China Direct

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: [email protected] or [email protected]

Thank you.

Ford Chooses China, Not Mexico, to Build Its New Focus

In a move that highlights the shifting landscape of global auto production, CBI Member Ford Motor said Tuesday that it would build its next-generation small car in China rather than in the United States or Mexico.

The decision underscores the potential for China to export more vehicles for sale to American buyers, and the reluctance of domestic automakers to invest in additional production in Mexico. Ford currently builds its Focus compact car in Michigan, as well as in China and Europe.

Last year, the company said it planned to shift Focus production to a plant under construction in Mexico, primarily because of lower labour costs. But Ford cancelled the project in January after it met stiff opposition from President Trump, who had repeatedly criticized the company for investing in Mexican jobs at the expense of American ones.

Please read more here.

UK HAS A GOLDEN OPPORTUNITY TO BUILD A NEW ERA OF GROWTH AND PROSPERITY - NEW CBI DIRECTOR-GENERAL, CAROLYN FAIRBAIRN

   

The CBI’s eleventh Director-General, Carolyn Fairbairn, will use her first day in the post to deliver a clear message about issues that she believes matter most for the long term prosperity of the UK.

In her first message to CBI members, Carolyn will say:

“The UK has a golden opportunity to move on from its strong recovery to build a new era of growth and prosperity for the whole country. Among the defining issues will be seizing the opportunities of devolution for growth outside London, closing the productivity gap, and the future of the UK’s relationship with the European Union.

“One of the most exciting opportunities for the UK over the next five years is to make the ideals behind the Northern Powerhouse and growth beyond London a reality, while at the same time supporting the capital to reach new levels of success as one of the world’s truly great cities. The CBI’s role will be to bring a strong business voice to the devolution settlements and then work with the UK’s nations and regions to build momentum for change and growth. Above all, I would like the CBI, and my leadership of it, to be judged on our achievements in making a positive impact on productivity, growth and future prosperity across the whole of the UK.

“UK productivity is 30% below that of the United States and 28% below that of Germany. In a world of accelerating global competition, this is an issue that needs to be addressed urgently. The solutions lie in innovation, people and leadership and in tackling long-term weaknesses in skills and infrastructure.”

On Europe, Carolyn will say:

“On Europe, most of our members want to be in a reformed EU because of the benefits of the Single Market and the CBI is clear on what those reforms are - developing the Single Market, more trade deals, less and better regulation, as well as ensuring that the integrity of non-Eurozone countries such as the UK is protected.

“The CBI does have some members who feel that the UK should leave the EU, or who understandably want to see the outcome of the reforms before finally making a decision. We know this because we are a consultative organisation – and over the last three years, we have held over 130 consultation events with our members across the country. Those members who take a different view on the EU speak up, we listen to and respect their views, and we will consult with them – and all CBI members - again when the Government’s deal has been done.”

Carolyn welcomed the Prime Minister’s letter to the President of the European Council, setting out his reform agenda, as an important step forward. “It set out four areas of reform that touch on most of the concerns of UK business. Our members are supportive of this direction of travel and we look forward to working with the Government to deliver it, and to helping establish how the reforms might work in practice.”

Carolyn Fairbairn at a glance

Carolyn becomes Director-General of the CBI after over 25 years’ experience in UK business, spanning a range of operational and board roles in manufacturing, media, management consultancy and banking. She has extensive boardroom experience, including as a non-executive director of Lloyds Banking Group, The Vitec Group (a medium-sized photographic and broadcast equipment supplier), global outsourcer Capita, the Competition and Markets Authority and UK Statistics Authority. Between 2008 and 2011, Carolyn was a Non-Executive Director of the Financial Services Authority.

As Director of Strategy and Distribution at the BBC she created and launched Freeview. She was also Director of Group Development and Strategy at ITV from 2007-2010.

As a McKinsey consultant and partner, she advised companies across the UK on issues of competitiveness and growth. She worked with firms in sectors as diverse as brewing, DIY retailing, computer services, investment management and newspapers, advising on mergers, business expansion, cost control and global competitiveness. Carolyn later became one of the leaders of McKinsey’s UK media practice, specialising in digital strategy.

From 1995-97, she was seconded from McKinsey as a Special Adviser in Number 10’s Policy Unit, where she advised on health and social services.

She began her career as an economist at the World Bank, before joining The Economist newspaper as a business and financial journalist.

Carolyn read Economics at Gonville and Caius College, Cambridge, graduating with a double-First (1983).  She holds a MBA with Distinction from the European Institute of Business Administration (INSEAD), and a MA in International Relations from the University of Pennsylvania.

