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                               51% of China CEOs are very confident of their revenue growth
                               prospects in 2012, compared with 40% globally




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                                                 1 http://news.bandao.cn/news_
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                                                  Figure 1: More than half of China CEOs believe the global economy will decline in 2012 (%)
                                                  Q: Do you believe the global economy will improve, stay the same, or decline over the next 12
                                                  months?


                                                                                    4
                                                                                                     15                Global

                                                                                     4
                                                                                                     27




                                                                                 China &
                                                        48        56             Hong Kong


                                                                                                             14   34
                                                                                                                                Improve
                                                                                                                                Stay the same

                                                                                                                                Decline

                                                                                                                                Don’t know



                                                  Base: All respondents (1,258); China and Hong Kong (160)
                                                  Source: PwC 15th Annual Global CEO Survey 2012




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                                                     2 IMF World Economic Outlook Update, January 2012.
                                                     3 Fifth session of the Eleventh National People’s
                                                     Congress, 5 March 2012.



Figure 2: Confidence has fallen, but a majority of CEOs are still very confident in China (%)
Q: How confident are you about your company’s prospects for revenue growth over the next 12 months? Yearly comparison of CEOs who are ‘very
confident’.

75                                                                                                               72
                                                                                            68
                                   73

        60

                                                                                                                                          51
                                   50
50     52
                                                                                                                  48

                                                                                                                                          40

                                                               29
                                                                                             31
25

                                                               21                                            China and Hong Kong
                                                                                                             Global



0
      2007                       2008                        2009                         2010                  2011                    2012


Base: All respondents, China and Hong Kong (2012 =1,258, 160; 2011=1,201, 46; 2010=1,198, 60;
2009=1,124, 63; 2008=1,150, 52; 2007=1,084, 47)
Source: PwC 15th Annual Global CEO Survey 2012




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   Figure 3: Three-quarters of businesses in China and Hong Kong expect growth in their South-East Asian and East Asian operations
   Q: In the next 12 months do you expect your key operations in these regions to decline, stay the same or grow? Percentage of CEOs who have
   key operations in the region and who responded ‘grow’.

                                                                       Region of operations

    Company
    headquarters         Western       North         Middle     Latin                                       South-East
                         Europe        America       East       America      CEE     Australasia South Asia Asia       East Asia           Africa
      China and
      Hong Kong           43%           51%          49%         66%        57%        57%        67%          75%           76%           47%


      Global              36%           55%          67%         77%        60%        57%        80%          83%           77%           75%

   Base: All respondents (1,258); China and Hong Kong (160)
   Source: PwC 15th Annual Global CEO Survey 2012




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                                                         -.:*@:$&%C*218B:@-*-81C:*#18-%:8*A&8*-.:*     4 PwC, ‘Profitable growth for the next 4 billion’
                                                                                                       (forthcoming 2012).
                                                         D7"*


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                                                                                                              5 Peter Marsh, ‘China noses ahead as top goods
                                                      1*'1L&8*A&$0@*&%*#8>91-:I@:$-&8*                        producer’, Financial Times (13 March 2011).

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                                                      &9:8@:1@"*


 Figure 4: The importance of new products and services has risen sharply for CEOs in China and Hong Kong (%)
 Q: Which one of these potential opportunities for business growth do you see as the main opportunity to grow your business in the next
 12 months? Responses from mainland China and Hong Kong

 40




 30
                                                     New geographic markets
                                                     New product or sevice development
                                                     Increased share in existing markets
                                                     Mergers and acquisitions
 20




 10




   0
       2007                       2008                        2009                       2010                        2011                       2012
 Base: All respondents, China and Hong Kong (2012 =1,258, 160; 2011=1,201, 46; 2010=1,198, 60; 2009=1,124,
 63; 2008=1,150, 52; 2007=1,084, 47). Responses of ‘new joint venture and/or strategic alliances’ excluded.
 Source: PwC 15th Annual Global CEO Survey 2012


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                                                         Figure 5: The majority of CEOs in China and Hong Kong see hiring in their industry
  6 ‘Haier: A Chinese company that innovates’,           becoming more difficult (%)
  Forbes (17 June 2010), http://www.forbes.com/sites/
  china/2010/06/17/haier-a-chinese-company-that-         Q: In general, has it become more difficult or less difficult to hire workers in your industry, or
  innovates/                                             is it unchanged?


                                                                                               1
                                                                                   12                                        Global

                                                                                               1
                                                                                         9




                                                                                         China &
                                                                44        31             Hong Kong                  59    43




                                                                                                                                       More difficult
                                                                                                                                       Unchanged

                                                                                                                                       Less difficult

                                                                                                                                       Don’t know



                                                         Base: All respondents (1,258); China and Hong Kong (160)
                                                         Source: PwC 15th Annual Global CEO Survey 2012




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Figure 6: Growing customer bases is far from the only objective of CEOs in their key overseas markets (%)
Q: Which of the following objectives do you hope to achieve in the next 12 months? (The top 10 countries mentioned by CEOs in ‘Which
countries, excluding the one in which you are based, do you consider most important for your overall growth prospects over the next 12
months?’)

