CBBC Chair Sir Sherard Cowper-Coles opened the event, stating that it was “a symbol of strength between our two great countries that so many want to take part in this great event.” He went on to say that trade between the UK and China broke all records in 2023 with a trade value of over £110bn and that Hong Kong and China have overtaken Germany as the UK’s second-largest economic partners.

It would be foolish, he said, for the UK not to engage in trade with a country that boasts most of the leading technologies of the 21^st century. He also emphasised that Chinese savers and consumers were eager to put their savings into wealth management, insurance and pension products designed and spearheaded here in the UK.

Sir Sherard Cowper-Coles giving his keynote address

During the keynote addresses, delegates also heard from Bim Afolami, Economic Secretary to the Treasury, who said that the UK government is committed to growing the China relationship and working together on global challenges, particularly climate change, infrastructure and supply chain resilience.

He noted that China’s commitment to achieving carbon neutrality by 2060 will require an estimated £17-35 trillion of investment, 90% of which will come from the private sector, and the UK has set a target to become the first net zero financial centre.

Chinese Ambassador to the UK Zheng Zeguang said that “of course, there have been ups and downs in our relations, but the overall trend has been upward and forward.”

He pointed out that the policies set out in China’s annual Two Sessions can be summed up in four keywords: confidence, development, openness and cooperation.

The first is confidence in the country’s economic prospects, with a target of 5% GDP growth this year.

“The long-term trajectory of China’s economy remains positive, as it enjoys the following unique strengths: strong political leadership, a supersize market, a full-fledged industrial system, abundant, high-calibre labour forces, and constantly improving sci-tech innovation capacity,” he said.

The second point is development. “China is firmly committed to advancing high-quality development and the Chinese path to modernisation,” said Ambassador Zheng. “Marked by innovation, these forces will help transform traditional industries, making them more advanced, intelligent and environmentally friendly.”

Ambassador Zheng Zeguang, Chinese Ambassador to the United Kingdom, giving his keynote address

“China has some 400,000 high-tech companies and ranks second globally in terms of number of unicorn start-ups. Of the 153 ‘lighthouse factories’ on the Global Lighthouse Network released by the World Economic Forum, 62 are Chinese.”

The third is openness. “China will pursue higher-standard opening up and promote mutual benefits,” said the Ambassador. “We will promote alignment with high-standard international economic and trade rules, steadily expand institutional opening up, and amplify the interplay between domestic and international markets and resources. We will ensure the overall stable performance of foreign trade and foreign investment and foster new strengths in international economic cooperation and competition.”

The fourth and final word was cooperation. “Facts have proven that China’s development provides a vast market, high-quality and affordable products, increasingly advanced technologies, and, of course, much-needed investment for the world. Last year, China contributed to around one-third of global growth. China’s development will continue to inject stability and impetus into the world.”

“Over the years, CBBC has served as an important bridge for China-UK communication and a strong catalyst for China-UK cooperation. We look forward to closer cooperation with CBBC and the British business community going forward,” he said.

Opening Plenary: Setting the Scene

The first of three plenary speakers was Christopher Davies, Deputy Chief Executive Officer, HSBC Continental Europe, the largest foreign bank operating in China. Davies said that although not everything is rosy in this trade corridor, he sees reasons for optimism and pools of opportunity. “Growth of 5% will take all sorts of efforts, but our view in the medium term is that there is plenty of growth ahead due to basic demographics,” he said.

According to HSBC’s annual China Sentiment Survey, 87% of clients were planning on expanding their business in China, indicating that support for investment was there. Davies said there was a bias towards tech-heavy sectors, sustainable energy, and electric vehicles and their supporting sectors and digital services. He also noted that it was UK businesses who were foremost in their positivity towards China.

Opportunities also exist for UK companies in the financial services sector. Eighty million more people will join the middle-class segment by the end of the decade, taking China’s middle class to 40% of the population. This middle class will bring with them “an appetite for quality wealth management”.

Davies also said that sustainable financing and inbound investment into sustainable technologies in the UK are very strong opportunities.

Jinny Yan addressing the delegates at the forum

Jinny Yan, Managing Director, ICBC Standard Bank, talked about the new buzzword that came out of the annual Two Sessions: ‘New Productive Forces’. She broke the phrase down into ‘three highs’ – high quality, high efficiency and high technology – and ‘three news’ – new supply chains, new industries and new digital economy.

China’s economy, Yan said, was shifting from high quantity to high quality. An ageing population limits growth, so in order to invigorate the economy, China needs to find new growth engines. To date, this has included moving away from investment to consumption. China’s post-Covid recovery, she said, was largely down to consumption with a focus on necessities rather than luxuries.

China is also “rethinking how to make its growth model and supply chains more resilient to external forces,” she said. The next phase of Chinese growth will be in new energy, healthcare, biosciences, and supply chains.

She also said there is a trend for commodity transitions to be settled in RMB, from which financial centres such as London and Singapore will benefit as the world’s second-largest economy continues to open up and China’s currency internationalises.

Gordon Orr speaking at the forum via video link

Gordon Orr, Non-Executive Director of Swire Pacific, Meituan, Lenovo and EQT, provided a number of examples of British companies that are continuing to grow in China, mentioning that IHG has opened 100 hotels in China in the past year, bringing their total to over 700 hotels – with plans for another 500 in the pipeline. Merlin will open two of the world’s largest Legoland parks in China, and Swire has acquired interests in private hospitals in China. Fidelity has raised over £700 million for a fixed mutual fund, and Schroders has a license to run a 100% private investment facility. AstraZeneca continues to invest hundreds of millions into China and has licensed obesity drugs from China.

All this, he says, “is happening during an economic reset, and whilst the challenges in the housing market have led to reduced consumer confidence.” Although many SMEs have not recovered as well as larger companies, every industry transition “will always create losers as well as winners,” Orr said.

