 Ladies and gentlemen, I'm Yang Lan. I will be the moderator for the following session. And please, your applause for our wonderful speakers. Please. Okay. Again, good morning. Distinguish the guests, ladies and gentlemen. Welcome to the media session of the annual meeting of the new champions 2023. My name is Yang Lan. I'm very privileged to serve as the moderator for the following session, which is on Asia's manufacturing resurgence. Welcome to the annual meeting of the new champion 2023. And we will be discussing the session of Asia's manufacturing resurgence. We've got the dialogues in English, but you will have the translator. And we welcome our speakers to speak in whatever language that they feel comfortable. So let me first introduce the topic. By sharing the insights of our leading speakers, we attempt to explore new opportunities of leading manufacturing industry to release innovative dynamism, tap the maximum potential and scaling of technologies, unleash new operation and business models for the sake of responsible, inclusive, and sustainable industry transformation. It should be claimed that the session is part of and informed by the work of the World Economic Forum's Center for Advanced Manufacturing and Supply Chains. So our morning session is one part of the WEF's advanced manufacturing. We will be talking about economic recovery and continues to play a particularly central role in Asia's economic activity. Meanwhile, manufacturing and supply chain industries are undergoing profound transformation due to the faster pace of technological development, the need to reduce environmental impact, and of course, the ongoing geopolitical tensions and complications. And collaboration are needed to spur innovation, navigate through the current context, and unlock new opportunities for responsible, sustainable, and inclusive growth. Amid the trend of geographical diversification in this industry, how can Asia's resurgent manufacturing sector ensure its continued growth through global partnership? So that's the key question we are going to ask this morning. And of course, we are very honored to be joined by the following speakers. And let me introduce them one by one. First, let's welcome Mr. Thompson Li Dongsheng, Chairman and Chief Executive Officer of TCL. Welcome TCL's founder and chairman. Welcome Mr. Thompson Li Dongsheng from TCL. Next to him is Janet Sahanyu, Chief Sustainability Officer in North Asia and China, L'Oreal. Oleyah, Beiyah, and China's Chief Executive Officer Liang Siyin. And then we have Mr. Liu Yangwei, Chairman and Chief Executive Officer of Foxconn Technology Group, Vice President of Foxconn Technology Group, Mr. Liu Yangwei. And Hong Tui Patterson, Chief Financial Officer and Chief Operating Officer of Green Climate Fund, and Mr. Zhang Kunyu, Chief Executive Officer of Tianjin Trial Technology Development Corporation Limited, and Mr. Zhang Kunyu. So I believe that all distinguished speakers will bring their own perspectives and insights, forecasts, and also their actions in the topics that we cover in this session. So first of all, is manufacturing still important? How important? And what's the role it's going to play in the economic recovery and development in the Asian region? Why don't we start with Mr. Li Dongsheng? So we will talk about the role of manufacturing in the economic performance and development. Now let's talk about the importance of manufacturing in Asia's economic recovery and development. The Asia manufacturing is our competitive advantage in the global competition, and especially in China. In China's manufacturing output accounts for about 30% of the global. Therefore, in the resurgence of Asia manufacturing will be playing a very important role. And we have a unique advantage. First of all, we have very extensive sectors and sub-sectors in the manufacturing industry. We have a complete industry system in Asia, and especially in East Asia. And also, we have a very good advantage in terms of quality, efficiency, and cost control. And therefore, Asia can become the major center for industry manufacturing. And also, we have abundant labor force here. And as you know, Asia is the most populated continent in the world, for example, in China and the countries in the surrounding areas. And therefore, we have a lot of very good professionals and management staffs. And another reason is that we have very good infrastructure in Asia. For example, in East Asia and also in some of the countries in Southeast Asia. So we do have our advantage in the infrastructure that can provide good support for the manufacturing development. And therefore, we believe we will be playing an important role in the future. The industry in Asia, and especially in China, it has a very systematic, holistic foundation and supply chain and ecosystem to sustain development in the future. And then the next question is for Mr. Liu, of course, as Foxconn is the biggest foundry manufacturer for the whole world. How do you predict the future development and the role it will play in the economic recovery? So we would like to invite Mr. Liu to talk about manufacturing and its future development. So first of all, I would like to share with you how important manufacturing is for the country and for the society. We believe manufacturing provides very extensive job opportunities. We have opportunities for all kinds of professionals and talents, and we have, therefore, provide a large number of job opportunities. And the second, it is a very important driving force for the social stability because