China                              USA                                Brazil                             India                           Germany



                55                                                                    61                                 61
                                                   46                                                                                                 32
                           46                                                                      55                               54
       27                                 26                  30             22                                  31                            24             32
                79                                 71                                 83                                 79                           72

      30                                                     23            33                                 38                              10
                           14             17                                                   11                                 12                         16
                                                        19
                34                                                                    31                                 31                           14




Russia                             UK                                 France                             Japan                           Australia



                53                                 47                                                                                                 49
                                                                                      42                                44

       19                   49                                 36           15                                   29                34                          36
                                          22                                                    38                                             19
                87                                 78                                 76                                 81                           85

      31                                                                                       9                                               21
                                          12                  12             11                                  10               10
                          16                                                                                                                                  17
                26                                  5                                 6                                  21                           19



        Build R&D/innovation capacity or acquire intellectual property                     Build internal service delivery capacity
        Build manufacturing capacity                                                       Access local talent base
        Access raw materials or components                                                 Grow your customer base
        Access local source of capital

Base: China (383); USA (275); Brazil (188); India (176); Germany (152); Russia (101); UK (81); France (66); Japan (62); Australia (53)
Source: PwC 15th Annual Global CEO Survey 2012




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             JK"2'3,)0A'#*'E"%$.#$.'*,'N1#EO07'                                                          $>8$0'9:%-*@J>22*@.&8-1B:@"*S.>2:*214&08*
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             *E",,0',$E2FM                                                                               &-.:8*'18J:-@F*).>%1K@*40@>%:@@:@*'1;*
              ]1>':*/0B0@-&*l&4:2*C:*/;121F*).1>8'1%*1%C*)56*&A*                                         %::C*-&*:%@08:*-.1-*-.:>8*2&%BI-:8'*
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   Figure 7: In China and Hong Kong, talent constraints are not only rising rapidly, but also constraining innovation (%)
   Q: Have talent constraints impacted your company’s growth and profitability over the past 12 months in the following ways? Percentage of
   respondents who said “Yes”.


                            We weren’t able to innovate effectively


          Our talent related expenses rose more than expected


                 We were unable to pursue a market opportunity

    We couldn’t achieve growth forecasts in overseas markets


           We couldn’t achieve growth forecasts in the country
                                         where we are based
                   Our production and/or service delivery quality
                                                  standards fell                                                    China & Hong Kong

               We cancelled or delayed a key strategic initiative                                                   Global


                                                                            0      10       20          30     40       50       60
   Base: All respondents (1,258); China and Hong Kong (160)
   Source: PwC 15th Annual Global CEO Survey 2012




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                                             the Core of Driving Economic Growth’, World
L0@-*%&-*:%&0B.*-&*B&*-&*@$.&&2*&%$:"_*      Economic Forum (2012).




                                                    Figure 8: High-potential middle managers are the biggest concern of CEOs worldwide (%)
                                                    Q: With which of the following groups do you currently face the greatest challenges with regard
                                                    to recruitment and retention?

       JK"2'E2$()%0'E"%002$.2'
       +%E#$.'1*'#*'",3'(,'                          High-potential middle managers
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                                                            Senior management team

                                                                                                                               China & Hong Kong
                                                                   Overseas unit heads                                         Global


                                                                                             0                  20                40                  60

                                                    Base: All respondents (1,258); China and Hong Kong (160)
                                                    Source: PwC 15th Annual Global CEO Survey 2012




