CIMC Acclaimed by Vice Premier Wang Yang for Its Restructuring in the US
On November 22 local time, the US-China Business Roundtable was held in Washington D.C., USA. Chinese Vice Premier Wang Yang who was in Washington for the 27th session of China-US Joint Commission on Commerce and Trade (JCCT) attended the event. Mr. David Li , CEO and President of CIMC Vehicles (Group), and Charles W. Mudd, CEO of Vanguard, a subsidiary of CIMC in the US, attended the event on behalf of the Group. Li shared the acquisition and restructuring of American companies by CIMC with the audience. CIMC was acclaimed by the Vice Premier for the restructuring of its American subsidiaries and its expansion in the US. During the conclusion of the event, Wang Yang specially noted two Chinese companies that have made great achievements through the restructuring of the American subsidiaries and one of them was CIMC.
18 Well-known Companies in China and the US Talked about the Topic of Development
It is understood that this event held in Washington was organized by Ministries of Commerce of both countries and the Office of the U.S. Trade Representative with the main topic of how to deal with the challenges posed by a dynamic commercial environment. Happening right after the American presidential election, the event has a special significance.
Wang Yang, the Chinese Vice Premier, Penny Pritzker, the United States Secretary of Commerce, Michael B. Froman, the U.S. Trade Representative, and other relevant government officials have attended the event. All representatives from businesses are executives of leading companies in both countries, including 18 well-known enterprises such as Dell, Wal-Mart, Emerson, the United Airlines, and Alcoa in the US, and the Bank of China, CRRC, CSCEC, China Poly Group, BYD Auto, CIMC Group, and Fuyao Glass in China. Both sides talked about topics such as the new technological challenges facing various companies, compliant operations, and merger and restructuring. Christine Magford, senior lecturer at Harvard University and former partner at Bain Capital, was the moderator of the event.
Mr. David Li spoke on behalf of the Group about its global business expansion and the restructuring of its American subsidiaries and specially talked about the successful restructuring of Vanguard by the Group. He also elaborated how CIMC turned this subsidiary from the verge of bankruptcy to a company with strong profitability through the Midway Islands Program between 2009 and 2011 and explained the Group’s concept of “global operation with the wisdom of local employees.” He said that the recovery of Vanguard significantly boosted the confidence of the Group on global expansion and contributed to the shaping of the operational concept of “global operation with the wisdom of local employees.” During the past five years, CIMC has made larger investment overseas than domestically. In 2015, the overseas operating revenue covered more than 50% of the Group’s total revenue. Currently, the Group has more than 6,000 overseas employees, with its brand image entirely rebuilt.
CIMC Attracts Attention from the Audience with Its Outstanding Experience
Mr. David Li has impressed the audience with his fluent English speaking which showcased his charisma as an international entrepreneur.
The moderator was deeply interested in the story of CIMC and asked if the Group would apply its experience in restructuring and consolidating the American subsidiaries in other countries such as China. Mr. David Li said that Vanguard had been restructured once actually when it was acquired by CIMC in 2003. Another restructuring started in 2009 which lasted 7 or 8 years. CIMC has achieved valuable experience during this course. In particular, the experience in the second restructuring was applied to various subsidiaries of the Group in countries and regions such as China, Europe and some emerging markets across the globe with an amazing outcome.
Vice Premier Wang Yang specially mentioned CIMC in his closing remarks. When speaking about the ongoing restructuring of American companies with Chinese companies involved in, he said that “CIMC Group has been successful in its restructuring in the US. Currently, it has 5 subsidiaries in the US with annual taxes exceeding USD 10 million.” After the event, when bidding goodbye, Wang Yang told Mr. David Li personally, “I have mentioned CIMC just now.”
During the discussion at the Roundtable, entrepreneurs of both sides talked about topics such as the restructuring of businesses and the role that the government shall play. Mr. David Li spoke about the role the Chinese local governments have played in the restructuring of CIMC. He said that the most important part was the training on new technical know-how and the support to the functional replacement of old plants by the new ones and the knowledge training for seasoned employees during the upgrading of a number of subsidiaries under CIMC. Local governments such as Shenzhen have provided valuable support to the Group in this regard.
CIMC Frequently Shows Up at International Occasions in Recent Years
Mr. David Li has timely sent related photos back to the staff at home after the event and forwarded the comment on CIMC made by Vice Premier Wang Yang. When giving his comment, he said that the Group being chosen for such high-level conference meant that CIMC has attracted attention and won recognition from the government and the society with the achievements it made in its globalization over these years and he “felt very proud” as a representative at the event. He also said that “he has broadened his horizon and benefited a lot” by talking to representatives from so many outstanding companies and sharing their experience. The takeaway from this event will be valuable for him to consider the path of global development as a leader of CIMC Vehicles.
Moreover, he also realized from the discussion with entrepreneurs from China and the US, including the remarks made by Vice Premier Wang Yang, that Chinese companies are growing stronger and stronger and that, while they still have a lot to learn from American enterprises which boast rich experience in globalization, Chinese companies are ceaselessly catching up on and trying to have “equal dialogue” with those world-leading multi-national companies.
Another attendee, Charles W. Mudd, CEO of Vanguard, also learnt a lot at the event. He has deeply realized the significance of his support to the Midway Islands Program on the restructuring of Vanguard implemented by CIMC. “The experience from this restructuring is not only important to subsidiaries of CIMC but also valuable to other companies in China and the US.” He feels very proud to work for a company with international influence like CIMC. He said that this event “broadened his horizon” and he would share his experience more readily and make great efforts for the overall growth of CIMC Group.
Since this year, CIMC Group has been showing up at important international occasions frequently. In May, its representatives accompanied Ma Xingrui, Secretary of Shenzhen Municipal CPC Committee, to Malaysia and met with the local entrepreneurs. Yu Ya, Vice Chairman of the Group, spoke on the meeting as the only speaker of the Chinese side. In September, the Group’s representatives accompanied Xu Qin, Mayor of Shenzhen, to the Bavaria State of Germany for the Sino-German economic and trade exchange conference. Li Yinhui, Vice Chairman of the Group, spoke on the meeting as the only speaker of the Chinese side. This time, an executive of CIMC has attended the US-China Business Roundtable, a higher-level event organized by Ministries of Commerce of both countries, and delivered a speech. The Group has attracted attention from the government, the media, the business community, and the society with its frequent presence at various international occasions and is highly recognized and acclaimed. The executives speaking on behalf of CIMC act as “brand ambassadors” of the Group who have given the New CIMC a more brilliant international image.
Brief on the US-China Business Roundtable
The China-US Joint Commission on Commerce and Trade (JCCT) is a forum for high-level dialogue between governments of China and the US on bilateral trade issues. Since its establishment in 1983, 26 sessions have been held between both sides and this year marks its 27th session. The first US-China Business Roundtable was held during the 25th session of JCCT and this year marks its 3rd event. The Roundtable is now an excellent platform for facilitating the communication between business leaders from both sides and the interaction between companies and the governments during the JCCT session.