This report charts the discussions and key points of the Dublin Beijing Business Summit 2014, a business networking conference organised as part of Asia Business Week Dublin 2014 and in support of the Dublin-Beijing Twinning Agreement.
Dublin Beijing Business Summit!Twin Cities, Maximising Business Partnership Opportunities !
!4 June 2014 Dublin, Ireland!!
SUMMARY REPORT!!The ‘Dublin Beijing Business Summit’ took place on 4 June 2014, during Asia Business Week Dublin - an initiative of Dublin City Council and Asia Matters with Dublin Institute of Technology (DIT) as academic partner. The summit focused on the development of business relations between the twin cities of Beijing and Dublin. !!Dublin and Beijing, as dynamic capital cities, play a significant role in driving economic growth in both Ireland and China respectively. Dublin is home to some of the biggest companies in the world, including the top technological innovators creating a unique business space that is transforming the city. Dublin’s reputation is changing from simply being the capital of Ireland to being the technology capital of Europe. In 2012 Dublin was voted the most globalised city in the world (Ernst & Young), it is increasingly applauded for the ease of doing business, while tourists and foreign students are visiting due its safety, cultural richness and the quality of education offered. !!Beijing on the other hand, is a global mega city of over 21 million inhabitants and covers an area of 488 km². Beijing is not only the heart of China’s political system, but also the cultural and tourist capital of China, as well as playing a significant business role in the financial services sector and in technological innovation. 48 of the Global Fortune 500 companies are headquartered in Beijing, more than in any other city in the world. ! !The summit utilised the framework of the Memorandum of Understanding (MoU) Twinning Agreement between Dublin and Beijing, which seeks to further the economic, civic and cultural development through greater cooperation. The summit focused its attention on sharing knowledge and improving cooperation in key sectors for both cities such as Trade and Business relationships, Technological Innovation, Tourism and Education. !!The summit provided a platform for the introduction of respected companies and experts from both cities and countries to each other, to strengthen people to people relations and foster future business partnerships. The organisers were delighted to welcome 3 delegations of high-level government and business officials from Beijing to Dublin for the summit.
Opening Session!!Dublin Beijing Business Summit was chaired by Martin Murray, Executive Director, Asia Matters and was opened with welcome remarks from H.E. Xu Jianguo, Ambassador for China to Ireland and Mr. Owen Keegan, Dublin City Manager. Ambassador Xu encouraged delegates to build upon business connec t ions to c rea te more cooperation between Ireland and China. He cited the upcoming 35th anniversary of diplomatic relations between Ireland and China, and remarked on improving two-way trade relations. Mr. Keegan welcomed the visiting delegates to Dublin and detailed the many advantages of doing business in Dublin, given its track record for attracting Foreign Direct Investment and its human capital talent base. !!Following this, keynote presentations were delivered by Mr. Du Deyin, Chairman, Standing Committee of Beijing Municipal People’s Congress and head of the Beijing delegation and the Lord Mayor of Dublin, Oisín Quinn. Mr. Du called for greater engagement to expand bilateral trade, to broaden investment cooperation and for further collaboration in technological innovation. He cited tourism links between both cities as a key driver for both economic and people to people connectivity and Beijing’s growing role in the global tourism sector as the host of the World Tourism Organisation secretariat. He also called on the establishment of a direct flight between the two cities to improve connectivity.!! !!!!
“In bringing Chinese and Irish economies and industries closer, and in searching for a fresh approach to cooperation in trade services, we can u n e a r t h m o r e t a r g e t e d a n d complementary products and services, and fully realise the potential of bilateral trade”!!
Lord Mayor Quinn reaffirmed Mr. Du’s calls for greater cooperation in the key sectors of technology and pharmaceuticals, while adding the importance of education as a means to build greater lasting connections between both cities.!!
“ I’m very confident that Ireland can be an absolute key partner for China, and a key partner for Chinese businesses in the future, and can be the ideal gateway for Beijing and China into Europe. We will work with you to ensuring that this happens.”!!
