Services Archives - Focus - China Britain Business Council https://focus.cbbc.org/category/services/ FOCUS is the content arm of The China-Britain Business Council Fri, 25 Jul 2025 09:01:06 +0000 en-GB hourly 1 https://wordpress.org/?v=6.9 https://focus.cbbc.org/wp-content/uploads/2020/04/focus-favicon.jpeg Services Archives - Focus - China Britain Business Council https://focus.cbbc.org/category/services/ 32 32 What does Shanghai’s minimum wage rise imply for the economy? https://focus.cbbc.org/what-does-shanghais-minimum-wage-rise-imply-for-the-economy/ Sun, 20 Jul 2025 08:58:13 +0000 https://focus.cbbc.org/?p=16409 A modest pay increase in China’s financial hub reflects wider national efforts to balance economic pressures with social stability From 1 July 2025, Shanghai raised its monthly minimum wage from RMB 2,690 (£288) to RMB 2,740 (£294), a relatively conservative increase of less than 2%. The city’s hourly minimum wage also climbed from RMB 24 (£2.57) to RMB 25 (£2.68). While Shanghai retains the highest minimum wage in the country,…

The post What does Shanghai’s minimum wage rise imply for the economy? appeared first on Focus - China Britain Business Council.

]]>
A modest pay increase in China’s financial hub reflects wider national efforts to balance economic pressures with social stability

From 1 July 2025, Shanghai raised its monthly minimum wage from RMB 2,690 (£288) to RMB 2,740 (£294), a relatively conservative increase of less than 2%. The city’s hourly minimum wage also climbed from RMB 24 (£2.57) to RMB 25 (£2.68). While Shanghai retains the highest minimum wage in the country, the small increment marks its lowest annual increase in over a decade — signalling a broader strategic shift in China’s approach to wage setting.

The restrained increase comes at a time when many Chinese cities are weighing the need to support workers against mounting pressure on businesses. For low-income workers in the city, the additional RMB 50 (£5.36) a month may be welcome but is unlikely to keep pace with rising costs for essentials like rent, transport and food. Meanwhile, employers — particularly in the private sector and among SMEs — have been wary of sharper increases that could hit hiring and operating margins.

Shanghai’s move follows a pattern seen in other economically advanced parts of China, such as Beijing, Shenzhen and Guangdong, where minimum wage growth has slowed in recent years. Beijing now has the country’s highest hourly minimum wage at RMB 26.4 (£2.83), while Shenzhen and Guangdong follow closely behind Shanghai with monthly minimum wages of RMB 2,520 (£270) and RMB 2,500 (£267) respectively. Coastal cities continue to lead the pack, but the difference with other regions is narrowing as inland provinces roll out more substantial hikes.

launchpad CBBC

China allows each of its 31 provincial-level regions to set their own wage levels, leading to wide disparities. While most now have minimum monthly wages above RMB 2,000 (£214), some less developed provinces such as Hunan and Liaoning still sit closer to RMB 1,700 (£182). Regional authorities are required by law to review wages at least every two to three years, but increases are not guaranteed. Shanghai skipped adjustments altogether in both 2022 and 2024, reflecting the uncertain post-Covid economic environment and the government’s cautious fiscal outlook.

The wider context for these adjustments is China’s drive towards “common prosperity”, a national policy ambition aimed at reducing inequality and spreading the benefits of growth more evenly. While minimum wage rises are just one part of this broader agenda, they remain a critical lever for supporting working-class incomes and boosting domestic consumption.

Still, policymakers are walking a tightrope. Labour-intensive industries such as manufacturing, retail and logistics remain sensitive to wage increases, particularly in regions where businesses already face thin margins. Some firms may respond by relocating operations to lower-cost inland areas, or by investing in automation. Others may reduce hiring or move workers to informal, lower-paid roles not protected by minimum wage regulations.

There is also a generational and demographic dimension. Migrant workers and young people are disproportionately represented in low-wage and part-time employment, and thus stand to benefit from wage increases, but they are also most at risk if businesses trim staff to offset higher costs.

Shanghai’s modest wage rise this year suggests a preference for gradualism. The increase was likely designed to signal continued government support for workers, without destabilising local businesses or contributing to inflation. Analysts expect other cities to follow similar trajectories: small, measured increases tied closely to local economic indicators such as productivity growth, employment rates and cost-of-living data.

With China’s economy facing slower growth, soft domestic demand and ongoing global trade pressures, wage-setting will remain a key balancing act for local and national authorities. The 2025 update may be modest on paper, but it offers insight into how China is managing its transition from high-growth industrial powerhouse to a more service-led, consumption-driven economy.

