Perspective submitted by
Dr. Victor K. Fung
Chairman, International Chamber of Commerce

I.  Preface

It is a great honor for me, as a Member of the International Business Leaders Advisory Council for the Mayor of Beijing,  to advise Beijing on its journey to become a globalized, thriving metropolis. I am fortunate to have witnessed Beijing’s rapid development and transformation, which enabled the city to be a stellar host of the Olympic Games in 2008. This has set the stage and created a momentum for the Beijing’s next transformation. I therefore wish to share some ideas on how Beijing’s tremendous potential as a member of the global community could be further developed.

II. Introduction and Approach

This paper’s basic premise is that what creates a city’s international character has as much to do with what happens within the city’s own geography as with what the city is doing abroad. In other words, today’s most globalized metropolises are those which are both cosmopolitan “at home” as well as present abroad in many different contexts and forums, as a global partner and peer.

The Beijing Municipal Government is to be congratulated for the city’s transformation thus far. Indeed, much of what will propel Beijing forward as a global city can be seen in the changes that gathered pace around the Olympics. These may seem very basic– transport, the environment, cultural life, and enabling entrepreneurship– but they will do much to raise the quality of life for all citizens, as well as create a more welcoming environment for the international community. As much has been written on this topic already, I will focus my comments on the 2nd part of globality mentioned above – that of being a global partner and peer. 
 
I would like to underline that the world’s quintessential global cities are known not only for their diversified and distinct local cultures, but also because their companies, institutions, and organizations are active abroad, whether by doing business, networking and sharing ideas, or participating in international forums and discussion platform. A city’s businesses and institutions are the city’s representatives, spreading its influence far beyond its borders. Indeed, many people may come to know New York not from having visited, but instead through interacting with New York’s unspoken representatives through their global presence.

Thus, as changes on the ground in Beijing continue apace, the city could expand its international presence both formally and informally so that it becomes natural to see a Beijing company, organization, or person abroad as an international partner and peer as it is to see a New Yorker play the same role. While this is of course a long-term evolution – global cities take decades, even centuries to emerge—and will likely require much collaboration and partnership amongst Beijing’s many citizens, I would stress that the Beijing would be welcomed with open arms abroad. The world is eager for more interactions with China in the international arena – and this would greatly expedite and ease Beijing’s forays abroad.  

III. Pillars of Global Outreach

In this section I would like to suggest ways in which global cities conduct international outreach. Each of the pillars suggested below will help a city to be a more active global citizen.  Although these pillars may primarily involve private or non-government bodies or could develop spontaneously, governments are essential to support, facilitate, and provide leadership for the overall process.

Business Sector Outreach, i.e. a city’s companies will both internationalize their operations (do business abroad) and participate in global industry forums, sector working groups, and international chambers of commerce. Beijing’s companies are readily expanding their operations abroad, and they are even participating more in business-to-business dialogues and informal networks that “oil” the wheels of global business. I would suggest that they do so even more, both to share knowledge and to join the discussions that shape industries futures.  Networking is an essential part of this, and there are a number of bodies that can support both policy dialogues and the more spontaneous people-to-people outreach. 

Educational Outreach: i.e. a city’s educational institutions participate or partner in international studies, research projects, or thought leadership, particularly about subjects in the international domain.  Both Peking University and Tsinghua University have actively created international partnerships which have borne much fruit at home. It would be good to see these and other institutions go abroad more frequently to make their mark in the international arena, not only in purely academic partnerships, but also as partners to business and international organizations. 

International Policy Dialogues and Forums, i.e. Beijing’s companies, institutions and organizations will participate regularly as discussion partners and thereby contribute to the flourishing of the global policy dialogue and debate. In an increasingly multi-polar world with transnational challenges, solutions can no longer be created solely at the national levels. Cities, regions, and nations must leverage global platforms to share knowledge and ensure that their interests are properly reflected, so as to create workable, durable solutions. 

Media and Cultural Outreach, i.e. a city’s media or cultural organizations establish presences abroad, not only to report towards domestic audiences, but also to outreach to global audiences.

These are just a few ways in which metropolises and regions engage the global community, and certainly Beijing will find the right mix for itself.  I suggest them from my perspective as an observer and participant in international bridge-building. I would also add that development of any one of these pillars would be very welcomed abroad, while supporting Beijing’s next stage of transition into an international city.

