FOCUS 46 – May 2015

ISSUE 46 MAY 2015
ISSN 2054-5835 (ONLINE)
SMART
MONEY
How smartphone technology
is changing business in China
BUSINESS ROYALTY
RWHA members visit China
CARING ABOUT HEALTH
Coverage of the recent Chinese
healthcare delegation to the UK
CLOTH COMMERCE
An interview with fabric
wholesaler MOBUS
CONTENTS
p23
Issue 46
MAY 2015
China-Britain Business Council
head office
3rd Floor, Portland House,
Bressenden Place, London
SW1E 5BH
Tel: +44 (0)20 7802 2000
Fax: +44 (0)20 7802 2029
Email: enquiries@cbbc.org
02
06
NEED TO KNOW
China-Britain Business Council
Beijing, British Chamber of
Commerce in China
The British Centre, Room 1001,
China Life Tower,
16 Chaoyangmenwai Avenue,
Beijing 100020
Tel: +86 (0)10 8525 1111
Fax: +86 (0)10 8525 1001
Email: beijing@cbbc.org.cn
China-Britain Business FOCUS
produced by TLP Consulting Ltd
08
IN FOCUS:
HEALTHCARE
Editorial Director: Tom Pattinson
Managing Editor: David Friesen
Art Director: Jane Menon
Sub Editor: Nancy Pellegrini
10
12
14
The latest China news and facts
IN FOCUS:
SMARTPHONES
How the growing market is creating
new business opportunities
The recent Chinese
delegation in the UK
IN FOCUS:
HEALTH INSURANCE
An analysis of the current
market in China
FROM THE MARKET
Up-to-date sector information
INDUSTRY NEWS:
IPO UPDATE
Discussing the latest China
IP law and policy
IMAGES: CBBC
Capital Comments
status of the health insurance market in China.
We also have the latest
the way in which this
Communication is
sector-specific informasector is developing is
key for any business,
tion, including reports on
helping to shape other
particularly in today’s
pollution, urbanisation
areas of business, and
fast-paced environment
provide opportunities for and manufacturing.
where connectivity
The UK’s reputation
growth in a wide range of
is greater, and more
as a centre for creativity
industries.
complex, than ever
was highlighted in last
From mobile matters
before. FOCUS takes a
month’s coverage of
to medical, we also
look at this crucial area
the GREAT Festival of
through the prism of the take a look at the recent
Creativity. This month,
smartphone market. With Chinese healthcare
FOCUS has more from
delegation in the UK,
more than half a billion
some of Britain’s array
and analyse the current
users in China alone,
16
INDUSTRY NEWS: RHWA
18
THE BIG INTERVIEW: MOBUS
The Royal Warrant Holders
Association visits China
The fabrics specialist discusses its
China business and recent award
20
21
BUSINESS OPPORTUNITIES
22
EVENTS
23
24
MEMBERSHIP
The newest leads for UK companies
ANALYSIS: LIANGHUI
CBBC Chief Executive Stephen Phillips
looks at the ‘two meetings’ in China
Upcoming calendar dates and
sponsorship opportunities
The latest happenings from members
FROM THE NEWSROOM
China’s plans for a new global bank
of talent, including
information from the
Royal Warrant Holders
Association and its
members, as well as
an interview with fabric
specialists MOBUS and
its work in China.
And as always we
have the latest news,
events coverage and
market information,
and welcome your
comments, suggestions
and feedback.
STEPHEN
PHILLIPS
Chief
Executive,
China-Britain
Business
Council
PAUL
ATHERLEY
Chairman,
British
Chamber of
Commerce
in China
www.britishchamber.cn
1
NEED TO KNOW 需知
CHINA
NEWS
FOCUS
REDUCED
COAL TOLL
In March, the
Director of the
State Administration of Work
Safety (SAWS)
told a Beijing
press conference that coal
mine accidents
claimed 931
lives last year,
as the death toll
dropped below
1,000 for the first
time. Although
there is still more
progress to be
made on safety,
the recent fatality
figure represents
an 86.7 per cent
decline from the
toll of around
7,000 in 2002.
EXPORT DUTIES
ON RARE EARTHS
WERE ELIMINATED
ON 1 MAY, WHICH IS
LIKELY TO STIMULATE CHINA’S
EXPORTS OF
THE LIMITED
RESOURCE
PICTURE PROFILE
Chevrolet’s FNR concept car, one of the new cars debuted at the 2015 Shanghai Auto Show.
15.2
%
RISE IN CHINA’S Q1 TRANSPORT INVESTMENT, ACCORDING TO THE COUNTRY’S
TRANSPORT MINISTRY. A REPORTED RMB
320.5 BILLION IN FIXED INVESTMENT WAS
MADE IN PROJECTS INCLUDING RAILWAYS,
HIGHWAYS AND WATERWAYS IN THIS
YEAR’S FIRST QUARTER,
Jiangsu
Province has
announced
a US$57.1
million fine
on Mercedes-Benz, and a
fine of RMB 7.87 million
on some of its China
dealerships for monopolies in finished vehicles
and auto parts.
2015 YEAR OF CULTURAL EXCHANGE
The British Council has released the list of programmes for
the first ever Year of Cultural Exchange between the UK
and China.
For more details and to keep up to date with the Year of
Exchange, follow the British Council via:
Weibo @英国大使馆文化教育处 | WeChat: bc-china
Weibo @ArtsUK 艺述英国 | WeChat: @artsuk
Website: www.uknow.org.cn
LEFT: The
2
www.cbbc.org
Free Your Style 2015 RIBA Windows Project @ Shanghai Xintiandi
www.britishchamber.cn
3
Eurasia
Commodity &
Trade Expo 2015
After four successful sessions of the ChinaEurasia Expo, this important trade show has seen
constant improvement of its brand influence and
internationalisation, and continues to help develop the
Silk Road Economic Belt.
In 2015, the organising commission of the ChinaEurasia Expo is hosting the Eurasia Commodity and
Trade Expo. All are welcome to attend this exciting
platform for economic and trade exchange, investment
and business matchmaking. See you in August.
12-16 August
Urumqi, Xinjiang Province
Theme
Building the Silk Road Business Platform to Advance
Mutually Beneficial Cooperation between Asian and
European Industries
Contact
Huang Jing (Ms)
Secretariat of the China-Eurasia Expo
Tel/Fax: +86 991 5190442
E-mail: caeexpo@vip.163.com
IN FOCUS
PAGE 6
PAGE 10
PAGE 12
Smartphone
technology and
business
opportunities
The development
of the health
insurance market
in China
The latest industry
news, including manufacturing, urbanisation
and the environment
封面看 点
“It originated under ‘The Sign
Of The Peacock’ at a time
when London’s buildings had
names, not numbers”
MARK FINCH, PAGE 16
p8
The Chinese
healthcare delegation
exploring UK
opportunities
p6
IMAGE: ISTOCKPHOTO.COM
SME financing
options in China
www.britishchamber.cn
5
IN FOCUS 封面看点
PROFITS
CALLING
As China’s smartphone
market continues to
develop rapidly, new and
exciting opportunities
open up for both British
and Chinese companies,
writes David Friesen
ossibly the decade’s
most influential technology, smartphones
have changed millions
of personal and professional lives
forever. But while this is a global
phenomenon, the sheer size of
China’s customer base is a game
changer. In 2014, the number of
China’s smartphone users passed
500 million, making it the world’s
biggest market for these devices.
