2023 Government Affairs Conference: “Reassessing Uncertainty: Leveraging the Strategic Role of GA”

During the Conference, the 25th edition of the American Business in China White Paper was officially launched. This annual signature advocacy publication comprehensively assesses the operating environment for foreign companies in China and comprises 40 chapters written by hundreds of member company representatives, providing thoughtful analysis of the industries, cross-sector issues, and regions of importance to AmCham China’s membership.

AmCham China President Michael Hart gave welcome remarks and introduced the first keynote speaker, Fang Jin, Vice Chairman and Secretary General at China Development Research Foundation (CDRF).

The event’s first panel discussion focused on the evolution of the White Paper over the past 25 years and included panelists who were also all alumni of AmCham China: Catherine Beck, Head of External Relations at Western Academy of Beijing; William Zarit, Senior Counselor at the Cohen Group; Duanzhi She, VP of Government and Public Affairs at Nike Greater China; and Patrick Wang, Consultant at East-West International Education Group. She, who served as the very first head of GA at AmCham China, highlighted the core values of transparency and credibility that have been consistent throughout the White Paper’s evolution. Wang, a former Vice President at AmCham China, stressed the importance of the White Paper as a starting point for internal conversations within companies. Zarit, a previous Chairman of the Board of Governors, provided advice on the White Paper’s recommendations for the Chinese government and how to categorize and prioritize issues when presenting them. Beck, another former head of GA at the Chamber, noted that the messages conveyed in the White Paper eventually get through to the US or Chinese government, but not as immediately as one might hope. Overall, the panel discussion emphasized the importance of the White Paper in facilitating communication between AmCham China members and Chinese officials.

The second panel discussed the role of GA in facilitation and localization strategies with panelists Bing Zhou, VP of China Corporate Affairs at Intel China; Gloria Xu, China Country Manager, VP External Affairs at Albemarle China, and AmCham China Vice Chair; Wenjie Gu, Chief China Representative at Zoom; and Min Yi, former MTR Chief Advisor at MTR Corporation. During their discussion, the panelists emphasized that a company’s localization strategy should depend on its capabilities and goals, rather than being pursued solely for the sake of localization. The panelists agreed that successful companies prioritize effective localization strategies, which can be separated into local empowerment and autonomy. The panelists also discussed the importance of safety and security in the context of supply chain decoupling, noting that many foreign companies are seeking to localize and establish connections with state-owned enterprises to strengthen their supply chains. They further emphasized the need for foreign companies to understand the laws of the countries in which they operate. The panelists acknowledged the significance of GA in China due to the state’s significant role in regulating private enterprises and stressed the importance of GA professionals being integrated into a company’s overall strategic planning.

The next keynote speech was delivered by Zhang Xiaoqiang, Executive Vice Chairman and CEO of the China Center for International Economic Exchanges (CCIEE). In his remarks, Zhang emphasized the importance of the US-China relationship, despite its current issues. He noted that on April 20th, US Treasury Secretary Yellen emphasized that the US is seeking a fair and strong economic relationship with China, and that last year, both presidents committed to continued dialogue and cooperation in the Bali G20, Indonesia. Zhang also noted the White Paper as a good channel for building a common understanding, and “reasonable recommendations” in White Paper will be considered by relevant Chinese government departments.

The final keynote was given by Ning Zhu, Senior Partner & Head of China at Brunswick Group, who discussed the state of China’s economic development, challenges, and risks. He predicted robust growth in 2023 but with a more conservative target than before due to the secular trend of slowing down. Medium to long-term challenges include supply chain disruption, demand shrinkage, weakening expectations, and the current negative view of the US-China relationship. Zhu also mentioned a near-term housing bubble, medium-term debt overhang, and long-term declining population. Changing economic policy themes include a lower growth target, less aggressive monetary and fiscal stimulus, and a focus on high-quality growth. Shifting priorities include de-leveraging and re-leveraging, double carbon, crackdowns on education, gaming, and real estate sectors, dual circulation, common prosperity, and a re-focus on economic growth and opening up.

The 2023 Government Affairs Conference offered a valuable opportunity for attendees to learn about the latest developments and trends in China’s economy and government affairs landscape. Bing Zhou, Vice President of China Corporate Affairs at Intel China and Co-chair of the Chamber’s Chinese Government Affairs Committee (CGAC), provided insightful closing remarks, emphasizing the importance of government affairs professionals in navigating the complex regulatory environment in China.

We thank the two sponsoring companies, Merck and Dell, all the speakers and participants for their valuable contributions to this successful event and look forward to future opportunities for collaboration and learning.

In the same afternoon, AmCham China and the China Center for International Economic Exchanges (CCIEE) co-hosted the US-China Business Leaders Forum where around 30 participants from AmCham China, CCIEE, and senior executives from American and Chinese companies had a productive discussion on digital economy and sustainability.