China Direct

Gregor Craig named Chair of CBI Construction Council

 

The CBI has appointed Gregor Craig, President and CEO of Skanska UK, as Chair of the CBI Construction Council.

Gregor succeeds Sir James Wates CBE, Chairman of Wates Group, who has been Chair of the Construction Council since September 2017.

Gregor has been President and CEO of Skanska UK since May 2017. He joined the business in 2003 and has been a member of its Executive Management Team since 2015.

Gregor said: “It’s a great privilege to be taking on this role, especially at this critical time for the construction industry. We are heading towards a new relationship with the European Union and, although the pandemic has had a well-documented impact, there is also a lot to learn about what the industry can achieve when it is really focused. We need to take the best of that learning and make sure it is part of the template for the future of construction.”

Sir James has steered the CBI's efforts for the construction sector at an unprecedented time, which has included the collapse of the industry’s second largest construction contractor Carillion, the UK leaving the EU and the current coronavirus pandemic.

Despite the challenging period, Sir James and the CBI have worked to ensure the construction industry is a focal point for government spending during the coronavirus pandemic, put the sector front and centre on new UK immigration proposals, and driven forward the CBI's landmark report on financial sustainability in UK construction, Fine Margins.

Sir James said: “It has been my privilege to serve as Chairman of the CBI Construction Council for the past three years. Construction is well known for being a fragmented industry, but we have worked hard to ensure the council is clear on its remit and actively brings together perspectives from across this diverse and amazing sector that is so critical to the UK economy. I am confident that Greg will continue this good work, which is now more important than ever, as we work with the government and the entire business community to deliver what the UK needs to recover from the economic crisis brought on by the pandemic.”

CBI President, Lord Karan Bilimoria, CBE, DL said: "We are delighted that Gregor has accepted the Chair position of the CBI Construction Council. Our standing committees are critical to shaping the CBI’s work on the most important issues for business and the coming years will be absolutely vital for the prosperity of UK plc.

“In Gregor, the Construction Council has another highly-respected business leader who not only cares passionately about the future of the industry, but the professionalism and wellbeing of UK construction workers, as his own company’s commitment to mental health and diversity shows. Skanska is also a market leader in sustainable construction, which will be a defining challenge facing UK construction in the coming decades.”

CBI Director-General Carolyn Fairbairn said: "I would like to thank Sir James Wates for his exemplary leadership of the Construction Council over the last three years. Sir James has worked tirelessly on behalf of this vital sector to the UK economy and we have been hugely grateful for his wise counsel and contribution."

Gregor will formally take over as Chair from 1 November 2020 and remain in post until December 2023. As Chair of the Construction Council, he will sit on the CBI Chairs’ Committee responsible for setting and steering CBI policy decisions.

Ends

 

Photograph: Gregor Craig, President and CEO of Skanska UK, and new Chair of the CBI Construction Council.

Notes on Construction Council: The Construction Council brings together senior leaders from UK construction businesses every quarter to discuss and steer the CBI’s policy work for the sector. Focused on influencing macro industry issues, the Construction Council: promotes the role of the construction sector as an economic enabler; helps government create an environment where the sector can thrive; and supports new and better ways of doing business in UK construction.

Notes on Chairs’ Committee: CBI Chairs’ Committee is the top policy committee at the CBI, responsible for setting and steering the CBI policy decisions. This committee is comprised of all the chairs from the CBI Regional and National Councils and sector focused Standing Committees.

Notes to editor: Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.

Media Contact:

CBI Press Office is available 24 hours a day on 0207 395 8239, or email: [email protected]. Follow the CBI (@CBItweets) on Twitter.

UK & Japan agree historic free trade agreement

 

UK and Japan agree historic free trade agreement

The UK has secured a free trade agreement with Japan, which is the UK’s first major trade deal as an independent trading nation and will increase trade with Japan by an estimated £15.2 billion.

The UK-Japan Comprehensive Economic Partnership Agreement was agreed in principle by International Trade Secretary Liz Truss and Japan’s Foreign Minister Motegi Toshimitsu

on a video call this morning (Friday 11 September).   

The deal is tailored to the UK economy and secures additional benefits beyond the EU-Japan trade deal, giving UK companies exporting to Japan a competitive advantage in a number of areas. It will help to create jobs and drive economic growth throughout the whole of the UK.   

The deal is also an important step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This will give UK businesses a gateway to the Asia-Pacific region and help to increase the resilience and diversity of our supply chains. 

UK businesses will benefit from tariff-free trade on 99% of exports to Japan. Government analysis shows that a deal with Japan will deliver a £1.5 billion boost to the UK economy and increasing UK workers’ wages by £800 million in the long run.  

