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

 

 

 

 

 

 

 

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.

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.

UK CBI Member Notts University wins green funding from Ningbo City

 

[Image courtesy of www.nottingham.ac.uk]

CBI member The University of Nottingham's Ningbo campus in China recently received nine million RMB (about £1 million) in funding from the City of Ningbo for an ambitious project to produce at least 25 manufacturing research engineers and 25 patents for new technologies over the next five years.

The funding represents the highest amount ever awarded to The University of Nottingham Ningbo China (UNNC). The University's innovation team will work with at least 50 companies in Ningbo to invent low-carbon technologies. Much of the team's focus will be on the automotive industry in Ningbo.

Professor Sam Shen, Registrar at UNNC, said, "This project is vitally important for the economy of Ningbo and China in general. The government has prioritised green technologies in its latest five-year plan.

"The city of Ningbo, which is a key industrial area in China, wants to take the lead in scientific and technological innovation that helps deliver on national goals to reduce carbon emissions and at the same time generate further economic growth.

"The project's funders and leaders also have international aspirations. Our innovation team will play an important role in developing scientists in China who can create world-leading technologies and make valuable contributions to international scholarly research."

Professor Nabil Gindy, UNNC's Vice-Provost for Research and its Graduate School dean, said, "This project isn't just about research; it is about talent-building. The concept is to create a number of researchers with critical mass to work in areas that the Chinese government considers important. The emphasis will be on nurturing young scientists."

Professor Gindy also noted, "We will be working closely with businesses to look at how companies can make money, and quite possibly even more money than ever, but reduce the environmental impact of what they do.

"This project is about job creation and improved productivity as much as it is about advances in science and technology."

Please click here to read the full press release by The University of Nottingham.

 

University of Nottingham launches Sino-UK Geospatial Engineering Centre in Beijing

 

 

[Image courtesy of www.nottingham.ac.uk]

CBI member The University of Nottingham and the Chinese Academy of Survey and Mapping (CASM), the academic arm of China's National Administration for Survey, Mapping, and Geoinformation (NASG), launched the Sino-UK Geospatial Engineering Centre in Beijing.

With its main site located at the China Surveying and Mapping Innovation Base in Beijing, the centre will develop geospatial information to solve key scientific issues for both countries. The centre will also have a presence at the Nottingham Geospatial Building in the UK.

The centre will promote innovation and technology transfer, leadership training, and staff and student exchange. In addition, it will explore funding opportunities and new project work, and act as a global incubation centre to realise beneficial combinations of R&D, production, and commercialisation.

Professor Chris Rudd, Pro-Vice-Chancellor for Business Engagement and Knowledge Transfer at The University of Nottingham, said, "The University's relationship with the Chinese Academy of Survey and Mapping (CASM) and the recently re-named National Administration for Survey, Mapping, and Geoinformation (NASG) dates back eight years.

"We have a shared ambition—to create a Sino-UK centre of excellence that will accelerate the delivery of our vision. It represents the collaboration between China and UK in areas of leading research and development. We aim to benefit both parties and strengthen the ties between UK and China's high technology industries."

Please click here to read the full press release by The University of Nottingham.

Chinese investment into UK infrastructure " a win win" solution for all

 

 

China Investment Corporation (CIC), the country's main sovereign wealth fund, is keen to invest in the infrastructure of developed countries, particularly the UK.

Lou Jiwei, chairman and chief executive officer of CIC, recently wrote an article in the Financial Times in which he emphasised the interest of CIC in participating in the upgrading of the UK's infrastructure.

According to Mr. Lou, CIC, "is keen to team up with fund managers or participate in public-private-partnerships (PPP) in the UK infrastructure sector as an equity investor." 

Mr. Lou went on to note that, "CIC believes that such an investment, guided by commercial principles, offers the chance of a 'win-win' solution for all."

The UK government is increasingly looking to upgrade the country's infrastructure in a bid to boost economic growth, and Chinese investment could play an important role in helping achieve such aims.  In October, UK Prime Minister David Cameron pledged an "all-out" mission to help launch infrastructure projects.

Please read more here and here.  

Celebrating UK and international CBI member success in China: Nov 2011

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

Dear China Direct readers, 

Kindly find more than 25 examples of UK and international CBI member companies that are celebrating business success in China in November 2011.

Download CBI China, Celebrating member success in China, November 2011

This will mark the 300th entry since China Direct went live back in June 2009.

Please let the CBI team in Beijing (ben.cooper@cbi.org.uk tel: 00 86 10 85253100) know if your company would like to share your China business news with the CBI's international member network.

Many thanks.

CBI member Lafarge cements its reputation in Chongqing

 
[Image courtesy of www.lafarge.com]

CBI member Lafarge recently opened its first Sustainable Construction Lab in Chongqing in southwestern China.

Located at Lafarge Shui On's Nanshan plant in Chongqing, the new lab develops new and advanced construction materials products and solutions for its customers in China. The 1,000 square metre facility is an extension of Lafarge's R&D Centre in Lyon and the first of its kind opened worldwide in the Lafarge Group.

Lafarge also signed an alliance agreement with Chongqing University which will focus on developing innovative construction materials and final products. The new partnership will include training and research programmes with PhD students.

Lafarge devotes more than €150 million each year to R&D of technology and innovation in products, systems, and industrial processes, with more than 60% of this budget dedicated to sustainable construction.

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

UK luxury auto company Bentley secures UK R&D grant - for China growth

[Image courtesy of www.bentleymotors.com]

CBI member Bentley recently secured a conditional grant allocation of £3 million from the UK Department for Business Regional Growth Fund (RGF), marking the second time this year that the British luxury automaker was successful in securing funding from the RGF.

The new grant funding will help support the development of a new powertrain application, which will enable Bentley to exploit new export markets such as China.

Bentley undertakes all its activities from design and engineering to production, sales, and customer service at its historic Crewe site in Cheshire in the UK. Bentley is the third largest R&D investor in the UK's automotive sector, and ranks in the top 20 of all companies investing in R&D in the UK.

Commenting on the new grant, Wolfgang Dürheimer, Bentley Chairman and Chief Executive, said, "This is a real boost for Bentley which has one of the most highly skilled automotive workforces in the country and, uniquely, has now been awarded two RGF grants. It shows that the Government recognises the importance of Bentley and the contribution we make to high value manufacturing and UK exports.

"Our customers expect the very best in terms of exclusivity, technology, quality and engineering excellence which requires significant ongoing investment in R&D. This is why we retain such a strong engineering capability exclusively for Bentley here in the UK. This grant will help safeguard those operations as we look to develop new powertrains which appeal to new markets and new customers."

With customers in emerging markets such as China increasingly showing interest in the new two-door Continental GT and GTC, the RGF grant will help Bentley develop new powertrains for these future markets.

Bentley's global sales to September 2011 increased 30% compared to the same period one year earlier, with 4,759 vehicles delivered to customers. In China, Bentley's sales surged 84%, and the number of vehicles sold exceeded 1,000 units for the first time ever. China is the second biggest global market for the British automaker.

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