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| Working Report to the 3rd Session of the 4th Council Meeting and the 4th Session of the 4 th Standing Council Meeting |
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| 2006-12-08 10:03 caefi |
Liu Zhiben, Executive Vice Chairman, CAEFI
(Nov. 8, 2006)
My fellow vice chairpersons and council members,
Good morning. Since the second session of the 4th Council meeting in Chengdu (Sichuan province) in October 2004 and the 3rd Session of the 4th standing council meeting in Hefei (Anhui province) in November 2005, CAEFI, under the care and guidance of the Chinese Ministry of Commerce, the capable leadership of Chairman Shi Guangsheng and the great attention and strong support of vice chairpersons and member companies, has acted upon its mission to service foreign invested enterprises, carried out work based on the objectives laid down in the previous two meetings, made smooth progress on all fronts, and enabled the continued growth of the association. For the record and review of the meeting, I’d like to briefly summarize our work over the past two years and highlight a few tasks to be taken up in 2007.
Part One: A Summary of CAEFI’s Work in the Past Two Years
I. Faithfully fulfilling corporate social responsibility in addition to actively steering member companies for business development
At present, corporate social responsibility (CSR) is already becoming an underlining trend of economic globalization. Governments, social organizations and corporations are increasingly taking on this issue. Coupled with deepening reform and opening up, foreign invested enterprises (FIEs) in China are becoming a major player in a growing market economy. As such, it is imperative that foreign invested enterprises should take on their social responsibility. Besides helping FIEs grow on their own feet, CAEFI also organized and conducted a large number of activities to actively engage its member companies in China’s lofty cause of building a harmonious society by urging them to act upon their social responsibility, hence achieving win-win development of the companies and the Chinese society.
In April 2005, CAEFI actively involved its specialized committees and member companies in different localities in the nationwide IPR Protection Promotion Week jointly organized by 13 government departments including the National Market Order Rectification Office (MORO), Ministry of Propaganda, Ministry of Public Security, State Administration for Industry and Commerce, Ministry of Information Industry, Ministry of Culture and General Administration of Customs.
In February 2006, CAEFI joined the China Enterprise Confederation in organizing the Corporate IPR Protection and Self-innovation Conference at the Great Hall of the People in Beijing, which was addressed by Vice Premier Wu Yi. CAEFI assembled representatives from over 70 multinational corporations to the conference, who echoed the message from the conference by signing up to the Initiative on Using Legal Software in Businesses and the Initiative on IPR Protection in Businesses.
In March 2006, CAEFI Investment Company Working Committee hosted a press conference in Beijing to unveil the Beijing Declaration on Corporate Social Responsibility and formally made a commitment to CSR. This was viewed as a concrete action both to increase CSR awareness among companies and in response to the central government’s initiative of building a harmonious society. According to the Beijing Declaration, CAEFI member companies will exercise strong self-discipline and faithfully fulfill their corporate social responsibility in 12 areas including law, taxation, IPR, employment, employee benefits, environmental protection, social welfare, information disclosure and corporate citizenship.
To follow on the initiative of Party Central and State Council of combating business bribery, CAEFI organized a specialized workshop on combating business bribery in August 2006 in Beijing. Senior officials from the Leading Group on Combating Business Bribery of MOFCOM and from the Bureau of Fair Transactions of the SAIC spoke to an audience of nearly 100 representatives from over 70 CAEFI member companies.
Since its inception, CAEFI Quality Brand Protection Committee has been committed to promoting the awareness of IPR protection. Every year starting 2002, Top 10 Cases of IPR Protection are picked, an exercise that has been widely applauded by the public and has contributed to the promotion and advancement of China’s IPR protection efforts.
CAEFI Textile Products and Clothing Industry Committee has also been an active proponent of CSR in the textile and clothing industry. Between May and August 2006, the Subcommittee conducted a CSR survey among over 120 member companies, which was actively responded to.
The large CAEFI membership has all formulated their own CSR standards. They are working their strength on many fronts such as financing social welfare causes and protecting the environment, IPR and employees’ rights. These efforts have been commended by both the government and the public.
The involvement of CAEFI member companies in CSR activities has been extensively covered by the press and many websites, so I’m not going into details here.
II. Actively engaging member companies in consulting sessions on state policy, law and rule-making; organizing workshops or discussions to keep member companies up to speed about policy changes.