This helped attract the industry’s
biggest phone brands and bolster
domestic success stories, with
companies such as Samsung and
Xiaomi selling millions of units
annually.
However, it was Apple that
best caught the rising tide of the
country’s middle class spending
power and smartphone demand.
In Q1 2015, company revenues in
China rose 70 per cent year-on-year
to over US$16 billion, taking its
market share up to an all-time high
of 27.6 per cent.
This rapid growth will likely
continue as new products and
technologies emerge. Facing strong
competition, firms are seeking
6
www.cbbc.org
IMAGES: ISTOCKPHOTO.COM
ways to increase margins and
expand their product range. In
recent years this has produced
tablets, larger-screen phones
known as ‘phablets’, and now wearables such as the smart watch. To
make these products work, China’s
huge market will be crucial.
“Wearables are a key opportunity, as manufacturers are keen to
broaden the hardware platform to
increase margins, but the market
currently lacks the killer app
which will take it mainstream
beyond sports and niche business
use,” says Kirk Wilson, CBBC
Sector Lead for Information and
Communications Technology (ICT)
& Retail. “The company that can
provide the use cases to drive this
industry will do well.”
However, it is not just new
devices that present market
opportunities. As smartphone
use increases, so does the potential for parts, accessories, and
apps manufacturers. British chip
designer ARM is already seeing the
benefit. The company’s revenues
rose 22 per cent to US$339 million
in the first quarter of this year,
largely thanks to sales of 64-bit
smartphones such as the iPhone
6 and Samsung Galaxy S6. ARM
CFO Tim Score told Bloomberg that
royalties were up because of “very,
very high market share” in new
smartphones.
“UK companies are strong in
niche technology areas and have
designed a lot of the parts going
into mobile phones, from ARM
chips to Laird internal casings,”
says Wilson. “We’ll continue to see
innovative companies designing
core elements working closely with
the major manufacturers.”
Whether for games, tools or
platforms for selling other products,
apps are big business, but continue
to face strong competition. And
whilst Android and Apple’s iOS platforms are still the main contenders,
a growing list of Chinese domestic
platforms means greater competition
and diversity than ever before.
“There are new OSs from
Mozilla and Ubuntu, new hardware
from Chinese and Indian players,
and a proliferation of app-stores
along the Chinese model,” says
Wilson. “The previous stability
was good for app developers, but
the new model is healthier for
the platform as a whole and will
present opportunities. However, it
will also make life more difficult
for smaller companies hoping to
break through in volume across
platforms.”
Another challenge is the remarkably short lifespan of many apps.
The Chinese-language Moneyweek
magazine reports that an app’s
average life cycle in China is only
ten months, and around 85 per
cent of users delete downloaded
apps within one month.
Although this does present challenges for app creators, being able
to reach such a large consumer
base through smartphone apps is
a huge opportunity. This is why
retailers now see smartphone apps
as a way for consumers to access
and purchase their products.
ASOS, the UK’s largest independent online fashion and beauty
retailer, has teamed up with retail
technology specialists Red Ant to
develop and deliver mobile apps
for iPhone, iPad and Android
to the Chinese market. Working
with AppCommerce, Red Ant’s
award-winning mobile commerce
platform, ASOS will be launching the apps this summer as part
of its global growth strategy. “Our
AppCommerce platform will allow
ASOS to tap into this vibrant and
growing area,” said Dan Mortimer,
CEO of Red Ant.
However, it is not just UK firms
and global brands that see benefit
in the growing market. As smartphone sales have surged in China,
domestic brands have expanded
as well. Xiaomi has gained huge
Xiaomi sold 2.12
million phones
in just 12 hours,
generating
US$335 million
in revenues
momentum by offering affordable Android smartphones that
undercut Samsung and Apple.
To mark its recent fifth birthday
on 8 April, the company held a
sales blitz and shifted 2.12 million
phones in just 12 hours, generating US$335 million in revenues.
And whilst Xiaomi is still relatively
unknown internationally, the magnitude of China’s market means
selling abroad is less of a concern.
This competition is good for consumers, but less so for brands trying
to break into the market. Joining
Apple, Samsung, Xiaomi and
Huawei are a host of other Chinese
contenders such as LeTV, Coolpad,
OnePlus, Qihoo 360, and Meizu.
In addition, more competition may
mean more legal challenges. The
recent Apple-Samsung ‘Patent Wars’
over technology have been a key
mechanism shaping the market
globally, and now there are already
rumblings of lawsuits between some
Chinese makers. These and other
legal issues may prevent the smaller
companies from gaining a foothold
without proprietary technology of
their own.
Regardless, the overall market
looks set to continue to grow. This
means ultimately more opportunities for UK and domestic Chinese
firms to invent new technology,
create new apps, and access more
than half a billion consumers
through their mobile devices.
www.britishchamber.cn
7
IN FOCUS 封面看点
HEALTHY
COOPERATION
FOCUS takes a look at a recent high-level Chinese healthcare delegation
and its exploration of UK opportunities in London and Cambridge
roviding effective
healthcare remains
a core objective for
China’s future development. The country’s plan to allocate
US$1 trillion in funding by 2020
demonstrates its commitment to
providing healthcare services to all.
Furthermore, to create a holistic operations strategy, China recognises
the critical value of international
co-operation in education and information exchange.
The China-Britain Business
Council (CBBC), supported by the
UK Government’s GREAT campaign,
brought a high-level Chinese healthcare industry delegation to London
and Cambridge to experience the
strengths of the UK’s education and
healthcare systems, and to discuss
how the UK model can be successful in a Chinese context.
Delivering healthcare services for
the entire country is a considerable
and long-term challenge. China’s
demographic, social and economic
changes will test the country’s
ability to deliver effective healthcare
services to people regardless of their
age, income or location. The CBBC
delegation consisted of leading representatives of Chinese universities,
hospitals and businesses, as well as
8
www.cbbc.org
doctors, investors and government
organisations carefully selected to
represent all stakeholders involved
in the country’s healthcare development. Each gave their own perspective of China’s needs in education
and healthcare, and discussed how
the UK can contribute.
A senior group from King’s
College London (KCL) received
the delegation, and together they
discussed respective strengths in
clinical care and research, as well
as potential areas of education and
healthcare co-operation between
the UK and China. KCL’s approach
of working in close partnership
with NHS hospitals and international organisations resonated with
the delegation. By building structured education and healthcare
partnerships, UK universities like
KCL can deliver a pipeline of talent
with the academic and practical
skills the NHS requires, as well as
increasing employment opportunities for their students.
Further reinforcing this partnership approach, the delegation then
went to visit both Guy’s and Barts
NHS trust hospitals to experience
first hand how healthcare education
is applied directly within NHS hospitals. Whilst the close integration of
educational institutions, government,
hospitals and businesses has proved
crucial to both the Chinese and UK
education and healthcare systems,
the delegation also recognised the
NHS’s unique capacity to provide
quality access to healthcare for all.
In addition to the collaborative
approach to teaching and healthcare, the delegation was also struck
at how the UK uses technology for
innovative approaches to teaching
and training in healthcare. Visitors
witnessed a demonstration of Barts
NHS Trust teaching hospital using
Google Glass technology, so the
surgeon conducting the operation could give students real-time
insight on medical procedures.
