australia china business council 2013 agm chairman's report

Chairman’s Report Frank Tudor

Annual General Meeting Melbourne

6 November 2013

OUTLINEACBC

2013 Key Milestones

National Corporate Partners

Governance and Structure

Nation-wide 2013 updates branches and committees

Profile in Canberra

Profile in China

Media Coverage & Exposure

8 Chinese Opportunities

THE AUSTRALIA CHINA BUSINESS COUNCIL

• The premier organisation dedicated to promoting trade and investment between China and Australia

• A peak national body representing the collective interests of 1,000 companies

• An independent, membership-based, non-profit organisation

• An organisation with relationships at the highest levels of the Chinese and Australian governments

• Branches in all mainland Australian states, a National Secretariat and a growing strategic presence in China

Who we are


Relationship/Track Focus


Strategy

2013 Key Milestones Benefits to Australian Households of Trade with China report launched by Minister for Energy and Tourism Mr Gary Gray.

Referenced by the outgoing Chinese Ambassador, Mr Chen Yuming during his valedictory speech.

ACBC meets with new Chinese Ambassador Ma Zhaoxu.

Australia China Economic and Trade Forum in Beijing with PM’s luncheon.

Observer to BCA CEO roundtable in Beijing.

Canberra Networking Day, embassy dinner and board retreat.

Manager of Marketing and Development recruited January 2013.

New CEO appointed August 2013, induction held Aug 2013.

2013 Key Milestones Chairman presents in Darwin, Karratha, Perth, Adelaide, Melbourne, Sydney and Canberra.

Asia Society and ACBC send off for former Chinese Ambassador to Australia Chen Yuming.

Participation in Treasury roundtable.

Inaugural AusPECC/CNCPEC Tripartite Meeting HSBC Luncheon with Graeme Bradley AM.

ACBC Hay Group CEO Roundtables held in Sydney, Melbourne and Perth.

Progression of the Victorian State Government offer.

ACBC input into the DFAT China Strategy including 6 references plus case studies provided by the ACBC.

Achievement of an Australia China Council grant of $20,000 for the household report.

Meeting the new Chinese Ambassador

Former Federal Treasurer The Hon Wayne Swan seaking at an ACBC forum

Meeting the new Chinese Ambassador

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FROM OUR STAKEHOLDERS

Business links are vital to the bilateral relationship. I would like to express my sincere

appreciation for your (the ACBC) excellent work in bringing together for that 500 high-level

Australia and Chinese government and business representatives to attend the forum.

– Julia Gillard Prime Minister of Australia 2011

“The Embassy of the People's Republic of China has been delighted to observe the growth of the Australia China Business Council over the past 5 years and wishes outgoing National Chairman Mr Frank Tudor all the best with his future endeavours” – H.E. Ambassador Ma Zhaoxu

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2008-2013 Five Years in Review

Sponsorship

Governance

Structure

Events

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2008-2013 Five Years in ReviewNational Corporate Partnerships2008 – Total contribution $131,5001.Chalco2.Rio Tinto 3.Qantas 4.BHP Billiton

2013 - Total contribution $550,000

2013

2008

National Sponsorship

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Governance

Development of a national constitution in 2011

Comprehensive review and engagement with

members and key stakeholders

Development of a new governance structure

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Structure

Board and Executive

Team

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EventsAustralia China Economic and Trade Forum now

institutionalised and regular, taking place in 2013, 2011 and

2010

Senior leaders visits including Xi Jingping, Li Keqiang, Kevin

Rudd, Julia Gillard and Wayne Swan

National Events – Australia China Economic &Trade Forum 2013

National Events – Prime Ministers Luncheon – Beijing 2013

National Events – ACETF 2010

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Nation-wide 2013 updates

Branches and Committees

New South Wales 2013 in Review

The Fashion Industry in China. Emerging Chinese brands and new market opportunities for Australian businesses – presented by Savills China.