UK manufacturers, food and drink producers and the tech sector are all set to benefit from the measures in the UK-Japan deal, which include:  

• Cutting-edge digital & data provisions that go far beyond the EU-Japan deal. These will enable free flow of data whilst maintaining high standards of protection for personal data. We have also committed to uphold the principles of net neutrality, as well as introducing a ban on data localisation, which will prevent British businesses from having the extra cost of setting up servers in Japan. This will help UK fintech firms operating in Japan - like Revolut and Transferwise - to innovate and grow.  
• Improved market access for UK financial services – including greater transparency and streamlined application processes for UK firms seeking licences to operate in Japan. The deal creates an annual dialogue between Her Majesty's Treasury, UK financial regulators, and the Japanese FSA that will explore ways to further reduce regulatory friction - something that would be impossible were the UK still in the EU. Financial services are our biggest export to Japan, accounting for 28% of all UK exports.
•  Tariff free access for more UK goods – new and more liberal Rules of Origin will allow producers of coats, knitwear and biscuits to source inputs from around the world for their exports to Japan – making it easier and cheaper for them to sell to the Japanese market.
• New protection for more iconic UK goods – increasing geographical indications (GIs) from just seven under the terms of the EU-Japan deal to potentially over 70 under our new agreement, covering goods including English sparkling wine, Yorkshire Wensleydale and Welsh lamb. This would lead to improved recognition of key UK brands in the Japanese market.
• New protections for UK creative industries – British businesses can now be confident that their brands and innovations will be protected. We have gone beyond the EU on provisions that tackle online infringement of IP rights, such as film and music piracy.  
• Improved mobility for business people – securing more flexibility for Japanese and British companies to move talent into each country, covering a range of UK skilled workers to enter Japan, from computer services to construction. This includes commitments that go beyond the EU-Japan deal, for investors, spouses and dependents, and a wider range of intra-company transfers. Requirements for visas will be clear, transparent, and with an aim that they be processed in 90 days. A worker transferring from their UK HQ to the Tokyo office will be able to bring their spouse and dependents and stay for up to five years.  
• Supporting UK car and rail manufacturing – we will create new jobs at major investors in the UK like Nissan and Hitachi through reduced tariffs on parts coming from Japan, streamlined regulatory procedures and greater legal certainty for their operations.
• More generous market access for malt producers – Japan has guaranteed market access for UK malt exports under an existing quota which is more generous and easier to access than the EU quota. The UK is the second biggest exporter of malt to Japan, with UK producers exporting £37m there each year.  
•  Strong tariff reductions for UK pork and beef exports – We have negotiated a deal that sees tariffs fall on pork, beef, salmon and a range of other agricultural exports.  We will continue to benefit from access to the low tariffs for key food and drink products covered by quotas, such as Stilton cheese, tea extracts and bread mixes. This forms a pathway to further market access under CPTPP, which has been committed to by Japan as part of our agreement. 

The UK and Japan have a long-shared history as free trading nations and this deal marks an historic moment that will deepen the partnership between two democratic island nations.

International Trade Secretary Liz Truss said:    

“This is a historic moment for the UK and Japan as our first major post-Brexit trade deal. The agreement we have negotiated – in record time and in challenging circumstances – goes far beyond the existing EU deal, as it secures new wins for British businesses in our great manufacturing, food and drink, and tech industries.    

“From our automotive workers in Wales to our shoemakers in the North of England, this deal will help build back better as we create new opportunities for people throughout the whole of the UK and help level up our country.   

“Strategically, the deal is an important step towards joining the Trans-Pacific Partnership and placing Britain at the centre of a network of modern free trade agreements with like-minded friends and allies.”    

Chair of the Federation of Small Businesses, Mike Cherry said: 

"As we look to the UK’s global trading future, trade deals we sign should be about businesses of all sizes, which is why we are delighted to see a UK-Japan trade deal today that includes a comprehensive chapter for SMEs. FSB has long campaigned for these chapters to be included in trade deals, to give UK small businesses the support and tools they need to reach new markets. 

“The UK-Japan trade deal therefore marks a major moment.  It provides access to a major global market for the UK’s small business exporters, with one in ten viewing Japan as a crucial market to tap into.  With over 130,000 small businesses already exporting to Japan, this should provide small businesses looking to grow, maintain or start exporting to Japan with the certainty they need for the future.”   

 Director General of the Confederation of British Industry, Carolyn Fairbairn said:  

“The signing of the UK-Japan trade deal is a breakthrough moment. It will be welcomed by businesses across the country. The government and business now need to work together to make the most from the deal. It’s a huge opportunity to secure new Japanese investment across a wider range of sectors and UK regions.    

