The Japan Times WORLD EYE REPORTS HONG KONG
©THE JAPAN TIMES	Wednesday, June 26, 2002

Building a Chinese bridge from Hong Kong

Little, if anything, in the humble beginnings of the Charoen Pokphand group appeared to suggest that this might one day become an important company, let alone a multi-million dollar multinational group. Yet the phenomenal rise of this family-run, business based in Thailand has been irresistible: from a small seed and vegetable trading company has emerged an agro-industrial giant whose influence extends well beyond its core activities. Today, Charoen Pokphand plays a vital role in the Asian economy both as a purveyor of goods and services and as an engine for change in the region. China's entry into the World Trade Organization presents the group with new opportunities. Mindful of its responsibilities to a country that has served it well throughout its history, Charoen Pokphand is keen to help China develop a healthy domestic market while doing everything it can to further the country's links with the outside world.

Sumet Jiaravanon, executive chairman of the Charoen Pokphand Group

Sumet Jiaravanon, the group's executive chairman, thinks that the Hong Kong office has an important part to play in the achievement of these goals. "First and foremost, the Hong Kong office is a financing operation and a center for human resources," he says. "But we also use Hong Kong as a bridge between our Chinese operation and the outside world. The Special Administrative Region's proximity with mainland China and its unique history make it the obvious location for such a platform."

The Thai group is also leading a change in the quality and direction of investment in China. Companies that previously exploited it mostly as a manufacturing base for the production of cheap goods are losing ground, and a new breed is moving in. "Corporations are now obliged to bring in the latest technology and the latest products if they want to be competitive in China," says Jiaravanon. "The Chinese mainland can no longer be considered merely a base for producing products to be sold elsewhere in the world."

Charoen Pokphand's interest in China is based on long-term commitment. The group's chariman feels this is the only way to repay the trust that the Chinese have placed in companies like his.

"I believe that we have performed an important role in the opening up of China and we will continue to play our part in years to come," he says. "But this is only normal. China shared its market with us, and now it is up to us to bring in the top-level management, technology, capital and talent that the country needs. By entering the WTO, China has opened its markets to the world. We must now reciprocate by giving something back."

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