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                                                8 Conrad Schmidt, ‘The Battle for China’s Talent’,   9 Hong Kong is one of two Special Administrative
                                                Harvard Business Review (2011).                      Regions (SARs) of the People’s Republic of China.
                                                                                                     10 This report includes views from three China
                                                                                                     CEOs: Cheung Yan, Chairlady of Nine Dragons Paper
                                                                                                     (Holding) Limited; Sun Mingbo, President, Executive
                                                                                                     Director and Chairman of the Strategy and
                                                                                                     Investment Committee of Tsingtao Brewery Co Ltd.;
                                                                                                     and Yang Yuanqing, Chairman and CEO of Lenovo.
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  • 3. @,)23,)A /@*-.:*B2&412*:$&%&';*C:12@*!>-.*-.:* -.:>8*#:&#2:*1%C*@:$08>%B*-.:*8>B.-*-12:%-* 0%$:8-1>%-;*&A*1*D7*8:$&9:8;*1%C*1* -&*@-8:%B-.:%*-.:>8*&8B1%>@1->&%K@* #&-:%->122;*!&8@:%>%B*508&E&%:*C:4-* $1#14>2>->:@" $8>@>@F*).>%1*)56@*8:'1>%*8:21->9:2;* &#->'>@->$*14&0-*C:2>9:8>%B*B8&!-.*&9:8* S>-.*'1L&8*C:9:2&#:C*:$&%&'>:@*>%*1* -.:*%:G-*+<*'&%-.@" A&$0@>%B*-.:>8*8:@&08$:@*-&*B8&!*2&$12* H.:*@->22I#8&'>@>%B*:$&%&'>$*&0-2&&J* 1%C*#1%I/@>1%*&#:81->&%@"**(18-*&A*-.>@* 1%C*@-8&%B*#&-:%->12*A&8*>%-:8%122;* :AA&8-*!>22*4:*-&*>%9:@-*>%*>%%&91->&%*1%C* B:%:81-:C*B8&!-.*>%*-.:*!&82CK@*A1@-:@-I TUV*-&*C8>9:*B8&!-.*1%C*>%$8:1@:* B8&!>%B*'1L&8*:$&%&';*#8&9>C:@* #8&C0$->9>-;"*P0@>%:@@*2:1C:8@*18:*12@&* ).>%:@:*40@>%:@@*2:1C:8@*!>-.*@&':* #21$>%B*1%*:'#.1@>@*&%*#8&C0$-*1%C* 8:2>:A*1%C*1@@081%$:" @:89>$:*C>AA:8:%->1->&%*>%*&8C:8*-&* '1>%-1>%*-.:>8*8:2:91%$:*-&*$&%@0':8@*>%* 3&9:8%':%-*#&2>$;*M*&0-2>%:C*>%*).>%1K@* J:;*'18J:-@"* +<-.*N>9:IO:18*(21%*M*>@*12@&*@0##&8->%B* -.:*40@>%:@@*1B:%C1*1@*).>%1*-81%@>->&%@* H.:@:*9>:!@*1%C*'&8:*18:*#8:@:%-:C*>%* A8&'*1*#8&C0$->&%I:G#&8-*'18J:-*-&*1* -.>@*).>%1IA&$0@:C*1%12;@>@*&A*(!)K@* C&':@->$I$&%@0'#->&%*C8>9:%*:$&%&';" /%%012*32&412*)56*7089:;*M*%&!*>%*>-@* +,-.*;:18"**P;*$1%91@@>%B*-.:*$.122:%B:@* P0-*>%*-.:*$088:%-*:%9>8&%':%-F*%&-.>%B* 1%C*$&%$:8%@F*B&12@*1%C*1'4>->&%@*&A* >@*$:8-1>%*M*%&-*:9:%*A&8*).>%1"*7-8&%B* 40@>%:@@*2:1C:8@*>%*).>%1F*!:*.&#:*-&* :G#:$-1->&%@*18:*4:>%B*#21$:C*&%*).>%1* :%8>$.*-.:*C>12&B0:*4:-!::%*40@>%:@@* 4;*)56@*>%*&-.:8*'18J:-@*@::J>%B*B8&!-.* 2:1C:8@*1%C*-.:>8*J:;*@-1J:.&2C:8@" >%*1*@20BB>@.*B2&412*:%9>8&%':%-"** P0@>%:@@*2:1C:8@*A8&'*18&0%C*-.:*!&82C* W*!1%-*-&*-.1%J*-.:*+X=*-&#*'1%1B:':%-* M*A8&'*-.:*D7*1%C*508&#:*-&*/0@-812>1* :G:$0->9:@*>%*).>%1*1%C*Y&%B*Z&%B*!.&* 1%C*/75/Q*M*@::*).>%1*1@*-.:*'18J:-* -&&J*->':*-&*@.18:*-.:>8*9>:!@*!>-.*0@"** -.1-*&AA:8@*-.:'*-.:*B8:1-:@-* &##&8-0%>-;"**)&'#:->->&%*!>22*>%-:%@>A;* 1@*B2&412*$&'#1%>:@*2&&J*-&*A08-.:8* '1#*&0-*;&08*&8B1%>@1->&%K@*#21%@*1%C* >%$8:1@:*-.:>8*#8:@:%$:*>%*-.:*!&82CK@* B&12@*A&8*-.:*A0-08:" '&@-*#&#02&0@*%1->&%"*R&8:*-.1%*:9:8F* ).>%:@:*$&'#1%>:@*!>22*%::C*-&*4:*1B>2:* 1%C*1C1#->9:*-&*-.:*C;%1'>$*'18J:-#21$:* -&*@0@-1>%*B8&!-." H&*'::-*-.>@*$.122:%B:F*).>%1*)56@*18:* 1@@:'42>%B*40>2C>%B*42&$J@*-.1-*!>22* @0##&8-*-.:>8*2&%BI-:8'*$&'#:->->9:%:@@"* H.:;K8:*-:22>%B*0@F*A&8*:G1'#2:F*-.1-*-.:;* ).>%1*R18J:-@*[:1C:8F*(!) 18:*:9:%*'&8:*A&$0@:C*&%*C:9:2&#>%B* ,*R18$.*<=+< ).>%1?*-81%@A&8'>%B*9120:*A&8*B8&!-.* 3*