New Significant Investor Visa (SIV) Seminar hosted by McCullough Robertson

Luncheon address on China and the Bi-lateral relationship by Paul Glasson

Foreign Exchange workshop – presented by Western Union Business Solutions.

Networking events, including Chinese New Year dinner, End of Financial Year cocktail party drinks and Christmas drinks.

Monthly SME Roundtables. One of most popular events attended regularly by up to 30 members and potential new members.

Established the bi-monthly China Business Drinks event in Sydney with around 150 attendees

Seminar on China’s Free Trade Zone

Commenced the Chinese International Student Work Placement Program

Received a grant of $23,050 from the Australia China Council to conduct an audit of joint activities with China in agricultural R&D and technologies suitable for commercialisation

Developed a weekly newsletter for our members

NSW 2013 China

Oration

South Australia 2013 in Review

Launched the SA-China Engagement Strategy – a joint ACBC SA and Government of

SA document.

Newly established ACBC SA property and agribusiness sub-committees leading

voices in the discussion in SA around Chinese investment in property and

agribusiness sectors

Membership revenue more than doubled over the 2013 FY

Supported Premier of SA’s mission to China holding a major in-country resources and

energy roundtable bringing together Sa resources and energy companies and Chinese

SOE’s, banks, and other key outbound investment stakeholders

SA launch of the Benefits to Households report reinforcing ACBC’s thought leadership

credentials and primary bilateral business chamber status in SA

SOUTH AUSTRALIA HOLDING SLIDE - IMAGESSouth Australia 2013 in Review

Household Report SA Launch 2013

Northern Territory 2013 in Review

China Investment Forum, Beijing Oct 2013

Attended by 107 participants – 74 from China, 33 from the Northern Territory including Chief Minister Giles and Tourism Minister Conlan. Largest event NT business delegation to China.

Beijing table manners, Darwin Oct 2012

Introduction to dining protocol in Beijing and northern China. Designed for Ministers, staff and business leaders.

Ministerial Delegation support, Tianjin Mining Conference, Tianjin, November 2012

In country Ministerial briefings and support provided by ACBC NT President Guppy. Follow-up ACBC host lunch for Ministerial report to ACBC members and friends.

China political and business delegates briefing, Australia China Minerals Investment Summit, Darwin May 2013

• Briefing and background for 50 delegates prior to conference. Covered current political and economic developments relevant to doing business in China.

China importing for SMEs, 10 tips, Oct 2013

Northern Territory - China Investment Forum, Beijing Oct 2013

Western Australia 2013 in Review

Events

Annual Chinese New Year dinner 700+ attendees

Annual National Day dinner 550+ attendees

Prof Vietor seminar Perth well-attended with 30 attendees

Thought Leadership Seminar with China expert Tang Kongyam 100+ including Consul General

Hong Kong listing seminar

Regional Strategy

Set up two subcommittees Mid West committee (Geraldton) Great Southern Committee (Bunbury)

Membership Drive

Membership growth 200+ SOY, 300 membership EOY

Membership drive was huge, hovering at 240

Leadership Transition

Change in President

Thankyou to Duncan Calder and Peter Chong

Welcome WA President Adam Handley

Western Australia

Victoria 2013 in Review

Sponsors

- Regional Development Project “Growing Business Opportunities in China” in the Barwon South West Region.

- $250,000 grant achieved from Regional Development Australia

Events

37 events in 2013, an increase from 26 in 2012.

Key note addresses include:

The Hon. Julie Bishop MP, Minister for Foreign Affairs

The Hon. Dr Denis Napthine MP, Premier of Victoria

Chinese New Year Celebrations with more than 450 attendees

The Hon. Ian Macfarlane MP, Minister for Energy & Resources

Address by The Hon. Martin Ferguson MP, former Minister for Resources & Tourism

H.E. Mr Zhou Wenzhong’s Key Note Address, Secretary General Bo’Ao Forum

Delegations, plus industry specific seminars

and updates from industry leaders

Victoria

Queensland 2013 in Review

Sponsored Queensland Government Export Awards 2013 - The Tom Burns Award for

Export Excellence in the Asia Pacific.

