Li Daokui, Professor of Tsinghua University——Two Major Roles of the GAC
What roles should the Council Play? I think there are two aspects, namely to help CMIG find significant investment opportunities in a more rapid and better way; and to control risks. CMIG's investors will be informed of areas which not only provide opportunities, but also have risks that shall be controlled. If the Council could do a good job, it should be able to help CMIG integrate the wisdom of two kinds of entrepreneurs and seize on opportunities in the changing world. Moreover, we should learn from Mr. Chearavanont and Mr . Li Ka-shing to control risks stably in the long term and consolidate our industries. If we could harness these two kinds of wisdoms, CMIG should be able to become a leading company in the world in which I am fully confident.
Currently, I think two opportunities deserve our attention. The first one involves Europe. I believe the new round of quantitative easing policy announced by Europe at the Annual Meeting of the World Economic Forum held in Davos is positive for Europe as a whole, based on the consistent reactions of participants at the Annual Meeting. Europe could offer many technologies and technical brands China is in urgent need of using. So I suggest enhancing studies on Europe and acquiring assets in Europe before the asset price in Europe fully goes up.
The second opportunity is related to Southeast Asia where Mr. Chearavanont's company operates. In 2015, Southeast Asia will establish the Southeast Asia Economic Community which is equivalent to the EU. The difference from the EU is that its population doubles that of the EU. We haven't seen the impact of the economic integration of 600-million population on the world economy. So please keep a watchful eye. In addition, we have excellent Chinese investors who enjoy strong support in ASEAN. A large batch of Chinese merchants, represented by Mr . Dhanin Chearavanont, has run businesses for many years in ASEAN. I suggest carefully studying Southeast Asia and making proper greenfield investment. It is an upward economy where we will make greenfield investment in Southeast Asia. Investment in the EU will be asset acquisition. The risks are needless to say. In particular, geopolitical risks are the topics mostly discussed at the Davos Forum. Russia hasn't fully estimated its risks. Many participants told Russian representatives that they have risks which are unrealized and they even looked forward to taking policies when Israel and South Africa were under sanction, which won't be sufficient. Russia's reliance on natural resources has gone beyond that of South Africa and Israel at that time. So we need to take geopolitics very seriously. I believe our experts will surely provide CMIG with many good suggestions for geopolitical risks.