Orr also said there has never been a better time for finding talent from China, especially within the STEM sector, where grads are looking for stable roles in international companies.

The first panel of the day was on the energy transition

Panel 1: Energy Transition

The first of the UK-China Business Forum 2024 panel discussions was on the energy transition. CBBC’s James Brodie moderated the talk, noting that China has invested huge amounts into green energy and that green energy production overtook coal power energy in June 2023.

Bill Ireland, CEO, Logan Energy, explained that if we want to achieve net zero by 2050, companies and countries need to work together to enable the shift from oil and coal that has dominated for the last 150 years to new technologies. Logan Energy has been working on a number of projects, including exporting hydrogen refuelling stations; decarbonising the Yangtze and converting marine vessels on the famous river; working with fuel cell companies; and helping Chinese companies to comply with EU regulations, enabling them to export to the EU market.

“Our strategy is partnering with the right people in the right way, and Chinese manufacturers are likely to meet that game,” says Ireland. Ireland said that he is excited about the “boundless” opportunities around energy transition and China. He emphasised that Chinese investment and support are paramount to achieving net zero and reducing CO2 emissions. “We don’t have the capacity to meet the demand [for net zero technologies] in the UK,” he said. “It’s a symbiotic relationship we need to have.”

Federica Berra, Senior Vice President, Air bp, explained how Air bp has been working to create and distribute sustainable aviation fuel (SAF). “The aviation business is expected to double by 2040 as the middle class rises and more people fly,” she said. “And aviation represents 2% of global carbon emissions and 12% of transportation sector emissions.”

She said that we will see hydrogen, battery and electric aeroplanes providing short to medium-haul flights, but they all require new aeroplanes. For long-haul flights, “drop-in” SAF fuel is needed, which means aeroplanes don’t need to be altered. Next year, 2% of all fuel must be SAF, but current regulations limit the amount of SAF that can be put into a plane to just 30%.

Berra recently flew from London to New York on a Virgin aircraft with Rolls Royce engines that was 100% fuelled by bp SAF, proving that the technology is there. And with bp in 40 countries and 600 airports, it’s now up to the regulators to further encourage SAF usage internationally.

Eugene McKenna, Hydrogen and Sustainable Technologies Director, Johnson Matthey, helps businesses pivot towards the clean energy transition and works with bp on SAF production and distribution.

“We need supply, transportation, storage and demand all to develop at the same time. China is solving those market challenges better than the West because it is mandated,” he said. McKenna is also pushing for global cooperation. “Every ton of CO2 avoided anywhere in the world is avoided on behalf of all of us. It helps us equally regardless of where it is collected from,” he said.

Yin Noe is Head of UK & EU for the YRD Automotive Alliance, an alliance of over 500 Chinese automotive manufacturers that was created to promote the electrification of vehicles and the national grid networks. Its extensive experience over the last two decades now sees it helping EU and UK companies transition to electrification.

“China invested billions of dollars 15 years ago to make EVs affordable,” she said, going on to explain that, unlike Western legacy combustion engine car manufacturers, Chinese car companies started with EVs, and thanks to investment and many years of experience, they now dominate the market. However, she says, there is still resistance to working with Chinese OEMs, with concerns over quality and industrial espionage. The question is: do we want a carbon-zero future, or do we want to protect EU legacy brands?

Paul Taylor, Chief Advisor, CRRC Times Semiconductor Co. Ltd, said that “we have to become more receptive to Chinese products. Some people are [living in the past], and their perception is guided by that. China supplies the highest quality, lowest cost products and has what we need to achieve net zero,” he said.

Taylor went on to explain that the long history and government support of Chinese EV manufacturing has made it the most competitive and safe in the world. For example, CRRC was originally a bullet train manufacturer, but it has now moved into EV and electric bus manufacturing. It invested in Taylor’s semiconductor company in 2007 to ensure it owns the full supply chain from microchip to finished vehicle.

“In China, the state decided a long time ago to focus on EV manufacturing and technology, but in the UK, it’s very slow and constrained because of policy,” Taylor said. “Businesses cannot connect to the grid; the government needs to wake up and put its foot down.”

Ireland agreed: “If 2% of people in London wanted to charge at 100kw, the grid would fall over. We need to wake up and realise we need both finance and policy,’ he said.

The second panel of the day was on managing your China business

Panel 2: Managing Your China Business 

The next panel asked why people choose to have a presence in China and explained the various options to do so, whether that be a wholly foreign-owned enterprise, a representative office, or a joint venture and third party.

The panellists noted that the choice of the above was very much dependent on the type of business. For example, representative offices are less popular than they once were but are still popular with real estate firms. Having partners in some form is often preferred to help navigate restrictions and regulations, but, of course, partners need to be incentivised.

Kristina Koehler-Coluccia, Head of Business Advisory, Woodburn Accountants & Advisors, explained that building a structure and tax planning is crucial. There are tax incentives in certain districts that are good to take advantage of, but companies need to be cautious about the time limits on these when budget planning.

Duncan Levesley, Director, Public Services Advisory, Grant Thornton UK, agreed that taxation is often a key area that businesses find complex and can deter new starters. However, he said that China’s tax system is within global standards, and there are key taxes that are similar to the UK model.

Cross-border payments and the distribution of dividends are other areas that are complicated for companies with a hybrid of goods and services, but there are experts available to support this. Levesley also noted that having more local recruitment provides a better understanding of the local market than having head office transfers.

CBBC’s Ben Rotheram said that recruitment is an important part of building a successful business and that LinkedIn is still a viable platform, as many Chinese professionals use the site despite it having officially exited the China market.

The panellists also agreed that the infrastructure around intellectual property and regulation in China has come on leaps and bounds in recent years but is still an important area that companies need to be well versed in.

David Roth, CEO, The Store – WPP, Chairman BAV, said that building an understanding of how your business fits into the market is crucial. Consumer behaviours are constantly changing, especially in China, and that shapes the business climate. Roth gave the example of how experiential retail and service-driven retail experiences have become paramount in recent years.