Sponsoring the ‘Cai Guo-Qiang: Falling Back to Earth’ exhibition at GOMA focusing on

business and cultural tourism with China November 23/11/13

Advocacy and partnership building: Worked closely with Austrade and DFAT to host

Australian Consuls General and Senior Trade Commissioners;

Thought leadership; advice on current trade and investment issues; and coordinated

Queensland responses to policy submissions and ACBC publications including advice on

internationalization of RMB; Australia in the Asian Century submission

Regional partnership initiative Gold Coast Event held 13-06-13

Relationship and policy responses to the incoming Queensland State Government;

including industry seminars The Honourable Tim Nicholls MP guest speaker

Queensland – Cai Guo-Qiang sponsorship

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Membership, Marketing & Development

Membership, Marketing and Development Committee:

Formed late 2011

Branch and non-branch directors

Support objective of significant growth and expansion over a 2-3 year

period.

Strategic “whole of organisation” review conducted on:

ACBC member services,

revenue base,

brand

marketing positioning

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Membership, Marketing & Development

National Membership Survey conducted in early 2012 + mid-2013

Determined accurate member views on ACBC activities and services, desired

organisational direction and major priorities

Defined marketing vision and strategic objectives

Prepared marketing plan covering:

- member servicing, growth in membership, product initiatives, event

and pricing recommendations, competitive analysis and revenue plan

New national sponsorship packages developed and implemented in 2012

Recruitment of Manager Marketing and Development in 2013

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Active Thought Leadership- balanced and factual representation -

Policy positions

Hosting international thought leaders forums

Delivery of 5th Household Report

• Benefit to Australian Households of Trade with China

• Achievement of $20,000 grant from Australia China Council

Hosting out-bound and in-bound delegations

Business Leaders Roundtable Forums

National and State Networking events

Speeches

Media – launches, seminars, publications

Thought Leadership National Board Committee

TRADE

China in the Australian Household

Source: ACBC Household Report 2012

Table 1 Principal Imports from China by Category, $A million

2006 2007 2008 2009 2010 2011 2012

Telecom equipment & parts 1,751 2,497 2,898 3,252 3,854 4,469 4,584

Textiles, footwear & clothing 4,143 4,225 4,783 4,871 5,124 5,185 5,309

Computers 2,204 2,353 2,754 2,903 3,960 4,344 4,385

Prams, toys, games & sporting goods

1,355 1,458 1,992 2,128 1,870 1,681 1,613

Furniture, mattresses & cushions 1,141 1,279 1,534 1,556 1,605 1,705 1,807

Other 14,889 17,203 21,296 21,070 22,843 24,761 26,766

Total 25,483 29,014 35,258 35,780 39,256 42,144 44,464

Source: DFAT (2013), Composition of Trade

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Canberra Networking Day 2013 Household Report

Household Report Launch 2013 Thought Leadership Seminar Series

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Finance Committee FY13

Finance Committee Achievements FY13

Quarterly Committee Meetings to review material finance issues including those

directed by the Board (eg Victorian Office offer);

Development of Financial Regulations & Policies including the ACBC Expense

Authorisation & Reimbursement Policy and China Committee Financial Regulations

Review of Branch Budgets and development of National Board Budget Scenarios

TAKEAWAYS

Frequent visits to Canberra by Chairman and executive team to meet with Ministers, Departmental

officials and members of the Chinese diplomatic service

March meetings with Ministers Offices and Chinese Embassy ahead of the Canberra Networking Day

Regular meetings with PM&C, Treasury, DFAT and RET officials

6 cabinet ministers at Canberra Networking Day 2013

Frequent ministerial presentations to Branches

Profile in Canberra

TAKEAWAYS

Established a significant and well respected presence in China with in-Country director (2009) and now China Committee headed by National Vice President (2012).

