Our key takeaways from the APEC CEO Summit USA 2023

How did attendees perceive Asia’s role in the world during the event?

Asia Pacific’s importance going forward was cemented. Both world leaders and CEOs expressed their belief in Asia Pacific as a growth engine of the world. At the same time, there was an acknowledgement that there are big challenges around climate change, energy transition and investment. 

A particularly striking theme that emerged was the need for governments and private businesses to work in partnership. We are all facing a series of simultaneous challenges so the promotion of economic integration, where it makes sense, and co-operation between all stakeholders has never before been more important (despite growing nationalistic tendencies). That this earth of ours will prosper if we work together, trading globally with one another. 

US-China relations was a focus, given the concurrent meeting of President Biden and President Xi. The US will continue to invest in and support the Asia Pacific region as it is, like many countries, partly dependent on the region for future trade and growth opportunities. The idea of decoupling from China was dismissed.  

Attendees welcomed these remarks. This will have a huge positive effect on morale, certainty, investment and ultimately people’s mindset around what they do.

What were the key take-aways on resilience and sustainable growth?

Resonating with many was the importance and need for sustainable growth without leaving anyone behind. We need to embrace inclusivity. This is particularly important for the future workforce - businesses and governments need to set a foundation collectively so that they may benefit from the ever-changing landscape.

Some CEOs are starting to take ownership of the climate agenda, embedding it into their business model and strategy. But on the whole, there was a general agreement that we are not acting fast enough to transition to a sustainable way of life - as a society and as individual companies. Our 26th Annual Global CEO Survey - Asia PacificOpens in a new window revealed the same - even those business leaders who do see a need to act are often not making it a priority.

Our Global Chairman, Bob Moritz, in his opening remarks at a PwC APEC luncheon, suggested two levers to encourage business leaders to prioritise sustainability and thereby improve resilience. One lever is inside-out (comes from inside the company), and one is outside-in (comes from the outside environment in which companies operate).

Inside-out: more business leaders need to recognise that sustainability is now integral to protecting and building shareholder value, it is not just a compliance exercise. Companies that do not prepare to operate in a hotter world risk being blindsided by climate change impacts across their full value chains. They risk being left behind by society’s transition to a low carbon economy, and will miss the opportunities available as the world reinvents itself to be low carbon; whole new industries will be born. 

Outside-in: we should rewire the fundamental system of incentives, norms and values that drive the economy. We need policies that shift the incentives in market economies towards positive outcomes for society and the planet.

What did you learn from the technology CEOs – from the likes of Google, Salesforce, OpenAI and Microsoft?

Tech CEOs recognise their role not just in meeting their shareholder expectations in terms of profit but also in shaping growth for the world in the future.

There was an acknowledgement that the rise of automation and artificial intelligence (AI) is putting jobs in various industries at risk, and that these trends have broadened the skills gap between today’s employees and the workforce of the future. Businesses need to be proactive to better prepare their workforce for this transition.

The responsible use of technology was a theme, as was acknowledgement that their technology could help solve societal problems.

It was fascinating to hear them, too, marvel at the pace of change in the tech space. 

ChatGPT, the AI chatbot, reached 100 million users just two months after launching (by comparison, it took TikTok about nine months to reach the same figure and Instagram more than two years). The change is happening so dramatically that even the tech leaders are surprised.

If you’d like to hear more, listen to our Take on Tomorrow podcast, recorded live at the APEC CEO SummitOpens in a new window. PwC’s Asia Pacific and China Chairman, Raymund Chao, and PwC’s Global Chairman, Bob Moritz, discuss the role of the Asia Pacific region in the global economy.