For now, Shanghai leads the country in both pay and prudence. The rest of China is watching closely.

Launchpad membership 2

The post What does Shanghai’s minimum wage rise imply for the economy? appeared first on Focus - China Britain Business Council.

]]>
Part 2: What to do if your relationship with a Chinese distributor goes wrong https://focus.cbbc.org/part-2-what-to-do-if-your-relationship-with-a-chinese-distributor-goes-wrong/ Sat, 12 Jul 2025 13:45:05 +0000 https://focus.cbbc.org/?p=16366 Whether you want to regain control, stay in the market or make a clean break, here’s how to manage a breakdown with your Chinese distributor, and how to avoid it becoming a full-blown disaster If Part 1 of this series focused on what brands must do to prepare before signing with a Chinese distributor, Part 2 explores the more difficult scenario: what happens if that relationship breaks down? As Zarina…

The post Part 2: What to do if your relationship with a Chinese distributor goes wrong appeared first on Focus - China Britain Business Council.

]]>
Whether you want to regain control, stay in the market or make a clean break, here’s how to manage a breakdown with your Chinese distributor, and how to avoid it becoming a full-blown disaster

If Part 1 of this series focused on what brands must do to prepare before signing with a Chinese distributor, Part 2 explores the more difficult scenario: what happens if that relationship breaks down?

As Zarina Kanji, Managing Director UK & Europe at WPIC, puts it: “The best thing is to avoid getting stuck in the first place.” But if things do go wrong, whether the distributor isn’t delivering, the market strategy has changed, or the working relationship has simply soured, brands must move swiftly, strategically and with clarity.

launchpad gateway

“Trust is absolutely fundamental in Asia,” says Kanji. “It’s a region where relationships matter. The number of UK brands and beauty partners is small, people talk. If you can keep things professional and polite, you’ll stand a better chance of exiting on good terms.”

That’s not always easy, but it’s critical. “If you’re planning to stay in the Chinese market, you’ll need to line up a new partner and manage the transition carefully,” she explains. “Platforms like Alibaba or an agency like WPIC can sometimes support the handover. The new partner might help with transferring stock, keeping the store live and downtime minimal. But this is only possible if the breakup isn’t acrimonious.”

If tempers flare or the relationship turns hostile, things can spiral quickly: stores shut down, sales data is lost, and customer reviews disappear. “In the worst-case scenario,” she adds, “it’s a reminder of why doing due diligence upfront— and retaining ownership of your store — is so important.”

A phased approach—not a scorched earth

Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors, has seen this scenario play out many times, including with long-established brands.

“I’ve worked with companies that started with wholesale, then expanded into e-commerce and even hired staff. When the time was right, they decided to set up their own company in China. But instead of cutting ties with their distributor, they took a phased approach.” In this case, the company drew up a list of everything the distributor controlled — logistics, warehousing, customs clearance — and identified what to take back in-house and what to leave in place.

“Just because the distributor’s no longer right for the e-commerce or brand management side, doesn’t mean they’re not good at operations,” says Koehler-Coluccia. “So rather than burn the bridge, keep them doing what they’re good at. It also avoids triggering hostility.”

This type of staged transition can be particularly valuable for brands that rely on physical stock management. “Distributors don’t always just run the store,” she says. “They may also hold your inventory, fulfil orders, or handle customer service. You need to think about the whole supply chain, not just the front end.”

If it turns ugly, get legal, get local

But what if the distributor won’t cooperate? What if they refuse to transfer ownership of assets – or worse, continue using your brand? “If it turns ugly, you need a Chinese lawyer,” says Koehler-Coluccia. “Don’t try to manage this through a UK firm. Chinese law, Chinese platforms – this is where you need expertise on the ground.”

The first step is to review your contract. Hopefully, it includes clear terms on asset ownership and an exit clause (as advised in Part 1). If the distributor has no licensing rights and doesn’t own the trademark, you have leverage. “If they’re still using your brand post-termination, you can stop shipping,” she says. “That gets their attention. Meanwhile, your legal team can engage directly with the platform—whether that’s Tmall, JD, or another.”

She also recommends reaching out to the platform itself. “Tmall and JD don’t want this conflict either,” she explains. “They earn off your sales. They want to keep your brand active. You can get a client manager, and in some cases, they’ll help you change usernames and passwords. But you need a lawyer to do this—it’s not a simple customer service job.”