The third panel of the day was on healthcare and biosciences

Panel 3: Healthcare and Biosciences

Speaking at the Forum’s third panel discussion, which was moderated by Elinor Greenhouse, Senior Adviser, Tech and Innovation, China-Britain Business Council, Sue Welburn, Vice Principal Global Access & Professor of Medical & Veterinary Molecular Epidemiology, University of Edinburgh, emphasised the persistent demand for UK academic partnerships in the fields of healthcare and biosciences.

Hilary Smith, SVP, Corporate & Commercial CGA and CCO Office, GSK, acknowledged the immense scale of the China opportunity but highlighted that innovation must be affordable and address challenges like the ageing population and the growing number of chronic diseases. She said that prevention is the obvious solution, but it is a long-term investment.

For example, a significant amount of funding goes to oncology in China, which leads to a number of products coming to market from China, and there are a lot of opportunities for partnerships. Companies need to look at where there is a need not being met that they can provide. They also need to consider where to compete and where to partner with local companies.

“The regulatory landscape for fast launch of products in China isn’t there yet – it has such a differentiated regulated landscape,” she says. “However, Hong King, via the Greater Bay Area (GBA), does offer a great opportunity for a fast first foot into the market,” Smith said.

Mark Hedley, Deputy Head of Investment Promotion, InvestHK, said that there has been a boom in the Hong Kong life sciences ecosystem since Covid. Hong Kong has the oldest life expectancy in the world and has similar demographic and ageing populations to mainland China, but it has an easier regulatory framework to operate in, has easy access to funding due to being in a financial capital, and offers tax rebates. Moreover, due to Chapter 18A, companies have the potential to launch on the Hong Kong Stock Exchange pre-revenue.

Hong Kong’s location gives companies the ability to leap into Mainland China via the GBA and gain larger datasets. “Hong Kong has four hospitals that allow trials from which you can launch into market, and as part of the GBA, there are a further 19 hospitals that can be entered without regulatory clearance,” Hedley said.

Welburn pointed out that one of the gaps in the biosciences field in China is early career researchers from universities, and this is one area where the UK and China can work together, as the UK produces lots of post-grads who are looking to develop a business.

However, Welburn cautioned that a balance needs to be struck between collaboration and competition. Subsidies in China are enormous, which can be problematic as it is hard to bring partnerships to the table when one side is heavily subsidised and the others are not. Previously, she said, research was based on equal funding but that doesn’t work with China.

David Game, VP Global Product for Medical Education, Elsevier, works closely with AI in the sector, including innovation around Apple and its Vision Pro headset. Even though the headset is not on sale in China, the country represents the third largest group of owners.

“Within the area of AI, we see ourselves as a trusted provider of high-quality data. In terms of building AI projects in China, the challenge is around copyright. What copyrights we hold outside China is different to China as it’s a different regulatory regime between the US and China,” he said. 

The final panel of the day was on supply chain management

Panel 4: Supply Chain Management 

The importance of supply chains to the global economy couldn’t be more pronounced following the challenges of the Covid pandemic. The fourth panel of the day, which was moderated by Lise Bertelsen, Executive Director, Public Affairs, China-Britain Business Council, emphasised that from micro-SMEs to MNCs, supply chains involve multiple components and can be complex systems ranging from planning and sourcing to the production and delivery of goods and services.

As a result, supply chain management can be costly, so it is important to understand ROI and logistics. Organisations like CBBC and The Institute of Export and International Trade have the resources and network to support companies in this, and using third parties for advice can be a key component to market entry.

During the panel, Jane Liang, Chief Procurement Officer, Diageo, highlighted that setting up an R&D centre in Shanghai in 2023 – which was an industry first – has allowed Diageo to create a localised and customised understanding of the China market. It is also able to source materials locally and have staff on the ground to manage processes, ensuring efficiency.

Marco Forgione, Director General, The Institute of Export and International Trade, acknowledged that geopolitical issues are turning some companies or countries away from offshore supply chains due to recent disruptions. However, his view is that this is unlikely to happen in any meaningful way, as innovations are already allowing for transparency, and alternative routes and collaboration between logistic firms (for example, air and freight) are allowing for dynamic solutions.

James Grayland, International Director, Heighten, emphasised that it is important to do your homework on the regional infrastructure surrounding your supply chains, create your own business plan, carry out risk assessments, and have definitive objectives. It is also worth considering the choice of air, rail or maritime transportation against the backdrop of sustainability and the impact of this on consumer pricing. This is especially the case in the Chinese context, as value for money is increasingly important for consumers facing economic headwinds.

The panel discussion drew to a close by noting that it is vital to understand strategic and economic commitments when looking at your supply chains and that carrying out a risk assessment of external factors, such as geopolitics and competitors, is key.

The forum concluded with a fireside chat between Andrew Seaton and Qing Pan, president and CEO of Jaguar Landrover China

Fireside Chat

The UK-China Business Forum ended with a Fireside Chat between CBBC CEO Andrew Seaton and Qing Pan from Jaguar Land Rover. Pan talked about the importance of China in the global automotive market on both the supply and demand side.

He explained that JLR has evolved from a marketing and sales department in China to a full-blown business, with every element of the supply chain, including a key innovation centre, located in China.

Discussing the EV market, Pan said that EVs account for 40% of China’s new car sales – a much faster uptake than in the West due to early investment by both companies and the government. For example, in 2017, the Chinese government publicised the new emission standards required from car manufacturers, which were only possible to hit if you had a portfolio of EVs.

“Private businesses in China know they can’t surpass the 100-year history of combustion engine cars, but they do think they can win the EV model. Why? Because Western companies are in defending positions and juggling two balls in the air. Chinese companies can go all in,” he said.

