Newsletter30 April 2019

FCCC/EUCBA ACTIVITIES

SEMINAR: NEW OPPORTUNITIES AND CHALLENGES IN CHINA'S FOOD AND DRUGREGULATORY SYSTEM – 6 May 2019 – 15:30 Brussels

The Flanders-China Chamber of Commerce is organizing the seminar: 'New Opportunities and Challenges in China's Food and Drug Regulatory System', which will take place on 6 May and starts at 15:30 at Covington and Burling, Avenue des Arts 44, 1040 Brussels.

Mr. John Balzano is a partner in the food and drug group of Convington and Burling, LLP, who focuses entirely on China regulatory and policy issues in the food, drug, medical device, cosmetic, and animal product spaces and has over ten years of experience. He will discuss recent changes to China's regulations governing these types of products, including those related to pre-market development and approvals and enforcement trends, and the effects of those changes on companies based in the European Union and elsewhere outside of China.

Newsletter30 April 2019

FCCC/EUCBA ACTIVITIES

SEMINAR: NEW OPPORTUNITIES AND CHALLENGES IN CHINA'S FOOD AND DRUGREGULATORY SYSTEM – 6 May 2019 – 15:30 Brussels

The Flanders-China Chamber of Commerce is organizing the seminar: 'New Opportunities and Challenges in China's Food and Drug Regulatory System', which will take place on 6 May and starts at 15:30 at Covington and Burling, Avenue des Arts 44, 1040 Brussels.

Mr. John Balzano is a partner in the food and drug group of Convington and Burling, LLP, who focuses entirely on China regulatory and policy issues in the food, drug, medical device, cosmetic, and animal product spaces and has over ten years of experience. He will discuss recent changes to China's regulations governing these types of products, including those related to pre-market development and approvals and enforcement trends, and the effects of those changes on companies based in the European Union and elsewhere outside of China.

NEWSLETTER 30 APRIL 2019 2

Programme15:00: Registration15:30: Introduction by Ms. Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce15:40: Presentation: 'New Opportunities and Challenges in China's Food and Drug Regulatory System' by Mr. John Balzano, partner in the Food and Drug Group of Convington and Burling, LLP

Practical InformationDate and time: Monday 6 May 2019 from 15:30Location: Avenue des Arts 44, 1040 BrusselsPrice for members: € 45 (excl. 21% VAT)Price for non-members: € 75 (excl. 21 VAT)

Register via the FCCC website

Contact: FCCC: info@flanders-china.be

Seminar: “Doing Business with the AsianInfrastructure Investment Bank (AIIB)” –

Ellipsgebouw (Auditorium) Kon. Albert II-laan35, 1030 Brussel

Tuesday, 14 May 2019

10,00 – 10.05 Welcome by Mr. Johan Malin, Flanders Investment & Trade

10.05 – 10.30 Presentation by Mr. Ronald De Swert and Mr. Philippe Nizeyimana of the FPS Finances, Department of the Treasury on the relations between Belgium and the AIIB

10.30 – 11.00 Overview of the AIIB, procurement procedures and opportunities by Mr. Ian Nightingale, Procurement Advisor

11.00 – 11.30 Presentation on the AIIB investment operations, project pipeline and potential investment opportunities by Mr. Ke Fang, Manager of the Implementation Monitoring Unit of the AIIB

11.30 – 11.45 Closing remarks by Mrs. Gwenn Sonck of the Flanders-China Chamber of Commerce

11.45 – 12.00 Question and Answer

12.00 – 13.00 Sandwich lunch (VIP-room floor -1)

13.00 – 15.00 Possibility for 1 on 1 meetings for companies with concrete projects

Participation fee: The participation fee is €75.

If you are interested in attending this event, please register before 8 May 2019 via this link

Seminar: China-U.S. Trade Tensions also AffectEuropean Companies. What about Yours? – 16

May 2019 – 08h30 – 11h30 – Ghent

The Flanders China Chamber of Commerce and KBC Bank are organizing a briefing focused on “China-U.S. Trade tensions also affect European companies. What about yours?”.

This event will take place on Thursday 16 May 2019 from 8:30-11:30 at KBC Bank, Kortrijksesteenweg 1100, 9051 Ghent.

The global economy is slowing down due to persistent uncertainties and trade conflicts. Amidst the risk of the U.S.-China trade war escalating towards Europe, Europeantrade policy aims to balance short-term interests. Europe acknowledges the unavoidable further rise of China and explores new ways of structural European-Chinese cooperation. But many question whether Europe's approach is appropriate.

Exploring various features of current Chinese and European business allows us to assess the question of whether Europe is naïve or developing a structurally smart strategy to deal with the Chinese dragon.During this briefing, two bankers from KBC Bank will discuss the following topics.

NEWSLETTER 30 APRIL 2019 2

Programme15:00: Registration15:30: Introduction by Ms. Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce15:40: Presentation: 'New Opportunities and Challenges in China's Food and Drug Regulatory System' by Mr. John Balzano, partner in the Food and Drug Group of Convington and Burling, LLP

Practical InformationDate and time: Monday 6 May 2019 from 15:30Location: Avenue des Arts 44, 1040 BrusselsPrice for members: € 45 (excl. 21% VAT)Price for non-members: € 75 (excl. 21 VAT)

Register via the FCCC website

Contact: FCCC: info@flanders-china.be

Seminar: “Doing Business with the AsianInfrastructure Investment Bank (AIIB)” –

Ellipsgebouw (Auditorium) Kon. Albert II-laan35, 1030 Brussel

Tuesday, 14 May 2019

10,00 – 10.05 Welcome by Mr. Johan Malin, Flanders Investment & Trade

10.05 – 10.30 Presentation by Mr. Ronald De Swert and Mr. Philippe Nizeyimana of the FPS Finances, Department of the Treasury on the relations between Belgium and the AIIB

10.30 – 11.00 Overview of the AIIB, procurement procedures and opportunities by Mr. Ian Nightingale, Procurement Advisor

11.00 – 11.30 Presentation on the AIIB investment operations, project pipeline and potential investment opportunities by Mr. Ke Fang, Manager of the Implementation Monitoring Unit of the AIIB

11.30 – 11.45 Closing remarks by Mrs. Gwenn Sonck of the Flanders-China Chamber of Commerce

11.45 – 12.00 Question and Answer

12.00 – 13.00 Sandwich lunch (VIP-room floor -1)

13.00 – 15.00 Possibility for 1 on 1 meetings for companies with concrete projects

Participation fee: The participation fee is €75.

If you are interested in attending this event, please register before 8 May 2019 via this link

Seminar: China-U.S. Trade Tensions also AffectEuropean Companies. What about Yours? – 16

May 2019 – 08h30 – 11h30 – Ghent

The Flanders China Chamber of Commerce and KBC Bank are organizing a briefing focused on “China-U.S. Trade tensions also affect European companies. What about yours?”.

This event will take place on Thursday 16 May 2019 from 8:30-11:30 at KBC Bank, Kortrijksesteenweg 1100, 9051 Ghent.

The global economy is slowing down due to persistent uncertainties and trade conflicts. Amidst the risk of the U.S.-China trade war escalating towards Europe, Europeantrade policy aims to balance short-term interests. Europe acknowledges the unavoidable further rise of China and explores new ways of structural European-Chinese cooperation. But many question whether Europe's approach is appropriate.

Exploring various features of current Chinese and European business allows us to assess the question of whether Europe is naïve or developing a structurally smart strategy to deal with the Chinese dragon.During this briefing, two bankers from KBC Bank will discuss the following topics.

NEWSLETTER 30 APRIL 2019 3

• China Economic Update Post-Trade War - Mr. P.C. Leung, General Manager, KBC Bank N.V. ShanghaiBranch

• Is Fortress Europe ready for the Chinese Dragon? -Mr. Jan Van Hove, KBC Group's Chief Economist, and General Manager of KBC's international economic research activities

P.C. Leung Jan Van Hove

Programme08:30: Registration and networking 09:00: Introduction by Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce09:10: Presentation by P.C. Leung, General Manager, KBC Bank N.V. Shanghai Branch and J. Van Hove, KBC Group'sChief Economist, and General Manager of KBC's international economic research activities.10:00: Q & A discussion

Practical InformationLocation: KBC Bank, Kortrijksesteenweg 1100, 9051 GhentPrice: for members: €66,55 (incl.21% VAT)Price: for non-members: €90,75 (incl. 21% VAT)If you are interested in participating in this event, please subscribe before 11 May 2019 via this link.

Contact: FCCC info@flanders-china.be

About the speakers• P.C. Leung, General Manager, KBC Bank N.V.

