China Direct

Shell partners with CNOOC to build Huizhou processing plant

 

CBI member, Shell has announced that it has signed a Memorandum of Understanding with China National Offshore Oil Corporation to build its first commercial-scale polycarbonate production plant in the southern Chinese city of Huizhou.

Polycarbonate is a transparent and impact-resistant polymer, widely used to make vehicle headlights and LED spotlights.

The production capacity of the polycarbonate plant is planned to be 260,000 tonnes per annum, Shell announced in a statement made Friday.

The MoU follows an agreement reached by the two energy giants in October 2018, that aims to build more production equipment at their jointly owned petrochemical complex in Huizhou.

Thomas Casparie, Executive Vice-President of Shell’s global chemicals business said, “[Shell] We have an advantaged route to production and are looking at investment in a number of commercial-scale units to serve the growing number of polycarbonate customers.”

At present, Shell and CNOOC has an ethylene production capacity of 2.2 million tonnes.

NDRC: China to phase out single-use plastic by 2022

 

 

Dear CBI members and partners,

For more on the single-use plastic ban announcement please refer to our short summary below:

Download (1) 21 2020 - China ban single use plastic

Huawei launches mobile ecosystem for UK developers

 

CBI member, Huawei launched its investment plan and developer tools at the company’s first ever UK and Ireland Huawei Developer Conference on Wednesday, with the aim being to provide the tools and support to allow local developers to work and design products for the Huawei Mobile Services operating system.

Huawei Mobile Services is Huawei’s dedicated mobile ecosystem, and provides mobile phone users with many essential features, such as Huawei ID, push notifications, payments and other services.

By electing to integrate HMS into their operations, businesses will be able to receive direct access to Huawei’s hardware and artificial intelligence technology.

24 HMS core kits were launched at the conference held in London, and are aimed at providing businesses and developers with access to open source developer kits so that they can develop and integrate apps for the Huawei app Gallery.

Huawei also announced an investment plan of £20 million to help promote UK and Irish developers working with HMS and developing products to join the Huawei App Gallery.

Anson Zhang, managing director of Huawei UK’s Consumer Business Group, said: “Ultimately, [Huawei] envision an all-scenario intelligent consumer experience for the future of Huawei Mobile Services and will provide businesses and developers with the opportunity to reach new audiences, expand and monetise, as they prepare for a fully connected world.”

According to Huawei, HMS already has four million users in the UK alone.

Huawei is the CBI’s strategic partner for the CBI Chinese New Year Dinner. Now in its sixth year, the CBI’s annual flagship event with a focus on China brings together senior professionals from business, politics and media to celebrate the long-standing relationship between the UK and China.

To be held 27^th January 2020 at the Mandarin Oriental Hyde Park Hotel, London. For bookings, please follow the link.

Honda drives record 2019 China Auto growth

 

CBI member, Honda has reported that the company experienced record sales in China in 2019.

Honda, with its two joint venture partners, China-GAC and Dongfeng Motors, sold 1.55 million cars into the country last year, and has announced that it will expand its product line up in China in response.

The company has said that it has made good progress in the development of two electric sport hybrid vehicles for the China market, the Honda VE-1 and the Honda X-NV - both of which will both displayed at the Beijing Motor Show in April - and also has plans to launch a plug-in hybrid system named Sport Hybrid e+ this year. The company is also accelerating the development of its core connectivity system for smart cars, Honda Connect, to provide better intelligence services for Chinese customers.

Honda hopes to increase production in China to 1.37 million, and has announced subsequent plans to double its production capacity in Guangzhou by adding an extra 240,000 units, increasing capacity to 720,000.

Mizuno Yasuhide, COO regional operations, Honda China said: “Honda has always strived to expand the joy of mobility and daily lives for our customers by realising a fun and technological world with our innovative products and services. […] Especially in recent years, we’ve provided products and services of value to our customers with high quality and speed, by collaborating with outstanding resources in China, and leveraging the strengths of Honda.”

US-China Trade Deal - CBI Washington DC & CBI Beijing Insights

Dear CBI Members and Partners,

Kindly find a policy overview below of the recently agreed US-China Trade Deal from both of the CBI's Washington DC and Beijing offices.

Download (1) 16 2020 - Member Briefing_ US - China Trade Tensions

China Direct would like to thank Policy Analysts John Bleed and Joe Cash for their invaluable insights.

For more information or details please contact them via: john.bleed@cbi.org.uk or joseph.cash@cbi.org.uk

Thank you.

BP makes multi-million-pound AI low carbon tech investment in China

 

 

 

CBI member, BP has announced that it has invested £2.7 million in an artificial intelligence technology firm based in Shanghai, pioneering research into low-carbon power, energy storage, the wider digital energy value chain, and improving the energy usage of buildings.

 

BP’s high-tech investment arm, BP Ventures, joined CLP Innovation Ventures and JAFCO Asia in contributing to R&B Technology’s latest funding round. The deal will also see BP Ventures investment manager, Jin Hu, take up a director seat on the board of R&B Technology.