With strong initiative and support from Chairman Shi Guangsheng, CAEFI has established good relations with state legislative and administrative bodies such as the Legislative Working Commission of the NPC, NPC Financial and Economic Commission, Legislative Affairs Office of the State Council, MOFCOM, Ministry of Health and SAIC. A mechanism enabling FIEs to comment on upcoming laws, regulations and rules via CAEFI is in its approximation, resulting in more effective communication and mutual understanding between FIEs in China and Chinese authorities.
To facilitate the amendment to the Company Law of the People's Republic of China, CAEFI, under the mandate of the Legislative Affairs Commission (LAC) of the National People's Congress, solicited comments from FIEs on the draft Company Law in late 2004 and June 2005 in writing and through hearings. The whole process received active participation and strong backup from both the FIE community and local FIE associations. At CAEFI-organized hearings, senior officials from the LAC legal affairs office had face-to-face interaction with FIEs. The hearings were dominated by heated discussions. FIEs were particularly interested in Articles 25, 38, 44, 48, 77, 93, 124, 151, 189 and 230. Their comments were highly regarded by the LAC. CAEFI’s active efforts were widely applauded by the LAC and its membership.
Also under the mandate of the LAC, CAEFI started soliciting comments in early July, 2005 on the drat Antimonopoly Law of the People’s Republic of China among FIEs. A number of hearings were organized in the presence of LAC leaders to take up comments and recommendations from the FIE community about the draft. The main issues raised at the hearings include: designing the law to promote fair and reasonable market competition and encouraging innovation; maintaining the authority and specialization of enforcement agencies; increasing the operability of the law; showing prudence toward market share and dominant market position; strictly containing administrative monopoly and clearly defining IPR violations. CAEFI carefully summarized these comments and recommendations and submitted an opinion to the LAC. The opinion played a positive role in the further development of the draft law.
In September 2005, CAEFI invited member company representatives to a discussion about issues in corporate advertising and PR activities. The discussion was observed by leaders from the Department of Advertising Monitoring and Management of the State Administration for Industry and Commerce (SAIC). FIE representatives brought up many valuable ideas and recommendations with regard to the definition of fraudulent advertising, incompliance in enforcement activities, national treatment for FIEs and media involvement. SAIC leaders took note of and highly acknowledged the comments.
Since 2005, CAEFI under the mandates of the LAC and Financial and Economic Commission of the NPC, Legislative Affairs Office of the State Council, and MOFCOM has organized FIEs from concerned industries to comment and counsel on new legislations and policy changes including the Financing and Leasing Law (Draft for Comments), Direct-selling Regulations, Regulations on Independent Directors in Listed Companies and regulations on commercial sector liberalization. Many issues and recommendations raised by the enterprises were fully acknowledged and taken in by the relevant authorities.
To keep its member companies up-to-date with latest policy changes in China or facilitate communications between member companies and competent authorities, CAEFI has organized at irregular intervals workshops and dialogues about issues of common concern or at the request of member companies. Heads of competent state authorities were invited to these workshops and dialogues to interact with member companies and address their concerns. These activities are highly popular among our member companies.
III. Guiding and supporting the efforts of its specialized committees to provide professional services.
As approved by the Ministry of Civil Affairs, CAEFI now has five specialized committees, namely the Quality Brand Protection Committee, Investment Company Working Committee, Leasing Business Committee, Textile Products and Clothing Industry Committee and Drug Research and Development Committee. All these committees have conducted rewarding activities with high professionalism and distinct sector-specific features. They have become the linkages between member companies in different areas and also an important mechanism for self-discipline within CAEFI. Now, I’d like to give you a brief update about the activities of each of these five committees over the past few years.
The Quality Brand Protection Committee (QBPC), founded in March 2000, now has a membership of 157 as compared to 28 six years ago. It has 7 subcommittees including the best case/enforcement subcommittee, publicity subcommittee and customs subcommittee. QBPC has played a major role in supporting and coordinating with the Chinese government’s special campaigns to crack down on piracy and counterfeiting and IPR protection. It has effectively safeguarded the legitimate rights and interests of its member companies. Under CAEFI’s guidance, QBPC has put in place a regular communication and coordination mechanism with MORO and other government agencies to report and share information about IPR protection, anti-counterfeiting and legislative efforts and to bring to their attention the comments of foreign invested enterprises.
