Event Recap | Leading in the New Reality with Cautious Optimism

Leading in the new reality is the title of the event that the China-Italy Chamber of Commerce (CICC) organized on April 26th at PwC Innovation Center in Shanghai, gathering more than 80 representatives of the Sino-Italian business community to participate in a Business Round Table followed by a networking dinner in an exclusive terrace in the city center of Shanghai. 

The business roundtable, moderated by Giada Piccinini, CICC Board Member, Head of Shanghai office, and Senior Tax Advisor at GWA, focused on how the companies are leading in the post-pandemic business environment. It opened with welcome remarks delivered by Paolo Bazzoni, Chairman of the China-Italy Chamber of Commerce, and Tiziana D'Angelo, Consul General of Italy in Shanghai.

PAOLO BAZZONI, CHAIRMAN OF THE CHINA-ITALY CHAMBER OF COMMERCE 

TIZIANA D’ANGELO, CONSUL GENERAL OF ITALY IN SHANGHAI

To represent what it means to lead in the new reality today, PwC and CICC  have conducted and presented two separate surveys with slightly different characteristics in which they have asked companies how things have changed since the pandemic.

GABRIEL WONG, HEAD OF CHINA FINANCE PWC

The PwC survey was conducted among PwC global CEOs and presented by Gabriel Wong, Head of China Corporate Finance PWC, Inbound/Outbound Leader, and Deals Markets Leader.

The CICC survey focused on the health of Italian companies in China and was presented by Paolo Bazzoni, CICC Chairman, and Gaetano Cantalupo, CICC Vice Chairman Shanghai and CEO at COMAU. 

The report is accessible for free on our website to CICC Members only (HERE).

GAETANO CANTALUPO, CICC VICE CHAIRMAN

How are CEOs in China handling the new business environment? 

Winning today's race and running tomorrow's is the main challenge they face, say the 26th PwC CEOs Survey 2023. Sentiments for CEOs are clear: in the short term manage external risks to drive profitability to survive. Simultaneously, in the longer term, transform to thrive. Leading has never been more important.

What is the sentiment of Italian companies in China and their "state of health"?

Cautious optimism, with prudence, is the feeling that unites the majority of Italian entrepreneurs - 70% of CICC Members 2023, responding to the survey.

Analysing the state of health of our companies, after a year of falling turnover and a general increase in costs, a foreseeable recession emerges.

The picture of the financial performance in 2022 was not very positive. In 2022, 61% of respondents stated they did not meet KPIs in terms of revenue; while 18% ended the year with a loss.

Gradual and cautious recovery of confidence in China's domestic demand, but concerns remain about the sustainability of economic policies to support businesses. 

For over 60% of the surveyed companies the Chinese market continues to be seen as fertile ground for business growth in its sector and the largest market in the world with a dynamic business environment.  However, the position of 17% of our companies, for which China is no longer the first market for importance, should not be underestimated. 

No mass exodus from China, but a growing trend to have more options available, to minimize risks.

The following part of the event featured a discussion panel among our moderator Giada Piccinini and our guest speakers, Massimiliano Guelfo, Head of Piaggio Group China, Mauro De Felip, General Manager at Ferrero China, Riccardo Budriesi, President at Marposs China, Rebecca Silli, PwC Partner, shared their insights for their respective fields and the strategies they are implementing to manage the new reality of doing business in China.

All photos are available by clicking HERE.