Keep your company structure in mind

For brands with serious long-term ambitions in China, one option is to incorporate locally. “Platforms will only let you own your store directly if you have a Chinese entity,” explains Koehler-Coluccia. “So many companies we work with start by using a distributor, but then form their own local company to take over.” That local entity can then contract directly with the platform, manage invoicing, repatriate profits, and even hire staff. “You can still outsource warehousing and logistics, even keep the same partner in a reduced role,” she adds. “But you control the brand and the data.”

For brands exiting completely, the priorities are slightly different. “If you’re done with the market,” says Kanji, “then the key is to get everything closed as quickly and cleanly as possible. Connect with the platforms and ask to close the stores, retrieve any stock, reclaim your platform deposit and close contracts—especially if you’ve got months left and nothing’s happening.”

Think strategically, not emotionally

In Kanji’s experience, British brands often get caught up in the heat of a bad situation. “But think long term,” she advises. “If you might want to come back to China, then it’s worth leaving on good terms.”

She recommends again using the CBBC, DBT, or approaching platforms directly for guidance. “There are people who’ve done this before and can help. Don’t go it alone.” And ultimately, as Koehler-Coluccia points out, this is about thinking operationally. “Too many brands only think about the e-commerce channel. But if you’ve been doing wholesale too, that’s a whole different relationship. Do a SWOT analysis. What are your distributor’s strengths? Where are the weaknesses? How much can you do yourself—and how much do you need help with?” She concludes with a reminder: “If your distributor has done a good job with logistics, why change it? The goal is to regain control, not destroy what’s working.”


Part 1 Recap: What to do before engaging a Chinese distributor
Read the first feature in this two-part series for a full breakdown of how to choose the right distributor, avoid common mistakes, and ensure you retain control of your brand in China.

The post Part 2: What to do if your relationship with a Chinese distributor goes wrong appeared first on Focus - China Britain Business Council.

]]>
Part 1: What to do before engaging a Chinese distributor https://focus.cbbc.org/part-1-what-to-do-before-engaging-a-chinese-distributor/ Fri, 11 Jul 2025 13:42:33 +0000 https://focus.cbbc.org/?p=16364 Making sure you have the right distributor before you enter the market is essential to ensure your brand’s IP is protected and you won’t come unstuck further down the line. In the first of this two-part series, we explain what to do in advance of finding a Chinese partner It’s no secret that the Chinese market offers immense opportunities for international brands. But engaging a distributor without thorough preparation can…

The post Part 1: What to do before engaging a Chinese distributor appeared first on Focus - China Britain Business Council.

]]>
Making sure you have the right distributor before you enter the market is essential to ensure your brand’s IP is protected and you won’t come unstuck further down the line. In the first of this two-part series, we explain what to do in advance of finding a Chinese partner

It’s no secret that the Chinese market offers immense opportunities for international brands. But engaging a distributor without thorough preparation can leave businesses exposed, misrepresented, or worse, locked out of their own success. Two experts, Zarina Kanji, Managing Director UK & Europe at WPIC, and Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors, offer a clear-eyed look at the key steps British companies must take before signing anything.

The first lesson: do your homework. “Due diligence is everything,” says Kanji. “Ask for case studies from the distributor of companies they have worked with before and speak to them about their experience with that distributor. Ask partners within the network for their insights. It’s a relatively small community, so introductions are possible. Speak to other brands about their experience—but be discerning. Some may have had a bad story, but that might be down to getting the price wrong, or targeting the wrong market.”

launchpad gateway

She recommends using networks like the China-Britain Business Council (CBBC) and the Department for Business and Trade (DBT) to get introductions and independent perspectives. But due diligence isn’t just about reputation, it’s also about understanding what’s actually being offered.

“Governance is important,” she says. “You need to know the breadth of services on offer. Is it an end-to-end service? Are they only running social campaigns, or are they also providing logistics, data reporting, and customer service? Some brands charge less, but do a lot less. You have to understand what’s required of you as the brand.”

For example, larger partners like WPIC may put 10 to 15 people on a single brand account. But smaller partners often require brands to provide considerable input, time and resources of their own. If your internal team can’t handle the load, the relationship may suffer.

Know your value…and your size

A common mistake, Kanji warns, is choosing a distributor that’s either too big or too small. “If your brand is under £10 million in annual turnover, don’t go for a giant partner like Baozun. You’ll be competing with Nike or Lululemon and you simply won’t get the attention.”

Instead, she advises finding partners at a comparable size. “You want someone who sees value in your business and is incentivised to make it grow, not just to hit quotas.”

Own your store. Protect your IP.

