are you ready for china
TRANSCRIPT
AreyoureadyforChina
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DoingBusinesswithChina
inthe5meofthe‘NewNormal’
HailingYuChinaBusinessAdvisor
TheNorthernPowerhouse
Agenda
• OverviewofnewpolicyiniCaCvesandtheirpotenCalimpact
• SectorspecificbriefingandopportuniCes• HowCBBCcanhelp
§ The‘NewNormal’ofslowerbutsustainableChineseeconomicgrowth
§ The13thFiveYearPlan-businessopportuniCesoverthenext5
years§ MadeinChina2025–whereUKcapabiliCesmapontoChina’s
desiretomoveupthevaluechain§ China’sBeltandRoadiniCaCve–workingwithChinese
enterprisesinthirdcountrymarkets§ RegiontoregioncooperaCon–linkingtheNorthern
PowerhousewithChina’sgrowth
KeyPolicyIniCaCves
The‘NewNormal’
China’srecentlyreleased2015GDPgrowthfiguresof6.9%-Theslowestgrowthinitseconomyfor25years.Shouldwebeworried?
“China’sfuturelieswithitsshoppers,notitsexporters,and
services,incomesandconsump9onareresilient…Even5%
growththisyear,thelowendofreasonablees9mates,
wouldaddmoretoworldoutputthanthe14%expansion
Chinapostedin2007.Chinaisnotincrisis.”---theEconomist,29August2015
TheConsumpCon
AssetDistribuConvs.IncomeDistribuCon
• AutomoCvesalesvolumes• Propertypricesandsalesvolumes• Smart-phoneshipments• IKEA/Starbucks/Coachopenings
&performance• Paymentsystemande-commerce
usage• Passengerrailtrafficandforeign
holidays• Publishingrevenuesandbox-office
receipts• Privatesectorhealthcare
expenditure• LNGimportvolumes• Anaverageof12,000new
enterprisesregisteredeverydayinChina.
TheSlowdowninPerspecCve
DoubleDigitGrowthConCnues
InlandRegionsChongqing(11%)Guizhou(10.8%)3NewFreeTradeZonesTianjin(9.4%)Guangdong(7.9%)Fujian(9%)
(Ifyoulookintherightplaces)
The‘NewNormal’
Investmentandexports
InnovaConandConsumpCon
AndImports
The13thFive-YearPlan
WinningSectors• InformaContechnology• Biotechnology• Agriculturaltechnology&
equipment• High-endmanufacturing• Environmentallyfriendly
industries• New-energytechnology• Retail• EducaCon• Healthcare• Elderlycare
TheBeltandRoadIniCaCve
7keysectors• Infrastructure• Financial&ProfessionalServices• AdvancedManufacturing&
Transport• Agriculture• Energy&Resources• E-Commerce&LogisCcs• Healthcare&LifeSciences
13keyregions• XinjiangAutonomousRegion• FujianProvince• ShanxiProvince• GansuProvince• QinghaiProvince• NingxiaProvince• SichuanProvince• ChongqingMunicipality• YunnanProvince• JiangsuProvince• GuangdongProvince• HainanProvince
• CBBCandtheShanghaiMunicipalCommissionofCommerce(Cofcom)co-hostedaroundtableontheBeltandRoadiniCaCveinJanuary2016
• Abrand-newCBBCreportontheBeltandRoadiniCaCvewillbereleasedin2016
Downloadthe2015report:
SECTIONONE-AroleforUKcompaniesindevelopingChina'snewini5a5ve 1 SECTIONTWO-AnanalysisofthesectorswithinOBOR 2
SECTIONTHREE-AnanalysisoftheregionsandprovinceswithinOBOR 3
TheBeltandRoadIniCaCve
The‘Mad inChina2025’IniCaCve
10KeySectors:• Integratedcircuitsandprofessional
equipment• High-endnumerical-controlmachine
toolsandroboCcs• AviaConandaerospaceequipment• Marineengineeringequipmentand
high-techships• Advancedrailtransitequipment• Low-energyandnew-energycars• Electronicequipment• Agriculturalmachinery• Newmaterials• BiopharmaceuCcalsandhigh-
performancemedicalequipment
The“MadeinChina2025”plan,releasedbytheStateCouncilinMay2015,setoutthe“ThreeSteps”intendedtomakeChinaoneoftheworld’smanufacturingpowers.
5keyprojects• ManufacturinginnovaConcentres
(industrialtechnologyresearchbases)
• Smartmanufacturingprojects• Strongindustrialbases• Greenmanufacturingprojects• High-endequipmentmanufacturing
projects
RegiontoregioncooperaCon
ImpactonourNorthernPowerhouse
• NorthernPowerhouseTechnologyFocusedTradeMissiontoBeijinginFeb/March2016
• NorthernPowerhouseHealthcareSectorMarketVisittoBeijinginOct2015• OneBeltOneRoadmeetstheNorthernPowerhouse-The£25billionSilkRoad
Fundwasestablishedin2014,complemenCngtheAsianInfrastructureInvestmentBank,toprovideasourceofChinesecapitalforprojectsandpartnershipsinChinaandcountriesalongtheBeltandRoadroutes.
