China Direct

European Chamber releases inaugural Southwest China Position Paper

 

The European Union Chamber of Commerce in China released the European Business in China – Southwest China Position Paper 2015/2016 as a standalone report for the first time.

It compiles the latest assessments and concerns of European businesses operating in Southwest China with the aim of offering constructive recommendations to policy-makers in Chengdu, Chongqing, and Sichuan Province.

The Chamber hopes that this white paper will help to facilitate increased government dialogue and improve operating conditions for foreign companies invested in Southwest China, enabling them to invest further and help the region to develop sustainably and achieve its policy goals.

Please read more here.

Focus on Chengdu - CBI China Regional City Series

 

 

 Chengdu

Ambassador Woodward visits Chengdu: In November 2015, Barbara Woodward paid her first solo visit to Chengdu as British Ambassador to China. During her visit, she met with the Executive Vice Governor of Sichuan and the Mayor of Chengdu, visited the University of Electronic Science and Technology of China and delivered a speech on joint efforts to a green and low carbon future, visited West China Hospital (the second-largest hospital in China) and promised to invite more of the UK’s healthcare organisations to Go West, and participated in an Empowering Women event to share her personal experiences with female university students on her own growth and career development.

UK Chancellor visits Chengdu: In September 2015, UK Chancellor George Osborne announced a major milestone for the government’s High Speed 2 rail project (HS2), kick-starting the bidding process for phase one of the mega construction project. At least seven new contracts will be opened up to companies, with a total combined value of £11.8 billion.

The Chancellor made the announcement at an event in Chengdu, aimed at wooing some of China’s biggest investors to be part of the project as well as a raft of other major UK infrastructure projects. The Chancellor also showcased a selection of £24 billion worth of investment opportunities in the North of England at the event in Chengdu.

The Chancellor said there are unprecedented opportunities for Chinese investment into the Northern Powerhouse. Infrastructure and regeneration investment projects such as the Atlantic Gateway and Science Central, a cutting-edge development in the heart of Newcastle, were set out in a new Northern Pitchbook that was presented in Chengdu.

Other facts/figures on Chengdu and Sichuan province

Nearly 100 UK companies registered in Sichuan: There are now 94 UK companies registered and doing business in Chengdu and Sichuan province – nine of the 94 are in the world’s top 500 companies – in sectors ranging from financial and professional services, aerospace, engineering, construction, and manufacturing.

China’s fifth most populous city: Chengdu is China’s fifth most populous city 

High levels of foreign investment: In the first four months of 2015, Chengdu received US$1.2 billion in contracted foreign investment, up 150% compared to the same period in 2014.

Strong concentration of MNCs: There are over 265 Fortune 500 companies with businese in Chengdu. 

Key industries: Key industries in Chengdu include pharmaceuticals, food processing, automotive, aerospace, and metallurgy, finance, ICT, retail, petrochemical, and tourism.

Examples of CBI members in Sichuan province:  

Atkins:

 

 

In November 2015, the Seaton Plaza, Atkins’ first mixed-use development in Chengdu, opened for business.

• In June 2013, Atkins completed the landscape design for the waterfront in Mianyang, Sichuan province, creating leisure space for the public and interlinking various commercial and residential developments.
• In May 2012, Atkins was commissioned to draw up the Guidelines for the Chengdu North City Regeneration project.

 

• Benoy: In January 2014, Benoy announced the opening of Chengdu International Finance Square.

 

• BP: In October 2015, BP and China National Petroleum Corporation (CNPC), in an expansion of their global partnership, entered into a framework agreement on strategic cooperation covering potential shale gas exploration and production in the Sichuan Basin and future fuel retailing ventures in China and other international partnerships.

 

• British Airways: In 2013, British Airways launched its direct service between Chengdu and London.

 

• Deloitte: In October 2013, Deloitte opened its Chengdu office.

 

• Diageo: In July 2013, Diageo received approval from Chinese authorities to acquire the remaining 47% stake in Sichuan Chengdu Shuijingfang Group Co. Ltd. owned by its Chinese partners.

 

• PwC: In May 2015, PwC opened its Chengdu office.

