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China – The Growing Unknown

Societal Trends and Issues. Economy . China – The Growing Unknown. Economic and Political Dichotomy . China – The Growing Unknown. Chinese Communist Party’s 90 th Birthday. The Party Re-affirms Central Control. China – The Growing Unknown. Private Sector Being squeezed Out of China.

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China – The Growing Unknown

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  1. Societal Trends and Issues Economy China – The Growing Unknown Economic and Political Dichotomy

  2. China – The Growing Unknown Chinese Communist Party’s 90th Birthday The Party Re-affirms Central Control

  3. China – The Growing Unknown Private Sector Being squeezed Out of China

  4. China – The Growing Unknown The Five Noes No Multi-party elections No diversity in guiding thoughts No separation of powers No federal system No privatization Wu Bangguo – Chairman of the National Peoples Congress standing committee.

  5. China – The Growing Unknown

  6. China – The Growing Unknown The only exception to this rule involves Western companies with technology that Chinese champions need “China thinks it can pick losers – it found 426 of them – and will ensure their demise.

  7. China – The Growing Unknown Multinationals Involved in China’s Wind Market Was 75% Multinationals have failed to win a central government-funded wind energy project since 2005 Now 33% “The government slapped a 70% local-content requirement on foreigners and hiked tariffs on imported components.”

  8. China – The Growing Unknown Business Reaction Recognise and understand that it is a threat Assess the risks to each particular business Exhaustive Due Diligence Develop and adhere to risk and threat mitigation plans Outsourcing, Off-Shoring and Intelligence Gathering Protect intellectual property Legal agreements may not be sufficient Consider only outsourcing non-critical components Do not outsource all of the process/technology, etc. to one organization Encapsulate Intellectual Property to limit reverse engineering Consider software disable capabilities

  9. Societal Trends and Issues Ageing Pensions Population – Ageing Pensions Economic Dichotomy

  10. Societal Trends and Issues Ageing Pensions Expectation Dichotomy Defined Benefit Defined Contribution Plan Risk Individual Risk

  11. Societal Trends and Issues Ageing Pensions

  12. Societal Trends and Issues Ageing Pensions Freedom 55 Distant Memory?

  13. Societal Trends and Issues Ageing Pensions • Countries and Companies are: • Delaying Eligibility/Vesting • Changing Eligibility Age • Deferring Full Payments • Redefining Benefits Public Sector & Union

  14. Societal Trends and Issues There are Other to Pensions Ageing Pensions 12% Converted to Defined Contribution in 2010

  15. Societal Trends and Issues Ageing Pensions The situation is not unique with more than 75% of all pension plans in Canada facing a deficit at the end of 2010

  16. Business Reaction Recognise and understand pension issues and obligations Assess the risks to corporate plans (funding deficiencies, investments, investment strategies, advisors, etc.) Develop defensive risk and threat mitigation plans Pension Risk Management Affordability and Sustainability Contract Revisions Two Tiered Pension Plans (defined benefits vs. defined contribution) Existing retirees

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