China Direct

China's Tech Pivot (II): STEM Talent Shortage Stymies Core Innovation?

"Now that China’s tech pivot to enhance the real economy and to master foundational technologies is under way, standing in the way of that pivot is a talent bottleneck. Yet, despite having the world’s most STEM graduates, China surprisingly suffers from talent shortages in areas key to the pivot..."

To read the second part of the Macro Polo team's tech commentary please follow the link here.

Our grateful thanks to the experts at Macro Polo for sharing their expertise and insights into a country that is reshaping the world.

Dates for Diaries: 30 Nov 2021 - Brand Protection for E-Commerce in Southeast Asia

 

About this webinar

Ready to expand overseas but unsure of how to effectively protect your brand from being exploited in the digital realm? Brand abuse such as counterfeits and false associations are some of the malicious activities that erode your revenue and undermine your relationship with your customers.

Understand the common ways that brands are exploited by third parties in e-commerce marketplaces and pick up essential knowledge of brand protection tools available in such marketplaces. In the second segment of this webinar, Deputy Director-General, Atty. Teodoro C. Pascua of the IP Office of the Philippines will speak about the recent IP developments and issues relevant to the e-commerce sector in the Philippines.

Who this webinar is suitable for

This webinar is suitable for companies currently working in the e-commerce sector and/or those looking to expand operations to marketplaces in Southeast Asia.

Program details:

• 30pm-5.10pm (Introduction, presentation by Taylor Vinters)
• 10pm-5.25pm (Presentation by IPOPHL)
• 25pm-5.30pm (Q&A)

Further information

The webinar will take place on 30 November 2021, 4.30pm-5.30pm (Singapore Time), 8.30am-9.30am (UK Time)

If you have any enquiries, please send an email to [email protected]

To register for this event please click the link below.

SE Asia Brand Protection IP Webinar

 

 

TransferWise partners with China's Alipay

CBI member, TransferWise has announced that it has established a partnership with Chinese e-commerce giant, Alipay, to facilitate cross-border money transfers.

The tie-up will enable TransferWise’s more than 7 million customers to send money held in 17 currencies to Alipay users as Chinese yuan, according to a statement made by TransferWise on Tuesday. Alipay serves over 1.2 billion people globally.

TransferWise users will need to fill in the recipient’s name and Alipay ID before transferring money to the bank account linked to the recipient’s Alipay profile.

The company said: ““The partnership is a major expansion for TransferWise as it reaches a new, additional market of people managing their money via the Alipay platform.”

China is currently the most expensive major currency corridor, according to the World Bank, with the average cost of sending $200 (£140) from the UK to China standing at a staggering US $19.6 (£13.70) or 9.8%.

In response, TransferWise will charge 1.5% for transfers with a delivery time of 1 to 3 days. Anybody with a UnionPay account will be able to receive transfers.

In 2018, China received $67 billion in overseas remittances, making the country the second-largest recipient of such payments after India with $79 billion.

To read TransferWise’s announcement in full, please follow the link.

HSBC to add 1,000 Tech R&D jobs in China

 

 

CBI member, HSBC has announced plans to add 1,000 jobs in research and development centres in Guangzhou, Shanghai and Xi’an as it looks to expand its presence in China. HSBC says that it plans to spend up to US$3.5 billion a year on strengthening its technological operations and capability in FinTech.

By adding an additional 1,000 jobs to its current China-based headcount, HSBC’s workforce in-country will increase by 14%. HSBC currently employs 7,000 in Mainland China.

HSBC chief information officer, Darryl West said, “There is a lot more [HSBC] can do with technology in mainland China. The level of technology adoption and innovation in China is way ahead of other markets. {HSBC] see mainland China as a tremendous source of talent, not just for the local market but our technology operations globally. We are hiring very aggressively here.

HSBC plans to use its China-based technology centres to develop banking products for its global network, such as the bank’s UK mobile banking app – which is currently being developed and updated out of the bank’s Xi’an R&D site.

The bank’s investment in financial innovation in China comes in tandem with plans to invest US$15 billion in the next three years into China, as the central government eases restrictions on foreign ownership. Despite the limited physical presence of foreign banks in China compared to dominant domestic rivals being a challenge, HSBC generated nearly 40% of the bank’s revenue in Mainland China and Hong Kong last year.

