China Direct

IHG checking Inn with China hotel expansion

CBI member, International Hotels Group (IHG) has announced that it has expanded its franchise offer in Greater China with new signings for its brands, Crowne Plaza and Holiday Inn.

IHG signed 14 new franchise agreements last week at the South China Roadshow, held at the InterContinental hotel in Shenzhen. One new Crowne Plaza hotel and one new Holiday Inn & Suite will open in Chengdu, Longquan Yi.

These signings were accompanied by announcements that a further three new Holiday Inn hotels will open in Daocheng, Qinhuangdao and Suihua, and nine additional Holiday Inn Express properties will open in cities and tourism destinations including Chengdu, Shenzhen, Foshan, Yangjiang, Jiangmen, Jinjiang, Fuxian Lake, Lishui and Nanjing.

Kent Sun, chief development officer, IHG Greater China said: “As a pioneer in the hotel industry, the development of our franchise offer demonstrates our ability to move at pace, continue to innovate and react to the changing needs of the market and owners, based on our global expertise.”

The latest franchise offering is in addition to IHG’s current management model provision, which has enjoyed over three decades of operations in China. IHG began experimenting with a franchise offering in 2016, when it launched its Franchise Plus model for its Holiday Inn Express brand. The Franchise Plus model for Holiday Inn Express was tailored for the China market but based on IHG’s international franchising expertise – where it stands out as one of the largest franchisors in the hotel industry with over 80% of hotels operating under the franchise model globally. The Franchise Plus model transferred well to China, and its success is reflected in the 124 Holiday Inn Express hotels open in the region, coupled with the fact that IHG has another 166 hotels in the development pipeline.

According to IHG, the China market has reached a level of maturity and sophistication that now is the time to expand franchise model catering in-market for evolving owner demand in what is a fast-evolving industry.

IHG has big ambition in China. The brand currently operates 380 hotels, but has a further 334 hotels in the development stage under 10 brands across luxury to mainstream segments. With China anticipated to become the world’s most travelled to tourism destination by 2030, and more and more Chinese people travelling domestically, there is huge un-tapped market potential.

Please find more about IHG’s latest offerings in China here.

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.

UK & Chinese Universities engineering solutions to global challenges together

The next generation of engineers from the UK and China have met in Beijing to develop new technical and creative skills that will help them solve global challenges.

The students have been taking part in the Future Engineers’ Leadership and Innovation Academy, which was developed through the UK-China University Consortium on Engineering Education and Research (UK-China UCEER) and aims to build UK-China teams to support both countries’ manufacturing ambitions.

The Consortium was established over the past six months with seed funding from the UK Department of Business, Energy and Industrial Strategy and led by the British Council in China. Initially, the Consortium is focusing on innovative technologies in intelligent manufacturing and sustainable energy that will help reduce greenhouse gas emissions as both countries transition to a low carbon economy.

The Consortium is the first of its kind to partner leading UK universities with the top engineering research institutions in China. It is led by CBI member Queen’s University Belfast and Southeast University (Nanjing) and is made up of six UK universities, including CBI member University of Nottingham and nine universities in China.

Over a period of two weeks, 26 PhD students from across the Consortium, including two from the University of Nottingham have been enhancing their creative, technical, transnational communication, and leadership skills. The Academy is hosted by the Beijing Institute of Technology (BIT) and delivered by staff from Queen’s University Belfast and BIT.

Working together in transnational teams, the students have applied their innovation and leadership skills to topics such as disaster management using unmanned aerial vehicles. This is the first step in building enhanced transnational PhD educational opportunities between the UK and China in engineering. 

Southeast University and Queen’s University Belfast also intend to sign a Joint Declaration on establishing a UK-China University Consortium on Engineering Education and Research at the UK-China High Level People-to-People Dialogue, which will take place in London in December.

Professor Stan Scott, Dean for Internationalisation, Queen’s University Belfast and Director of the Future Engineers’ Leadership and Innovation Academy (FELIA) Programme, commented: “I’m delighted that after six months of planning FELIA has been successfully delivered in Beijing. During the two week programme the twenty-six research students from 13 universities across China and the UK have developed skills that have enabled them to work effectively in transnational teams. The networks they have tapped into will prove invaluable in their research careers and bodes well for productive UK-China collaboration.” 