 

• Shell: In March 2012, Shell and China National Petroleum Corporation signed a Production Sharing Contract for shale gas exploration, development, and production in the Fushun-Yongchuan block in Sichuan province.

 

• UBM: In August 2015, UBM’s second edition of HOTELEX Chengdu Exhibition, organised by UBM China and undertook by the Shanghai UBM Sinoexpo International Exhibition Co. Ltd. and the Sichuan Province Hotel Supplies Industry Association, was held in Chengdu.

CBBC’s China roadshow for its One Belt, One Road report and plans for 2016

 

The China-Britain Business Council’s (CBBC) recent One Belt, One Road report with the U.K. Foreign and Commonwealth Office (FCO) concluded that British businesses have a very real part to play in China’s initiative.

The CBBC’s recent series of events in Beijing, Shanghai, Chongqing, Chengdu, and Guangzhou built upon the report, with the aim of helping U.K. companies understand why the initiative is one of CBBC’s and UKTI’s key priorities for 2016 and beyond.

The roadshow was complemented by a similar series in London, Coventry, Glasgow, and Manchester, and the CBBC is now setting down extensive plans to help more British businesses get involved in the year ahead.

A follow-up report on the initiative will be published in 2016, and a second series of roadshows organised to update members around the U.K. and China. One Belt, One Road will be a central theme of the CBBC’s 4^th annual China Business Conference on 22 March 2016 in London.

Please read more here.

HMA Barbara Woodward visits SW China

 

 

Following the U.K. Chancellor of the Exchequer’s visit in September, Barbara Woodward paid her first solo visit to Chengdu as British Ambassador to China on 19-20 November.

 

During her visit, Ambassador Woodward met the Executive Vice Governor of Sichuan province, Wang Ning, and the Mayor of Chengdu, Tang Liangzhi, and exchanged views on the U.K.-Sichuan/Chengdu bilateral relationships. In her meetings, the Ambassador highlighted President Xi’s successful state visit to the U.K. in October.

 

She also discussed the Chancellor’s visit to Chengdu in September in which he introduced the Northern Powerhouse. In addition, the Ambassador visited the University of Electronic Science and Technology of China and delivered a speech on the U.K.-China Golden Age: Joint Efforts to a Green and Low Carbon Future to hundreds of students to highlight the U.K.’s and China’s cooperation on clean energy, smart cities, and other areas of low carbon development.

 

She also visited the Gerontology Department and the Tele-health Department of West China Hospital, the second-largest hospital in China. She promised to invite more of the U.K.’s healthcare organisations to Go West and to expand cooperation with West China Hospital and across Sichuan in developing new hospitals, in delivering education and training, and in informatics, telemedicine, and elderly care.

 

The Ambassador also participated in an Empowering Women: Growing Your Career Talk at Fangsuo Bookstore to share her personal experiences with female university students on her own growth and career development.

 

There are now more than 94 U.K. companies registered and doing business in Chengdu and Sichuan—nine of the 94 are in the world’s top 500 companies—in sectors ranging from financial and professional services, aerospace, engineering, construction, and manufacturing.

 

Please read more here.

A busy week for UK-China Relations - business deals and highlights Sept 2015

 

Dear CBI members and partners,

China Direct has summarized below the key UK-China announcements made during a busy and productive week for UK-Sino relations.

Chinese Ambassador to U.K. speaks at reception in honour of KPMG Chairman

Chinese Ambassador to the U.K. Liu Xiaoming spoke at a reception held in honour of KPMG Chairman Richard Reid. The Ambassador highlighted some of Mr. Reid’s impressive contributions to strengthening relations between China and the U.K., including:

• Mr.Reid established KPMG’s U.K.-China Business to work with Chinese groups as they expand overseas. KPMG has played an important role in facilitating investments between China and the U.K.
• In 2012, KPMG was involved in seven out of the eight major Chinese investments in the U.K., including CIC’s investment in Thames Water and Heathrow Airport.
• KPMG has been a leading advisor for China’s potential investment in the U.K.’s nuclear power generating market.
• KPMG assisted Jaguar Land Rover to enter the Chinese market and form a joint venture with Chery Auto.