With the patient’s full consent, NHS
surgeons used the site virtualmedics.org, allowing students to log in
and witness the procedures as well
as to ask questions during the operation. This brings practical learning
to students and teachers located
outside the geographical confines of
the hospital, such as in branch or
remote-area hospitals and clinics.
Using technology to share
knowledge across China’s vast area
would allow the country to deliver
consistently high levels of practical
healthcare education in regional
ORGANISATIONS
REPRESENTED
■ Shengjing Hospital of China Medical
University
■ Shanghai Jiaotong University
■ The Second Affiliated Hospital
of Zhejiang University School of
Medicine
■ Hainan Medical University ■ Fosun Pharmaceuticals
■ Alumni Association of China Medical
University Beijing
■ Guizhou CREC Tourism & Culture
Industry Development Co Ltd
■ International Health Exchange and
Cooperation Centre
■ Health Times, People’s Daily
OPPOSTITE PAGE:
LEFT: At CBBC’s China
Business Conference
2015;
RIGHT: Panel session at
King’s College London
THIS PAGE:
ABOVE: Discussing
China’s changing
healthcare landscape;
RIGHT: Networking
during the visit
cities as well as major urban
centres. The UK’s strengths in
innovation demonstrate why Britain
not only boasts a long heritage in
providing healthcare education,
but also remains at the cutting edge
of technology-based learning. The
UK’s strengths in partnerships,
innovation and technology-based
learning were recurring themes of
Cooperation Department, Guizhou
CREC Tourism & Culture Industry
Development Co Ltd, addressed the
panel on behalf of the group. He
expressed genuine interest in collaborating with UK organisations to
develop education and healthcare in
China. Fu’s experience of working
with CBBC, UKTI, Healthcare UK
and IHG International Hospitals
IMAGES: CBBC
The UK’s strengths in innovation
demonstrate why Britain remains at the
cutting edge of technology-based learning
the visit and were reflected in the
healthcare panel sessions at CBBC’s
China Business Conference 2015,
which took place on day two of
the visit. The delegation met CBBC
members from healthcare and education sectors, and discussed how
UK and Chinese companies could
work together on future healthcare
projects.
Fu Ming, Vice-Secretary and
Director, International Division, of
the Alumni Association of China
Medical University Beijing, and
President of the International
Group (UK) in Guizhou Province’s
£1 billion city development project
gave him an insight into the possibilities of Sino-UK co-operation,
and he remained positive about
future collaboration in healthcare
and healthcare education.
“We are very impressed by the
advanced modern management
system and world-leading innovative technology being used,” Fu said.
“Through the GREAT campaign,
these innovative technologies have
had a chance to be shown to the
world and shown to China. I fully
believe it will make great achievements in the win-win cooperation
between our two countries.”
The final day took the delegation to the Moller Centre, Cambridge, to understand more about
the UK’s National Health Service
blueprint and how developing a
strategic vision combining Britain’s
strengths in education, healthcare
leadership, business innovation
and R&D forms an important part
of delivering excellent healthcare
for all. Louise Wang from the
Moller Centre demonstrated the
UK’s expertise in healthcare leadership training. The centre’s series
of China leadership workshops
has created a dialogue between
senior leaders within the NHS and
Shanghai hospitals on how leadership in clinical care has been established in the UK, and how it can be
applied in China.
The week-long delegation visit
demonstrated not only why education and healthcare in the UK are
GREAT today, but also the UK’s
commitment to innovation and
partnerships to create an even
stronger system for tomorrow.
The Chinese delegation discussed
some immediate opportunities for
co-operation, and left with a clear
impression of why the UK is an
excellent partner for creating international solutions in education and
healthcare.
TO LEARN MORE ABOUT OPPORTUNITIES FOR YOUR BUSINESS IN THE HEALTHCARE SECTOR
CONTACT CHRIS.COTTON@CBBC.ORG
www.britishchamber.cn
9
IN FOCUS 封面看点
INSURING
THE
FUTURE
Rebecca Staddon speaks to
Howard Gough, CEO of Global
Employer Segment, Middle East and
Asia at CIGNA Insurance, about
opportunities for UK health insurance
companies in China
C
hina’s healthcare
system faces the dual
burdens of a growing
ageing population and
a rising life expectancy, with associated increases in
chronic diseases. According to the
paper Population Ageing and Economic Growth in China, 30 per cent
of the Chinese population is expected to be 60 or older by 2050, and life
expectancy is projected to rise to 80
years old that same year. As is evidenced by the World Bank indicator,
which calculates a nation’s number
of older dependents (over 64) versus
its working-age population, China’s
escalating Old Age Dependency Ratio means the Chinese government is
collecting lower tax revenues against
rising healthcare costs.
At the other end of the spectrum,
the emerging dynamic and demanding middle class is shaping the
industry’s direction. Drawn from
mounting international awareness
and advanced education, Chinese
middle class consumers are increasingly influenced by what is currently available, and what they can
10
www.cbbc.org
realistically expect government to
provide. When seeking high-quality
care, this group is more concerned
with access than cost.
Between 2009-2012, reforms
to China’s public health insurance system extended basic health
insurance to 95 per cent of the
Chinese population, and measurably reduced healthcare inequalities
between rural and urban populations. However, coverage for healthrelated expenses remains patchy for
most Chinese citizens, and healthcare quality is uneven.
Caixin news agency reports that
China will provide policy support to
encourage private health insurance
investment, which will augment
its overburdened healthcare sector.
This idea is a long time coming;
Beijing first mentioned developing
private insurance to supplement the
country’s public health insurance
in 1996, in China’s 9th Five-Year
Plan. Current Premier Li Keqiang
made similar declarations in 2012,
and in 2013, China’s Third Plenum
advocated pro-market approaches.
However, in 2014, the country
finally announced official policy
guidelines for the accelerated development of private health insurance.
These guidelines were confirmed
last month.
These policies offer new opportunities and challenges, as Howard
Gough, CEO of Global Employer
Segment, Middle East and Asia at
CIGNA Insurance, explains.
What are the opportunities for UK
commercial health insurers in China?
Howard Gough: The landscape in
China provides significant opportunities for private insurers to fill
coverage gaps in public insurance.
Looking at China from the macrolevel, it is clear that society has
many unmet needs. People currently finance healthcare through
a savings culture, with individuals setting aside money for future
events. This is not very efficient.
Insurance has smaller premiums,
which frees up individual wealth
for investments elsewhere.
Furthermore, alongside growing
affluence, Chinese citizens have
rising expectations of access to
state-owned enterprises or individuals? The segment they choose will
influence their business model.
(C)Understanding health needs on a
provincial, or city level. Since health
insurance needs vary markedly
from province to province and from
city to city, UK companies entering
China should become local quickly.
How can companies address these
challenges?
IMAGE: ISTOCKPHOTO.COM
The opportunities for
UK commercial health
insurers in China are
real and huge
better and more comprehensive
care facilities that the government
cannot provide. UK health insurance companies have experience
providing more individualised,
top-up health insurance schemes;
these supplement public healthcare and offer faster access to care
in both public and private hospitals. This makes UK companies
uniquely placed to compete and to
win business in China. The Chinese
government intends to move in a
similar direction to the UK, having
publicly stated that it supports commercial health insurance providers
and private hospitals. Recently the
government announced that hospitals could be 100 per cent owned by
private investors.
