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Posted on Sustainabilitank.info on October 10th, 2012
by Pincas Jawetz (pj@sustainabilitank.info)

CHINA DAILY – ASIA PACIFIC has sections on Asia Pacific, Mainland China, HK/Macao, and Taiwan – quite balanced news and tacitly reminding the US that there are global issues that are unfettered by the US elections. Simply said – the US Administration must be engaged all the time and cannot afford the luxury of taking time out while electing the President of Ohio and Florida.

Some articles today are:

Washington does not accept Japan’s claims to Diaoyu Islands

By Zhao Shengnan
October 9, 2012 – 9:00am www.chinadailyapac.com

A US Congressional report said Washington has never recognized Japan’s sovereignty over the Diaoyu Islands and takes no position over the territorial row between Japan and China.

The report, published on Sept 25 by the Congressional Research Service, said the US recognizes only Japan’s administrative power over the Diaoyu Islands after the Okinawa Reversion Treaty was signed in 1971.

China-Japan relations hit the lowest point in years after Tokyo’s so-called purchase of the Diaoyu Islands on Sept 10, a move sparking wide protest across China. The islands have been Chinese territory for centuries.

During Senate deliberations on whether to consent to the ratification of the treaty, the US State Department asserted that the US took a neutral position with regard to the competing claims of Japan and China, despite the US’ return of the islands to Japanese administration.

“Department officials asserted that reversion of administrative rights to Japan did not prejudice any claims to the islands,” said the report from the Congress’ think tank, the public-policy research arm of the US Congress.

Chinese Foreign Ministry spokesman Hong Lei on Monday said he noted the US’ neutral position on the Diaoyu Islands in the report and added he hopes the US will “walk the talk”.

Analysts said the report, which reflects the Obama administration’s stance over the territorial row between its ally and China, is an effort to ease the escalating tension but can hardly change the US’ Japan-tilt policy.

However, according to the report, the Diaoyu Islands fall under the scope of the 1960 US-Japan Security Treaty since 1972, which stipulates that the US is bound to protect “the territories under the administration of Japan”.

Under the treaty, the US guarantees Japan’s security in return for the right to station US troops – about 50,000 – in dozens of bases throughout the Japanese archipelago.

Washington has been ambiguous on the Diaoyu Islands issue as it supports Tokyo with the US-Japan Security Treaty, but has warned Tokyo not to break the “red line” of China or cause large-scale conflicts, said Feng Wei, an expert on Japanese studies at Fudan University in Shanghai.

Both Japan and the US have made some compromises in front of China’s all-round countermeasures over the issue, and “Washington is especially worried that the China-Japan territorial dispute could threaten US and Japan’s economy as well as the Asia-Pacific stability amid its strategic pivot to the region”, he said.

On Friday, Japanese Foreign Minister Koichiro Gemba delivered a written statement to Taiwan saying that the Japanese government hopes to resume talks on fishing in the waters in the East China Sea.

But at the same time, two US aircraft carrier strike groups have been deployed since mid-September to the Western Pacific in an apparent attempt to keep the activities of the Chinese military in check and as a response to China’s launch of its first aircraft carrier at the end of September, Japan’s Yomiuri Shimbun said on Oct 6.

Hong told a regular news conference that Chinese marine surveillance ships and fishery patrol ships will continue their official duties in waters near the Diaoyu Islands, which are under China’s jurisdiction.

Fishery authorities said on Saturday that five fishery patrol ships were in the area during the National Day holiday from Sept 30 through Sunday to continue their patrol missions. Four Chinese marine surveillance ships also arrived in the waters on Oct 2.

“Safeguarding China’s territorial sovereignty and maritime rights and interests is the Chinese military’s sacred duty,” Hong said.

He also once again urged Tokyo to correct its mistakes and return to negotiations to resolve the dispute, as well as to strictly comply with the one-China policy and properly handle relevant issues.

In sensitive situations like this, favoring one party helps little in de-escalating a potentially violent conflict, Mike Honda, a Japanese-American and US representative for California, said on his blog earlier this month.

