EU Gateway to China · Founding Dean Xiang Bing and Xu Chenggang, winner of the inaugural China Economics Prize, will be joined by ... Premier Li Keqiang called on the European Union

Newsletter10 July 2018

FCCC/EUCBA ACTIVITIESInvitation to the Shanghai Fengxian Investment Seminar – 16 July 2018 – Brussels

On the occasion of Shanghai Fengxian delegation’s visit to Brussels and with the launch of the first China International ImportExpo, you’re cordially invited to join us at the “Shanghai Fengxian Investment Seminar” at Radisson Blu Royal Hotel (Add: Rue du Fossé-aux-Loups 47, 1000 Brussels), 15:00-17:00, Monday, July 16 th, 2018.

The seminar is organized by the People’s Government of Fengxian District, which is the core city of southern Shanghai. We will provide attendees with the latest development and opportunities of Fengxian and the strategic positioning, unrivaled strengths, key industrial resources and how to do business in China through Fengxian.

Detailed agenda (draft) is as follows:Date: Monday, July 16th, 2018Time: 15:00-16:30Venue: Meeting Room Amsterdam & Luxembourg on 1st Floor, Radisson Blu Royal Hotel (Add: Rue du Fossé-aux-Loups 47, 1000 Brussels)Theme: Investment Opportunities in Fengxian, Shanghai, PRCLanguage: English and Chinese (consecutive interpretation available)Speaker: Mr. Gu Yi , Deputy mayor of Fengxian DistrictWelcome remarks Presentations Investment Environment introductionAdvantageous Industry-- Oriental Beauty Valley, China's only cosmetic industrial parkQ&A

Newsletter10 July 2018

FCCC/EUCBA ACTIVITIESInvitation to the Shanghai Fengxian Investment Seminar – 16 July 2018 – Brussels

On the occasion of Shanghai Fengxian delegation’s visit to Brussels and with the launch of the first China International ImportExpo, you’re cordially invited to join us at the “Shanghai Fengxian Investment Seminar” at Radisson Blu Royal Hotel (Add: Rue du Fossé-aux-Loups 47, 1000 Brussels), 15:00-17:00, Monday, July 16 th, 2018.

The seminar is organized by the People’s Government of Fengxian District, which is the core city of southern Shanghai. We will provide attendees with the latest development and opportunities of Fengxian and the strategic positioning, unrivaled strengths, key industrial resources and how to do business in China through Fengxian.

Detailed agenda (draft) is as follows:Date: Monday, July 16th, 2018Time: 15:00-16:30Venue: Meeting Room Amsterdam & Luxembourg on 1st Floor, Radisson Blu Royal Hotel (Add: Rue du Fossé-aux-Loups 47, 1000 Brussels)Theme: Investment Opportunities in Fengxian, Shanghai, PRCLanguage: English and Chinese (consecutive interpretation available)Speaker: Mr. Gu Yi , Deputy mayor of Fengxian DistrictWelcome remarks Presentations Investment Environment introductionAdvantageous Industry-- Oriental Beauty Valley, China's only cosmetic industrial parkQ&A

NEWSLETTER 10 JULY 2018 2

Please kindly R.S.V.P. by July 14th, 2018 to Ivy Wei (M: +86 134 1868 6439, Email: [email protected]), confirming your full name and title. Thanks for your kind support!

Invitation: CKGSB's 5th China EconomicSymposium – 19 July 2018 – London

Featuring a stellar line-up of officials, academics and business leaders, CKGSB’s 5th China Economic Symposium: What’s Next for the Golden Era of UK-China Relations, co-hosted by the Cheung Kong GraduateSchool of Business (CKGSB) and the Institute of Directors (IoD), will take place in London on July 19th, 2018.

Last year, China’s economy grew at a better-than-expected 6.9%, bolstering one-third of global growth, thanks largely to housing, infrastructure investment, exports and retail sales. That growth in the world’s second-biggest economy has continued into 2018 and looks to have stabilized after several years of slowing. But how can the UK tap into this remarkable growth story and what can we expect for the so-called “golden era” of UK-China relations? China’s Belt and Road Initiative has presented vast investment opportunities and policy benefits to European business leaders, but with countries all around the world wanting a piece of China’s pie, how can global business leaders capitalize and, more specifically, what new trends in bilateral economic ties will emerge as a result?

Four well-known professors from CKGSB, including Founding Dean Xiang Bing and Xu Chenggang, winner of the inaugural China Economics Prize, will be joined by Chinese Ambassador to the UK H. E. Liu Xiaoming, Jaguar Land Rover CEO Ralf Speth, Bank of China (UK) CEO SunYu, United Nations Conference on Trade and Development Enterprise Head Tatiana Krylova, Financial Times reporter Jonathan Moules and many more to discuss these, and other, issues. A select invite-only audience will be in attendance at the IoD headquarters in London, while the event will be live-streamed online in both English and Chinese for those unable to attend. Previous editions of theCKGSB China Economic Symposium have attracted more than half a million viewers online via major media platforms.

This event is organized in cooperation with the EU-China Business Association (EUCBA).

To view the full agenda and register your interest please visit here.

ACTIVITIES SUPPORTED BYFCCC

China International Import Expo – November 5-10, 2018 – Shanghai

In May 2017, Chinese President Xi Jinping announced at the Belt and Road Forum for International Cooperation that China will hold the first China International Import Expo (CIIE) starting from 2018. It is a significant move for the Chinese Government to hold CIIE to firmly supporting tradeliberalization and economic globalization and actively opening the market to the world.

We have the pleasure to inform you that your company is kindly invited to participate in the China International ImportExpo (CIIE). This international fair will take place at the National Exhibition and Convention Center in Shanghai from 5 to 10 November 2018.

The CIIE is hosted by the Ministry of Commerce of the People’s Republic of China and the Shanghai Municipal People’s Government and supported by the World Trade Organization, United Nations Conference on Trade and Development and the United Nations Industrial Development Organization. The Fair is organised by the China International Import Expo Bureau and the China National Exhibition and Convention Center (Shanghai).

China is the second largest economy, as well as the secondlargest importer and consumer in the world. China has entered a new development stage at which consumption

NEWSLETTER 10 JULY 2018 2

Please kindly R.S.V.P. by July 14th, 2018 to Ivy Wei (M: +86 134 1868 6439, Email: [email protected]), confirming your full name and title. Thanks for your kind support!

Invitation: CKGSB's 5th China EconomicSymposium – 19 July 2018 – London

Featuring a stellar line-up of officials, academics and business leaders, CKGSB’s 5th China Economic Symposium: What’s Next for the Golden Era of UK-China Relations, co-hosted by the Cheung Kong GraduateSchool of Business (CKGSB) and the Institute of Directors (IoD), will take place in London on July 19th, 2018.