As I see it, UK commercial health
insurance companies have two areas
of opportunity. One is broadening
healthcare from the provision side
(for example, hospitals and facili-
ties), and the other is extending and
diversifying healthcare from the
insurance side.
What challenges do UK commercial health
insurers face in China?
HG: China’s regulatory environment
is not easy to navigate. Insurance
companies need a joint-venture
(JV) partner to be able to conduct
business. The greatest challenges
facing UK commercial health
insurers entering China are as
follows:
(A) Finding the right JV partner. This
will enable UK companies to enter
the market and navigate China’s
regulatory environment.
(B) Understanding and doing business
in China. To operate and succeed in
China’s commercial health insurance
market, UK companies need to understand and identify both their competitors and their consumers. Are UK
companies targeting multinationals,
HG: While finding a JV partner in
China is important, finding the
right partner is vital. When CIGNA
entered China, we set up a 50-50 JV
with China Merchant Bank (CMB)
so we could operate in the market.
Each partner brought different
things to the table. Where CIGNA
possessed the sector-specific health
and insurance knowledge, CMB
provided access to a loyal customer
base and the understanding of how
to operate in China. If you can find
the right partner this gives you
unparalleled access to the market.
UK companies should also enter
China with a solid understanding
of how their company adds value.
They should consider what China
has and does not have, and the
experience that their firm can bring.
This should be compelling to a
customer, and should add value to
a partner.
If you could provide two key takeaways for
UK insurance companies entering China,
what would they be?
HG: First, the opportunities for
UK commercial health insurers
in China are real and huge. But
equally, the clock is ticking in terms
of the time available for companies
to take these opportunities.
Second, UK companies – because
of their unique experience in the
healthcare value chain – are in an
excellent position to take advantage
of these opportunities. UK health
insurance companies already do
business in a model where the
commercial healthcare market supplements government healthcare.
In China’s nascent commercial
healthcare market, UK insurance
companies bring significant value
and knowledge to local Chinese
partners, who will have limited
experience in this area.
www.britishchamber.cn
11
INDUSTRY NEWS 产业内报
From The Market
THE LATEST SECTOR NEWS FROM CHINA
MANUFACTURING
In late March, Premier Li
Keqiang outlined China’s
strategy for becoming a
sophisticated modern manufacturer.
Discussed at the National People’s
Congress, the ‘Made in China 2025’
initiative intends to elevate the
perception of Chinese goods from
‘made in China’ to ‘innovated in China’.
SUPPORT FOR SMES AND EMERGING
INDUSTRIES
The State Council has announced a fund
of RMB 40 billion (£4.3 billion) to support
emerging industries, which will also
encourage private equity for small and
medium-sized companies.
Miao Wei, Minister of Industry and
Information Technology, also told the
media that small companies and start-ups
are key drivers of innovation and need
favourable policies. This will help China’s
economy to diversify and move up the
value chain.
12
www.cbbc.org
LEANER AND GREENER
MANUFACTURING
The State Council acknowledged the need
for better end products, less environmental damage and use of the internet for
intelligent manufacturing, thus improving
The core concept
of ‘Made in China
2025’ is innovation
competitiveness and the long-run prospects
of Chinese equipment exporters. To lead the
charge by 2025, the council selected ten
sectors; these included ICT, new materials,
alternative energy, aircraft engineering and
agricultural machinery.
Also, in the continued drive to streamline
state-owned sectors and create a more
competitive environment, the government
is merging China CNR Corp and China
CSR Corp, the country’s top locomotive
manufacturers.
WHAT’S BEHIND THE CHANGE?
‘Made in China 2025’ dovetails with the
Chinese administration’s ambition to move
towards a ‘new normal’ of slower but higherquality growth. The background for these two
concepts includes different factors:
■ Rising wages mean manufacturers can
no longer sustain the model of using cheap
labour and not owning core technologies.
■ Overproduction in traditional industries
leads to misallocation of resources.
■ Awareness of pollution is becoming a
major issue, with state-owned energy firms
having been identified as public enemy
number one in journalist Chai Jing’s recent
viral documentary Under the Dome.
UK INTEREST
The core concept of ‘Made in China 2025’ is
innovation. This bodes well for British companies. Opportunities should arise in fields such
as intelligent manufacturing, industrial automation, energy and the environment, ICT, internet
finance, data analysis and safety control.
IMAGES: ISTOCKPHOTO.COM
CBBC’s latest research looks at what the new ‘Made in China 2025’ strategy means for business
ENVIRONMENT
URBANISATION
A new report by real estate firm CBRE finds that Beijing’s smog is
starting to affect the real estate industry
‘Property and Pollution – The
Impact of Smog on the Beijing
Office Market’, a new report by
CBRE, has found that air pollution is beginning to negatively affect the appeal of Beijing
as a place to live and do business. This will
have serious implications for the real estate
industry.
The report is based on a 2015 survey,
when CBRE distributed a questionnaire to
90 Beijing-based office occupiers from
various industries. These included professional services, information technology and
telecommunications, manufacturing, retail/
consumer goods, finance, energy and pharmaceuticals/biological. The company also
conducted interviews with industry experts
and office landlords.
According to the report, the average
density of Beijing’s PM2.5 (particle pollution less than 2.5 micrometres in diameter,
more easily absorbed into lungs) reached
85.9 micrograms per cubic metre in 2014,
1.5 times higher than the standard 35
micrograms per cubic metre set by the
World Health Organisation. In 2014, Beijing
recorded 175 days ‘with pollution’ of which
45 days were ‘heavy pollution.’ The city also
witnessed an increase in the density of PM10
(coarse particle pollution) due to dust and
dry weather.
A separate survey published by Mercer
Consulting in March 2015 put Beijing a lowly
118th out of 230 cities worldwide, primarily
owing to its poor air quality hampering
living conditions.
PwC has cooperated with the
China Development Research
Foundation to release a
Chinese edition of its ‘Cities of
Opportunity’ report
The Chinese ‘Cities of Opportunity’ report is a series of city
surveys jointly released by
PricewaterhouseCoopers (PwC) China and
the China Development Research Foundation.
The report served as a reference for discussions at the China Development Forum on
21-23 March 2015, and showed how China’s
urbanisation is shaping not only its future, but
also its global development.
The report examines the overall development of 20 representative regional cities
according to ten indicators, including intellectual capital and innovation, importance,
technological readiness, healthcare, safety
and public security, traffic and city planning,
sustainable development and the environment, culture and local lifestyle, economic
influence, ease of doing business, and cost.
According to the report, Shenzhen,
Guangzhou and Nanjing are truly China’s
cities of opportunity. The openings there
derive from a solid foundation in innovation,
technology and sustainable development,
which promises long-term growth.
However, challenges exist when balancing district development. In this respect,
cities in the southern Pearl River Delta and
eastern Yangtze River Delta generally ranked
higher than cities in northeastern and western
interior provinces. Although western urban
centres Nanning, Urumqi and Lanzhou have
much potential as strategically important
cities in the ‘One Belt, One Road’ policy, they
had relatively low rankings here.