Shanghai Branch. After 10 years with the Bank of China Group, P.C. joined KBC Bank Hong Kong Branch at 1991 as Financial Controller. He started his China banking career in KBC Shanghai Branch in 1997. He also worked in KBC Bank Taiwan Branch for 3 years thereafter. He is now the General Manager of KBC Bank Shanghai Branch. P.C. earned an MBA degree and a Master of

Information System degree. He is a Chartered Professional Accountant of Canada.

• Jan Van Hove, KBC Group's Chief Economist, and General Manager of KBC's international economic research activities. In addition, he is a professor in international economics at the University of Leuven in Belgium. As Chairman of the economic commission of the Federation of Belgian Enterprises, he has intensive contacts with Belgian firms. He is specialized in international trade and international macro-economics. His work has been published in various international journals. Jan Van Hove is often consulted by companies, policy makers and international institutions on European and global economic topics. He is also an HonoraryChairman of the International Network for Economic Research and has been a Visiting Professor at various European universities.

ACTIVITIES SUPPORTED BYFCCC

Growing your business in China eventMay 8, 2019 – Ghent

Following the Voka mission to China earlier this month, the City of Ghent, Voka and IMEC are organizing this business and networking event during which three speakers will share their vision on doing business and growing in China.In the past 30 years, China has become a global powerhouse and a major market for foreign companies. At the same time China is changing from ´Made in China´ to ´Designed in China´, focusing on innovation, upgrading of the existing economic sectors and high-tech. This means that the business landscape has changed dramatically. With a middle class of 300 million people, 800 million onlineand most patent applications now coming for China, foreigncompanies need to understand what this means for them, and what opportunities this creates.

Sven Agten has been living and working in China since 2004. He speaks Chinese fluently and has extensive business experiences in China as he set-up joint-ventures, managed several foreign companies and has a large network among Chinese companies and entrepreneurs. Besides being a contributor in newspapers and magazines,he is also the author of ´Hoe maak ik het in China (Lannoo, 2017)´ and ´So schafft man China´ (Springer, 2018) which

NEWSLETTER 30 APRIL 2019 3

• China Economic Update Post-Trade War - Mr. P.C. Leung, General Manager, KBC Bank N.V. ShanghaiBranch

• Is Fortress Europe ready for the Chinese Dragon? -Mr. Jan Van Hove, KBC Group's Chief Economist, and General Manager of KBC's international economic research activities

P.C. Leung Jan Van Hove

Programme08:30: Registration and networking 09:00: Introduction by Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce09:10: Presentation by P.C. Leung, General Manager, KBC Bank N.V. Shanghai Branch and J. Van Hove, KBC Group'sChief Economist, and General Manager of KBC's international economic research activities.10:00: Q & A discussion

Practical InformationLocation: KBC Bank, Kortrijksesteenweg 1100, 9051 GhentPrice: for members: €66,55 (incl.21% VAT)Price: for non-members: €90,75 (incl. 21% VAT)If you are interested in participating in this event, please subscribe before 11 May 2019 via this link.

Contact: FCCC info@flanders-china.be

About the speakers• P.C. Leung, General Manager, KBC Bank N.V.

Shanghai Branch. After 10 years with the Bank of China Group, P.C. joined KBC Bank Hong Kong Branch at 1991 as Financial Controller. He started his China banking career in KBC Shanghai Branch in 1997. He also worked in KBC Bank Taiwan Branch for 3 years thereafter. He is now the General Manager of KBC Bank Shanghai Branch. P.C. earned an MBA degree and a Master of

Information System degree. He is a Chartered Professional Accountant of Canada.

• Jan Van Hove, KBC Group's Chief Economist, and General Manager of KBC's international economic research activities. In addition, he is a professor in international economics at the University of Leuven in Belgium. As Chairman of the economic commission of the Federation of Belgian Enterprises, he has intensive contacts with Belgian firms. He is specialized in international trade and international macro-economics. His work has been published in various international journals. Jan Van Hove is often consulted by companies, policy makers and international institutions on European and global economic topics. He is also an HonoraryChairman of the International Network for Economic Research and has been a Visiting Professor at various European universities.

ACTIVITIES SUPPORTED BYFCCC

Growing your business in China eventMay 8, 2019 – Ghent

Following the Voka mission to China earlier this month, the City of Ghent, Voka and IMEC are organizing this business and networking event during which three speakers will share their vision on doing business and growing in China.In the past 30 years, China has become a global powerhouse and a major market for foreign companies. At the same time China is changing from ´Made in China´ to ´Designed in China´, focusing on innovation, upgrading of the existing economic sectors and high-tech. This means that the business landscape has changed dramatically. With a middle class of 300 million people, 800 million onlineand most patent applications now coming for China, foreigncompanies need to understand what this means for them, and what opportunities this creates.

Sven Agten has been living and working in China since 2004. He speaks Chinese fluently and has extensive business experiences in China as he set-up joint-ventures, managed several foreign companies and has a large network among Chinese companies and entrepreneurs. Besides being a contributor in newspapers and magazines,he is also the author of ´Hoe maak ik het in China (Lannoo, 2017)´ and ´So schafft man China´ (Springer, 2018) which

NEWSLETTER 30 APRIL 2019 4

describes the economic and social trends, and business opportunities and challenges of the new China. He is also mentor at China Accelerator, China´s biggest start-up accelerator, and top investor globally.

Peter Tanghe has worked in the high tech industry in China for 10 years as Managing Director for Accenture. He was responsible for transformation programs at private Chinese tech enterprises Huawei and Lenovo, and for the development of the go to market alliance between Huawei and Accenture. He has lived in Beijing and Shenzhen and has developed a broad local network. He is now working with tech scale-ups to develop partnerships for business development and product development in China, and splits his time between Ghent and Shenzhen. In his presentation,Peter will talk about tech innovation and partnering.

Join us on May 8th in Ghent!

This event is supported by Flanders Investment & Trade and the Flanders-China Chamber of Commerce.

Agenda• 13:30 – Registration• 14:00 – Welcome • 14:15 – Presentation by Sven Agten – Chinese

innovation landscape – how to do and grow your business in China

• 15:15 – Testimonial by Peter Tanghe – Smart devices & local partnerships

• 15:45 – Testimonial by start-up/scale-up active in China (how they did it – challenges/barriers) – tbc

• 16:15 – Q&A • 16:30 – Reception • 17:30 – End

Location: Ghent (exact location to be confirmed soon)

Registration: via the IMEC website

FIT: Princely mission to China16 to 22 November 2019

China is one of the largest economies in the world and the second-largest importer. It is also one of the biggest countries with an enormous consumer market: the number of people in China's middle class is increasing yearly. It is Flanders' 10th export destination and the third outside Europe.

China's economic development involves technical-scientific progress and innovations. At the same time, China faces big challenges in the fields of environment, energy, transport, health and foodstuffs.

Discover this exiting market during an economic mission from 16 to 22 November 2019, headed by HRH Princess Astrid.

On the program:• Beijing: the political center of China and

Shanghai, China's commercial heart.• As an option, Flanders Investment & Trade is

offering a third destination: a program in Guangzhou or Hong Kong.

• During this multi-sectoral mission, Flanders will focus on cleantech, life sciences and sports & entertainment technology.

• Other key sectors which will be covered include: diamonds, agro-food, smart economy, artificial intelligence, robotics, space, transport and logistics,e-commerce, architecture, sustainability and tourism.

What to expect:• Establish useful high-level contacts in one week.• FIT will prepare a tailor-made program in Beijing,

Shanghai and optionally in Guangzhou or Hong Kong, irrespective of the sector in which you are active.

• During seminars, visits and numerous networking moments, you will acquire a lot of information from your colleagues-entrepreneurs.

Registration is open till 19 August 2019.

Organization: Flanders Investment & Trade in cooperation with the Agency for Foreign Trade, AWEX and hub Brussels Invest & Export.

More information (in Dutch) is available on the FIT website.

Contact: Michèle Surinx, Area Manager East AsiaT: 02 504 87 91E: michele.surinx@fitagency.be

NEWSLETTER 30 APRIL 2019 4

describes the economic and social trends, and business opportunities and challenges of the new China. He is also mentor at China Accelerator, China´s biggest start-up accelerator, and top investor globally.

Peter Tanghe has worked in the high tech industry in China for 10 years as Managing Director for Accenture. He was responsible for transformation programs at private Chinese tech enterprises Huawei and Lenovo, and for the development of the go to market alliance between Huawei and Accenture. He has lived in Beijing and Shenzhen and has developed a broad local network. He is now working with tech scale-ups to develop partnerships for business development and product development in China, and splits his time between Ghent and Shenzhen. In his presentation,Peter will talk about tech innovation and partnering.

