The document summarizes a presentation on building relations with the Chinese government. It discusses the evolving role of the Chinese government, from a planned economy to a more market-oriented model. It outlines the Five Year Plan process and how it guides industry development. It also provides tips on engaging with the government through organizations like associations and think tanks. The presentation concludes with a case study on how ISPE China grew its membership and engagement by collaborating with the Chinese government.
Building Relations with Chinese Government: Key Takeaways from ISPE China Case Study
1. 2012 Association International
Conference
Chinese Government: Pathways to Gaining
Market Access & Building Demand
May 2, 2012
Maria Tong
1
2. Agenda
• Importance of building relations with Chinese
government
• Function of Chinese government
• The recent government’s focus
• Means of engagement
• Things you must know
• Experience sharing from guest panelists
2
4. The evolving role of Chinese
government
1949 - 1978 Planned Economy; Single Public Government Dominant
Planned Economy Ownership; model
1978 – 1992 Transition to Market Economy; Government guided &
Reform: Goal Encourage private economy and market regulated model
Exploring foreign investment;
1992 – 2002 Market Economy goal established Modern limited government
Reform: Framework model
Building
2002 - Perfect Socialist Economy System; 2002 onward: Efficient
Reform: Complete deeper market economic reform government model
System with open policy, multi types of
economic components 4
5. Policy maker
The Government
Project Approval controls the market
Government entrance for foreign
investors and the market
permission for products as
well.
Think Tanks
Chinese The government is the
Policy Making
Associations Industry policy maker and the main
Academic driver for law-making and
Institutions industry development.
The think tanks,
International associations and academic
Society institutions attached to
Public Opinion
the government have
NGO tremendous impact on
Media business activities and
industry development.
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6. The Five Year Plan
• The vision for China national economy and
social development
1st. 5 2nd. 5 3rd. 5 4th. 5 5th. 5 6th. 5 7th. 5 8th. 5 9th. 5 10th. 5 11th. 5 12th 5
1953~ 1958~ 1966~ 1971~ 1976~ 1981~ 1986~ 1991~ 1996~ 2001~ 2006~ 2011~
1957 1962 1970 1975 1980 1985 1990 1996 2000 2005 2010 2015
• Each industry develops its
own Five Year Plan based
on the country’s Five Year
Plan
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7. Influence on your stakeholders
Partners
Company -Government
- Association International
- Institutions Association
- Academic
Individual - Media
Suppliers
How to influence?
• Giving recognition means you are allowed to access to the market
• Approve association/public institution for collaboration or refer you to associations
and institutions for partnership
• Access to the State Own Enterprises, large private enterprises, academic groups
and individuals working for the above
• Drive industry demand by making policy and “government call”
• Build your brand awareness through government events
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11. Chinese government structure
State Council
Ministry/Bureau
(e.g. SFDA)
Association
Government Office
(e.g. China Public Institution
(e.g. International
Pharmaceutical (e.g. CCPIE)
Affairs Department.)
Association)
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12. What does association do in
China?
• Promote policy
• Train industry people
• Issue professional certification on behalf of
government
• Publish academic journals/publications
• Create industry standard
• Organize trade shows and meetings
• Organize domestic and international exchange
• Government research project 12
13. What does public institution
do in China?
Type of Public Institutions:
• Training Centers (e.g. Training Center of SAFEA)
• Foundations (e.g. China International Talents Exchange
Foundation)
• Research Institute (e.g. China Academy of Medical Science)
• Media (e.g. China Pharmaceutical News)
• International Exchange/Cooperation Center (e.g.
China Center for Pharmaceutical Exchange Center)
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15. The Challenges China is Facing
Faced with these challenges, • “Surface” Level Challenges: Housing,
China has developed its 12th FYP healthcare, education, inflation,
corruption, and food safety
• Deep Challenges:
Growth model -
imbalanced, uncoordinated, and
unsustainable
• Deeper Challenges:
Economic vs. political reform -
political reform continues to trail
economic reform
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16. Main Content of the 12th. FYP
Primary Goal: Improving People’s Livelihoods
Theme: Re-balancing Economic Growth
GDP Growth CPI Lower Domestic Develop New Government
at 7- 8% than 4% Consumption Industries Administrative
Oriented Reform
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17. What we need to know
about the Five Year Plan
• Fast economic growth is no longer the
goal, increasing domestic need is a
new goal
• Growth will rely more on science and
technology than on capital, natural
resources, and cheap labor.