“If this conflict becomes violent on the East China Sea, we will see shipping thwarted, more factories closed, costs of imports climb and other foreign policy decisions affected,” he said.

zhaoshengnan@chinadaily.com.cn

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China boosts economic diplomacy

By Li Xiaokun , Zhao Shengnan
October 10, 2012 – 9:07am www.chinadailyapac.com

The Ministry of Foreign Affairs on Tuesday established the Department of International Economic Affairs to serve economic diplomacy, which is increasingly important in China’s diplomatic blueprint.

The move shows that Beijing has recognized its increasing power in the economic field and is moving forward to make better use of it, Chinese experts said.

A rapidly growing number of international business disputes intertwined with political factors forced the Foreign Ministry to set up the new body to protect national economic security, they added.

Foreign Ministry spokesman Hong Lei said at a daily briefing on Tuesday that the new body will assume responsibility for international economic affairs including preparation for, and follow-up actions resulting from, Chinese leaders’ attendance at significant events such as the G20 and APEC summits, and meetings of BRICS countries.

The department is set to work with other Chinese government organs to make arrangements for the country to cooperate in economic and development fields within the United Nations and other international and regional cooperation frameworks, Hong said.

It will also focus on research work on issues such as global economic governance, international economic and financial situation and regional economic cooperation, he added.

Zhang Jun, former Chinese ambassador to the Netherlands, was appointed as the first chief of the newly established department.

Zhang, 52, returned from the Netherlands in July. He previously served as deputy director-general of the ministry’s international department from 2002 to 2004.

Economic topics closely related to politics are increasingly dominating major international forums like the G20, said Zhu Caihua, vice-dean of the School of International Economy under the China Foreign Affairs University.

That is why China needs a specialized organ to study relevant strategies, she said.

“China’s soaring economic strength enables it to provide due assistance to developing countries and the European Union hit by the debt crisis. These moves also give China more say and flexibility in foreign relations,” she said.

Hong said China is willing to strengthen financial cooperation with Europe, when commenting on the inaugural board meeting of the European Stability Mechanism in Luxembourg on Monday.

Earlier this year, Premier Wen Jiabao said China was considering how to get “more deeply involved” in resolving Europe’s debt crisis through the mechanism and European Financial Stability Facility.

Another case where the new department can play an important role is the recent spontaneous boycott by Chinese of Japanese products to protest Tokyo’s so-called purchase of Diaoyu Islands in September.

The Chinese government did not instigate these boycotts, and called for rational patriotism after Japanese-owned businesses were looted and damaged in some Chinese cities.

The new department will also help handle economic disputes with political backgrounds, which cannot be solved solely by the Ministry of Commerce, Zhu said.

On Sept 6, the EU launched an anti-dumping investigation of Chinese solar panels, involving more than $20 billion in Chinese exports, the largest so far. The move constitutes a test of the EU’s commitment to free trade.

In the run-up to the US presidential election in November, both US President Barack Obama and his Republican challenger Mitt Romney frequently blamed China for domestic economic woes.

The latest case is a report by the US House Intelligence Committee accusing two Chinese technology firms – Huawei Technologies and ZTE Corp – of posing a national security threat to the US.

A spokesman for Huawei on Monday refuted the allegation, saying “the report is little more than an exercise in China-bashing and misguided protectionism”.

Foreign Minister Yang Jiechi said at the inaugural ceremony on Tuesday that the new department will help safeguard China’s national development interests and economic security, and contribute to world economic growth.

State Councilor Dai Bingguo, who is in charge of foreign policies, has required the Foreign Ministry to “deeply understand the reality and long-term significance of intensifying economic diplomacy under the new situation”.

Still, experts warned when handling business disputes China should be prudent with economic sanctions, a double-edged sword with an adverse effect.

The Foreign Ministry has expanded its organization based on the development of China’s foreign relations, said Dong Manyuan, deputy director of the China Institute of International Studies.

