Are you ready for China

AreyoureadyforChina

www.cbbc.org ���AdviceΙ���SupportΙ ���Networking

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

www.cbbc.org ���AdviceΙ ���SupportΙ ���Networking

China-BritainBusinessCouncil

§  TheleadingorganisaConhelpingUKcompaniesdobusinessinChina

§  Established1954–over60yearshelpingBriCshcompaniesinChina

§  AmembershiporganisaCon,withover1,000members

§  Networkof23officesacrossChinaandtheUK

§  130staff,includingover100basedinChina

§  Advice,Support&Networking

§  Servingcompaniesofallsizesinallindustrysectors

§  ‘Merged’withBriCshChamberofCommerceinBeijing

§  UKTIstrategicpartner

www.cbbc.org ���AdviceΙ ���SupportΙ ���Networking

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

www.cbbc.org ���AdviceΙ���SupportΙ ���Networking

[email protected]

FollowupBusinessClinic,17March–Leeds

Keepintouch