Finally, challenges were found in balancing development and cost. Development in
Shenzhen and Guangzhou has been costly,
whereas Nanjing provides a good model to
solve this issue. The report concludes that
striking the right balance between economic
development and rising costs is a problem
Chinese cities must address.
PwC describes the report as recognising the great challenges and uncertainties in
China’s ‘new normal’ economic environment,
but also acknowledging key opportunities
and development potential arising from deep
economic and social transformations yet to
be fully explored.
See the full report at www.pwccn.
com/home/eng/cities_of_opportunity_
china_2015.html
www.britishchamber.cn
13
INDUSTRY NEWS 产业内报
IPO
UPDATE
Shi Hui, Intellectual Property Officer at
the British Embassy Beijing, discusses
the latest IP developments
WeChat trade mark case favours
reputation over first-to-file
The Beijing IP Court has upheld
a successful revocation action
brought by major Chinese
Internet company Tencent
concerning the WEIXIN trade
mark. Weixin is a popular
Chinese social media application with over 440 million
subscribers, known internationally as WeChat. According to
Chinese media reports, the Court
agreed that the high reputation
of Tencent Weixin meant that
maintaining the earlier WEIXIN
mark would lead to confusion in
the market, despite the fact that
the earlier registration was filed
before Tencent used or applied
for the WEIXIN mark.
14
www.cbbc.org
Special enforcement campaign
to focus on certification & collective trade marks
The State Administration for
Industry and Commerce (SAIC)
has announced a nationwide
special enforcement campaign.
The focus of this campaign is
aimed at targeting potential violation of certification and collective trade marks. The campaign
runs from 1 April to 30 September 2015. During the campaign,
SAIC will coordinate local
government agencies to enforce
large-scale and cross-provincial
cases. According to SAIC, the
number of registered certification and collective trade marks in
China reached 2,575 at the end
of 2014.
Hong Kong revises trade mark
and other administrative fees
Hong Kong Intellectual Property
Department (IPD) has announced
revisions to the administrative
fees for trade mark applications,
with the new rate set at HKD
2,000 for the first class of goods
or services, and HKD 1,000 for
each additional class. The new
fee schedule came into effect
from 30 March 2015. Hong Kong
IPD received 40,063 trade mark
applications in 2014, an increase
from 37,092 the previous year.
A total of 956 applications
came from UK residents. Revised
administrative fee schedules
were also announced for design
registration and copyright
licensing.
IMAGE: ISTOCKPHOTO.COM
TRADE MARKS & GEOGRAPHICAL INDICATIONS
COPYRIGHT & CREATIVE INDUSTRIES
Content censorship checks to limit & delay online release of international TV shows
The State Administration of Press & Publications, Radio, Film & Television (SAPPRFT)
has announced new regulatory measures – effective from 1 April – limiting foreign
TV shows to a maximum of 30 per cent of content on major streaming platforms. The
content of foreign shows will also be subject to stricter supervision and must be preapproved by SAPPRFT. Pre-launch censorship checks cause distribution in China to lag
behind international release dates and have been associated with increases in online
piracy.
PATENTS, INDUSTRIAL DESIGNS & INNOVATION
Chinese Patent Law revisions released for consultation
The State Intellectual Property Office (SIPO) has released a new draft of the Chinese
Patent Law for public consultation. The deadline for submitting comments was 28
April 2015. These are the fourth set of comprehensive revisions to the Patent Law since
it was first drafted in the early 1980s. Major areas under revision include provisions
covering infringement of invention patents, utility models and designs; and invalidation procedures. SIPO has also released two further consultations on measures regulating the patent attorney profession and examination guidelines on rescinding protection
for integrated circuit layout design. Deadlines for these consultations were 14 April and
1 May respectively.
Service Invention Regulations released for further public consultation
The State Council Legislative Affairs Office (SCLAO) has published the latest draft of
Service Invention Regulations for public comment. The draft Regulations expand on
provisions in the Chinese Patent Law and the Law on Promotion of Science & Technology, which cover employee inventor remuneration. Comments on the proposals are due
by 2 May 2015.
Hong Kong Intellectual Property Department
received 40,063 trade mark applications in 2014,
an increase from 37,092 the previous year.
A total of 956 applications came from UK residents
OTHER ENFORCEMENT & TRADE SECRETS
2015 IP enforcement priorities
The State Council (China’s ‘cabinet’, overseeing the work of all government ministries) has issued the ‘2015 National Work Priorities for Combating IPR Infringement,
and Counterfeit and Shoddy Goods’. The annual document particularly
references special campaigns against online infringements, including the
Sword campaign (operated by the National Copyright Administration of
China, NCAC) and the Red Shield campaign (operated by the State Administration for Industry & Commerce, SAIC).
FOR MORE INFORMATION, PLEASE GET IN CONTACT WITH TOM DUKE, SENIOR IP LIAISON OFFICER
AT THE BRITISH EMBASSY BEIJING: TOM.DUKE2@FCO.GOV.UK
www.britishchamber.cn
15
INDUSTRY NEWS 产业内报
THE RWHA
VISITS CHINA
The Royal Warrant Holders Association (RWHA), along with
some of its member companies, joined the recent GREAT
Festival of Creativity and Trade Delegation to Shanghai to learn
about the opportunities, develop new business relationships
and gain market insights. FOCUS talks to some of the firms
involved and what they discovered during the visit.
he Royal Warrants
of Appointment are
a mark of recognition to individuals
or companies who have supplied
goods or services for at least five
years to the Households of HM
The Queen, HRH The Duke of
Edinburgh or HRH The Prince
of Wales. There are around 800
Royal Warrant holders representing a huge cross-section of
trade and industry, ranging from
individuals practising traditional
crafts to large organisations operating at the cutting edge of technology. They all share a commitment to the highest standards of
quality and service.
In light of the recent delegation in Shanghai, here are some
insights and information about
some of its members, and how
they are looking to take advantage of growing opportunities
in China.
There are
around
800 Royal
Warrant holders
representing a
huge crosssection of trade
and industry
16
www.cbbc.org
Thresher and
Glenny in London
THRESHER AND
GLENNY
Profile
Thresher & Glenny is one of England’s oldest gentleman’s tailors,
shirt-makers and outfitters, with
origins in the 1600s. It originated
under ‘The Sign Of The Peacock’
at a time when London’s buildings had names, not numbers.
Thresher & Glenny has held Royal
Warrants since 1783 and have
outfitted Lord Nelson, Garibaldi,
David Livingstone, Buffalo Bill
and all but four of the Viceroys
of India.
Insights
“I have been working in the
clothing sector for more than
20 years, both in B2B and B2C.
Thresher & Glenny is a wonderfully unique, 300-plus-year-old
company. We have not yet had
much experience in China, but I
have spent time in China with a
company I own called Uniforms
For Work, purchasing locally
made products.
The opportunity to attend
the GREAT Festival of Creativity as part of the RWHA Trade
Mission was especially enlightening, and with speakers of the
highest calibre. I think there are
significant opportunities for UK
premium-luxury businesses in
China. The Italians and French
have mostly had it their own way
for some time, and the UK has
been a little slow to capitalise on
the growth opportunities in China
in this sector. Consequently, there
is a strong demand for new (to the
market) luxury brands that have
more provenance, quality and
history.”
