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          Foreign and Military Affairs

          Paris, Beijing move closer in private sector

          By Fu Jing (China Daily)
          Updated: 2010-11-05 07:21
          Large Medium Small

          Businesses in China, too, are becoming much more proactive

          PARIS - When China began its reform and opening up decades ago, learning Western business management skills took on the same importance as absorbing foreign investment for Chinese executives. And today, their foreign mentors are in full agreement: Chinese executives have not only learned well from their Western counterparts, but have also served as bridges between China itself and the outside world.

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          Bernard Ramanantsoa, Dean of the internationally acclaimed management school HEC Paris, is one such believer. Chinese executives of multinationals - whether at State-owned or private companies - now share a similar academic background as that of their Western colleagues, he noted, along with comparable experience and know-how.

          "There is no question that China's executives have caught up with their Western counterparts extremely quickly - thus the bridge between Europe and China has been quite easy to build," said Ramanantsoa during an interview with China Daily.

          He said Chinese multinationals - either SOEs or private companies - are willing to invest in management education, and have consequently been able to successfully develop operations abroad.

          In recent years, HEC Paris has been working intensively with corporate leaders of large Chinese SOE's in cooperation with the training center of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

          Ramanantsoa said the SOE executives' managerial skills are on a par with those of their colleagues in the private sector, which might explain the successful transformation of SOE's from operating in the non-strategic sectors into successful corporations operating in an open economy and highly competitive markets.

          While President Hu Jintao starts his three-day visit in France on Thursday, Ramanantsoa said Sino-French relations are in good shape at political, economical and cultural levels and the strength of Chinese-French political relationship contributes greatly to boosting economic exchanges between the two countries.

          He said French-based large multinational corporations, including Michelin, L'Oreal, Alstom, and Airbus are increasingly investing in China.

          "However, for France, small and medium-size companies should aim to be more involved and explore new markets - especially in the western part of China, and in fast-growing new segments such as renewable energy, electric cars, new materials, and services for municipalities," said Ramanantsoa.

          Meanwhile, Chinese companies are more and more active in Europe. Leading firms such as COSCO, Haier and ZTE are increasing their investment in European countries, mainly in the UK, Germany - and especially France. Haier has just announced its objective to double its sales in Europe, and has chosen Paris for its European headquarters. Bank of China, at the same time, is also expanding its European network giving priority to Chinese companies investing in the region.

          With the rapid development of internal consumption, China will continue during the coming five-year plan to experience a rapid growth and further opening of its economy. He said this will be a true opportunity for both Chinese and foreign companies - as well as a base for stability and growth of international and foreign direct investment.

          "This is also opportunity for the management schools such as HEC Paris," said the dean.

          HEC Paris has been present in China since 1985, and is attractive for Chinese students owing to its strong academic reputation in management sciences such as finance, operations management and business strategy, complemented by a strong practical orientation and strong links in the business community.

          HEC Paris, according to the dean, offers different programs in China such as the HEC Executive MBA in Shanghai in collaboration with the National Development and Reform Commission.

          In Paris there are also more than 150 Chinese students at the HEC campus, who will go on to pursue careers either in China or abroad - and they are in high demand in Chinese and multinational companies, he noted.

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