China Direct

AstraZeneca launches $1 billion China healthcare investment fund

 

CBI member, AstraZeneca has announced that it is launching a new fund with China International Capital Corporation to invest $1 billion in China’s healthcare sector, predominantly to fund research and development.

According to AstraZeneca CEO, Pascal Soriot, the fund will look to invest in Chinese firms, with companies involved in a life-sciences park AstraZeneca helped to open in the city of Wuxi last year, to be among the first to be brought into partnership. AstraZeneca will be a minority partner in the fund, and will mainly play an advisory role in selecting investments and supporting firms.

Mr. Soriot said: “[AstraZeneca] can help by choosing some of those investments [and] we can also help along the way with start-up companies, developing products and helping them find their way around the world. […] it is a substantial investment on our side, but also for our financial partners.”

The company reportedly also plans to expand an existing research and development centre in Shanghai from 450 employees to 1,000 and to establish a new artificial intelligence innovation centre in the city.

AstraZeneca is performing particularly well in China, where sales have doubled since 2012 and foreign drugs manufacturers have witnessed a softening regulatory environment for pharmaceutical firms.

Mr. Soriot said that AstraZeneca wanted to start making drugs it could export globally from China, with areas of opportunity having been identified in oncology and respiratory diseases. “Historically, until today, [AstraZeneca’s] Chinese team has been developing global products for the Chinese market. We now want the Chinese team to take the global leadership on some projects,” he said.

Whisky galore - Diageo launches tailor-made brand for China

 

 

CBI member, Diageo has launched a new whisky in China that has been tailor-made for the market. Described as a “premium taste of east and west”, Diageo’s Zhong Shi Ji whisky has been created by Johnnie Walker’s scotch whisky master blender, Craig Wallace, in collaboration with the company’s joint venture partner in China, Jiangsu Yanghe Spirits, and baijiu master Zhou Xinhu.

 Zhong Shi Ji is made through a “unique” production method which incorporates the best of Scottish whisky distilling and Chinese baijiu brewing. This includes taking steps to “soften” the whisky through the traditional Baijiu brewing process of “Chinese ceramic pot maturation.” By taking this step, Zhong Shi Ji has an ultra-smooth taste, which makes it a good accompaniment for meals and formal occasions.

C.H. Chu, managing director of Diageo Greater China said, “Diageo has long regarded China as one of the world’s most important emerging markets for whisky. With accelerated urbanisation and a fast growing middle class, Chinese consumers are demanding both choice and quality. We believe that Zhong Shi Ji can play an important role in the Chinese dining occasion, launching a new era for whisky drinkers in China. Through our new partnership with Yanghe, Diageo is well placed to leverage our strengths in craftsmanship, brand building and distribution.”

Whisky is quickly growing in popularity in China. Subscribers to China Direct may wish to return to a briefing issued by fellow CBI member, the Scotch Whisky Association from August of last year, which highlighted how a downturn in direct whisky exports to China, that had hampered the growth of the industry since 2012, was recovering with direct exports to China being worth £61 million in shipment value over the course of 2017/8. Corroborating this trend, Diageo reported that there had been a 147% increase in the number of Chinese visitors to their Scottish distilleries over the same period.

 

BASF agrees terms for $10bn Guangdong Province investment

 

Regular readers of China Direct will remember that in September, BASF featured on the site having announced plans to invest $10 billion in a new chemical production site in Guangdong Province. Fast forward to the beginning of 2019, and BASF have announced that a framework agreement has been signed between the German chemical giant and Guangdong Provincial Government.

BASF’s new chemical complex will be built in Zhanjiang city, amid wider initiatives to develop the city as one of Guangdong’s key economic and production hubs.

The agreement between BASF and Guangdong Provincial Government is in the form of an MoU and outlines the planning details for the $10bn project. According to a statement issued after the signing of the MoU, it is the intention of both parties to work to promote the “Idea of advanced technology and smart technologies to maximise resource and energy efficiency to reduce the impact on the environment. [BASF’s new plant] is set to contribute to the industrial transformation of Guangdong.”