“Business will help support the government in its efforts to secure more trade deals around the world and promote their benefits to communities. The Japan deal can be the first of many.”   

CEO of TechUK, Julian David said: 

“TechUK welcomes the conclusion of the UK-Japan Economic Partnership Agreement with its comprehensive digital trade chapter. Today’s agreement improves an already flourishing relationship between the UK and Japan tech sectors and creates significant opportunities for trade and investment for both our countries.  

“Since 2018, in partnership with JEITA, we have run a successful UK-Japan Tech Forum to enable our members to develop a closer relationship with Japan and we look forward to working with the Government and our partners in Japan to assist the tech sector in taking full opportunity of this agreement.” 

Jim Walker, Managing Director of Walkers Shortbread said:

“We welcome the news that a UK-Japan agreement has been agreed today. Japan remains one of Walkers' most important markets and sales have grown steadily there since first launching in Japan over 40 years ago.  
 

“This deal will help provide certainty and create more opportunities to continue building sales in the future in a market where our products already enjoy success.” 

Notes to editors   

• Negotiations with Japan started on 9 June 2020. Since then more than 100 negotiators have met via remote means or in person to negotiate this agreement.
• After the deal is formally signed, the UK and Japanese parliaments will have the opportunity to scrutinise the agreement and approve its content before it enters into force at the end of the year.  
•  It is the government’s ambition is to secure free trade agreements with countries covering 80% of UK trade by 2022.  
• A full Impact Assessment will be published before the agreement comes into effect.  

The UK cannot afford to self-isolate from China: CBI Director-General Carolyn Fairbairn

Dear CBI Members & Partners,

Please find an op-ed published in today's FT by Director-General Carolyn Fairbairn:

The UK cannot afford to self-isolate from China

Business supports greater engagement coupled with evidence-based safeguards

Dame Carolyn Fairbairn, Director-General, CBI

In a turbulent year defined by unprecedented challenges, how the UK engages with China is among the most perplexing.

Rightly, British business takes its lead from government when it comes to matters of national security. Companies also understand wider political concerns about China’s actions. But alongside a security and diplomatic strategy for China, there also needs to be a thoughtful economic strategy.

The reason: future British jobs and prosperity. This is not the only goal for a nation, but it is an important one, particularly as we face tens of thousands of lost jobs in the wake of the pandemic. China is the second largest world economy, the strongest motor of global growth, and a significant contributor to British jobs.

A recent survey by the China-Britain Business Council found links with China in trade, tourism and higher education support up to 150,000 UK jobs, with many based outside London. UK exports to China, which have increased six-fold in the last 14 years, stand to grow further as the 400m people who make up China’s middle class buy more of what the UK is good at, from creative services to luxury goods.

Chinese students enrolled in English schools and universities have also increased 46 per cent since 2014-15. They now outnumber students from all EU countries combined. And as China accounts for 20 per cent of global spending on research and development, the country’s growing intellectual capital cannot be ignored. 

So this is no time for the UK to self-isolate from China. What is needed instead is a set of guiding principles for trade with China, to help businesses and policymakers weigh the interests of UK citizens in the round.

Business should be clear about its role in the debate — to bring evidence, so governments can evaluate difficult trade-offs. If Chinese suppliers such as Huawei are to be restricted on security grounds, it is vital to be clear on the costs and have an agreed plan B.

The question is not whether the UK trades with China but how. Bilateral trade has increased from £6bn in 1999 to £80bn in 2019. If the UK wishes to diversify its trade away from China, it should do this by trading more with the rest of the world rather than less with China.

Forging the right relationship with China is vital for the UK’s global competitiveness and wider interests. In short, a significant litmus test for Prime Minister Boris Johnson’s aims of a Global Britain. The UK should take the long view. Our global peers will take advantage of opportunities in China if the UK does not.

But trade with China must not compromise business values. Responsible firms uphold global standards in areas for which they are directly responsible, including workers’ rights and environmental protections. On trade, internationally agreed rules are central. China should be subject to the same rules.

The CBI support an eyes wide open approach. We believe greater engagement overall should be coupled with fairly applied evidence-based safeguards where needed. In the UK’s world-renowned higher education sector, universities are working carefully to put in place measures to protect academic freedoms and freedom of speech on campus. Chinese students should continue to feel welcome at our diverse and vibrant institutions, and we should persist in fostering exchanges of culture and ideas, despite governmental disagreements. 