Mark Finch
Owner, Thresher and Glenny
FARROWS
Profile
Farrows is a full-service creative
agency with over thirty years of
experience in producing effective
communications, including graphic
design, digital media, branding, marketing, illustration and photography/
video. As an independently owned
family business based in Norwich,
the firm has worked with brands,
across all sectors, both nationally
and internationally. Whether it’s
Nick Farrow,
Farrows Chairman
marketing material for soft drink
experts Britvic or an online store for
luxury retailers Holland & Holland,
it provides marketing expertise and
brand knowledge. Other clients
include Bel Foods, Baxters, Lay &
Wheeler, Majestic Wines, City of
London and the Royal Household.
Insights
“The UKTI/CBBC/RWHA trip to
China was a fantastic opportunity to
attend the GREAT Festival of Creativity, meet Chinese businesses and to
look for business opportunities in
the worlds second biggest economy.
CBBC put on a trip I could never
have put together as a single small
company – many thanks for that.
I am scoping the possibility of
working with Chinese companies
bringing UK brands into China,
getting British brands ready for the
Chinese market and helping Chinese
companies to present to English
clients.”
Nicholas Farrow
Chairman, Farrows
DELPHIS ECO
IMAGES: RWHA AND MEMBERS
Profile
Delphis Eco is the UK’s leading
manufacturer of EU Eco label
accredited ecological cleaning
products for commercial use. Its
innovative products are highly effective, yet designed to have the least
possible impact on the user and the
environment. They are plant based,
highly biodegradable phosphate
and phosphonate free, and independently accredited by the European
Union. The entire range is produced
in the UK to stringent UK standards.
The company services the hotel
and recreation, catering, education,
healthcare and office cleaning environments via leading distribution
companies. The vision for Delphis
Eco is to lead the innovation of ecological cleaning products.
Insights
“As far as trade opportunities go, I
believe we have a significant advantage, having been on the ground at
the GREAT Festival of Creativity
when Premier Li’s announcement
was made regarding the need to
Part of the Delphis Eco
cleaning products range
address environmental issues.
We are an SME, but with limitless scale. We outsource production
to two factories in the UK, but also
have one in South Africa and one
on standby in Dubai. It is our 2015
intention to build international
demand so our production infrastructure is geared up. We already
have all of our products certified
for China.
The GREAT Festival was a brilliant way to experience the Chinese
market for the first time. What is
difficult to explain back in the UK
is just how big it is and how quickly
it’s developing.
We are the UK’s No1 manufacturer of government accredited ecological cleaning products, and with
the Chinese government committed
to cleaning up the environment, we
are potentially a perfect partner.
While in Shanghai, we forged
relationships with OCS, a global
cleaning company, restaurant M on
the Bund, and GIG Contract Catering
– all of which see the need to be
more sustainable. There is a need for
China to be more environmentally
focused, and we have a product
range that can help.”
Mark Jankovich
CEO, Delphis Eco
www.britishchamber.cn
17
THE BIG INTERVIEW 对话大人物
The recent 2015 Yorkshire and Humber China Business Awards
showcased local talent making good abroad. This month, CBBC
highlights MOBUS Fabrics, who won the Established Business in China
category. In the first of three interviews with winners, Linda Rosen talks
to Mike Presley, Chief Executive, and Lee Paxman, Logistics Director, of
MOBUS Fabrics.
an you briefly describe the nature of your business?
Mike Presley: MOBUS is specialist upholstery
fabric wholesalers and converters. Our core
business is the design, manufacture and
import of upholstery fabrics from China to the UK. We
supply our fabrics to sofa manufacturers, who in turn
supply major retail groups like DFS and SCS.
We’d been sourcing fabrics from Belgium and Italy,
but it was getting more difficult to have any sort of
market advantage. Our sales of £2.3 million were going
nowhere. So we decided to look into sourcing outside
Europe, and China looked like a good option.
What are you currently doing in China?
Lee Paxman: Our main set-up is a procurement company,
So what did you do first, and how did you get to where you
are now?
MP: In 2005 we made our first trip to China but we
which deals with QC inspection, and the development
and testing of products. The MOBUS Flame Retardant
plant finishes fabrics to ensure they comply with UK
fire regulation standards. These fabrics are both sold
to Chinese manufacturers and imported to the UK. We
have also developed sales to other markets such as Japan,
Korea, Thailand and the US.
18
Why did you decide to work in China?
MP: In 2005 and 2006 our business wasn’t growing.
www.cbbc.org
didn’t make any progress since our contact wasn’t an
expert on textiles. We then made a second visit 12
months later, found new partners, placed our first
orders and began to build the team. We started with
loose container loads and small quantities, and the UK
market success led to the development of new products.
We’ve developed fantastic
relationships – we’re not just
partners, but friends
What are the challenges of doing business in China?
LP: One of the day-to-day challenges is cultural. Our
Chinese colleagues are very positive and often don’t
want to tell us when there is a problem. As the years
have gone on, it’s been less of an issue since, with
more understanding and more contact, we’ve developed fantastic relationships – we’re not just partners,
but friends. The time difference is also a big factor but
we manage. The advantage is that if we send an email
at 5pm, we get a reply by 8am.
What insights or advice would you give to people considering
doing business in China?
LP: Finding the right partners is key. Also, people need
the courage and foresight to make those relationships
work. Give them confidence in their abilities, negotiate
prices and solve problems together. We’ve registered
MOBUS in quite a lot of markets, including China, to
protect our name
How does the future in five to ten years look?
MP: We believe that the growth we’ve experienced in
OPPOSITE PAGE: David Huang, Sales Manager of MOBUS C2C, China
domestic sales, showing a collection to a female customer; TOP: MOBUS
exhibition at the Design Shanghai in September 2014; ABOVE: Mike
Presley with one of the MOBUS China managers, Henry Xia, inspecting
the new coating line
IMAGE: MOBUS
We’ve had continual, dramatic growth from 2007 to now
of 10-20 per cent year-on-year, with UK sales at £15
million and total group sales topping US$35 million.
Why have you based your business in Hangzhou? Is it due to the
strong textile tradition?
MP: From our first visit to Shanghai, we realised that
although the mills have their showrooms there, we
needed to be working directly with the weavers. Their
home city of Hangzhou is the main centre for fabrics.
China can continue for the foreseeable future, especially from our strategically located base in Hangzhou,
although exchange rates and political factors can be
uncertain. We are concerned about the increasing cost
base in China – especially wages – and over ten years
we’ve seen a massive change in working practices.
Textiles are a high capital investment, and it’s not easy
to set up an alternative centre in another country.
LP: Our UK growth has been very successful over eight
years as a result of exports to Britain, and we have
high hopes for the Chinese domestic market in the
coming years. We are exhibiting at Design Shanghai
and hopefully at other shows in the future. This is our
first attempt at export to China from the UK, and we
expect more growth through our new warehouses in
China both for the Chinese domestic market and for
export to other Asian countries. This also means we
can sell directly to other UK sofa manufacturers’ plants
in east Asia. We’re building a new website so we can
better promote ourselves.
You mentioned you are exhibiting at Design Shanghai
– how important is that?