Last year, China’s economy grew at a better-than-expected 6.9%, bolstering one-third of global growth, thanks largely to housing, infrastructure investment, exports and retail sales. That growth in the world’s second-biggest economy has continued into 2018 and looks to have stabilized after several years of slowing. But how can the UK tap into this remarkable growth story and what can we expect for the so-called “golden era” of UK-China relations? China’s Belt and Road Initiative has presented vast investment opportunities and policy benefits to European business leaders, but with countries all around the world wanting a piece of China’s pie, how can global business leaders capitalize and, more specifically, what new trends in bilateral economic ties will emerge as a result?

Four well-known professors from CKGSB, including Founding Dean Xiang Bing and Xu Chenggang, winner of the inaugural China Economics Prize, will be joined by Chinese Ambassador to the UK H. E. Liu Xiaoming, Jaguar Land Rover CEO Ralf Speth, Bank of China (UK) CEO SunYu, United Nations Conference on Trade and Development Enterprise Head Tatiana Krylova, Financial Times reporter Jonathan Moules and many more to discuss these, and other, issues. A select invite-only audience will be in attendance at the IoD headquarters in London, while the event will be live-streamed online in both English and Chinese for those unable to attend. Previous editions of theCKGSB China Economic Symposium have attracted more than half a million viewers online via major media platforms.

This event is organized in cooperation with the EU-China Business Association (EUCBA).

To view the full agenda and register your interest please visit here.

ACTIVITIES SUPPORTED BYFCCC

China International Import Expo – November 5-10, 2018 – Shanghai

In May 2017, Chinese President Xi Jinping announced at the Belt and Road Forum for International Cooperation that China will hold the first China International Import Expo (CIIE) starting from 2018. It is a significant move for the Chinese Government to hold CIIE to firmly supporting tradeliberalization and economic globalization and actively opening the market to the world.

We have the pleasure to inform you that your company is kindly invited to participate in the China International ImportExpo (CIIE). This international fair will take place at the National Exhibition and Convention Center in Shanghai from 5 to 10 November 2018.

The CIIE is hosted by the Ministry of Commerce of the People’s Republic of China and the Shanghai Municipal People’s Government and supported by the World Trade Organization, United Nations Conference on Trade and Development and the United Nations Industrial Development Organization. The Fair is organised by the China International Import Expo Bureau and the China National Exhibition and Convention Center (Shanghai).

China is the second largest economy, as well as the secondlargest importer and consumer in the world. China has entered a new development stage at which consumption

NEWSLETTER 10 JULY 2018 3

keeps increasing, indicating an enormous potential for the growth of consumption and import. In the next five years, China is expecting to import products and services valuing more than 10 trillion U.S. dollars, which provides a historic opportunity for enterprises across the world to enter the large Chinese market.

The following sectors will be represented in the Fair:High-end intelligent equipment; consumer electronics & appliances; apparel, accessories & consumer goods; automobile; food & agricultural products; medical equipment & medical care products, trade in services (tourism, education, emerging technologies, culture, creative design and service outsourcing).

More information and booking details can be found at the official website of the National Exhibition and Convention Center (Shanghai): www.neccsh.com.

If you are interested in participating, contact Flanders Investment & Trade Shanghai, the contact point for Belgiumfor CIIE at [email protected]

We also kindly ask you to send an e-mail to [email protected].

ADVERTISEMENT ANDSPONSORSHIP

Interested in advertisement in the FCCC Weekly or on the FCCC website? Send an e-mail to [email protected]

FOREIGN TRADE

Imposition of tariffs marks official start of China-U.S. trade war

At 12:01 am on June 6 (Washington time) the U.S. imposed tariffs of 25% on 818 Chinese import productsworth USD34 billion. China immediately retaliated by imposing its own tariffs on the same amount of U.S. products it imports. This marks the official start of the long-awaited trade war between China and the U.S. The U.S. is expected to impose a second round of tariffs targeting 284 Chinese products worth USD16 billion in the coming weeks and U.S. President Donald Trump has said that if China retaliates – which it did immediately – he is considering to impose tariffs of an extra 10% on another list of Chinese imports worth USD200 billion. The main sectors hit are machinery and electronics as well as information and communications technology, according to an analysis of thetariffs by insurance company Credendo.

“The United States has ignited the largest trade war in economic history,” China’s Ministry of Commerce (MOFCOM) said. “The Chinese side, having vowed not to fire the first shot, was forced to stage counter-attacks to protect the core national interests and interests of its people.” Wei Jianguo, former Vice Minister of Commerce, said the conflict would affect the global value chain and people should not expect a swift resolution. “The trade war will last for a long time,” he said. Now Vice Chairman of the government-backed China Center for International Economic Exchanges, Wei said that China was “prepared to fight to defeat the unilateralism of the U.S.”. Beijing also said that it will file a complaint against the U.S. with the World Trade Organization (WTO). The initial impact of the tariffs may not significantly hurt China’s economy – the People’s Bank of China (PBOC) expects a decline of about

NEWSLETTER 10 JULY 2018 3

keeps increasing, indicating an enormous potential for the growth of consumption and import. In the next five years, China is expecting to import products and services valuing more than 10 trillion U.S. dollars, which provides a historic opportunity for enterprises across the world to enter the large Chinese market.

The following sectors will be represented in the Fair:High-end intelligent equipment; consumer electronics & appliances; apparel, accessories & consumer goods; automobile; food & agricultural products; medical equipment & medical care products, trade in services (tourism, education, emerging technologies, culture, creative design and service outsourcing).

More information and booking details can be found at the official website of the National Exhibition and Convention Center (Shanghai): www.neccsh.com.

If you are interested in participating, contact Flanders Investment & Trade Shanghai, the contact point for Belgiumfor CIIE at [email protected]

We also kindly ask you to send an e-mail to [email protected].

ADVERTISEMENT ANDSPONSORSHIP

Interested in advertisement in the FCCC Weekly or on the FCCC website? Send an e-mail to [email protected]

FOREIGN TRADE

Imposition of tariffs marks official start of China-U.S. trade war

At 12:01 am on June 6 (Washington time) the U.S. imposed tariffs of 25% on 818 Chinese import productsworth USD34 billion. China immediately retaliated by imposing its own tariffs on the same amount of U.S. products it imports. This marks the official start of the long-awaited trade war between China and the U.S. The U.S. is expected to impose a second round of tariffs targeting 284 Chinese products worth USD16 billion in the coming weeks and U.S. President Donald Trump has said that if China retaliates – which it did immediately – he is considering to impose tariffs of an extra 10% on another list of Chinese imports worth USD200 billion. The main sectors hit are machinery and electronics as well as information and communications technology, according to an analysis of thetariffs by insurance company Credendo.

