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Business Forum
2007




China at a glance
by Bernhard Adriaensens
International Consultant
bernhard@baa-consulting.com
                              Business Forum China – 20 November 2007   1
                                                                            1
Key points given by Prof. Bernhard Adriaensens
(Solvay Business School) as an introduction to the
Business Forum organized by the Federation of
Belgian Enterprises and Roland Berger
Consultants.

                               November 20, 2007


                                        Business Forum China – 20 November 2007   2
                                                                                      2
World Trade 1820 - 2025 (in percentage of world GDP)
Source : Angus Maddison - Historical statistics - OECD

 90,0

         33 %      17 %          9%             5%             5%          12 %                  25 %
 67,5

                                                26 %           25 %        20 %                  18 %
                                 33 %
 45,0              33 %
         23 %
 22,5


    0
         1820      1870          1913           1950           1973        2001                 2025
        USA      Latin America          Japan          India          Western Europe                     China


                                                                           Business Forum China – 20 November 2007   3
                                                                                                                         3
World GDP (in million international US$ -1990 value)
Source : Angus Maddison - Historical statistics - OECD

 50 000

                                                         GDP per capita in US$
 37 500
                                                          Selected countries

                                                          1. G.D.L.   81.551
 25 000
                                                          4. U.S.A.   43.223
                                                          14. Belgium 34.749
 12 500                                                   89. P.R.C.   7.722


      0
       1820    1870    1913    1950    1970    2006
                                                           Business Forum China – 20 November 2007   4
                                                                                                         4
China : Don’t be fooled by the numbers
                                      1.731                       502.303
   + 11,5 %                                              Scientists, engineers,
Economic growth                   Universities
                                                           PhD,...graduated
3d quarter 2007
                                                                in 2004

                     10.000
               Yuan - Annual income        24 billion US$                                750
                 in urban areas              PRC R&D                            Multinational
                                           budget in 2007                       R&D centres
1.350.000.000
 Inhabitants              3.587
                    Yuan - Annual income
                      in rural areas          45 billion US$                18 billion US$
     25 million                                    PRC R&D                      USA R&D
 New jobs created                                budget in 2010               budget in 2010
    per year

                                                                  Business Forum China – 20 November 2007   5
                                                                                                                5
China Nr 1 buyer in the world...

China is ...
  the second largest energy consumer in the world,
  the third largest consumer of precious metal,
  China uses 25 % of the world steel production,
  is the major buyer of cement, building cranes,...

China is the third largest producer of cars
produces 70 % of toys and 50 % of shoes, DVD players,
digital cameras,...

China is the third economic power since July 2007 !
                                             Business Forum China – 20 November 2007   6
                                                                                           6
The future steps of China economy




                            From factory of the world...


                                         Business Forum China – 20 November 2007   7
                                                                                       7
The future steps of China economy
...to state of the Art innovator




                       Beijing Fashion Week - November 2007
                                              Business Forum China – 20 November 2007   8
                                                                                            8
The future steps of China economy
     and future world brands owner




First Survey on chinese
 brands by Interbrand




                                        Business Forum China – 20 November 2007   9
                                                                                      9
This is not anticipation...

                                Beijing airport



                                                         Beijing Olympic stadium



CCTV new HQ




...this will be ready for Beijing 2008
                                                  Business Forum China – 20 November 2007   10
                                                                                                 10
This is not a conclusion




      “ Let China sleep, for when she wakes,
             she will shake the world”
                      Napoleon Bonaparte




                                           Business Forum China – 20 November 2007   11
                                                                                          11

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Bernhard Adriaensens : Business Forum China 20/11/2007

  • 1. Business Forum 2007 China at a glance by Bernhard Adriaensens International Consultant bernhard@baa-consulting.com Business Forum China – 20 November 2007 1 1
  • 2. Key points given by Prof. Bernhard Adriaensens (Solvay Business School) as an introduction to the Business Forum organized by the Federation of Belgian Enterprises and Roland Berger Consultants. November 20, 2007 Business Forum China – 20 November 2007 2 2
  • 3. World Trade 1820 - 2025 (in percentage of world GDP) Source : Angus Maddison - Historical statistics - OECD 90,0 33 % 17 % 9% 5% 5% 12 % 25 % 67,5 26 % 25 % 20 % 18 % 33 % 45,0 33 % 23 % 22,5 0 1820 1870 1913 1950 1973 2001 2025 USA Latin America Japan India Western Europe China Business Forum China – 20 November 2007 3 3
  • 4. World GDP (in million international US$ -1990 value) Source : Angus Maddison - Historical statistics - OECD 50 000 GDP per capita in US$ 37 500 Selected countries 1. G.D.L. 81.551 25 000 4. U.S.A. 43.223 14. Belgium 34.749 12 500 89. P.R.C. 7.722 0 1820 1870 1913 1950 1970 2006 Business Forum China – 20 November 2007 4 4
  • 5. China : Don’t be fooled by the numbers 1.731 502.303 + 11,5 % Scientists, engineers, Economic growth Universities PhD,...graduated 3d quarter 2007 in 2004 10.000 Yuan - Annual income 24 billion US$ 750 in urban areas PRC R&D Multinational budget in 2007 R&D centres 1.350.000.000 Inhabitants 3.587 Yuan - Annual income in rural areas 45 billion US$ 18 billion US$ 25 million PRC R&D USA R&D New jobs created budget in 2010 budget in 2010 per year Business Forum China – 20 November 2007 5 5
  • 6. China Nr 1 buyer in the world... China is ... the second largest energy consumer in the world, the third largest consumer of precious metal, China uses 25 % of the world steel production, is the major buyer of cement, building cranes,... China is the third largest producer of cars produces 70 % of toys and 50 % of shoes, DVD players, digital cameras,... China is the third economic power since July 2007 ! Business Forum China – 20 November 2007 6 6
  • 7. The future steps of China economy From factory of the world... Business Forum China – 20 November 2007 7 7
  • 8. The future steps of China economy ...to state of the Art innovator Beijing Fashion Week - November 2007 Business Forum China – 20 November 2007 8 8
  • 9. The future steps of China economy and future world brands owner First Survey on chinese brands by Interbrand Business Forum China – 20 November 2007 9 9
  • 10. This is not anticipation... Beijing airport Beijing Olympic stadium CCTV new HQ ...this will be ready for Beijing 2008 Business Forum China – 20 November 2007 10 10
  • 11. This is not a conclusion “ Let China sleep, for when she wakes, she will shake the world” Napoleon Bonaparte Business Forum China – 20 November 2007 11 11