Seaton pointed out that this is why we have seen tech companies in China – such as Xiaomi – launch EVs rather than just the traditional automotive manufacturers.

Seaton and Pan also discussed geopolitics as being a hurdle. If large-scale Chinese investment into the West leads to trade barriers, it will hurt all parties. Trump has threatened to place 100% tariffs on Chinese products as part of economic nationalism, which will have a devastating impact on the EV market and, by extension, the environment.

The UK-China Business Forum 2024 was a wonderful opportunity for members of the UK-China business, education, and cultural communities to exchange knowledge and ideas and ready themselves for a productive year ahead.

The event was made possible with the support of CBBC’s sponsors: HSBC, Invest HK, JLR, Standard Chartered, the UK Government Department for Business & Trade, and Deloitte.

Learn more about the UK-China Business Forum 2024, including the full agenda, list of speakers and speaker biographies here.

Browse photos from the event here.

Keep up to date with CBBC’s events calendar here. Learn about CBBC’s membership offer here. For further enquiries related to the event, please contact enquiries@cbbc.org.

The post Over 150 Delegates Attend CBBC’s UK-China Business Forum 2024 appeared first on Focus - China Britain Business Council.

But over the last few years, the Covid pandemic and a series of serious geopolitical crises have increased the challenges of supply chain management, causing logistical disruption, rising costs and labour market concerns. This can and has had a financial and – in some cases – existential impact on companies.

Learn more about managing China supply chains at the UK-China Business Forum 2024 on 20 March. Click here to register

The pandemic reiterated the centrality of China to global supply chains. As parts of China went into and out of lockdown, many companies considered sourcing from suppliers outside of China. But this merely mitigated rather than eliminated the risk – core components of so many products still come from China.

While the specific uncertainties of the pandemic years are behind us, a number of ongoing challenges remain, both China-specific and global. Most recently, the attacks in the Red Sea have shown that global shipping routes are very vulnerable to disruption. Moreover, companies are increasingly coming under pressure to make their supply chains more sustainable as consumers become more concerned with the carbon emissions generated by the sourcing and transportation of the products they consume.

As a result, some companies have started to explore strategies like ‘reshoring’ (bringing manufacturing and services back to the company’s home country) or ‘friendshoring’ (relocating production and supply chains to allied countries that are considered politically and economically ‘safe’). A 2023 survey by the Institute of Directors found that around 20% of UK importers have already made alterations to their supply chain, with 15% are considering making alterations.

Nevertheless, China-linked supply chains still have the advantage both in terms of cost and in terms of quality, with the Chinese government investing heavily in technological innovation and human capital. And given that China was the UK’s 5^th largest trading partner in the four quarters to the end of Q3 2023, supply chains between the UK and China are – and will remain – a priority for most companies.

That being said, companies that rely on distant sourcing strategies may need to consider establishing an on-the-ground presence that allows them to respond more quickly to ripples in the supply chain. And like many aspects of dealing with China, communication is key. It is important to build relationships across all the stakeholders, and where possible and applicable, to open up communications across all those parties – think of multiple point supply ‘networks’ rather than point-to-point supply ‘chains’.

So, how can you deal with vulnerabilities in your China supply chain? As part of the UK-China Business Forum 2024, CBBC will be hosting a panel on supply chain management that will bring together experts and companies on the ground to explore options and strategies. The panel includes Marco Forgione, Director General of The Institute of Export and International Trade; Jane Liang, Chief Procurement Officer at Diageo; James Grayland, International Director at Heighten; and Lise Bertelsen, Executive Director, Public Affairs at the China-Britain Business Council (moderator). Click here to register.

The post Managing China supply chains in challenging times appeared first on Focus - China Britain Business Council.

There are several approaches to managing a business in China with many important considerations. Navigating the complexity of the Chinese market and Chinese business interactions takes more than just good intuition; it requires effective preparation.

Learn more about managing a business in China at the UK-China Business Forum 2024 on 20 March. Click here to register

Whether you are new to China or an experienced professional with a decade of experience in the country, everyone can benefit from fresh ideas and advice on how to improve their structures and business in China. Your success depends on your motivation to learn and educate yourself, getting as much knowledge as possible to be able to help your company grow and make fast and smart decisions in an environment that is constantly changing and moving.

Looking at the financial management reports specific to your China business, understanding details such as customs duty and tax implications, and ultimately being able to evaluate these factors — as well as any unforeseen challenges — will allow you to make decisions such as will you retract from the market or move forward, will you move sideways, up, or down?

Ultimately, your goal should be to ensure that everything is done correctly. This will enable you to focus on what is critical for your business and to make decisive moves to maintain traction in the Chinese market. In this highly competitive environment, you do not want to be left behind.

In China, every industry and sector has its own specific data and regulations. Whether you are sourcing, producing or selling or even providing a service locally, research and knowledge are king. You cannot go into this market making uninformed assumptions.

Cultural or language barriers, as well as different time zones, cannot become an excuse for not staying on top of your organisation. You must learn to identify red flags and to have the ability to fix any problem in a timely fashion. In this way, you can avoid the most common mistakes.

One of the biggest problems companies face in China is the lack of communication with Chinese partners and their teams. It is important to know that rules have changed, and doing transactions under the table can signify the end of your business. If you are asked to operate in such a way, you should immediately walk away.

Having no data readily available can also be problematic in China. You must do your research on a regular basis to guide your organisation in the right direction.

Overnight success stories make for great headlines. However, not everyone knows about the intense work behind the scenes. Years of dreaming, building and positioning before a big public launch are the engine behind a business successful existence.

Your business journey will be unique to you and cannot be compared to any other experience. Once the initial excitement wears off and frustration accompanies your every step, that’s when your structured routine, your research and your perseverance will show you the way.

Don’t be the master of improvisation, but an informed and focused business professional. Some company owners make things up as they go along, or they get stuck in analysis paralysis and never start. Neither extreme is good. The best way to accomplish any business or personal goal is to determine every step it takes to achieve it.

