The Business Titans to Watch at China's Big Political Gathering
These are the business titans who’ll be in the spotlight when China’s legislature and political advisory meets.
(Bloomberg) -- It’s not just a party of politicians. Among the rich and powerful gathering in Beijing for the annual meetings of China’s legislature and political advisory body are some of the biggest names in business.
The stakes are high: President Xi Jinping will begin his second five-year rule with cabinet reshuffles, and a constitutional amendment is set to scrap his two-term limit. It’s also an opportunity for top executives to shape the direction of the world’s second-largest economy. They will be submitting proposals and advice, likely lobbying for favorable policies.
The National Party Congress opens on March 5. Here are some of the most prominent executives who will be in the spotlight, how they figure in China’s future, and their priorities:
Tech Titan - Pony Ma
Who: The billionaire founder and chairman of Tencent Holdings Ltd., the gaming giant and operator of WeChat, will serve for another five years on the Guangdong provincial delegation to the National People’s Congress, a 3,000-member body that meets each year.
What’s at Stake: The social media titan has recently invested in brick-and-mortar retail in a race against Alibaba Group Holding Ltd. Chinese tech giants are rushing into physical retail to ramp up adoption of their digital wallets, gain valuable consumer data and drive new users to their services.
What to Watch For: Last year, Ma proposed building China’s own Bay Area equivalent with a technology zone in southern China that would include the financial center of Hong Kong and the gambling city of Macau.
Smartphone Upstart - Lei Jun
Who: The chairman and co-founder of smartphone maker Xiaomi Corp. is a member of the Beijing delegation to the NPC.
What’s at Stake: Chinese smartphone makers have outflanked Apple Inc. in the local market and are aggressively expanding overseas. Xiaomi is looking to enter developed markets as it consolidates positions in emerging markets such as India and Russia. Xiaomi is planning an initial public offering that could give it a valuation of $100 billion.
What to Watch For: In 2017, Lei’s proposals touched on China’s national strategy for artificial intelligence, developing so-called new retail to boost growth, and leveraging President Xi’s Belt and Road initiative to help Chinese tech companies expand abroad, according to local media reports.
Auto Visionary - Li Shufu
Who: The billionaire founder of automaker Zhejiang Geely Holding Group Co. is a member of the Zhejiang NPC delegation.
What’s at Stake: The size of China’s car market has already surpassed the U.S., and the government is urging companies like Geely to go overseas to gain a foothold as the industry consolidates. Li last month became the top shareholder in Daimler AG, which will help his company better compete with the likes of Google and Apple in the shift to electric and self-driving vehicles.
What to Watch For: Last year, Li offered advice on promoting methanol-fuel vehicles to ease China’s oil shortage and fight pollution, as well as on improving laws and regulations regarding autonomous driving technology, local media reported.
Appliance Queen - Dong Mingzhu
Who: The chairwoman of Gree Electric Appliances Inc. of Zhuhai is an NPC delegate from Guangdong.
What’s at Stake: Having led Gree to become China’s biggest air-conditioner maker, Dong has set her eyes on new-energy vehicles. Government incentives have made electric vehicles more affordable to buyers, helping the market surpass the U.S. as the world’s biggest in 2015. The country now accounts for half of global EV use.
What to Watch For: Dong’s suggestions in 2017 included promoting innovation and protecting intellectual property rights, as well as setting limits on how many years home appliances could be used, Chinese media reported.
Property Magnate - Hui Ka Yan
Who: The founder of developer China Evergrande Group is also a long-serving member of the Chinese People’s Political Consultative Conference, the top political advisory body.
What’s at Stake: Debt-laden developers like Evergrande may see headwinds in the property market amid local governments’ stringent home-buying curbs and the potential for liquidity to tighten. Evergrande, whose Hong Kong-listed shares jumped 458 percent in 2017, plans to list a property unit on the mainland where central and local governments are determined to cool housing prices.
What to Watch For: In 2017, Hui spoke in favor of long-term limits on home prices and raising the entry barriers to property development, according to local media reports.
The Ex-Minister - Lu Dongfu
Who: The general manager of China Railway Corp. and former vice minister of transport is a delegate from Guangdong to the legislature.
What’s at Stake: The state-owned operator of the world’s longest bullet-train network is mulling mixed-ownership reforms. Such restructurings involve the sale of minority stakes in state-owned companies to private investors, with the goal of making them more efficient without surrendering government control.
What to Watch For: China is plowing 3.5 trillion yuan ($552 billion) into expanding its railway system by 18 percent over the next two years. Its high speed network by then will cover 80 percent of the country’s big cities.
Drug Pioneer - Sun Piaoyang
Who: The chairman of Jiangsu Hengrui Medicine Co., China’s biggest drugmaker by market value, serves on the Jiangsu provincial delegation to the NPC.
What’s at Stake: The government has launched dramatic reforms to the drug-approval process to ensure quality and build homegrown industry champions. Annual spending on medicine has crossed $100 billion in China as diseases like diabetes and cancer have surged. Jiangsu Hengrui has been one of the most successful companies to pivot from selling cheaper generics to developing innovative therapies, and to push into markets such as the U.S.
What to Watch For: Sun’s suggestions last year included easing restrictions on pharmaceutical companies for using human genetic resources in research, and pushing back against cumbersome drug-price negotiations, an official database shows.
The Dealmaker - Yuan Yafei
Who: The chairman of conglomerate Sanpower Group is a member of the national political advisory body.
What’s at Stake: A deal spree has given Sanpower foreign assets including Britain’s House of Fraser department-store chain. While other acquirers such as Anbang Insurance Group and HNA Group have had their wings clipped by Beijing and scrambled to unwind overseas investments, Sanpower appears to be on the government’s good side, as shown by Yuan’s new term on the advisory body and the company’s ability to close deals under foreign-exchange restrictions.
What to Watch For: Yuan told local media last year that his proposals focused on building a legal framework for cell therapy regulations, loosening restrictions on medical-equipment imports, and protecting intellectual property rights.
--With assistance from Lulu Yilun Chen Gao Yuan Tian Ying Jing Yang de Morel Emma Dong Dong Lyu Rachel Chang and Haze Fan
To contact Bloomberg News staff for this story: Li Hui in Beijing at hli355@bloomberg.net.
To contact the editors responsible for this story: K. Oanh Ha at oha3@bloomberg.net, Jeff Sutherland, Emma O'Brien
©2018 Bloomberg L.P.
With assistance from Li Hui