  • 4. 8;: 51% of China CEOs are very confident of their revenue growth prospects in 2012, compared with 40% globally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http://news.bandao.cn/news_ html/201202/20120210/news_20120210_1798817. C:$2>%:*>%*<=+<F*>%$20C>%B*,X`*&A*)56@* shtml?i|146707:2 >%*'1>%21%C*).>%1*1%C*Y&%B*Z&%B** a@::*N>B08:*+b"* Figure 1: More than half of China CEOs believe the global economy will decline in 2012 (%) Q: Do you believe the global economy will improve, stay the same, or decline over the next 12 months? 4 15 Global 4 27 China & 48 56 Hong Kong 14 34 Improve Stay the same Decline Don’t know Base: All respondents (1,258); China and Hong Kong (160) Source: PwC 15th Annual Global CEO Survey 2012 4 (!)*+,-.*/%%012*32&412*)56*7089:;*<=+<*
  • 5. H.>@*#:@@>'>@'*.1@*C>@80#-:C*-.:* H.:*#8&@#:$-*&A*@2&!:8*B8&!-.*.1@* #:8$:%-1B:*&A*)56@*!.&*18:*^9:8;* f<`*&A*).>%1*)56@*!:8:*^9:8;* #8&@#:$-@*>%*-.:*$&'>%B*+<*'&%-.@*A:22* ).>%1*)56@*18:*@->22*&#->'>@->$*14&0-* A8&'*cd`*21@-*;:18*-&*c=`*-.>@*;:18"*H.>@* :$.&:@*1*A122*>%*-.:*B2&412*B8&!-.*81-:* B:%:81->%B*B8&!-."*3&9:8%':%-* A8&'*e"d`*>%*<=++*-&*1*A&8:$1@-*e"e`*>%* #8&B81'':@*-&*:%$&081B:*C&':@->$* <=+<"<* $&%@0'#->&%*1%C*).>%1K@*@-8&%B*-81C:* ).>%1K@*B8&!-.*A&8*<=+<*>@*A&8:$1@-*1-* f",`e*M*'&8:*-.1%*C&042:*-.:*B2&412* 81-:"*H.>@*81-:*>@*@->22*2&!:8*-.1%*-.:* B8&!-.*1$.>:9:C*C08>%B*-.:*!&8@-*&A*-.:* 2 IMF World Economic Outlook Update, January 2012. 3 Fifth session of the Eleventh National People’s Congress, 5 March 2012. Figure 2: Confidence has fallen, but a majority of CEOs are still very confident in China (%) Q: How confident are you about your company’s prospects for revenue growth over the next 12 months? Yearly comparison of CEOs who are ‘very confident’. 75 72 68 73 60 51 50 50 52 48 40 29 31 25 21 China and Hong Kong Global 0 2007 2008 2009 2010 2011 2012 Base: All respondents, China and Hong Kong (2012 =1,258, 160; 2011=1,201, 46; 2010=1,198, 60; 2009=1,124, 63; 2008=1,150, 52; 2007=1,084, 47) Source: PwC 15th Annual Global CEO Survey 2012 ).>%1?*-81%@A&8'>%B*9120:*A&8*B8&!-.* 5*
  • 6. /@*!>-.*-.:>8*$&0%-:8#18-@*&9:8@:1@F* )56@*>%*).>%1*$&%@>C:8*0%$:8-1>%*&8* 9&21->2:*:$&%&'>$*B8&!-.*1@*-.:*4>BB:@-* -.8:1-*-&*-.:>8*B8&!-."*H.:;*12@&*#21$:*1* 218B:8*!:>B.-*-.1%*-.:>8*$&0%-:8#18-@*&%* #8&-:$->&%>@'*1@*-.8:1-@*-&*B8&!-.F*!>-.* 2:@@*:'#.1@>@*&%*&9:8I8:B021->&%F* !"#$%&'()*+,-"(#$(.+$-/0- 7.&02C*!:*$&%@>C:8*f",`*B8&!-.*1%* 0%:G#:$-:C*@2&!C&!%*&8*1*#&!:8A02* :%B>%:*&A*B2&412*B8&!-.g*W-K@*1*4>-*&A* 4&-.F*&A*$&08@:"*H.1-*B8&!-.*81-:*>@* :G#:8>:%$:C*>%*<=+=*1%C*!&02C*4:* -.:*@2&!:@-*:G#1%@>&%*@>%$:*).>%1K@* 1$$:@@>&%*-&*-.:*S&82C*H81C:* 68B1%>@1->&%*>%*V:$:'4:8*<==+"* P0-*>-*>@*12@&*'&8:*-.1%*C&042:*-.:* B2&412*B8&!-.*81-:F*'1J>%B*).>%1* -.:*A1@-:@-*B8&!>%B*'1L&8*:$&%&';* >%*-.:*!&82C"* D",10A'32'E,$*#A2)'?F8:' .),3("'%$'1$2GH2E(2A' 6%:*!1;*&A*9>:!>%B*>-*>@*-&*2&&J* *0,3A,3$',)'%'H,32)+10' 1-*).>%1K@*+<-.*N>9:IO:18*(21%F*A&8* <=++I+,F*!.>$.*$122@*A&8*f`*1%%012* 2$.#$2',+'.0,6%0'.),3("I B8&!-.*-.8&0B.*-&*<=+,"*7::%*>%* -.1-*2>B.-F*f",`*>@*8:21->9:2;*.:12-.;F* #18->$02182;*1B1>%@-*-.:*.:1C!>%C@* &A*1*B2&412*:$&%&'>$*@2&!C&!%"* /%C*-.:*+<-.*N>9:IO:18*(21%* #8&9>C:@*9120142:*$&%-:G-*A&8* 0%C:8@-1%C>%B*-.:*#21%@*&A*).>%1K@* 40@>%:@@*$&''0%>-;"*H.:*!:>B.-* &A*).>%1K@*#&2>$;*>@*2>J:2;*-&*@.>A-* -&!18C@*@0##&8->%B*-.:*B&12@* >%$20C:C*>%*-.:*#21%F*1@*!:*.>B.2>B.-* >%*-.>@*8:#&8-F*1%C*$&'#1%>:@* &#:81->%B*>%*).>%1*18:*#1;>%B*$2&@:* 1--:%->&%" 6 (!)*+,-.*/%%012*32&412*)56*7089:;*<=+<*