it has involved many, many people, provide a lot of job opportunities and continuous trainings and educations on job. And therefore, that is a great support for the social stability. And at the same time, it has a very important role. And that is we have first industry, second and third industry in the country. And the first industry, it comes from the natural resources and the second industry is processing. And the third industry is about the service. So for the first industry, it has a limited amount of natural resources. And how can we make the best use of these resources? And that depends on the second industry. So for example, we can get fish from the sea. And if you do not process it, it will decay in several days. But if we just let it go, it will be a waste of the resource. So the processing industry is there to make the best use of human society. And therefore, I think this is the importance of the second industry. We have been always talking about how important the service industry is. But it is still very necessary for us to know that the first industry is the fundamental pillar for the second, and the second is the pillar for the third. And I think this is very important for me to remind you of the importance of the second industry. And in the post-COVID period, we can see many opportunities. These new opportunities can be found in the regional manufacturing. And why is that? One of the important reasons is that after the countries seek stability for a while, the leaders of those countries would be started to think about how to improve the welfare, improve the prosperity of the society. So in order to do that, manufacturing is an important part of it. So we have been thinking in different regions alike that how can we construct the manufacturing respectively? China has the biggest manufacturing base, and Asia is in the surrounding area. So with this very comprehensive system, it will be easy to establish a regional manufacturing system. So we believe this is a new opportunity. And not only the opportunity for China, but also opportunities for other Asian countries. So in this process, we can see some new business model coming up. And we call it BOL. Traditionally, we know the business model of BOT. And BOL means we have replaced the T with the L. And L means localize, build, operate, and localize. And with this model, we have been working with Thailand, Indonesia, and India with their local government authorities, local business partners. We have come out with some cooperations and solutions. So this could be a very good new business model, and that is what I want to share with you. And so much for this part of the topic, and we will follow up later. This introduction, manufacturing is not only crucial for the economic recovery, but also for the stability of society and the well-being of the population. But thank you very much for the sharing and build, operate, and localize. It's a trend for the manufacturing development. And Jenny, would you like to contribute your perspective as the sustainability officer from L'Oreal, the cosmetic giant, what's your point of view of the importance of manufacturing in this region? So many people might think, what is exactly sustainability to do with the business and the manufacturing? So actually a lot of it, you have to look from the perspective of the value chain and the ecosystem. So when we look at creating growth and Asia to give a bit of a context, Asia in the beauty market is one-third of the world, and Asia represents the largest beauty market globally. So the growth that we are seeing and projected with the confidence that we have for Asia beauty growth is tremendous. So there's going to be more investments, and even in the last two years with COVID, L'Oreal, we didn't stop, but we also invested two more for film and film centres to be built in China. And so here, there's lots of that. As we develop and generate business operations and footprint, there is also an impact that we generate out of environment and social inclusion. And that's where, and my mission also in L'Oreal, is how do I integrate sustainability and business together into our business model transformations. So in China, very interestingly, right now we have two plants. And the beauty mass that is produced by L'Oreal is all based from China factory. The technology and the packaging is all sustainable and is actually supplied to the global demand of the world. But this is very little known in the beauty sector. So you are expanding your manufacturing in China, in Asia. Is it just for the Asian markets or is it for the global market? Yeah, as you were shared before about the built and then going to local. There's a very big play here with, we call it production localization. It's a big strategy in decarbonization. Because the more you bring it closer to build your local community and ecosystem, that's where we can really accelerate on decarbonization on your scope one and two on transportation and also on your waste production in terms of what you need to manage. So in all and all, besides the business sense, it also makes sustainability sense here. And one more thing I just want to highlight, which is very unique for the Chinese manufacturing and the Chinese business market. Here in L'Oreal, China, we are seeing more than 50%, maybe closer 70% of the business model is digital, is online. And this also is a reflection that China is the most advanced digital economy here. And with that, how does manufacturing look like to support the digital economy? And also to do that, the