China Direct

ABB's 'In China for China' strategy sees good results for 2011

 

[Image courtesy of www.abb.com]

 

CBI member ABB recently announced record results for its performance in China in 2011, reporting record revenue growth of 21%, reaching US$5.1 billion, and record high investment of US$230 million.

ABB enjoyed particular success in areas of its business such as robotics R&D and manufacturing, integrated analytical systems, motors and drives, environmental protection, and renewable energy development. 

In addition, ABB established a joint venture with Guodian Nanjing Automation Co. Ltd. in 2011, marking a milestone for the company's partnership with a key local player. With a total investment of 1.75 billion yuan by the two firms, the new joint venture expands offerings in power grid for the utility, power plant, and industry infrastructure markets.

Commenting on ABB's record results, Claudio Facchin, ABB North Asia and China President, said, "ABB achieves continued solid growth in China despite the economic slowdown in 2011, thanks to the strong market demand for automation and grid reliability.

"Industries demand a higher level of automation to improve energy efficiency, quality, productivity, and operational health and safety. China's 12th Five-Year Plan to migrate from a resource intensive economy to a low carbon and knowledge based economy was taking off.

"ABB was able to support this positive change due to its consistent investment in technology and capacity in China under its 'in China for China' strategy. In the past six years, ABB's average annual investment was more than US$100 million, and the figure rose to a record high last year due to our strategic initiatives to expand presence through partnership with leading local players."

Please click here to read the full press release by ABB.

11th National People's Congress (NPC) Policy Highlights

[Image courtesy of www.news.cn] 

On Monday, China opened the Fifth Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing.

Nearly 3,000 NPC deputies from across the country attended the opening meeting together with top Party and state leaders.

Chinese Premier Wen Jiabao delivered a government work report at the opening meeting covering major targets for 2012, fiscal and monetary policies, price control, agriculture, economic restructuring, nuclear power, marine development, people's wellbeing, spending on education, cultural development, etc.

Highlights included:

• Major targets set for 2012 included GDP growth of 7.5%, the creation of nine million new jobs in towns
and cities, growth of the volume of total exports and imports by about 10%, etc.

• The broad money supply is projected to increase by 14%.

• RMB 1.23 trillion will be allocated for agriculture, rural areas, and farmers, RMB 186.8 billion more
than last year.

• China will formulate and implement a strategy for marine development.

• Spending on education will account for 4% of GDP.

• The government will complete five million units of low-income housing and start construction on more
than seven million units.

Please click here to read further highlights of the government work report and here for additional media coverage.

CBI Member McKinsey shares China insights via new website

 

 

 
[Image courtesy of www.mckinsey.com]

CBI member company McKinsey has recently launched an exciting series of podcasts ranging from topics such as the Twelfth Five Year Plan to China's insatiable thirst for energy on its new China website at http://www.mckinseychina.com/podcasts

Please note that the series can also be downloaded from iTunes under "McKinsey on China".

For more information or any queries please contact Glenn Leibowitz at: china@mckinsey.com

China Direct would like to thank McKinsey for sharing this information with our CBI members.

Accenture establishes R&D Lab in Beijing

 

[Image courtesy of www.accenture.com]

CBI member Accenture recently opened a new research and development (R&D) lab in Beijing to develop technology innovations for its clients in China and the Asia-Pacific region. The facility will significantly enhance Accenture's global R&D capabilities.

Dr. Kishore Swaminathan, Accenture Chief Scientist, established the new lab and is now leading the local team of scientists and researchers recruited by Accenture.

One of the initial areas of focus for the Beijing lab is to explore how smart grid technologies can be applied to help address China's growing energy demands, and the facility is already engaged in R&D activities examining best technology options and leading business applications, such as advanced analytics and mass data processing. Such activities will help Chinese utilities develop a smart, flexible, and strong electric grid to meet their energy needs well into the future.

Gong Li, chairman of Accenture Greater China, said, "Accenture has a long history in China and the opening of the Beijing technology lab reinforces our commitment to serve businesses and government agencies in the region. Innovation has been a key theme in China's five-year plan, and we look forward to serving as a long-term technology partner in support of the country's development. Accenture is well-positioned to help lead innovations that address local market challenges in areas such as energy, health, education, urbanisation, logistics, and other critical issues."

Kevin Campbell, group chief executive of Technology at Accenture, said, "Many of the technology solutions we have developed around the world are based on innovation and leading-edge R&D coming from our labs. The Beijing technology lab we're unveiling today is focused primarily on developing practical innovations that are piloted and tested and can be implemented quickly by clients to improve business performance and outcomes."

Click here to read the full press release by Accenture.

China's Foreign Investment Catalogue - 2012 update for business

On December 24, 2011, China’s Ministry of Commerce and National Development and Reform Commission released the Catalogue for Guiding Foreign Investment (2011 Revision) (“Catalogue”), the nation’s principal document for regulating foreign investment into China. 

As expected, the final Catalogue promotes investment in the strategic emerging industries identified in China’s 12th Five-Year Plan (“12th FYP”) and removes a number of investment barriers previously applicable to foreign investors. The catalogue took effect on January 30, 2012.