 Please read the full transcript of the Ambassador’s speech here.

U.K. Chancellor announces £3 million funding for grassroots football programme

U.K. Chancellor George Osborne announced a £3 million funding boost for a revolutionary grassroots football programme in China, supporting thousands of young people.

Speaking during a visit to the Soong Ching Ling Football School in Urumqi, the Chancellor announced new funding to provide training for over 5,000 new football coaches, significantly increasing Chinese awareness of the thriving football sector in the U.K.

The extension of the highly successful Premier Skills football coaching programme, run by the British Council and the Premier League, will also see it reach Xinjiang for the very first time. The initiative, which started in 2008, focuses on creating new coaches and referees across the world and inspiring young people to get involved in football.

So far the programme has trained 1,100 coaches and reached nearly 500,000 young people in China. The announcement follows a new agreement between the British and Chinese governments to work together in developing sports education, including new collaborations on sports policy, the training of coaches and referees, and a new joint accreditation in football coaches for PE teachers.

The Chancellor said, “Grassroots football plays an instrumental role in U.K. life, and it is brilliant to be able to spread that to China. This fantastic scheme which will bring new opportunities to young people across China will also help bring increased awareness and investment into the U.K. football sector.” Please read more here.

U.K. Chancellor announces support measures to showcase British culture

U.K. Chancellor announced a raft of support measures to open up some of the country’s best arts and culture to Chinese audiences. Examples include: 

• British Library to display some of its most iconic literary treasures in China for first time ever: Ten handwritten manuscripts and early editions by some of the best-known British authors of all time, from William Shakespeare to the Sherlock Holmes creator Sir Arthur Conan Doyle, will star in pop-up exhibitions across China between 2016 and 2019. The British Library will also begin creating related online resources in Mandarin. This follows the opening of a new display at the British Library in London showcasing 3,000 years of Chinese writing, from ancient engraved animal bones to a vast 15^th century encyclopaedia.

 

• Shakespeare’s Globe to tour China with revival of The Merchant of Venice: To commemorate the 400th anniversary of Shakespeare’s death next year, Shakespeare’s Globe will tour China with a revival of The Merchant of Venice, which premiered at the Globe in April this year to full houses for over 6 weeks. £500,000 of government funding will also develop a training programme for Chinese arts organisations to develop their learning and community projects. This complements the £1.5 million investment announced at the 2014 UK-China Economic Financial Dialogue in support of the Royal Shakespeare Company for the translation of Shakespeare into Mandarin and the translation of seminal Chinese plays into English.

 

• £500,000 to support Royal Opera House training programme for Chinese students: The Royal Opera House currently provides training to Chinese delegations on an ad hoc basis, so this Sino-U.K. funding will offer Chinese students the opportunity to travel to London for intensive training courses with world-leading arts institutions.

 

• New Love China Festival at Southbank Centre: This will celebrate the U.K.’s cultural links with China through workshops, exhibitions and performances showcasing the best of music, theatre, fashion, design, dance, comedy, and literature from the U.K. and China. It builds on the success of the Southbank Centre’s annual Alchemy Festival celebrating the U.K.’s links with the Indian subcontinent.

 

• £250,000 for National Theatre of Great Britain, working in collaboration with National Theatre of China to develop tour of War Horse across China: The tour will follow its recent performances in Beijing and Shanghai. The show will be produced, operated, and performed by 90 Chinese artists and technicians who have been trained as part of the strategic skills exchange between the two national theatres.

 

• £1.3 million to support presentation in China of Tate’s exhibition of British art, Landscapes of the Mind: British Landscape Painting (1700 – 2007): The exhibition comprises over one hundred celebrated works drawn from Tate’s unrivalled collection of British art, including David Hockney’s ‘Bigger Trees near Water’. Most of these will be presented in China for the first time. This exhibition, which has travelled to Mexico City and São Paulo, will forge a new museum partnership for Tate in China and follows the successful presentation of a landmark Turner exhibition at the National Art Museum of China, in Beijing in 2009.

 

• Victoria & Albert Museum to create new system for interpreting Chinese images: £300,000 of funding will support the initial stages of creating a bilingual English-Mandarin database of pre-1900 Chinese cultural and literary sources.