e-commerce fulfillment that matches to complement the manufacturing, what does it have to look like to support like the biggest festival year on year, the double 11th in China, the 618 that just happened. This are all part of the play that is very unique in the China ecosystem. And it presents many innovations and opportunity. So two months ago, we just collaborate a three year strategic partnership with Alibaba Group. So from the e-commerce and in beauty, we're leading the sustainability transformation across reverse logistics for circular economy. And now we are also leading in technology front to really transform the green digital user experience on the app. And so consumers can start to use select sustainable choices. How do you buy, select, and return? And that's where we're seeing consumption is moving sustainably and also the manufacturing support in China. So the pattern or the model of consumption is changing so fast in this part of the market. And the manufacturing has to be very close to it, be very sensitive, and also responsive. We call this agility. Opportunity. Agility. Agility, yes, of course. And Hong, would you like to comment on this? Well, of course we'll cover sustainability a little bit later, but then your point of view of the role of manufacturing that it plays in Asia economic recovery. What's your perspective? Well, thank you for having me here. And so I guess I come from a different perspective on things. The Green Climate Fund is the financing mechanism under the Paris Agreement to maintain climate change below one and a half degrees Celsius. And at this stage, especially with the latest IPCC report coming out, I think people are starting to lose hope on the one and a half degrees and really focused on maintaining it below two degrees. With manufacturing being, and the supply chain being such a major component of it, and I think Mr. Liu really described it appropriately looking at the front end as well as the subsequent end in terms of the actual manufacturing. I like your example of fishing. I think that one of the projects that we did, for example, it's what we call the blue halo effect. And so the theory is that if you protect coral reefs and all you have to do is just leave it alone. You don't have to do anything else. If it's still there and it can regrow, the fish around that area actually grow bigger. And so then at the Genesis stage, you're actually creating healthier fish. And the fish, they don't care about the boundaries. They swim here, they swim there, they don't care that they're in or out of the protected area. And so one of the projects that we're doing in Indonesia is to actually support the storage and facilities and the distribution in an environmentally friendly way by supporting energy efficient storage, energy efficient boating, et cetera, and reducing the wastage at the front end. But also just allowing the fishing to be much more sustainable. And so the natural resources component is an incredibly important component. I think as the economy recovers, there is still so many small, micro, medium enterprises, MSMEs that are still struggling. And with China leading the way in terms of the recovery, in terms of countries coming back into manufacturing, there's still quite a struggle. And what we do see is that a lot of these small enterprises, especially in the global south, they are looking for the most cost efficient way of doing things. And that's not always equivalent to being sustainable. And so how do we then think about early adoption of new technologies and expedite that adoption process? And so that's where we come in in terms of concessional financing to really make that affordable and to really expedite that. The supply chain, I cannot underestimate Bangladesh alone. In terms of the garment industry, it comprises of nearly 30% of the emissions in Bangladesh. So I cannot underestimate that. So as a green financier, you have a very diversified, also very extensive landscape of application of sustainability because the manufacturing is such an extensive ecosystem. And so many different sizes of enterprises and different roles that they play. Well, actually that will lead to our second aspect of the discussion, which is about technology. Technological innovation has been very disruptive and developing so fast and even sometimes too fast to follow. But then Mr. Zhang, you lead a company that provides smart software for different industries from manufacturing to the supply chain. Would you talk about the role of technological innovation in the upgrading of manufacturing industries, please? Let's talk about technology innovation and how it can help the manufacturing business to improve. Yes, so as Mr. Lee pointed out, the manufacturing business in China and Asia in general enjoys very strong strength. Personally, I think one fundamental strength we enjoy is efficiency. We have very high efficiency in Asia and in China. That's why all the goods we manufacture can stay competitive globally. And for the same reason, as the previous speakers mentioned, in China we have very high level of digital application. We have very sound digital infrastructure in the past five years and beyond. Digital transition has been integrated with the manufacturing sector. And in this process, we perceive digital tools as a tool to enhance the efficiency in the manufacturing sector. And over the course of digitalization, we managed to also pay attention to sustainability. For example, at my company, we applied digital technologies to save energy and enhance efficiency. For