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  • 8. (2)-*',+'-2A#E%0'*2)/#E2*5'2$A,3-2$('%$A' 2A1E%(#,$5'("2'A2/20,H-2$(',+'A,-2*(#E' A2-%$A'-%7'62'$1)(1)2A'-,)2' 2++2E(#/207FM O1%B*O01%>%BF*).1>8'1%*1%C*)56*&A*[:%&9& Figure 3: Three-quarters of businesses in China and Hong Kong expect growth in their South-East Asian and East Asian operations Q: In the next 12 months do you expect your key operations in these regions to decline, stay the same or grow? Percentage of CEOs who have key operations in the region and who responded ‘grow’. Region of operations Company headquarters Western North Middle Latin South-East Europe America East America CEE Australasia South Asia Asia East Asia Africa China and Hong Kong 43% 51% 49% 66% 57% 57% 67% 75% 76% 47% Global 36% 55% 67% 77% 60% 57% 80% 83% 77% 75% Base: All respondents (1,258); China and Hong Kong (160) Source: PwC 15th Annual Global CEO Survey 2012 W%*1CC>->&%F*'1%;*:G#:$-*C&':@->$* ).1%B>%B*#042>$*4:.19>&08*-&*:%$&081B:* S>-.*A&8:>B%*'18J:-@*@2&!>%B*1%C* $&%@0'#->&%*-&*#21;*1*4>BB:8*8&2:*>%* $&%@0'#->&%*!>22*-1J:*@&':*#&2>$;* $&'#:->->&%*&9:8@:1@*8>@>%BF*).>%1K@*&!%* ).>%1K@*:$&%&';"*Y&0@:.&2C*@#:%C>%B*>@* $.1%B:@"*^7&$>12*@:$08>-;*@;@-:'@*@.&02C* :':8B>%B*'>CC2:*$21@@*>@*1*'1L&8* 8&0B.2;*&%:*-.>8C*&A*3V(*8>B.-*%&!F* 4:*>'#2:':%-:C*>%*&8C:8*-&*'1J:*#:&#2:* &##&8-0%>-;*A&8*).>%:@:*$&'#1%>:@"* 1'&%B*-.:*2&!:@-*&A*'1L&8*:$&%&'>:@"* !>22>%B*-&*@#:%C*'&%:;F_*@1>C*O1%B* H.:;*18:*128:1C;*'&8:*A1'>2>18*!>-.* H.:*B&9:8%':%-K@*+<-.*N>9:IO:18*(21%F* O01%>%BF*).1>8'1%*1%C*)56*&A*[:%&9&"* C>AA:8:%$:@*>%*2&$12*$&%@0':8*@:B':%-@* $&9:8>%B*<=++I+,F*$122@*A&8*1*8>@:*>%* 1%C*!>22*.19:*&##&8-0%>->:@*-&*:@-142>@.* C&':@->$*$&%@0'#->&%K@*$&%-8>40->&%*-&* -:8'@*&A*':C>$12*@:89>$:@F*:%C&!':%-* -.:>8*481%C@*!>-.>%*1*@->22*:9&29>%B* 3V("* 1%C*:C0$1->&%F*-.:*C:9:2&#':%-*&A* C&':@->$*'18J:-" C&':@->$*C:'1%C*'1;*4:*%08-08:C*'&8:* H.0@F*)56@*>%*).>%1*@::*1*8:12* :AA:$->9:2;"_*W%C::CF*B&9:8%':%-I80%* h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aY&2C>%Bb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e`*&A*)56@*>%*]1#1%F*,X`*>%* /0@-812>1F*cd`*>%*-.:*D7*1%C*c,`*>%* $&%@0':8*#8&42:'@*-.1-*18:*%&-*4:>%B* /@@&$>1->&%*&A*7&0-.I51@-*/@>1%*Q1->&%@* ':-*!>-.*:G>@->%B*#8&C0$-@"c a/75/Qb"*).>%1*>@*-.:*-&#*-81C:*#18-%:8* A&8*]1#1%F*/0@-812>1*1%C*/75/Q* aA1$-&8>%B*>%*:G-:8%12*-81C:*&%2;bF*1%C*>@* -.:*@:$&%C*218B:@-*-81C:*#18-%:8*A&8*-.:* 4 PwC, ‘Profitable growth for the next 4 billion’ (forthcoming 2012). D7"* 8 (!)*+,-.*/%%012*32&412*)56*7089:;*<=+<*
  • 9. ^6%*40@>%:@@*C:9:2&#':%-F*!:*!&02C* -81C>->&%122;*@-18-*!>-.*1*@-1%C18C* #8&C0$-*@:-*1%C*1C1#-*>-*-&*-.:*2&$12* %::C@F_*@1>C*[iE18&*)&'#&@F*)56*&A* 7SWNHF*41@:C*>%*P:2B>0'"*^P0-*>%*W%C>1* 1%C*).>%1*;&0*%::C*-&*A&8B:-*-.:* #8&C0$-@*-.1-*;&0K9:*B&-*1%C*@-18-*A8&'* @$81-$."*7-18-*A8&'*!.1-*>-*>@*-.:;*%::C* 1%C*40>2C*A8&'*-.:8:"_*/2&%B*@>'>218* P81%C@j*W%$"F*.1@*1*':%0*>%*).>%1*-.1-* %&!*>%$20C:@*%&-*&%2;*>-@*-81C>->&%12* A8>:C*$.>$J:%F*40-*12@&*4::AF*@:1A&&C*1%C* /@*1*8:@02-F*'1%;*).>%:@:*:%-:8#8>@:@*18:* 8>$:*C>@.:@F*A8:@.*9:B:-142:@F*@&0#@*1%C* '&9>%B*1!1;*A8&'*1*@&2:*:'#.1@>@*&%* 48:1JA1@-@*-.1-*1##:12*'&8:*-&*2&$12* 2&!*$&@-@F*-&!18C@*>%$8:1@>%B*-.:* ).>%:@:*-1@-:@" 9120:I1CC:C*$&%-:%-*&A*-.:>8*#8&C0$-@* 1%C*@:89>$:@"*W%*).>%1F*df`*&A*)56@*#21%* ]0@-*1*A:!*;:18@*1B&F*).>%1*!1@*J%&!%* -&*$.1%B:*-.:>8*TUV*1%C*>%%&91->&%* 1@*-.:*^'1%0A1$-08:8*-&*-.:*!&82C"_* $1#1$>-;*>%*<=+<*1%C*fd`*#21%*-&*$.1%B:* W%C::CF*>%*<=+=F*).>%1*@08#1@@:C*-.:*D7* -.:>8*-:$.%&2&B;*>%9:@-':%-@*M*'1J>%B* 1@*-.:*!&82CK@*218B:@-*'1%0A1$-08>%B* -.:'*-.:*-!&*4>BB:@-*1B:%C1*>-:'@*A&8* %1->&%",**O:-*'1%;*).