic Outlook in CDI. He reviewed Euro debt crisis and its influence on Asia, especially China in short term and long term. He reckoned that although Asia is facing greater downside risks, the economy will gain its growth in a moderate way. CDI research fellows and officials from Shenzhen Municipality joined the discussion with Dr. Song.

Shenzhen Financial Centre Forum and Shenzhen Financial Centre Promotion Seminar were held in Paris and Luxemburg respectively on 21st and 27th Feb. The forums gave a good introduction of Shenzhen as a newly emerged financial centre. The forums aim to further promote Shenzhen Financial Centre. Specialists from financial institutions have taken part in the forum.  

A Delegation from MTN Group, South Africa paid a visit to CDI to learn about the history and development of Shenzhen as a Special Economic Zone. MTN Group is the biggest telecommunication provider in South Africa, which is now looking forward to exploring its market in China.   

18 members of North Carolina Senate Delegation visited CDI with the aim to strengthen cooperation with Shenzhen, and gain better understanding of the exploration of clean energy in Shenzhen.

Mr. Wolfgang Kessler, came to visit CDI as Acting Consul-General of Germany. Executive vice President Dr. Guo Wanda and Ms. Carol Feng, Director of International Cooperation Department had a talk with the Consul-General on mutual cooperation between German Consulate-General and CDI.   

Mr. Graeme Wilson, Head of Global China Dialogue Secretariat, Australian Department of Foreign Affairs and Trade, visited CDI to explore the possibilities of cooperation with CDI in hosting Global China Dialogue, which provides an international platform for figures from government, business and academia across the globe to discuss developments in China's foreign and strategic policy, economic direction and business environment.

Mr. Stephen Olson, Managing Director of Economic Strategy Institute visited CDI and discussed with Ms. Carol Feng, Director of International Cooperation Department on developing cooperative relationships by initiating international conferences, conducting joint studies, and strengthening personnel exchanges between both sides.  

Mr. Weldon Epp, the newly appointed Consul General of Canadian Consulate-General Guangzhou paid a visit to CDI. Dr. Guo Wanda, Executive Vice President made an introduction about the general development in South China. The Consul General briefed current cooperative projects between South China and Canada and expressed his interest and willingness on exploring ties between CDI and Canadian research institutions.

Mr. Avraham Nir, Consul General of Israel paid a visit to CDI. Dr. Guo Wanda, Executive Vice President and Carol Feng, Director of International Cooperation Department had an extensive discussion with the guests on issues like low carbon development, migrant workers, food safety, industrial upgrading, etc. Both sides reached a consensus on building  between CDI and Israeli think tanks.

Officials from the Ministry of Finance, the Republic of Ghana, and representatives from China Geo-engineering Corporation visited CDI. Dr. Guo Wanda, Executive Vice President and Dr. Wang Mei introduced the economic evolution of Shenzhen and shared experiences on urban planning and management, as well as fund raising mechanism.  

The Delegation from University of Applied Science of Southern Switzerland has visited CDI. Dr. Guo Wanda, CDI’s Executive Vice President gave a lecture on “China's Special Economic Zone (SEZ): its Role for the Transformation of China”. He elaborated the evolution and status quo of China SEZ. Shenzhen was quoted as a successful example of SEZ, which is now a financial centre and hi-tech centre in China. Still, challenges should be observed during the economic transformation in the following development of SEZ.  

Mr. Graham Nelson, Consul Political & Economic of British Consulate-General Guangzhou visited CDI and had a discussion with Executive Vice President Dr. Guo Wanda on development planning of Qianhai Bay modern service industries cooperation zone and progress of Pan-pearl River Delta cooperation. Other issues like the SME business plight, RMB appreciation and Shenzhen’s capital market were also covered. 