The ministry set up the Department of Boundary and Ocean Affairs in 2009 and increased its news conferences from twice to five times a week in 2011.

Contact the writers at lixiaokun@chinadaily.com.cn and  zhaoshengnan at chinadaily.com.cn

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Firms help create jobs in US

By Chen Weihua (in the Mainland China section of China Daily Asia Pacific)
October 9, 2012 – 8:56am www.chinadailyapac.com

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People line up to meet the Los Angeles Lakers star Robery Horry (right) at the Haier stand at 2012 International CES, a consumer electronics trade show in Las Vegas, Nevada. The Chinese appliance maker has hired 350 people in its South Carolina plant. (Provided to China Daily)

Direct investment deals add 27,000 to payrolls in the country since 2000

Although US politicians often raise fears about Chinese investment stealing US jobs and posing threats to national security, analysts paint a very different picture.

The latest report released by New York-based Rhodium Group shows that the 600 Chinese direct investment transactions made between 2000 and 2012 support 27,000 jobs in the United States today, compared with 10,000 jobs five years ago.

The companies in the study are all US subsidiaries with Chinese majority ownership. They do not include those in which Chinese hold a minority interest – which account for $8 billion, or 40 percent of Chinese investment in the US during the 12 years – or indirect job creation related to the construction of factories or at suppliers. For example, Tianjin Pipe Corp’s new steel plant in Texas is estimated to employ up to 2,000 construction workers.

The study on the employment impact of Chinese FDI in the US also finds that more than $3.5 billion worth of greenfield investment, or investment in new facilities, since 2000 has created 8,000 US jobs.

Major job creators include auto parts maker Wanxiang, which employs 6,000 Americans, mostly in Illinois; appliance maker Haier hiring 350 in South Carolina; telecom equipment firm Huawei with 1,500 in California, Texas and New Jersey; and Sany, which runs a facility in Georgia employing more than 130 people.

Admitting that the impact on US jobs of mergers and acquisitions is less clear, the study finds that the 170 transactions in which Chinese investors have majority control of US firms were “overwhelmingly positive”.

“We see no evidence of asset-stripping behavior and find that most Chinese parent firms have maintained or added staff after acquiring companies in the US,” wrote Thilo Hanemann, research director of Rhodium Group, and Adam Lysenko, research analyst at Rhodium.

Compared with previous owners, Chinese investors were able to inject capital to maintain expenditure in times of crisis, bring better access to the fast-growing Chinese market and create synergies with existing operations in China that increased the value of US assets.

Even the few acquisitions that have resulted in job losses have not been subject to asset stripping by Chinese companies, but rather structural adjustment and reorganization of value chains to react to changes in costs or demand, according to the report.

Although the 27,000 jobs associated with Chinese investment now make up less than 1 percent of the 6 million jobs created by US-based foreign affiliates, the report emphasized that the potential is huge, given that Chinese FDI is expected to increase dramatically in the coming decade.

It projects that if the US can attract between $150 billion of Chinese global outbound investment by 2020, there will be 300,000 Americans on the payroll of Chinese US affiliates. Rhodium expects total Chinese outbound investment to hit $1 trillion by 2020.

The report, however, noted that such a result is not guaranteed. Chinese companies will only continue to invest in the US if the US manages to sustain its attractiveness to foreign investors by fixing its structural problems.

“If fear mongering and populism gain the upper hand, Chinese firms may choose more hospitable investment destinations in Europe or Asia to expand their overseas business and generate jobs there,” the report said.

The report also called for improved corporate governance and transparency on the part of Chinese investors and less Chinese government involvement in overseas investment decisions.

Both Hanemann and Dan Rosen, a partner at Rhodium Group, do not believe that US President Barack Obama’s recent executive order requiring Ralls Corp, owned by executives of China’s Sany Group, to abandon a wind farm project near a military base in Oregon and divest all related assets is politically motivated or signals a more restrictive US policy toward Chinese investment.

