Cautious optimism about 2017

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Alain Dehaze, CEO of Adecco Group.

A1 I am cautiously optimistic. China's leaders want to replace an investment-driven economic model with sustainable growth driven by domestic consumption and services, but growth has slowed faster than expected.

For opportunities, if Beijing can maintain the gentle speed of slowdown－called a "soft landing"－rather than a disruptive one, it is more likely to deal well with inequalities that are products of that growth, boosting standards of living in an environment-friendly environment.

A2 The plan can be divided into four major themes: secure a middle-high economic growth target; shift the emphasis from investment and exports to domestic consumption; enhance individual well-being through social welfare; and implement structural and healthcare reforms.

One development in China now is that the internet is revolutionizing almost everything. To cater to this trend, we joined hands with Ant Financial Services Group and FESCO Group to establish WoWooHR－a SaaS-based human resources service platform. WoWooHR combines both online and offline knowledge, which allows it to provide "internet plus HR" services.

A3 The world is becoming increasingly volatile. Brexit, terrorist attacks, elections in major countries and the refugee crisis are putting pressure on the global economy. As a part of it, China can hardly be immune to its impacts.

China's economic growth is projected to moderate slightly in 2017. Despite this trend, our joint venture in Shanghai is growing. Now we have 600,000 associates and 10,000 clients in China. As a player in China, we believe FESCO Adecco will again outperform the market in 2017.

A4 I can hardly say that we will not bear the brunt of a stronger dollar since human resources is a cyclical business bonded with the macroeconomic environment. Generally, I believe this is largely a beneficial process.

In the short term, a rising dollar will impact the earnings of US companies with large foreign operations. A number of them are our clients. A higher dollar contributes to cutting the dollar value of international revenues. But in the long run, this should lead to a healthier, more balanced global economy.

A5 Last April, we acquired a company called Person. This will help us to accelerate recruitment activities in China. One month later, our fifth JV company in China with FESCO Group was established in Suzhou, Jiangsu province. In November, we signed a joint venture agreement with Ant Financial Services Group and FESCO Group to establish WoWooHR－a SaaS-based human resources service platform.

In order to play a bigger role in China, we are willing to increase our investment and we are open to partnering with companies to leverage shared expertise across different areas.

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