Join us on May 8th in Ghent!

This event is supported by Flanders Investment & Trade and the Flanders-China Chamber of Commerce.

Agenda• 13:30 – Registration• 14:00 – Welcome • 14:15 – Presentation by Sven Agten – Chinese

innovation landscape – how to do and grow your business in China

• 15:15 – Testimonial by Peter Tanghe – Smart devices & local partnerships

• 15:45 – Testimonial by start-up/scale-up active in China (how they did it – challenges/barriers) – tbc

• 16:15 – Q&A • 16:30 – Reception • 17:30 – End

Location: Ghent (exact location to be confirmed soon)

Registration: via the IMEC website

FIT: Princely mission to China16 to 22 November 2019

China is one of the largest economies in the world and the second-largest importer. It is also one of the biggest countries with an enormous consumer market: the number of people in China's middle class is increasing yearly. It is Flanders' 10th export destination and the third outside Europe.

China's economic development involves technical-scientific progress and innovations. At the same time, China faces big challenges in the fields of environment, energy, transport, health and foodstuffs.

Discover this exiting market during an economic mission from 16 to 22 November 2019, headed by HRH Princess Astrid.

On the program:• Beijing: the political center of China and

Shanghai, China's commercial heart.• As an option, Flanders Investment & Trade is

offering a third destination: a program in Guangzhou or Hong Kong.

• During this multi-sectoral mission, Flanders will focus on cleantech, life sciences and sports & entertainment technology.

• Other key sectors which will be covered include: diamonds, agro-food, smart economy, artificial intelligence, robotics, space, transport and logistics,e-commerce, architecture, sustainability and tourism.

What to expect:• Establish useful high-level contacts in one week.• FIT will prepare a tailor-made program in Beijing,

Shanghai and optionally in Guangzhou or Hong Kong, irrespective of the sector in which you are active.

• During seminars, visits and numerous networking moments, you will acquire a lot of information from your colleagues-entrepreneurs.

Registration is open till 19 August 2019.

Organization: Flanders Investment & Trade in cooperation with the Agency for Foreign Trade, AWEX and hub Brussels Invest & Export.

More information (in Dutch) is available on the FIT website.

Contact: Michèle Surinx, Area Manager East AsiaT: 02 504 87 91E: michele.surinx@fitagency.be

NEWSLETTER 30 APRIL 2019 5

FOREIGN TRADE

President Xi Jinping gives keynote speech atSecond Belt & Road Forum for International

Cooperation

Chinese President Xi Jinping (center) together with otherstate leaders attending the Second Belt and Road Forum

Chinese President Xi Jinping gave a keynote speech at the Second Belt and Road Forum for International Cooperation, held in Beijing from April 25 to 27. It is the diplomatic highlight of the year for China, with 37 state and government leaders in attendance, along with 5,000 other representatives from 150 countries. Cooperation agreements worth more than USD64 billion were signed at the CEO conference.

Leaders attending the Forum included Russian President Vladimir Putin, Italian Prime Minister Giuseppe Conte, Swiss President Ueli Maurer, Czech President Milos Zemanand Malaysian Prime Minister Mahathir Mohamad. Spain was represented by Foreign Minister Josep Borrell Fontelles and the UK by Chancellor of the Exchequer PhilipHammond.

The EU’s strategy for connecting Europe and Asia is greener and more sustainable than China’s BRI, but there remains scope for the two sides to work together, EuropeanCommission Vice President Maros Sefcovic said. He told Chinese Premier Li Keqiang that Europe was happy to boost trade with China – currently worth about €1.6 billion aday – and cooperation on the Belt and Road, as long as Beijing dealt with the concerns of European businesses. Although the U.S. federal government is boycotting the BRI,California’s Lieutenant Governor Eleni Kounalakis said she

was attending the event primarily to talk about climate change as she urged participants to prioritize the issue, andconsider how the Belt and Road Initiative can drive positive action for this global threat.

President Xi did not pledge fresh capital to fund China’s ambitious “Belt and Road Initiative” and focused instead on “co-development”. Compared with the inaugural 2017 event, Xi’s speech was shorter and contained fewer concrete proposals. Instead, he focused more on deflectingcriticism and doubts about the initiative. The Chinese President promised that the yuan would not be devalued,but kept stable within a reasonable range. He also said China would strengthen macro-economic policy coordination with other major economies. China does not intentionally seek trade surpluses, and the nation is willing to import more foreign agricultural products and services formore balanced trade. “China pays high regard to the implementation of bilateral and multilateral economic and trade agreements it has signed with other parties,” he said.

Xi said China would enforce cooperation with the international community on protection of intellectual property rights, and that China would end forced technology transfers, protect trademarks and trade secrets, and combat IP theft. China will hold its second import expo in November in Shanghai, Xi said, creating a platform for foreign businesses to enter the Chinese market. He said China would further cut tariffs and lower non-tariff barriers. Flows of commodities, capital, technology, and people werevital for economic growth. Xi said China would expand market access, slash negative lists to allow more foreign-controlled and wholly foreign-owned businesses in more sectors, and adopt supporting regulations to implement foreign investment laws and supply-side structural reform. The BRI would benefit “all of its participants” – not only China, Xi said as reported by the South China Morning Post.

Prior to the Forum, the Belt and Road News Network FirstCouncil Meeting was held in Beijing. President Xi Jinping called on media outlets from the countries participating in the Belt and Road Initiative to tell the stories of the initiative in a way that shapes favorable public opinion for BRI cooperation. Xi said the BRI countries needed to uphold thespirit of the Silk Road and strive to build the initiative into a road leading to peace, prosperity, openness, green development and innovation, and one that brings together different cultures.

NEWSLETTER 30 APRIL 2019 5

FOREIGN TRADE

President Xi Jinping gives keynote speech atSecond Belt & Road Forum for International

Cooperation

Chinese President Xi Jinping (center) together with otherstate leaders attending the Second Belt and Road Forum

Chinese President Xi Jinping gave a keynote speech at the Second Belt and Road Forum for International Cooperation, held in Beijing from April 25 to 27. It is the diplomatic highlight of the year for China, with 37 state and government leaders in attendance, along with 5,000 other representatives from 150 countries. Cooperation agreements worth more than USD64 billion were signed at the CEO conference.

Leaders attending the Forum included Russian President Vladimir Putin, Italian Prime Minister Giuseppe Conte, Swiss President Ueli Maurer, Czech President Milos Zemanand Malaysian Prime Minister Mahathir Mohamad. Spain was represented by Foreign Minister Josep Borrell Fontelles and the UK by Chancellor of the Exchequer PhilipHammond.

The EU’s strategy for connecting Europe and Asia is greener and more sustainable than China’s BRI, but there remains scope for the two sides to work together, EuropeanCommission Vice President Maros Sefcovic said. He told Chinese Premier Li Keqiang that Europe was happy to boost trade with China – currently worth about €1.6 billion aday – and cooperation on the Belt and Road, as long as Beijing dealt with the concerns of European businesses. Although the U.S. federal government is boycotting the BRI,California’s Lieutenant Governor Eleni Kounalakis said she

was attending the event primarily to talk about climate change as she urged participants to prioritize the issue, andconsider how the Belt and Road Initiative can drive positive action for this global threat.

President Xi did not pledge fresh capital to fund China’s ambitious “Belt and Road Initiative” and focused instead on “co-development”. Compared with the inaugural 2017 event, Xi’s speech was shorter and contained fewer concrete proposals. Instead, he focused more on deflectingcriticism and doubts about the initiative. The Chinese President promised that the yuan would not be devalued,but kept stable within a reasonable range. He also said China would strengthen macro-economic policy coordination with other major economies. China does not intentionally seek trade surpluses, and the nation is willing to import more foreign agricultural products and services formore balanced trade. “China pays high regard to the implementation of bilateral and multilateral economic and trade agreements it has signed with other parties,” he said.

Xi said China would enforce cooperation with the international community on protection of intellectual property rights, and that China would end forced technology transfers, protect trademarks and trade secrets, and combat IP theft. China will hold its second import expo in November in Shanghai, Xi said, creating a platform for foreign businesses to enter the Chinese market. He said China would further cut tariffs and lower non-tariff barriers. Flows of commodities, capital, technology, and people werevital for economic growth. Xi said China would expand market access, slash negative lists to allow more foreign-controlled and wholly foreign-owned businesses in more sectors, and adopt supporting regulations to implement foreign investment laws and supply-side structural reform. The BRI would benefit “all of its participants” – not only China, Xi said as reported by the South China Morning Post.

