5. Chinese Economy to Grow by
$900B USD in 2017
• National Development & Reform Commission Chairman He
Lifeng:
• GDP to exceed 80 trillion RMB ($12T); GDP growth 6.9%
YTD; annual growth will reach 6 trillion RMB ($900B)
• Reduced overcapacity of steel/iron production by 110 million
tons, along with 400 million tons of coal
• Emerging industries of strategic importance achieved
revenue of 19.1 trillion RMB
• Regional plans will consolidate growth (Beijing-Tainjin-Hebei
region; Yangtse River Economic Zone)
6. Chinese Private Sector
• Ran Wanxiang, Vice President of United Front Work
Department, CPC Central Committee:
• 25 million enterprises China:
• 60% of GDP growth
• 70% of technological innovations
• 80% of new jobs
7. China to Erase Poverty by 2020
• Tuo Zhen, spokesman for Communist Party of
China:
• 2012-16, people living in poverty decreased from
98.9M —> 43.3M (avg decrease of 13.9M/yr)
• Xi Jinping presided over 17 important meetings
and conducted 25 surveys on poverty alleviation
8. China on Investments
• China to be consistent in country’s policy of protecting legal
interests of foreign investors - General Secretary Xi Jinping,
Communist Party of China (CPC)
• CPC spokesman Tuo Zhen:
• Made in China 2025 strategy, blueprint for upgrading
manufacturing sector, treats domestic and foreign companies
equally
• 2013-16, China invested $560B overseas & paid $100B in
taxes to host countries
• Chinese business leaders look to acquire strong foreign brands,
management skills, and business models
9. China on Investments
• Global FDI $1.52T in 2016 (-13%)
• “Most leaving China are in low-end labor-intensive industries… FDI inflows
in high-tech manufacturing and service (finance, education, and
healthcare).” Zhang Yansheng, Deputy Director, China Council of
Promotion of International Trade
• Reforms in the pipeline include FDI threshold, more free trade zones,
nationwide negative list…
• Xi also announced plans to make state-owned enterprises (SOEs)
bigger, stronger, and more efficient. He said the government will “promote
strengthening, improvement and expansion of state capital, (and)
effectively prevent loss of state assets, deepen reform of state-owned
enterprises, development a mixed-ownership economy, and cultivate
globally competitive world-class firms.”
10. Belt & Road Initiative Highlights
• Silk Road Fund investments has reached $4B;
established in Beijing on Dec 29, 2014
• AIIB has 70 members; established in 2015
• China invested $50B+ in Belt & Road countries
• Chineses businesses built 56 economic and trade
zones in 20+ Belt & Road countries
11. China Attracting Global Talent
• “China will be a major exchange hub for global talent flow by 2022” -
2018 Global Talent Mobility and Wealth Management Report by
Forbes
• “China will be largest export country of students abroad, but also
major destination for global talent to settle down.”
• 6,000 high-level workers came to China under Recruitment Program
of Global Experts in 2016
• China has become largest overseas study destination in Asia and
3rd largest in world
• “Priority should be given to education to speed up its modernization
and to develop education that satisfies people’s needs” - Xi Jinping
12. Chinese Business Travel to
Increase in 2018
• China now has largest business travel budget in the
world at $317B (overtaking USA in 2016)
• 31% of Chinese companies expect to increase travel
budgets next 12 months
• 90% believe increased client-facing travel would likely
increase revenue
• 40% planned to expand travel budgets for opportunities
related to Belt & Road Initiative - China International
Travel Service American Express Global Business Travel
13. BCM Launches Anti-Bribery
e-Learning Tool
• Purpose:
• Increase awareness on corruption and bribery
• FREE Interactive Tool for stakeholders
• E-tool – accessibility, outreach, and
environmentally friendly
• Human Resource, Legal Department, and
Management level
• 46 slides
• Approx. 60 minutes
• What are the requirements?
• A computer with mouse
• An internet access
• Will to do business without bribery
14.