16 November 2015

Notes to Editors:

Read Carolyn’s first interview with Business Voice, the CBI’s digital magazine for members.

You can follow Carolyn on Twitter at @CBICarolyn

Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors which together employ nearly 7 million people, about one third of the private sector-employed workforce. 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.

President Xi Jinping's US Visit - a snapshot

Chinese President Xi Jinping visits the U.S.

This week, Chinese President Xi Jinping began his state visit to the United States, where he started his trip in Washington. Several highlights from President Xi’s visit to the west coast state included:

Visiting Microsoft’s Redmond campus and touring Boeing assembly lines

• CBI member Microsoft hosted President Xi and Madame Peng at its Redmond campus, where the company highlighted new technology and the role technology can play in advancing health, education, and business. Microsoft CEO Satya Nadella welcomed President Xi at the company’s Executive Briefing Centre.
• During his visit, President Xi met with senior executives and board members, watched technology demos, and reviewed innovative new devices. He also met briefly with the CEOs of technology companies who attended a meeting of the U.S.-China Internet Industry Forum, held at Microsoft’s Redmond campus. Microsoft has had a presence in China for more than 20 years. Please read more here.
•             
• CBI member Boeing welcomed President Xi to its widebody commercial airplane factory and announced several agreements that will broaden and deepen mutually beneficial cooperation between Boeing and China.
• The agreements included orders and commitments for 300 Boeing narrowbody and widebody aircraft and expanded collaboration between Boeing and China’s commercial aviation industry. President Xi, accompanied by Boeing executives, viewed final assembly lines for the 787 Dreamliner, 777, and 747-8, as well as aircraft components made by Chinese aviation suppliers.
• The president also spoke with Boeing employees and the 787 chief pilot about their work on airplanes built for Chinese carriers. Please read more here.

Visiting Lincoln High School in Tacoma

• President Xi and Madame Peng visited Lincoln High School in Tacoma. President Xi first visited the school back in 1993 when he was a Party official in Fujian province and helped to sign a sister-city pact between Tacoma and Fuzhou, Fujian’s provincial capital.

Promoting US-China governmental cooperation at the local level

• In Seattle, President Xi attended the third U.S.-China Governors Forum, which included the U.S. state governors from Washington, California, Michigan, Iowa, and Oregon and their Chinese counterparts from Sichuan, Beijing, Chongqing, Zhejiang, Shandong, and Shaanxi.
• They agreed to cooperate to give a boost to businesses that generate renewable and clean energy. At present, 43 pairs of Chinese provinces and U.S. states and 200 pairs of cities have established sister city relationships.

President Xi is currently in Washington, D.C. and will later travel to New York.

Please contact either the CBI's Washington DC ([email protected]) or Beijing ([email protected]) offices for more information.

Thank You.

US CBI member company Nike to build new Greater China HQ in Shanghai

 

[Image courtesy of www.nike.com]

CBI member Nike recently announced plans for the development of a new centralised campus for the company's employees in Shanghai. Nike's investment in developing the nearly 600,000 square foot headquarters will support its long-term business growth strategy in China, where it celebrated 30 years of business in 2011.

Nike's new campus will be located at The Springs, Tishman Speyer's newest mixed-use development in Shanghai's Yangpu District. The headquarters will feature up to three office buildings and a five-storey multi-purpose conference centre as well as a soccer pitch, regulation-size indoor basketball court, state-of-the-art work-out facility, full-service food and beverage facility, and standalone conference centre to host large-scale events and product unveilings.

Nike expects to occupy the new space beginning in the first quarter of 2014.

Craig Cheek, VP & GM of Nike's Greater China geography, said, "This announcement is very exciting and a strategic investment in our continued growth in China. This new campus headquarters will allow us to elevate and expand on our facilities and capabilities while bringing all of our Shanghai-based employees together from our portfolio of NIKE, Inc. Brands into one central campus."

Tishman Speyer co-CEOs Jerry Speyer and Rob Speyer said, "When we broke ground on The Springs in June, we were confident that world-class companies would recognise the value and importance of establishing a presence in Shanghai. The creation of the Nike Greater China headquarters at The Springs underscores the strength of this market and importance of this development to the Shanghai business as well as residential communities. We're thrilled that Nike, one of the world's great global brands and companies, will be an anchor in this development and look forward to a long-term relationship."

Click here to read the full press release by Nike.