example, to reduce the needs of transportation, these are some concrete efforts for us to reduce carbon footprint. In addition, we also believe that as digital technologies continues to advance, it will also exert a major impact on the formats of manufacturing sectors. Traditionally, the manufacturing sector has been dominated by companies. I'm a company who produces computers. You're a company that produces something else. But as we embrace digital technologies, the future manufacturing sector will be dominated by product categories instead of companies. Take Tianjin, as an example. The first TV set was produced here in Tianjin. And we are currently making a small pilot to try to turn the manufacturing sector in Tianjin into a product-dominated sector. For example, Company A may excel in producing a component and Company B may enjoy competitive advantage in producing another component of the product. And then essentially, you are all part of an integrated supply chain. And in this process of transition, I think China and Asia as a whole may enjoy an edge because we have already laid down very sound digital infrastructure in consumption and on the end of manufacturing, we have many very advanced plants and factories. What we need to do is to replicate the business model in the manufacturing sector to reshape this sector. And in return, it will help enhance further the efficiency of our operation and elevate the economy to a whole new height. Presentation and introduction. Okay, you know, moderating such sessions can be very difficult because sometimes they have all prepared their answers. They just say it one by one. So why don't we stir up some debate, okay? Do you like that? Yeah, okay. No, not yet, not yet for questions, but I would like to bring some discussion, real discussion and debate on this panel. We're talking about technological innovations, right? But there is a contradiction or there's pros and cons, especially between efficiency and also the well-being of our employees. As all you have said, manufacturing industry has employed a big portion of the labor in this market. Then in operating technological innovations into manufacturing, is that going to sharply reduce our employment rate? Will that disturb any social instability? That would be my question for Mr. Lee and also Mr. Liu. I think they are in the position to answer those questions and I guess that's their day-to-day decision-making. So, Mr. Lee, let's start with Mr. Lee. So how do we balance technology, efficiency and the employment opportunities? Well, that's a very big challenge. We know the most debated AI technology in recent days very often will lead to the discussion of how can we balance people's well-being with efficiency. In other words, who will lose their jobs due to AI application? From the perspective of employees, if the employer adopted a technology to replace them, it means job losses. For society as a whole, it also means reduced income and lost employment opportunities for many, many people. So it's a really hard challenge. For companies and employers, we are very often efficiency-driven. We want to find the most cost-effective solution. But under COVID, it is a very sensitive topic if a company decides to lay off its people due to technology adoption. So I think for companies, it is imperative for us to continuously enhance our efficiency and quality, especially if you are in the manufacturing sector. In the meantime, adopting new technologies can enhance people's productivities. Examples, please. Well, for example, for certain posts with AI, we can replace human labor, but for the now redundant or surplus labor force, maybe they can be put on tasks to develop new services or products to help scale up our market share, for example. I think that's one way for us to balance. For example, at TCL in the past few years, our major sources, we have enjoyed very fast revenue growth. In 2000, it was around 150 billion. Last year, it was 260 billion. So marked growth in the past few years. But we also expanded our labor force, although it has yet to match the same growth rate of revenue. So through growth, we can help address this difficulty. Also need to be balanced the welfare for the society and for the human beings. And because the labor that we put in is there for creating values. Okay, thank you very much for Mr Lee. As we were discussing in the preparation room, Mr Liu said, we have a lot of work to do. We have a lot of work to do. We have a lot of work to do. We have a lot of work to do. We have a lot of work to do. Mr Lee, I'm different from you. You produce branded products. But I'm a foundry supplier. So I provide unbranded components and the products for all the brands in the world. And if I'm not wrong, you have employed more than one million people around the world. How would you balance technology development and then the stability of employment? Yes. You can speak Chinese. Yes, you can speak Chinese. Okay. When we are using automation and smart equipment and manufacturing systems, it can provide another result. Because we can lower down the cost. And we can also improve the number of our product users and therefore our sales increased. So something increased and something decreased. Therefore, when we improve the efficiency, reduce the cost and improve the sales, and therefore we can increase the demand of human or labor. But this has been a shift from the labor-intensive manufacturing to another type of manufacturing. And with that, our employees can be able to give a better play of their