 

R&B’s energy management systems are designed to predict, control and improve a building’s energy use, supporting BP Alternative Energy’s focus on supporting industry’s transition towards low-carbon power.

 

BP Ventures has so far invested more than £400 million in more than 45 companies globally. The deal with R&B Technology marks BP Venture’s second foray into opportunities in advanced mobility in China, following a £7.6 million investment in NIO Capital in 2018.

 

Dev Sanyal, BP Alternative Energy chief executive and executive vice president, regions, said: “Digital technology, smarter consumers and bold decarbonisation targets are together rapidly changing the world's energy systems. BP is determined to help meet society's demands for more energy, delivered in new and cleaner ways. Our investment in R&B, a business developing and deploying innovative technology to improve energy efficiency, is fully aligned with this strategy.”

 

Through its venturing business, BP is leveraging a wide range of instruments in technology-related businesses that have the potential to reduce greenhouse gas emissions in BP’s operations, improve products and services to help customers lower their emissions, and creating new low-carbon businesses.

 

Graham Howes, managing director of BP Ventures, Asia, said: “Improving the energy efficiency of buildings will be crucial for the transition to a lower-carbon world. […] the commercial and industrial buildings sector in China is large and still expanding, so the potential to affect change is significant. R&B’s technology is aimed firmly at this opportunity.”

 

HSBC unveils first international banking centre in Mainland China

 

CBI member, HSBC has announced that it has launched its first International Banking Centre (IBC) in Mainland China. Located in a new sub-branch in Shanghai, the IBC seeks to serve growing demand for international banking services from domestic and overseas customers. HSBC is the first foreign bank in Mainland China to setup a dedicated international banking centre.

Richard Li, Executive Vice President and Head of Retail Banking and Wealth Management, HSBC China commented: “As more of our customers and their families become more internationally-minded and mobile, they are now looking for specialist advice and dedicated support for their international financial needs.

Our IBC will focus on delivering these services through teams that combine extensive experience supporting international customers with the deep knowledge contained in our network of offices in 65 countries and territories. […] Over the past three years, we’ve seen double digit annual growth in the number of HSBC China customers using our international banking services. HSBC also services over 1.5 million overseas Chinese customers around the world.

As the largest international bank in mainland China, the new IBC reflects our continued investment in our capabilities to grow our presence and meet the evolving needs of customers here. We plan to open more IBCs in other areas where we see solid demand for international financial services.”

To read the press release in full, and to see the full range of services that HSBC’s International Banking Centre will offer, please follow the link.

CBI China - Market Access - A Year in Review

 

Dear CBI Members & Partners,

Please find below our review of CBI member activity in China for 2019 and a brief summary of key sectors that are well positioned to make 2020 a positive year for UK-China relations. 

Download (12) 12 2019 - Market Access - Year in Review_

With very best wishes for the festive season and 2020.

Kind regards,

CHINA DIRECT

British Airways flying to more Chinese destinations with China Southern

 

CBI member, British Airways has announced that it has expanded its code-sharing deal with China Southern Airlines. The pair, which have had a code-sharing deal since 2017, will now code-share on all direct flights operated between London and the Chinese cities of Beijing, Shanghai, Guangzhou, Sanya, Wuhan and Zhengzhou.

The two carriers said at a press conference on Tuesday that their new business agreement would enable them to cooperate more on scheduling and pricing, open up more destinations between the two countries and develop a combined route network from Beijing’s new airport.

Alex Cruz, chairman and CEO of British Airways, said: “We are delighted to announce this joint business which will bring the UK and China closer together by providing British Airways and China Southern Airlines customers with a range of benefits. […]The agreement reinforces [British Airways’] commitment to boost tourism and business travel between the two countries and we look forward to strengthening the relationship further.”

JP Morgan announces China expansion

 

CBI member, JP Morgan has announced that it has competed the preparatory work to take full control of its securities joint venture in China, and while waiting for final permission from the China Securities Regulatory Commission to officially launch the business, has taken on additional staff to strengthen its business activities in investment banking, research and securities sales.

Mark Leung, CEO of JP Morgan China, said “We think this is the best time for JP Morgan to [become] more deeply involved and invest much more broadly across our product and service platforms. […] JP Morgan welcomes the opportunity presented by China’s new regulation, [which allows for 100% foreign ownership] and the bank will fully leverage the strength in its global network and resources to operate its onshore and offshore China business. […] While it depends on the speed of opening up, I think the conditions are more mature now. […] We are working actively with local regulators to share our experience in enhancing derivatives and securities financing, to help speed up foreign participation into the local market and to provide onshore investors with the best derivatives and securities financing capability that JP Morgan has to offer.”

JP Morgan is also planning to invest further in the growth of the asset management arm of its China business. The bank’s asset management business recently formed a strategic partnership with China Merchants Bank, under which JP Morgan will serve as the preferred product provider for China Merchant Bank’s asset management subsidiary, offering a greater number of offshore and onshore products to Chinese clients.