LP: Our Chinese partners encouraged us to take part,
and since it promotes high-end British products, we
hope it will lead to a higher
profile for MOBUS. However, it
could take six months for any
effects to be noticed.
www.britishchamber.cn
19
CBBC BUSINESS
OPPORTUNITIES
Part of CBBC’s mission is to find and/or generate new and exciting business opportunities
in a variety of sectors and industries. Here are May 2015’s latest leads
PROFESSIONAL &
FINANCIAL SERVICES
Beijing-based Enterprise
Seeking Partners from
Cambridge
A Chinese enterprise is looking for
healthcare, energy, or TMT partners in
Cambridge.
RETAIL
British FMCGs Sought by
China e-tailer
A Shenzhen-based e-tailer seeks
cooperation with British e-tailers,
retailers or department stores to sell
British products in China.
ADVANCED ENGINEERING, MANUFACTURING
& TRANSPORT
Agent Seeks Cooperation with Specialised Airport Equipment
Manufacturers
An agent in Beijing with access to Chinese airports can assist specialised UK airport
equipment manufacturers to develop in the Chinese market.
CREATIVE & MEDIA
Documentary Production
Partnership Sought
Documentary production partnership is
sought for the 2016 G20 Summit in the
east China region.
AGRICULTURE, FOOD & DRINK
British Snack Food Sought for Distribution in China
A Beijing-based company wishes to distribute snack food in China. It is interested in
distributing biscuits and crisps, as well as breakfast cereal.
EDUCATION & SKILLS
R&D Institutes or Universities Sought for Cooperation
A Chinese Maternal Electrocardiogram (MECG) company is looking for R&D institutes/
universities who have experience in early-stage warning of heart diseases.
A medical device company wants to discuss cooperation with UK gynaecological and
obstetrics medical device companies who are interested in distributing their products
in China.
Pharmaceutical Company Looking for New UK Drugs Already
Undergoing Clinical Trials
A Chinese pharmaceutical company is looking for new drugs from the UK in the oncology,
cardiovascular and psychological sectors, which are in Phase II or Phase III of clinical trials.
FOR INFORMATION ON THESE
AND OTHER CHINA BUSINESS
OPPORTUNITIES PLEASE VISIT
WWW.CBBC.ORG/BO
IMAGES: ISTOCKPHOTO.COM
HEALTHCARE & LIFE-SCIENCES
Company Seeks Gynaecological and Obstetrics Medical Devices
for Distribution
A LOOK AT
LIANGHUI
IMAGE: CBBC
CBBC Chief Executive Stephen Phillips offers
analysis of China’s ‘two meetings’ from the
recent Business Review Forum and why UK
businesses need to act
n 23 March in Beijing,
Guanghua School of
Management, CBBC
and BritCham co-hosted a forum on the recent Lianghui,
as the two annual meetings of the
National People’s Congress (NPC)
and the National Committee of the
Chinese People’s Political Consultative Conference (CPCC) are
known. The distinguished panellists covered a lot of ground over
the morning’s discussions. Let me
share some of my reflections on the
discussions here.
Paul Atherley, BritCham’s
Chairman, set the scene and highlighted how polarised views are
about China’s economic outlook.
Professor Cai Hongbin, Dean at the
Guanghua School of Management,
set out what could be seen as a
rather negative economic diagnosis,
but against a backdrop of China
having a comprehensive toolkit
of levers at its disposal. He talked
about confidence – something that
封面看点 ANALYSIS
UK businesses
need to take China
far more seriously
Stephen Phillips. CBBC Chief
Executive, speaks at the
Business Review Forum
is so important, as Europe knows
all too well.
Andrew Key from the British
Embassy provided a broad perspective of the meetings. One statistic
particularly stuck – one I used
recently CBBC’s China Business
Conference in London. Even with
lower growth, China’s GDP growth
in absolute terms this year will
equal one third of the UK’s total
economy. Put another way, absolute
growth this year will be nearly three
times what it was a decade ago.
There is a risk of being fixated on
growth percentages.
The first panel discussion focused
on financial services reform. Clearly
this is a key sector for the UK, and
one that the British Government is
making a high priority – whether in
ensuring London is the pre-eminent
RMB offshore centre outside Asia,
or by signalling its intent to be a
founding member of the Asian Infrastructure Investment Bank.
There was a good deal of discus-
sion about local government debt.
Again, the UK is engaged by sharing
its experience of public–private
partnership (PPP), an increasingly
hot topic in China. Over the last
few months CBBC, along with the
Embassy and members, have held
a series of seminars in cities like
Changchun, Harbin and Chengdu,
with more to follow. Another bright
spot was the prospects for commercial health insurance as China
continues to improve and reform
healthcare provision.
The panel concluded with a view
being expressed that we should
expect more innovation in financial
services – and certainly if what is
going on in the mobile payments
and e-commerce world in China is
anything to go by, the catalysts for
change exist.
A second panel considered what
the Lianghui meant for business.
There was also an interesting discussion around China Outbound investment. It is clear this is a defining
trend of our time. The opportunities
are diverse – from SOEs to individuals, with the drivers equally diverse
and not always financial. Gordon
Orr, Director and Chairman of
McKinsey Asia, highlighted one of
the great contradictions around the
Chinese Consumer. On the one hand
they are being told times are tough
and going to get tougher, and on the
other they are being encouraged to
spend. Can that circle be squared?
Time will tell.
The panel ended by observing
that UK businesses need to take
China far more seriously. I concur.
And they need to be looking ahead
to where new opportunities will
arise. For instance, from the ‘One
Belt, One Road’ initiative as part
of the reinvigoration of the Silk
Road. CBBC will soon publish some
research on what we think this could
mean for UK businesses.
So, if you share the view that
China still offers great opportunities
and possibilities, I encourage you
to be an evangelist and urge British
companies to act, and act now.
www.britishchamber.cn
21
UPCOMING
EVENTS
IN CHINA
An opportunity to sponsor the UK’s
premier business events in China
MONTH
MAY
CITY
EVENT
CATEGORY
Beijing
Beijing
Insights
Insights
Beijing
Changchun
Beijing
Beijing
Shanghai
Shanghai
Guangzhou
& Shenzhen
Chengdu
•Business Insight: UK Visa Review
•Business Insight: Cross-Border E-Commerce
Business
• Webinar: CBBC FTZ Reports Briefing
• Great British Brands Festival
• Debate
• British Business Briefing
• Sector Briefing on Financial/Professional Services
• Welcome Party for New Consul General
• British Business Briefing 1: Financial &
Professional Services (Shanghai Free Trade Zone)
• SME Working Group Quarterly Meeting
Chengdu
• WING Working Group Quarterly Meeting
Chongqing
Chongqing
• SME Support with SME Centre
• Area Introductions and New Regulation Briefing by
Chongqing CCPIT
• Chinese New Policy Change Briefing
• Silk Road Expo
Chengdu
Xi’an
Beijing
Beijing
Beijing
QUARTERLY
22
www.cbbc.org
Working
Group
Working
Group
Briefing
Briefing
Briefing
Trade Fair
• The Great British Brands Festival
• BritCham AGM and Summer Party
• Business Insight event: How E-Banking Can Help
UK Corporates in China
• Master Class Training: Business Etiquette &
Essential Corporate Awareness Course
• UK Financial Market Visit to North-East China
SLA/GBBF
Social
Insights
Briefing
Briefing
Forum
Guangzhou
Guangzhou &
Shenzhen
Shenzhen
Xi’an
Chengdu
Chengdu
• British Business Briefing
• British Business Briefing 2: Education
• Architecture & Construction Seminar, coinciding
with Shenzhen International Low-Carbon Forum
• UK-China Architecture Forum
• British Business Briefing 3: Energy, Infra &
Environment
• Maker Faire 2015
• Shaanxi International Education Exhibition
• AGM / Queen’s Birthday Celebration
• SWG Meeting
Chongqing
Chongqin
• British Summer BBQ
• Queen’s Birthday Mixer
Beijing
• HR Forum/Financial Forum/Healthcare Forum/
SME Forum/CSR Forum/Education Forum/
Marcoms Forum/Retail, Food & Drink Forum/
Legal Forum/Infrastructure & Property Forum/
Young Professionals Forum
Beijing
JUNE
Webinar
SLA/GBBF
Debate
Briefing
Briefing
Social
Briefing
Shenyang/
Changchun/
Anshan
Shanghai
Guangzhou
Shenzhen
Master Class
Roadshow
SLA/Forum
Briefing
Trade Fair
Social
Working
Group
Social
Social
Forum
GET IN TOUCH
If you want to know more
about our events or to learn more
about our range of packages for
event sponsorship, please feel
free to contact us.
