China Direct

Economic Geography & China's Future - a Briefing from Macro Polo

Dear CBI Members and Partners,

Macro Polo has an excellent article analysing where China’s future economic hubs are likely to be and – spoiler alert – they’re the Pearl and Yangtze River Deltas. Nothing new there perhaps however the fact that these two regions and a selection of other key cities representing around 10% of China’s cities will likely generate some 90% of the PRC’s productivity and growth, is a startling future trend to consider.

To access the briefing please click here.

Our sincere thanks to Macro Polo and The Paulson Institute for kindly sharing this commentary.

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.

Shell signs major China deal as part of 40th anniversary celebrations

 

 

CBI member, Shell has announced that it has entered into an agreement with China National Offshore Oil Corp. to develop oils fields in the Pearl River basin.

The deal was arranged to coincide with China’s celebration of 40 years since the launch of President Deng Xiaoping’s policy of ‘reform and opening up’ and was inked following President Xi Jinping’s address to the nation.

The agreement covers 64,000 square kilometres in the Pearl River basin, to a depth of 3,000 metres.

Shell will be awarded parcels within the Pearl River basin, which it will then be able to explore in collaboration with CNOOC, Total SA and Chevron Corporation - as well as 6 smaller extraction companies. CNOOC issued a statement shortly after the signing ceremony stating that: “This is one of the real actions China is taking to show the world it’s willing to open business to the whole world […] the agreements will facilitate the establishment of a long term and stable cooperation and share the development opportunities to a certain extent in the Strategic Cooperation Areas.”

The Pearl River basin exploration contract builds on Shell’s existing partnership with CNOOC, and demonstrates that Shell is successfully managing to present itself as a trustworthy and reputable foreign partner to China’s oil & gas SOEs. The latest agreement sees the two companies diversify their engagement and adds oil & gas to their existing portfolio, which centres around petrochemicals production.

The announcement to extend their partnership finishes off a successful year for the joint venture; the CNOOC-Shell Nanhai Petrochemicals Plant opened in May. The site is the largest ethylene complex in China and utilises Shell’s industry-leading proprietary OMEGA, SMPO and polyols technologies. Ethylene is sold to the agricultural sector where it is used as a natural plant hormone to stimulate the ripening of fruit.

Shell and CNOOC hope to start producing 1.2 million tonnes per year of ethylene and deliver an oil output of 2 million barrels per day by 2025.

Please read more here.

 

JLR drives I-Pace brand in China

CBI member, Jaguar Land Rover handed over the keys to the first Jaguar I-Pace sold in China last week, at a launch event held in conjunction with the Guangzhou International Automobile Exhibition.

JLR launched the car to much fanfare and announced that the I-Pace launch was the start of a new campaign aimed at re-invigorating the JLR brand within the China market.

JLR have taken a two-pronged approach to marketing the I-Pace, and announced a new collaborative project aimed at improving the company’s satellite navigation offerings as well as a new racing series featuring the I-Pace car.

The British car manufacturer will collaborate with the China Tourism Association, the Geographical Society of China, Chinese National Geography and Baidu to launch ‘Land Rover Road Trip Ratings,’ a new satellite navigation system which will be incorporated into JLR vehicles.

JLR hopes that collaboration with these organisations will help it develop enhanced intelligent navigation services for use in its cars sold into the China Market. The system will provide drivers with alternative routes which are practical, scenic and fun to drive. JLR hope that the system will become the market leader in China and enhance the distinctive brand experience and appeal.

The second step the company has taken to enhance its brand and broaden appeal is to launch a new racing series featuring the I-Pace car.

At the same event in Guangzhou, JLR announced the launch of the Asia I-Pace trophy, featuring Chinese race drivers, Wang Tao and Zhang Yaqi.

The Jaguar I-Pace Trophy will be the world’s first championship for mass-produced all-electric cars and will serve as an official supporting race of the Formula E Championship.

JLR plans to use the series as a way of promoting the brand in China, and spectators will be able to see the Jaguar I-Pace Trophy cars in action at the Chinese Sanya Grand Prix and the Hong Kong Grand Prix; both in March 2019.

The series is also sponsored by JLR’s navigation partners, Baidu.

According to JLR’s marketing executive vice president, Paul Hu, “JLR’s taking the lead in cooperation with Formula E proves that the British premium automobile brand owns cutting-edge electrification technologies and forward-looking strategies […] the unfolding of the Jaguar I-Pace eTrophy Championship will be a good chance to popularize the Jaguar I-Pace in China.”

JLR has started to sell the I-Pace in 29 cities across China and plans to roll it out across all 224 dealerships in the country.

 

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.

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. 

  

CBI member ABB wins $40 million order to enable power link in south China

 

CBI member ABB has won an order of over $40 million to provide advanced power equipment to the 800 kilovolt (kV) Dianxibei-Guangdong ultra-high-voltage direct current (UHVDC) transmission link.

The project, operated by China Southern Power Grid Company Limited, one of the country’s two major grid operators, is expected to transmit 5,000 megawatts (MW) of power over a distance of more than 1,950 kilometers.

The order was booked in the third quarter of 2016. The link will transmit clean hydro-power from Yunnan province in southwestern China to the Pearl River Delta region in Guangdong, one of the most densely urbanized regions in the world and a major economic and manufacturing hub of China.

The link has the capacity to meet the annual power consumption needs of over 10 million people based on average per capita national consumption. It will also help the region to significantly reduce coal consumption and mitigate carbon dioxide and sulphur dioxide emissions.

Please read more here.

All Aboard HSBC's Pearl River Express

 

 

CBI member HSBC announced a train sponsorship in the Pearl River Delta, branding half of the trains running between Shenzhen and Guangzhou as the HSBC Express.

 

With the HSBC Express making its inaugural journey from Guangzhou East Railway Station to Shenzhen Lo Wu Station on 06 April 2016, the sponsorship signifies HSBC’s long-term commitment to China’s economy.

 

It is estimated that close to 30 million passengers each year will board the HSBC Express. Other than external branding of the train carriages, HSBC will also bring passengers travelling on the HSBC Express in-train TV content to help them stay informed and connected during the 72-minute journey.

 

Connecting two of the largest and busiest metropolises in the Pearl River Delta, Guangzhou and Shenzhen, the HSBC Express reflects HSBC’s commitment in supporting human ambition through connectivity.

 

Please read more here.

BP releases results for second quarter of 2015

BP releases results for second quarter of 2015

 

CBI member BP released its results for the second quarter of 2015, reporting that its new technology-advantaged purified terephthalic acid plant at Zhuhai in China is now fully commissioned and operational.

Please read more here.