“The United States has ignited the largest trade war in economic history,” China’s Ministry of Commerce (MOFCOM) said. “The Chinese side, having vowed not to fire the first shot, was forced to stage counter-attacks to protect the core national interests and interests of its people.” Wei Jianguo, former Vice Minister of Commerce, said the conflict would affect the global value chain and people should not expect a swift resolution. “The trade war will last for a long time,” he said. Now Vice Chairman of the government-backed China Center for International Economic Exchanges, Wei said that China was “prepared to fight to defeat the unilateralism of the U.S.”. Beijing also said that it will file a complaint against the U.S. with the World Trade Organization (WTO). The initial impact of the tariffs may not significantly hurt China’s economy – the People’s Bank of China (PBOC) expects a decline of about

NEWSLETTER 10 JULY 2018 4

0.2% from gross domestic product growth.The current U.S. tariffs affect less than 1% of China’s total exports.

Washington’s list is heavy on tech goods, aiming in part to shift supply chains away from China, while Beijing has put politically sensitive U.S. farm goods in the firing line. “For simple products it’s going to be faster to shiftproduction, but for more complex products it’s going to be difficult,” said Denis Depoux at consultancy Roland Berger. The quickest manufacturers would need at least a year and“won’t make the changes until they know this is real and here to stay”, he said. The Chinese government has said it will protect the “legitimate interests” of foreign businesses inChina, an indication that it would not retaliate against U.S. companies with investments in China. U.S. companies had USD256 billion in investment in China by the end of last year.

Ahead of the possible imposition of tariffs by the U.S., the Chinese government had announced that it would not “fire the first shot” but only retaliate after the U.S. made the first move. Premier Li Keqiang called on the European Union to work with China amid rising unilateralism and protectionism. Li made the comment in a phone call with EU Commission President Jean-Claude Juncker, a day ahead of his visit to Bulgaria and Germany. Premier Li attended the seventh Leaders’ Meeting of China and Central and Eastern European Countries in the Bulgarian capital of Sofia. He also co-chaired the fifth China-Germanyintergovernmental consultation in Berlin.

China’s General Administration of Customs released first-half and June export data days ahead of schedule as it expected the U.S. to impose the tariffs. Growth in China’s U.S.-bound shipments slowed to 5.4% in the first six months from 19.3% a year earlier. June export growth was even slower at 3.8%, down 23.8 percentage points from the same period in 2017. China’s exports of electronics and mechanical products to the U.S. grew 8% year-on-year in the first half, accounting for 62.6% of total shipments. Shipments of labor-intensive products were flat in the same period, while garment sales dropped 1.8%. ANZ Bank Chief Greater China Economist Raymond Yeungsaid the early release was “a sign of goodwill” from Beijing, indicating that Chinese exports to the U.S. were losing steam.

Chinese companies are expected to cancel most of the remaining soybeans they have committed to buy from the United States in the year ending August 31 as the extra tariff on U.S. imports took effect. China is the world’s

top soybean buyer and has yet to take delivery of more than 1.1 million tons booked for the current marketing year. “These shipments will be either cancelled or resold if extra tariffs are imposed,” said Gao Yanbin, Investment Manager with agriculture investment firm Shanghai Shenkai Investment Co. “The tariff rate is too high which will make crushers lose money,” but some cargoes will get through because shipments destined for state reserves are free from tariffs, Gao said.

In a small sign of goodwill from the U.S., ZTE Corp has been allowed to temporarily resume businessactivities from July 2 to August 1. U.S. companies will also be allowed to sell their products to ZTE. But the dispute hasnot been settled yet as ZTE’s new Board of Directors still needs to become fully operational and two bills before the U.S. Congress including penalties on ZTE still need to be reconciled and signed by President Trump.

U.S. chipmaker Micron Technology has been slapped by the Fuzhou Intermediate People’s Court with a preliminary injunction temporarily stopping it from selling parts of its products in China amid patent disputes with rival United Microelectronics Corp (UMC).

China calls for dispute settlement mechanism forcountries involved in the Belt and Road Initiative

China's Ministry of Foreign Affairs and the China Law Society called on countries involved in the Belt and Road Initiative (BRI) to improve international rules-based systemsand to establish dispute settlement mechanisms to fairly protect the rights of all parties, according to a statement from a forum on BRI legal cooperation. The parties participating in the BRI are encouraged to promote laws to enhance cooperation related to financing, taxation, transportation, intellectual property rights, labor and counter-terrorism.

NEWSLETTER 10 JULY 2018 4

0.2% from gross domestic product growth.The current U.S. tariffs affect less than 1% of China’s total exports.

Washington’s list is heavy on tech goods, aiming in part to shift supply chains away from China, while Beijing has put politically sensitive U.S. farm goods in the firing line. “For simple products it’s going to be faster to shiftproduction, but for more complex products it’s going to be difficult,” said Denis Depoux at consultancy Roland Berger. The quickest manufacturers would need at least a year and“won’t make the changes until they know this is real and here to stay”, he said. The Chinese government has said it will protect the “legitimate interests” of foreign businesses inChina, an indication that it would not retaliate against U.S. companies with investments in China. U.S. companies had USD256 billion in investment in China by the end of last year.

Ahead of the possible imposition of tariffs by the U.S., the Chinese government had announced that it would not “fire the first shot” but only retaliate after the U.S. made the first move. Premier Li Keqiang called on the European Union to work with China amid rising unilateralism and protectionism. Li made the comment in a phone call with EU Commission President Jean-Claude Juncker, a day ahead of his visit to Bulgaria and Germany. Premier Li attended the seventh Leaders’ Meeting of China and Central and Eastern European Countries in the Bulgarian capital of Sofia. He also co-chaired the fifth China-Germanyintergovernmental consultation in Berlin.

China’s General Administration of Customs released first-half and June export data days ahead of schedule as it expected the U.S. to impose the tariffs. Growth in China’s U.S.-bound shipments slowed to 5.4% in the first six months from 19.3% a year earlier. June export growth was even slower at 3.8%, down 23.8 percentage points from the same period in 2017. China’s exports of electronics and mechanical products to the U.S. grew 8% year-on-year in the first half, accounting for 62.6% of total shipments. Shipments of labor-intensive products were flat in the same period, while garment sales dropped 1.8%. ANZ Bank Chief Greater China Economist Raymond Yeungsaid the early release was “a sign of goodwill” from Beijing, indicating that Chinese exports to the U.S. were losing steam.