 

• £700,000 to showcase tourism in North of England as part of Northern Powerhouse: The Chancellor’s visit to China was a key opportunity to highlight the economic and cultural impetus of the U.K.’s Northern Powerhouse, and the campaign will encourage Chinese visitors to explore the Yorkshire moors, Beatrix Potter, and Wordsworth countryside in the Lake District, and historical sites such as Hadrian’s Wall.

• £1.3 million for VisitBritain ‘culture is GREAT’ campaign in China: This will highlight Britain’s cultural capital. Sally Balcombe, VisitBritain’s CEO, also joined the Chancellor during his tour of China.

 

• New Eden Project in Qingdao: The Eden Project has signed a deal, worth up to £5 million, for a new Eden Project in Qingdao—the company’s first development outside of the U.K.

Please read more here.

U.K. Chancellor opens £11.8 billion HS2 bidding process

U.K. Chancellor George Osborne announced a major new milestone for the government’s High Speed 2 rail project (HS2), kick-starting the bidding process for phase one of the mega construction project.

At least seven new contracts will be opened up to companies, with a total combined value of £11.8 billion. The Chancellor made the announcement at an event in Chengdu, aimed at wooing some of China’s biggest investors to be part of the project as well as a raft of other major U.K. infrastructure projects.

Mr. Osborne also announced a new ‘HS2 partnering day’ between British and Chinese firms to explore joining up on bids for contracts, as well as launching the Northern Powerhouse pitchbook. HS2 forms a major part of the government’s plan to rebalance the U.K. economy and build a Northern Powerhouse by providing high speed rail services from London to the Midlands and the North.

Construction of phase 1 is due to start in 2017 and, when opened, will slash the travel time between London and Birmingham from one hour and 21 minutes to 49 minutes. The government is organising an ‘HS2 partnering day’ to give Chinese companies an opportunity to meet U.K. firms and establish potential partnerships to join up on bids.

The Chancellor is also inviting Chinese participation in the HS2 skills college, which is due to open in 2017. A skills-swap programme would allow the U.K. to benefit from China’s expertise as a world leader on High Speed Rail and help Chinese investors better understand the U.K. market. The Chancellor is also encouraging Chinese companies to take part in an HS2 ‘regeneration tour’, which would involve visiting areas of huge commercial opportunity in London, the Midlands, and the North. Investors would have the chance to meet with relevant local authorities and visit station sites. Please read more here.

U.K. Chancellor showcases Northern Powerhouse investment opportunities

U.K. Chancellor George Osborne showcased a selection of £24 billion worth of investment opportunities in the North of England at an event in Chengdu with senior Chinese investors.

The Chancellor said there are unprecedented opportunities for Chinese investment into the Northern Powerhouse as the U.K. and China enter a golden era of economic cooperation.

Infrastructure and regeneration investment projects such as the Atlantic Gateway, a series of projects connecting the Port of Liverpool to the City of Manchester, and Science Central, a cutting-edge development in the heart of Newcastle, are set out in a new Northern Pitchbook that was presented in Chengdu.

At the same time, Britain’s Northern leaders said a new wave of transformational Chinese investment can revolutionise Northern infrastructure. Key projects for which investment is sought include:

• Manchester Place—an opportunity to deliver three new zones of more than 10,000 homes with a combined value of over £3 billion
• Sheffield Retail Quarter—working with Sheffield City Council to create new city centre homes and centrally located offices
• South Bank, Leeds—a new regeneration scheme covering more than 130 hectares in the city centre

 Alongside the Pitchbook, the Chancellor also announced:

• potentially doubling Enterprise Zones across the North
• commissioning a new government report looking at existing links between U.K. and Chinese cities to help the U.K. better understand how it can attract more trade with China
• a commitment to reinvigorate partnerships between Northern and Chinese cities, including Sheffield’s Sister City agreement with Chengdu, which has fostered significant business, civic, and cultural links since 2010
• the secondment of staff from the China Rail Construction Corporation, the world’s largest railway company, to Mott MacDonald, the U.K.-based management, engineering, and development consultancy, in Manchester
• the findings of a city-clusters research project based on the Chongqing-Chengdu cluster and the Northern Powerhouse
• a new service, established by Lancaster University, to bring together U.K. and Chinese universities, researchers and businesses to take research to commercialisation
• a new joint PhD programme to teach the next generation of Chinese Radio Astronomers at the Square Kilometre Array headquarters at Jodrell Bank
• a new offer on the Chevening Scholarship Programme to those in the Northern Powerhouse who wish to strengthen ties with Chinese students. Durham, Lancaster, Leeds, Liverpool, Manchester, Newcastle, Sheffield, and York universities (the ‘N8’) have all expressed an interest so far

Please read more here.

UKTI and Shanghai FTZ partner to help U.K. companies with e-commerce sales 

U.K. Business Secretary Sajid Javid signed a partnership agreement on behalf of U.K. Trade and Investment (UKTI) with the Shanghai Cross-Border e-Commerce Public Platform.

The signing took place at the first ever China-U.K. Cross-Border e-Commerce Cooperation Roundtable organised by the Bank of China in Shanghai. The partnership was organised as part of UKTI’s e-Exporting Programme.

The agreement will support U.K. exporters and help promote their online sales in China by helping them to find new customers, build brand awareness, and analyse Chinese consumer requirements. The Shanghai Cross-border e-commerce Public Platform will work with UKTI to:

• provide help to U.K. companies wishing to sign up to e-commerce platforms registered in the Shanghai Free Trade Zone (FTZ)
• encourage e-commerce platforms registered in the Shanghai FTZ to run a marketing campaign promoting U.K. brands on their platforms
• share information to help U.K. companies understand the opportunities in China and how they can be optimised through e-channels in the Shanghai FTZ

UKTI will work to grow the volume of U.K. online exports to China through the Shanghai FTZ e-marketplace by:

• delivering a programme with U.K. partners to increase the number of companies seeking to export through global e-marketplaces
• promoting opportunities for U.K. companies to grow their business in China through e-marketplaces
• working with partners and private sector experts to provide peer-to-peer mentoring for U.K. companies seeking to export through e-channels
• delivering a retail and brands campaign across relevant e-commerce platforms in the Shanghai FTZ

Please read more here.

Monthly Partners Round Up June 2015

 

 

Please find the June 2015 monthly partners round-up below with a full summary at the bottom:

• British Centre Guangzhou opens
• 2015 Queen's Birthday Party in Shanghai
• British Chamber of Commerce in China elects new Executive Committee
• British Consul General to Hong Kong speaks at London Stock Exchange’s Greater China Forum
• Chinese Ambassador to U.K. speaks at 50^th anniversary celebration for SACU
• Chinese Consulate-General in Belfast opens
• European Chamber releases its Business Confidence Survey 2015
• New pilot scheme to streamline visa process for Chinese visitors
• U.K. Business Secretary meets Chinese entrepreneurs in London
• U.K. celebrates 15 years of its diplomatic presence in Southwest China
• UKTI publishes new guide to selling goods and services in China
• Queen Elizabeth II confirms Chinese President Xi Jinping’s upcoming U.K. state visit in October

Download CBI China, U.K.-China Monthly Roundup, June 2015

 

CBBC Great British Brands Festival in China 2015

 

The China-Britain Business Council (CBBC) Great British Brands Festival series of events focuses exclusively on selling U.K. products in China.

It provides an important opportunity for companies to showcase and sell their products to Chinese consumers in eight cities.

Following its success in Beijing, Chengdu, and Guangzhou in 2014, the festival is expanding across China, with eight events provisionally planned for 2015 in Chongqing (April), Changchun (May), Beijing (June), Changsha (July), Urumqi (August), Shenzhen (September), Chengdu (October), and Guangzhou (November).

There will also be opportunities to take part in associated events in Hangzhou, Qingdao, Shanghai, Wuhan, and other cities as part of CBBC’s retail-focused China Consumer programme.

Please read more here.

CBI Member China Round-Up. Jan 2015

CBI member Jaguar Land Rover announced that it had achieved a solid sales performance in 2014, retailing 462,678 vehicles, up 9% compared to the previous year.

