UCLA Conference Examines Issues of U.S.-China Economic Relations

By Sam Lin (’16)

I still vividly remember my first time at the Wilbur K. Woo Greater China Business Conference. I was a eyes-wide-open pre-MBA, eager to learn about all the exciting opportunities I could take on with my new skills. As a bilingual immigrant who’s only work experience was in the U.S., I had always dreamed of spearheading cross-border business relationships, where my dual-cultural experience could be best utilized to make a difference.

I was instantly impressed by the caliber of the speakers. I witnessed PwC’s head of China Business and an Anderson Forecast economist debate the possibility of a “hard landing” for the Chinese economy. I listened to executives from American and Chinese corporations voicing their optimism and concerns about cross-border collaborations. There was also a panel of successful immigrant tycoons talking about giving back to the Asian-American community.

The conference has only gotten better each year.

In keeping with Anderson’s mantra of “Think in the Next”, the Woo conference has evolved over the years to reflect China’s progression from a recipient of Foreign Direct Investments (FDI), to the most revered deep-pocketed investor in the world. The conference topics have shifted from “What can I sell or make in China?” to “What are the implication of Chinese wealth to my home market?”

Enough with nostalgia, let’s move on to this year’s program…

The action-packed afternoon kicked off with a career panel discussion led by Assistant Dean Regina Regazzi (’97). It was a nice touch to have past Woo Conference directors and Greater China Business Association (GCBA) leaders back as panelists. I’ll admit it was also weird seeing my friends from Anderson Class of 2015 on stage imparting career wisdom to curious undergraduates. I felt like a proud parent seeing my kids perform for the first time. It seemed just like yesterday that they were on my side of the stage, pondering the future.

The plenary session on media and entertainment discussed the deepening ties between U.S. and Chinese cultures. The speakers discussed media’s role in shaping China’s identity, the growing pains of cross-cultural collaborations, and the possibility of China exporting its culture rather than importing Hollywood. I even got to ask Phoenix Satellite Television’s CEO, Mr. Xiaoyong Wu whether Hollywood or government censorship is doing more to influence youth in China. 

Here are my top 10 takeaways from the conference:

1. China’s rapid ascent was made possible by its willingness to seek help and engage in dialogue with the West.
2. Chinese billionaires likely outnumber the U.S., but many are “hidden” billionaires whose wealth is unknown to the public.
3. The Wanda group of companies of real estate fame is now the biggest Chinese investor in the U.S.
4. What “works” in the U.S. does not necessarily work in China - Transformer’s box office receipt exceeds Star Wars.
5. Chinese buyers of U.S. enterprises typically do not hire investment bankers, and if they do, they hire Chinese banks.
6. Los Angeles recently surpassed New York as the top destination for foreign billionaires (because it’s hard to beat the sunshine and the beach).
7. Gateway market properties will remain attractive due to ease of access (direct flights).
8. Valuing stability, Chinese buyers are often willing to pay seemingly stupid prices for U.S. assets. Excess capital and lack of attractive domestic investments are the real reason for the lofty bids. Until U.S. assets become as expensive on an absolute basis vis-à-vis Chinese ones, prices will continue to inflate.
9. Private banking clients want 3 things: Safety of assets, Anonymity, Tax efficiency
10. Consumer needs will lead investor returns. As income continues to rise, entertainment, art, and health-related sectors will continue to do so as well.

The official session concluded with Shimao’s Jack Liao saying that he hopes Chinese capital does not become disruptive to the U.S. ecosystem. He reasons that although U.S. prices seem like great bargains, Chinese investors should still follow the due diligence process like other investors, and also bid sensibly so as to not needlessly inflate the U.S. market.

In typical Woo Conference fashion, my evening ended with lots of cheers and congratulations, and of course a wild karaoke session. I will definitely miss the Woo Conference once I move to Asia. But who knows, maybe I could return as a speaker someday?