Chinese companies are expected to cancel most of the remaining soybeans they have committed to buy from the United States in the year ending August 31 as the extra tariff on U.S. imports took effect. China is the world’s

top soybean buyer and has yet to take delivery of more than 1.1 million tons booked for the current marketing year. “These shipments will be either cancelled or resold if extra tariffs are imposed,” said Gao Yanbin, Investment Manager with agriculture investment firm Shanghai Shenkai Investment Co. “The tariff rate is too high which will make crushers lose money,” but some cargoes will get through because shipments destined for state reserves are free from tariffs, Gao said.

In a small sign of goodwill from the U.S., ZTE Corp has been allowed to temporarily resume businessactivities from July 2 to August 1. U.S. companies will also be allowed to sell their products to ZTE. But the dispute hasnot been settled yet as ZTE’s new Board of Directors still needs to become fully operational and two bills before the U.S. Congress including penalties on ZTE still need to be reconciled and signed by President Trump.

U.S. chipmaker Micron Technology has been slapped by the Fuzhou Intermediate People’s Court with a preliminary injunction temporarily stopping it from selling parts of its products in China amid patent disputes with rival United Microelectronics Corp (UMC).

China calls for dispute settlement mechanism forcountries involved in the Belt and Road Initiative

China's Ministry of Foreign Affairs and the China Law Society called on countries involved in the Belt and Road Initiative (BRI) to improve international rules-based systemsand to establish dispute settlement mechanisms to fairly protect the rights of all parties, according to a statement from a forum on BRI legal cooperation. The parties participating in the BRI are encouraged to promote laws to enhance cooperation related to financing, taxation, transportation, intellectual property rights, labor and counter-terrorism.

NEWSLETTER 10 JULY 2018 5

The statement also proposed the establishment of treaty-based mechanisms or institutions to prevent and resolve disputes and to strengthen mutual recognition and enforcement of judgments in civil and commercial matters, and establish an online platform that provides information on foreign laws and judicial cases. Kong Xuanyou, Vice Minister of Foreign Affairs, and Chen Jiping, Executive Vice President of the China Law Society, were co-chairs of the BRI forum on legal cooperation.

Government officials and experts attending the forum said that dispute settlement mechanisms should be transparent and fair to all countries. Qu Guangqing, President of Quanzhou Normal University in Fujian Province, told the Global Times that to ensure fairness and transparency, dispute settlement mechanisms should be established and led by third-party international organizations rather than dominated by one country. The forum, jointly held by the Ministry of Foreign Affairs of China and the China Law Society, attracted more than 350 delegates from governments, international organizations and academic institutions. Nearly 90 countries and international organizations have signed Belt and Road Initiative cooperation agreements with China. China has invested USD70 billion in Belt and Road projects in other countries.

Simon Peh, Commissioner of Hong Kong’s Independent Commission Against Corruption (ICAC), has urged local investors to shun corrupt overseas business deals whenjoining China’s Belt and Road Initiative (BRI), warning of rampant bribery in some countries. “The corruption situationis very serious in some countries,” he said. “Bribery is everywhere. It is beyond our imagination as such practices have been rooted out of Hong Kong for a long while.” The BRI, announced five years ago, seeks to boost economic and infrastructure links across more than 60 countries in three continents, including the 10 ASEAN member-states. Peh said 13 Belt and Road countries including Bangladesh and Sri Lanka had approached the ICAC for help with training officials since last September.

FINANCE

China surpasses North America in attractingventure capital funding

China surpassed North America in attracting venture capitalfor the first time in the second quarter, helped by a record USD14 billion fundraising round by Alibaba Group Holding affiliate Ant Financial Services. Start-ups in China accounted for 47% of the world’s VC funding in the three months ended June, compared with a combined 35% for the U.S. and Canada, according to a report by Crunchbase, which tracks and compiles fundraising data.

The surge in China fundraising in the second quarter could be attributed to Ant Financial, which raised about USD14 billion last month. Investors, including Singapore’s GIC and Temasek Holdings, Warburg Pincus, Canada Pension Plan Investment Board and Silver Lake, took part in the fundraising, while existing shareholders supported a yuan-denominated tranche. The financing brought Ant Financial’svaluation to more than USD150 billion, which is roughly double Uber Technologies’ valuation. Excluding Ant Financial, China’s start-ups raised just slightly more than they did in the first quarter, taking up 36% of the global total, according to Crunchbase.

China has seen a surge in the number of start-ups in recentyears as the government vowed to do more to implement an innovation-driven development strategy to make the country more competitive and transform itself from the factory floor of the world into a global innovation powerhouse. Venture capitalists poured billions into areas from artificial intelligence to blockchain, lured by the prospect of backing the next Alibaba, Tencent Holdings or Baidu, while start-up founders aspired to become billionaires like Jack Ma or Pony Ma, the South China Morning Post reports.

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The statement also proposed the establishment of treaty-based mechanisms or institutions to prevent and resolve disputes and to strengthen mutual recognition and enforcement of judgments in civil and commercial matters, and establish an online platform that provides information on foreign laws and judicial cases. Kong Xuanyou, Vice Minister of Foreign Affairs, and Chen Jiping, Executive Vice President of the China Law Society, were co-chairs of the BRI forum on legal cooperation.

Government officials and experts attending the forum said that dispute settlement mechanisms should be transparent and fair to all countries. Qu Guangqing, President of Quanzhou Normal University in Fujian Province, told the Global Times that to ensure fairness and transparency, dispute settlement mechanisms should be established and led by third-party international organizations rather than dominated by one country. The forum, jointly held by the Ministry of Foreign Affairs of China and the China Law Society, attracted more than 350 delegates from governments, international organizations and academic institutions. Nearly 90 countries and international organizations have signed Belt and Road Initiative cooperation agreements with China. China has invested USD70 billion in Belt and Road projects in other countries.

Simon Peh, Commissioner of Hong Kong’s Independent Commission Against Corruption (ICAC), has urged local investors to shun corrupt overseas business deals whenjoining China’s Belt and Road Initiative (BRI), warning of rampant bribery in some countries. “The corruption situationis very serious in some countries,” he said. “Bribery is everywhere. It is beyond our imagination as such practices have been rooted out of Hong Kong for a long while.” The BRI, announced five years ago, seeks to boost economic and infrastructure links across more than 60 countries in three continents, including the 10 ASEAN member-states. Peh said 13 Belt and Road countries including Bangladesh and Sri Lanka had approached the ICAC for help with training officials since last September.

FINANCE

China surpasses North America in attractingventure capital funding

China surpassed North America in attracting venture capitalfor the first time in the second quarter, helped by a record USD14 billion fundraising round by Alibaba Group Holding affiliate Ant Financial Services. Start-ups in China accounted for 47% of the world’s VC funding in the three months ended June, compared with a combined 35% for the U.S. and Canada, according to a report by Crunchbase, which tracks and compiles fundraising data.