Taking each step at a time will lead you in the right direction. Some may take longer than others, but every single one of them is an integral part of the process you are about to start.

Finally, you don’t have to do it alone. There are resources readily available and at your disposal, as the Managing Your Chins Business panel discussion at the UK-China Business Forum 2024 will show. The panel includes Duncan Levesley, Service Director, Enhanced International Support Service for China, Public Services Advisory, Grant Thornton UK LLP; David Roth, CEO, The Store – WPP, Chairman BAV; Kristina Koehler-Coluccia, Head of Business Advisory, Woodburn Accountants & Advisors; and Ben Rotheram, Director, Service Delivery, China, China-Britain Business Council (moderator). Click here to register.

The post Key considerations for managing a business in China appeared first on Focus - China Britain Business Council.

The speakers are Zheng Zeguang, Chinese Ambassador to the United Kingdom; Eugene McKenna, Hydrogen and Sustainable Technologies Director, Johnson Matthey; and Kristina Koehler-Coluccia, Head of Business Advisory, Woodburn Accountants & Advisors.

They will join a stellar line-up including Bim Afolami MP, Economic Secretary to the Treasury; Christopher Davies, Deputy Chief Executive Officer, HSBC Continental Europe; Qing Pan, President & CEO of Jaguar Land Rover China; and Jinny Yan, Managing Director, ICBC Standard Bank – amongst many others.

See the full line-up of speakers below:

Learn more about the speakers here

CBBC has also announced that Deloitte will join Standard Chartered Bank in sponsoring the CBBC Spring Reception, which will take place directly after the forum. Guests at the UK-China Business Forum 2024 will enjoy complimentary admission to CBBC’s Spring Reception: learn more here.

With thanks to CBBC’s sponsors:

Strategic partner

Gold sponsors

Supporting sponsor

Spring Reception sponsors

The post Ambassador Zheng Zeguang Joins UK-China Business Forum as Keynote Speaker appeared first on Focus - China Britain Business Council.

The half-day conference, which will be followed by CBBC’s Spring Reception, will focus on the geopolitics of trade, with leading industry experts exploring opportunities in key strategic sectors, including transportation and EV evolution, and biosciences and healthcare, as well as considering topics around supply chain and risk management.

The 2024 UK-China Business Forum will build upon the success of last year’s event, which was attended by over 200 delegates and was CBBC’s first major conference since the pandemic. Lord Johnson, the Minister of State at the Department for Business and Trade, told the audience last year that “the relationship between China and the UK remains significant” and that “trade-wise our relationship with China is absolutely vital” – that remains true this year.

This year’s Forum will act as an important showcase for CBBC’s capability and offering. With China open for business, as shown by a recent spate of initiatives by the Chinese government to boost foreign trade and investment, the conference is well-timed to focus on the opportunities and the complexities of the Chinese market – both for businesses already active in the market and for those now focusing or re-focusing on China.

Senior officials, together with the CBBC community, will be in attendance for what promises to be a terrific event, so please register now and don’t forget to bring your colleagues and clients!

The opportunity to join the 2024 UK-China Business Forum as a sponsor will give your company access to exclusive brand promotion opportunities and exposure to potential partners and clients via CBBC’s dedicated UK-China email database, the extensive reach of its social media platforms, and its dedicated content platform, FOCUS. HSBC and JLR are already on board as key sponsors for the event.

Explore sponsorship opportunities

For direct enquiries, please don’t hesitate to get in touch with CBBC’s Chief Commercial Officer, Claire Urry, at Claire.Urry@cbbc.org

Photo by Sean Lim on Unsplash

The post Sponsor CBBC’s flagship UK-China Business Forum 2024 appeared first on Focus - China Britain Business Council.

Read more about the Forum’s agenda and key takeaways with our post-event write up here.

Explore the themes of the UK-China Business Forum 2023 here.

Browse photos from the event here.

We hope to see you again soon at more events hosted by CBBC. Keep up to date with our events calendar here. Learn about our Membership offer here. And, for further enquiries related to the event, please contact us at enquiries@cbbc.org.

The post Hear from delegates at the UK-China Business Forum 2023 appeared first on Focus - China Britain Business Council.

Speakers from government, industry, finance and academia spoke on topics ranging from green finance to China’s dynamic consumer market to technological collaboration.

The full-day event was opened by CBBC’s Chair Sir Sherard Cowper-Coles, who stated that: “There has never been a better opportunity for businesses to do business with China…We believe a positive trade and investment relationship can benefit both the UK and China.” Sir Cowper-Coles quoted the Government’s refreshed Integrated Review of Defence and Foreign Policy, which was released earlier in the week. The review stated that the Government “Will work with industry to make sure trade with China is safe and mutually beneficial.”

Sir Cowper-Coles went on to explain the importance of engaging with the world’s second-largest economy. “Last year our exports to China rose to over £31 billion – supporting 130,000 UK jobs. But there is scope for much more”, he explained. “With 500 million middle-class consumers, China’s spending power makes it a critical market. As the voice of business in China for over 65 years, CBBC has a key role in helping tackle the challenges our countries face”, he said. These challenges include dealing with technological change, targeting Net Zero, and addressing disparities in regional economic development.

Sir Sherard Cowper Coles offers opening remarks at the Forum

Lord Johnson of Lainston, the Minister of State at the Department for Business and Trade, also addressed the delegates, reiterating that the relationship between China and the UK remains significant: “The UK is one of the fastest growing sources of investment capital into China”, he said. “Trade-wise, our relationship with China is absolutely vital”.

Lord Johnson went on to say that in the UK, we have the expertise in clean energy, life sciences, fusion, and other high-tech industries that China and the rest of the world needs.