Specifically, the site will cover 9 square kilometres and have an annual production capacity of 1 million tonnes of ethylene, which is widely used in plastic manufacturing.

Martin Brudermuller, chairman of the board of executive directors of BASF said, “Chemical output in China is expected to grow 50% of the global total by 2030, and Guangdong stands as an important growing market for innovative chemical products. Our new site will support customers in multiple industries. We aim to help our customers to grow sustainably with our portfolio of products, solutions and services, and at the same time establish new concepts to improve the sustainability of our own operations.”

Guangdong Province is actively courting foreign investors. New rules on foreign direct investment introduced in September 2018 now allow foreign investors to establish solely foreign-owned enterprises in a number of industries: aviation, design, new energy vehicles, ship manufacturing & maintenance, drones, gas-station construction and railway technologies. Subsequently, FDI in Guangdong has grown by 3.1% y/y (2017-2018) to 88.93 billion RMB.

Investment from the UK into Guangdong Province grew at a rate of 93.8% over the first half of 2018.

The Guangdong site will add to BASF’s on-going international Verbund Project. Globally, BASF currently operates six Verbund sites: two in Europe, two in North America, one in Malaysia and one in China. The Nanjing Verbund Project is managed through a 50:50 joint venture with Sinopec.

To read more about BASF’s investment in Guangdong, please follow the link.

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.

Tate & Lyle announces expansion in Jiangsu Province

CBI member Tate & Lyle PLC, a leading global provider of speciality food ingredients and solutions, is pleased to announce that the expansion of capacity, and process upgrades, at its STA-LITE® Polydextrose facility in Nantong, Jiangsu Province, China, is now complete and on line. 

This expansion increases capacity at the facility in Nantong by more than three times from when it was acquired by Tate & Lyle in 2014. As part of the expansion, manufacturing and quality processes at the facility have been significantly enhanced. Tate & Lyle has also improved the facility’s packaging capabilities, and implemented advanced environmental management infrastructure and systems to deliver on its commitment for responsible manufacturing.

STA-LITE® Polydextrose is a soluble fibre with proven nutritional benefits that food producers use to provide fibre enrichment, and body and texture, in reduced sugars and calorie products. It is used in products such as cereals, drinking yoghurts, fermented beverages, biscuits and pastries.

Please read more here.

Walgreens Boots Alliance to Invest in Chinese Pharmacy Chain GuoDa

Please refer to the attached Press Release for more details of CBI member WalgreensBootsAlliance (WBA) and its 40% stake in the Shanghai based C

Download WBA - Accord Guoda release FINAL 06122017 7am G

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 Ahead Of The Curve In China Investment Strategy - CBI

 

EMBARGOED: 00:01 Hours, Thursday 02 November, 2017UK AHEAD OF THE CURVE IN CHINA INVESTMENT STRATEGY – CBI

UK is China’s second largest European trading partner  

The UK is shifting its investment into inner regions of China and into new sectors, ahead of the curve of other nations, according to the CBI’s first ever Sterling Assets China report.

Download CBI China Sterling Assets Report

In 2016, the UK was China’s second largest trading partner in the European Union (behind only Germany) and the eighth worldwide, doing £55 billion worth of trade in goods with China. Indeed, after the USA and Germany it is the only country in the list of China’s top nine trading partners not in the Asia Pacific region.

The UK also ranks eighth in terms of foreign direct investment (FDI) into China over the last decade, at £4 billion. However, unlike other nations, Great Britain is shifting its focus from coastal to inland provinces, which have historically received a smaller share of FDI, so as to mirror the Chinese government’s Belt and Road development plans. Over half (57%) of British investment in 2015 (over £880 million) went to inland regions, led by Heilongjiang (£313 million) in the north east and Henan (£276 million) in the centre.