The surge in China fundraising in the second quarter could be attributed to Ant Financial, which raised about USD14 billion last month. Investors, including Singapore’s GIC and Temasek Holdings, Warburg Pincus, Canada Pension Plan Investment Board and Silver Lake, took part in the fundraising, while existing shareholders supported a yuan-denominated tranche. The financing brought Ant Financial’svaluation to more than USD150 billion, which is roughly double Uber Technologies’ valuation. Excluding Ant Financial, China’s start-ups raised just slightly more than they did in the first quarter, taking up 36% of the global total, according to Crunchbase.

China has seen a surge in the number of start-ups in recentyears as the government vowed to do more to implement an innovation-driven development strategy to make the country more competitive and transform itself from the factory floor of the world into a global innovation powerhouse. Venture capitalists poured billions into areas from artificial intelligence to blockchain, lured by the prospect of backing the next Alibaba, Tencent Holdings or Baidu, while start-up founders aspired to become billionaires like Jack Ma or Pony Ma, the South China Morning Post reports.

NEWSLETTER 10 JULY 2018 6

CHINA NEWS ROUND-UP

Pollution action plans calls for cut in coalconsumption

China will cut coal consumption, boost electric vehicle salesand shut more outdated steel and coke capacity in the coming three years, the State Council said in a long-awaited 2018 to 2020 pollution action plan. China is in the fifth year of a “war on pollution” aimed at reversing the damage done to the country’s environment since the economy was opened up in 1978. The new action plan will expand the fight to 82 cities across China, and confirmed that the major coal-producing provinces of Shanxi and Shaanxi have been added to the list of “key” pollution control regions. The new plan will also cover the heavily industrialized province of Henan in central China, aswell as the Yangtze River Delta, which includes the provinces of Anhui, Zhejiang, Jiangsu and the region around Shanghai.

The document said the regions of Beijing, Tianjin, Hebei, Shandong and Henan will be required to cut coal consumption by 10% over the 2016 to 2020 period, while the Yangtze delta region will have to cut coal use by 5% over the period. No new capacity for steel, coke and primary aluminum production will be allowed in the regions through to 2020. Steel capacity in Hebei, the country’s largest steelmaking province, will be capped at 200 million tons by 2020, down from 286 million tons in 2013. China will also take more action to tackle small-scale “scattered” pollution sources, and will work to cut off water, electricity and raw material supplies to firms that violate rules.

To meet its politically important smog targets in northern China last year, the government curbed traffic and coal use,and also imposed “one size fits all” restrictions on industrieslike steel, aluminum and cement throughout 28 northern cities from October 2017 to March this year. The Chinese government said special anti-smog measures would still be introduced over autumn and winter, but each of the 82 cities would now draw up its own plan. It also said it would raise gas storage capacity to ensure supplies were sufficient during winter. The plan also set an annual production and sales target for new energy vehicles at around 2 million vehicles a year by 2020 in order to reduce road emissions. Severe challenges remain. About 70% of the country’s 338 prefecture-level and bigger cities didn’t meet national standards for PM2.5, PM10, sulfur dioxide and nitrogen dioxide last year.

Use of industrial robots increasing rapidly inChina

China purchased 141,000 industrial robots in 2017, up 58.1% year-on-year, but foreign brands accountedfor nearly three quarters of that, showing that the gap is still widening between Chinese robot makers and their foreign peers. The China International Robot Industry Summit, held in Shanghai on July 3, said sales of industrial robots hit records in 2017. Among industrial robots, 37,825 were domestically manufactured, up 29.8% year-on-year.

“As robotics is expanding into nearly every industry, Chinese robot makers should realize the gap between themand foreign brands, take advantage of China’s robotics development boom and learn from foreign experience to help China grow from the world’s largest robot market into arobot manufacturing power,” said Qu Daokui, President of China Robot Industry Alliance and CEO of Shenyang-based Siasun Robot and Automation Co. According to Qu, foreign robot makers sold 103,191 robots to China in 2017, up 71.9% from a year earlier. Although Chinese domestic suppliers have expanded their market share to 32.7% in 2016, the trend was reversed in 2017, as their share shrankto 26.8%. In his report on the Global Market of Industrial Robots, Junji Tsuda, President of the International Federation of Robotics (IFR), noted that about 387,000 industrial robots were installed in 2017 worldwide, up 31% year-on-year, creating USD50 billion in revenue, with Chinaas one of the key drivers behind the strong growth. China has become the world’s largest industrial robot market since 2013, and currently its domestic suppliers are moving up the supplier chain by offering more high-end products in recent years.

In 2017, a majority of 64.7% of the robots sold in China were articulated robots, with their sales surging 66.6% year-on-year. Meanwhile, 42.1% of the robots sold by domestic suppliers were articulated robots, with sales rising35.5% from 2016. Experts said there is still great potential for China’s robot market. Robot density, or the number of robots per 10,000 persons used in the manufacturing industry, reached 101 last year in China, and it is going to reach 150 by 2020,” according to Zhu Sendi, Member ofthe National Manufacturing Strategy Advisory Committee and Secretary General of the Strategic Emerging IndustriesExpert Advisory Committee, the China Daily reports.

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CHINA NEWS ROUND-UP

Pollution action plans calls for cut in coalconsumption

China will cut coal consumption, boost electric vehicle salesand shut more outdated steel and coke capacity in the coming three years, the State Council said in a long-awaited 2018 to 2020 pollution action plan. China is in the fifth year of a “war on pollution” aimed at reversing the damage done to the country’s environment since the economy was opened up in 1978. The new action plan will expand the fight to 82 cities across China, and confirmed that the major coal-producing provinces of Shanxi and Shaanxi have been added to the list of “key” pollution control regions. The new plan will also cover the heavily industrialized province of Henan in central China, aswell as the Yangtze River Delta, which includes the provinces of Anhui, Zhejiang, Jiangsu and the region around Shanghai.

The document said the regions of Beijing, Tianjin, Hebei, Shandong and Henan will be required to cut coal consumption by 10% over the 2016 to 2020 period, while the Yangtze delta region will have to cut coal use by 5% over the period. No new capacity for steel, coke and primary aluminum production will be allowed in the regions through to 2020. Steel capacity in Hebei, the country’s largest steelmaking province, will be capped at 200 million tons by 2020, down from 286 million tons in 2013. China will also take more action to tackle small-scale “scattered” pollution sources, and will work to cut off water, electricity and raw material supplies to firms that violate rules.

