China Direct

Celebrating CBI Member Success in China May 2012

 

Please find attached our monthly briefing “Celebrating CBI member success in China” for May, covering 42 members.

Members covered include:

   

• ABB
• Airbus
• Alliance Boots
• ANZ
• Arup
• Atkins
• Benoy
• Boeing
• Burson-Marsteller
• Cardiff University
• Clifford Chance
• The Coca-Cola Company
• DHL
• Everything Everywhere
• Ford Motor Company
• Foster + Partners
• Fuji Xerox
• Gatwick Airport
• GE
• GKN
• GSK
• Herbert Smith
• HSBC
• IHG
• Jones Lang LaSalle
• King’s College London
• London Stock Exchange
• M&S
• Mott MacDonald
• Newcastle University
• News Corporation
• Nottingham Trent University
• Pfizer
• Philips
• Pinsent Masons
• Rio Tinto
• RBS
• Shell
• Siemens

Download CBI China, Celebrating CBI member success in China, May 2012

 

 

 

GE sets up new China Joint Venture

 

 
[Image courtesy of www.ge.com]

Leading technology, services and finance company and CBI member GE and top Chinese power generation company Huadian Group recently set up a $100 million joint venture to develop gas turbines for distributed energy systems. Distributed energy systems refer to the generation of energy from small energy sources.

Based in Shanghai, the joint venture, known as Huadian GE Aero Gas Turbine Equipment Co. Ltd., will develop aeroderivative gas turbines, which are modified from aviation engines and burn natural gas to generate energy.

Production is currently scheduled to launch in 2013.

Please read more here and here.

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

Seeing is believing - GE's X-ray Unit moves to Beijing

 

 
[Image courtesy of www.ge.com]

Earlier this week, CBI member GE announced that its Healthcare unit will move the GE X-ray leadership team from the U.S. to a new global headquarters in China.

The shift to Beijing will enable global imaging business GE X-ray to establish a comprehensive in-country business cycle covering engineering, development, sales and service and better support healthcare settings in rural and urban China.

According to Anne LeGrand, Vice President and General Manager of X-ray for GE Healthcare, "Moving GE X-ray's global headquarters to China will help make the business more nimble and responsive while continuing to strengthen our local focus and grow our global footprint."

Rachel Duan, president and CEO of GE Healthcare China, said, "By moving strategic leadership to a new global hub of healthcare innovation, GE X-ray is better positioned to understand and meet the needs of high-growth markets, support the Chinese government's Primary Care Initiative and the 12th Five-Year Plan (2011-2015)."

The potential of the Chinese healthcare market is enormous. According to Yan Qingchun, vice-president of the China National Committee on Aging, "By the end of 2020, China is estimated to have 248 million seniors above 60 years old, who will account for 17.2% of its population."

Please click here to read the full press release by GE and here for further media coverage.  

Chinese President HU's US Visit: a done deal?

 

US-China Business Deals

 

Last week, China and the U.S. agreed on $45 billion in U.S. export deals during Chinese President Hu Jintao’s state visit. Please read more here.

U.S. President Barack Obama highlighted the benefits to the U.S. economy that the deals will bring, stating, “From machinery to software, from aviation to agriculture, these deals will support some 235,000 American jobs—and that includes many manufacturing jobs.”

CBI members Boeing and GE signed prominent deals during the visit. The American aviation giant received final approval from the Chinese government confirming a $19 billion contract to deliver 200 Boeing aircraft to China between 2011 and 2013.

GE signed five agreements with Chinese partners that are forecasted to generate more than $2 billion of revenue over the next 10 years for the U.S. conglomerate. GE’s deals included a joint venture to develop coal gasification technology in China and a letter of intent to help upgrade China’s railway network.

For further coverage please read more here and here.

Rare Earths - significant disruptions to US supply chain by 2012?

 

[Image courtesy of www.seekingalpha.com]

China Direct's Washington DC office recently gauged the mood amongst business and academia at a Rare Earths Event at the Centre for Strategic & International Studies (www.csis.org).

This is what they ascertained:

David Sandalow, Assistant Secretary for Policy and International Affairs, US Dept of Energy, presented highlights from the recent DoE report, Critical Materials Strategy 2010 (executive summary attached below):

• Rare earth material are not rare. They can be found all over the globe. However, China currently represents 95% of production.
• MolyCorp’s Mt. Pass mine in California just got its permits and should start producing in 2 years.
• Short term there is a risk of supply disruption for a few specific elements.
• Long term there will be an increased demand for rare earth materials but there will also be breakthroughs in technology that will allow man-made substitutes to be used.
• Rare earth materials only represent a small fraction of the total cost of many products (esp. Cars). Therefore a price rise in materials will not greatly raise the overall cost of the product. This situation will not send the necessary market signals to investors to increase domestic production.

The second panel consisted of rare earth investment consultants Anchor Group, the Chief Scientist for materials from GE, and the DC Rep of Japan Oil, Gas and Metals National Corporations (JOGMEC).

• China controls the rare earth market for at least the next five years.
• Significant disruptions to the US supply chain of rare earth by 2012 is highly likely. 
• Many end users do not realize that they will soon face a rare earth minerals problem.  
• Man-made ‘material substitution’ could reduce end users' dependence on rare earth by 80%, recycling could add an additional 10%.
• China’s export quotas of rare earth have increased by 40%-70% over the past year.

For an Executive Summary please click below:

Download Critical_Materials_Summary (2)

 

 

 

CBI Member News - growth ahead for 2011

 

 

Update—CBI members expand in China

UK retail giant and CBI member Tesco plans to quadruple revenue in China over the next five years by more than doubling the number of hypermarkets it has in the country to over 200 and opening 50 new Lifespace malls. The expansion will triple the number of Tesco customers in China per week to 12 million. Read more here and here.

(Source: www.telegraph.co.uk. UK Prime Minister David Cameron visits a Tesco store in Beijing during the UK delegation's trip to China in November)

US-based conglomerate and CBI member General Electric (GE) plans to invest more than $2 billion in China through 2012. More than $1.5 billion will be invested in technology and financial services joint ventures with Chinese state-owned companies.  In addition, $500 million of the planned investment will go towards enhancing GE's R&D capabilities in China and establishing new Customer Innovation Centres in six cities. Read more here and here.

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