Enterprises' overseas program to promote soft power

Poor negotiation used to be a "headache" for the Aviation Industry Corporation of China (AVIC) because of the lack of financial management experts who were familiar with international rules.

"The situation has changed since we introduced overseas training programs," AVIC's executive vice president Gu Huizhong told Xinhua in an exclusive interview.

Since 2009, the AVIC started to send its financial department executives on a one-year Executive Option MBA program given by the U.S.-based Missouri State University.

"Trainees should be under 40 and worked with the AVIC for at least three years," Gu said. "Those who already have a masters degree and are team leaders in financial management departments will be given priority."

As Gu commented, the Missouri EMBA program is aligned well with the needs of Chinese enterprises and their executives. It places tremendous emphasis on extra-curricular activities, and provides students with an opportunity to attend guest lectures, meet with regional business leaders, and tour a wide-range of organizations.

Liu Zhenyun, a senior financial management manager, who has just returned from the Missouri program, said: "One-year overseas programs help us broaden our business view, and improve practical knowledge and skills."

Chinese state-owned enterprises need a mix of "hard skills" and "soft skills" for business, said Dr. Jim Baker, Vice President for Research and Economic Development and International Programs at Missouri State University.

Baker noted that "hard skills" include business fundamentals such as accounting, finance, marketing, logistics, and information systems.

Valuable "soft skills" include planning, problem-solving, team-building, presenting and negotiating, Baker added.

"The rapid growth, and transformation of the Chinese economy, has created a unique awareness among Chinese students for identifying emerging opportunities," Baker said. "They are open to new business ideas, models, and strategies. They are continually identifying new opportunities or options."

Echoing Baker's remarks, trainees from Wuhan Iron and Steel (Group) Corporation have identified and found new opportunities for the employer.

"Returned trainees developed more than 230 pieces of patent technology, 301 kinds of new products, some of which reached the world's first-class standard," said Li Jianjun, director with Human Resources Department of the Wuhan Iron and Steel (Group) Corporation.

"A good idea by our staff may generate millions of revenue, therefore, sending them to study overseas is for sure an important corporate strategy and a wise investment," said Gu Huizhong.

Cao Rui, director of the Beijing representative office of the Missouri EMBA program, said the training of executives of state-owned enterprises is of crucial importance to promote Chinese companies' "soft power" amid globalized competition during the financial crisis.

Since 2008, the China Iron and Steel Association (CISA) has organized groups of entrepreneurs to take long-term or short-term overseas study in the United States, Germany, Japan, the Republic of Korea and Italy.

Li Kemin, CISA deputy secretary-general, said the association also selected senior managers of state-owned iron and steel companies to attend the one-year Missouri EMBA program as well as other short-term overseas programs.

Working as Director of the Office of China Programs, Baker believed that China's state-owned enterprises would gain significant competitive advantages and see a significant return on investment from the knowledge, skills, and experience, gained by these executives during their overseas study.