China’s “One Belt, One Road”
strategy: the role of
multinational corporations
9th International Roundtable of Multinational
Corporations Leaders, Beijing, China
Simon Henry
Chief Financial Officer, Royal Dutch Shell plc
December 7, 2016
Simon Henry speech at the 2016 International Roundtable of Multinational Corporations, Beijing
Simon became Chief Financial Officer and an Executive Director
in May 2009.
Simon joined Shell having graduated in Mathematics from
Cambridge University in 1982, initially working as an engineer at
the UK’s Stanlow refinery.
After qualifying as a member of the Chartered Institute of
Management Accountants (CIMA) in 1989, he held various
finance posts, including Finance Manager of Marketing in Egypt,
Controller for the Upstream business in Egypt, Oil Products
Finance Adviser for Asia Pacific, Finance Director for the Mekong
Cluster and, up to the end of 2000, General Manager Finance
for the South East Asian Retail business.
He was appointed Head of Group Investor Relations in 2001
and most recently served as Executive Vice President Finance for
Exploration & Production from 2004 until his current appointment.
Simon is a member of the Main Committee of the 100 Group of
UK FTSE CFOs, Chair of the European Round Table CFO
Taskforce, and a member of the Advisory Board of the Centre for
European Reform. He is also a fellow and Member of the
Advisory Panel of CIMA, and has been a non-executive Director
of the Lloyds Banking Group Board since June 2014.
Simon is married to Jonquil, and they have three children.
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Simon Henry speech at the 2016 International Roundtable of Multinational Corporations, Beijing
China’s “One Belt, One Road” strategy is impressive in both the timescale of its
vision and in that vision’s geographical breadth. In this speech, Simon Henry
explores the areas where multinational corporations can contribute to the success of
China, to the benefit of all.
Vice Chairman Zheng Wantong,
distinguished guests, ladies and gentlemen.
Thank you. It is truly an honour to be with
you again, and also a great honour to stand
before you as a Vice President of the China
International Council for the Promotion of
Multinational Corporations.
Long-lasting success
It feels right to be talking about the “One
Belt, One Road” initiative at this ninth
roundtable meeting. After all, the Chinese
association between the number “nine” and
the concept of all things long-lasting does
feel specially significant today.
I think of all the long-lasting relationships this
gathering has encouraged, the long-lasting
success our cooperation has enabled and –
particularly when we consider “One Belt,
One Road” – the importance of long-lasting
vision.
Sharing China’s long-term vision is the first
of three things that multinationals can
contribute to “One Belt, One Road”.
Multinationals can also offer the benefits of
their international scope of operations. And
their third potential contribution comes handin-hand with having long-term vision:
partnerships and collaboration. Please let
me say a little about each of these three
things, starting with long-term vision.
China knows all about the link between
long-term vision and collaboration. This has
been clear in the important thought and
work China has done over the energy
transition. It was obvious in the global
leadership President Xi gave at the climate
talks in Paris last year.
Perhaps it is China’s history of many
thousands of years, as old as the history of
mankind itself, that allows it to look so far
into the future.
Shell, too, likes to look towards the future.
The company makes investments with a 40year lifespan. It seeks to be present in, and
to benefit, communities for generations. It
does scenario planning that casts forward to
the end of the century.
Perhaps, Shell’s natural tendency to look
towards the long-term helps to explain the
deep partnerships the company has been
able to establish in China over the years.
“Sharing China’s
long-term vision is
the first of three
things that
multinationals can
contribute to ‘One
Belt, One Road’.”
Geographical reach
If “One Belt, One Road” is impressive in the
length of its vision, it is just as impressive in
the geographical breadth of its vision. That
is the second area where multinationals can
contribute.
Shell, for example, operates in over 70
countries. Across Asia, the Middle East and
into Europe, there are very few countries
Shell does not have a presence in. Those
operations, those relationships, in all those
countries can open doors, can make
connections, and can help make projects
happen.
Partnerships
The third area I want to talk about is the
spirit of collaboration. Without that, I doubt
whether any company would ever have
become a multinational in the first place.
Shell is used to collaborating across
borders, industries and cultures.
And there is no better example of Shell’s
collaboration in China than the relationships
we have with CNPC and with CNOOC.
Our equal parties and old friends.
It is significant that, in a tough year for oil
and gas, we have made only two final
investment decisions and one of those was
in China. This was the decision to expand
the CSPC petrochemicals facility, a joint
venture with CNOOC.
“In a tough year for
oil and gas we
have made only
two final investment
decisions and one
of those was in
China.”
Simon Henry speech at the 2016 International Roundtable of Multinational Corporations, Beijing
Shell is also very proud of its work with the
State Council of China’s Development
Research Centre, which has now entered its
third phase. It is a great privilege for Shell to
have been invited to cooperate with the
DRC to look in depth at the Chinese energy
landscape.
Conclusion
So there you have three things. Three things
that Shell, as a multinational, can bring to
“One Belt, One Road” to ensure its success.
Long-term vision. An established international
business network. And the spirit of
collaboration and partnership.
And Shell is always finding fresh
collaborations in China, new relationships
with Chinese partners looking to invest
overseas. Each time I visit this country I
come away with new ideas, new
connections and new friends.
Together, we can achieve great things.
May the work of this ninth roundtable
meeting be long-lasting, and to the benefit
of all.
“Shell is always
finding fresh
collaborations in
China… new
relationships with
Chinese partners
looking to invest
overseas.”
Thank you.
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