Connecting Cities, Maximising Trade and Business Relationships!!Session 1 featured four expert presentations on further driving the business relationship between Beijing and Dublin, as well as Ireland and China. The session focused on the business and policy infrastructure in place in both cities to foster greater cooperation and assist business partnerships.!!Zhao Xinxin, Deputy Director, Beijing Investment Promotion Bureau, opened the session with a detailed presentation on the market opportunities and incentives for doing business in Beijing for potential Irish investors. In particular, Mr. Zhao outlined three key sectors undergoing huge growth: the established financial services sector, emerging aviation industry - with Beijing embarking on an ambitious programme to be the hub for the Asia Pacific - and the rapidly expanding bio-pharmaceutical sector.!! !!
“The Development Planning for Beijing’s General Aviation Industry from 2011 to 2020, will see Beijing building the most important general aviation service centre in the Asian-Pacific region, featuring general aviation marketing, convent ion, exh ib i t ion, finance and education. This development will foster a strategic emerging industry of 300 billion yuan.”!!
Eileen Sharpe, Director of Growth Markets, IDA Ireland, outlined the structure and functions of IDA Ireland in supporting Foreign Direct Investment into Ireland. The presentation detailed the support on offer for potential Chinese companies seeking partners and investment opportunities, as well as the competitive advantage and track record that Ireland has in attracting investment from top global companies. Ms. Sharpe also outlined the significance of the visit of Xi Jinping to Ireland in 2012, citing it and reciprocal Irish visits to China as a sign of the “warmth and strength of the relationship between Ireland and China”. !!Shen Yongqi, Chief Economist, Beijing Local Taxation Bureau, explained Beijing’s competitive tax system for investors. He also detailed
the business benefits of the Ireland-China double taxation agreement signed in 2001 and its role in building greater business cooperation between both countries. !!Gina Quin, CEO, Dublin Chamber of Commerce, paid particular attention to the vibrancy of Dublin’s business community and its role as a dynamic entry point into the 500 million consumers of the EU single market. Ms. Quin went on to advise why Dublin ranks highly among the global indices on entrepreneurship and availability of talent. The presentation also detailed some of the Chinese success stories operating in Dublin, such as ICBC International Leasing in the significant aviation finance sector and the global ICT giant, Huawei. Ms. Quin called on Dublin and Beijing to improve its cooperation in the tech industry, remarking that Dublin is not only Europe’s tech capital but also sits strategically between Beijing and Silicon Valley.!!This session provided a valuable overview on the government policies and business networks supporting collaboration between each city, as well as the key advantages and incentives that both cities offer to investors. Interestingly, the aviation sector particularly stood out on two fronts: firstly, in terms of Aviation Finance - Ireland has significant expertise in Aviation Finance, while Beijing is increasing investment in its aviation infrastructure, as well as support industries such as financing and leasing. Interestingly, a key issue raised in this session related to Aviation also, with calls for the direct air connectivity between Dublin and Beijing and the resulting benefits to trade and investment. !
Amount of Bilateral Trade Between Ireland and China in 2013!
% Growth in Irish Exports to China in the past year
No. of visits by Chinese VIPs to Ireland in the past year
Figure 1: Ireland’s growing trade and investment relationship with China
T w i n I n n o v a t i o n H u b s : Opportunities for Science and T e c h n o l o g y G r o w t h a n d Partnerships!!Session 2, chaired by Peter Finnegan, Director, Office of Economy & International Relations, Dublin City Council, featured three presentations from technology experts playing a key role in building technology innovation in both cities and countries. !!Joan Mulvihill, CEO, Irish Internet A s s o c i a t i o n , b e g a n h e r presentation “Dublin – Europe’s Capital of Digital Innovation and Talent”, by outlining what makes Dublin a leader in technological innovation and an attractive host for t h e w o r l d ’ s m o s t d y n a m i c companies. Ms. Mulvihill cited global indices that place Ireland as the number one in the world for skilled labour and number one in the Eurozone for “ease of doing business”, two significant advantages when attracting technology companies to invest. The presentation also outlined some of the infrastructural advantages that Dublin holds for potential investors in Beijing looking for an entry point to the European single market. These included access to ta lent , suppor t ive government policies, the physical infrastructure to create an innovative landscape , as well as industry and professional services support to make it easy to operate in Dublin. !!!!!!!!!!!
