China Direct

European Chamber of Commerce in China publishes Business Confidence Survey

 

[Image courtesy of www.europeanchamber.com]

Earlier this week the European Chamber of Commerce in China (EUCCC) released its European Business in China Business Confidence Survey (BCS) 2012.

Conducted by the EUCCC in cooperation with Roland Berger Strategy Consultants, the survey provides an annual snapshot of European companies' successes and challenges in China. 557 respondents completed the survey this year.

Please click here to access the full report.

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

 

 

 

 

 

 

 

China Economic Focus - March 2012 Summary

 

Dear CBI Members, kindly find the latest economic summary from the British Embassy attached with highlights below.

China Direct would like to thank Henry Bell and Huang Zhenqian for sharing this with our members.

China Economic Focus Summary March 2012

• Premier Wen Jiabao set out a yearly growth target of 7.5 percent at the National People’s Congress, the lowest target since 2005. But most analysts believe that the growth will remain above 8 percent, consistent with a 'soft landing'.
• Macroeconomic data for the first two months of 2012 has been mixed, but the distortions caused by Chinese New Year make it hard to draw robust conclusions.
• Industrial production growth declined to 11.4 percent in January and February combined (on a year earlier), reaching a 29 month low. Fixed asset investment growth has slowed since mid 2011, reaching 21.5 percent in January and February. Growth of retail sales, a proxy for consumption, dropped to 14.7 percent in the first two months, compared with 18.1 percent in December. On the other hand, at 53.1, the official purchasing manager’s index was significantly stronger than expected.
• Inflation fell to 3.2 percent, well below the official target for 2012 of 4 percent. The slowdown was mainly driven by the food prices falling after the Chinese New Year. With inflation now under control and most economic data weaker than expected, the authorities have scope and incentive to introduce policies to support growth. Further cuts to the required reserve ratio are expected.
• Property prices remain flat or on downward trend. But the price falls so far have been moderate and the central authorities remain determined to bring prices down to 'a more reasonable level'.
• Both exports and imports rebounded in February but much of this can be explained by the effect of Chinese New Year in January. Overall, the trade picture in 2012 so far has been weak.
• The RMB remained stable in March. The authorities have recently indicated an appetite for currency reform. In the first instance, reform is likely to entail a widening of the daily trading band.
• There were not many surprises from the annual National People’s Congress meeting in March. The authorities emphasised expanding domestic (consumption) demand but there was little discussion of the structural reforms necessary to achieve this.

Download CEF-Mar2012

 

 

   

National People's Congress 2012 - an analysis

 

[Image courtesy of www.apcoworldwide.com/china]

China Direct would like to thank CBI member APCO for kindly providing the following analysis of the recently convened annual National People's Congress in Beijing.

For more information and analysis please download below.

Download NPC_2012

Thank you.

11th National People's Congress (NPC) Policy Highlights

[Image courtesy of www.news.cn] 

On Monday, China opened the Fifth Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing.

Nearly 3,000 NPC deputies from across the country attended the opening meeting together with top Party and state leaders.

Chinese Premier Wen Jiabao delivered a government work report at the opening meeting covering major targets for 2012, fiscal and monetary policies, price control, agriculture, economic restructuring, nuclear power, marine development, people's wellbeing, spending on education, cultural development, etc.

Highlights included:

• Major targets set for 2012 included GDP growth of 7.5%, the creation of nine million new jobs in towns
and cities, growth of the volume of total exports and imports by about 10%, etc.

• The broad money supply is projected to increase by 14%.

• RMB 1.23 trillion will be allocated for agriculture, rural areas, and farmers, RMB 186.8 billion more
than last year.

• China will formulate and implement a strategy for marine development.

• Spending on education will account for 4% of GDP.

• The government will complete five million units of low-income housing and start construction on more
than seven million units.

Please click here to read further highlights of the government work report and here for additional media coverage.

World Bank and China's State Council issue China 2030 Development Strategy

 Earlier this week, the World Bank and the Development Research Centre of China's State Council issued a joint research report titled "China 2030: Building a Modern, Harmonious, and Creative High-Income Society".

The report lays out the case for a new development strategy for China to rebalance the role of government and market, private sector and society, to reach the goal of a high income country by 2030.

Please click here to read the full press release by the World Bank and related summaries.

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.

China's Foreign Investment Catalogue - 2012 update for business

On December 24, 2011, China’s Ministry of Commerce and National Development and Reform Commission released the Catalogue for Guiding Foreign Investment (2011 Revision) (“Catalogue”), the nation’s principal document for regulating foreign investment into China. 

As expected, the final Catalogue promotes investment in the strategic emerging industries identified in China’s 12th Five-Year Plan (“12th FYP”) and removes a number of investment barriers previously applicable to foreign investors. The catalogue took effect on January 30, 2012.

China Direct is grateful to Covington & Burling LLP for kindly sharing their summary with CBI members.

 

2012 China Regional Cities Programme Q1

 

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

UK Trade & Investment (UKTI) recently released the dates for the next phase of its Regional Cities Programme in China.

The schedule of the missions is as follows: Zhengzhou and Wuhan (20-22 February 2012), Nantong and Yancheng (27-29 February 2012), Kunming (23-24 February 2012), Chongqing (05-06 March 2012), Hangzhou and Ningbo (07-09 March 2012), and Foshan and Shunde (28-29 March 2012).

These missions will offer an excellent introduction to these cities and the opportunities that they offer.

Participants in the missions will enjoy:

     • Access to high-level officials
     • Business workshops
     • Knowledge about specific opportunities

Please click here for full details on the mission to Nantong and Yancheng and here for the mission to Hangzhou and Ningbo.

CBI Member RICS seeking N Asia Regional Director

 

[Image courtesy of www.rics.org]

CBI member the Royal Institution of Chartered Surveyors (www.rics.org) is seeking a North Asia Regional Director.

Kindly refer to job description, details and contact information below.

Thank you.

China Direct

 

 

North Asia Regional Director – Royal Institution of Chartered Surveyors

Beijing, Shanghai or Hong Kong

 

The RICS are seeking a Regional Director to be the face of the RICS brand in North Asia; responsible for developing RICS brand as the benchmark Chartered professional qualification for professionals in land, property and construction in the region, and establish the RICS as the leading professional body for the real estate and construction sector, representing public interest.

The role will require the Director to work on achieving recognition of RICS standards by key stakeholders and institutionalization of these standards across the industry by making effective representation to the Government and the industry at large, establishing RICS as the thought leader on key policy issues representing public interest.

 

Please apply with your CV to alexandravere@ruyiconsulting.com

T: +852 2248 3015