Se04 the story of china


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  • After the Opium War in 1840, the defeated Qing government signed the humiliating Treaty of Nanking , and since then, China was gradually reduced to a semi-colonial and semi-feudal country
  • On the course of the secondary industry to the service industry:
    China has entered the middle-later stage of industrialization.
    Shanghai and Beijing has been in the post-stage of industrialization.
    Tianjin, Jiangsu, Zhejiang, Guangdong provinces have been in the second half of the later stage of industrialization.
  • Se04 the story of china

    1. 1. China’s meeting industry in a transition period Prof. Lan Xing Shanghai University of Int’l Business & Economics (SUIBE) November 3, 2013 ICCA Congress, Shanghai
    2. 2. Now Past Shanghai ICCA GA Shanghai 20131103 2
    3. 3. I. Historical background: Where is China? ICCA GA Shanghai 20131103 3
    4. 4. I. Historical background: How’s the political environment? • Founding of the People’s Republic of China (PRC) in the year of 1949 • New China carried out socialist system • Suffered from political and diplomatic blockade from the West ICCA GA Shanghai 20131103 4
    5. 5. I. Historical background: The economic situation? • The economic structure massively ruined when the new government took over this war-torn country • The economic and trade embargo from the outside world • The new China adopted the principle of “Self-reliance” to restore the national economy • We implemented the “Planned economy” ICCA GA Shanghai 20131103 5
    6. 6. What’s the position of Shanghai? ICCA GA Shanghai 20131103 6
    7. 7. How Shanghai developed? • In 1843, Shanghai was forced to open to the outside world as commercial port, due to the signing of “The Treaty of Nanking” . • Since then, foreign goods and capitals swarmed into Shanghai. • Then appeared docks and warehouses; Concessions and settlements set up, banks opened along the Huangpu River • A small fishing village gradually turned to a metropolitan city in the Far East in early 20th century. ICCA GA Shanghai 20131103 7
    8. 8. What characteristics of Shanghai? G.. Londo • The largest city in China G London: 1, G.. Londo 738 km G London: 8. n: 1,738 km 22 2 Municipal area: 6,341 km n: 8.,,301 mill 301 milliion(2 on(2012)) Population: 23.80 million(2012) 012 • The economic center, trade center, financial center, shipping center • Blended western and eastern cultures in terms of architecture , business conducts, lifestyle, arts, cuisines…… ICCA GA Shanghai 20131103 8
    9. 9. II. Economic operation under transition period Since 1978, China has carried out the policy of “Economic reform and Opening to the outside world” Thus, China entered the transforming era ICCA GA Shanghai 20131103 9
    10. 10. From Planned economy to Market economy Bears both economic features ICCA GA Shanghai 20131103 10
    11. 11. Some key milestones to the market economy In December 2001, China entered WTO after 15 years of difficult negotiation In 1990, Shanghai Pudong New Area development launched In 1980, the 1st Special Economic Zone set up in Shenzhen, following another 5 and 14 coastal cities opened to outside ICCA GA Shanghai 20131103 11
    12. 12. Sources from: Dr. Zhou Hanmin, policy-making consulting adviser of Shanghai Municipality
    13. 13. China’s GDP per capita in 2012 Qinghai: USD3545 Beijing: USD10,377 ≈Slovakia ≈Turkmenistan Jiangsu: USD7681 ≈Belarus Yunnan: USD2320 ≈Vanuatu Zhejiang: USD7355 ≈Azerbaijan Shandong: USD6078 ≈S. Africa Shanghai: USD10,827 ≈Saudi Arabia Guangdong: USD6440 ≈Kazakhstan Source from: ICCA GA Shanghai 20131103 13
    14. 14. Sources from: Dr. Zhou Hanmin, policy-making consulting adviser of Shanghai Municipality
    15. 15. The ratio of tertiary industry USA, Fran USA, France, I ranged fr ce, Italy, UK, Germany ranged from 7taly, UK, Germany, Jap om 7 1 % t o 7 9 , Japan: 1% to 79.80% an: .80% In 2012, China’s tertiary industry takes up 44.1% in GDP Beijing 76.36% Hong Kong 94.00% Guangzhou 61.50% Macau 93.60% Shanghai Taiwan 68.80% 60.00% Sources from: ICCA GA Shanghai 20131103 15
    16. 16. III. Meeting industry in the transition period What kinds of “meetings” we had mostly before “Opening to the outside world”? ICCA GA Shanghai 20131103 16
    17. 17. III. Meeting industry in the transition period How was the situation of the meeting market thereafter? • Since 1989, China began to host an increasing number of international conferences • During this period, the Chinese government provided the financial support to these international meetings • Since 1995, the central authority has issued several directives in order to cut down government-funded international meetings to be held in China • Now self-financed meetings are more encouraged ICCA GA Shanghai 20131103 17
    18. 18. Sources from: The Statistic Report of China’s meeting industry in 2011
    19. 19. What’s special in China’s market? ICCA GA Shanghai 20131103 19
    20. 20. What’s special in China’s market? • All international meetings to be held in China must get approval by the central/provincial governments • Government-funded meetings take up a large share of the meeting market. High financial subsidies • Weak position of trade association meetings • Low rate of utilization of newly-built convention centers nationwide • Local governments encourage more meetings from abroad • Mature market mechanism yet to be established along with development of a sound legal system for the industry ICCA GA Shanghai 20131103 20
    21. 21. Some new policies 4. Overseas delegates reach 500-1000 persons, the meeting will be granted 300,000 RMB. 5. Overseas delegates reach over 1000 persons, the meeting will be granted 500,000 RMB. …… ICCA GA Shanghai 20131103 21
    22. 22. Some new policies Themes overlapping, duration too long, meeting scale too large, financial burdens increasing; Some going in for ostentatious scenes, excessive expenditures, huge waste; Meetings with no substantial contents, lack of real effect Some main points: • Strictly abide by the approval rules • Tight control of the total number of int’l meetings in China • Reduce the meetings of over 100 delegates. For meetings co-hosted with foreign bodies, the scales keep the same level as the previous one or below. ICCA GA Shanghai 20131103 22
    23. 23. Some new policies <Financial Administrative measures and expenditure standards for international meeting to be held in China> •Applicable to various int’l meetings co-hosted by central governmental bodies and foreign institutions or entrusted by those bodies, and that apply for central financial allocation ICCA GA Shanghai 20131103 23
    24. 24. Some new policies some main points: The cost items and standards of int’l meetings: •Venue rental: The rental of the venue is set at 100 yuan(RMB), 150 yuan, 200 yuan/day/person respectively for a small-, medium- or large-scale meeting. • Buffet for opening or closing ceremony is set at 150yuan/delegate (incl. beverage and service fee) • Board and lodging cost for work staffs is set at 300yuan/day/person during the meeting. ICCA GA Shanghai 20131103 24
    25. 25. IV. Greater potential market A bigger step to spur more free economic operation with outside world • To focus on facilitating investment and commerce from goods management previously • To open wider the tertiary industry with more diversified modes, especially the financial sector • To simplify formalities of trade settlement, tax preference and currency convertibility Potential benefits: • Government policies more transparent • Administrative measures more flexible to foreign firms • Spill-over effects to the outside areas ICCA GA Shanghai 20131103 25
    26. 26. IV. Greater potential market My advice: • Keep a close eye on the fast-changing market • Be adaptable to the unique situation • Be patient to gain your success in China ! ICCA GA Shanghai 20131103 26