The annual “Top 10 IPR Protection Cases” selection initiated by QBPC in 2002 has caught prime attention from relevant government authorities. In particular, the designation ceremony in May 2005 for the 2004-2005 Top 10 IPR Protection Cases received a congratulatory note from Vice Premier Wu Yi, who highly acknowledged QBPC’s role in IPR protection.
At the International Forum on IPR Protection at Trade Shows held during the 10th CIFIT this year, Vice Minister of Commerce Madam Ma Xiuhong gave renewed praise and encouragement to the role of QBPC and underlined the importance of having open lines of communication between MORO and QBPC and other organizations. With respect to international collaboration, QBPC management have traveled to Europe, US and other Asian countries at the invitation of their governments or industry organizations to share best practice and success stories.
The Investment Company Working Committee (ICWC), founded four years ago, now has a membership of 115, mostly Fortune 500 companies. The committee has received mandates on many occasions from MOFCOM to organize forums and discussions in addition to managing various types of investment promotion activities on its own among member companies. It has built a platform of communication between its membership and the government.
During the CIFIT in every September, ICWC, under the auspices of MOFCOM, will sponsor and participate in an annual gathering event for multinationals, which is already one of the flagship events for interaction between senior executives of multinationals in China and China’s leadership. Vice Premier Wu Yi has shown up and addressed the event many times. Vice Premier Zeng Peiyan attended the September 2005 event where he delivered a speech about China’s macro economic situation and trends. MOFCOM also hosts a discussion with ICWC every year to solicit comments and suggestions by multinationals on China’s investment policy and climate.
The Textile Products and Clothing Industry Committee (TPCIC) currently has a membership of about 120. Founded in December 2003, TPCIC has acted in concert with the Chinese government on China’s textile exports, kept track of the changes in the textile export market and the relevant negotiations, and vocalized the concerns of textile companies to the government. As a result, the legitimate rights and interests of its member companies have been well defended.
Over the past three years, TPCIC has hosted 12 working meetings to hear on the latest progress on textile negotiations, to discuss industry-wide issues such as export administration, export quota tendering and pricing negotiations, and to bring the assembled comments and recommendations of its member companies to MOFCOM and other authorities. As a result, its member companies have obtained favorable export base quantities and upsides. Particularly in 2005, TPCIC made a statement on several websites and newspapers in response to the restrictions imposed by the EU and US on China’s textile exports, pointing out that the abuse of the textile special safeguard is against the global trend of trade liberalization as well as WTO principle of free trade, and that dialogue and cooperation should be the way out and the way to win-win cooperation. TPCIC also urged all WTO members to strictly abide by WTO rules and address issues of common concern through consultations. These messages have resonated strongly with the public and widely acclaimed and backed by its member companies.
The Leasing Business Committee (LBC) currently has a membership of about 50. Since its inception, LBC has focused its efforts on strengthening communication with the government to address industry-wide issues and reinvigorate the leasing business. It has intensified servicing and publicity in areas like policy and market information. It was actively involved in the discussion about the Financing and Leasing Law (Draft for comments) and MOFCOM’s revised Regulations on Foreign-invested Leasing Business. It worked out a solution with the State Administration of Foreign Exchange to the issue of difference between total investment and registered capital, which was applauded by its members. LBC also coordinated with the SAIC and State Food and Drug Administration on issues such as pre-approval of the name of a foreign invested financing and leasing business and the financing and leasing of medical equipment, which led to once-and-for-all solutions to those issues. At the Seminar on Financing and Leasing Law in Beijing in August 2005, LBC put forward many constructive comments and recommendations on the revised leasing legislation, which was a welcome gesture among all leasing businesses.
The Drug Research and Development Committee (DRDC) currently has 38 member companies. Founded a year ago, DRDC has been actively organizing working group meetings, promoting communication and cooperation with relevant government agencies, supporting industry self-discipline and IPR protection. Its efforts have produced positive results and are largely recognized by competent authorities and member companies.
Facts have proven that specialized committees enjoy an advantage in increasing synergy in the industry, providing industry-specific services to its companies, improving industry-wide coordination and self-discipline, and facilitating interaction with the government and better-targeted consulting activities. After many years, CAEFI’s member companies are now counting on its specialized committees for professional services.