To meet its politically important smog targets in northern China last year, the government curbed traffic and coal use,and also imposed “one size fits all” restrictions on industrieslike steel, aluminum and cement throughout 28 northern cities from October 2017 to March this year. The Chinese government said special anti-smog measures would still be introduced over autumn and winter, but each of the 82 cities would now draw up its own plan. It also said it would raise gas storage capacity to ensure supplies were sufficient during winter. The plan also set an annual production and sales target for new energy vehicles at around 2 million vehicles a year by 2020 in order to reduce road emissions. Severe challenges remain. About 70% of the country’s 338 prefecture-level and bigger cities didn’t meet national standards for PM2.5, PM10, sulfur dioxide and nitrogen dioxide last year.

Use of industrial robots increasing rapidly inChina

China purchased 141,000 industrial robots in 2017, up 58.1% year-on-year, but foreign brands accountedfor nearly three quarters of that, showing that the gap is still widening between Chinese robot makers and their foreign peers. The China International Robot Industry Summit, held in Shanghai on July 3, said sales of industrial robots hit records in 2017. Among industrial robots, 37,825 were domestically manufactured, up 29.8% year-on-year.

“As robotics is expanding into nearly every industry, Chinese robot makers should realize the gap between themand foreign brands, take advantage of China’s robotics development boom and learn from foreign experience to help China grow from the world’s largest robot market into arobot manufacturing power,” said Qu Daokui, President of China Robot Industry Alliance and CEO of Shenyang-based Siasun Robot and Automation Co. According to Qu, foreign robot makers sold 103,191 robots to China in 2017, up 71.9% from a year earlier. Although Chinese domestic suppliers have expanded their market share to 32.7% in 2016, the trend was reversed in 2017, as their share shrankto 26.8%. In his report on the Global Market of Industrial Robots, Junji Tsuda, President of the International Federation of Robotics (IFR), noted that about 387,000 industrial robots were installed in 2017 worldwide, up 31% year-on-year, creating USD50 billion in revenue, with Chinaas one of the key drivers behind the strong growth. China has become the world’s largest industrial robot market since 2013, and currently its domestic suppliers are moving up the supplier chain by offering more high-end products in recent years.

In 2017, a majority of 64.7% of the robots sold in China were articulated robots, with their sales surging 66.6% year-on-year. Meanwhile, 42.1% of the robots sold by domestic suppliers were articulated robots, with sales rising35.5% from 2016. Experts said there is still great potential for China’s robot market. Robot density, or the number of robots per 10,000 persons used in the manufacturing industry, reached 101 last year in China, and it is going to reach 150 by 2020,” according to Zhu Sendi, Member ofthe National Manufacturing Strategy Advisory Committee and Secretary General of the Strategic Emerging IndustriesExpert Advisory Committee, the China Daily reports.

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Shanghai aims to raise USD15 billion in funds forAI development

Shanghai plans to set up investment funds worth at least a total of CNY100 billion over the next two or three years to bolster the development of businesses related to artificial intelligence technologies. Chen Mingbo, Chairman of the Shanghai Commission of Economy and Information Technology, said the municipal government is looking at how to attract more public investors to raise capital for the funds, and high-calibre asset managers to run them.

“The size of CNY100 billion of funds may not be enough,” he said. “The key lies in whether we can successfully mobilize all public resources to collectively develop AI-related businesses.” Shanghai has been striving to regain its status as a major locomotive of the Chinese economy byspurring the growth in the finance and information technology sectors. City leaders have envisioned the creation of Shanghai’s own internet behemoths on par with the so-called BAT firms – Baidu, Alibaba Group Holding and Tencent Holdings.

Artificial intelligence, used in a wide range of areas such as autonomous driving, finance, medical and public security, isviewed by Shanghai officials as a key technology to accelerate the city’s transformation into a global innovation hub. Chen did not elaborate on the sources of the funds, but it is believed that the government will providethe seed capital before attracting well-known venture capitalists and private equity fund managers to participate in the fundraising and asset management.

“Capital, talent and policy incentives will play a vital role in transforming Shanghai into a real innovation hub,” said CaoHua, Partner at Unity Asset Management. “But competition is fierce since other Chinese cities are also aiming to attractmore technology giants and promising start-ups,” the SouthChina Morning Post reports.

HNA Group Chairman Wang Jian dies after a fallin France

Wang Jian, 57, Chairman of Chinese conglomerate HNAGroup – the parent company of Hainan Airlines – has died from injuries sustained after falling 15 meters onto rocks while posing for a photograph during a visit to France.The incident happened in the village of Bonnieux in the Provence region, according to the local police department.

Wang climbed onto a small wall for a photograph but lost his balance and fell. The wall was about 1.2 meters high and overlooked a cliff. Wang was standing on it when he tumbled 10 to 15 meters to the rocks below. An autopsy found nothing suspicious. Wang had been traveling with four other people and a tour guide.

Wang Jian was one of the driving forces behind the massive expansion of HNA Group. As co-founders, he and Chen Feng transformed a regional airline based in China’s tropical island province of Hainan into a conglomerate with USD230 billion in assets. Sources close to the company said Wang took a hands-on approach to running the company although Chen tended to be its public face. Wang and Chen were the largest individual shareholders of HNA Group with each holding a near-15% stake.

HNA had been on a leveraged shopping spree around the globe until about a year ago, spending an estimated USD40 billion since 2015 on a 25% stake in the Hilton hotelgroup, shares in Deutsche Bank, several golf courses, and four pieces of land in Hong Kong that sold for record prices.That all ended, however, when the Chinese government moved to curb overseas investment by private conglomerates as part of a wider campaign to contain financial risk. In less than a year, HNA went from buyer to seller. In the past few months, it has completed several major deals, including the disposal of its 25% stake in Spain’s NH Hotel Group for USD726 million and the sale of an office tower in Minneapolis, Minnesota, for USD320 million.

HNA Group appointed Chen Feng as Chairman following the death of Wang Jian to take over the deceased's responsibilities.

Foreigners in China to be allowed to open A-share stock accounts

China will allow foreign individuals working on the Chinese mainland to open yuan-denominated A-share accounts through local brokers, the China Securities Regulatory Commission (CSRC) said in a statement. Foreign employees with equity incentives working in A-share listed companies overseas will also be allowed to open a securities account to trade in A-shares, according tothe CSRC, which is seeking public opinion until August 8 onthe issue. The securities regulatory body of the countries of qualified foreigners should have already established a regulatory cooperation mechanism with the CSRC,

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Shanghai aims to raise USD15 billion in funds forAI development

Shanghai plans to set up investment funds worth at least a total of CNY100 billion over the next two or three years to bolster the development of businesses related to artificial intelligence technologies. Chen Mingbo, Chairman of the Shanghai Commission of Economy and Information Technology, said the municipal government is looking at how to attract more public investors to raise capital for the funds, and high-calibre asset managers to run them.

