Micheal Guo, Managing Director of IDC Greater China

Good morning, Your Excellency Mr. Dominique de Villepin, Former Frime Minister of France, honorable General Christian Quesnot, respectable Mr. Guo Gengmao, Acting Governor of Henan Province, Mr. Wang Wenchao, Secretary of Zhengzhou Municipal Committee of the CPC, Mr. Zhao Jiancai, Mayor of Zhengzhou, and dear leaders and participating representatives.

I am very grateful to Asia-Pacific CEO Association, International Outsourcing Center, Henan Provincial Government and Zhengzhou Municipal Government for your invitation.

This morning, the "Global Outsourcing Summit" let us witness two historic events:

Firstly, we clearly realize that the global industry, economy, capital, information and intelligence are constantly transferring initially from the developed countries to coastal areas in the emerging countries and now from Dalian, Shanghai and Beijing to such traditional cities in the Central Plains as Zhengzhou, Henan Province. This is a new historic event.

Secondly, we witness the worst wind and the worst international financial crisis as well. I'd like to share with you in the next 10 to 15 minutes why we hold this Summit in face of such a crisis, what the Summit will address and what a new pattern this Summit will bring.

IDC is a subsidiary of the International Data Group and IDG Group is mainly engaged in information and risk investment in China and is very successful in IT sector. Today, I would mainly talk about how we survive in the midst of the crisis. Just as the former Prime Minister of France Mr. Dominique de Villepin mentioned, the competition in global resources is very fierce. Such resouces as oil are decreasing everd day, which leads to competition in resources among major countries. If the competition were not treated globally, a war might break out at any time. This is terrible yet not impossible.

If the emerging economies in the world want to develop, the current pattern of the world must change. We can see that the development of information technology can change the pattern of the world economy. We can say that the world economy from now on, from 2008, will never return to the past dominated by one country or several countries.

International Monetary Fund recently predicted that in 2009, the world economic growth will totally stem from emerging or developing economies. In other words, the world economic growth next year will be driven by China, India, Brazil and other emerging economies. This is an unprecedented and historic picture. We see the decline and fall of the old economic system and the establishment of a new economic system. The current world pattern is unlikely to exist due to the following reasons:

First, the global integration is determined by the most fundamental economic law, that is maximizing profits. In maximizing profits, the emerging economies are the most viable and also the most effective.

The global industry has been virtually transforming constantly, from the agricultural society to industrial society and this transformation lasted from the early 19th century until today. Currently, the third great transformation is under way driven by service industry. The world resources are redistributing on a global scale. The redistribution of land resources and mineral resources is over and the world is entering into a new and final round of allocation of resources. This means that we can outsource software, services and IPO to other countries. The direct result of this distribution of intelligence is that global economy will irreversiblly allocate capital, resources, intelligence and division of labor on a global scale.

IDC is now a part of the global distribution of intelligence in the allocation of resources, namely shifting service outsourcing to China. The market is 40 billion and we only account for less than 1% of the global market. We expect that China will participate in the transfer of services and the allocation of global intellectual resources at an annual growth rate of 30% over the next five years. This will provide us with a golden opportunity.

Finally, I would like to share this issue. We have a very successful Dalian model in China and a promising Wuxi model. These models must be accommodated to China's current industrial development advantages. In other words, we must make use of our present manufacturing base, service base and information base to orient our status and role in the new pattern of globalization. Therefore, we believe that China should promote offshore outsourcing and onshore outsourcing, service outsourcing and information outsourcing simultaneously and even the processing of manufacturing and the future development of the service sector simultaneously. Only in this way can China create a new model of its own.

Before I conclude my speech, I would like to say that the world is becoming smaller and smaller, the pattern of the world's economy is becoming smaller and smaller as the information technology is deepening and the world competition pattern is changing continuously. However, the competition pattern does not mean fighting for resources, nor does it necessarily mean a war. The scarcity of resouces could mean closer co-operation to establish a new pattern in a mutually complementary, mutual help, common development and prosperity manner. In this new pattern, China's development must be based on China’s own practice and at the same time, China's development must take into account the development of other countries in the world. Let us, in the cold winter, prepare ourselves to embrace the new development of the world in the future, gain a foothold and determine our status in the new global pattern. Meanwhile, I wish Henan Province a successful transfer from an agricultural province into a large industrial province, and then into a major service province and even a province of great significance in the global allocation of resources.

Thank you!