brainwork. So that is the trend that we can see. And with this, we know, speaking of technology, previously we have pure human labor and then automation. And now is the intelligence. And next step may be the robot. It looks like the trend is going forward. And by far, we have done a very good job with automation. And the only exception about automation that is the very precise manufacturing and processing that you need to use your fingertip to feel it and to do some very, very small and delicate maneuvers. For example, some very tiny screws that do need human fingers to do it. And that is something machine or automation can now do right now. And also, this brings a lot of opportunities. So many of the companies are working on it, how to improve the precision, the accuracy of the fingers of the robot so that the human fingers can be replaced. So what will people be doing in the future? Of course, there will be more jobs in the future. For example, some management work. For example, the management of resource allocation also providing different types of services. And these can all be done by human. Just like I mentioned, because we can see the increase in numbers. So the job will also be increased. So that is the type of balance. Although Mr. Lee just mentioned, we have improved the business, improved automation. But because automation, there is no improvement of job opportunities. But for you, Foxcom, in the coming five years, will it increase or decrease in terms of the job opportunities? And from our past experience, it increased by small steps. You can see automation improved and also our production improved as well. So when the society has been shifted from labor intensive to technology intensive, naturally with the increase of the GDP, you can see many new professionals that refuse to do the boring jobs. So what will they do? These people, as a result of the technology improvement, these people can do something using their brains, using their wisdoms. And therefore, for the government and for the other relevant bodies, they also need to think about how to improve people's educations and trainings so that our professionals will be equipped with those know-hows and skill sets to manage those robots and machines. We also see technological development also create new industries, not just new companies, but the whole industry. For example, fashion industry was a product of industrialization when textile were being produced more cheaply and more extensively than the fashion industry comes into place. So what's your point of view, Janet, about technology and your part of the industry? Yeah, interestingly, I mentioned more about the digital economy and the environmental side of the value creation. And on technology innovation, I really want to highlight the aspect of social inclusion in the development of manufacturing. Particularly, we're seeing in L'Oreal, the largest beauty company in the world, we have the value chain from end to end, from the sourcing, raw materials, packaging, manufacturing, to the delivery, and we're also the stores. So what we're seeing, we have this program thinking about who are the people that we as the largest company in beauty have a responsibility to be able to include into our value chain for employment and a livelihood. So we look into groups like the single mothers, vulnerable groups, maybe people who have retired from military, veterans, war veterans, people with disabilities, and we work with our influence with all our top suppliers to ask them, would you be able to look into your employment chain? Are there opportunities to bring people on board and train? And last year alone in China, we hired together with our suppliers 1,500 people, full-time employees, working all across the value chain relating to beauty from packaging into our sample-sized products. Some of them are in labeling where they put the stickers. So there are actually many opportunities in that even though we have technological advancement. And in China, again, we see new job opportunities creation for vulnerable groups as well. We have an e-commerce, it's really huge here in China in our business. So we saw the opportunity that we could create a training program for people who are young people in China who may be physically disabled, but they are still mentally really active. They can be trained to become our e-beauty advisors and work on a computer. So we developed this training and we were able to hire 28 people into the roles. And what we are seeing is sustainability a cost to the company. Is sustainability a charity donation? No. Sustainability is a value creation. We include the social aspect of the community. We bring them together and we create even more value while we find that the employees that we brought in from social inclusion, they are more motivated. They also produce higher quality of work even though people might think that people with disabilities they actually have higher concentration when it comes to detailed work. We repeatedly be able to pack really small items with really precise arrangements. So we see this as a win-win together. And in Japan last week that I was just there, we actually have a factory that was built on a model on just hiring only people with disability and operated by 32 people with disability and their contribution is 30% of our packaging in the business. So your idea is that technology can also help us to be more inclusive and more flexible in terms of employment. Different types and genres of employment. And we don't have to sacrifice, do we displace