Firmly established an ability to draw unique intelligence and use this to position to create opportunities for members and sponsors in Australian and China based activities.

Supported further development of relationships with Australian Government drawing from our in-country presence.

Established and developed relationships with all key government departments and Party including regular dialogue, co-hosting of events, exchange of key strategic issues, jointly pursuing initiatives, and regular representations. These included, at least, MOFCOM, NDRC, State Council, the Party, CBRC, and other government agencies in China.

Profile in China – 2008-2013

TAKEAWAYS

Developed significant brand awareness in China for ACBC. Vastly different in Chinese media than five years ago. ACBC is now extremely well known as the KEY and most important bi-lateral business organization.

Assisted members and sponsors to lobby in China for key outcomes. This has included engaging Chinese Government and companies to achieve outcomes that benefit Australian companies.

Conducted Media intensive campaigns for outcomes for Australia and the bi-lateral relationship including on debate around Chinese investment in Australia; Asian Century Whitepaper

Significant support for National and branch activities in Australia.


TAKEAWAYS


ACETF

TAKEAWAYS

Established the key Australia China Economic and Trade Forum and held this event in 2010 in Canberra; 2011 in Beijing; and 2013 in Beijing with Prime Ministers Julia Gillard and Kevin Rudd, and President Xi Jinping, and Premier Li Keqiang.

Established the High Level Industry Dialogues and held these in 2011, 2012 with Ministers Martin Ferguson, Deputy Prime Minister Swan.

Performed significant work establishing and running Key industry Dialogues for state branches including South Australia, Western Australia, Victoria, and Northern Territory

Achieved opportunities to host MOFCOM Minister Chen Deming in the ONLY dialogue ever between a Chinese Minister and 10 or more Australian Company senior representatives.


TAKEAWAYS

Established the China Committee head by the National Vice President (March)

Held ACBC Flagship event – the Australia China Economic and Trade Forum and luncheon attended by Hon. Julia Gillard Prime Minister of Australia, attended by 600 delegates.

As part of the Prime Minister’s visit also: attended the CEO Roundtable; Australia China Fund Dialogue; the signing of the AUD-RMB Conversion Agreement.

Supported the work of the National Office through the provision of key in-country intelligence

Further developed strategic working relationship with Australian Government presence in China.


TAKEAWAYS

Supported branch activities in China including Northern Territory – China investment seminar; and Victorian Government Premier Visit with deputy Premier.

Support visits of Australian Government Ministers and Parliamentary representatives with introductions, strategic advice, and other

Profile in China – 2013

TAKEAWAYS

Several media engagements with wider ranging coverage of the Council’s national program in a range of media outlets including:

The AustralianThe AFR The Business (ABC Lateline Business) The Sydney Morning Herald, The Age Xinhua China Central Television Phoenix Television The ABC (TV, Radio & Online) Sky News SBS World News Australia (TV & Radio) QANTAS Inflight Media

MEDIA COVERAGE AND EXPOSURE

TAKEAWAYS

1. Free Trade Agreement

2. Community Engagement

3. Infrastructure Investment

4. Innovation and Manufacturing

5. Special Development Zones

6. Broad Based Dialogue

7. Education and Tourism

8. Agricultural Trade and Investment

“Opportunities multiply as they are seized.”Sun Tzu – The Art of War

8 Chinese Opportunities

TAKEAWAYS

Household Report Australia China Trade Almanac. A new source document

for Australia China watchers.

Free Trade Agreement ACBC is proactively involved in negotiations of the

FTA with China.

Sponsorship clear well-articulated value proposition with dedicated

involvement of all national board members.

Institutionalised dialogue to cement the business perspective into dialogue

between our nations. ACETF is a great example.

Membership is our base service to members is key, particularly in new

regional areas.

Looking ahead