IV. Opening access for companies to the government, organizing diversified investment promotion and networking activities with local authorities and providing a whole spectrum of services to its member companies.
For more than two years, in order to align itself with the central government’s strategies of developing the western region, revitalizing the old industrial bases in northeast China and promoting the rise of central China and to keep its member companies informed about investment projects across China, CAEFI has worked closely with a number of provinces and cities in creating the opportunities for communication and cooperation between its members and local companies through jointly-organized forums, seminars, investment briefings and networking events. Its efforts have been welcomed by member companies, local governments and companies.
In April 2005 and 2006, CAEFI, in association with Shaanxi People’s Government, hosted the 4th and 5th Western Region Foreign Investment Fair, which was attended by, among others, Caterpillar (China), General Motors (China) Holdings, UPS China, YKK (China) Holdings and Amway (China). These two events further deepened foreign investors’ understanding of China’s western region development strategy.
To encourage opening-up and FDI attraction in Changzhou, Jiangsu province and give FIEs a better knowledge about what the city has to offer for foreign investors, CAEFI, Changzhou government and the Investment Promotion Agency of MOFCOM jointly organized an investors’ briefing on the theme of “investment for common development”. The event, which was highly successful and applauded by the participating companies, attracted over 300 attendees from multinationals companies and well-known domestic companies, who shared in-depth discussions about the investment climate and prospects of Changzhou.
On the sideline of the 4th Henan International Fair for Investment and Trade in April 2006, CAEFI and Zhengzhou State Economic and Technological Development Zone jointly staged a Forum on Foreign Investment in Central China. Attended by over 120 MOFCOM officials, Henan business leaders and senior multinational executives, the forum was a clear success, packed with discussions by senior managers of 20 multinationals and other participants about the latest development and trends of service outsourcing, factors affecting foreign investors’ decision-making in China and how to encourage foreign investors and companies based in the economically developed eastern coast to invest in the central region.
Following the Forum on Involving Multinational Companies in Old Industrial Bases Transformation jointly sponsored by CAEFI, the Investment Promotion Agency of MOFCOM and Jilin Commercial Office in September 2005 on the sideline of the Northeast China Expo in Jilin, CAEFI organized a Forum on Multinational Companies in the Revitalization of Northeast China this September in conjunction with the IPA of MOFCOM, Jilin Commercial Office and Jilin Office for the Revitalization of Old Industrial Bases. Both forums were attended by senior management of multinational companies.
Every September at the CIFIT in Xiamen, CAEFI will organize a meeting for multinational representatives chaired by a state leader. This high-profile gathering has caught prime attention from the senior management of CAEFI member companies. At the 10th CIFIT this year, CAEFI brought to the 2006 meeting senior executives of over 40 multinationals. At the meeting, these companies directly raised their concerns to the State Council and relevant ministerial officials. Also at the last CIFIT, CAEFI organized a Seminar on Enhancing the Capabilities for Accommodating Service Outsourcing and a briefing on investing in African countries. Under the guidance of Chairman Shi Guangsheng, CAEFI has actively participated in and done its service in the CIFIT, hence it was given an Award of Contribution at the last CIFIT.
In the second half of September, MOFCOM sponsored the first Expo Central China in Changsha, Hunan province. During the event, CAEFI organized the Forum on FIE Reinvestment in Central China and the Forum on Tier Transfer of Processing Trade. The forums and other Expo-related activities were attended by over 100 member companies and CAEFI was given the best organizer award at the Expo.
Right after the National Day holiday, the 14th World Productivity Congress sponsored by the World Confederation of Productivity Science (WCPS) was held in Shenyang. As one of the co-sponsors, CAEFI invited a number of multinationals in China to the event. Chairman Shi Guangsheng attended the Congress and chaired the main forum.
Tomorrow a forum jointly organized by CAEFI, IPA of MOFCOM and Wenzhou city government featuring dialogue between private firms and Fortune 500 companies will open on a high note. The forum aims to provide a venue for interaction between domestic private firms and multinational companies, promoting foreign investment in the private sector and outbound investment by private businesses. The forum will have famous multinational companies, well-known private firms as well as experts and scholars making key-note speeches and discussing on a wide range of topics and it is open to all the members here.