The CBI's International Footprint - building the voice of business globally

 

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

As the UK's premier business lobbying organisation, the CBI operates around the world to help our companies do business. Our offices in the UK, China, India, mainland Europe, and the U.S. actively promote Britain's business interests overseas, offering information, lobbying, and networking.

Please click here to read more about the CBI's international offering.

 

 

Boeing's 787 Dreamliner flies to Hong Kong

[Image courtesy of www.boeing.com]

Boeing’s new 787 Dreamliner made its first commercial flight today, flying from Tokyo to Hong Kong.

With a special carbon-composite design, the Boeing Dreamliner offers a 20% improvement in fuel efficiency, an attractive proposition for airlines facing soaring fuel costs.

In additional Boeing news, the U.S. aviation giant opened a new service centre in Beijing earlier this month to provide enhanced product support to China's growing commercial aviation industry. The team based at the new Boeing China Service Centre will enhance Boeing's day-to-day support of the more than 800 Boeing airplanes currently in service in China.

Commenting on the new service centre, Lou Mancini, senior vice president of Commercial Aviation Services, said, "We are bringing Boeing's world-class airplane services and support closer to our China customers, providing them a competitive edge in their markets."

Boeing China President Marc Allen said, "The centre is another important step in the overall partnership of Boeing with China. Having a support centre in China will help us bridge language and time-of-day barriers."

Please click here for additional media coverage on the first commercial flight of Boeing's new 787 Dreamliner and here for the full press release by Boeing on its new service centre in Beijing.

US Budget Control Act 2011 - implications for business

 

 
[Image courtesy of www.cbi.org.uk]

Please refer to the following commentary from our CBI Washington DC office of the recent US budget crisis and US Budget Control Act 2011.

Kindly contact our US office directly via [email protected] or [email protected] for further comment or opinion.

 Download CBI US Budget Brief Aug 11

Seeing is believing - GE's X-ray Unit moves to Beijing

 

 
[Image courtesy of www.ge.com]

Earlier this week, CBI member GE announced that its Healthcare unit will move the GE X-ray leadership team from the U.S. to a new global headquarters in China.

The shift to Beijing will enable global imaging business GE X-ray to establish a comprehensive in-country business cycle covering engineering, development, sales and service and better support healthcare settings in rural and urban China.

According to Anne LeGrand, Vice President and General Manager of X-ray for GE Healthcare, "Moving GE X-ray's global headquarters to China will help make the business more nimble and responsive while continuing to strengthen our local focus and grow our global footprint."

Rachel Duan, president and CEO of GE Healthcare China, said, "By moving strategic leadership to a new global hub of healthcare innovation, GE X-ray is better positioned to understand and meet the needs of high-growth markets, support the Chinese government's Primary Care Initiative and the 12th Five-Year Plan (2011-2015)."

The potential of the Chinese healthcare market is enormous. According to Yan Qingchun, vice-president of the China National Committee on Aging, "By the end of 2020, China is estimated to have 248 million seniors above 60 years old, who will account for 17.2% of its population."

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

Boeing and AVIC to set up new maunfacturing and innovation centre in China

 

 
[Image courtesy of www.boeing.com]

Earlier last week, CBI member Boeing and Aviation Industry Corporation of China (AVIC), China's largest state-owned aviation company, signed an agreement to launch the AVIC-Boeing Manufacturing Innovation Centre in Xi’an, the capital of Shaanxi Province in central China. 

The new centre, scheduled to open in early 2012, will provide classroom training for AVIC employees as well as hands-on training for workers in AVIC factories.

 Increasing AVIC's efficiency and capacity to supply high-quality components for Boeing airplanes will in turn improve Boeing's production system. In addition, the centre will also help AVIC move closer towards achieving its objective of improving its manufacturing and technological capabilities to achieve global Tier-1 supplier status.

As the initial work statement of the new centre, Boeing also announced that it had awarded a contract to manufacture 737 rudders to Chengfei Commercial Aircraft Co. (CCAC), an AVIC company located in Chengdu, the capital of Sichuan Province in southwestern China.

Commenting on the new agreement, Boeing Commercial Airplanes President and CEO Jim Albaugh said, "As a company in a global market poised for tremendous growth, we need to increase both the capacity and capabilities of our supply chain. The AVIC-Boeing Manufacturing Innovation Centre is consistent with our approach of partnering with suppliers to enhance their quality and productivity. AVIC has been a valuable supplier partner to Boeing for many years. This agreement is an opportunity to advance their capabilities and add value for Boeing and our customers."

Please click here to read Boeing's official press release.