Of the £18.1 billion worth of UK exports to China in 2015, Shanghai tops the list (£4.2 billion), followed by Beijing (£2.4 billion) and Guangdong (£1.3 billion). 21% of British exports to China were in transport technology (automotive, rail, air and maritime), 12% in machinery & electrical, 8% in chemical products and 5% in metals. The UK’s top service export was travel (£1.5 billion), with 270,000 Chinese visiting the UK and 91,000 Chinese students enrolling in British universities – far more than from any other country.

Guy Dru Drury MBE, CBI Head of China, said:

“The Sino-British relationship is a great success story. As we delve deeper into the Golden Era of ties between China and the United Kingdom, we have so much to offer each other, and British business is keen to play its part.

“From cars to chemicals, and services to schools, British organisations – especially many smaller companies – are tapping into a growing market in China, one that plays to the UK’s best competitive strengths. With the consumer market worth over £3.3 trillion, instantly recognisable British products are a particularly strong match for a growing generation of affluent Chinese. Moreover, 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.”

Dame Barbara Woodward DCMG OBE, Her Majesty’s Ambassador to the People’s Republic of China, said:

“Supporting UK-based companies to invest and operate overseas and become global businesses is part of our strategy to expand mutually beneficial trading relationships around the world. This is especially so in China, the world’s second largest and fastest growing economy.

“This report showcases a wide range of British investment and highlights the strengths and growing confidence of British companies. Investment in China by British companies can generate wealth for the UK, support British jobs, help build UK-based supply chains, and support China’s own economic development.

“As we continue to address the challenges for businesses investing across the globe and help them to make the most of opportunities, positive and proactive engagement of UK and Chinese businesses remains vitally important.”

Between 2015 and 2016, greenfield project investment into China exceeded £2.25 billion. The financial services sector saw the highest value investments (£488 million), followed by logistics (£292 million), consumer products (£268 million) and business services (£209 million).

02 November 2017

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.

The CBI 2017 Annual Conference will take place on Monday 6th November at the NEW LOCATION of the InterContinental London – The 02 hotel. Media can now register here (clicking on the “Media” box, entering the code 7286). Please note that journalists will be asked to upload a photo as part of the registration process. The closing date for applications is Thursday 02 November.

Follow the CBI (@CBItweets) on Twitter and on the day of annual conference using the hashtag #CBI2017.

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 China (@CBIBEIJING) on Twitter.

BASF to expand chemicals business in Nanjing

CBI member BASF will build a new specialty amines plant at its existing wholly owned site in Nanjing Chemical Industry Park in China.

The new multi-product plant can manufacture 21,000 metric tons per year and further extends BASF’s amines portfolio at the specialty amines complex in Nanjing.  The plant is scheduled to come on stream in 2019 and will mainly produce 1,2-Propylenediamine (1,2-PDA), n-Octylamine (n-OA) and Polyetheramine (PEA).

“BASF offers a wide range of amines globally, and this investment reflects our continued commitment to meeting the growing market demand in Asia Pacific,” said Stefan Blank, President, BASF Intermediates division. “Building on decades of experience in developing and manufacturing amines, this new plant will further strengthen our global leadership in these versatile intermediate products.”

“This investment will help us to meet the increasing Asia Pacific demand for specialty amines used as intermediates in a diverse range of industries and applications, such as epoxy formulations, crop protection agents, spandex and biocides for the coatings industry,” said Narayan Krishnamohan, Senior Vice President, Intermediates Asia Pacific, BASF. “Through this expansion, we will be able to better serve our customers in Asia Pacific with steady and timely supply of quality products.”

Please read more here.

Jaguar Land Rover roars ahead in China

 

 

CBI member Jaguar Land Rover has opened its Chinese engine plant as part of its RMB10.9 billion joint venture with Chery Automobile Ltd.

Please read more here.