Prior to the Forum, the Belt and Road News Network FirstCouncil Meeting was held in Beijing. President Xi Jinping called on media outlets from the countries participating in the Belt and Road Initiative to tell the stories of the initiative in a way that shapes favorable public opinion for BRI cooperation. Xi said the BRI countries needed to uphold thespirit of the Silk Road and strive to build the initiative into a road leading to peace, prosperity, openness, green development and innovation, and one that brings together different cultures.

NEWSLETTER 30 APRIL 2019 6

Two-way investment between China and economies related to the Belt and Road Initiative exceeded USD130 billion between 2013 and 2018. China’s direct investment in BRI-related countries grew by 5.2% annually on average to surpass USD90 billion between 2013 and 2018, Song Lihong, an official in the Ministry of Commerce’s Comprehensive Department, said at a news conference. In the same period, China had received a total of USD40 billion in inbound investment from BRI countries. In five years, the value of the projects completed by Chinese companies in BRI economies amounted to USD400 billion, while the trade in goods between China and BRI-related economies exceeded USD6 trillion in the same period, an average annual growth of 4%. Ma Yu, Researcher at the Chinese Academy of International Trade and Economic Cooperation, said the BRI provides a new impetus for the recovery of the world economy. The improvement in infrastructure, and digital-related manufacturing brought by the BRI will restore the development capacity of the world economy and bring new opportunities for partnerships between Chinese and local companies.

63% of Chinese corporations indicated that they plan toincrease overseas investment by more than 10% in the next two years, and that the Belt and Road Initiative is key to that enthusiasm, according to a new survey by Baker McKenzie. The report, “The Age of Hypercomplexity," is based on a survey of 600 C-suite and director-level executives in Australia, China, India, Japan, Malaysia and Singapore. The survey found 81% of respondents expectedthe influence of China to increase most in the next five years. More than 80% of 200 respondents on the Chinese mainland and in Hong Kong see projects related to the Belt and Road Initiative as either fundamentally or hugely important to their business.

The Office of the Leading Group for Promoting the BRI published a report elaborating on the progress, contributions and prospects of the Belt and Road Initiative. The Belt and Road Initiative is an initiative for peaceful development and economic cooperation, rather than a geopolitical or military alliance, said the report. “It is a process of open, inclusive and common development, not an exclusionary bloc or a ‘China club. It neither differentiates between countries by ideology nor plays the zero-sum game,” according to the report.

So far, 126 countries and 29 international organizations have signed on to the BRI. The latests ones are Equatorial Guinea, Liberia, Luxembourg, Jamaica, Peru, Italy, Barbados, Cyprus and Yemen.

EXHIBITIONS

The Beijing International Horticultural Exhibitionopens

The Beijing International Horticultural Exhibition opened on April 29 in Beijing’s Yanqing county, showcasing the diverse gardening cultures from China and around the world. With the theme of “Live Green, Live Better”, the Expo organizers and architects expressed their beliefs in a green lifestyle through the design of gardens and pavilions. Covering 503 hectares, 41 outdoor exhibition parks have been built by more than 80 countries and international organizations. There are 34 independent exhibition parks and seven jointly built ones. The China Pavilion, which covers 15,000 square meters, is a landmark at the Expo. With its design inspired by a traditional jade ornament, the pavilion incorporates age-old Chinese culture. Opening the Expo, Chinese President Xi Jinping expressed the hope that the green development concept embodied by the Expo park would spread to “everycorner of the world.”

86 countries and regions, as well as 24 international organizations are participating. The 162-day Expo is expected to receive 16 million visitors and offer 2,500 activities including academic conferences, horticulture competitions and flower parades, Gao Yan, Chairwoman of China Council for the Promotion of International Trade (CCPIT) and an organizer of the Expo, said. The horticultural show, which organizers call “the Expo at the foot of the Great Wall”, is the largest international event China has held since the 2008 Olympics.

Leading-edge technologies employed at the Expo include 5G technology, artificial intelligence (AI) and ethylene tetrafluoroethylene (ETFE), a type of high-strength industrial plastic that can be used for construction. ETFE gives buildings a translucent coat and is also extremely

NEWSLETTER 30 APRIL 2019 6

Two-way investment between China and economies related to the Belt and Road Initiative exceeded USD130 billion between 2013 and 2018. China’s direct investment in BRI-related countries grew by 5.2% annually on average to surpass USD90 billion between 2013 and 2018, Song Lihong, an official in the Ministry of Commerce’s Comprehensive Department, said at a news conference. In the same period, China had received a total of USD40 billion in inbound investment from BRI countries. In five years, the value of the projects completed by Chinese companies in BRI economies amounted to USD400 billion, while the trade in goods between China and BRI-related economies exceeded USD6 trillion in the same period, an average annual growth of 4%. Ma Yu, Researcher at the Chinese Academy of International Trade and Economic Cooperation, said the BRI provides a new impetus for the recovery of the world economy. The improvement in infrastructure, and digital-related manufacturing brought by the BRI will restore the development capacity of the world economy and bring new opportunities for partnerships between Chinese and local companies.

63% of Chinese corporations indicated that they plan toincrease overseas investment by more than 10% in the next two years, and that the Belt and Road Initiative is key to that enthusiasm, according to a new survey by Baker McKenzie. The report, “The Age of Hypercomplexity," is based on a survey of 600 C-suite and director-level executives in Australia, China, India, Japan, Malaysia and Singapore. The survey found 81% of respondents expectedthe influence of China to increase most in the next five years. More than 80% of 200 respondents on the Chinese mainland and in Hong Kong see projects related to the Belt and Road Initiative as either fundamentally or hugely important to their business.

The Office of the Leading Group for Promoting the BRI published a report elaborating on the progress, contributions and prospects of the Belt and Road Initiative. The Belt and Road Initiative is an initiative for peaceful development and economic cooperation, rather than a geopolitical or military alliance, said the report. “It is a process of open, inclusive and common development, not an exclusionary bloc or a ‘China club. It neither differentiates between countries by ideology nor plays the zero-sum game,” according to the report.

So far, 126 countries and 29 international organizations have signed on to the BRI. The latests ones are Equatorial Guinea, Liberia, Luxembourg, Jamaica, Peru, Italy, Barbados, Cyprus and Yemen.

EXHIBITIONS

The Beijing International Horticultural Exhibitionopens

The Beijing International Horticultural Exhibition opened on April 29 in Beijing’s Yanqing county, showcasing the diverse gardening cultures from China and around the world. With the theme of “Live Green, Live Better”, the Expo organizers and architects expressed their beliefs in a green lifestyle through the design of gardens and pavilions. Covering 503 hectares, 41 outdoor exhibition parks have been built by more than 80 countries and international organizations. There are 34 independent exhibition parks and seven jointly built ones. The China Pavilion, which covers 15,000 square meters, is a landmark at the Expo. With its design inspired by a traditional jade ornament, the pavilion incorporates age-old Chinese culture. Opening the Expo, Chinese President Xi Jinping expressed the hope that the green development concept embodied by the Expo park would spread to “everycorner of the world.”

86 countries and regions, as well as 24 international organizations are participating. The 162-day Expo is expected to receive 16 million visitors and offer 2,500 activities including academic conferences, horticulture competitions and flower parades, Gao Yan, Chairwoman of China Council for the Promotion of International Trade (CCPIT) and an organizer of the Expo, said. The horticultural show, which organizers call “the Expo at the foot of the Great Wall”, is the largest international event China has held since the 2008 Olympics.

Leading-edge technologies employed at the Expo include 5G technology, artificial intelligence (AI) and ethylene tetrafluoroethylene (ETFE), a type of high-strength industrial plastic that can be used for construction. ETFE gives buildings a translucent coat and is also extremely

NEWSLETTER 30 APRIL 2019 7

flexible. 5G mobile connections will be available throughout all exhibition halls and some areas nearby. In the 5G exhibition hall, visitors will be able to watch 8,000-pixel high-definition videos and learn about progress in self-driving vehicle technology, telemedicine, drone logistics andtransportation, and other 5G network applications. Visitors will also be able to download entire films in less than a second. Robots will serve at major pavilions, offering visitors information about the event, make coffee and do the cleaning.

Visitors can learn about “the harmony between human and nature” and the ecosystem comprising water, forests, fields,lakes and grass via digital images. Visitors can also admire miniature Chinese landscapes in the form of exquisite flower-embossing and flower-arranging. Besides the China Pavilion, 31 provinces, as well as Hong Kong, Macao and Taiwan, will showcase their horticulture in individual outdoorparks. The Beijing exhibition park will highlight courtyard culture to illustrate traditional Beijing family homes. The Yunnan Garden, for example, will replicate the rivers and mountains in the province to showcase the ethnic diversity, biodiversity and achievements in preserving the local ecosystem. Guangdong province will make an effort to present the essence of a Lingnan water town, including the traditional corridors, bridges and foyers.

