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The Group’s President Hong Shuikun Invested Shanghai Free Trade Zone

集团总部     2013-10-25         

On Oct. 21-22, the Group’s President Hong Shuikun, together with deputy president Li Yousheng, CMST Development Co. Ltd (CMST) Chairman Han Tielin, China Logistics Co. Ltd. general manager Liang Weihua made an investigation travel to Shanghai Free Trade Test Zone. They visited Waigaoqiao Bonded Area, Waigaoqiao Logistic Park, and Yangshan Bonded Port and had an in-depth conversation with deputy director of Free Trade Zone Management Committee Wang Xinling and relevant leads of the committee. The visiting group also made an investigation trip of CMST port-surrounding logistics base in Shanghai and Shanghai CMST Logistics Co. Ltd. where they listened to CMST Shanghai Business Department’s work report.

 

Pic 1. President Hong Shuikun Met with Deputy Director Wang Xinling

Deputy director Wang Xinling made a detailed introduction to the background, policy orientation, targeted tasks and registration and development of enterprises in the Free Trade Zone. He said Shanghai Free Trade Zone is a dynamic integration of long-term practices and national supreme planning. Ever since the establishment of Waigaoqiao Bonded Area, Shanghai has 23 years’ experience in probing custom bonds and free trade zone. The Free Trade Zone is divided into 4 parts, playing a significant role in Shanghai’s four-pillared economic construction, i.e. international economy, finance, shipping and trade. The Free Trade Zone intensifies free trade and is entrusted with tasks of investment management system transformation, intensifying service industry opening up as well as financial innovation that are given by central government. These tasks also represent the direction that the reform is heading for in the future. He said that the core of the Free Trade Zone tasks is the innovation of a system model that it can be repeated through 2 or 3 years’ experiment. Experience summery and promotion comes not only from the government, but also from creativity and spread of enterprises registered in the Free Trade Zone. China Chengtong’s business and strategic direction share many similarities with the industrial forms and development orientations of the Free Trade Zone and China Chongtong is welcome to be actively engaged in the construction and development of the Free Trade Zone.

Hong stated that the analysis and introduction made by deputy director Wang Xinling is very inspiring. As a national strategy, the Free Trade Zone also means an important opportunity for enterprises. We are full of hope for it. To upgrade China’s economy, we are faced with industrial transformation and a series of significant reforms. Free Trade Zone plays the role of a “testing field”. China Chengtong also meet many challenges and we would like to join efforts with the Free Trade Zone, looking for opportunities in practices and accumulating experience to build up our own capabilities of international competitiveness.

Hong also made an investigation of the bonded warehouse of Shanghai Zhongchu Port-surrounding Logistics Co. Ltd. located in Yangshan bonded port area and Fengxian logistics base in Port-surrounding industry park. He met with main persons in charge of China Stock branches and listened to Shanghai Business Department general manager Wang Haibin’s analysis of the Free Trade Zone policy orientation, as well as the idea and suggestions how the enterprises in Shanghai catch development opportunities.

Pic 2. President Hong Visited Waigaoqiao Logistics Park

President Hong pointed out that the following points should be done to guarantee the long-term development:

First, we need to have grand visions and consider opportunities in the long run. The establishment of Free Trade Zone is a new probe for the China’s economic upgrade and reform. The domestic enterprises are faced with critical challenges such as imbalance of production capability and demands, together with serious pollutions. China Chengtong’s main businesses, i.e. the paper industry, trade, and logistics are also challenged by crisis. The paper industry is highly polluting and over productive. The trade management is unsatisfactory. The traditional logistics is hard to survive. We need to surpass the immediate interests and actively plan and capture the development opportunities of the Free Trade Zone with a grand view, lest losing good opportunities.

Second, we need to transform and upgrade to develop along with emerging businesses. Enterprises should have an idea of what to do and what not to do after judging the main trend from a long-term strategic perspective. If the traditional business is narrowing, we need to probe how new modes can adapt. The port-surrounding park has many enterprises of environmental and high-end equipment manufacturing business, which are closely related to modern logistic services. The upgrade of logistics should see clearly its own advantages and develop together with the promisingly emerging businesses that are supported by the state, instead of being degraded with the backward industries. We should be good at finding modern logistics demands based on which we shall innovate our commercial activities, process and framework. And this is the main direction of the upgrade and transformation.

Pic 3. President Hong Made a Speech on the Cadre Meeting

Third, we need to use our soft power to upgrade our competitiveness. China Stock leads to set foot on the Free Trade Zone, which is a great opportunity for a new development. The focus of our work is on system innovation. We should liberate our thoughts, do more and talk less, and get over old system barriers. We should form staff cultivation mechanism and employ those that are familiar with overseas enterprise operation and international trade rules, those who are good at communication with overseas customs. We should find and start to employ high-end logistics people. We will set up comparatively independent work environment, probe effective evaluation and motivation mechanism, and create innovative corporate culture to form a demonstration of system innovation.

Reform is the fundament for enterprise development and there is no way out without reform. We should be gallant to admit the restraint of old enterprise system in front of new businesses and new commercial activities, and strengthen soft power construction of system, culture, persons and process.

Fourth, we should innovate and summarize experience of the new business mode to repeat. The Group’s chairman Ma Zhengwu commented that as a national strategy, Shanghai Free Trade Zone is completely new in either the degree of opening up or operation mode. This is a new opportunity that the Group must grasp. He hoped that China Stock, through its practices, can form an entirely new business mode and management system that can be repeated by enterprises of the whole Group that may enter the Free Trade Zone in the future. He expressed his wish that China Stock could lead the transformation and upgrade of the Group, and the Group will also provide full policy support.

 

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