To enhance communication and bonding between its members and government agencies, CAEFI has organized on separate occasions, golf tournaments among multinational CEOs and New Year Receptions. The NYR event, currently in its third year, has already become CAEFI’s flagship event. The 2006 NYR was particularly honored with the presence of Vice Premier Wu Yi, Vice Chairman Li Tieying of the National People’s Congress, Vice Chairman Ismail Amat of the National People’s Congress, Commerce Minister Bo Xilai and leaders from over 10 ministries and agencies.
By organizing these activities, CAEFI has fostered even closer links between FIEs and the government and the broader business community. They have resulted in better matchmaking, greater information sharing and stronger collaboration.
V. Improving information service to provide timely feeds of information to businesses.
The CAEFI website (http://caefi.mofcom.gov.cn) was officially launched on January 1, 2005. Since then, new additions and improvements have been made, for example, “Video and Audio”, “Guestbook”, “Textiles News”, “IPR” and “Local CAEFIs”. A regularly-updated database of foreign investment related laws and regulations has been built. 12 basic sections have been established covering all areas of CAEFI’s work. The website has caught the eyeballs of both the public and FIEs in particular. According to MOFCOM’s monthly statistics, CAEFI registered an average monthly click-through rate of over 400,000 in the first half of 2006 and the high reached 600,000, ranking No.7 among all associations, chambers and research institutions under MOFCOM.
To strengthen networking between local CAEFI offices, a “Local CAEFIs” column was created in 2005 on CAEFI’s homepage, providing all CAEFI offices shared access to online information and a list of activities. The information is currently posted on the website either by well-equipped offices themselves or by CAEFI if the office does not have the resources.
In 2006, the Information Department of MOFCOM decided to create a Foreign Investment subcategory under the Industries column of MOFCOM’s official website. This task is currently headed by CAEFI. The design of the subcategory has already been presented for comments at the information working conference this year, paving the way for the launch of the subcategory before the end of this year.
Since 2004, CAEFI has spearheaded three information working conferences among all FIEs across China to share IT-related experience, lecture on the online information posting system and follow up on work-related proposals. This type of discussion and learning has improved the information capabilities of all participants. Two year later, a nationwide CAEFI information network is now up and running to provide high-speed access to information for its member companies.
VI. Establishing the Joint Committee Meeting (JCM) Mechanism among all CAEFI offices to provide all-dimensional and well-coordinated services to its members.
On the initiative of Chairman Shi Guangsheng, CAEFI and FIE associations of Beijing, Tianjin, Shanghai, Guangdong, Fujian, Shenzhen, Qingdao and Dongguan have instituted the Joint Committee Meeting (JCM) mechanism among all CAEFI offices. In April 2006, the first JCM was held in Beijing, addressed by Chairman Shi Guangsheng and attended by FIE associations of 28 provinces, municipalities and cities.
The JCM aims to develop a pragmatic and highly functional interagency coordination system among all FIE associations in China to harness local knowledge and resources, broaden membership service, share information and experience, and promote common development of all these associations.
The major functions of the JCM include holding regular meetings to study key issues concerning CAEFI, share best practice among local CAEFI offices, jointly orchestra major national or regional events, facilitate membership-government relations, mutual understanding and interaction, and explore inter-association cooperation to consummate membership service.
At the first JCM, 40 representatives had extensive discussions on the reform of the qualifications and referral mechanism for the Vice Chairmanship of CAEFI and member award, the preparation for the third session of the fourth Council Meeting and other related topics. They also compared notes on issues of common interest to local associations.
The JCM was greatly echoed and upheld by local FIE associations. So far, over 40 associations have applied to sit on the JCM.
VII. Working toward a harmonious organization through internal consolidation.
For many years, CAEFI has consistently focused on servicing its membership, rationalizing its organizational structure, and sharpening its service capabilities. Organization-building for higher efficiency remains CAEFI’s long-standing priority.
To adapt to the new working environment, CAEFI has restructured internally since 2005 by re-dividing its functional units into membership liaison, coordination and advising, exhibition, information, training and a general office, re-staffing its people based on their competence and specialties, recruiting through secondary sources for certain positions, clarifying responsibilities, reinforcing service awareness, and establishing internal controls and management throughout its whole working process. These measures have resulted in more reliable membership services.