people because of technology? But again I have to start up the next round of debate which is actually connected with manufacturing and the fashion business because when we talk about sustainability, talking about green transformation, manufacturing and the fashion industry, for example is under a lot of treasure in terms of changing or transforming its old way of doing business. So Hong, would you like to share some light on this issue? How does your organization help to navigate or help the manufacturing industry to navigate through a more responsible, sustainable model of doing business? Thank you. So I'm going to step in a little bit on the previous question. Yeah, the technology. Taking off my Green Climate Fund hat and putting on my historical banker hat. I think that it has not been determined yet to be honest with you. You know, in the next session in the arena room is the AI discussion. And I find it so interesting to talk about the fourth industrial revolution and how much that will transform the world. And this fourth industrial revolution and AI is paid to be as transformative to society as electricity was to society. And yet 800 million people in the world do not have any access to electricity. And another 200 million don't have access to stable electricity. And that doesn't even include the number of people whose livelihoods are affected by this. And so a billion people have not even gone through the second industrial revolution yet. And so I do think that the discussion in terms of is this going to increase the labor force, is this going to decrease, is not yet determined. I think that some of the discussions here doesn't incorporate thoughts around immigration and migration of people. And I think that it doesn't include new technologies that will come to the front. And I do think that there are real opportunities in investing in emerging markets in least developed countries because that's where the real opportunities are. I think that where there's a lack of deep capital markets, that's where it becomes a challenge for many manufacturers. But do you think there is a zero sum competition between profitability and sustainability? I actually think, and I was sitting in a session yesterday about this, and one of the asset managers mentioned that the issue at the base of it is that the cost of using traditional fossil fuels-driven products has not been priced in. The cost of stranded assets has not been priced in. And so when you're looking at going into sustainable products, or, for example, going from traditional fossil fuels to renewables, that capital expenditure, that initial expenditure is quite high. And so people look at that and they say, okay, forget it. And I'll continue doing what I'm doing. But the maintenance is actually already much higher on traditional fossil fuels. And so the question is, how do you, how do you, one, change regulations so that the pricing does come in, the subsidization is reduced over time to bring in the renewables? The second aspect is really how do I then take the very real economy that we're facing right now in terms of reducing that capital expenditure and that's where concessional financing comes in? Thank you. And I'm afraid we have to speed up a little bit. The next question is to Mr. Zhang. How do you view the role of technology and how do we get clients to achieve sustainability? Yes, so let me briefly respond to the previous question you raised. Firstly, we believe that technologies such as AI, they will be able to trigger a lot of disruptions and transformations, but while they reduce job opportunities, they will create new jobs. And that's for sure. Second, technologies like AI are not working in isolation. They need to work in tandem with businesses such as manufacturing. As Mr. Liu pointed out earlier, it's not enough for you to have a single generative AI model or a big data model. You need more to tackle challenges we face in the manufacturing sector. You need to couple that with machinery, for example. So as a whole, maybe they will reduce jobs on certain production lines, but they will certainly create new job opportunities. And new technologies such as AI can help us, for example, better detect defects in our products. In the past, we may employ human labor to do it manually. You randomly pick up a product to check defects. But with AI, these people are not replaced. What it has changed is to realize a 100% check of every single piece of the product instead of a random hand-picking that we did in the past. Also, AI requires cooperation with many other devices. For example, if you want to build a house, currently it's becoming more and more modular. We have many prefabricated pieces that can be assembled ready on site. And the whole process can be controlled in a very precise way. But the final stage of assembly must still be operated by humans to operate the forklifts, for example. And machines still are not up to the challenge of final stage assembly. Of course, these tasks are also being trained on machines and on AIs, but they will still create new jobs. On the environmental front, I think digitalization itself is based on software and algorithm, which is very power-intensive at present. The many newly-built data centers, including in China, we are trying to create many mega-new data centers. There is a requirement on the proportion of renewable energy. For example, we just built a new data center in Qinghai, and it is 100 percent driven by renewables. So you can already see the new job opportunities we can create in this