• CBBCconnectsNorthernPowerhouserepresentaCvesinEasternChina-Leeds
andHangzhouaresisterciCes:CouncilorJudithBlake,leaderofLeedsCityCouncilmetMrWangJincai,chairmanoftheStandingCommiteeofHangzhouPeople’sCongressinSep2015
SectorBriefsandOpportuniCes
Agriculture,FoodandDrink
• FoodandDrinkproducts,includingmeat,dairy,fishandseafood,
confecConaryandsnacks,organicandhealthproducts,alcoholicandnon-alcoholicdrinks,andpetfood
• Agriculturalproducts,includinganimalandplantgeneCcs,technologyand
engineering,liveanimalexportsandanimalproductssuchasbovineorporcinesemen
• Foodservicesector,includinghotel,restaurant,caféandfastfoodchains• E-exporCng:Foodanddrinkisthefastestgrowingcategoryone-commerce
plavorms.GrowthinonlinefoodpurchasesthroughcompaniessuchasJD.comandYHD.com;thelaterhas10mcustomersperday
OpportuniCesinAgriculture,FoodandDrink
EducaCon
OpportuniCesinEducaCon• EducaConisGREATcampaignlaunchedwithMoUonfinance• FundingtheUK'seightgreattechnologieswithChineseinvestment• TheNewtonFundandCBBC’sAcceleraCngInnovaConandChina
OutboundprogrammesdriveforgreaterSino-UKcollaboraConinresearch,innovaCon,commercializaConandfinance
• Thethemesofentrepreneurshipandemployability,alongwiththecommercialisaConofR&DareincreasinglyimportantinChina
• HighereducaCon,professionalskillsandtraining,andprofessionalqualificaCons(inmulCplefields)
• Newschools:establishinginternaConalschoolsorjointuniversiCesinChina
• Syllabusdesign:domesCcandinternaConalschoolsinChinarequiringsyllabusdesignandguidancefromUKinsCtuCons
• Languagetrainingandsummerschools• Sisterschools:facultyexchangeprogrammesandsyllabusresearch
LifeScience&Healthcare
OpportuniCesinLifeScience&Healthcare
CreaCve&Culture
OpportuniCesinCreaCve&Culture
§ DemandfordigitalcontentinChinahasexplodedwiththeintroducConofsmartphonetechnology,construcConofcinemas,thealreadyhighbutincreasingrateofinternetpenetraConaswellasthenearcompletecoveragebytradiConalTVbroadcasters.
§ Acquireproductsandservices(andoyencompanies)thatareunavailablewithinMainlandChinaandareoyenverCcallyintegratedwithintheirindustry
Retail&E-Commerce
OpportuniCesinRetail&E-Commerce
• Chinaistheworld’ssecondlargestretailmarketayertheUSA• In2014,thee-commercemarketinChinagrewby31.4%,
reachingatotalvalueofGBP1.5trillion
• Onlineretailisthefastestgrowingsector,with90%ofallChinesee-commercetransacConsoccurringviae-marketplaces
• ConsumerspendingremainsakeydriverofChina’sgrowth,
withconsumpCondriving60%ofGDPgrowthinthefirsthalfof2015comparedwith54.3%in2014
Financial&ProfessionalServices
• DomesCcreform-FourFreeTradeZone(FTZ):Shanghai;Tianjin;Guangdong;Fujian
• CapitalaccountliberalizaCon,suchasRMBInternaConalizaCon• Overseasexpansion-amajordriverforconsumpConofforeignservices• Financialservices:crossborderworkandalternaCvefinanceplavorms,
suchascurrencyplavormsoralternaCvelending
• ProfessionalServices:cross-bordertransacConsofanysort,manycompaniesincludingChina’slargeprivatesectorareincreasinglykeentousehighqualitywesterncompaniesforsomedomesCcwork
OpportuniCesinFinancial&ProfessionalServices
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China-BritainBusinessCouncil
§ TheleadingorganisaConhelpingUKcompaniesdobusinessinChina
§ Established1954–over60yearshelpingBriCshcompaniesinChina
§ AmembershiporganisaCon,withover1,000members
§ Networkof23officesacrossChinaandtheUK
§ 130staff,includingover100basedinChina
§ Advice,Support&Networking
§ Servingcompaniesofallsizesinallindustrysectors
§ ‘Merged’withBriCshChamberofCommerceinBeijing
§ UKTIstrategicpartner
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ChinaRegionalCoverage
ServicesandSupport
CBBCMembershipNetwork
Ourwebsitehashundredsoflive
exportopportuni5essourcedby
ourteamonthegroundinChina
www.cbbc.org/exportopps
LiveExportOpportuniCes
Theycoverthefollowingsectors:§ AdvancedEngineering,
Manufacturing&Transport§ CreaCve&Culture§ EducaCon&Skills§ Energy,Environment&
Infrastructure§ Food&Drink§ Financial/ProfessionalServices§ Healthcare&Life-Sciences§ ICT§ Retail
Opportuni5esthatwillleaddirectlyto
ChinaforUKcompaniesinclude:
§ Distributors/agentslookingforproducts
§ Immediate,specificrequirementsforgoodsandservices
§ Jointventuresorpartnershipstodevelopnewproductsormarket
§ Jointresearchprojects§ University/schoolcollaboraCons§ Governmenttenders:advancednoCce
ofprojectswhichwillstartinthenext12-18months
LiveExportOpportuniCes
FormoreinformaConcontact:[email protected]
ChinaBusinessConference201622March,QEIICentre,London
The4thAnnualCBBCChinaBusinessConferencewilldraw500businessdelegateslearningfromthe
experCseofover40topicalspeakers.
Tofindoutmore,visitwww.chinabusinessconference.org
orscantheQRcodebelow
NaConalConference
Supporting High-Level Engagement
“Chinawillalwaysbeacontributortothe
globaldevelopment.Youcantakearideonour
expresstrainorjustmakeahitchhike,allare
welcome.”
---XiJinping
ThankYou
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