China Direct

UK Export Plan published by CBI and Ernst & Young

 

[Image courtesy of www.cbi.org.uk]

The CBI and Ernst & Young have published a major new report titled "Winning overseas: boosting business export performance."

According to the report, introducing a credible new exports strategy, which focuses on the right products and services, concentrates efforts on high-growth markets, and breaks down domestic barriers, could give the UK economy a £20 billion lift by 2020.

The report urges the UK Government to set out a clear exports strategy with ambitious, achievable performance targets. The Government should aim to increase net exports from -2.4% in 2010 to 2.5% by 2016, with exports rising from 29% of GDP in 2010 to 36% by 2016. Small and medium-sized companies (SMEs) have some of the most potential to grow so the UK should aim to match the EU average of having one in four SMEs exporting by 2020, compared with only one in five currently.

John Cridland, CBI Director-General, said, "The UK has a proud history as a great trading nation, but in recent years our performance has been lacklustre. Exports success will be one of the key drivers of growth, but for too long we have been over-dependent on advanced economies for our trade.

"The continued crisis in the Eurozone underlines just how important it is for the UK to diversify its export efforts to high-growth countries. Given that we're already playing catch-up with many of our competitors, we must act now or never to target high-growth economies, leapfrog the competition, and deliver our growth potential.

"We need to capitalise on the booming success of the BRIC countries, and look beyond the curve to future high-growth markets such as Indonesia, Mexico, and Turkey. The new middle classes in emerging economies will have needs that our niche, high-end producers are more than able to fill."

Steve Varley, Ernst & Young UK & Ireland Managing Partner, said, "Our inability to break into and succeed in high-growth markets is due to a historic mismatch between the goods and services we currently sell and those demanded by high-growth economies.

"Demand in the last decade from the BRICs has been for manufacturing goods, including machinery, tools and equipment, but in many cases UK companies haven't been strongly positioned enough to compete globally to win this business.

"With the changing demographics in high growth markets, including the rise in the middle classes and consumer spending levels, now is the time for the UK to seize the opportunity to build on its comparative advantage in sectors such as construction services, communication services, electrical goods, optical and high-tech goods, and financial services.

"By tailoring products to specific markets, supported by strong high-quality business intelligence, guiding them every step of the way, businesses can enhance their export performance and boost the UK economy."

The CBI/Ernst & Young report sets out a joint action plan for achieving exports success. It urges the Government to:

     • Introduce an 'export enabling test' for all new legislation
     • Increase the availability of export credit by diversifying the ways in which firms, especially SMEs can 
       access ECGD products
     • Ensure greater commercial focus in UKTI by introducing 50% business appointments on its board
     • Use skills policy to help businesses remain innovative and internationally competitive, by promoting 
       the study of STEM and language subjects at school
     • Resolve the need for more hub and regional airport capacity
     • Introduce a single portal www.exports.gov.uk through which businesses can access all government 
       export services

And commits the CBI to:

     • Establish an export finance taskforce to explore ways of removing barriers to finance, reducing risk 
       and the viability of introducing an export tax credit to incentivise exploratory export activity, which will 
       report in 2012
     • Help develop regional exports clubs to share knowledge and experience
     • Celebrate the exports success of its members
     • Benchmark the UK's commercial diplomacy offering against our main competitors
     • Help shape future trade missions to maximise business outcomes

Please click here to read the full version of the CBI/Ernst & Young report and here to read the summary version.

Please click here to read the full press release by the CBI and Ernst & Young.

UK CBI Annual Conference 21 Nov 2011 - what you need to know

 

[Image courtesy of www.cbi.org.uk]

CBI Annual Conference 2011

The CBI Annual Conference 2011 will be held on 21 November in London at the Grosvenor House Hotel. Our focus this year will be 'Accelerating Growth' — breaking and entering new markets.

The CBI has lined up an impressive array of international business leaders and politicians who will participate in a stimulating blend of keynote addresses, panel debates, and answer sessions. Guests will have the opportunity to learn, ask questions, and network.

Speakers will include John Cridland (Director-General, CBI), Sir Roger Carr (President, CBI), Lord Green of Hurstpierpoint (Minister of State for Trade and Investment), Paul Freeston (UK Chief Executive, Apetito), Emma Harrison (Founder and Chairman, A4e), Laura Kuenssberg (Business Editor, ITN), Gary Lydiate (CEO, Kilfrost Group), Sergio Marchionne (CEO Fiat & CEO of Fiat SpA and Chairman & CEO of Chrysler Group), Charlie Mayfield (Chairman, John Lewis Partnership), Jim O’Neill (Chairman, Goldman Sachs Asset Management), Ali Parsa (Managing Partner, Circle Health), Jeff Randall (Presenter, Sky News), and Steve Varley (UK & Ireland Managing Partner, Ernst & Young).

