The challenges faced by Chinese companies going global was the theme of the Sino-European Forum held in Beijing on July 18, 2013, which featured a keynote speech by Zoomlion President and CEO Zhan Chunxin as well as a signing ceremony for Zoomlion's sponsorship of the CEIBS Sino-Europe Dialogue Chair held by Professor Romano Prodi, former prime minister of Italy and former president of the European Commission. The event also included a panel discussion with Mr Zhan, Professor Prodi, Co-Director of the CEIBS Centre on Innovation and Associate Professor of Management Han Jian, and Managing Partner of Mandarin Capital Partners Ms Zhen Gao. The moderator was CEIBS Associate Dean and Management Committee member Professor Xu Dingbo.

As part of the Sino-European Forum, co-organized by CEIBS, Zoomlion Heavy Industry Science & Technology Development Co., Ltd, and Mandarin Capital Partners, held in Beijing on July 18, 2013, panel discussion focuses on Chinese companies going global. [Photo by Huang Shuo / chinadaily.com.cn]

In his keynote speech, Mr Zhan shared some of the experiences that Zoomlion has had in its 2008 acquisition of the world's third largest concrete machinery manufacturer, CIFA S.p.A. (Compagnia Italiana Forme Acciaio S.p.A.), which is based in Italy. Zhan said that successful mergers and acquisitions can allow Chinese companies to "leapfrog" ahead of competitors in today's rapidly changing globalized business environment. However, "Chinese companies who want to go abroad must have both a global and a local mind-set, and be open to the customs and cultures in other countries," he cautioned.

During the panel discussion, Professor Prodi spoke about Europe's current economic climate and gave suggestions for Chinese companies who want to go global. He indicated that the European economy will not be able to improve until the banking system is reformed and there is a unified economic policy in place. "We need to define a new economic policy, otherwise it will be impossible to see growth," added he.

Professor Han Jian highlighted the importance of people management, and said that often the reasons that mergers and acquisitions fail – particularly those conducted across borders – can be attributed to differences in culture and understanding, in executive qualifications, and lack of communication.

Ms Zhen Gao spoke about how Mandarin Capital partners assisted Zoomlion with its acquisition of CIFA S.p.A. and emphasized how overcoming cultural differences is one of the keys to a successful merger or acquisition. She also spoke about why Mandarin Capital, which has offices and partners in both Italy and China, is well positioned to assist Chinese companies to both select potential M&A targets, and successfully integrate them.

The forum was co-organized by CEIBS, Zoomlion Heavy Industry Science & Technology Development Co., Ltd, and Mandarin Capital Partners. CEIBS Deputy Director of Executive Education and Director of Company Specific Programmes Ruby Chen and Operations Director of CEIBS Beijing Campus Catherine Hsiao also attended.