The Plant Pavilion, one of the major stands at the expo, houses more than 20,0000 plants of 1,000 plant species. It will include more than 100 rare species and showcase beautiful plants from across the globe. In the German park, a wall of moss acts as a natural air purifier and will show a practical demonstration of an indoor garden. The event has an unprecedented scale with more than 110 countries and international organizations attending, the China Daily reports.

IT & TELECOM

China Unicom launches 5G trial network inseven cities

China Unicom announced the launch of its 5G trial network in seven cities: Beijing, Shanghai, Guangzhou,Shenzhen, Nanjing, Hangzhou, as well as Xiongan, an emerging area planned to undertake Beijing’s non-capital functions, according to Wang Xiaochu, Chairman of the China’s second-largest telecom carrier by subscriber numbers. In addition, China Unicom’s 5G network covers selected areas in 33 cities, with wider deployment of 5G private industrial networks in more cities dedicated for specific purposes, Wang said at a conference in Shanghai.

“5G is not only a technology upgrade of mobile communications. It is a transformation that will usher in an era where everything is smartly connected, thus creating new business opportunities,” he said. Wang called for open innovation in making 5G breakthroughs, through concerted efforts by equipment makers, industrial funds and even other telecom carriers. To this end, China Unicom has established a 5G application alliance bringing together 32 industrial players including automaker Dongfeng Motor, heavy industry manufacturer ZPMC, equipment maker Huawei and internet company Alibaba. Major initiatives under the alliance include raising CNY10 billion toincubate 5G-related projects and nurturing 20 specialized companies along the 5G industrial chain. Huawei also announced it developed the world’s first 5G car module, called MH5000, based on the Balong 5000 5G chip which itlaunched in January.

China Unicom also signed a Memorandum of Understanding with the Shanghai municipal government, pledging to invest a total of CNY15 billion by 2021 to help advance 5G networks and explore more application scenarios. The city, which already hosts 500 5G stations, is looking to build itself into a 5G pioneering venue. It aims to construct 10,000 5G base stations by the end of this year and 30,000 by 2021, said Zhang Jianming, Deputy Director of the Shanghai Municipal Economic and Informatization Commission. 5G-related companies will be listed on the upcoming science and technology innovation board.

Key components of China’s 5G industrial chain now stand “ready for commercialization”, with substantial progress being made in fields such as the industrial internet, connected cars, smart Winter Olympics and intelligent healthcare solutions, said Zhang Feng, Chief Engineer of the Ministry of Industry and Information Technology (MIIT).

Meanwhile, British Prime Minister Theresa May has given the green light to Huawei to help build Britain’s new 5G network, despite warnings from the U.S. and some of her most senior ministers that it poses a risk to

NEWSLETTER 30 APRIL 2019 7

flexible. 5G mobile connections will be available throughout all exhibition halls and some areas nearby. In the 5G exhibition hall, visitors will be able to watch 8,000-pixel high-definition videos and learn about progress in self-driving vehicle technology, telemedicine, drone logistics andtransportation, and other 5G network applications. Visitors will also be able to download entire films in less than a second. Robots will serve at major pavilions, offering visitors information about the event, make coffee and do the cleaning.

Visitors can learn about “the harmony between human and nature” and the ecosystem comprising water, forests, fields,lakes and grass via digital images. Visitors can also admire miniature Chinese landscapes in the form of exquisite flower-embossing and flower-arranging. Besides the China Pavilion, 31 provinces, as well as Hong Kong, Macao and Taiwan, will showcase their horticulture in individual outdoorparks. The Beijing exhibition park will highlight courtyard culture to illustrate traditional Beijing family homes. The Yunnan Garden, for example, will replicate the rivers and mountains in the province to showcase the ethnic diversity, biodiversity and achievements in preserving the local ecosystem. Guangdong province will make an effort to present the essence of a Lingnan water town, including the traditional corridors, bridges and foyers.

The Plant Pavilion, one of the major stands at the expo, houses more than 20,0000 plants of 1,000 plant species. It will include more than 100 rare species and showcase beautiful plants from across the globe. In the German park, a wall of moss acts as a natural air purifier and will show a practical demonstration of an indoor garden. The event has an unprecedented scale with more than 110 countries and international organizations attending, the China Daily reports.

IT & TELECOM

China Unicom launches 5G trial network inseven cities

China Unicom announced the launch of its 5G trial network in seven cities: Beijing, Shanghai, Guangzhou,Shenzhen, Nanjing, Hangzhou, as well as Xiongan, an emerging area planned to undertake Beijing’s non-capital functions, according to Wang Xiaochu, Chairman of the China’s second-largest telecom carrier by subscriber numbers. In addition, China Unicom’s 5G network covers selected areas in 33 cities, with wider deployment of 5G private industrial networks in more cities dedicated for specific purposes, Wang said at a conference in Shanghai.

“5G is not only a technology upgrade of mobile communications. It is a transformation that will usher in an era where everything is smartly connected, thus creating new business opportunities,” he said. Wang called for open innovation in making 5G breakthroughs, through concerted efforts by equipment makers, industrial funds and even other telecom carriers. To this end, China Unicom has established a 5G application alliance bringing together 32 industrial players including automaker Dongfeng Motor, heavy industry manufacturer ZPMC, equipment maker Huawei and internet company Alibaba. Major initiatives under the alliance include raising CNY10 billion toincubate 5G-related projects and nurturing 20 specialized companies along the 5G industrial chain. Huawei also announced it developed the world’s first 5G car module, called MH5000, based on the Balong 5000 5G chip which itlaunched in January.

China Unicom also signed a Memorandum of Understanding with the Shanghai municipal government, pledging to invest a total of CNY15 billion by 2021 to help advance 5G networks and explore more application scenarios. The city, which already hosts 500 5G stations, is looking to build itself into a 5G pioneering venue. It aims to construct 10,000 5G base stations by the end of this year and 30,000 by 2021, said Zhang Jianming, Deputy Director of the Shanghai Municipal Economic and Informatization Commission. 5G-related companies will be listed on the upcoming science and technology innovation board.

Key components of China’s 5G industrial chain now stand “ready for commercialization”, with substantial progress being made in fields such as the industrial internet, connected cars, smart Winter Olympics and intelligent healthcare solutions, said Zhang Feng, Chief Engineer of the Ministry of Industry and Information Technology (MIIT).

Meanwhile, British Prime Minister Theresa May has given the green light to Huawei to help build Britain’s new 5G network, despite warnings from the U.S. and some of her most senior ministers that it poses a risk to

NEWSLETTER 30 APRIL 2019 8

national security. The British National Security Council agreed to allow Huawei limited access to help build parts ofthe network such as antennas and other “non-core” infrastructure. The decision was taken five for versus five against, with the Prime Minister casting the deciding vote. As the decision was prematurely leaked to the press, an official enquiry was launched to find the source of the leak.

Huawei for the first time posted quarterly figures. Previously, it reported annually. The company said its revenue rose 39% year-on-year in the first quarter – thanks to booming 5G and smartphone sales – to CNY179.7 billion, with a net profit margin of 8%, slightly higher than in the same period last year. Huawei did not disclose its actualnet profit. It had signed 40 contracts by April 15 to build andoperate 5G telecommunication infrastructure.

ADVERTISEMENT ANDSPONSORSHIP

Interested in advertisement in the FCCC Weekly or on the FCCC website? Send an e-mail to info@flanders-china.be

CHINA NEWS ROUND-UP

Brussels Airport active on popular Chinese appWeChat

Brussels Airport has launched its official WeChat account and issued the following press release. Brussels Airport has been active on the leading social media channels such as Facebook, Twitter, YouTube and Instagram for years in an effort to keep its passengers as well and as promptly informed as possible about the ins and outs at the airport. It has recently added a channel to this list: WeChat! This app is used mainly in China. Brussels Airport created an account to be able to communicate easier with its Chinese travelers and to help them find their way through the airport.

Unlike in the West, Facebook, Twitter or Instagram are not among the most used apps in China. WeChat (微信,Weixin)is the biggest player there, an app published by the Chinese firm Tencent in 2011. The app is difficult to compare with an app we know here. It comprises various apps such as Facebook, Twitter, WhatsApp, and payment applications in one. With WeChat, you can thus manage

accounts and purchase or pay for goods and services, suchas an air ticket or a taxi. QR codes also constitute an important feature on the app. These codes are used primarily to add contacts and to pay for your favorite purchases in a shop.