Figure 2: Dublin’s track record as Europe’s Digital Capital!
Ma Yunfei, Executive Chairperson, Digital C o n t e n t I n d u s t r i e s A s s o c i a t i o n , Zhongguancan Technology Hub, explained the structure and incredible growth story of Z-park, Beijing’s technology innovation centre. Z-park is leading the technology trend in China with major opportunities in key areas such as mass data cloud computing, next generation genomics, 3D printing, advanced nano-materials and clean energy. Ms. Ma went on to discuss some of the key sectors of growth in the tech industry in China, outlining the remarkable 30% average annual growth rate of the ‘Digital Content Market’ since 2010 into a market worth nearly USD$200 billion today. !!Eugene McDonough, COO, Coder Dojo Foundation, opened his presentation by introducing delegates to the work and origins of Coder Dojo. The Irish born, open source, volunteer led, global movement of free coding clubs for young people has a strong presence across Asia and works in partnership with tech industry partners in each of its 40 locations across the world. Coder Dojo acts as a catalyst to enable skills and human resources development in the tech sector by encouraging young people to understand key coding skills and explore hidden talents. Mr. McDonough ended his presentation by welcoming opportunities for partnership and collaboration in China. !
• 3 of the top 3 Global Security Software Companies
• The top 10 “Born in the Internet” Companies
✭ Ranked first for availability of skilled labour
✭ Ranked first in Eurozone for ease of doing business
✭ 93% of MNCs rate their investment in Ireland as a success
“Globally there is a monumental shortage of programmers, with the EU predicting a shortfall of 1 million technical workers by 2015. This issue affects all areas of industry because technology is affecting how e v e r y o r g a n i s a t i o n communicates, collaborates and operates. A trend that is set to continue.”!!
Session 2 provided some useful insights on the technology sectors of both cities, a key sector for each. Dublin and Beijing have created the infrastructure for innovation to thrive and both cities have huge potential to develop deeper partnerships in the sector. The session outlined the many economic challenges and opportunities facing the EU and Asia in their interaction with one another. In addition, the session featured analysis of shifting economic power with emerging economies like Indonesia and India playing a greater role in the global economy. !!Building Lasting Links – Driving Growth through Tourism and Partnerships in Education !!S e s s i o n 3 f e a t u r e d t h r e e presentations by Irish speakers working to build lasting connectivity, both directly and indirectly, between the two cities in the tourism and education sectors.!!Kevin Toland, Chief Executive, Dublin Airport Authority, detailed the strong performance of Dublin Airport in 2013, with a 6% increase in passenger numbers. Mr. Toland outlined the potential growth that greater air connectivity can hold for Dublin and Ireland as a whole, citing the role that airports and air service networks play as “critical economic
facilitators”. The presentation detailed some key examples from Paris, Munich, Vienna and LA, where strong route networks directly contributed to jobs growth, FDI and other economic stimuli, as well as the potential that a direct route to Beijing offers both Dublin and Ireland. According to IATA Airport IS database, demand for Ireland-China flights is on the rise with 46,000 two way passengers estimated for 2013 and a market that “can exceed 105,000 passengers by 2017 at current growth rates”. !!In addition, Mr. Toland detailed the major expansion underway in Beijing to improve its aviation infrastructure to have two state of the art airports by 2018 to serve as a centre for air connectivity in the Asia Pacific. This direct connectivity holds huge added value to Ireland’s tourism sector and business partnerships between Dublin and Beijing. Finally, he called on a full ‘Team Ireland approach to developing the China Market’, urging close cooperation with the full list of stakeholders to act on the established key priority of “direct air services” to China from Ireland, thus utilizing air links as a facilitator for FDI stimulation.