IV. The ICC as Platform and Partner for Beijing’s Global Outreach

While there are many potential platforms and facilitators of Beijing’s global outreach, I would like to suggest that many of the areas referred to above could be accessed through the International Chamber of Commerce (ICC) and its global networks.  

I have come to know and appreciate the ICC’s unique features in my many years of engagement with the organization, most recently as Chairman. I sincerely believe that the growth and diversification of the Chinese economy, together with ICC’s fundamental belief in the multilateral framework, could produce many synergies of common action and interest.   

ICC is the voice of world business, championing the global economy as a force for economic growth, job creation and prosperity. ICC is the world’s only truly global business organization that facilitates the voice of business in global issues.  ICC has direct access to governments all over the world through its National Committees, while the ICC’s international secretariat feeds business views into intergovernmental organizations on issues that directly affect business operations.

ICC activities cover a broad spectrum, from arbitration and dispute resolution to making the case for open trade and the market economy system, business self-regulation, fighting corruption or combating commercial crime.  ICC is also a critical partner to the international trading system, through its role in setting standards for commercial contracts, trade finance, and other key conduits of global trade.  Increasingly, ICC is becoming a key partner to global policy makers’ and leaders’ efforts to deal with cross-border challenges such as climate change and international piracy.

While China is already involved in the ICC through the CCPIT (China Council for Promotion of International Trade), CCOIC and ICC China, rapid changes in the global economy have created many more opportunities and needs for collaboration, cooperation, knowledge-sharing and partnership, and China would be welcomed in all of these. At the same time, Beijing could leverage these networks to build a global presence. 
Below I highlight several of the ways in which Beijing, and China in general, could work through the ICC as a global partner and peer.

1. ICC Commissions

Much of the work of the ICC takes place through its 16 Commissions which cover both key industry areas and important functional aspects of doing business.  For instance, the Banking Commission is a key global resource for the development of international trade finance; the Arbitration Commission sets standards for and engages in international arbitration and the settlement of commercial disputes; the Energy and Environment Commission convenes the voice of business on issues of climate change, energy and environment.

The Commissions are the heart of thought leadership, standard-setting and best-practice sharing amongst businesses, policy leaders, and experts. Although a Chinese presence in the Commissions is taking shape, more participation from China is desirable and would be mutually beneficial given China’s growing role in international trade.

2. Research and Knowledge Sharing
The ICC Research Foundation (ICCRF) commissions independent research that contributes to public knowledge, education and debate on the benefits of global trade and investment. In line with China’s growing international trade presence, it is appropriate that more partnerships with Beijing’s leading experts and institutes around global trade issues be formed. This will help not only to globalize international opinion but also to enable China to engage its soft power in quiet outreach through scholarship and discussion.  

3. ICC World Chambers Federation and National Committees
A core part of the ICC process and work takes place through the World Chambers Federation which has access to over 12,000 chambers worldwide and National Committees and Groups in some 130 countries. China is already represented through CCPIT, CCOIC and ICC China, which have made excellent strides in representing China in the various forums, regional meetings, and annual events. I only suggest that many more Chinese businesses and experts could benefit from interactions with the global community through the ICC network, and in turn help Beijing to build a well-rounded and multi-faceted presence abroad.

V. Conclusion: Beijing as a Thriving World-Class Metropolis, at home and abroad

The ICC China National Committee is an active member of the International Chamber of Commerce with the support of CCPIT. What I am proposing is for Beijing companies to work with the ICC China National Committee (1) to be thoroughly trained in international legal dispute arbitration procedures, (2) to voice out their views on the environment and energy savings, (3) to aggressively identify trade and investment barriers, (4) to strive to be in the forefront of knowledge on global trade, and (5) to participate in whatever appropriate international issues in ICC China through the support of CCPIT.

By taking advantage of the ICC, this would facilitate the recognition of Beijing as an international partner and peer on global issues, and importantly also have positive impacts on the quality of business, thought leadership and process in Beijing and through Beijing as the national capital in China itself.   I have thus far not touched on the benefits at home for an increased Chinese presence abroad.  Beijing and its companies, business organizations, and educational institutions are leaders and role models for the rest of China.  As they become more international in their perspective, thinking, and activities, the quality of their example is bound to be lifted.

I have personally seen the benefits of imbuing one’s thinking with new perspectives, information and practices through the ICC and its mechanisms.  It gives me increasing hope that despite our global challenges, our global partnerships and spirit of collaboration will deliver us to the right solutions for the global community.  I have no doubt that Beijing will play a vital role as the world grapples with solutions to these difficult challenges.