But Edward Alden, a senior fellow at the Council on Foreign Relations, described Obama’s decision as sending the wrong message.

Saying Obama was the first president in 22 years to issue a formal order blocking foreign investment into the US on national security grounds, Alden said the decision will unfortunately be seen as yet another signal – this time from the highest possible level – that the US does not really want Chinese investment.

“And for an economy still struggling to create jobs, that’s the wrong signal to send,” Alden said.

He said the Obama administration had handled the case “abysmally”.

“If the location of the wind farm did indeed pose real security concerns, the US government should have worked quietly with the company to help it find a reasonable way to divest,” he said. “By forcing a presidential action, it becomes a big, public slapdown to another Chinese company. That is not in the economic interest of the US that needs all the foreign investment it can get.”

Joel Backaler, director of the Frontier Strategy Group in Washington, said that Obama’s motivation may have been to help his presidential campaign. “Cracking down on China” is a spotlight issue for both Democratic and Republican parties.

“If future investment decisions by Chinese companies meet similar resistance, though, the end result of such decisions will hinder, not help the US economic recovery,” Backaler wrote in the Bloomberg Businessweek magazine.

chenweihua@chinadaily.com.cn

———————————-

Betting on a diversified economy in Macao.

By Li Tao
October 10, 2012 – 10:20am www.chinadailyapac.com

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Despite being crowned the gaming capital of the world, the Macao Special Administrative Region is striving to become a more diversified economy as its gambling business has weighed way too much on the region’s overall growth.

It is a city where almost all the local residents are more or less implicated to its one and only compellingly dominated business: gambling. As the only place that has a legalized gaming sector throughout the Chinese territory till today, the importance of buoyant gaming economy to Macao remains phenomenal.

A 20-year-old Macao resident, who does not want to identify himself, told China Daily that although he didn’t even study at a university, after working only two years as a dealer in one of the most prestigious casinos in the city, he is now able to earn almost 17,000 patacas ($2,130) a month.

This compares with the median monthly wage of 10,000 patacas reported in a Macao government employment survey for the third quarter of 2011 — a historic high record in the city, which also outstripped the median HK$13,000 ($1,677) earned by its neighboring Hong Kong people.

“To many of us who are content with the status quo, working in a casino is almost a guaranteed life-time job,” the dealer said, adding that the casinos in Macao these days generally have to put in a great deal of effort to recruit new employees as the number of applicants are so huge due to the low entrance threshold.

Other data also demonstrated the city’s extreme over reliance on gambling revenue these days. By the end of 2011, over 50,000 local residents of Macao’s 345,000 working population were working in the gaming and related sector, such as hotel and restaurants inside the casinos.

At the same time, the booming gaming industry accounts for over 60 percent of the city’s gross domestic product (GDP) today, and which even pays nearly 90 percent of the total taxes that the local government collects every year, according to news reports.

Concerns over the monotonous money-making pattern never stop reverberating in Macao since the city’s casino operators have seen explosive gains from the visitors particularly from the mainland. Some skeptics even pictured a bleak outlook for Macao, claiming that the whole economy will fall out once dice players no longer favor the city any more.

Doubts are also supported by sharp contracting gambling revenue results starting this year, after the city’s casino operators reported poorer results, a direct contrast to the enormous profits growth of some 40 percent over the past few years.

Gaming revenue in the world’s biggest gambling hub this July rose only a tepid 1.5 percent to 24.6 billion patacas compared with the 24.2 billion patacas a year earlier, according to Macao’s Gaming Inspection and Coordination Bureau, representing the slowest pace since June 2009 when the city was impacted by the previous financial tsunami.

Global rating agency Fitch in July revised its Macao gaming revenue growth forecast to 10 to 12 percent for this year from the previous 15 percent. It cited reasons including a “more cautious view with respect to the near-term impact of the slowdown on the mainland”.

“Buying Macao’s casino stocks is like gambling these days,” said Alvin Chung, a Hong Kong-based associate director of Prudential Brokerage. “Growth of new arrivals to Macao have subsided notably, but casino operators have not even planned to halt their expansion plans, giving rise to greater opportunities for over capacity within the market, “ Chung added.

