At the symposium, Norwegian Prime Minister Gro Harlem Brundtland praised China on its green economy efforts.  Brundtland said, “I think the leadership in China knows that the pattern of development in China cannot be coal-based, oil-based, transport-based in private cars, so they talk about green economy, because they know they have different energy resources, they have to use solar and they are entering into changing all these technologies and implementing them.”

Roseman explained that, according to McKinsey & Company, which is a consultancy firm, China has the potential it needs to build a “green economy” in the coming decade.  To fulfill this goal, however, McKinsey estimated that China will need an investment of up to RMB 1.5 to 2 trillion each year from now until 2030 to implement their green technology plans.

Adam Roseman concludes by stating: “China is taking an aggressive stance to reduce its environmental impact and has all the credentials to serve in the future as a model for other countries wishing to follow a sustainable path of development. “

Roseman explained that China has taken many steps to control the real estate prices.  As he wrote, “Many large to middle sized cities in China now have implemented a limit on loans to non-local buyers and suspended loans for purchases of 3rd homes. For the first property to be purchased by a family, the government has mandated a minimum down payment of 30% of the purchase price if the property has a gross floor area of more than 90 square meters. Families that purchase a second property are required to make a down payment of 60% of the purchase price. For such properties, the interest rate to be charged on the loan must be 1.1 times the People’s Bank of China benchmark interest rate.”

When analyzing the hot-money inflows, Adam Roseman said that the Chinese government is having banks hold more foreign exchange and that they are strengthening their auditing of overseas fundraising.

In addition, as Roseman explained, “Apart from expected contributing factors of inflation, the Chinese Government has also proved its ability to act swiftly and successfully to bring vegetable prices down when there was a sharp increase in those prices in the winter of 2010. In addition, the Chinese Government recently announced limited price control guidelines and said it would put state reserves of grains, edible oils and sugar on the market when necessary in order to increase market supply.”

He explains that, while many entrepreneurs want a public market listing for their company, “They are never initially fully receptive; it’s a long period of relationship development.”  Adam Roseman goes on to explain that,  “It requires a very lengthy educational process with the entrepreneur – which is critical to go through so that they actually understand the impact of taking a private equity investor. We spend a lot of time working to demonstrate that we have taken the time to understand their business, [and to] demonstrate to them the areas of value that we’re going to be able to add.”

When asked more about investing in some of China’s out-of-the-way areas, Adam Roseman of ARC China said, “It’s bigger than anyone understands if they are not dealing in these regions.”

Adam Roseman, ARC China’s Founder and Managing Director said, “Dan is a leader in building strong retail platforms in China. He has been on the ground in China for more than 16 years building brands and his experience will be extremely valuable in our efforts to build a world-class infrastructure for investment in the Chinese market.”

Mr. Loeb also explained how pleased he is with the new position.  As he stated, “I am pleased and excited to be joining the ARC China team. They have built an impressive investment platform in China and have a strong track record investing in China’s retail space. I hope to build upon that success by leveraging Catavate’s collective experience with consumer brands and retail businesses in China.”

Certainly, Adam Roseman, ARC China and the entire team look forward to this new addition.

Increased Chinese Commerce

It looks like 360buy.com will be getting a stock market listing in the near future too.  There is strong hope of a substantial development for Chinese online commerce which 360buy.com can capitalize on.  Initially it was little more than an online electronics store but today sells a whole slew of products and services including a group-buy channel, not that dissimilar to Groupon.
DST is definitely not short of a dime or two, run by Russian billionaires Yuri Milner and Alisher Usmanov.  For someone like Chinese investor Adam Roseman, this news is very good.

One emerging industry that was added to the State Council’s original plan is for alternative energy vehicle development.  Within the next 10 years Chinese officials hope to become the world’s largest market of renewable energy vehicles.  They hope to have over 5 million vehicles powered by alternative energy at that time.

China almost surpassed Japan in 2009, but it certainly set to do so in 2010.  They are already the biggest exporter, auto buyer and steel producer and their worldwide influence is continually growing.

As Adam Roseman of ARC China wrote, “The rise of China wasn’t new, either, of course. But the speed at which the shift is taking place, and the fact that China has remained so stable and prosperous during the financial crisis has called into question Japan’s export-based growth model. China is moving up the food chain faster than anyone thought possible, and even beginning to challenge Japan at the very core of its economy: high-end manufacturing.”

Adam Roseman continued to explain that his investment firm, ARC China, helps these fast growing Chinese companies to incorporate many western style corporate management controls and strategies so that these companies can eventually enter into the realm of public corporations in which private investors can put money into these companies via the stock market.

When asked about his philanthropic work, Adam Roseman said, ““We measure our success not only by our business results, but by our performance as compassionate people giving back what we can,” Roseman stated. “Philanthropy has evolved beyond check writing to promoting real passion and involvement in charities of choice among all business leaders. Philanthropy is not just about giving money to worthy causes, it is about individual and company participation as local, national and global citizens.”