Dr. Paola Subacchi, Research Director of International Economics, Chatham House (The Royal Institute of International Affairs) visited CDI discussing the possibility of cooperation with Dr. Guo Wanda,  Executive Vice President and Ms. Carol Feng, Director of International Cooperation Department. Dr. Guo introduced the development of Shenzhen finance industry and its cooperation with Hong Kong. After meeting, Ms. Subacchi has visited Qianhai Shenzhen-Hong Kong Modern Service Industries Cooperation Zone and the CBD of Shenzhen.

On 18th-19th May, 2011, the 6th Pan-Beibu Gulf Economic Cooperation Forum was held in Nanning, Guangxi Autonomous Region of China. The Forum is themed at the Progress of China-ASEAN Free Trade Area & Pan-Beibu Gulf Economic Cooperation with 3 Parallel Sessions: 1)Think Tank Summit: Regional connection and cross-border cooperation; 2)Cross-border trading and investment, finance cooperation; 3)Tourism cooperation in Pan-Beibu Gulf Region.

As the Intellectual Supporting Organization, CDI invited think tanks of the Pan-Beibu Gulf Region and ASEAN countries, including China, Singapore, Vietnam, Malaysia, Philippine, Thailand and Indonesia to discuss about regional connectivity and cross-border cooperation in “Think Tank Summit of Pan-Beibu Gulf Region”. “Pan-beibu Gulf Think Tank Memorandum on Joint Research Mechanism” was signed by 11 organizations to establish membership mechanism among think tanks in this region.

Edward Clarence-Smith, Representative and Head of UNIDO Regional Office, and Liang Dan, Senior Technical Advisor on Investment and Technology Promotion Visited CDI discussing the possibility of cooperation with Dr. Guo Wanda, Vice Executive President and Dr. Zhang Jiansen, Director of Finance Studies, Ms. Carol Feng, Director of International Cooperation Department.

Mr. Chong Chan Yau, Chairman of Carbon Care Asia Co(CCA), Dr. Trini Leung, Executive Director of CCA visited CDI and discussed with CDI leaders and department heads on further cooperation on low carbon research and training programs. Headquartered in Hong Kong, CCA operates as a social enterprise for the mission of mitigating climate change through driving innovative market solutions to build a new low carbon economy. CCA provides services to corporations and institutions to measure, reduce, offset and communicate carbon emissions.

China’s first report on Non-regret Mitigation was published by CDI. The report makes an analysis on the potentials of non-regret mitigation, and governments’ role in developing low carbon city in China.

The report suggests that policies with incentive compatibility should be introduced to better coordinate the goal of central government and the implementation by local governments. Vehicle Emission Tax should be piloted in some cities as in order to curb the usage of private cars. The tax could subsidize the public transportation. The report suggests that Regional Emission Exchange be trialed in certain industries, like coal, iron and steel industry.  

The Consul-General of Australia in Guangzhou visited CDI. The purpose of this call is to gain a better understanding of Shenzhen’s plans for further development, and the major challenges it may encounter. Dr. Guo Wanda, Vice Executive President of CDI had a discussion with the guests.

Mr. Alastair Morgan, the newly appointed Consul General of British Consulate-General Guangzhou paid a visit to Shenzhen as an introductory call on 20th and 21st Jan. During his visit Mr. Morgan called on CDI. Dr. Guo Wanda, Executive Vice President and Carol Feng, Director of International Cooperation Department had an extensive discussion with the guests on CDI’s research fields.

The 6th Asia Economic Summit 2010 was held in CDI on 10th Dec. The Summit focused on Green Growth in Asia as well as the infrastructure boost needed for Asia’s connectivity in the transport, communications and energy sectors in the next 10 years that will generate income gains of about US$13 trillion throughout Asia.

The Summit brought together Leaders from Government, Business, Universities and Think Tanks to critically review and discuss the future of Asia in a challenging new era. This annual series of Asia Economic Summit is organized by Asian Strategy & Leadership Institute (ASLI) with a predominantly Asian perspective to critically discuss the driving forces behind Asia's transformation and the strategic issues and key challenges facing the region. The Asia Economic Summit has been held in Kuala Lumpur, Singapore and Hong Kong.