Lord Johnson of Lainston joins the conference by video address

Dame Caroline Wilson, the British Ambassador to China, expressed her excitement at the chance to attend the Forum. “This is the first major conference for more than three years, and a lot has changed in that period – global pandemics, supply chain issues, economic disruption – so thank you for your perseverance and professionalism”, she told the audience.

“This week, the British Government published a refresh of the Integrated Review in 2021, which focuses on the global outlook for the UK and its place in the world and our goals and aspirations. China is an incredibly important part of that. The Review says that broadly the world has become a more dangerous place, and the UK must face the realism that China has become more authoritarian at home and more assertive overseas”, she said.

“A positive relationship can have a positive impact on both the UK and China, and the government will work with trade to help make that happen.”

Dame Caroline Wilson went on to say that by 2030 China will be the world’s biggest economy, with 23.5% of global GDP and half a billion consumers. She said that economic ties, including British exports to China, financial service solutions, technological, academic and vocational education institutes all benefit from this trade. “Chinese companies invest in UK offshore wind and charging stations to help reach Net Zero, UK pharma is working with Chinese researchers to tackle diseases, and software companies are helping with the global digital transformation”, she said. “The UK and China are helping to advance common global good to make our world a better place.”

Dame Caroline Wilson presenting at the Forum

Yang Xiaoguang, Chargé d’Affaires at the Chinese Embassy in the UK, told the audience that the CBBC has made important contributions to trade between the UK and China and welcomes further cooperation between the UK and China across all industries.

He explained that the recent Two Sessions set out GDP targets of around 5% growth, with goals for 12 million new urban jobs as well as to keep personal income in step with economic growth. He went on to say that with quarantines no longer necessary upon entering China and visas being relaxed, China is open to entrepreneurs, investors and tourists.

Talking about the 45th anniversary of China’s Opening Up, he said that China will further reduce barriers to entry, including lowering tariffs and cutting down the negative list of items not able to be exported to China.

“We believe the CBBC and the business communities will continue to play a role in promoting cooperation and good China-UK relations”, he said.

Yang Xiaoguang presenting to delegates

The first session of the day was titled UK-China Relations and Trade Opportunities in a Post-Covid Era and was hosted by leading journalist Jon Williams.

Jon Williams set the scene, quoting Prime Minister Rishi Sunak who said last week that China poses an “epoch-defining systemic challenge” to the UK and its allies. China responded by stating that the nuclear submarine pact known as AUKUS between Australia, the UK and the US was “embarking on a path of danger”.

Political tensions continue to run high, but that should not affect economic opportunities, the panel concluded.

Janet Henry, HSBC’s Chief Global Economist, said that there was plenty of further scope for growth between the two countries. In 2002, UK exports to China made up less than 1%; now it’s over 6%: “China, post covid, is reopening, and it is happening thick and fast. We should see in the course of 2023 a strong bounce back of consumer spending.”

“Domestically, labour markets will strengthen, but it will not be inflationary. The service sector spending is very strong,” she added. A reopening of borders will boost the UK’s retail front, as up to a million Chinese visits to the UK are expected, but the scope for growth is not just limited to retail and consumer spending, explained Henry. The UK has a competitive advantage in the service sector – specifically in the legal, R&D, architectural and financial sectors.

The first panel session of the day was on UK-China Relations and Trade Opportunities in the post-Covid Era

Professor Xu Bin, Professor of Economics and Finance and the Wu Jinglian Chair Professor in Economics at China Europe International Business School, said that the outcome of the recent Party conferences in Beijing was stability. “The appointment of Premier Li Qiang and Xi Jinping securing his third term will lead to less uncertain policies in China and around the world, and that will have positive implications,” he said.

John Edwards, HM Trade Commissioner for China & Hong Kong said that it was only in November 2022 that China was potentially facing years of Zero Covid and closed borders, but in a short space of time, things were returning to normal. “Although 2022 was disruptive for business in China, it is worth remembering in 2020 and 2021, there was no place better to be than in China whilst the rest of the world was locked down,” he said.

John Edwards said that the opening of China’s financial markets is going to be huge and that Net Zero is a great opportunity for many businesses. In the education sector, vocational education is a big market as the government increasingly focuses on vocational training. In China, there are already half a million Chinese students in transnational education programmes.

Qing Pan, President of Jaguar Land Rover China, explained that although China has been the largest car market in the world for the last decade, it is often overlooked that China is also a leader in battery technologies for cars and environmental standards.

HSBC’s Janet Henry went on to discuss the risks of a deteriorating political relationship. “Markets can change their minds and can be volatile. There are going to be certain sectors where trade between large parts of the West and China will be difficult. But there are vast amounts of sectors which are not going to be constrained,” she said. “If we don’t get global trade deals done, there will be intra-regional trade deals in Asia – other regions will sign up and take that market.”

Professor Xu said that Xi Jinping has moved away from a focus purely on economic development and efficiency at all costs. He went on to say that Xi has used the term ‘open regionalism’.

“Xi Jinping sees the future of the world as very different to the pre-2008 globalised world. He sees it focused around two mega regions – one around the US and one around China. They are open to doing business with each other but there will not necessarily be directly friendly or positive relations between the two countries”.

“China and the US will have difficulty reconciling with each other, so I do see a trend towards a decoupling between US and China’s economy. But that provides a lot more opportunities for the rest of the world and countries like the UK,” he remarked.

Earlier in the week the Financial Times reported that Chinese car manufacturer BYD did not have the UK on its long list of locations to set up manufacturing, mostly because of Brexit. John Edwards said that it was true Brexit would have an impact on certain sectors.

“Does it affect our ability to export to China or import from China? No. Does it affect some Chinese investors coming into the UK? Yes. Will it affect companies looking to manufacture in the UK? Yes.”

However, he said other concerns, such as UK corporation tax or how welcome investors are, and other geo-political issues would also play just as big a part in those decisions.