We do have some shortages in the past two years that we need improve in our future working: enterprises from manufacturing field occupy a large number among our current membership yet we have few members from service field, and the number of large-sized enterprises is much more than that of the small-sized enterprises. The representation of CAEFI as a whole enterprises association with foreign investment is not enough; the contact between our local counterparts are still need to be reinforced, to enhance their service functions for the member enterprises. The communication with other organizations such as chambers of commerce of other nations and associations are far from enough. CAEFI need expand and deepen its service.
My fellow vice chairpersons and council members,
These past two years, CAEFI has been wisely led and personally assisted by Chairman Shi Guangsheng and greatly supported by the vice chairpersons and council members on every task. It is particularly worth mentioning that many member companies have kindly offered financial backup for a number of CAEFI-sponsored events over the past two years. These sponsors include Coca-Cola (China), Degussa China Limited, Hong Kong Esquel Group, Hong Kong Glorious Sun Group, US Johnson-Johnson, Ruoy Chai International Group and Red Bull Beverages Group. Other member companies such as Capitaland (China) Investment, Motorola China Electronics, Nuskin, Pro-health China, and Ting Hsin International Group have also financed CAEFI-organized events. Hereby on behalf of CAEFI and its people, I would like to extend my heartfelt thanks to you all.
Part Two: Highlights of 2007
In 2007, CAEFI will stick firmly to the 11th five-year plan and the goal of facilitating reform and development. It will work its strength, expand its services, engage in innovation, and pursuing tangible and practical results, with a view to making greater contributions to servicing the government, business community and its membership, making greater progress on its own reform and capacity-building, and moving closer to the goal of becoming a moderately influential and prestigious social organization in China. To that end, the following tasks will be taken up for the year 2007.
I. Taking proactive measures to urge member companies to fully take on their social responsibility and to contribute to building a harmonious society.
With deepening market opening and a functional market economy, FIEs are playing an increasingly central role on the Chinese market. All FIEs should therefore live up to instead of shunning their corporate social responsibility. CAEFI should leverage its unique role as an intermediary, urge companies to take on social responsibilities and contribute to building a harmonious society, organize all types of activities in a planned and orderly fashion and encourage business ethics and credit among member companies.
CAEFI will continue to harmonize the three-party relations between labor and social security authorities, labor unions and employer organizations from the strategic standpoint of building a harmonious society. It will strive to harmonize and stabilize labor relations and create a friendly workplace while safeguarding the legitimate rights and interests of its member companies. In line with MOFCOM’s guidelines on combating bribery and unfair business practice, CAEFI will urge member companies to scrutinize their internal business processes and correct unfair business conduct, look into and address cases involving business bribery and develop a long-standing and preemptive system against business bribery.
II. Constantly improving the citation and award system for FIEs in tune with the times
The citation and award system within CAEFI must be kept up-to-date with public advocacies and initiatives as well as membership needs. Based on a poll among member companies and local FIE associations, CAEFI is prepared to create three new awards in the areas of IPR protection, environmental protection and care for public welfare.
Taking into consideration the opinion and comments from its membership and local FIE associations, the draft award descriptions and qualification criteria are ready to be examined and approved at the Council meeting. Once the approval is obtained, a citation ceremony will supposedly take place in July 2007.
Meanwhile, in order to further assist FIEs in forming and maintaining a new socialist relationship, CAEFI will continue to join the All-China Federation of Industry and Commerce in crediting FIEs and individuals with outstanding performance in Two Cares (Employer cares for employees and employees care for employer) with a view to increasing the coverage and influence of the award.
III. Further engaging member companies in advising policy and law-making.
In line with state requirements on policy and law-making, CAEFI will further engage its member companies in advising the Chinese government on the formulation and revision of laws and regulations, representing its members at the government, soliciting FIE comments through local CAEFI offices and in close partnership with the government on new or updated legislations, organizing dialogue and training activities and building on the existing government-business relations.
In 2007, CAEFI will keep FIEs updated about latest foreign investment related policies of their interest, for example, fiscal and tax policy, labor protection and development of unions. The Textile Products and Clothing Industry Committee will closely observe and study latest international trends and developments and develop contingencies on possible emergencies. With regard to the issue of working hours in the Labor Law, CAEFI will closely follow up with labor authorities and engage an ad hoc group to look into the issue.