Casino operators, apparently, view it in a different way. Las Vegas Sands Corp, the world’s largest gambling group, launched its Sands Cotai Central integrated resort in Macao’s Cotai Strip this April. The project’s construction was once suspended in 2008 due to financial stress, according to the company.

US billionaire Sheldon Adelson, chairman of the group, is still convinced that its Chinese arm Sands China Ltd has yet to fully benefit from the wealth spurs among the middle-class on the mainland.

“We wouldn’t be expanding if there is no future here,” Adelson said in Macao on September 20 during the launch ceremony of its third hotel project within the resort.

“(Currently) about 13 percent of the US population visit Las Vegas each year. If it is the same story for the Chinese, the numbers will reach nearly 200 million here.”

Adelson’s bullish plan also accompanies the fact that unlike other traditional casinos which primarily feature gambling, the newly launched integrated resorts in Macao today, including Sands Cotai Central, are basically giant complexes congregated with shopping malls, hotels, restaurants, as well as some gaming places — which are not even conspicuous in the resort.

Ricardo Siu, an associate professor of business economics at the University of Macau, told China Daily that the casino operators are also determined to seek ways to diversify their business combinations in Macao as they’ve also realized that solely having gaming attractions for the visitors alone are unlikely to be sustainable if there are no other profitable channels to explore.

The move is also in line with the Central Government’s blueprint, which dates back to the year 2006, when a goal to diversify Macao’s gambling-dependent economy was set in its 11th Five-Year Plan. In the latest 12th Five-Year Plan starting 2011, the Central Government further positioned the city as a global center of tourism and leisure.

“It is not even an option. It is a must-do,” said Siu. “Since the Macao government liberalized the gambling industry in 2002, concerns over the sector has never ceased as the city relies too much on the gaming sector. Meanwhile, people also worry that the single pillared economy will be doomed once favorable policies from the Central Government fade out.”

The crux in diversifying the Macao’s economy is to boost growth of non-gaming revenues, Siu said that this was the philosophy, but in reality, it is really something easy to say but hard to achieve, particularly over the short period.

Even integrated resorts like Sands Cotai Central, which enlists over 200 shops, high-end restaurants, theaters as well as three branded hotels that provide nearly 6,000 rooms, is still unable to highlight the importance of non-gaming revenues at the moment, according to Edward Tracy, chief executive of Sands China

Without disclosing any solid data, Tracy said the non-gaming gains only take up about 12 percent of the company’s total revenue in the resort, remaining a relatively small part due to the extremely huge income from gambling.

Gambling revenue reached 268 billion patacas in Macao last year, almost six times the Las Vegas Strip’s $6.07 billion, according to data from gambling authorities of the two sides.

Estimating that Macao’s non-gaming revenue will continue to play a minor part even in the next decade, Siu said he supported the idea of stimulating developments in other areas of the economy that have failed to keep up with the gaming sector.

“Macao should be transformed from a casino gaming place to a more family and business travel destination, meaning the city should not be concerned with filling up the casinos with visitors, but also a place where everyone could come to and relax with their families over the weekends,” said Siu.

According to government reports, 16.16 million visitors from Chinese mainland visited Macao in 2011, accounting for 58 percent of the city’s total visitor arrivals.

Davis Fong, director of the Institute for the Study of Commercial Gaming at the University of Macau believes people shouldn’t make such a fuss on Macao’s over reliance on gaming as each city needs a clear identification of its own positioning, and for Macao which is labeled as a gaming capital of the world has proven to be a success.

It is an era in which metropolitan areas compete with one another, rather than just single economies. While neighboring Hong Kong is positioned as a global financial center and the Pearl River Delta (PRD) is famous for its manufacturing bases, Macao which is themed to attract tourists all over the world, has also fully played out its own advantages, according to Fong.