>%:@:*$&'#1%>:@* 40@>%:@@*2:1C:8@"*W%*1CC>->&%F*ed`*&A* 1>'*-&*#0-*-.1-*214:2*4:.>%C*-.:'F* )56@*>%*).>%1*4:2>:9:*%:!*#8&C0$-@*1%C* 8:$&B%>@>%B*-.1-*$&'#:->->9:%:@@*41@:C* @:89>$:@*M*-.:*:%CI#8&C0$-@*&A*'1%;* @&2:2;*&%*2&!I$&@-*'1%0A1$-08>%B*$1%*4:* >%%&91->&%@*M*!>22*4:*-.:*#8>'18;*C8>9:8* :8&C:C*4;*8>@>%B*!1B:@*1%C*2&!:8I$&@-* &A*B8&!-.F*$&'#18:C*-&*<d`*&A*)56@* $&'#:->-&8@*&9:8@:1@"* B2&4122;*a@::*N>B08:*cb" H.:*B&9:8%':%-*.1@*8:$&B%>@:C*-.>@* B8&!>%B*8>@J"*W-@*+<-.*N>9:IO:18*(21%*.1@* 5 Peter Marsh, ‘China noses ahead as top goods 1*'1L&8*A&$0@*&%*#8>91-:I@:$-&8* producer’, Financial Times (13 March 2011). >%$8:1@:@*>%*TUVF*1*@.>A-*-&!18C@* J%&!2:CB:*>%C0@-8>:@F*1%C*1%*:G#1%@>&%* &A*).>%:@:*481%C@*4&-.*1-*.&':*1%C* &9:8@:1@"* Figure 4: The importance of new products and services has risen sharply for CEOs in China and Hong Kong (%) Q: Which one of these potential opportunities for business growth do you see as the main opportunity to grow your business in the next 12 months? Responses from mainland China and Hong Kong 40 30 New geographic markets New product or sevice development Increased share in existing markets Mergers and acquisitions 20 10 0 2007 2008 2009 2010 2011 2012 Base: All respondents, China and Hong Kong (2012 =1,258, 160; 2011=1,201, 46; 2010=1,198, 60; 2009=1,124, 63; 2008=1,150, 52; 2007=1,084, 47). Responses of ‘new joint venture and/or strategic alliances’ excluded. Source: PwC 15th Annual Global CEO Survey 2012 ).>%1?*-81%@A&8'>%B*9120:*A&8*B8&!-.* 9*
  • 10. k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`*>%*<=+<F*9:8@0@*<d`* >@*A18*A8&'*04>0>-&0@*>%*).>%1"*/%* B2&4122;"*P0-*@>G*>%*+=*40@>%:@@*2:1C:8@*>%* 8:-&&2:C*1%C*#8&C0$->&%*81'#:C*0#"*W%* :$&@;@-:'*&A*>%%&91->&%*%::C@*A08-.:8* ).>%1*M*+X*#:8$:%-1B:*#&>%-@*.>B.:8* A:!*$&0%-8>:@*.19:*40@>%:@@:@*4::%*142:* C:9:2&#':%-"*H.>@*>@*%::C:C*!>-.>%* -.1%*-.:*B2&412*19:81B:*a@::*N>B08:*,b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igure 5: The majority of CEOs in China and Hong Kong see hiring in their industry 6 ‘Haier: A Chinese company that innovates’, becoming more difficult (%) Forbes (17 June 2010), http://www.forbes.com/sites/ china/2010/06/17/haier-a-chinese-company-that- Q: In general, has it become more difficult or less difficult to hire workers in your industry, or innovates/ is it unchanged? 1 12 Global 1 9 China & 44 31 Hong Kong 59 43 More difficult Unchanged Less difficult Don’t know Base: All respondents (1,258); China and Hong Kong (160) Source: PwC 15th Annual Global CEO Survey 2012 10 (!)*+,-.*/%%012*32&412*)56*7089:;*<=+<*
  • 11. 59:%*-&C1;F*-.:*-12:%-*$80%$.*>@*.19>%B*1* 1%C*8:-:%->&%*$.122:%B:*A&8*.12A*&A**).>%1* )56@F*9:8@0@*&%2;*&%:I-.>8C*B2&4122;"* H.>@*>@*&%:*8:1@&%*!.;*)56@*B2&4122;*18:* $&@-@*18:*#18-*&A*-.1-*:01->&%?*<f`*&A* 2&&J>%B*-&*40>2C*'1%0A1$-08>%B*$1#1$>-;* -.:*)56@*!.&*.19:*A&0%C*.>8>%B*'&8:* >%*1*!>C:8*918>:-;*&A*$&0%-8>:@"*W%*A1$-F* -.:;*!:8:*'&8:*2>J:2;*-&*4:*B8&!>%B* :G#:$-1->&%@" $1#1$>-;*>%*P81E>2F*T0@@>1F*1%C*W%C>1*-.1%* >%*).>%1*a@::*N>B08:*Xb" $&'#:->->9:*>%*@&':*@:$-&8@F*@0$.*1@* >%C0@-8>12*'1%0A1$-08>%B"*7J>22:C* #8&C0$->&%*!&8J:8@*18:*1*8:$80>-':%-* Figure 6: Growing customer bases is far from the only objective of CEOs in their key overseas markets (%) Q: Which of the following objectives do you hope to achieve in the next 12 months? (The top 10 countries mentioned by CEOs in ‘Which countries, excluding the one in which you are based, do you consider most important for your overall growth prospects over the next 12 months?’) China USA Brazil India Germany 55 61 61 46 32 46 55 54 27 26 30 22 31 24 32 79 71 83 79 72 30 23 33 38 10 14 17 11 12 16 19 34 31 31 14 Russia UK France