process. The new business firms will create opportunities for us to integrate more renewable energies in the power system, and also it can help drive down the energy consumption. The technology is actually accelerating the pace of sustainability transformation, which is great. We have limited time. We have limited time, so let's move on to the next aspect of questions, and I hope the answers will be shorter, and I appreciate that. So the next question is about cross-border collaborations and co-operations. Well, that's the question I want to ask Mr Liu first. We know that Mr Liu, the Foxconn, has over a thousand partners. In the new page of manufacturing, how do you view cross-border cooperation and the importance of cooperation partners? What changes do you see? Well, to me, I think as we have new technologies, the manufacturing business, including the external supply chain, need to change together with technologies. They may be restructured, and while it's being restructured, suppliers and manufacturers need to work together. For example, to promote the adoption of green electricity, or other zero-carbon-related initiatives, we need to have consensus throughout the value chain with the collaboration of upstream and downstream players. So collaboration is key, and it is very important for us to cooperate with our suppliers. I also mentioned original manufacturing, which is a new opportunity for us, because in the past we are used to the idea of very centralized manufacturing practice, which has created a phenomenon where we associate a specific city with a manufacturing business. Whereas in the future, I think it will become more distributed. So we need cooperation from the local governments, local communities, to create a new culture. Mr. Lee, you can also give a quick reaction before I open the floor to questions. So in cross-border cooperation and also cooperation with the ecosystem partners in general, what changes do you see in your personal views? The manufacturing sector features very long industrial chain, so you tend to have many stakeholders. In the past few years, we have been exploring a new model, the so-called Rising Sun Program, under which we set aside a fund to help our suppliers and partners to conduct our engaging collaboration. And also it is an initiative for us to create values for everyone. Early next month, we will convene in Wuhan City a conference of global partners. The Rising Sun Program will feature high on the agenda, where we will drive more synergy between us, our suppliers, including the consensus on green and sustainable development. Indeed, green and sustainable development, for this topic itself as an entrepreneur, my personal view is that it requires a lot of inputs. To reduce energy consumption and carbon footprint, you need to make investments. So it comes at a cost. For businesses, we need to view it as part of our social corporate responsibility. It is something we have to do. In the past few centuries, we have wreaked great havoc on the environment due to humans' own development needs to the point of, you know, breaking. So it is something mandatory, not optional. Thank you. Well, this gentleman first, and you second. Okay. Yes, first. Ask the question as briefly as possible. Thank you. Well, thank you, Madam Yang. My question to Mr. Lee and Mr. Liu. You mentioned TCL while operating in Southeast Asia to lower cost. There is a concern about this transition to Southeast Asia due to cost considerations. I know that for Mr. Liu, you also have semiconductor and solar PV products. In your view, what segments of the manufacturing sector can be migrated to Southeast Asia? And what are the sectors that still need to be kept within China? Also... The manufacturing base. Mr. Liu, you go first. Mr. Lee, you go first. Okay, I think if we follow the economic principle, or the law of the economics, which has been happening in the past few decades, some of the labor-intensive jobs or segments will go from high GDP countries to low GDP economies. We witnessed the transition from the U.S. to Japan and then to China's Taiwan and then to China's mainland. And you will not stop here in China's mainland. Thirty years ago, the per capita GDP of China was 300 RMB, and now it's around 10,000 RMB in terms of per capita GDP. That means rising costs for manufacturing. So a natural consequence is that some of the manufacturing businesses will go from China's mainland to China's Taiwan or other countries and economies with lower GDP levels. But what will happen to China's mainland, for example? We simply need to look to Japan and the U.S. and China's Taiwan. And what we have seen from these economies is that they transition to higher value-added economy. Yeah, but we heard the call in the U.S. of restoring their manufacturing business. Yes, but I doubt the conventional manufacturing businesses will go back to the U.S. I think maybe they will have some success in creating some high-value-added manufacturing businesses, not the traditional electronics-making businesses because it's simply not competitive. This is my personal observation, of course. The overall point is labor-intensive segments of the manufacturing sector will transit from higher GDP economies to lower GDP regions. We don't see so many shoemaking businesses anymore in China's mainland because it's very labor-intensive. So this is the law of the economics. And what we need to do is to upgrade our own industries, to try to create more added value to further enhance our living standards. Okay, we have to accelerate due to