New growth shoots

"Innovation" was the buzzword when the panelists discussed new paths of growth. They examined every aspect from green incentives, business models to changing consumer habits for solutions, in an effort to negate a potential social backlash from job losses and restore customer confidence and entrepreneurial spirit.

Although it's hard to predict when and where new business models and technologies will emerge, opinions during the meeting surrounded innovations related to alternative energy, energy efficiency and carbon emission reduction.

Premier Wen called for the green shoots of recovery to be tended through coordinated moves by world leaders to fight global climate change while cautioning of "many uncertainties" for the global economy.

Wan Gang, Minister of Science and Technology, said China has made remarkable achievements in major government-funded projects of semiconductors, LED lighting, electric cars, IT network convergence, solar power and high-speed railway networks since 2000.

"Chinese scientists are getting closer to their peers in other nations in future-oriented technological research and development work," Wan said.

Electric-powered taxies and shuttle buses were in service this time in Dalian to showcase China's commitment to developing green cars.

"The government must promote the research and development of new technologies," Wan said. "Besides, the government will encourage small- and medium-sized enterprises that are sensitive to demand fluctuations to innovate products and services, as a way to survive the competition." Dollar is optimistic about investments in alternative energy and healthcare reform, too. "In both China and the United States, energy strategy and healthcare reform can help the economies recover from the slowdown. Well-designed reforms will create new incentives and opportunities for innovation and private investment. Both challenges can be turned into opportunities," he said.

Corporate decisions

Apart from discussions at the macro policy and industry levels, business leaders also offered remedies to corporate governance.

During a debate hosted by CCTV, experts discussed whether it is an advantageous time for Chinese enterprises to purchase companies overseas.

Only 20 percent of the guests and audience supported Chinese enterprises engaging in mergers and acquisitions overseas during the recession.

John Zhao, CEO of Hony Capital, is an advocate of Chinese companies' overseas acquisitions, and attributed the previous acquisition failures to the unsuccessful and inexperienced negotiating procedures.

"If a company that has established its leadership in its business niche, considers that it's a must for it to go abroad to integrate better resources and improve management, this is the best time," Zhao said. "After all, globalization has forced domestic companies to compete with multinationals even at the domestic market."

Wang Jianlin, Chairman and President of Dalian Wanda Group, reminded companies of adequately preparing for the social responsibility they will assume from the acquired company, such as employees' welfare, insurance and healthcare.

"Organic growth through mergers and acquisitions will not bring companies effective profit growths in the short term," Wang said. "These burdens could make you collapse or give up when you haven't even finished the resource integration."

Since managing an enterprise is much trickier than purchasing one, most Chinese companies are not ready for overseas acquisitions right now, said Liu Erfei, Chairman of Bank of America Corp.'s China operation.

Sir Martin Sorrell, CEO of WPP Group, a leading marketing consulting firm, has confidence in Chinese enterprises' overseas acquisitions.

"Organic growth is always the strongest way for a company to grow, but acquisitions are the quickest way to get there," Sorrell told Beijing Review. "But the company has to focus on organic growth and explore all the opportunities in the domestic Chinese market first. Having done that or gotten close to that, start to explore opportunities outside China. I would suggest Asia first, then the United States, and then from Asia to Europe, in part because of contiguous geography."

About Dalian

The city stretches from 120°58' to 123°31' east longitude and 38°43' to 40°10' north latitude. The city, covering an area of 12,574 square km, is located at the southern tip of Liaodong Peninsula.

Dubbed "the Pearl of North China," Dalian is currently a hub of shipping, tourism and business in the northeastern part of China.