This is the company’s fifth successive year of growth in sales. Jaguar Land Rover’s global performance for the full year shows a balanced portfolio with sales up across all key regions: 122,010 in the China Region, up 28%; 96,505 for Overseas, up 1%; 86,310 in Europe, up 3%; 82,872 in the U.K., up 7%, and 74,981 in North America, up 2%.

Land Rover had its best ever year with sales reaching 381,108, up 9% year-on-year. The company sold more Range Rovers, Range Rover Sports, and Range Rover Evoques in 2014 than ever before, on the back of continued strong customer demand.

Jaguar sales were up 6% for the year, retailing 81,570 vehicles. The F-TYPE, which has just completed its first full year of sales, continues to raise brand awareness around the world. The XF consistently drives Jaguar volumes and in 2014 has recorded its best year of sales to date.

This is Jaguar’s strongest full year performance in nearly a decade. It has also been a historic year for manufacturing, with the business expanding from three plants to five. Jaguar Land Rover opened its first ever overseas manufacturing plant, in China, as well as a new Engine Manufacturing Centre in the West Midlands.

Please read more here.

China Aircraft Leasing Company firms up its contract with Airbus for 100 A320 Family aircraft

CBI member Airbus announced that China Aircraft Leasing Company (CALC), China’s leading independent aircraft operating lessor, had firmed up its contract in December 2014 with Airbus for 100 A320 Family aircraft. The order comprises 74 A320neo, 16 A320ceo, and 10 A321ceo. Including this new order, CALC’s total backlog with Airbus stands at 140 A320 Family aircraft.

Please read more here.

British Airways unveils special offers for its Club World business class

CBI member British Airways unveiled special offers for its Club World business class, with fares starting at RMB 18,000 from Chengdu, RMB 20,000 from Shanghai, and RMB 24,800 from Beijing. The limited time offer, available on ba.com from now until 18 February 2015, is valid for outbound travel before 19 June 2015.

Richard Tams, British Airways Executive Vice President, China, said, “London is one of the world’s great shopping capitals, therefore it’s not surprising that a number of our customers from China go there for truly unique and memorable shopping experiences. Our special Club World fares enable shopping lovers to not only fly to London in award-winning style, but to also take advantage of the great savings to bring back an indulgent memento or two.”

Heathrow Airport Limited reports passenger volumes increase 15.1% to China in December

CBI member Heathrow Airport Limited released its traffic results for December 2014, reporting passenger volumes continued growth within emerging markets, increasing 15.1% to China, 10.9% to Mexico, and 4% to the Middle East and Central Asia.

Please read more here.

CBI Member Successes in China - Snapshot of Year of the The Horse

 

Dear CBI members and strategic partners,

China Direct would like to share with you a snapshot of CBI members' successes in China through 2014. We hope that you found our new format easy to use, visual and informative and wish you all every success for the forthcoming year of the sheep.

Please do keep sending us your updates and press releases so that your business can also be highlighted in 2015.

Thank you.

Download CBI Beijing, Member Milestones in China, 2014

CBI Strategic Partners Monthly Roundup Nov 2014

 

 

Dear CBI Members and partners,

Please find the Nov 2014 Strategic Partners monthly roundup below.

Detailed information can be downloaded from the Executive Summary at the bottom of this note.

• 2015 U.K.-China Year of Cultural Exchange
• British Ambassador to China opens GREAT campaign-funded exhibition in Chengdu
• British Business Awards 2014 held in Beijing
• CBBC signs agreement with Chinese Service Centre for Scholarly Exchange
• Chinese-speaking students to be placed with U.K. companies to help them break into Chinese market or find new investment
• Duke of Cambridge to open GREAT Festival of Creativity in Shanghai
• GREAT British Online Film Festival brings top British features and short films to netizens across China
• Leading British entrepreneurs announced as speakers at GREAT Festival of Creativity in Shanghai
• London-Hong Kong Forum convenes for fourth meeting
• U.K. Communities Secretary visits China
• British organisations invited to join U.K. digital health demonstration centre in China in January 2015

Download CBI China Monthly Roundup November 2014