Prof. Joan Busquets, Architect & Director, BLAU-Landscape Architecture & Urbanism, Spain/ Professor, Graduate School of Design, Harvard University, visited CDI and discussed on the International Consultation on the Regeneration and Redevelopment of Sungang-Qingshuihe, Shenzhen.

Shenzhen Financial Centre Forum and Shenzhen Financial Centre Promotion Seminar were held in London and Edinburgh respectively on 14th and 16th Sep. The forums gave a good introduction of Shenzhen as a newly emerged financial centre. In Global Financial Centers Index (GFCI) 6, Shenzhen was included in the rankings for the first time, as the highest new entry, in 5th position. The forums aim to further promote Shenzhen Financial Centre. Specialists from financial institutions have taken part in the forum.

Huh Jae Hwan, economist of Daewoo Securities, Korea visited CDI and meet Dr. Zhang Jiansen, Director of Centre on Finance and Modern Industry. Dr. Zhang gave a brief introduction on the background and development of the finance industry in Shenzhen and answered questions about banking system, property marker, RMB reform and foreign reserves, etc.

A U.S. delegation from G2 Club House, Southern University and A&M College came to visit and discuss the possibility of cooperation with CDI. The G2 Club House is dedicated to the exchange of students, businesses and government officials. With 107 universities and over 500 mayors as its member, G2 is planning to build up a platform in China and the U.S. for a better communication between the small and medium sized enterprises in both sides. 

President Fan Gang welcomed the Petra Kiwitt party in Beijing, which is the executive vice-president of Germany Post DHL. The two sides signed “DHL-CDI logistics innovation strategy agreement” together, establishing the DHL-CDI supply chain management innovation center cooperatively.

David Dollar, Economic and Financial Emissary of U.S. Department of the Treasury and Embassy of America, Brian Goldbeck, Consul General of American Consulate General, Guangzhou, visited CDI and had a talk with Dr. Zhang Jiansen, Director of Centre on Finance and Modern Industry on the financial development of China and the world.

Michael Müller, Vice Consul of Commercial Affairs, Austrian Consulate General in Guangzhou, met with Carol, Director of International Cooperation Department, and Dr. Liu Yu to talk about potential cooperation fields between CDI and Austrian side, especially joint research on Low Carbon Economy.

On 28th May, 2010, the “The 1st Pan-Beibu Gulf Think Tank Summit” was held in Nanning, Guangxi Autonomous Region of China. The leaders and representatives from the think tanks of the Pan-Beibu Gulf Region and ASEAN countries, including China, Singapore, Vietnam, Malaysia, Philippine, Thailand and Indonesia met to discuss regional development issues.

This conference was focusing on cooperation between think tanks in Pan-Beibu Gulf Region and ASEAN countries. The main topics included the upgrading of co-operations among ASEAN and Pan-Beibu Gulf Region, and constructing of dialogue mechanism among think tanks in this region.

The visiting Canadian Advance Leadership Program delegation invited CDI researchers to have lunch. The purpose of the lunch is to have a better understanding of development and reforms of Guangdong Province and the associated challenges and opportunities including labor issues, education, health care, environment and public policy. Carol, Director of International Cooperation Department, researchers including Zeng Zhen, Zhou Junmin and Liu Jiandang had a broad discussion with the delegation.

Wolfgang Meyer, resident representative of Konrad Adenauer Foundation Representative Office, Peter Weiss, member of the German Bundestag visited CDI. Carol, Director of International Cooperation Department gave an introduction to the guests.  

Officials from Austrade and Australian Embassy to China visited CDI. Vice President Dr. Guo Wanda made an introduction on the Climate Change policies in Guangdong Province, esp. in Shenzhen, and their effects.

David Bostwick, Consul and Senior Trade Commissioner from Consulate General of Canada to Guangzhou paid a visit to CDI. As the first Canadian Consul visited CDI, Mr. Bostwick learned attentively about the development of CDI from Carol, Director of International Cooperation Department. He promised to have further cooperation with CDI in both research and consulting fields. CDI research staffs Yu Jun, Liu Jiandang, Yang Qiurong made a good discussion on the current regional development in Guangdong Province with the guests.

