Please find a short overview of SW China and opportunities for UK and international business in this vibrant, diverse region of mainland China:
Download SW China Briefing March 22
Our thanks to the British Consulate in Chongqing for kindly sharing this information.
Dear CBI members and Partners,
After 5 years of construction Chengdu's 2nd airport has opened to complement its original Shuangliu hub.
Chengdu is now the third city in China to have a second airport after Shanghai and Beijing.
For more information and details please review the link below.
Chengdu's new Tianfu Airport now open
China Direct would like to thank Airport Technology for the information.
CBI member, Siemens opened its first artificial intelligence lab outside of Germany in Beijing last Wednesday. The company’s first industrial AI hub in the Asia Pacific region, the lab has been opened to pioneer research into applicable solutions to help Chinese clients counter faltering industrial output across the Mainland.
The lab will house around 50 data scientists, but will be connected to around 800 Siemens researchers and engineers around the globe who will be available virtually to offer applied AI solutions to Chinese clients.
Dr Roland Busch, chief operating officer and chief technical officer at Siemens said, “Artificial Intelligence is a core technology for a successful digital transformation and offers tremendous opportunities for all industries. [Siemens] are excited to work with Chinese customers on their most urgent topics to make production more efficient and raise the availability of systems like machines or trains.”
The opening of the Beijing AI lab was paired with an announcement made by Siemens in Chengdu, that the company planned to open an additional R&D facility within the city, that would partner the Beijing facility by integrating cloud computing into Siemens’ AI solutions service provision.
The Chengdu R&D centre, schedule to open this coming Wednesday, will partner the Beijing lab and help industrial customers digitise their manufacturing processes and integrate cloud computing processes, such as Siemens MindSphere digital platform, into Alibaba’s cloud computing operations for managing industrial output.
Speaking at the event, Zhu Xiaoxun, executive vice president of Siemens China said, “Chinese business clients have great expectations of AI, and are willing to believe it could solve all the problems that they face. [Siemens’ new lab in Chengdu] will be able to help better inform clients about the role of AI in solving specific problems and the kinds of data [factory owners] need to collect to utilise AI to bring about a complete solution [to support their industrial operations].”
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.
CBI member, Novartis is celebrating 8 years in Chengdu, Sichuan Province this week. The Swiss pharmaceutical company is pioneering a carbon-sink forestry project there, with the intention of developing natural infrastructure to off-set local CO2 levels by re-foresting areas of land which have been destroyed by industrial logging.
The project has been designed to absorb 1.2 million tonnes of carbon dioxide over the next 30 years. To accomplish this, 21 million trees have been planted on 4,095 hectares of deforested mountainside.
Novartis is also offering local businesses training on how they can contribute to sustainable development by tackling climate change.
According to Liu Hongbao, director-general of the Sichuan Forestry and Grassland Administration, “The project has already paid dividends since the launch […] and has offered us innovative ways of using targeted, poverty-relief measures to help people lift themselves out of poverty and improve their standard of living. Related technical integration and demonstration projects have also been launched this year in the context of the Novartis carbon-sink project, which are expected to serve as templates for the development of the green and low-carbon future economy.”
The forest provides another good example of the opportunity that exists in China for foreign firms capable of collaborating with the Chinese state - be it the government or enterprise - by offering consultancy services and international connectivity. The Novartis carbon-sink forestry project is the first carbon-sink forestry project carried out in direct collaboration with a multinational company in China, and builds off the success of similar projects launched in 2010 in Argentina and Mali.
Chen Xiaojing, vice-president of Novartis Group China said that the forest demonstrated the company’s commitment to being in the China market, and that the company looked forward to “A further 30-50 years of careful forest management [to ensure] the Novartis carbon-sink project in Sichuan makes its full impact. […] Novartis is willing to join hands with the government and society in contributing to sound environmental stewardship. This is part of the Novartis’ environment sustainability agenda and its long-standing commitment to China.”
The project hopes it extend purview over the coming years and incorporate enabling greater bio-diversity within the forest. The project is located within one of Sichuan province’s newly introduced bio-diversity hotspots, and is home to the Giant Panda and other endangered species.
Please read more here.
CBI member InterContinental Hotels Group (IHG®), one of the world’s leading hotel companies, has today announced the signing of ten new deals under seven of its brands in Western China.
The ten hotels will span several different tiered cities and well-known destinations in Sichuan, Chongqing, Shaanxi, Yunnan, Gansu, and Guizhou Province.
Building on the momentum of its existing and successful multi-brand hotel portfolio in the area, IHG will further strengthen its leadership and tap into the large potential of this fast-growing market. Boasting distinctive natural beauty and rich cultural heritage, the western area of China has been a worldwide attraction.
Enjoying great opportunities brought by policies like the Belt and Road Initiative, the cities’ economies continue to boom with the acceleration of urbanisation, as well as the upgrading of transportation and other supporting facilities.
According to world leading hotel and tourism consultancy, Horwath HTL, market expectations for the overall performance of the hotel sector in Western China have risen significantly in recent years.
Please read more here.
CBI Member Zodiac Aerospace Services is proud to work together with Sichuan Haite High Tech, in an effort to strengthen the aerospace and the MRO industry in China and relocate repair capabilities closer to Chinese operators.
The two companies have signed a long-term agreement to combine their expertise and strengths to provide Chinese operators with a local repair service for toilets, evacuation slides, technical seats and Electrical Inserts.
Until now, this reliability, quality, safety and punctuality was only available through the component manufacturer’s repair shops. Construction of the repair facility has already begun in Chengdu, where HAITE’s deep understanding of local operators’ needs and lean and efficient organization will be combined with Zodiac Aerospace Services’ technical expertise.
Please read more here.
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.
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.
The CBI helps create and sustain the conditions in which businesses in the United Kingdom can compete and prosper for the benefit of all.
Recent Comments