Harvey Nash and Ernst & Young are the headline sponsors of the conference and dinner while Barclays Corporate, E.ON, and Jones Lang LaSalle are the principal sponsors.

Please click here for more information.

CBI Director General upbeat about UK-China trade prospects

[Image courtesy of www.cbi.org.uk]

CBI Director General John Cridland CBE was interviewed by the Global Times during his recent visit to China.

Despite the challenging economic environment there are huge opportunities for UK business to increase its trade with China.

John Cridland shares his thoughts on UK business in China, opportunities for Chinese Foreign Direct Investment (FDI) to the UK and highlights the outstanding success of CBI members Intercontinental Hotels Group and Jaguar Land Rover in China.

Please click here for the interview, published today in the Global Times newspaper.

 

 

   

CBI Director General Visits China 10-12 Oct 2011

 

 

CBI Director General, John Cridland CBE, is visting China from 10-12 October. He will meet Chinese government officials in Beijing and engage with member companies throughout his trip. In addition to calls in Beijing he will travel to Shanghai, Shenzhen and Hong Kong.

If you would like to learn more about Mr. Cridland's trip please contact the CBI's Beijing office directly via: ben.cooper@cbi.org.uk

   

CBI's Climate Change Tracker - UK government 'greenest' ever?

 

 
Yesterday, the CBI launched its latest climate change tracker, which is an interactive tool developed by the CBI in consultation with CBI members that provides business commentary on green progress made by the UK government and business community. 

According to the latest tracker, the UK government is at risk of failing to achieve emission reduction targets despite its ambition.

CBI Chief Policy Director Katja Hall said, "One year on from pledging to be the 'greenest government ever', the coalition has still not delivered the policy landscape needed to ensure we meet tough emissions targets."

The government has made progress in a number of key areas, including providing greater clarity on Climate Change Agreements and funding for the Green Investment Bank.

However, investor confidence remains low, and the UK has fallen from 5th place to 13th in a 2010 global ranking of low-carbon investment conducted by the Pew Environment Group.

The tracker shows that only one of the thirteen indicators is on track. Progress is lagging on the process of decarbonising buildings, transport and industry.

The CBI is calling on the UK Government to take a number of actions in the next six months, including:

     • Publish the Electricity Market Reform white paper by July, providing greater clarity on the transitional 
       arrangements for renewable energy
     • Finalise the nuclear Generic Design Assessment and designate the energy National Policy 
       Statements as soon as is practical
     • Incentivise businesses to invest in energy efficient measures by taking action to simplify the Carbon 
       Reduction Commitment (CRC) and wider issues of policy overlap
     • Enact the Localism Bill by the end of 2011 and include provisions to streamline the fast-track 
       process for major infrastructure and ensure that crucial sub-national infrastructure can be delivered

Please click here to read the CBI's full press release and list of recommendations and here to access the interactive climate change tracker.

China Direct would like to thank Ben Cooper and Alex Fergusson at the CBI's Beijing and London offices for this information.

Making the UK 'the best place to invest' - work in progress?

 

 
Today, the CBI released its report, "Making the UK the best place to invest," which calls on the government to bolster the UK’s attractiveness to investors, warning that without action, investment and jobs will be lost to other countries. 

Foreign investment in the UK fell significantly during the global recession, dropping from $186.4 billion in 2007 to $45.7 billion in 2009, and the UK’s reputation as a good place to invest is under threat.

In its report, the CBI has identified the main drivers for and barriers to investment, based on research from 400 companies, including interviews with senior business leaders.

Key drivers of investment in the UK include:
     • A well-developed innovation ecosystem and science base
     • The English language
     • Cultural aspects and quality of life
     • Strong rule of law

Key barriers to investment in the UK include:
     • The lack of long-term predictability and certainty
     • The 50% personal tax rate
     • Skills shortages in the UK
     • The impact of regulation, dismissal periods and strike activity

Please find the Executive Summary below:

1. Download CBI UK Best Place Invest Summary April 2011

2. Our Full Report is here  and today's Press Release is here

China Direct would like to thank CBI Beijing Policy Analyst Ben Cooper for preparing this note.

New CBI Vice President announced - Jan 2011

 

 
China Direct is delighted to announce that Roger Carr has been appointed as the CBI's Vice President from 01 January 2011. He will succeed our current President, Helen Alexander, in June 2011.

A Press Release can be obtained below:

Download CBI VP announcement 09.12.10

Recent UK media commentary on Mr. Carr's appointment:

1. www.guardian.co.uk/business/2010/dec/09/cbi-centrica

2. http://blogs.news.sky.com/kleinman/Post:0558470d-b1db-4b88-880e-4ccbeb8c378f

 

*STOP PRESS* New CBI Director General appointed

 

China Direct is delighted to announce that John Cridland, the CBI's Deputy Director General, will be the new Director General of the CBI from 01 Feb 2011.

For a full Press Release and further details please read below:

 Download CBI ANNOUNCES NEW DIRECTOR