“On the other hand, the inflow of people to any part of the metropolitan area is tipped to benefit the overall economy particularly after transportation facilities connecting the region are fully put into use,” Fong said.

After a bridge being built across the Pearl River estuary to link Hong Kong, Zhuhai and Macao is completed in 2016, transportation convenience between the three cities will become greatly enhanced.

“It means the inflow of visitors to Macao will be further lifted, with more travelers from Hong Kong and the mainland who may initially only prepare to spend some time in Macao,” added Fong.

litao@chinadailyhk.com

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and in the Taiwan section of the paper:

A senior member of Taiwan’s opposition party Frank Hsieh left Beijing on Monday after concluding a high-profile visit to the mainland, which experts expect to prompt more non-…


The mainland and Taiwan signed two agreements on Thursday — on investment protection and promotion, and customs cooperation.

——————————————
and under ASIAN LEADERS:

An Australian Man of Energy Who Heads the  Australia-China Business Council.

By Karl Wilson
September 28, 2012 –  www.chinadailyapac.com

As a young boy growing up in Western Australia, a job in the resources sector was as far away from Frank Tudor’s mind as possible.

“I thought I was destined for life in the academic world, probably teaching science or mathematics,” says the CEO and managing director of Western Australia’s regional and remote electricity provider Horizon Power.

Tudor, who is also national president of the Australia China Business Council, joined the West Australian government-owned Horizon six years ago after a successful career with Woodside, Australia’s biggest oil and gas producer.

Working for BP and Woodside saw the family moving quite a bit in his early working life.

Tudor says he was interested in renewable energy and the impact it was going to have on the industry within Western Australia.

The resources-rich state, especially in iron ore that is feeding China’s enormous economic growth, occupies roughly a third of the entire continent of Australia and is home to less than two million people.

“Horizon was a good starting point; it operated in some interesting parts of the state across the complete supply chain through generation to retail.

“There were a lot of natural energy sources, such as wind and solar, and there was an opportunity to see what difference that could make (to) the state’s energy.”

Tudor went in as the general manager at Horizon. Then he was appointed CEO in April 2011. He was given the mandate to shape the strategy and work closely with the board.

“I also wanted to stay with my family in Western Australia,” he adds.

Tudor says family is important to him. “I like to keep a good balance between the two,” he says.

Speaking from his home in Perth, Tudor says his time with BP and Woodside opened many doors in China and enabled him to build relationships that are still in place.

“It never occurred to me when I was studying mechanical engineering at Curtin (University) that I would end up working in the oil and gas industry,” he says.

“It was a friend of the family (who) asked me if I would like some vocational work at BP’s Kwinana oil refinery just south of Perth. I said yes and towards the end of my studies, a full-time position came up at the refinery and I took it.

“It wasn’t planned …”

Kwinana is the largest refinery in Australia with a capacity of 137,000 barrels of crude oil a day. It is the only refinery in Western Australia.

“Within a couple of years I was in London with BP where I stayed for 10 years, then to Perth, then to Melbourne and back to Perth,” Tudor says. “All up I was with BP for just over 20 years before moving to Woodside.”

He says his experience with BP helped to widen his horizons and gave him an understanding of the emerging economic power that China has become.

The early 1990s saw him in Papua New Guinea for BP, developing gas interests for the growing Chinese energy market.

“The global financial crisis, however, hit much of that on the head,” he says. “But China was still expanding, still growing.”

In early 2000 he moved to Woodside, which had already developed strong ties with China through its massive North West Shelf oil and gas project off the northern coast of Western Australia.

Vast quantities of natural gas and condensate were discovered beneath the sea bed on the North West continental shelf in the 1970s.

The discovery marked the birth of Australia’s largest oil and gas resource development.

Since then more than A$27 billion ($28 billion) has been invested in facilities which today include offshore production platforms and sub-sea infrastructure, onshore processing and storage facilities at the Karratha gas plant.

They also include loading facilities, jetties, associated infrastructure and liquefied natural gas (LNG) ships.

