New Champions at the World Economic Forum, Dalian, China

China Monitor - Issue 22 - Sept 2007September 2007 – Issue 22

In September, the city of Dalian in northeast China hosted the World Economic Forum’s New Champions summit. The new champions are aspirant multinationals – a large number of which are from emerging market economies. High growth economies in Asia – China and India especially – are spawning globally capable firms that are able compete against multinationals from traditional markets.

China’s double digit rapid growth economy coupled with the Government’s drive to consolidate key sectors and “pick corporate winners” is leading to the creation of Chinese multinationals. Through the government’s strategy of encouraging these firms to enter the international marketplace through financial incentives – the “Going Global” policy, Chinese firms are now in the early phases of establishing globally recognised brands. Chinese firms will very rapidly becoming competitors to Western, Japanese and Korean firms in a wide array of industries – from consumer electronics, to automotives, to ship building. Chinese firms are most certainly not satisfied with occupying the lower rungs of the production value chain. African economies’ general inability to compete in manufacturing industries is being exposed as Chinese firms trade in the continent.

Dalian is a leading second tier Chinese city and illustrates how the China boom is not just confined to leading cities such as Shanghai or Guangzhou. Both contributing writers to this month’s China Monitor were in Dalian and are confident that Chinese firms are the new global competitors.

Download PFD – China Monitor – Issue 22 – Sep 2007