Business fully backs Mr Johnson’s vision of ‘a modern and mature relationship, based on mutual respect and recognising China’s place in the world’. To do this, the UK needs a consistent, long-term approach. China is a vast, multi-faceted and fast-changing country posing both opportunities and challenges.

Inevitably, policymakers and business will face the tension between commerce and values not just in China but also in other countries. A set of agreed principles, balancing the interests of citizens on many dimensions, will act as a bedrock for the UK as it forges its independent trading role in the world post-Brexit.

The article appeared in today’s Financial Times.

'MSB's are the engine of economic growth' - CBI Director-General

‘MSBs ARE THE ENGINE OF UK ECONOMIC GROWTH’ – CBI DIRECTOR-GENERAL New CBI report sets out how MSBs can improve productivity by adopting technologies The CBI Director-General, Carolyn Fairbairn, will today (Tuesday) make the case for backing Britain’s medium-sized businesses (MSBs) to help propel Britain back into the economic fast lane. Providing 1 in 6 jobs and generating a quarter of revenue in the private sector, MSBs are the UK’s economic engine and helping more to succeed will play a big part in overcoming the country’s productivity challenges. In a speech to the CBI’s MSB Summit, sponsored by Lloyds Banking Group, she will also launch a new report – Be More Magpie – a practical guide for MSBs. It will set out how businesses can behave more like magpies, picking the best tried and tested technologies available – rather than like ‘ostriches’, who are more stuck in their ways, to raise their productivity and competitiveness.   On why MSBs matter, Carolyn will say: “If the UK economy were a car, MSBs would be its engine. They make up only 2% of firms in the UK, yet they provide 1 in every 6 jobs, and generate nearly a quarter of private sector revenue. “And right now, we need our engine working at full throttle because it’s no secret that the UK economy isn’t growing as fast as most of us would like.”   On the UK’s productivity challenge, Carolyn will say: “Let’s take this as a challenge and an opportunity. Today is about how we shift the economy up a gear and get into the fast lane. “I increasingly think the greatest obstacle to high productivity isn’t practical, but cultural. When people talk about ‘digital transformation’, many hear: job losses and the rise of the robots. “People who think we are moving too fast. Yet digital technologies are changing the way we do business hugely for the better. “So, I want to say to the people worried about the pace of change: I’m worried too. But my worry isn’t that we’re moving too fast. It’s that we’re not moving fast enough. By comparison with the best, the UK is running a slower race. “On technology adoption, the UK is nearly a decade behind the Danes and other leaders. With technology like e-purchasing for instance, we are only now achieving the same adoption levels that the Danes achieved back in 2009. “So we need to catch up and leapfrog.”   On adopting the tried and trusted technologies of today, Carolyn will say: “Believe it or not, magpies are the best kept secret solution to our productivity problem. “Magpies are the firms that adopt the technologies and best practices that are proven to lift productivity and pay. We’re talking about the basics on which the cutting-edge can then be built. “We have many magpies in this country and I suspect many in this room. But we don’t have enough. “If we had more, it would be transformational for our economy. They’d not only be able to focus more on their core business, they could save hundreds of hours in admin and collectively, deliver a £100 billion plus uplift to the UK economy.”   On business working with the Government, she will add: "The business voice matters and should be welcomed. Facts ignored today mean jobs lost tomorrow. It is firms who employ people, understand business risk and have the best insight into how the UK can grow. Their evidence is not inconvenient, it is essential to avoid an ideological approach to Brexit that could harm British prosperity. The world knows the UK as a great place to do business - together we can and must keep it that way. “Government has a vital role to play in helping to create more magpies. We warmly welcome the government’s ‘Business Basics’ programme which helps small and growing companies adopt new technologies. “However, there are three areas where government could do even more. First, by making improving the productivity of SMEs the main goal of the Shared Prosperity Fund. Second, by subsidising business advice for SMEs. And third, by giving SMEs a way to compare all this new technology before they adopt it. Think Trip Adviser for business technology. Tech Advisor perhaps. “This will be a particular boost for medium-sized firms. It must not get swamped in bureaucracy and it must be led by business to get the best outcome. If government and business work together, we can give more oxygen to our medium sized businesses and the huge contribution they make to our economy. “And more than that, we can give them - and their world-leading talent - the chance to excel in the global economy for years to come.”   The CBI report sets out five ideas to make companies more innovative, ‘MORE MAGPIE’: 1. Diagnose the problems and opportunities so you know what you want technology to deliver 2. Engage your suppliers – how can they help you solve the problem? 3. Be cautious about customisation – employ an 80:20 rule for technology solutions 4. Involve your people in the process 5. Tap into your networks – talk to others about how they’ve addressed the challenge   Other partners for the CBI’s MSB Summit include Sage, Blake-Morgan and Newable.     26 June 2018 Notes to Editors: Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.   Media Contact: CBI Press Office is available 24 hours a day on 0207 395 8239, or email: [email protected] Follow the CBI (@CBItweets) and CBI USA (@CBI_Washington) on Twitter.