Our Chinese travelers cannot always use our biggest socialmedia channels in their country because of network security. To facilitate our communication with these travelers, Brussels Airport created a WeChat account.

In 2018, WeChat had 1.08 billion daily users. More than 50% of these users spent more than an hour and a half per day on the app. Last year, some 45 billion messages were sent and 410 million calls were made daily. It is high time therefore to jump on the bandwagon of this popular app!

To access Brussels Airport's WeChat account, scan the QRcode below:

U.S.-China trade talks to resume as big issuesremain on the table

U.S. President Donald Trump could still possibly walk away from the negotiating table with China if he isn’t satisfied at the progress of talks between the two countries to resolve their trade war, according to a senior Trump administration official. The official, who spoke on condition of anonymity, said both sides were eager to reach an agreement, but significant issues were still unresolved ahead of the next round of trade talks which will get under way in Beijing on April 30 between U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He. Discussions include intellectual property, forced technology transfer, non-tariff barriers, agriculture, services, purchases,and enforcement, according to a White House statement. Liu will then lead a Chinese delegation to Washington for additional discussions starting on May 8. Negotiators have indicated they are close to a deal and U.S. President Trumpsaid Chinese President Xi Jinping would visit the White House “soon.”

NEWSLETTER 30 APRIL 2019 8

national security. The British National Security Council agreed to allow Huawei limited access to help build parts ofthe network such as antennas and other “non-core” infrastructure. The decision was taken five for versus five against, with the Prime Minister casting the deciding vote. As the decision was prematurely leaked to the press, an official enquiry was launched to find the source of the leak.

Huawei for the first time posted quarterly figures. Previously, it reported annually. The company said its revenue rose 39% year-on-year in the first quarter – thanks to booming 5G and smartphone sales – to CNY179.7 billion, with a net profit margin of 8%, slightly higher than in the same period last year. Huawei did not disclose its actualnet profit. It had signed 40 contracts by April 15 to build andoperate 5G telecommunication infrastructure.

ADVERTISEMENT ANDSPONSORSHIP

Interested in advertisement in the FCCC Weekly or on the FCCC website? Send an e-mail to info@flanders-china.be

CHINA NEWS ROUND-UP

Brussels Airport active on popular Chinese appWeChat

Brussels Airport has launched its official WeChat account and issued the following press release. Brussels Airport has been active on the leading social media channels such as Facebook, Twitter, YouTube and Instagram for years in an effort to keep its passengers as well and as promptly informed as possible about the ins and outs at the airport. It has recently added a channel to this list: WeChat! This app is used mainly in China. Brussels Airport created an account to be able to communicate easier with its Chinese travelers and to help them find their way through the airport.

Unlike in the West, Facebook, Twitter or Instagram are not among the most used apps in China. WeChat (微信,Weixin)is the biggest player there, an app published by the Chinese firm Tencent in 2011. The app is difficult to compare with an app we know here. It comprises various apps such as Facebook, Twitter, WhatsApp, and payment applications in one. With WeChat, you can thus manage

accounts and purchase or pay for goods and services, suchas an air ticket or a taxi. QR codes also constitute an important feature on the app. These codes are used primarily to add contacts and to pay for your favorite purchases in a shop.

Our Chinese travelers cannot always use our biggest socialmedia channels in their country because of network security. To facilitate our communication with these travelers, Brussels Airport created a WeChat account.

In 2018, WeChat had 1.08 billion daily users. More than 50% of these users spent more than an hour and a half per day on the app. Last year, some 45 billion messages were sent and 410 million calls were made daily. It is high time therefore to jump on the bandwagon of this popular app!

To access Brussels Airport's WeChat account, scan the QRcode below:

U.S.-China trade talks to resume as big issuesremain on the table

U.S. President Donald Trump could still possibly walk away from the negotiating table with China if he isn’t satisfied at the progress of talks between the two countries to resolve their trade war, according to a senior Trump administration official. The official, who spoke on condition of anonymity, said both sides were eager to reach an agreement, but significant issues were still unresolved ahead of the next round of trade talks which will get under way in Beijing on April 30 between U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He. Discussions include intellectual property, forced technology transfer, non-tariff barriers, agriculture, services, purchases,and enforcement, according to a White House statement. Liu will then lead a Chinese delegation to Washington for additional discussions starting on May 8. Negotiators have indicated they are close to a deal and U.S. President Trumpsaid Chinese President Xi Jinping would visit the White House “soon.”

NEWSLETTER 30 APRIL 2019 9

The year-long trade war has weighed on confidence and dented shipments, with nine of the 10 gauges tracked by Bloomberg to assess the health of global trade below their average midpoint. Still, the world’s two biggest economies recently posted better-than-expected gross domestic product reports for the first quarter. Last week, the Trump administration said China had failed to bolster protection forintellectual property and open its market to more foreign companies, despite Beijing’s promises to reform. The U.S. kept China on a “priority watch list” of nations that don’t adequately protect IP rights, according to the annual report of the U.S.Trade Representative’s office on IP practices around the world.

Veteran negotiators warned that deals can often get lost in translation. Complications can arise from issues of language, interpretation and translation during negotiations.While both sides are negotiating in their native tongues withthe help of simultaneous translation, the subsequent text will be translated into both English and Chinese. These translations will then be “scrubbed” by lawyers and technical translators in an effort to reach a final text that both sides are happy with. But history shows that this is rarely straightforward as ambiguity is hard to avoid in international trade deals, while experienced negotiators have said that trying to iron out arguments over words, phrases or even grammar can be “worse than pulling teeth”.

“It is very hard to enforce anything under the Chinese because their system is both complicated and relatively opaque, and there aren't that many Mandarin speakers around that have the requisite technical trade and legal skills,” said Elena Bryan, who spent 17 years negotiating trade deals for the Office of the U.S. Trade Representative (USTR), and who now runs consultancy Pilot Rock Global Strategies. According to one account, the two sides had debated the suitability of a single word for two hours during agriculture talks via video conferencing. After failing to reach an agreement, they had to put it aside and move onto other topics, the South China Morning Post reports.

China expected to have significant impact on theautomotive industry

China will not only buy and manufacture cars, but have a significant impact on the automotive industry in the future, since it is “infinitely open” to technological progress, expertsand industry leaders say. The Shanghai auto show, which closed last week, has attracted over 1,000 exhibitors from 20 countries and regions, showing the importance

that carmakers attach to the Chinese auto market — the world’s largest. Ferdinand Dudenhoeffer, Founder and Director of the Center for Automotive Research (CAR) at the University of Duisburg-Essen, said that China has the best “economies of scale” in the market. The exhibition is widely regarded as the leading trade fair for the entire Asianregion, since more than a quarter of all new cars manufactured by carmakers worldwide are bought in China,according to CAR.

Most German automobile manufacturers are offering exclusive products such as long versions of their car models, which are very popular with Chinese buyers. BMW presented the long version of its newest generation of the popular 3-series at this year’s Auto Shanghai, which will be exclusively offered on the Chinese market. With the A35 L, German automaker Daimler has also introduced a new longversion of one of its popular models. “China is increasingly becoming a powerhouse for automotive technology,” Volkswagen CEO Herbert Diess said before the start of thisyear’s show. New technologies, such as electric cars, autonomous driving and networked vehicles, are all being driven “very strongly” from China, Diess said. Volkswagen opened four new plants in the cities of Qingdao, Foshan and Tianjin in 2018 and has a total of 23 plants in China. In March, Daimler announced that the production of its Smart models will be entirely outsourced to China, in cooperation with the Chinese car manufacturer Geely.

According CAR, 1.18 million electric cars were sold in 2018 throughout China, accounting for more than half of global sales. Dudenhoeffer forecasts sales will hit 2.2 million this year. China has the “greatest dynamism” in terms of innovation, and the country is “infinitely open” to technological progress, Dudenhoeffer added. In addition to large car manufacturers, many Chinese startups have emerged, especially in the field of electrically powered cars,boosting a technology race, the Shanghai Daily reports.

International Road Transport Union hopes tohave more Chinese road crossings under TIR

The International Road Transport Union (IRU), the organization that manages “Transports Internationaux Routiers” (TIR) operations with United Nations’ authorization, is seeking to diversify its cooperation with China’s customs to further facilitate goods trade via more convenient road transport. Since China implemented the TIR transport initiative last May, it has opened 10 ports including Erenhot and Manzhouli in Inner Mongolia and Horgos and Irkeshtam in Xinjiang, that are appying TIR.