The bank has identified the fact that consumers in China have embraced technological payment solutions in China in greater numbers than in the West as the main cause of their success in the market. HSBC hopes that further investment in technology and developing a wider portfolio of technology-based products will continue to negate the bank’s lack of a physical presence.

Lego building Chinese market brick by brick

 

New CBI member, Lego has announced that it will launch two exclusive sets to mark Chinese New Year. The move is the latest step made by the Danish toy manufacturer to develop its presence in China. Lego CEO, Niels B. Christiansen made the announcement at last week’s China International Import Expo. in Shanghai. At the launch, Mr. Christiansen was keen to point out to that the sets would be ‘The first time [Lego] have made sets for a specific country or region,’ an approach which demonstrates that Lego is well aware of the unique challenges that companies face when selling into the China market.

Lego has identified the China market as its most important market based on its growth potential. Lego’s presentation at the CIIE focussed on how Lego sought to inspire the minds of the next generation of Chinese children. Mr Christiansen set out Lego’s intentions in China clearly, "If you measure it by turnover, the United States is the biggest toy market in the world, as well as for Lego. But if you look forward, the potential, the opportunity and growth rates in China are amazing. So, if you look at growth potential, China is the most important market.”

The company is already enjoying very positive China sales. Across other markets Lego reported its first sales decline in 13 years. However, in China, Lego is reporting post double-digit growth.

In addition to launching two China-exclusive sets, Lego has also changed how it engages with the market by building up the brand’s profile online.

At the beginning on 2018, Lego partnered with Tencent, China's biggest social network and gaming company, to develop a series of games set in the Lego worlds and increasing the exposure of Lego’s characters in China. The partnership has been very successful, Lego’s online digital media materials have been downloaded 600 million times since the start of this year alone. Lego and Tencent are also partnering to expand the company’s presence in offline gaming over the next couple of months, by launching a video game which will be playable on all major gaming consoles.

Against such success online, the company has also taken steps to develop its offline presence. Lego will double its footprint in China, by opening 140 stores in more than 30 cities by the end of 2019, up from the current 47 stores in 16 cities.

Lego currently enjoys 3% market share in China. However, the company is confident that as the country’s IP environment continues to improve, Lego’s market share will increase as ‘copy-cats’ and products which closely resemble Lego designs disappear from the market. Lego’s CEO addressed this point directly during the product launch at the CIIE, "Creating a business environment with more respect and protection for intellectual property is going to be very important. [Lego] can engage much more, with a higher safety level when intellectual property is better respected [in China].”

The new Lego sets to celebrate Chinese New Year are expected to hit the shops in January of 2019.

Please read more here.

All the Coffee in China - a tale of two companies

Dear CBI Members and partners,

Please find a recent analysis of the online opportunities and challenges facing the growth of Coffee in China.

With grateful thanks to Joe Cash, Policy Analyst, in the CBI's Beijing team.

 

Download China Coffee briefing_180911 (1)

China National People's Congress 2018 - A Summary

 

Dear CBI members and partners,

Please find attached a useful summary of China's National People's Congress which concluded earlier this week.

Download CPW No. 173

Our grateful thanks to China Politics Weekly for sharing this issue.

(CNPC image above courtesy of www.scmp.com)

 

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 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. 

  

CBI Member DHL launches Vietnam domestic delivery operations

DHL eCommerce, a division of the world's leading logistics company, Deutsche Post DHL Group, has launched its nationwide domestic delivery operations in Vietnam.

The domestic delivery network will offer a high quality delivery service across Vietnam and a range of services tailored for the booming e-commerce industry, helping small, medium and large e-tailers and marketplaces increase their share amidst the rapidly growing Vietnam e-commerce segment.

"The Vietnamese e-commerce market represents a huge and relatively untapped potential for local retailers, e-tailers and marketplaces: in 2016, total e-commerce spending hit US$1 billion  despite barely over 50% of the population being online, " said Charles Brewer, CEO, DHL eCommerce. "With e-commerce spending expected to grow at around 23% per year between now and 2020,  local e-tailers need scalable, high-quality logistics solutions with nationwide coverage more than ever before."

Please read more here.