Mr. Grant Doolay, the new Consul-General of Australia to Guangzhou visited CDI. Mr. Tang Huijian，Executive Vice President, Dr. Qujian, Assistant to the President and Carol Feng, Director of International Cooperation Department meet with the guests, and exchange views on foreign trade business between Shenzhen and Australia.

Ms. Elizabeth F. Yuan, U.S. Health Attaché to China, and Andrew A. Griffin, Vice Consul of Consulate General of the U.S., Guangzhou Visited CDI. Vice President Guo Wanda, Researcher Liu Jiandang gave the guests an introduction of the medical reform in Shenzhen, including reforms in public hospital and medical insurance system.

H. E Amos Nadai, Israeli Ambassador to China and Avranham Nir, Israeli Consulate General of Israel in Guangzhou visited CDI. Executive Vice President Mr. Tang Huijian, and Carol Feng, Director of International Cooperation Department made a discussion with the guests on economic development in Pearl River Delta and possibilities of cooperation between South China and Israel.

Dr. Jo Thori Lind, Professor from Dept. of Economics, University of Oslo, Norway, and Mr. Smedsvig Håkon, Consul of Royal Norwegian Consulate General, Guangzhou paid a visit to CDI. Prof. Guo Wanda, the Vice President, Dr. Wang Mei, Director of Centre for Public Policy and Government Performance Assessment exchanges opinions on China Social Security System Reforms and the economic development in Pearl River Delta with the guests.

Incheon Development Institute (IDI) signed an agreement with CDI on cooperation of academic communication and research. IDI is a think tank of Korea’s third largest city Incheon. IDI President Mr. Eo, Yeon-Duk paied a visit on CDI and had a meeting with CDI Executive President Mr. Tang Huijian and Dr. Guo Wanda.

Ms. Nghi Luu, Unit Manager of International Economy Division, Macroeconomic Group of The Treasury, Australia visited CDI. Vice President Guo Wanda has a discussion on Shenzhen economic structure, employment and environment protection with the guests.

Mr. Brendan Kelly, Ms. Elizabeth Van Heuvelen visited CDI representing U.S. –China Strategic and Economic Dialogue, Department of the Treasury. Prof. Feng Subao and Dr. Huzhenyu discussed with the guests on industrial structure and“Double Transfer Policy”(industry, labor) in Guangdong.

Mr. John Langtry, Assistant Secretary of East Asia Branch of Australia’s Department of Foreign Affairs and Trade visited CDI. Vice President Guo Wanda, Dr. Feng Subao and Dr. Liu Luyu received the guests and introduced the measures China has adopted during the Financial Crisis.

Mr. Smedsvig Håkon, Consul of Royal Norwegian Consulate General, Guangzhou paid a visit to CDI. Prof. Guo Wanda, the Vice President, Dr. Wang Mei, Director of Centre for Public Policy and Government Performance Assessment exchanged opinions on China Social Security System Reforms with the guests.

Vice President Prof. Guo gave an interview with German newspaper Frankfurter Allgemeine Zeitung on the questions of Shenzhen economic development in the past 20 years and its administrative reforms.

German Consul-General Eberhard Schuppius visited CDI investigating the administrative reform in Shenzhen. Vice President Guo Wanda and Prof. Feng Subao introduced the background and evolution of Shenzhen’s Administrative Reform, and exchanged ideas with the guests.

Laura Stone, Director of the Office of  Macro Economy and Financial Policy for the U.S Embassy to China, and Steve Lang, the Economic and Political Section Chief in U.S. Consulate General, Guangzhou visited CDI  investigating Shenzhen’s general economic situation under the global financial crisis, and the implementation of the Comprehensive Reform in Shenzhen. Vice President Guo Wanda answered questions from the guests.