IV. Further steering and coordinating the work of its specialized committees.
CAEFI will continue its guidance over various specialized committees, help them enhance communication with the government and through them, present members’ requests on a timely basis. With regard to industry-specific issues facing the specialized committees, members’ opinions will be heard in flexible ways by the government to maintain open flow of information and close relations between companies and the government and improve the coordination between the committees and their counterparts in the government.
Besides, according the requirements of its members, CAEFI is ready to arrange more specified committee on base of sufficient investigations and researches, to expand its service field.
V. Maintaining the Chairmen Working Meeting (CWM) mechanism and drawing upon the collective wisdom of the CAEFI leadership.
Since the second session of the Fourth Council Meeting, CAEFI has held three Chairmen Working Meetings (CWMs), respectively in October 2004, December 2005 and January 2006. Fellow vice chairperson all brought up very constructive ideas and suggestions and played an active leading role in all CAEFI’s activities. In the future, CAEFI will convene CWMs when it so requires, to solicit ideas and comments from vice chairpersons on major issues of CAEFI. A written report will be circulated among vice chairpersons who could not make it to the meeting due to engagement at work. Updates on all CAEFI events will also be made available to all vice chairpersons.
VI. Further building on the Joint Committee Meeting (JCM) mechanism among all FIE associations to provide consistent and quality service to FIEs.
The success of CAEFI would have been impossible without the support from local FIE associations. In 2006, CAEFI and some 40 local FIE associations have jointly put a Joint Committee Meeting mechanism running. The mechanism will be conducive to intensifying inter-association cooperation and enlarging the service coverage. CAEFI remains committee to working closely with local associations in conducting activities aligned with the mission of the JCM. With strong support and coordination from local associations, CAEFI will plan together with its members to deliver weighty and practical activities, such as selecting outstanding FIEs, organizing business development forums, Sino-foreign business management seminars, China economic policy dialogues and entertaining events. The goal here is multi-dimensional and diversified services for FIEs.
VII. Further strengthening information service to membership.
In addition to building on its bilingual website, CAEFI will create a subsection on MOFCOM’s official website to cover sector-specific foreign investment activities (http://fdi.mofcom.gov.cn). The subsection is headed by the Information Department of MOFCOM, sponsored by CAEFI and co-sponsored by local FIE associations.
The proposed subsection has 9 first-tier columns, namely industry updates, business club, policy and regulations, specialized information, thematic study, statistics and references, local profile, projects and audiovisual. It makes great sense to have this subsection up and running. On the one hand, it opens new access to FIE information and activities. On the other hand, it enables resource-sharing and collaboration among local FIE associations. It is also part of the information network on FIEs across China and a source of extensive quality information for the public.
VIII. Building internal strength and a multi-dimensional service platform.
CAEFI’s primary function is service, for its member companies, for the government and for business development. To fulfill this function, capacity-building must come first. A working system centered upon people and well adapted to the external environment must be put in place. On top of that, new and creative service ideas must be followed on to better all types of services. Cooperation with other industry organizations and FIE associations of both home and abroad must be further intensified to create greater value for service.
CAEFI identifies the following priorities for capacity building.
1. Learning and improving service quality. In line with instructions from the senior leadership, CAEFI, in addition to engaging its member companies in combating business bribery, will scrutinize its own internal process and management to identify and correct problematic areas, pinpoint work-related loopholes and weaknesses and take effective measures to improve service quality.
2. Building a harmonious society. An enabling workplace that puts people first will be created to harmonize labor relations. Efforts will be made to build the organizational culture in order to create a common set of values and codes of conduct and a cultural ambience that encourages harmony, hard-work and synergy within the association.
3. Stressing business ethics and credit. Service reputation will be viewed as a decisive factor for the survival and development of the association. CAEFI will hold on to the principles of good manners and credibility and honesty both as individuals and in words and deeds.
4. Further cultivating the right service attitude by honoring integrity and curbing vices and bad habits.
5. Further consolidating the human resource and financial systems and encouraging accountability and objective-based management to standardize and regularize CAEFI’s work.
IX. Organizing activities to commemorate the 20th Anniversary of CAEFI
In November 2007, CAEFI will celebrate its 20th Anniversary. CAEFI will continue to take input from its membership in organizing a number of celebratory activities. It is contemplating a membership fitness and social committee (or Club) to plan and coordinate in various social and networking events.