China Direct is grateful to Covington & Burling LLP for kindly sharing their summary with CBI members.

 

Siemens expands R&D in Chengdu, SW China

 

[Image courtesy of www.siemens.com]

Last week CBI member Siemens signed an investment agreement with Chengdu High-Tech Development Zone to establish a manufacturing and R&D facility for industrial automation products in Chengdu, the capital of Sichuan province in southwestern China.

Scheduled to launch operations by the first half of 2013, the new base will be Siemens' largest digital factory in China and the third R&D centre for Siemens industry automation products worldwide. Siemens currently has such R&D centres in Germany and the U.S.

Commenting on the rising importance of Sichuan to Siemens' global operations, Mei-Wei Cheng, CEO of Siemens Northeast Asia and President and CEO of Siemens China, said, "Sichuan is becoming more strategically important in Siemens' global layout. Leveraging our comprehensive, innovative and environmental concepts and technologies, Siemens will continue to actively participate in Sichuan's economic and social development. Today's announcement of building the most advanced automated factory here is a solid step forward."

Commenting on the benefits to the region that the new facility will bring, Dr. Marc Wucherer, President of Industry Sector Siemens Northeast Asia, said, "We are building the most modern digital factory in China by setting global standards in manufacturing efficiency and productivity, and providing individualised products to customers. This will largely help drive the industrial upgrade of the region and cultivate talents of high caliber in the long run."

Click here to read the full press release by Siemens.

Opportunities for UK businesses in China Regional Cities Report

 

The China-Britain Business Council and the Centre for International Business at CBI member The University of Leeds have prepared an updated research report on 'Opportunities for UK Businesses in China's Regional Cities' on behalf of UK Trade & Investment (UKTI).

The original report, published in September 2008, focused on the market expansion and development of China's regional cities and the relevance of this to British businesses.

However, the last three years have seen major changes to the international economic landscape, with the global financial crisis and UK recession having a deep impact on British businesses and their internationalisation prospects.

The new report presents the findings of research conducted this year.

Please click here to access the latest version of the 'Opportunities for UK Businesses in China's Regional Cities' report.

 

European Business in China - 2011/2 Position Paper launch

 

 
[Image courtesy of www.euccc.com.cn]

Yesterday, the European Union Chamber of Commerce in China (EUCCC) released its 2011/2012 Position Paper, which provides an overview of the views of many European companies doing business in China.

The Position Paper is the product of six months of consultation, which involved hundreds of companies and individuals from European businesses operating across China.

The report includes chapters on a wide range of sectors, including aviation, construction, information and communication technology, logistics, maritime transport, travel, banking & securities, insurance, private equity, etc.

The report also includes chapters on numerous cities and regions across China, including Beijing, Chengdu, Chongqing, Nanjing, the Pearl River Delta, Shanghai, Shenyang and Tianjin.

Highlights from the 2011/2012 Position Paper include:

     • China's strategic importance for global companies is rapidly increasing.
     • Key goals outlined in China's 12th Five-Year Plan (2011-2015) such as upgrading the industrial 
       sector, developing the service sector and encouraging innovation and green development match the 
       strengths of European companies in managerial know-how, the provision of services and green 
       and advanced technology.
     • The Position Paper brings together a significant number of recommendations for both Chinese and 
       European policymakers.

The CBI, together with the China-Britain Business Council (CBBC) , is organising the launch of the Position Paper in London on 22 September, which will be hosted by leading global insurance broker and CBI member Willis Group.

Pleease click here to read the Executive Summary of the Position Paper and here to access the full report.

China's 12th 5 Year Plan - further opportunities for business

 

 
[Image courtesy of www.pamlin.net]

China Direct is delighted to share with its members an assessment of business opportunities for foreign companies in China's 12th 5 Year Plan. The briefings have been kindly provided by the Shanghai office of Dorsey and Whitney LLP.

Sectors covered include agribusiness, clean energy, financial services and life sciences.

For more information please contact Mr. Peter Corne, Managing Partner : corne.peter@dorsey.com

Please download sector information below:

Download China_5 Year Plan_Agribusiness

Download China_5 Year Plan_Enviro_Clean Energy

Download China_5 Year Plan_Financial Services

Download China_5 Year Plan_Life Sciences  

 

 

 

CBI Member Success Stories in China - July 2011

 

 
[Image courtesy of www.cbi.org.uk]

Dear China Direct readers,

Kindly find a wide and varied selection of our members' successes in China for July 2011.

CBI member companies ranging from Alliance Boots to Tesco and Burberry to Fiat all reported growth or increased investment in their China operations for July.

If we have missed off your company then our sincere apologies. We would of course like to hear from you directly so please send any Press Releases or company information to our office via guydd@cbi.org.uk or ben.cooper@cbi.org.uk.

Thank you very much for your continued support of China Direct and the CBI - we look forward to flying your company flag in China soon!  

Download CBI China, Member Success Stories, July 2011