NEWSLETTER 30 APRIL 2019 9

The year-long trade war has weighed on confidence and dented shipments, with nine of the 10 gauges tracked by Bloomberg to assess the health of global trade below their average midpoint. Still, the world’s two biggest economies recently posted better-than-expected gross domestic product reports for the first quarter. Last week, the Trump administration said China had failed to bolster protection forintellectual property and open its market to more foreign companies, despite Beijing’s promises to reform. The U.S. kept China on a “priority watch list” of nations that don’t adequately protect IP rights, according to the annual report of the U.S.Trade Representative’s office on IP practices around the world.

Veteran negotiators warned that deals can often get lost in translation. Complications can arise from issues of language, interpretation and translation during negotiations.While both sides are negotiating in their native tongues withthe help of simultaneous translation, the subsequent text will be translated into both English and Chinese. These translations will then be “scrubbed” by lawyers and technical translators in an effort to reach a final text that both sides are happy with. But history shows that this is rarely straightforward as ambiguity is hard to avoid in international trade deals, while experienced negotiators have said that trying to iron out arguments over words, phrases or even grammar can be “worse than pulling teeth”.

“It is very hard to enforce anything under the Chinese because their system is both complicated and relatively opaque, and there aren't that many Mandarin speakers around that have the requisite technical trade and legal skills,” said Elena Bryan, who spent 17 years negotiating trade deals for the Office of the U.S. Trade Representative (USTR), and who now runs consultancy Pilot Rock Global Strategies. According to one account, the two sides had debated the suitability of a single word for two hours during agriculture talks via video conferencing. After failing to reach an agreement, they had to put it aside and move onto other topics, the South China Morning Post reports.

China expected to have significant impact on theautomotive industry

China will not only buy and manufacture cars, but have a significant impact on the automotive industry in the future, since it is “infinitely open” to technological progress, expertsand industry leaders say. The Shanghai auto show, which closed last week, has attracted over 1,000 exhibitors from 20 countries and regions, showing the importance

that carmakers attach to the Chinese auto market — the world’s largest. Ferdinand Dudenhoeffer, Founder and Director of the Center for Automotive Research (CAR) at the University of Duisburg-Essen, said that China has the best “economies of scale” in the market. The exhibition is widely regarded as the leading trade fair for the entire Asianregion, since more than a quarter of all new cars manufactured by carmakers worldwide are bought in China,according to CAR.

Most German automobile manufacturers are offering exclusive products such as long versions of their car models, which are very popular with Chinese buyers. BMW presented the long version of its newest generation of the popular 3-series at this year’s Auto Shanghai, which will be exclusively offered on the Chinese market. With the A35 L, German automaker Daimler has also introduced a new longversion of one of its popular models. “China is increasingly becoming a powerhouse for automotive technology,” Volkswagen CEO Herbert Diess said before the start of thisyear’s show. New technologies, such as electric cars, autonomous driving and networked vehicles, are all being driven “very strongly” from China, Diess said. Volkswagen opened four new plants in the cities of Qingdao, Foshan and Tianjin in 2018 and has a total of 23 plants in China. In March, Daimler announced that the production of its Smart models will be entirely outsourced to China, in cooperation with the Chinese car manufacturer Geely.

According CAR, 1.18 million electric cars were sold in 2018 throughout China, accounting for more than half of global sales. Dudenhoeffer forecasts sales will hit 2.2 million this year. China has the “greatest dynamism” in terms of innovation, and the country is “infinitely open” to technological progress, Dudenhoeffer added. In addition to large car manufacturers, many Chinese startups have emerged, especially in the field of electrically powered cars,boosting a technology race, the Shanghai Daily reports.

International Road Transport Union hopes tohave more Chinese road crossings under TIR

The International Road Transport Union (IRU), the organization that manages “Transports Internationaux Routiers” (TIR) operations with United Nations’ authorization, is seeking to diversify its cooperation with China’s customs to further facilitate goods trade via more convenient road transport. Since China implemented the TIR transport initiative last May, it has opened 10 ports including Erenhot and Manzhouli in Inner Mongolia and Horgos and Irkeshtam in Xinjiang, that are appying TIR.

NEWSLETTER 30 APRIL 2019 10

This has already cut the costs and time of shipments between China and its trade partners in the European Union, Russia and Central Asia. Umberto de Pretto, Secretary General of the Geneva-headquartered organization, said the IRU is looking to have TIR rules applied to more ports in China in the future.

TIR currently is the only global customs transit system for moving goods across international borders. There are 76 contracting parties to the United Nations TIR Convention managed by the IRU. China ratified the UN TIR Convention in 2016, becoming the 70th contracting party. “Now we can move trucks from China to Europe in 12 days, and from southern China all the way to Spain, the longest way you can go, in 16 days, which is phenomenally quicker,” said de Pretto, adding that the TIR service enables goods to be shipped across continents in sealed loaded compartments through an internationally recognizedcustoms agreement.

Umberto de Pretto attended the Belt and Road Forum for International Cooperation in Beijing, saying that the BRI infrastructure enhanced connectivity. “In the IRU, we appreciate every millimeter of road that is built because it will make it easier for us do our job,” he said. “As many countries involved in the development of the BRI still rely ontrucks and coaches to transport goods and people, the demand for road transportation and modern road infrastructure will remain attractive for both logistics companies and facility project contractors in the long run,” added Luo Renjian, Researcher at the Institute of Transportation Research of the National Development and Reform Commission (NDRC), as reported by the China Daily.

Info of foreign borrowers to be included inChina’s credit system

Foreign borrowers’ financial information will be recorded in China’s national credit system, and the People’s Bank of China (PBOC) is studying the feasibility ofa cross-border information sharing mechanism to improve services for foreigners and prevent credit risks. Foreigners wishing to borrow money from financial institutions in Chinashould register their nationality on personal credit reports, anew requirement of the PBOC, said Wang Xiaolei, Deputy Director of the PBOC Credit Reference Center. The central bank will notify foreigners before collecting the additional information, she said. Chinese financial institutions need to know about foreign borrowers’ previous credit records, including such activities in other countries, and to rate their

credit history before issuing loans. Changes to the national credit system are being worked out.

The PBOC released a statement indicating that more credit information will be included in the system in order to accurately assess credit risks and minimize defaults. The information will cover payment history of utility bills, loans jointly borrowed by more than one person, and guarantee arrangements between individuals and corporations. The PBOC’s updated credit information system will help improve accuracy of information used by banks in their credit decision-making processes, Nicholas Zhu, Vice President and Senior Banking Analyst at Moody’s, told China Daily.

The national credit information database was launched in 2006, and is managed by the PBOC. It now covers information on 259.18 million enterprises and 990 million individuals. The central bank has issued a license to Baihang Credit, China’s only licensed market-based personal credit agency, to expand the system to all of society, including consumer credit information. Baihang uses big-data digital technology to process activities such as mobile phone usage, travel, locational data and purchasing history, the China Daily reports.

Services, IT and media become top job sectorsfor expats in China

The service sector, IT and media industries have overtaken the education sector as major job sources for expats in China, according the 2019 Job Fair for Foreigners in Beijing, organized by the Foreign Talent Research Center and the State Administration of Foreign Experts Affairs. The Job Fair attracted more than 500 expats with nearly 1,000 jobs available in a range of professions. The expat job market, once dominated by language teachers, has seen a major shift. Approximately half the jobs available at the fair were in the sales, media, marketing and IT sectors, including openings for journalists,brand and communication managers, and software engineers.

“A certain level of Mandarin proficiency is an advantage,” said Yang Jiayin, Project Manager of the research center. The best-paying jobs generally require the ability to speak Mandarin and salaries are higher comparedto the same jobs without the language requirement.” Yang added that the income gap between expats and Chinese employees in the same positions has been reduced in past decades. The annual salary of a foreign employee would

NEWSLETTER 30 APRIL 2019 10

This has already cut the costs and time of shipments between China and its trade partners in the European Union, Russia and Central Asia. Umberto de Pretto, Secretary General of the Geneva-headquartered organization, said the IRU is looking to have TIR rules applied to more ports in China in the future.

TIR currently is the only global customs transit system for moving goods across international borders. There are 76 contracting parties to the United Nations TIR Convention managed by the IRU. China ratified the UN TIR Convention in 2016, becoming the 70th contracting party. “Now we can move trucks from China to Europe in 12 days, and from southern China all the way to Spain, the longest way you can go, in 16 days, which is phenomenally quicker,” said de Pretto, adding that the TIR service enables goods to be shipped across continents in sealed loaded compartments through an internationally recognizedcustoms agreement.

Umberto de Pretto attended the Belt and Road Forum for International Cooperation in Beijing, saying that the BRI infrastructure enhanced connectivity. “In the IRU, we appreciate every millimeter of road that is built because it will make it easier for us do our job,” he said. “As many countries involved in the development of the BRI still rely ontrucks and coaches to transport goods and people, the demand for road transportation and modern road infrastructure will remain attractive for both logistics companies and facility project contractors in the long run,” added Luo Renjian, Researcher at the Institute of Transportation Research of the National Development and Reform Commission (NDRC), as reported by the China Daily.