Professor Andrew Long, the University of Nottingham’s Pro Vice Chancellor for the Faculty of Engineering said, “The University of Nottingham is proud to play its part in the Future Engineers’ Leadership and Innovation Academy (FELIA) Programme. I am delighted that two of our students participated in this key initiative, which highlights the importance of education in engineering between the UK and China. As one of six Consortium partners, the University is proud to play its role in strengthening links between UK and China, as well as building expertise and nurturing our relationships with leading Chinese universities.”

Jazreel Goh, Director Education China at the British Council, said: “The UK and China have a long history of education collaboration. Indeed, with more than 275 joint programmes and institutes, the UK and China are world-leading partners in transnational education. But if we want to take forward our shared ambitions of increasing international collaboration, accelerating the growth of world-class universities, and boosting our engineering capacity, we need to look beyond institution-to-institution partnerships. With the establishment of the UK-China University Consortium on Engineering Education and Research we have taken a significant step towards making those ambitions a reality and initiating a new era in UK-China education collaboration.”

Prof Ye Zhirui, Director of International Co-Operation, South East University: "The UK-China University Consortium on Engineering Education and Research is unique and of great potential because it has specific goals and focus and aims at high level collaborations. The FELIA program is a perfect example of how the consortium can quickly respond to the need of the new era internationalization development of China higher education and the ambition of UK top universities to expand their presence in China. We really appreciate the efforts made by Queen’s University Belfast and BIT which has ensured the successful operation of this programme.”

Group photo of the Future Engineers Leadership and Innovation Academy

China Sterling Assets Report - Chinese Version

Dear CBI Members and Partners,

Kindly find the Chinese version of the CBI's first China Sterling Assets Report attached below for your reference.

Many thanks.

Download CBI China Sterling Assets Report_Chinese

Download CBI China Sterling Assets Report

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.

British Airways boosts its UK-China network with new China Eastern Airlines Partnership

CBI member British Airways boosted its network between China and the U.K. with a new partnership with China Eastern Airlines, one of the three major airlines in mainland China.

Under the agreement, customers of China Eastern Airlines are now able to buy tickets for onward connections to seven cities in the U.K., namely Aberdeen, Belfast City, Edinburgh, Glasgow, Leeds, Manchester, and Newcastle with British Airways, with a China Eastern Airlines flight number added to the sectors.

By the same token, British Airways customers flying to China can connect to Kunming, Xi’an, Nanjing, Hangzhou, and Chongqing with the Shanghai-based airline. These tickets are now available for booking on ba.com, with a British Airways flight number added to the sectors.

British Airways currently operates direct flights from Beijing, Shanghai, and Chengdu to London.

What’s more, British Airways customers flying to the five Chinese cities leveraging the new code-sharing facilitation will have the additional benefit of earning Avios loyalty points on the China Eastern sectors.

Richard Tams, British Airways’ Executive Vice President for China, said, “The U.K. is home to such a unique blend of incredible cultural heritage, modern innovations, as well as marvelous shopping and sight-seeing delights, we are ready to welcome more Chinese travellers to the U.K. to see for themselves. This agreement not only opens up further the China market to our U.K. customers, but also gives our China-based air travellers access to our extensive network in the U.K.”

He added, “With an extensive worldwide network and a reputation for great customer service, China Eastern Airlines is a partner of choice for British Airways. Our collaboration will allow us to serve an even bigger spectrum of the blooming outbound travellers from China.”

Philips provides International Youth Culture Centre in Nanjing with energy-efficient LED lighting system

CBI member Philips provided the International Youth Culture Centre in Nanjing with an energy-efficient, dynamic, colour-changing, computer-controlled LED lighting system.

Transforming the city’s skyline with a 16 million colour palette, the façade of the 68-storey building, which houses a five-star hotel and offices, costs less than €114 a day to light. In this instance, the computer controlled LED lighting system saves an additional 60% in electricity used compared to normal LED colour lighting.

A total of 700,000 nodes of Philips iColour Flex MX LED lights accentuate the building’s fluidity and curves while Philips Vaya Linear LED lights create the striking vertical lines. The 300-metre high structure looks even taller due to Philips Vaya Flood LED lights, which project into the night sky.

The lighting system enables the building owners to change colours and create spectacular light shows with a click of a mouse button. The building was designed by leading architect Zaha Hadid.

Please read more here.