Japan Australia 53 47 49 42 44 19 49 36 15 29 34 36 22 38 19 87 78 76 81 85 31 9 21 12 12 11 10 10 16 17 26 5 6 21 19 Build R&D/innovation capacity or acquire intellectual property Build internal service delivery capacity Build manufacturing capacity Access local talent base Access raw materials or components Grow your customer base Access local source of capital Base: China (383); USA (275); Brazil (188); India (176); Germany (152); Russia (101); UK (81); France (66); Japan (62); Australia (53) Source: PwC 15th Annual Global CEO Survey 2012 ).>%1?*-81%@A&8'>%B*9120:*A&8*B8&!-.* 11*
  • 12. (:8.1#@*&A*B8:1-:8*$&%$:8%*>@*-.1-*,c`*&A* ).>%1*)56@*4:2>:9:*-12:%-*$&%@-81>%-@* .19:*#8:9:%-:C*-.:'*A8&'*>%%&91->%B* :AA:$->9:2;"*H.1-K@*$&%@>C:8142;*.>B.:8* W%*-.:*A0-08:F*).>%1*)56@*!>22*%::C*-&* -.1%*-.:*B2&412*19:81B:*&A*e+`*a@::* 1CC8:@@*@-80$-0812*$.122:%B:@*18&0%C*-.:* N>B08:*fb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l&4:2*C:*/;121F*).1>8'1%*1%C*)56*&A* %::C*-&*:%@08:*-.1-*-.:>8*2&%BI-:8'* /;121*)&8#&81->&%*>%*-.:*(.>2>##>%:@ #:&#2:*@-81-:B;*>@*@0@-1>%142:" Figure 7: In China and Hong Kong, talent constraints are not only rising rapidly, but also constraining innovation (%) Q: Have talent constraints impacted your company’s growth and profitability over the past 12 months in the following ways? Percentage of respondents who said “Yes”. We weren’t able to innovate effectively Our talent related expenses rose more than expected We were unable to pursue a market opportunity We couldn’t achieve growth forecasts in overseas markets We couldn’t achieve growth forecasts in the country where we are based Our production and/or service delivery quality standards fell China & Hong Kong We cancelled or delayed a key strategic initiative Global 0 10 20 30 40 50 60 Base: All respondents (1,258); China and Hong Kong (160) Source: PwC 15th Annual Global CEO Survey 2012 12 (!)*+,-.*/%%012*32&412*)56*7089:;*<=+<*
  • 13. H12:%-*'&4>2>-;*>@*1%&-.:8*@-81-:B;*!>-.* ,m`*&A*)56@*:G#:$->%B*'&8:*B2&412* -12:%-*'&4>2>-;*1%C*,f`*#21%%>%B*-&* R1%;*$&'#1%>:@*>%*).>%1*12@&*#8&'&-:* '&9:*:'#2&;::@*A8&'*).>%1*&9:8@:1@F* ;&0%B:8*!&8J:8@*>%-&*'>CC2:*1%C*@:%>&8* 9:8@0@*B2&412*19:81B:@*&A*cc`*1%C*,e`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m`*&A* #8&B81'':*!>22*12@&*:%142:*A&8:>B%* -12:%-*'&4>2>-;*#&>%-:C*&0-?*^P0@>%:@@:@* %1->&%12@*&A*).>%:@:*&8>B>%*-&*-1J:*@:%>&8* C:#:%C*&%*&%:*1%&-.:8*-&*@0@-1>%*-.:* #&@>->&%@*>%*@-1-:I&!%:C*:%-:8#8>@:@"* -12:%-*#&&2*A8&'*!.>$.*-.:;*C81!*-.:>8* :'#2&;::@"*V::#:%>%B*-.:*-12:%-*#&&2* 8:$80>-':%-*1%C*8:-:%->&%*$.122:%B:F*1%C* /%C*).>%1*)56@*18:*-.>%J>%B*&0-@>C:*-.:* -.8&0B.*$&2214&81->9:*1$->&%*M*81-.:8* ce`*%1':C*@:%>&8*'1%1B:8@*a@::*N>B08:* 4&G*-&*1CC8:@@*-12:%-*$&%@-81>%-@"*W%* -.1%*4;*$&'#:->%B*A&8*>%$8:1@>%B2;* db"*Z::#>%B*J:;*2:1C:8@.>#*#:8@&%%:2*>@* ).>%1F*X,`*&A*)56@*18:*>%9:@->%B*>%* @$18$:*-12:%-*8:@&08$:@*M*@:89:@*4&-.* 1%*18:1*-.1-K@*8:$:>9:C*1*2&-*&A*1--:%->&%* !&8JA&8$:*C:9:2&#':%-*&0-@>C:*&A*-.:>8* >%C>9>C012*1%C*$&22:$->9:*%::C@"_*f** &9:8*1*2&%B*#:8>&C*&A*->':"*^H.:*$:%-812* &!%*$&'#1%>:@F*-&*40>2C*1*4>BB:8*41@:*&A* (:8.1#@*-.1-K@*!.;*,f`*&A*)56@*>%*).>%1* $.122:%B:*A1$>%B*0@*>@*.&!*-&*-81%@A&8'* #&-:%->12*:'#2&;::@*1%C*#18-%:8@"*W-K@*1* 18:*#18-%:8>%B*!>-.*&-.:8*&8B1%>@1->&%@* &08*$&8#&81-:*$02-08:*-&*1*'&8:*&#:%* -8:%C*)56@*18:*8:#&8->%B*18&0%C*-.:* &%:F_*@1>C*70%*R>%B4&F*(8:@>C:%-F* !&82C"*^S:K8:*>%9:@->%B*'0$.*'&8:*%&!* @.&8-1B:@F*9:8@0@*&%2;*1*-.>8C*&A*-.:>8* 5G:$0->9:*V>8:$-&8*1%C*).1>8'1%*&A*-.:* >%*8:-81>%>%B*#:&#2:F_*@1>C*]1>':*/0B0@-&* &9:8@:1@*#::8@"* 7-81-:B;*U*W%9:@-':%-*)&''>--::*&A* l&4:2*C:*/;121F*).1>8'1%*1%C*)56*&A* /;121*)&8#&81->&%*>%*-.:*(.