China Direct

China's rare earth consolidation - Insights

 

Dear CBI Members and Partners,

Please find insights into the latest situation regarding Rare Earths in China below:

China Rare Earth Consolidation - cause for concern

Our thanks to East Asia Forum for kindly sharing this briefing.

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's Climate Change Tracker - UK government 'greenest' ever?

 

 
Yesterday, the CBI launched its latest climate change tracker, which is an interactive tool developed by the CBI in consultation with CBI members that provides business commentary on green progress made by the UK government and business community. 

According to the latest tracker, the UK government is at risk of failing to achieve emission reduction targets despite its ambition.

CBI Chief Policy Director Katja Hall said, "One year on from pledging to be the 'greenest government ever', the coalition has still not delivered the policy landscape needed to ensure we meet tough emissions targets."

The government has made progress in a number of key areas, including providing greater clarity on Climate Change Agreements and funding for the Green Investment Bank.

However, investor confidence remains low, and the UK has fallen from 5th place to 13th in a 2010 global ranking of low-carbon investment conducted by the Pew Environment Group.

The tracker shows that only one of the thirteen indicators is on track. Progress is lagging on the process of decarbonising buildings, transport and industry.

The CBI is calling on the UK Government to take a number of actions in the next six months, including:

     • Publish the Electricity Market Reform white paper by July, providing greater clarity on the transitional 
       arrangements for renewable energy
     • Finalise the nuclear Generic Design Assessment and designate the energy National Policy 
       Statements as soon as is practical
     • Incentivise businesses to invest in energy efficient measures by taking action to simplify the Carbon 
       Reduction Commitment (CRC) and wider issues of policy overlap
     • Enact the Localism Bill by the end of 2011 and include provisions to streamline the fast-track 
       process for major infrastructure and ensure that crucial sub-national infrastructure can be delivered

Please click here to read the CBI's full press release and list of recommendations and here to access the interactive climate change tracker.

China Direct would like to thank Ben Cooper and Alex Fergusson at the CBI's Beijing and London offices for this information.

Stop Press - 2011 EU China Business Confidence Survey

 

 
[Image courtesy of www.europeanchamber.com.cn]

The findings of the annual EUCCC business confidence survey will be circulated tomorrow, Wednesday 25th May 2011.

China Direct will be attending the official Survey Launch event in Beijing and looks forward to sharing with members key headlines and observations shortly.

EUCCC Business Confidence Survey

Background:

Since 2004, the European Chamber has conducted an annual survey of member companies to monitor their views on the business environment and gather their opinions on trade and investment in China.

The European Chamber Business Confidence Survey 2011 is once again produced in partnership with Roland Berger Strategy Consultants, and draws on feedback from nearly 600 European companies – the highest participation rate ever.

This year's survey offers insight on European business confidence in the Chinese market at a time of impressive growth, rising competition, and the release of China’s 12th Five Year Plan.
 
The results – the most comprehensive and wide-ranging set of data yet gathered for this annual survey – will provide the most up-to-date and in-depth analysis on sentiment among European businesses about the Chinese business environment.

This information will have important implications for Chinese and European policy-makers, businesses, organizations as well as the general public.

China's Twelfth Five Year Plan (2011-2015) - the Full English Version

 

The Delegation of the European Union in China has very kindly prepared a full English translation of China's 12th Five-Year Plan (2011-2015).

In mid-March 2011, the National People's Congress (NPC), China's top legislature, approved the new Five-Year Plan (FYP).

China's FYPs are blueprints which outline key economic and development targets for the country for the next five-year period.

This is essential reading for businesses seeking to either expand their existing China operations or position themselves in the market for the first time.

To download the full translation of the current FYP please click below:

Download Full translation 5 Yr Plan 2011-2015

 

Stop Press: 2011 Amcham China Business Confidence Survey out now

 

 

The American Chamber of Commerce in China released its annual White Paper yesterday noting that whilst US businesses continue to perform well there was continuing concern over China's industrial policies and their longterm implications for US business.

A bilingual press release can be accessed here.

To download the White Paper in full please click here.

China Direct would like to thank Amcham for circulating this report and looks forward to the EUCCC Business Confidence Survey and White Paper later in 2011.

 

Chinese President Hu Jintao's US visit - key business issues

 

 
[Images courtesy of www.crflags.com & www.mansfield.edu]

On the eve of President Hu Jintao's visit to the US the CBI's Beijing and Washington DC teams share with you below an overview of the key policy issues likely to feature during this important trip.

This follows a highly successful UK visit (09-12 Jan) by Vice Premier Li Keqiang which resulted in more than 2.6 billion GBP in business contracts being signed. 

China Direct would like to thank policy analysts Matt Bricken ([email protected]) in Washington DC and Ben Cooper ([email protected]) in Beijing for preparing this briefing.

 Download Hu US visit - key issues Jan 2011  

China's Indigenous Innovation policy & Foreign Business - 'eating bitterness in solitude'?

 

[Image courtesy of www.itic.org]

James McGregor, who hosted CBI members at APCO's Beijing offices in September, provides a fascinating insight into China's indigenous innovation strategy.

This is essential reading for businesses looking at their China strategies for 2011.

To view Mr. McGregor's article please click here.

China Direct would like to wish you all a very merry Christmas!

Rare Earths - significant disruptions to US supply chain by 2012?

 

[Image courtesy of www.seekingalpha.com]

China Direct's Washington DC office recently gauged the mood amongst business and academia at a Rare Earths Event at the Centre for Strategic & International Studies (www.csis.org).

This is what they ascertained:

David Sandalow, Assistant Secretary for Policy and International Affairs, US Dept of Energy, presented highlights from the recent DoE report, Critical Materials Strategy 2010 (executive summary attached below):

• Rare earth material are not rare. They can be found all over the globe. However, China currently represents 95% of production.
• MolyCorp’s Mt. Pass mine in California just got its permits and should start producing in 2 years.
• Short term there is a risk of supply disruption for a few specific elements.
• Long term there will be an increased demand for rare earth materials but there will also be breakthroughs in technology that will allow man-made substitutes to be used.
• Rare earth materials only represent a small fraction of the total cost of many products (esp. Cars). Therefore a price rise in materials will not greatly raise the overall cost of the product. This situation will not send the necessary market signals to investors to increase domestic production.

The second panel consisted of rare earth investment consultants Anchor Group, the Chief Scientist for materials from GE, and the DC Rep of Japan Oil, Gas and Metals National Corporations (JOGMEC).

• China controls the rare earth market for at least the next five years.
• Significant disruptions to the US supply chain of rare earth by 2012 is highly likely. 
• Many end users do not realize that they will soon face a rare earth minerals problem.  
• Man-made ‘material substitution’ could reduce end users' dependence on rare earth by 80%, recycling could add an additional 10%.
• China’s export quotas of rare earth have increased by 40%-70% over the past year.

For an Executive Summary please click below:

Download Critical_Materials_Summary (2)

 

 

 

EU-CHINA Summit Brussels 2010 - A win win summit?

 

 

The EU-China Business Summit took place in Brussels in early October.

Five key business issues were raised:

1. Government Procurement

2. An EU-CHINA bilateral investment agreement

3. Rare Earth Mineral quotas

4. Climate Change

5. Trade Imbalances

For more information please visit the following site or download the Joint Business Declaration below:

Download Joint Decl EU-CH Bus Summit Oct 10