China Direct

2011-12 British Business Climate Survey in China - Summary

 

[Images courtesy of www.cbbc.org and www.britishchamber.cn]

The CBI would like to thank our partners at the CBBC and British Chamber of Commerce in Beijing for sharing the findings of the 2011-12 British Business Climate Survey in China.

The results of the 2012 Business Climate Survey indicate increasing optimism about the outlook for revenue growth in 2012. The survey clearly demonstrates the growing importance of China to many companies as a driver of corporate growth, evidenced by plans to increase investments in China this year.

However, companies continue to acknowledge the complexity of the operating environment, especially in terms of rising labour costs, increasing local competition and the ongoing challenges of IPR & legal enforcement, protectionism and bureaucracy.

 Despite this, most UK companies remain confident about the outlook for their business in China.

 The key messages that arise from this survey are the following:

 

• Despite worries over the global economic outlook and rising domestic competition, performance in 2011 was generally positive with the majority of respondents seeing an increase in revenue.

 

• China remains a key market, with the majority of respondents planning an increase in investment and remaining positive in their expectations for the coming year.

 

• Human resource issues continue to be a substantial challenge for business, with members tackling increasing labour costs and problems attracting and retaining skilled staff.

 

• Whilst domestic competition still struggles to compete in terms of technical innovation and management expertise, they showed significant improvement in marketing and branding.

 

• The key business challenges facing those in the China market continue to be bureaucracy, securing licences and protecting intellectual property.

 

• Despite intellectual property rights being cited as an important factor in China operations, the number of infringements that actually harmed operations was relatively low.

 

To download the full survey please click below:

Download 2012_china_business_climate_survey

 

 

 

 

 

 

 

UK-China 2011Trade Statistics - room for improvement

[Image courtesy of www.uktradeinvest.gov.uk]

UK Trade & Investment (UKTI) in Beijing has kindly prepared an overview of the latest UK-China trade and investment statistics.

Highlights include:

UK imports of goods from China (Jan-Aug 2011): £18.6 billion.

UK exports of goods to China: £5.5 billion.

Total trade volume of goods between China and the UK: £24.1 billion. 

Total 2010 UK-China trade volume in services: £3.374 billion.

The UK exported £2.131 billion worth of services to China.

China exported £1.243 billion worth of services to the UK.

UK was China's top source of foreign direct investment (FDI) from the EU in 2010.

The UK's FDI into China reached $1.62 billion in 2010, up 10% over the previous year. 

The UK was the fourth largest destination for China's direct investment in the EU in 2010.

China's outbound foreign direct investment in the UK reached  $330.33 million in 2010.

As of the end of August 2011, there were eight Chinese companies listed on the LSE main market, with a total market value of £15.6 billion.

There were 43 Chinese companies listed on the LSE AIM, with a total market capitalisation of £3.5 billion.

Please click here to read the full overview by UKTI.

Pfizer invests in China's pharmaceutical sector

 

 

U.S. pharmaceutical giant and CBI member Pfizer recently formed a joint venture with Jilin Guoyuan Animal Health Company that will develop, manufacture and sell animal vaccines in China.

The new joint venture, known as Jilin Pfizer Guoyuan Animal Health Company, will initially focus on developing a vaccine to prevent a respiratory illness common in pigs.

The two partners plan on developing other vaccines for pigs, cattle and poultry that will help contribute to a safe and abundant supply of pork, beef and poultry in China. Pfizer and Guoyuan have valued China's animal vaccine market at $800 million per year.

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  

 

 

 

China's Twelfth Five Year Plan (2011-2015) - the Full English Version

 

The Delegation of the European Union in China has very kindly prepared a full English translation of China's 12th Five-Year Plan (2011-2015).

In mid-March 2011, the National People's Congress (NPC), China's top legislature, approved the new Five-Year Plan (FYP).

China's FYPs are blueprints which outline key economic and development targets for the country for the next five-year period.

This is essential reading for businesses seeking to either expand their existing China operations or position themselves in the market for the first time.

To download the full translation of the current FYP please click below:

Download Full translation 5 Yr Plan 2011-2015

 

China's NPC - summary and implications for business

 

 

China Direct would like to thank CBI member Brunswick for sharing their very useful summary and assessment of the recently concluded 2011 National People's Congress.

During the NPC the leadership reviewed progress of its national economic and social development plans whilst setting important targets for the next '5 Year Plan'.

Companies will find Section 5 ("Implications for business") of particular interest.

Download China Review - NPC Meeting 2011 (2011-03-15)

 

Sino-Indian cooperation - Strategic Investors?

 

 

China Direct's CBI Delhi office has flagged up the intriguing possibility of China's Sinochem and India's National Mineral Development Corporation (NMDC) entering into a strategic alliance in order to acquire Canada's PotashCorp, the world's largest fertilizer company by capacity.

For more on this fascinating development please refer to Mark Runacres's note below.

Download CBI Delhi CH-IND Potash Oct 10