>2>##>%:@"* ^H.:*!&82C*>@*$.1%B>%B*@&*0>$J2;*-.1-*>-K@* 7 ‘Talent Mobility Good Practices: Collaboration at the Core of Driving Economic Growth’, World L0@-*%&-*:%&0B.*-&*B&*-&*@$.&&2*&%$:"_* Economic Forum (2012). Figure 8: High-potential middle managers are the biggest concern of CEOs worldwide (%) Q: With which of the following groups do you currently face the greatest challenges with regard to recruitment and retention? JK"2'E2$()%0'E"%002$.2' +%E#$.'1*'#*'",3'(,' High-potential middle managers ()%$*+,)-',1)'E,)H,)%(2' E10(1)2'(,'%'-,)2',H2$' Skilled production workers ,$2FM 70%*R>%B4&F*(8:@>C:%-F*5G:$0->9:* V>8:$-&8*1%C*).1>8'1%*&A*-.:* Younger workers 7-81-:B;*U*W%9:@-':%-*)&''>--::*&A* H@>%B-1&*P8:!:8;*)&*[-C" Senior management team China & Hong Kong Overseas unit heads Global 0 20 40 60 Base: All respondents (1,258); China and Hong Kong (160) Source: PwC 15th Annual Global CEO Survey 2012 ).>%1?*-81%@A&8'>%B*9120:*A&8*B8&!-.* 13*
  • 14. H.:*7089:;*#&22:C*+F<,d*)56@*41@:C* >%*X=*C>AA:8:%-*-:88>-&8>:@*A8&'* 7:#-:'4:8*-&*:182;*V:$:'4:8*<=++* M*>%$20C>%B*+<<*A8&'*'1>%21%C* H@>%B-1&*P8:!:8;*)&*[-C"*^/@*8:$:%-2;*1@* H.:*B8&!>%B*1##:->-:*A&8*).>%:@:* ).>%1*1%C*ed*A8&'*Y&%B*Z&%Bm**aN&8* +=*;:18@*1B&F*!:*!:8:*>%-:%-*&%* '1%1B:8>12*-12:%-*>@*12@&*C8>9:%*4;* #08#&@:@*&A*-.>@*8:#&8-F*!:* 8:$80>->%B*-.:*4:@-*-12:%-*A8&'*18&0%C* &9:8@:1@*C:'1%C"*H.:*'1L&8>-;*&A* 1BB8:B1-:C*8:@#&%@:@*A8&'*'1>%21%C* -.:*:%->8:*$&0%-8;"*P0-*!:*:G#:8>:%$:C* A&8:>B%*'02->%1->&%12@*%1'>%B*).>%1*1@* ).>%1*1%C*Y&%B*Z&%B*@1'#2:@"b*S:* @&':*@:-41$J@"*S:*.>8:C*:G#:8>:%$:CF* 1*J:;*'18J:-*12@&*@::J@*1$$:@@*-&*).>%1K@* @0##2:':%-:C*-.:>8*$&'':%-@*&%* -12:%-:C*#:&#2:*1%C*B19:*-.:'*218B:* -12:%-*41@:"*^S:K8:*1*2>--2:*%:!:8*-&*-.:* #21%@*A&8*40@>%:@@*B8&!-.*1%C* @1218>:@"*P0-*C>C*!:*8:-1>%*-.:'g*Q&"_ @$:%:*>%*).>%1F*40-*!:K8:*B8&!>%B*1*4>-* 1@@:@@':%-@*&A*$&%@-81>%-@*!>-.* A1@-:8*-.:8:*-.1%*>%*W%C>1F_*@1>C*R>$.1:2* >%@>B.-@*A8&'*-.:*B2&412*(!)*%:-!&8J* H&*8:-1>%*-12:%-F*40@>%:@@:@*>%*).>%1*18:* H.1'1%F*).1>8'1%*1%C*)56*&A*6!:%@* 1%C*>%IC:#-.*>%-:89>:!@*!>-.*em* C>@$&9:8>%B*-.1-*$18::8*&##&8-0%>->:@*18:* )&8%>%B*>%*-.:*D7"*^).>%1K@*$&%@0':C*122* )56@F*>%$20C>%B*-.8::*41@:C*>%* C>@#21$>%B*.>B.*$&'#:%@1->&%*1@*-.:*&%:* ).>%1+="*H.:*$&'4>%:C*9>:!@*1%C* $&''&C>-;*9120:C*'&@-*.>B.2;*4;* B8&!*>%*$&0%-8;"_* 8:@#&%@:@*A&8'*-.:*41@>@*&A*&08*+,-.* !&8J:8@?*&##&8-0%>->:@*-&*B8&!*1%C* /%%012*32&412*)56*7089:;" &##&8-0%>->:@*-&*1C91%$:"*^S:*2>J:*-&* P0-*-.:*1C91%-1B:*'1;*4:*@.>A->%B* $02->91-:*&08*&!%*.0'1%*8:@&08$:@F*!>-.* -&!18C@*2&$12*$&'#1%>:@"*W%*<==fF*L0@-* -.:*4:2>:A*-.1-*-12:%-*$1%*&%2;*4:* C>@$&9:8:C*!.:%*B>9:%*-.:*&##&8-0%>-;F_* #8:A:88:C*-&*!&8J*A&8*C&':@->$* @1>C*).:0%B*O1%F*).1>821C;*&A*Q>%:* V81B&%@*(1#:8*aY&2C>%Bb*[>'>-:C"*^WA* <==mF*C8>9:%*4;*1*@:%@:*-.1-*-.:;*!&02C* %&-F*;&0*$1%%&-*8:-1>%*B&&C*#:&#2:"_ .19:*48&1C:8*$18::8*#1-.@*!&8J>%B*A&8* d ** 8 Conrad Schmidt, ‘The Battle for China’s Talent’, 9 Hong Kong is one of two Special Administrative Harvard Business Review (2011). Regions (SARs) of the People’s Republic of China. 10 This report includes views from three China CEOs: Cheung Yan, Chairlady of Nine Dragons Paper (Holding) Limited; Sun Mingbo, President, Executive Director and Chairman of the Strategy and Investment Committee of Tsingtao Brewery Co Ltd.; and Yang Yuanqing, Chairman and CEO of Lenovo. JL24)2'%'0#((02'$232)'(,'("2'*E2$2'#$'!"#$%5'61(' 324)2'.),3#$.'%'6#('+%*(2)'("2)2'("%$'#$'Q$A#%F !"#$%4*'E,$*1-2A'%00'("2'(%02$('324/2'622$' R>$.1:2*H.1'1%F* * ).1>8'1%*1%C*)56*&A*6!:%@*)&8%>%B*>%*-.:*D7 14 (!)*+,-.*/%%012*32&412*)56*7089:;*<=+<*
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