Figure 3: Current demand for Ireland-China Flights
David Brennan, Chief Executive, Dublin City Business Association, highlighted Dublin’s attractiveness as a destination for tourists, foreign students and investment. Mr. Brennan highlighted Dublin’s reputation for being a safe and highly rated tourist destination, citing the high level of satisfaction felt by respondents in Fáilte Ireland surveys. The survey figures showed an overwhelming proportion of tourists found Ireland to be a friendly, safe and beautiful country to visit. The presentation also cited the increase in outward tourists from China and the role of China as a key driver in the global tourism sector, as well as the opportunity for Ireland to increase its share of this growth. !!Professor David Fitzpatrick, Provost, Beijing-Dublin International College, University College Dublin (UCD), gave a very interesting presentation on the rising role of education in Chinese society. Currently China has over 24 million undergraduates, admissions of 6.9 million per annum and over 400,000 students studying overseas. This massive sector has led many foreign universities to enter the market and in 2012, UCD and the Beijing University of Technology signed a joint venture to establish the Beijing-Dublin International College (BDIC). !!Professor Fitzpatrick detailed the rapid growth of the college as it attracts top-performing students, enjoys a high profile in the Chinese media and builds strong links to industry. The BDIC is a concrete example of the success of the Beijing-Dublin relationship and a demonstration of how greater institutional cooperation can boost business opportunities. !In terms of building lasting links between Dubl in and Bei j ing, Tourism and Education play a major
role. Efforts to link Dublin and Beijing’s airport authorities and Universities in the cities have developed real tangible results. With Chinese spending on education and tourism on the rise, the potential for further cooperation in both sectors is high.
Beijing is a Key Global Business Centre – Though recognised as the political, tourism and cultural capital of China, there is not the same understanding of the significant business role of Beijing and the associated partner and market opportunities for Dublin and Ireland.!!Connectivity is Key – Establishing a direct flight between Dublin and Beijing was widely felt as a key priority to improve business connectivity, tourism and educational linkages between both cities and countries. Dublin Airport Authority’s twinning with Beijing Airport Authority is a significant success of the Dublin-Beijing Twinning Agreement and plays a significant role in connectivity between both cities. !!Greater Cooperation in Technological Innovation – Both cities are centres for technological innovation and home to top companies in the sector. Opportunities to build partnerships and market opportunities can be fostered through greater connectivity in the sector. !!Tourism – As Chinese tourists shape the future of the sector, it is important for Dublin to ensure that it is well-connected and accessible for potential visitors. !!Education – The Beijing-Dublin International College has provided a unique success story on partnership in the field of education, a success that other educational institutions can emulate. In addition, the rising number of Chinese students studying overseas represent a unique opportunity to build cooperation in education, as is the opportunities for Ireland to increase its language capabilities and encourage talented young Irish students to learn Chinese language on the ground in Beijing.!!Opportunities for Trade and Investment – A number of key sectors were outlined as potential points of convergence between Dublin and Beijing business communities. Aviation Finance is a sector where Ireland has significant expertise. Furthermore, as Beijing has increased investment in this sector, Aviation finance holds vast opportunities for further partnerships and connectivity. Other sectors cited were bio-pharmaceutical, financial services and professional services, which are areas where greater connectivity can be fostered for mutual gains.
This document is a summary of the discussions from the “Dublin Beijing Business Summit 2014”. The insights shared by speakers at the event are summarised in this report in good faith and accurately reflect the key topics, quotes, facts, figures and charts presented during the conference. This is not investment advice or an offer or solicitation to sell or purchase any financial instruments shares or products. The author and partners to this publication expressly disclaim all liability to any person or corporation in respect of any losses or other claims, whether direct, indirect, incidental, and consequential or otherwise arising in relation to the use of this report as the basis for any investment or other decision or in connection with any advice given to third parties.!!
Special thanks to !!Alan Dukes, Chairman, Asia Matters!
Tom Hardiman, Chairman, Chester Beatty Library!Turkish Airlines!
Members of the Asia Business Week Dublin Advisory Group !Dublin City Council !
Dublin Institute of Technology!All Associate Partners!