From the China side, Professor Xu said that China is likely to be “more laid back” when it comes to offering favourable policies to attract FDI. Henry also said that China’s economic bounce back post-pandemic is likely to be more stable and long-term. “I am broadly in positive territory,” she said.

Qing Pan was also “cautiously optimistic” about the economic outlook in China. “This year could be the year of consolidation and oversupply but now the consumption base will be broader,” he said.

“It will take some time for the confidence of Chinese consumers to come back,” argued Professor Xu. The average Chinese family has spent some of their savings in the last three years, and some are not completely clear of the economic shock.  But letting the economy grow relatively naturally from 3% to 5% is not such a difficult task, he said.

Edwards said that he was also positive about UK-China relations, but added that it is important to get that message out. “Business people need to be more vocal and supportive [of UK-China trade] in public. If the public see ministers going out and visiting China, then this will help the image,” he said.

The second panel session of the day explored UK-China Net-Zero partnerships

The second session of the day was on UK-China Net-Zero Partnerships. Chen Xiaomeng, Chief Commercial Officer at Red Rock Power, explained how they had provided turbines for two large-scale offshore and three small-scale onshore wind projects and received funding from China’s State Development and Investment Corporation.

“The attraction was that the market was a new market with a lot of opportunity in relation to offshore wind,” he said. “And the UK is at the forefront of these technologies.”

Eugene McKenna, Commercial and Strategy Director of Hydrogen Technologies at Johnson Matthey, said that his company’s global ambition “is to get the world to Net Zero,” and to do that, you need a presence in China. “China produces a lot of carbon dioxide, so we need to be in there,” he said. “We are working on decarbonising the modern processes and using fuels such as Blue Hydrogen”.

McKenna explained that the technology is developed in the UK and then licensed in China. “China is at the forefront of deploying fuel cells,” he says. “Half of the world’s fuel cells deployed are in China.”

Rt Hon Professor Charles Hendry CBE Hon FEI, Former UK Minister of Energy & Climate Change, said that it was clear from his dealings with China a decade ago that the country was keen to lead in the technology sector rather than simply taking Western technology and selling it back. China’s commitment to doing so can be seen from their investment in the area, he explained. The United States has invested US$140 billion in decarbonisation, and the EU has invested US$180 billion, whilst China has invested an impressive US$540 billion.

“Fundamentally, this is about partnerships,” said Hendry. “The UK started its offshore wind production a decade ago, and we now produce 13 gigawatts. China has 25 gigawatts.”

Sujay Sharma, Regional General Manager at bp Pulse AsPac, said that China is also a leader in electrification. “It has the largest electric car parking network; it pushes for Net Zero in greening of the grid via solar and wind and pushes for electrification for fleets, as well as in the private B2C sector. Foreign businesses in the sector, such as EV production and charging, have seen support from the government, and China has doubled its number of charging stations from 2.6 million to 5 million during the backdrop of covid challenges.”

Natasha Luther-Jones, International Head of Sustainability and ESG at DLA Piper, explained that there was a huge need for “just transition” when it comes to moving from dirty to clean energy in a manageable way for poorer economies.

“In Africa, there is a balance – for renewable energy, but also a need for power and an income,” she said. “People accepted that you can’t have us, who have progressed quite far in this area, pushing Net Zero on everyone else.”

Funds to compensate those who suffer from environmental damage will be a hot topic in the coming year, said Hendry, as the coming COP conference in the UAE “will not just be for the powerful but the powerless”, he said.

Moderator Jon Williams asked if there was a political risk to having Chinese investment in the UK’s power supply. But Red Rock’s Chen said that 95% of the 80 staff they employ are locals, and the equipment they use has no security issues attached to it. The biggest threat to the industry, Chen added, was inflationary pressure and price increases.

“We should be welcoming investment,” said Professor Hendry. “We want to attract investment in the EV supply chain. China leads in terms of tech and innovation, and so they are the natural partner, and we need to secure investment.”

‘TLC’ – transparency, longevity, and clarity – are essential, he added, noting that we have to work harder than before as changing government, Brexit and competing with new investment incentives from the US and the EU will make it harder for the UK to attract that investment.

However, Natasha Luther-Jones said that as Britain is a world leader in on-shore wind generation, the US and EU are looking to us to learn, and therefore investment will likely continue.

“The issue is there is not enough private sector investment available. We need companies like Red Rock to invest – even as a minority,” she said.

The impact of the government is not to be underestimated, said Professor Hendry. Government incentives for investment are essential. “Hawkishness in Government creates a nervousness, but all the messaging now is that we want a constructive relationship with China, and nowhere is that more apparent than on Net Zero and de-carbonisation.”

CBBC’s Chief Executive Andrew Seaton joined in the discussion to say that CBBC is trying to counter this negative impression. “It’s evidently a clear case for the UK to be doing business in China in areas which don’t cause us national security concerns and to be cooperating in areas such as Net Zero,” he said, with John Edwards adding that people don’t talk enough about the British global success story that is offshore wind.

The third panel session of the day focused on Seizing New Opportunities in The Greater Bay Area (GBA)

At the third panel session of the day, Seizing New Opportunities in the Greater Bay Area (GBA), delegates were introduced to the region by Wilson Pang, Senior Partner at KPMG Advisory for Southern China. Detailed insights into the geographical and economic situation of the GBA and future plans were produced.

Wilson Pang explained that the current GDP of the combined GBA already accounts for US$1.9 trillion, but it plans to overtake the US$2.5 trillion of the Tokyo Bay Area by 2025 and hit US$5 trillion, making it larger than the GDP of all the ASEAN countries combined by 2030.

Andrew Davis, Head of Investment Promotion, UK Office for Invest Hong Kong, explained that it was more than a government scheme. What was previously known as the Pearl River Delta is now called the Greater Bay Area and benefits from allowing access to a much bigger market than just Hong Kong. There are 8 million people in Hong Kong, but 70 million in the GBA.