15. Parliamentary Fall Session Agenda Watch
BCM’s Legislative Working Group has identified following highlighted issues as of
interest to BCM’s members (including draft laws on employment and mining):
1. Draft Law on 2018 State Budget of Mongolia
2. Draft Law on 2018 Budget on Social Insurance Fund of Mongolia
3. Draft resolution on main direction of the State Monetary policy in 2018
4. Draft amendment to the Constitution of Mongolia
5. Revised Law on Civil Service and the compiled draft on Amendment Law to the Law
on Civil Service
6. Draft Law on Investment Banking
7. Revised Law on State Registration
8. Revised Law on Property Rights Registration
9. Revised Law on Registration of Individuals
10. Draft law on Teacher’s Development
11. Revised law on donors
12. Draft law on enriched foods
13. Revised law on legal status of the capital city
14. Revised law on standardization, technical regulation and accreditation
15. Draft Amendment Law to the Law on Central Bank (Mongol Bank)
16. Draft Amendment Law to the Law on Banking
17. Other
16. Leveraging BCM for Your
Advocacy Needs - Case Study
• BCM Member Wagner Asia raises issue on Certificate of Origin 6/22
• NAMBC research & draft joint letter 7/23
• BCM organized first meeting with Customs Agency & business community 8/3
• BCM & NAMBC meeting w MFA Director of Foreign Trade & Economic
Cooperation Dr. Enkhbold 8/16 morning
• MFA Director of Foreign Trade & Economic Cooperation Dr. Enkhbold meets w
customs & tax authorities 8/16 afternoon
• Minister of Foreign Affairs presented issue to Government 10/25
• Minister of Foreign Affairs Munkh-Orgil has obtained approval of Parliament to discuss
amendments to law on customs tariff & taxes in Parliament with 72.3% support 12/1
• Law on Customs passed in Parliament with 88.2% support 12/28
17. NewsWire - More Insight
• Businesses that take advantage of changing business
and market landscape is more profitable.
• 75% of profits of a business depends on economy and
industry; remaining 25% up to the business
• As such, NewsWire will increase focus on:
1. Trends
2. Global, Regional, and Macro Trends (that will likely
impact Mongolian businesses)
18. Membership
• Membership: 224
• Tough renewals end of 2016, but 77 new/renewed
members since early this year
• Membership growing again
• Latest New Members include Jacobs, Suu, Korea
Tourism Organization, Ombol LLC, Sky Pro
Logistics, Shugam LLC
19. Why Renew
• Policy & Advocacy - Working Groups, Director of
Policy, Executive Director
• Insight and Knowledge - Annual Summit, Monthly
Meetings, Working Group Meetings, Knowledge
Sharing Sessions, NewsWire, Field Trips, Company
Tours, Conference Calls
• Networking - Annual Summit, Monthly Meetings,
Working Group Meetings
20. What Makes BCM Unique
• BCM is one of the most effective advocacy platforms
and advocates for stable, fair, and transparent business
environment
• BCM is multi-lateral; not country-specific; not industry-
specific. This multi-lateral approach allows for policy
advocacy, knowledge sharing, and networking for
investors and businesses from all countries and all
industries
• BCM serves the largest community of investors and
business leaders from around the world
21. Upcoming Events
№ Event name Date Location Organizer Notes
1 Asia Property Awards 2017
Nov
7-8
Singapore PropertyGuru www.asiapropertyawards.com
2
Knowledge Sharing Session
(KSS) with Patrick McGinnis
on Venture Capital Investing
Nov 14 UB
BCM and US
Embassy
details coming soon
3
Gobi Cashmere Factory Tour
for BCM Members
Nov 16
Gobi
Cashmere
Factory
BCM and
Gobi
Cashmere
Business insight presentation;
factory tour; and special
discounted shopping for BCM
members
4
BCM Tax WG meeting with
Customs Authority
Nov 17
(TBC)
UB
BCM On topic of Customs Taxes
5
“Analytics Based Investing -
Mining Super Cycle”
Conference Call with Hedley
Widdup, Lion Selection Group
Nov 21
Conference
Call
BCM
Topic: Research, analytics, and
perspectives on mining super
cycle
6
PwC’s Academy Seminars Nov-
Dec
UB PwC Various seminars throughout Nov-
Dec
7 BCM 10th Anniversary Ball
Dec 8
(TBC)
UB BCM 10th Anniversary Ball
8
Member-to-Member
Networking Event w Chinese
General Chamber of
Commerce (CGCC)
TBC UB
BCM and
CGCC
under discussions