 

CBI makes the case for British Business in China

 

CBI MAKES THE CASE FOR BRITISH BUSINESS IN CHINA

The CBI’s Director-General is visiting China this week on a trade visit with the Prime Minister, the Rt. Hon. Theresa May.

Carolyn Fairbairn, CBI Director-General, said:

“The Sino-British relationship is a tremendous success story. From services to schools, and iPhones to tea, our countries have a special and integral place in each other’s lives.

“British businesses are keen to play their part in further deepening and engraining the economic ties between China and the United Kingdom. With the consumer market alone worth over £3.3 trillion, this relationship creates thousands of jobs in the UK and China, raising living standards and boosting productivity.

“As the UK forges a new global trading future, it is well ahead of the curve in making the most of its relationship with the world’s fastest growing economy. By making inroads into China’s lesser economically known regions, the UK stands to profit from China’s move from manufacturing and infrastructure into technology and services, writing a new chapter in the golden era of relations.”

30 January 2018

Notes to Editors:

Read the CBI’s latest report on British trade and investment with China, Sterling Assets China.

Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.

Media Contact:

CBI Press Office is available 24 hours a day on 0207 395 8239, or email: [email protected] Follow the CBI (@CBItweets), Carolyn Fairbairn (CBICarolyn) and CBI China (CBIBEIJING) on Twitter.

CBI DG Carolyn Fairbairn: Evidence not ideology: Why a Customs Union is best for Britain

Dear Members & Strategic Partners,

Please find attached below a press release of CBI Director General Carolyn Fairbairn's keynote speech to be delivered today at the University of Warwick.

Many thanks

China Direct

Download Carolyn Fairbairn Director general CBI - University of Warwick speech press release

CBI Sterling Assets Report on China Roadshow

 

  

The inaugural Sterling Assets Report has been on a pan-China Roadshow since its launch on Thursday 02 November in Beijing.

The objective of the Roadshow was to circulate the Report's key findings to the diverse and dynamic UK business network in China and encourage policymakers and local officials to use the Report to promote greater UK-China business investment. 

Additionally the Report was received by business stakeholders the CBBC, British Chambers, Department of International Trade (DIT) and a visiting delegation of the All Party Parliamentary China Group in Guangzhou.

China Direct would like to sincerely thank HM Consuls Cecile Elbeleidi in Chongqing, HM Consul Karen Maddocks in Guangzhou, HM Consul John Edwards in Shanghai and HM Consul Nick Whittingham in Wuhan for their support.

 

    

Please note that China Direct will have the Chinese language version of the Report available for review and download by mid-November.

Kindly find the original Report and Executive Summary attached below for your reference.

Download CBI China Sterling Assets Report

Download Sterling Assets China Executive Summary

Thank you. 

  

UK PM Visit to Japan 30 Aug - 01 Sept

Theresa May, British prime minister, arrives in Japan seeking to boost post-Brexit trade. She will urge Japanese prime minister Shinzo Abe to consider a new free trade deal with Britain.

Mr Abe is likely to press Mrs May to moderate the impact of Brexit on Japanese companies. The two leaders are also expected to discuss security, with Japan eager for allies to support the territorial status quo in the South and East China Seas. (With thanks to the FT for the headlines).

Carolyn Fairbairn, the CBI's Director-General, will be part of the UK business delegation to Tokyo.

For further information please contact [email protected] at the CBI's Press Office. 

UK Trade Secretary looks to 'new golden era of Sino-UK business'

 

Secretary of State for International Trade, The Rt Hon Liam Fox MP, made his remarks at the recent CBI China New Year Dinner held in London on 02 February 2017.

For a summary of his comments please refer to the link below.

http://www.chinadaily.com.cn/world/2017-02/05/content_28108109.htm

CBI Director-General Carolyn Fairbairn visits Beijing on inaugural China Visit

The CBI's Beijing office was honoured to have Carolyn Fairbairn, Director-General of the CBI, in Beijing this week for her inaugural visit.

The highlight was a Reception at the British Ambassador's Residence to celebrate ten years of the CBI in China.

Thank you very much indeed to our Members and partners for your friendship and support over the past decade.

 Beijing Visit Highlights 17-18 Oct 2016