Andrew Davis said that several UK firms working on robotic surgery, including robotics companies from both the University of Cambridge and Imperial College London, have moved to the GBA. Robotics, finance, high-tech and innovation all create an industrial system that benefits from the region’s unique national and international transport hubs, known as Dual Circulation.

Natalie Chan, Director of Location Based Entertainment for APAC at Hasbro, explained that the region’s integrated structural system was one of the main reasons Hasbro has its regional hub in the GBA. From manufacturing to shipping, software to logistics, professional and financial services and standards — it is all found in the same area.

Jurga Zilinskiene MBE, founder and CEO of Guildhawk, explained her reasons for locating in the GBA, thanking Invest Hong Kong and CBBC for their support in making it happen.

She said that collaboration and sharing of intellectual property are important for her company to solve problems. “We need collaboration from different players – tech, academia and other partners. It is exciting to find the willingness to collaborate and problem-solve in this area,” she said. She went on to say that having commercial processes and financial investment opportunities in the same area really creates an environment that can advance technology.

Delegates enjoyed the chance to network and exchange ideas at the Forum

Delegates also took part in several break out sessions

Following a lively lunch in which delegates enjoyed the chance to mingle and network amongst themselves as well as with speakers, the Forum resumed with a choice of four afternoon breakout sessions. These sessions spanned a range of topics relevant to those in attendance across all industries and at all stages of their China market journey.

The sessions explored topics including: ‘British Brands and China’s New Generation of Sustainable Consumers’; ‘Sustainable & Diverse UK-China Education Partnerships’; ‘UK-China Partnerships in Green Finance and Sustainable Investment’; and ‘Tech for Global Good: UK-China Collaboration in Science and Technology’, giving delegates actionable and sector-specific takeaways from leading industry experts.

Delegates and speakers at the afternoon breakout sessions

Delegates and speakers at the afternoon breakout sessions

Delegates and speakers at the afternoon breakout sessions

Following the Breakout Sessions, delegates enjoyed an opportunity for informal networking, drinks, and nibbles at the end of the day.

Delegates and Speakers enjoyed the chance to network over drinks at the end of the event

The UK-China Business Forum 2023 proved a wonderful opportunity for members of the UK-China business, education, and cultural communities to reunite, exchange knowledge and ideas, and ready themselves for a productive year ahead.

The event was made possible with the support of our sponsors: HSBC, bp, Invest HK, and Oxford International Education Group, as well as our partners: China Chamber of Commerce in the UK, China Europe International Business School (CEIBS), Manchester China Forum, Renewable UK, Society of Motor Manufacturers and Traders, TheCityUK, TechUK, Universities UK International, and the UK Government.

Learn more about the UK-China Business Forum 2023, including the full agenda, list of speakers and speaker biographies here.

Browse photos from the event here.

We hope to see you again soon at more events hosted by CBBC. Keep up to date with our events calendar here. Learn about our membership offer here. And for further enquiries related to the event, please contact us at enquiries@cbbc.org.

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UK-China relations and trade opportunities in the post-Covid era

Travel restrictions, an uncertain economic outlook and a rapidly-shifting geopolitical landscape have created challenges in the UK-China trading relationship. So as China moves into a post-Covid world, it is more important than ever that UK businesses understand which industries currently represent areas of opportunity. This article looks at developments across the consumer market, finance and healthcare, and the travel and tourism sectors.

UK-China net zero partnerships

The news that the UK saw its warmest year on record in 2022 – and the prediction that this year could be even hotter – is yet another reminder of the need to enable a low-carbon future. With their governments behind them, companies in the UK and China have been working hard to achieve the two countries’ Net Zero targets across fields from green finance to clean transportation and the urban energy transition – often working in partnership.

Opportunities for UK businesses in the Greater Bay Area

The Greater Bay Area (GBA) — comprising nine municipalities of Guangdong Province (Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing) around the Pearl River Delta, plus the two Special Administrative Zones (SAR) of Hong Kong and Macau — has a population of 86 million people with a collective GDP roughly the size of Canada’s at nearly USD 2 trillion. Four years on from the release of a major plan for the development of the region, what opportunities does the GBA present for UK businesses and in what industries?

British Brands and China’s new generation of sustainable consumers

The lack of public environmental activism in China can paint a picture of a consumer base disinterested in sustainability, but this is not the case. In fact, a June 2022 consumer survey by PwC showed that 34% of Chinese consumers “often” or “always” agree that a business’ environmental actions influenced their decision to buy, and the pandemic has only accelerated this trend. As Chinese consumers become more discerning about the origins of the products they buy, smaller brands can have the edge over big names — we explore how British brands can take advantage of this. 

Sustainable and diverse UK-China education partnerships

As many as 144,000 Chinese students are currently pursuing higher education in the UK (32% of the total number of international students), and they have become one of the country’s largest international student cohorts, making significant contributions to the higher education sector and regional economies. While this situation is unlikely to change any time soon, a number of new challenges – from the rising quality of Chinese universities to the tense geopolitical environment – mean that educational institutions need to consider how to make sure that their strategies are sustainable.

UK-China partnerships in green finance and sustainable investment

2021 saw China become the world’s second-largest green bond market according to HSBC (issuing over RMB 600 billion of green bonds, a 180% increase on 2020), as the country rolled out funding to support the vast array of clean and renewable infrastructural projects that will be required to meet its ambitious net zero targets. The UK financial sector, for its part, has played a world-leading role in developing such instruments from their inception, and is well-placed to work together with Chinese partners in pursuing common goals.

Tech for global good: UK-China collaboration in science and technology

Partnerships between the UK and China in science and technology can create significant economic and societal benefits, including boosting productivity, improving healthcare outcomes, and creating a greener economy. To give just one example, Sarah Keenlyside spoke to the co-founder of Beijing X-Magtech Technologies, Bin Cai, to find out how crossover between China and the UK in everything from education to manufacturing made their pioneering medical technology possible.

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