Events & Sponsorship
Beijing, Qingdao, Shenyang
serena.li@cbbc.org.cn;
+86 (0) 10 8525 1111 ext. 336
Shanghai, Hangzhou, Nanjing
alec.hu@cbbc.org.cn;
+86 (0) 21 31007900 ext. 139
Chongqing, Chengdu, Wuhan, Xian
emily.yang@cbbc.org.cn;
+86 (0) 23 6431 3939 (direct)
Guangzhou, Changsha, Shenzhen
rita.huang@cbbc.org.cn;
+86 (0) 20 8883 2120 ext. 804
Membership
Assistant Director of Membership
anne.zheng@cbbc.org.cn;
+86 (0) 10 8525 1111 ext. 700
www.cbbc.org
Follow CBBC on
WeChat for the very
latest events, news
and analysis:
会员资格 MEMBERSHIP
British Chamber Golf Day
The BritCham and CBBC Golf Day was held on 24 April at Huatang International Golf Course – rated among the top 10 in
China – outside Beijing, where members and colleagues battled in teams of four for everything from Best Team to BestDressed Individual. The Friday outing was capped by a convivial barbecue and networking evening for close to 100 guests.
BOTH IMAGES:
The Huatang
International
Golf Course
British Business
Briefing
IMAGES: CBBC/BRITCHAM
Wuhan Visit
Wuhan is the chosen location for the UK’s fifth mainland consulate.
On 25-26 March, CBBC took a group of member companies to the
city as part of a 50-strong delegation to coincide with UK-Wuhan
Week (23-27 March).
Over 100 Chinese guests from local companies and government
agencies attended a reception with the delegation, at which the new
British Ambassador, Barbara Woodward, spoke.
“I have met potential partners this time and at your previous
events as well,” said one British delegate.
Shanghai-based CBBC Executive Director Jeff Astle led a
members’ roundtable with Wuhan East Lake High-Tech Development Zone, while London-based Executive Director Lise Bertelsen
met Governor of Hubei Province Wang Guosheng and Vice-Mayor of
Wuhan Liu Yingzi.
CBBC released its latest market report, ‘Wuhan – Centre of the
Middle Kingdom: a new consulate and opportunities for British
business’, during the visit. “The opportunities we now see in this
region match the UK’s offering incredibly closely,” said CBBC Chief
Executive Stephen Phillips.
Shanghai’s first British Business
Briefing of 2015 was held on 27
March, shortly after the successful
GREAT Festival of Creativity. Staff
from the Consulate-General and
CBBC gave a free briefing to
CBBC members on the political
and economic landscape in
the east China region.
Financial Services
Update
The Financial Services Update series, launched this year by the
British Chamber and our US, EU and Australian counterparts, began
on 7 April at the US Chamber with a presentation on the bond market
in China, featuring speakers from the US Embassy, JP Morgan,
KPMG and Standard & Poor’s. The British Chamber will host a
session on insurance later in 2015.
www.britishchamber.cn
23
China’s plans for a new
global bank are causing a
stir in the sector, but the US
is reluctant to get on board,
writes Tom Pattinson
welve months ago,
Chinese Premier
Li Keqiang spoke at the
annual Boao Forum
for Asia, and announced that China
was ready to discuss plans for a
newly formed global bank. The
Asian Infrastructure Investment
Bank (AIIB) would serve as a counterweight to the World Bank and the
International Monetary Fund (IMF).
As of early last month, nearly all
Asian countries and most Western
economies have signed up for this
China-led bank, with one notable
exception.
The United States has publicly
stated that it fears the China-dominated bank will not meet the “high
standards, particularly related to
governance, and environmental and
social safeguards,” the government
considers standard, and lobbied
other Western countries not to sign
the treaty.
Whilst it is true that Chinese
financial institutions are far behind
their counterparts on Wall Street
or in Tokyo (who back the Asian
Development Bank) it is America’s
fear of China’s continued rising
global influence that has led to their
reticence in supporting the AIIB.
China’s increased soft power and
economic influence in the region –
and increasingly, the world – will
diminish the United States’ regional
power and threaten the importance
and influence of the America-dominated IMF and World Bank.
After the UK became the first
non-Asian country to sign on with
the AIIB, the US publicly rebuked
Britain for rejecting American pleas:
“We are wary
about a trend
toward constant
accommodation of
China, which is not the
best way to engage a rising
power,” a US official told
the Financial Times.
America fears that
China will decide which
projects get developed in
Asia, and that Asian countries will increasingly look to
China for leadership rather
than the US.
America is nervous about the
potential for a China-dominated global
banking institute to threaten the dollar
as the global currency
In addition, America is also
nervous about the potential for a
China-dominated global banking
institute to devalue the US dollar, or
to threaten the dollar as the global
currency. The AIIB could continue
to weaken the dollar against the
RMB, as one’s demand decreases
while the other’s continues to rise.
China has donated the lion’s
share of the AIIB’s registered capital
of US$100 billion; however, in
March 2015, George Osborne, Britain’s Chancellor of the Exchequer,
pledged to lend money to the bank,
making the UK the first Western
economy to do so.
This led to an opening of the
floodgates as Germany, France and
Italy rapidly signed up, followed by
a previously hesitant Australia.
Osborne has been proactive in
encouraging Chinese investment
into the UK, working with China
on civil nuclear power plants, and
ensuring that the City of London
would become the base of the first
RMB clearing house outside of Asia.
As a founding member of the
new institution, the UK hopes to
not only shape influence, but also
to build further trust and partnerships between China and Britain, as
well as to continue to build bonds
between the City of London and
RMB institutions.
Some argue that the US’s closest
allies ignoring US requests already
shows a shift in financial power.
And as China has enabled the
Saudis and Iranians to get around
the same table, the world could be
hedging their bets with China rather
than the US in the future.
THE VIEWS REPRESENTED IN THIS ARTICLE ARE THOSE OF THE AUTHOR AND DO NOT NECESSARILY REPRESENT THOSE
OF THE CHINA-BRITAIN BUSINESS COUNCIL OR THE BRITISH CHAMBER OF COMMERCE IN CHINA
24
www.cbbc.org
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