Between 2003 and 2005 Tudor headed up Woodside’s business development operations in China and “up the foundation for the PetroChina gas deal on Browse which has since lapsed”, he says.

It was a 2007 agreement between PetroChina and Woodside for the potential sale of two million to three million tons of LNG per year from the Browse LNG development facility off the north-west coast of Western Australia.

“That was about the time I started to get involved with the Australia China Business Council,” he says. “For me it seemed like a pretty good fit.

“On the one hand you had China with an insatiable appetite for resources to drive its industrial base, and on the other, Australia, rich in the resources China wanted.”

Tudor sees the role of the council as a bridge builder between Australia and China and a hub for the “many ideas driving debate and highlighting opportunities associated with the Sino-Australian relationship”.

Some of the current debate in Australia over China’s investments in it, he says, is “frankly, ill informed”.

“We need to change those perceptions,” he says. “Australians need to understand just how important China is, not only for the country but to individual households.”

As a country, Australia is unique among industrialized nations as a net exporter of commodities and a net importer of manufactured goods.

“We have valuable commodities and increasingly manufactured goods and services that China needs to fuel its massive industrialization and urbanization,” he says. “At the same time we import manufactured goods and to a lesser extent services that China can supply at much lower prices than we could produce them.

“Australian households have a strong appetite for variety and value in consumer goods which China supplies, such as clothing, computers, telecoms equipment, toys, games, sporting goods, furniture and chemicals.”

He says that in 2010-11 the average value of trade with China per household in Australia was worth A$13,470 – a 93 percent increase since 2006-2007.

“These are the sort of messages we need to get across … not the ill-informed political rhetoric of some,” he says. “Education is the key.”

And Tudor knows what he is talking about when it comes to education. He has degrees from Perth’s Curtin University, London School of Economics, and the Australian Graduate School of Management at the University of New South Wales.

In 2008 he completed an eight-week advanced management program at Harvard Business School.

“I remember meeting a man when I first started at BP who inspired me a great deal,” he recalls.

“His name was Marcel Dell and he had emigrated from Europe. He came here with nothing but a desire to do well. He went to night school and later went on to university and a senior position with BP at Kwinana.

“I also think he may have been instrumental in my going to London with BP. He showed me what can be achieved if you work hard for it and the value of education.

“I see this all the time in China.”

Tudor says Australia lacks a coherent strategy towards China and he hopes that the government’s long awaited white paper on Australia in the Asian century will be a good start.

“Industry, academia, states and the federal government need to work much more closely to create such a strategy, and become much more tactful in the way we engage.

“Despite what we read in some sections of the media in Australia, China is playing an active role in Australia, moving from simple off-taking to investment in onshore infrastructure and greenfield developments right across the Australian economy.”

Tudor says with China’s middle class growing there are numerous opportunities for Australian companies to invest.

“You are starting to see that in education, legal and financial services. The opportunities are there, we just need to go out and do it,” he says. “Getting in the door is half the battle.”

Bio
FRANK TUDOR
CEO and managing director, Horizon Power

CAREER MILESTONES

2006-present: Joins Horizon Power as general manager and becomes its CEO in 2011

2009-present: Chairman of the board and national president of the Australia China Business Council

1980-2006: Holds a number of senior positions at BP and Woodside

EDUCATION

First class degrees in engineering, economics and business administration

QUICK TAKES

Role model:

I guess if I were to choose someone it would be a guy I got to know at the Kwinana refinery by the name of Marcel Dell. Marcel was an emigrant from Europe who started off as a boiler maker, put himself through night school, then went on to university where he got first class honours in mechanical engineering.

He went on to build an impressive career at BP. Yes, if I were to choose someone it would be him. He sort of epitomized what Australia is all about.

Walking the tightrope between work and family:

Switched from alcohol to coffee. Jokes aside, family is very important to me. I think it is important to understand that. I try not to let work interfere in that balance.

How do you relax?

I like to windsurf. There is plenty of water although we do have some large fish … fish with very sharp teeth (sharks).

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