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

 

 

 

 

 

 

 

CBI Member Success Stories March 2012

 

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

A number of CBI members were busy raising their profile in China in March, engaging in many exciting activities across a wide range of industries.

Members covered include: 

• 3i
• ABB
• Atkins
• Bentley
• Boeing
• BNY Mellon
• BP
• Burson-Marsteller
• Clifford Chance
• Diageo
• Freshfields Bruckhaus Deringer
• Fuji Xerox
• GKN
• HSBC
• INEOS
• InterContinental Hotels Group (IHG)
• Jaguar Land Rover (JLR)
• Jones Lang LaSalle
• J.P. Morgan
• Nike
• Pearson
• Penguin
• Pinsent Masons
• Procter & Gamble
• Research in Motion (RIM)
• Shell
• Siemens
• Simmons & Simmons
• Thales
• Unilever
• University of Nottingham
• Willis

Please click here to access our latest briefing, which highlights the recent successes of 32 CBI members.

The briefing can also be accessed below:

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

CBI member China success stories for Jan 2012

 

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

Dear CBI members,

Please find our latest member successes for January 2012. We were aware of more than 16 individual company success stories and are always keen to hear of more wherever possible.

Thank you as always for sharing your success with the CBI in China.

China Direct

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

 

UK Company Everything Everywhere signs China Telecom deal in Europe

 

[Image courtesy of www.everythingeverywhere.com]

 

CBI member Everything Everywhere, a leading communications company in the UK, recently announced that China Telecom (Europe) will launch a mobile virtual network operator (MVNO) on its network.

The partnership marks the first time that a Chinese telecom operator has launched MVNO services outside China and demonstrates Everything Everywhere's commitment to expanding opportunities for new MVNOs across the UK.

China Telecom (Europe) selected Everything Everywhere and Transatel, Everything Everywhere's mobile virtual network aggregator (MVNA), based on the strength of Everything Everywhere's shared T-Mobile and Orange network, which offers the biggest 3G network and widest 3G coverage in the UK.

Scheduled to launch in the first quarter this year, China Telecom's MVNO services will target Chinese residents and businesses in the UK as well as visitors to the country. There are more than 600,000 Chinese residents in the UK and approximately the same number of Chinese visitors every year. The number of Chinese visitors to the UK is expected to increase for the 2012 London Olympics Games.

Marc Overton, Vice President of Wholesale and M2M at Everything Everywhere, said, "We're delighted that Everything Everywhere has been selected by China Telecom (Europe) as its MVNO partner in the UK. Everything Everywhere offers MVNO customers the biggest 3G network and widest 3G coverage in the UK, making us the partner of choice for MVNOs. We look forward to growing our partnership with China Telecom (Europe) in the future."

Yan Ou, Managing Director of China Telecom (Europe), said, "Entering the UK mobile market is a strategic move for China Telecom (Europe). We selected Everything Everywhere based on the strength of its network, and Transatel's proven track record of getting MVNOs up and running quickly and efficiently. We are keen to launch the service in the UK as soon as possible as there is a real gap in the market for the provision of tailored mobile services and competitive tariffs aimed at the growing Chinese population in the UK."

Please click here to read the full press release by Everything Everywhere and here and here for additional media coverage.

CBI Member China Successes in Dec 2011

 

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

Kindly find attached more than 19 CBI member success stories that China Direct collected in December 2011.

Ranging from education to engineering and airports to AstraZeneca this snapshot of the best of CBI business shows just how commercially successful our membership has been throughout 2011.

China Direct looks forward to sharing even more success stories from its members in the fast approaching Year of the Dragon.

 Please download the full list of CBI successes below:

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

Brand China - UK Company WPP launches key report on Chinese brands

 

[Image courtesy of www.wpp.com]

Commissioned by CBI member WPP, the annual BrandZ Top 50 Most Valuable Chinese Brands ranking was released earlier this week by Millward Brown.

Combining both financial data and consumer opinion gathered from interviews with over 35,000 Chinese consumers, the BrandZ China Top 50 is one of the most robust rankings of Chinese brands available.

Key trends emerging from the BrandZ China Top 50 study include:

     • China's shift from maker to innovator
     • The phenomenal rise of online and FMCG brands
     • Rising incomes and a rapidly expanding middle class
     • Consumers becoming increasingly brand-savvy

In 2011, the value of the Top 50 Chinese brands has grown by 16% to reach $325 billion, representing more than 5% of the Chinese economy. The top five brands in this year's ranking are as follows: China Mobile, ICBC, Construction Bank of China, Bank of China, and Agricultural Bank of China.

Please click here to read the full press release by WPP's Millward Brown and here to access the full report.

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.  

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.

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.

Huawei announces new global cyber security chief

 

 
[Image courtesy of www.huawei.com]

Leading global information and communications technology (ICT) solutions provider and CBI member Huawei announced the appointment of John Suffolk as its Global Cyber Security Officer (GCSO) earlier this week.

Mr. Suffolk previously served as the Chief Information Officer of the UK Government, overseeing government IT projects for nearly five years.

Assuming his new position on 01 October, Mr. Suffolk will be based at Huawei's headquarters in Shenzhen in southern China and will report directly to Huawei's CEO. He will hold responsibility for developing Huawei's cyber security assurance strategy and system and managing and supervising its implementation. The system will be adopted globally by all business groups and departments, including R&D, supply chain, marketing and sales, project delivery and technical service.

Commenting on Mr. Suffolk's appointment, Ken Hu, Deputy Chairman of the Board and Chairman of Huawei's Global Cyber Security Committee, said, "We are delighted to welcome John Suffolk to Huawei. With convergence of the ICT industry, Huawei is expanding its business beyond its traditional operator market to meet the communications need of both enterprises and consumers.

Industry convergence will also expand the complexity of cyber security challenges, and Huawei is fully committed to addressing the emerging challenges of tomorrow together with our customers. Mr. Suffolk has a wealth of experience and expertise in dealing with cyber security issues with deep insights into emerging global cyber security trends.

This will enhance Huawei’s capabilities in addressing security challenges, and further support our proven track record and reputation among customers in an increasingly complex environment."

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

China Direct would like to thank Ben Cooper of the CBI's Beijing office for preparing this information.