time-interest. Anything you want to add from Mr. Lee? What is the distribution between traditional production capacity and new productive capacity? So China's manufacturing sector accounts for the line share of the global total. In the future, as China reshapes itself, we need to go from exporting products to exporting capacity. Very quickly. Yes. I want to react to Mr. Lee's comments. Can you ask your question directly, please? Yes, just to correct the way you put it, it's China's Taiwan and China's mainland. Also, my question to Mr. Lee, welcome to Tianjin. I know that over 10 years ago, you made some investments in Jinghai District of Tianjin City. I used to work there. So I wonder how you view and how much confidence do you have for Tianjin's manufacturing sector's revival? Will you continue to invest in Tianjin in the future? Thank you. I remain firmly confident in Tianjin's development. And I have shown my confidence with concrete reactions. In the past few years, we have made another 15 billion RMB of investments. We are among the fast-growing companies operating in Tianjin in terms of operating revenue. So I certainly will invest more in the future. One last question from the gentleman. I'm confident in investing in Bangalore with a new facility. My question to everyone on the panel is about the changing landscape. As we're looking at more automation coming into mass manufacturing, there will be a time when the blue-collar workers will start facing a challenging job in upskilling and reskilling themselves. So what are y'all doing as part of your efforts to help your current blue-collar employees stay relevant in jobs of the future? Thank you. Hong, would you like to respond to that? And Jenny? Sure. So the Green Climate Fund has the largest grant-making arm. We have distributed about just over half a billion dollars in grants in terms of capacity-building for countries. And that's very directly related to education and upscaling. Jenny, do you want to respond to that? Sure. Just to quickly top up on the supplier side, the training. We're investing a lot on basic sustainability technical knowledge training, like carbon disclosure project, what is SBTI, EcoVadis, all complementary to all our partners. And then from the employee standpoint, with the digital transition, we're really positioning for beauty tech. So all across the company, we have data community, digital communities, so everyone can plug in for learning from 10 minutes to an hour. And we also bring in in-house experts. So not only people who are really senior, but people who have done specific projects, they can also be really young to come and be the trainer. So we are changing the model of learning. Yeah. Well, thank you. I really appreciate your participation. But I'm afraid our time is running up. I would like to say the last two minutes for each of our speakers to share the actions they are going to take to upgrade manufacturing in the sustainable, inclusive, and responsible ways. So what you will do in your next step to improve the manufacturing in terms of the smart manufacturing and the sustainability. What I think it will depend on the extensive cooperation, combining the government to the private sectors, and to drive the Asian manufacturing, and therefore drive the world development. Shift fast to an accelerate and to do that really can only count on acceleration and the trust in the ecosystem and the partnership. And what is the sustainable choice you will make today and every day. Thank you very much. I mentioned in G20 that nowadays the international society should pay special attention to the sharing cooperation. And as for sharing, we should stop from closing down. And the cooperation need to be there instead of conflict. And therefore that would be the direction for our future prosperity. So we are looking for our joint effort towards the future. We are working on our second replenishment. We finished off our $10 billion and have pretty much spent all of that. And so we're embarking on our next strategy for the next four years. And one of the things that we're seeing is, and it's really encouraging to hear, is how we're looking much more at the systemic change and how to actually invest across the systems and not just in terms of specific projects. So it is actually really encouraging to hear how manufacturing is actually looking upstream as well as downstream. Thank you. Thank you. As for me, the technologies increasingly including artificial intelligence will be the tools to serve the best interests of the human beings. And therefore we would like to work together with the stakeholders and the other manufacturing companies to choose the most appropriate technology to cover the efficiency and equality. We have covered many different aspects of the manufacturing resurgence in Asia. We covered technological innovation, climate change and sustainability, inclusivity and social development, as well as a more agile and resilient supply chain and cooperation between the private and public sectors and NGOs, et cetera. So I think fundamentally it's the time of change, but it's also the time of mindset change. So we have to change the way we think, we act, we cooperate and we work together. So it can be very exciting because it also provides a lot of new opportunities for our time. So cheer up and make things happen. Okay, so much for our morning sessions. And thank you very much for joining us on the topic of Asia manufacturing resurgence. Close to our distinguished guests, but we also have a ceremony to follow this up.