A group of fund managers led by China International Capital Corporation Limited (CICC) visited CDI. Dr. Guo Wanda, Vice President of CDI, Prof. Feng Subao, and Dr. Liu Luyu received the guests, and answered their questions on the port trade, employment and government policies during the current financial downturn.

The third Shenzhen-Hong Kong Co-operation Forum, jointly organised by the Central Policy Unit (CPU) of the Government of the Hong Kong Special Administrative Region, the Shenzhen Special Economic Zone Research Association and the China Development Institute of Shenzhen, was held at the China Development Institute in Shenzhen.

The forum was initiated by the research institutions of Shenzhen and Hong Kong, with the aim of strengthening non-official exchanges between the two places in additional to government official interactions.  The first two forums were held in 2006 and 2007 in Shenzhen and Hong Kong respectively, and have made important contributions in promoting co-operation between the two places.  The theme of today’s forum was “Shenzhen-Hong Kong Co-operation under the Economic Crisis”.  The forum examined the development of the financial tsunami and its impact on Shenzhen and Hong Kong.  Around 100 participants from Hong Kong and Shenzhen, including experts from various fields, academics, business persons and government officials, were invited to join the forum.

The Head of the CPU, Professor Lau Siu-kai, and the Deputy Mayor of Shenzhen, Mr Lv Ruifeng, delivered opening addresses at the forum.

Participants of the forum were divided into four groups and had in-depth discussions on how Shenzhen and Hong Kong could further co-operate in areas such as employment, support for small and medium-sized enterprises, education and manpower training, and social welfare, in order to combat the crisis and grasp the opportunities.

Organizers from both Shenzhen and Hong Kong attach great importance to the Shenzhen-Hong Kong Co-operation Forum, and hope that the forum can continue in the future to further enhance co-operation and exchanges between the two places.

Mr. TAKAGI Seiji, Managing Director of Industrial Research Centre of Japan External Trade Organization (JETRO), and Mr. AMANO Shinya, Director of JETRO Guangzhou visited CDI. Vice President Guo Wanda received the guests and answered questions on Shenzhen’s economic situation during global financial crisis.

Guests from the Office of U.S. Trade Representative, U.S. Embassy to China, and U.S. Consulate General Guangzhou came to visit CDI. Tang Huijian, Vice President, Qu Jian, Assistant to the President, and Professor Feng Subao received the guests and discussed about some hot points in trade relationships between the two countries.   

A delegation made up of KIEP, Incheon Free Economic Zone Authority, Incheon Urban Development Corporation and Incheon Development Institute came to visit CDI. Researchers Long Long and Liu Rongxin discussed with the guests on the experiences of Shenzhen as a Special Economic Zone.

Eberhard SCHUPPIUS, Consul General of Consulate General of Germany, Guangzhou visited CDI. Vice President Tang Huijian, and Carol Feng, Director of International Cooperation Department gave some introductions on the operation of CDI. Dr. Qujian, Assistant to the President, and researchers Wang Mei, Liu Jie discussed with the guests on the Financial Crisis influences on Pearl River Delta.

Mr. David A. Westbrook，professor of University at Buffalo, the State University of New York made a speech entitled “Out of Crisis: Rethinking Our Capital Markets” at CDI.

China Development Institute (CDI) has been established for more than 20 years. Led by politicians and economists in the previous generation, young intellectuals in CDI have created a unique model for its development in Shenzhen, a pioneer city of reform, which contributes greatly to the economic reform and development, especially to China’s soft science, research and consulting on public policy.

China still has a long way to go on its reform and development. During the process of industrialization, urbanization and internationalization, new problems and conflicts would continuously come out and getting more and more complicated. Hence professional institutions with broader visions and knowledge are in need to make in-depth study on public policies and provide practical recommendations for the governments. 20 years experience has laid a solid foundation for CDI’s further development. In the 21st century, CDI should keep on committing itself to upgrade knowledge, to improve research quality and to cultivate talents in a bid to meet the demand of new situation and to make more contributions to sustain China’s prosperity.

Professor Fan Gang
President
China Development Institute