Info of foreign borrowers to be included inChina’s credit system

Foreign borrowers’ financial information will be recorded in China’s national credit system, and the People’s Bank of China (PBOC) is studying the feasibility ofa cross-border information sharing mechanism to improve services for foreigners and prevent credit risks. Foreigners wishing to borrow money from financial institutions in Chinashould register their nationality on personal credit reports, anew requirement of the PBOC, said Wang Xiaolei, Deputy Director of the PBOC Credit Reference Center. The central bank will notify foreigners before collecting the additional information, she said. Chinese financial institutions need to know about foreign borrowers’ previous credit records, including such activities in other countries, and to rate their

credit history before issuing loans. Changes to the national credit system are being worked out.

The PBOC released a statement indicating that more credit information will be included in the system in order to accurately assess credit risks and minimize defaults. The information will cover payment history of utility bills, loans jointly borrowed by more than one person, and guarantee arrangements between individuals and corporations. The PBOC’s updated credit information system will help improve accuracy of information used by banks in their credit decision-making processes, Nicholas Zhu, Vice President and Senior Banking Analyst at Moody’s, told China Daily.

The national credit information database was launched in 2006, and is managed by the PBOC. It now covers information on 259.18 million enterprises and 990 million individuals. The central bank has issued a license to Baihang Credit, China’s only licensed market-based personal credit agency, to expand the system to all of society, including consumer credit information. Baihang uses big-data digital technology to process activities such as mobile phone usage, travel, locational data and purchasing history, the China Daily reports.

Services, IT and media become top job sectorsfor expats in China

The service sector, IT and media industries have overtaken the education sector as major job sources for expats in China, according the 2019 Job Fair for Foreigners in Beijing, organized by the Foreign Talent Research Center and the State Administration of Foreign Experts Affairs. The Job Fair attracted more than 500 expats with nearly 1,000 jobs available in a range of professions. The expat job market, once dominated by language teachers, has seen a major shift. Approximately half the jobs available at the fair were in the sales, media, marketing and IT sectors, including openings for journalists,brand and communication managers, and software engineers.

“A certain level of Mandarin proficiency is an advantage,” said Yang Jiayin, Project Manager of the research center. The best-paying jobs generally require the ability to speak Mandarin and salaries are higher comparedto the same jobs without the language requirement.” Yang added that the income gap between expats and Chinese employees in the same positions has been reduced in past decades. The annual salary of a foreign employee would

NEWSLETTER 30 APRIL 2019 11

be five to 10 times higher than that of a Chinese employee in the 2000s, but is now reduced to about two to three times – partly because salaries paid to Chinese have risen faster than expat salaries. Data from the previous 10 years show that more than 50% of job seekers are from Europeancountries, with a majority from Spain and Portugal, while about 25% are from Asian countries, with a majority from India.

Last year, China issued about 336,000 work permits to foreigners. There were more than 950,000 expats working in the country as of the end of last year, compared to only 180,000 in 1996. The increasing number of expats working in China has also boosted related services targeting foreigners, such as restaurants catering to foreigners’ tastes and fast food delivery services, the China Daily reports.

Your banner at the FCCC website or newsletter

Companies interested in posting a banner/an advertisement on the FCCC website, FCCC weekly newsletter or bi-weekly sectoral newsletters are kindly invited to contact the FCCC at: info@flanders-china.be

Organisation and founding members of the Flanders-China Chamber of Commerce

Chairman: Mr. Stefaan Vanhooren, President Agfa Graphics, Member of the Executive Committee of the Agfa Gevaert Group, NV THE AGFA-GEVAERT GROUP SA

Vice-Chairmen: Mr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Philippe Van der Donckt, Director Government Affairs Asia, NV UMICORE SASecretary and Treasurer: Wim Eraly, Senior General Manager, NV KBC Bank SAExecutive Director: Ms. Gwenn SonckMembers of the Board of Directors and Founding Members:Mr. Stefaan Vanhooren, President Agfa Graphics, Member of the Executive Committee of the Agfa Gevaert Group, NV THE AGFA-GEVAERT GROUP SAMr. Christian Leysen, Executive Chairman, NV AHLERS SAMr. Filip Pintelon, Senior Vice President, GM Healthcare, NV BARCO SAMr. Philip Eyskens, Senior Vice President Legal, IT and M&A, NV BEKAERT SAMr. Philip Hermans, General Manager, NV DEME SAMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Wim Eraly, Senior General Manager, KBC Bank SAMr. Johan Verstraete, Vice-President Marketing, Sales & Services Weaving Solutions, NV PICANOL SAMr. Philippe Van der Donckt, Director Government Affairs Asia, NV UMICORE SA

Membership rates for 2019 (excl. VAT)

● SMEs: €405 (€490.05 incl. VAT)● Large enterprises: €1,025 (€1,240.25 incl. VAT)

Contact

Flanders-China Chamber of CommerceOffice: Ajuinlei 1, B-9000 Gent – Belgium New telephone and fax numbers: Tel.: +32/9/269.52.46 – Fax: ++32/9/269.52.99E-mail: info@flanders-china.be Website: www.flanders-china.be

Share your story

To send your input for publication in a future newsletter mailto: info@flanders-china.be

The FCCC Newsletters are edited by Michel Lens, who is based in Beijing and can be contacted by e-mail michel.jc.lens@gmail.com . Disclaimer: the views expressed in this newsletter are not necessarily those of the FCCC or its Board of Directors.

NEWSLETTER 30 APRIL 2019 11

be five to 10 times higher than that of a Chinese employee in the 2000s, but is now reduced to about two to three times – partly because salaries paid to Chinese have risen faster than expat salaries. Data from the previous 10 years show that more than 50% of job seekers are from Europeancountries, with a majority from Spain and Portugal, while about 25% are from Asian countries, with a majority from India.

Last year, China issued about 336,000 work permits to foreigners. There were more than 950,000 expats working in the country as of the end of last year, compared to only 180,000 in 1996. The increasing number of expats working in China has also boosted related services targeting foreigners, such as restaurants catering to foreigners’ tastes and fast food delivery services, the China Daily reports.

Your banner at the FCCC website or newsletter

Companies interested in posting a banner/an advertisement on the FCCC website, FCCC weekly newsletter or bi-weekly sectoral newsletters are kindly invited to contact the FCCC at: info@flanders-china.be

Organisation and founding members of the Flanders-China Chamber of Commerce

Chairman: Mr. Stefaan Vanhooren, President Agfa Graphics, Member of the Executive Committee of the Agfa Gevaert Group, NV THE AGFA-GEVAERT GROUP SA

Vice-Chairmen: Mr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Philippe Van der Donckt, Director Government Affairs Asia, NV UMICORE SASecretary and Treasurer: Wim Eraly, Senior General Manager, NV KBC Bank SAExecutive Director: Ms. Gwenn SonckMembers of the Board of Directors and Founding Members:Mr. Stefaan Vanhooren, President Agfa Graphics, Member of the Executive Committee of the Agfa Gevaert Group, NV THE AGFA-GEVAERT GROUP SAMr. Christian Leysen, Executive Chairman, NV AHLERS SAMr. Filip Pintelon, Senior Vice President, GM Healthcare, NV BARCO SAMr. Philip Eyskens, Senior Vice President Legal, IT and M&A, NV BEKAERT SAMr. Philip Hermans, General Manager, NV DEME SAMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Wim Eraly, Senior General Manager, KBC Bank SAMr. Johan Verstraete, Vice-President Marketing, Sales & Services Weaving Solutions, NV PICANOL SAMr. Philippe Van der Donckt, Director Government Affairs Asia, NV UMICORE SA

Membership rates for 2019 (excl. VAT)

● SMEs: €405 (€490.05 incl. VAT)● Large enterprises: €1,025 (€1,240.25 incl. VAT)

Contact

Flanders-China Chamber of CommerceOffice: Ajuinlei 1, B-9000 Gent – Belgium New telephone and fax numbers: Tel.: +32/9/269.52.46 – Fax: ++32/9/269.52.99E-mail: info@flanders-china.be Website: www.flanders-china.be

Share your story

To send your input for publication in a future newsletter mailto: info@flanders-china.be

The FCCC Newsletters are edited by Michel Lens, who is based in Beijing and can be contacted by e-mail michel.jc.lens@gmail.com . Disclaimer: the views expressed in this newsletter are not necessarily those of the FCCC or its Board of Directors.