“The size of CNY100 billion of funds may not be enough,” he said. “The key lies in whether we can successfully mobilize all public resources to collectively develop AI-related businesses.” Shanghai has been striving to regain its status as a major locomotive of the Chinese economy byspurring the growth in the finance and information technology sectors. City leaders have envisioned the creation of Shanghai’s own internet behemoths on par with the so-called BAT firms – Baidu, Alibaba Group Holding and Tencent Holdings.

Artificial intelligence, used in a wide range of areas such as autonomous driving, finance, medical and public security, isviewed by Shanghai officials as a key technology to accelerate the city’s transformation into a global innovation hub. Chen did not elaborate on the sources of the funds, but it is believed that the government will providethe seed capital before attracting well-known venture capitalists and private equity fund managers to participate in the fundraising and asset management.

“Capital, talent and policy incentives will play a vital role in transforming Shanghai into a real innovation hub,” said CaoHua, Partner at Unity Asset Management. “But competition is fierce since other Chinese cities are also aiming to attractmore technology giants and promising start-ups,” the SouthChina Morning Post reports.

HNA Group Chairman Wang Jian dies after a fallin France

Wang Jian, 57, Chairman of Chinese conglomerate HNAGroup – the parent company of Hainan Airlines – has died from injuries sustained after falling 15 meters onto rocks while posing for a photograph during a visit to France.The incident happened in the village of Bonnieux in the Provence region, according to the local police department.

Wang climbed onto a small wall for a photograph but lost his balance and fell. The wall was about 1.2 meters high and overlooked a cliff. Wang was standing on it when he tumbled 10 to 15 meters to the rocks below. An autopsy found nothing suspicious. Wang had been traveling with four other people and a tour guide.

Wang Jian was one of the driving forces behind the massive expansion of HNA Group. As co-founders, he and Chen Feng transformed a regional airline based in China’s tropical island province of Hainan into a conglomerate with USD230 billion in assets. Sources close to the company said Wang took a hands-on approach to running the company although Chen tended to be its public face. Wang and Chen were the largest individual shareholders of HNA Group with each holding a near-15% stake.

HNA had been on a leveraged shopping spree around the globe until about a year ago, spending an estimated USD40 billion since 2015 on a 25% stake in the Hilton hotelgroup, shares in Deutsche Bank, several golf courses, and four pieces of land in Hong Kong that sold for record prices.That all ended, however, when the Chinese government moved to curb overseas investment by private conglomerates as part of a wider campaign to contain financial risk. In less than a year, HNA went from buyer to seller. In the past few months, it has completed several major deals, including the disposal of its 25% stake in Spain’s NH Hotel Group for USD726 million and the sale of an office tower in Minneapolis, Minnesota, for USD320 million.

HNA Group appointed Chen Feng as Chairman following the death of Wang Jian to take over the deceased's responsibilities.

Foreigners in China to be allowed to open A-share stock accounts

China will allow foreign individuals working on the Chinese mainland to open yuan-denominated A-share accounts through local brokers, the China Securities Regulatory Commission (CSRC) said in a statement. Foreign employees with equity incentives working in A-share listed companies overseas will also be allowed to open a securities account to trade in A-shares, according tothe CSRC, which is seeking public opinion until August 8 onthe issue. The securities regulatory body of the countries of qualified foreigners should have already established a regulatory cooperation mechanism with the CSRC,

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according to the statement. So far, 62 countries and regions have cooperative MOUs with the CSRC, including Hong Kong, the U.S., UK, Singapore, Australia, and Japan.

The revision in the draft rules aims to further open the China’s capital market to foreign investors as well as attract talents from all over the world to enhance the international competitiveness of the CNY50 trillion A-share market. “The revision to the A-share securities account opening system is of great significance, will broaden the channels for capital inflow, optimize the market structure, and improve the openness and internationalization of the capital market,” the statement said. Current rules only allowforeigners with China green cards to open A-share securities accounts and only lets foreigners who work in themainland as board directors, senior managers, core technical personnel and core business staff to enjoy equity incentives. Related tax and foreign exchange policies will also be released to support the rules, the Shanghai Daily and China Daily reports.

Hao Hong, Managing Director and head of research for Bocom International in Hong Kong, said it may be a gestureby China to show it is willing to continue widening foreign access to the financial market. “But the impact on the market may be limited given the number of eligible foreign investors and how many of them are actually willing to tradeA-shares through local brokers,” Hong said.

The CSRC currently only allows selected foreign individual investors to open domestic brokerage accounts, such as those who have obtained permanent residency rights in China or foreign employees of listed A-share companies who currently live in China. Foreign individual investors are limited to buying A-shares through brokers in Hong Kong who must go through the Hong Kong stock exchange, which is linked to the Shanghai and Shenzhen stock exchanges. Foreign institutional investors who meet certaincriteria can also access Shanghai or Shenzhen markets through the Qualified Foreign Institutional Investor (QFII) program.

Alibaba in talks with BT for cloud partnership inEurope

Alibaba Group Holding is in talks with BT Group about a cloud services partnership, as the Chinese internet giant challenges the dominance of Amazon Web Services (AWS) in Europe. An agreement between Alibaba and the information technology consulting unit of Britain’s former telecommunications monopoly could be similar to Alibaba’s

existing arrangement with Vodafone Group in Germany.A BT spokeswoman confirmed that the British telecoms company is in talks with Alibaba Cloud, New York-listed Alibaba’s cloud computing arm, but declined to give details.

Started in 2009, Alibaba Cloud has expanded fast beyond China in a direct challenge to AWS, the cloud computing division of U.S. e-commerce company Amazon. Alibaba Cloud is now the fourth-biggest global provider of cloud infrastructure and related services, behind AWS, Microsoft Corp and Alphabet’s Google, according to a report last month by Synergy Research Group. Europe has become key to Alibaba Cloud’s success outside China, withprospects in the U.S. made murky by President Donald Trump’s America First agenda. Alibaba has pulled back in the U.S. just as tensions between America and China have escalated under Trump. Based in Hangzhou, capital of Zhejiang province, Alibaba put its first European data center in Frankfurt, Germany, allowing Vodafone to resell Alibaba Cloud services such as data storage and analytics.

Last week, Alibaba Cloud moved into France, agreeing to work with transport and communications company Bollore in cloud computing, big data and artificial intelligence (AI). BT’s talks with Alibaba underscore a dilemma for the telecoms industry. As big technology companies and consulting firms muscle in on their business installing and maintaining IT networks for large corporations, they must decide whether to resist them, or accept their help and decide which to ally with. European telecom companies face the challenge to choose a cloud services partner. BT Global Services has struck up partnerships with AWS, Microsoft and Cisco Systems, while Spain’s Telefonica works with AWS. Deutsche Telekom’s T-Systems’ partners include China’s Huawei Technologies and Cisco.

