China Direct

Airbus continues to invest & expand in China

 

CBI member, Airbus has announced that it has signed a Memorandum of Understanding with China’s state-owned, China Aviation Industry Corporation to expand and increase investment in China over the next decade.

The MoU was signed on Wednesday at the China International Import Expo., and sets out how Airbus will shift its manufacturing of the A330 widebody aircraft in Tianjin to focus on the A350 aircraft, with the first A350 expected to roll off the production line in Tianjin in 2021.

Besides the Tianjin A350 final assembly line, assembly lines of Airbus aircraft in Europe will also increase production, to six aircraft per month for the China market by the end of the year, a 50% increase compared to the text of Airbus’s original MoU.

Guillaume Faury said: “[Airbus] have developed strongly and positively in China. Airbus is one of the most deeply involved original equipment manufacturers that are in cooperation with China, and we will continue to invest.”

Airbus now takes about 50% of market share in China, compared with just 9% in 1996. In addition to manufacturing aircraft, Airbus also manages an Airbus Engineering Centre in Beijing and a Shenzhen-based China Innovation Centre, pioneering research into intelligent air-borne solutions to city navigation.

 

Standard Life Aberdeen granted China private pensions license

 

CBI member, Standard Life Aberdeen has been granted regulatory approval to operate a pensions business in China.

Standard Life Aberdeen’s pensions business in China will be run in partnership with its joint venture partner, Tianjin TEDA International under the name, Heng An Standard Life. It is only the ninth insurance company, and the first joint venture business, to have received this approval.

Keith Skeoch, chief executive of Standard Life Aberdeen said: “As the pensions market in China looks set to go through fundamental reform to meet the challenges of an ageing population, [Standard Life Aberdeen] is exceptionally well positioned to support pension savers in this important market. through our long-term relationship with Tianjin TEDA International we have the infrastructure, distribution and local knowledge to develop our important strategic partnership in the world’s second largest economy. It builds on Standard Life Aberdeen’s long history in China.”

The Chinese government opened the domestic pensions market to foreign companies in 2018. To date, nine insurers have been approved to set up a pension business. The granting of the license extends Standard Life Aberdeen’s offering in China, which also includes creating and selling investment funds to institutional clients.

To find about more about Standard Life Aberdeen in China, please follow the link.

 

BP announces new Tianjin Lubricant Plant Investment

 

CBI Member BP has announced that it has started the construction of a new lubricant blending plant in Tianjin.

The new plant is BP’s largest investment on a single lubricant blending plant to date and will see BP spend $214 million.

BP aims to bring the plant into operation by the end of 2021, it will specialise in producing grease and diverse kinds of lubricants for automobile, manufacturing, navigation and aviation with an estimated annual output of 200,000 tonnes.

BP has identified premium lubricants as a key area for potential growth due to rising demand from the China market. The Tianjin plant will be the third processing centre BP has opened in the Mainland.

It will be strategically located within the Tianjin Economic-Technological Development Area, in Binhai New Area, Tianjin, leveraging Tianjin’s location as a key transport hub and enabling BP to ensure a stable supply of raw materials and distribution of products.

Please read more here.

Airbus expands Tianjin production & celebrates 10 year anniversary

 

 

CBI Member, Airbus has announced plans to increase production at the company’s A320 final assembly line in Tianjin. The European aviation manufacturer has said that it is enjoying fast and stable growth within the China market, with the A320 in service with all the ‘Big 4’ Chinese airlines.

Currently, Airbus assembles an average of four-and-a-half A320 aircraft a month in Tianjin, and it will deliver a total of 52 A320s this year. The company plans to increase production so that by early next year, the Tianjin assembly line will produce five A320 aircraft a month, with this figure increasing to six A320s a month by the end of 2019.

The production ramp-up follows an agreement made between Airbus and the Chinese Government during French President Emmanuel Macron's state visit to China in January.

This week also sees Airbus celebrate 10 years of operations in Tianjin. Over the last decade, the facility has expanded to become the company’s third-largest single aisle assembly line after Toulouse and Hamburg,

In line with its expansion plans, the aircraft manufacturer also has plans to expand A330 production at the facility. According to Airbus COO, Francois Mery, "[Airbus] plans to extend the work in Tianjin to the A330neo, and we are expected to deliver the first A330neo aircraft by early 2020.”

According to Airbus, by 2020, the total output from the cooperation between Airbus and Chinese firms is expected to reach more than $1 billion. The value of cooperation last year was $641 million.

Airbus currently takes approximately half of market share in China.

Please read more here.

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

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.

Standard Chartered announces aviation leasing platform in Tianjin

 

CBI member Standard Chartered announced that through Standard Chartered Bank (Hong Kong) Limited, it has established an aviation leasing company – Pembroke Aircraft Leasing (Tianjin) Limited (“Pembroke”) – in the Dongjiang Free Trade Port zone (DFTP) in Tianjin, China. This makes Standard Chartered the first foreign bank to set up an aviation leasing business in the DFTP.

With this set up in the DFTP, Pembroke will be able to offer Chinese airline clients a greater selection of aircraft leasing solutions to enhance their business operations. Standard Chartered and Pembroke Capital Limited (the Bank’s wholly-owned aircraft leasing company) provide comprehensive aviation financing and leasing services to support the global aircraft leasing business.

It currently manages a fleet of over 130 aircraft, serving major airlines in 29 countries around the world.

Please read more here.

Airbus flying high in China with new A330 Centre in Tianjin

 

Airbus has inaugurated its A330 Completion and Delivery Centre (C&DC) in Tianjin, China, taking additional steps in the expansion of its global footprint and strategic partnership with China. At the same time, the first A330 to be delivered from the C&DC was handed over to Tianjin Airlines, located at the same site as the Airbus Tianjin A320

Family Final Assembly Line and the Airbus Tianjin Delivery Centre, the A330 C&DC covers the aircraft completion activities including cabin installation, aircraft painting and production flight test, as well as customer flight acceptance and aircraft delivery. Some 150 Chinese staff members of the C&DC were trained by Airbus experts in Toulouse.

Please read more here.

Gatwick Airport set to launch direct flights to Chongqing in June

 

CBI member Gatwick Airport is launching the U.K.’s first ever direct flights to Chongqing – one of the world’s largest urban centres and a major manufacturing and transportation hub in southwest China.

 

The twice-weekly, year-round flights will then continue to Tianjin, China’s fourth largest city. Starting from 25 June, Chinese carrier Tianjin Airlines will fly the Airbus A330 on the new Gatwick-Chongqing-Tianjin route, the airline’s first long-haul flights outside Asia and one that complements its existing network serving over 100 cities across China.

 

Both cities are currently not flown to from the U.K. Please read more here.