In addition, CAEFI will focus on the following activities in late 2006 and beyond.
1. In late 2006, CAEFI will join the Investment Promotion Agency of MOFCOM in opening Dialogue on China Market and Economy Situation in Beijing to engage government leaders, industry experts and member companies in a dialogue on China’s current economic status and trends.
2. In early February, 2007, CAEFI will throw a New Year Reception in Beijing in conjunction with the first Chairmen Working Meeting for 2007 to make plans for 2007.
3. In early March, 2007, CAEFI will organize a joint conference in Tianjin of FIE associations to make arrangements for major CAEFI activities in 2007.
4. In April, 2007, CAEFI will jointly organize a high-level forum on corporate social responsibility in Beijing together with the Investment Promotion Agency of MOFCOM and the China WTO Tribune and others as well as a showcase of global success stories in CSR.
5. In May 2007, CAEFI will assist the Foreign Investment Administration of MOFCOM in organizing the 2007 Investment Companies Hearing at its Investment Company Working Committee to solicit the comments and recommendations of multinational corporations. The hearing will be attended by senior MOFCOM officials.
6. In July, 2007, CAEFI will hold a citation ceremony in Beijing to credit and award FIEs with outstanding performance in line with its new rules.
7. On September 2-3, 2007, CAEFI will join a mission with representatives from the IPA of MOFCOM, Jilin Commercial Office and the Office for the Revitalization of Northeast Old Industrial Bases of Jilin to northeast China and to participate in the third Northeast Asia Investment and Trade Expo.
8. In September 2007, CAEFI will assist the FIA of MOFCOM in organizing a hearing among foreign multinationals during the CIFIT and continue to engage its members in the discussion. The hearing will be in the presence of a State Council leader.
9. In November 2007, CAEFI will convene the second CWM and the 5th session of the 4th Standing Council Meeting for 2007 and organize a reception to celebrate its 20th Anniversary.
10. In December 2007, CAEFI will join the IPA of MOFCOM to organize the China Investment Development Forum in Beijing.
In addition, CAEFI will give prompt coordination and support to its specialized committees in the conduct of activities.
Part Three: Notes on the 3rd session of the 4th Council Meeting and 4th session of the 4th Standing Council Meeting: Topics and Preparations
1. The transcript of my report to the Council has already been circulated for your consideration. Please make your comments in the discussion or in writing after the meeting. CAEFI will seriously take up your comments for future improvements.
2. Tomorrow CAEFI will join the IPA of MOFCOM and Wenzhou city government in hosting the 2006 Forum on Dialogue between Private and Fortune 500 Companies at the city’s Great Hall. The agenda has also been distributed. I hope to see your active participation in this forum. Going forward, CAEFI will continue to intensify cooperation with the IPA of MOFCOM in broadening the stage of membership networking.
3. Most recently, many member companies and local FIE associations keen on CAEFI’s work have made applied for positions of Council member, Executive Council member or vice-chairman in CAEFI either on self-recommendation or referral. In line with CAEFI’s Articles of Association and qualification criteria and taking into account the opinions of all concerned parties, CAEFI is submitting a list of candidates for the various positions to this Council. The biographical sketches of the candidates have already been distributed for your examination.
4. On January 6, 2006, the CWM endorsed the new rules on membership contribution. The rules were further modified to the agreement of local FIE associations and a number of member companies. The rules paper has already been distributed for the Council’s examination. Once passed, the new rules will become effective as of January 2007.
5. Based on the resolution of the CWM on January 6, 2006 and the opinions from the national joint conference on FIE associations and member companies, CAEFI has formulated a set of rules on FIE citation and award. The rules are here to be examined by the Council.
6. The people’s government of Wenzhou has arranged a golf tournament and sightseeing for you on November 10. All members are invited.
The city council and government of Wenzhou have lent great support and facilitation for this meeting. Hereby, on behalf of CAEFI membership, I would like to extend my heartfelt gratitude to the city council and government of Wenzhou.
My fellow Council members, the leadership of Chairman Shi Guangsheng, the guidance and attention of vice chairpersons and the warm support of its members were indispensable to the aforementioned CAEFI activities and success over the past two years. On behalf of CAEFI and its people, I salute you and give you once again my sincerest thanks.
Thank you.
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