Chinese CEO’s more optimistic than globalpeers

CEOs of Chinese companies have a more optimistic corporate growth outlook than their global peers, according to an industry survey. Domestic CEOs also have a stronger intent to invest in advanced technologies and pursue mergers and acquisitions (M&As) for future growth. According to the 2018 Global CEO Outlook by KPMG, based on responses of 1,300 CEOs across a wide range of industries, Chinese CEO’s confidence in the growth outlookfor their companies remains unchanged at a high level of 90%, the same as in 2017.

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according to the statement. So far, 62 countries and regions have cooperative MOUs with the CSRC, including Hong Kong, the U.S., UK, Singapore, Australia, and Japan.

The revision in the draft rules aims to further open the China’s capital market to foreign investors as well as attract talents from all over the world to enhance the international competitiveness of the CNY50 trillion A-share market. “The revision to the A-share securities account opening system is of great significance, will broaden the channels for capital inflow, optimize the market structure, and improve the openness and internationalization of the capital market,” the statement said. Current rules only allowforeigners with China green cards to open A-share securities accounts and only lets foreigners who work in themainland as board directors, senior managers, core technical personnel and core business staff to enjoy equity incentives. Related tax and foreign exchange policies will also be released to support the rules, the Shanghai Daily and China Daily reports.

Hao Hong, Managing Director and head of research for Bocom International in Hong Kong, said it may be a gestureby China to show it is willing to continue widening foreign access to the financial market. “But the impact on the market may be limited given the number of eligible foreign investors and how many of them are actually willing to tradeA-shares through local brokers,” Hong said.

The CSRC currently only allows selected foreign individual investors to open domestic brokerage accounts, such as those who have obtained permanent residency rights in China or foreign employees of listed A-share companies who currently live in China. Foreign individual investors are limited to buying A-shares through brokers in Hong Kong who must go through the Hong Kong stock exchange, which is linked to the Shanghai and Shenzhen stock exchanges. Foreign institutional investors who meet certaincriteria can also access Shanghai or Shenzhen markets through the Qualified Foreign Institutional Investor (QFII) program.

Alibaba in talks with BT for cloud partnership inEurope

Alibaba Group Holding is in talks with BT Group about a cloud services partnership, as the Chinese internet giant challenges the dominance of Amazon Web Services (AWS) in Europe. An agreement between Alibaba and the information technology consulting unit of Britain’s former telecommunications monopoly could be similar to Alibaba’s

existing arrangement with Vodafone Group in Germany.A BT spokeswoman confirmed that the British telecoms company is in talks with Alibaba Cloud, New York-listed Alibaba’s cloud computing arm, but declined to give details.

Started in 2009, Alibaba Cloud has expanded fast beyond China in a direct challenge to AWS, the cloud computing division of U.S. e-commerce company Amazon. Alibaba Cloud is now the fourth-biggest global provider of cloud infrastructure and related services, behind AWS, Microsoft Corp and Alphabet’s Google, according to a report last month by Synergy Research Group. Europe has become key to Alibaba Cloud’s success outside China, withprospects in the U.S. made murky by President Donald Trump’s America First agenda. Alibaba has pulled back in the U.S. just as tensions between America and China have escalated under Trump. Based in Hangzhou, capital of Zhejiang province, Alibaba put its first European data center in Frankfurt, Germany, allowing Vodafone to resell Alibaba Cloud services such as data storage and analytics.

Last week, Alibaba Cloud moved into France, agreeing to work with transport and communications company Bollore in cloud computing, big data and artificial intelligence (AI). BT’s talks with Alibaba underscore a dilemma for the telecoms industry. As big technology companies and consulting firms muscle in on their business installing and maintaining IT networks for large corporations, they must decide whether to resist them, or accept their help and decide which to ally with. European telecom companies face the challenge to choose a cloud services partner. BT Global Services has struck up partnerships with AWS, Microsoft and Cisco Systems, while Spain’s Telefonica works with AWS. Deutsche Telekom’s T-Systems’ partners include China’s Huawei Technologies and Cisco.

Chinese CEO’s more optimistic than globalpeers

CEOs of Chinese companies have a more optimistic corporate growth outlook than their global peers, according to an industry survey. Domestic CEOs also have a stronger intent to invest in advanced technologies and pursue mergers and acquisitions (M&As) for future growth. According to the 2018 Global CEO Outlook by KPMG, based on responses of 1,300 CEOs across a wide range of industries, Chinese CEO’s confidence in the growth outlookfor their companies remains unchanged at a high level of 90%, the same as in 2017.

NEWSLETTER 10 JULY 2018 9

Among the CEOs surveyed were 125 from the Chinese mainland and Hong Kong. Some 84% of the surveyed Chinese CEOs expect an overall increase in their organization’s headcount over the next three years. Some 44% of expect an increase of more than 5% in their staff. “Chinese CEOs have grown more positive about the prospects of the global economy and their respective industries,” said Benny Liu, Chairman of KPMGChina. “This positive outlook comes at a time when China’s significance in the global economy continues to increase.”

Consistent with the results of KPMG’s previous surveys, Chinese CEOs like to focus on innovation, which they see as a way to transform their businesses and achieve their growth ambitions. Technological disruption is not seen as a threat but as an opportunity, 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: [email protected]

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 2018 (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: [email protected] Website: www.flanders-china.be

Share your story

To send your input for publication in a future newsletter mailto: [email protected]

The FCCC Newsletters are edited by Michel Lens, who is based in Beijing and can be contacted by e-mail [email protected] . Disclaimer: the views expressed in this newsletter are not necessarily those of the FCCC or its Board of Directors.

NEWSLETTER 10 JULY 2018 9

Among the CEOs surveyed were 125 from the Chinese mainland and Hong Kong. Some 84% of the surveyed Chinese CEOs expect an overall increase in their organization’s headcount over the next three years. Some 44% of expect an increase of more than 5% in their staff. “Chinese CEOs have grown more positive about the prospects of the global economy and their respective industries,” said Benny Liu, Chairman of KPMGChina. “This positive outlook comes at a time when China’s significance in the global economy continues to increase.”

Consistent with the results of KPMG’s previous surveys, Chinese CEOs like to focus on innovation, which they see as a way to transform their businesses and achieve their growth ambitions. Technological disruption is not seen as a threat but as an opportunity, 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: [email protected]

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 2018 (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: [email protected] Website: www.flanders-china.be

Share your story

To send your input for publication in a future newsletter mailto: [email protected]

The FCCC Newsletters are edited by Michel Lens, who is based in Beijing and can be contacted by e-mail [email protected] . Disclaimer: the views expressed in this newsletter are not necessarily those of the FCCC or its Board of Directors.