• Rebalancing, stability, and people’s
livelihood are the 3 keywords.
• Operating costs are climbing, and
competition is becoming increasingly
intense, especially with SOE.
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20. Case Study of ISPE China(1)
International Society for
Pharmaceutical Engineering
(ISPE)
Challenges:
• Membership was small;
• Participation of Chinese volunteers
was not active;
• Relationship with the government
need to be developed;
Objectives:
• Grow membership
• Improve relationship with the
government
• Understand local market better
• Enhance brand awareness 20
21. Case Study of ISPE China (2)
Solutions:
• Collaborated with China Center for Pharmaceutical International Exchange
(CCPIE), an institution of SFDA to organize joint Conference and SFDA
official to speak
• Invite SFDA and provincial FDA officials to join the complimentary ISPE
regulatory membership
• Assist SFDA officials to attend the ISPE Annual Conference in the US
• Support Chinese government on translation of new China GMP
• Organize Inspector Training Programs for the government inspectors
• Expose in the official industry media affiliated to SFDA to promote brand
awareness
• Form a Regulatory Committee to monitor policy and build regular
communication with government
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22. Case Study of ISPE China(3)
Outcomes:
• Membership increases from less than 100 to around 1000,
nearly 900% within 3 years;
• 1/3 of the new members was generated from the Conference
• Closer relationship was established with SFDA through the
partnership on the Conference
• Contacts (members & potentials) number has grown over
700%;
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23. How to build relations
Relation building
Research Plan Engagement Policy Monitor Review
o Govern- o Goals o /Evaluation
Invite to o Country’s 5
ment meetings Year Plan o Adjust your
o Who to
Mapping and speech plan
focus o Industry
o Attitude o Co-host according
o How to policy
Analysis event to new
access o Media change
o Policy o Partner on News
o What to do o Evaluate
analysis Projects
o Timeline o Industry hurdle and
o CSR Trend success
Campaign factors
o Road Show
o
o Media
interview
o Position
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Paper
24. Principal 1: Win-Win
China’s Current Priorities
Reform and opening-up
Adjustments to industry structure
Indigenous innovation
Energy saving & emission reducing
Harmonious regional development
Win-Win Points
Sustainable business/finance model
Global networking and insights
International standardization
Advanced managerial experience
Advanced body of knowledge
Foreign Associations’ Strengths
24
25. Principal 2: Proactive
communications
• Top to down
• You need “local support” to read
government correctly and overcome
cultural difference
• Follow foreign affairs procedure
• Build personal relations helps
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27. Project negotiation & approval
• Annual budget is usually approved in Q3 or
early Q4 and can hardly be changed
• Going abroad as government official status is
restricted(1~2 times a year)
• Negotiation process is lengthy and
complicated
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29. Things you must know
• Working with government doesn’t necessarily
means business profit, but it will help you
enhance influence and allow you access to the
market
• Show your attitude of “Contribution” to the
Chinese government rather than “long for
money”
• Be patient and persistent
• Clear about your goal
29
30. Things you must know
• Provide market research data to show your
strength
• Finding the right person in the government is
important
• Establish local presence
• Localize your product (local language/content
with local relevance is a must)
30
31. Things you must know
• Ready to handle administrative affairs
• Sign agreement carefully to protect your
benefit
• Be flexible
31
32. Panel Discussion
Experience Sharing and Q&A
Guest panelists:
Abe Eshkenazi, Chief Executive Officer, APICS
Greta Kotler, Chief Global Development Officer,
ASAE
32
33. Contact Information
Speaker Name (1)Maria Tong
Title: Senior Account Director Speaker Name (3) Greta Kotler
Organization: MCI China Title: Chief Global Development
Phone: 86-10-52061077 Officer
Email: maria.tong@mci-group.com Organization: ASAE: the Center for
Website: www.mci-group.com Association Leadership
Phone: 202.326.9506
Speaker Name (2)Abe Eshkenazi Email: gkotler@asaecenter.org
Title: Chief Executive Officer Website: www.asaecenter.org
Organization: APICS Association for
Operations Management
Phone:773.867.1779
Email:aeshkenazi@apics.org
Website: www.apics.org
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