Perhaps the most critical red flag is giving away too much control, too early. “Make sure you own your store in China,” says Kanji. “The worst-case scenario is handing ownership of your Tmall or JD store to the distributor. Once they have that, they have the upper hand. That’s where the most costly and complex challenges come from.”

Koehler-Coluccia agrees emphatically. “There must be a clause in the distribution agreement that clearly states: all collateral belongs to the brand,” she says. “That includes the Tmall and JD stores, the inventory, all the digital assets. And if the contract ends, there must be a clean transfer of those assets back to the brand.”

In practice, she adds, this means spelling everything out in the contract—including an itemised list of what the distributor is setting up, and who owns what. Too often, British companies rely on UK lawyers for contracts that will be enforced in China. “Don’t do that,” she says. “Hire a Chinese law firm. You’re playing by Chinese rules—use someone who knows the game.”

Plan your exit before you start

One of Koehler-Coluccia’s most repeated mantras is simple: have an exit strategy. “There needs to be a section in the contract that says: if this doesn’t work, here’s how we unwind it. That includes transferring stores, assets, remaining stock. Don’t wait until things go wrong to figure that out.” It’s also worth accounting for the possibility that the distributor might lose money on the venture. “If they spend on marketing or logistics and don’t see ROI, what happens? That needs to be agreed up front—whether that’s clawback clauses or refund triggers.”

Understand the costs…and how to get paid

The Chinese e-commerce ecosystem is expensive and complex. Brands must factor in multiple layers of fees: platform deposits (for Tmall, JD, etc.), annual platform charges, partner fees, and campaign costs. All of these need to be fully itemised from the beginning.

“Get a full breakdown,” says Kanji. “You need to know what the fees are, what frequency they’re paid, and what happens if something goes wrong. Budgeting without this knowledge is asking for trouble.”

Remittance is another challenge. How will profits be repatriated? What’s the process for converting RMB back into pounds? These issues need to be clarified up front, with support from tax and legal advisors familiar with Chinese rules.

Stay involved from day one

For companies that assume the distributor will handle everything, both experts sound a stark warning. “Too many brands just want to delegate,” says Koehler-Coluccia. “They don’t have the internal capacity, so they assume they can just hand it off and watch the money roll in. That’s a fantasy.” Instead, she stresses the need for active involvement: “Set KPIs. Have monthly meetings. Monitor performance. If targets aren’t being hit, have that conversation early.”

It’s not uncommon, she says, for companies to ignore the setup process, then try to take control later, only to find the distributor has more leverage than expected.

“They’ll say: we put in the capital, the resources, the attention. And now you want to terminate us? If you’re not willing to pay attention from day one, what do you expect?”

Choose partners with platform access and influence

Relationships still matter in China, particularly when it comes to access and visibility. “Ask how long they’ve been in business, and how well integrated they are with platforms like Alibaba, Douyin, Xiaohongshu (RED),” says Kanji. “At WPIC, we have longstanding partnerships, so we get early access to marketing campaigns or new tools. That gives our clients first-mover advantage. Some agencies don’t have those connections., they can’t pull favours, they can’t get you in early.” That kind of platform integration can be the difference between a flagship campaign and being lost in the crowd.

Eyes wide open

Ultimately, both Kanji and Koehler-Coluccia stress the same thing: be realistic. China is not a plug-and-play market. It takes time, investment, clarity, and ongoing engagement. British brands that treat their Chinese distributor as a plug-in growth engine are almost always disappointed. But with the right preparation, the right legal safeguards, and a partner aligned to your scale and ambition, the rewards can be substantial. As Koehler-Coluccia puts it, “You can’t just hand it off and hope. This is your brand. Protect it.”

Read Part 2 here: What to do if your relationship with a Chinese distributor goes wrong

The post Part 1: What to do before engaging a Chinese distributor appeared first on Focus - China Britain Business Council.

]]>
What Are China’s New Facial Recognition Regulations? https://focus.cbbc.org/what-are-chinas-new-facial-recognition-regulations/ Fri, 27 Jun 2025 07:53:00 +0000 https://focus.cbbc.org/?p=16318 China’s latest rules on facial recognition technology introduce mandatory registration for companies handling significant volumes of personal data, alongside a practical guide to compliance In an era where facial recognition technology is increasingly embedded in daily life, from unlocking smartphones to streamlining payments, China has introduced robust regulations to ensure its responsible use. On March 21, 2025, the Cyberspace Administration of China (CAC) and the Ministry of Public Security (MPS)…

The post What Are China’s New Facial Recognition Regulations? appeared first on Focus - China Britain Business Council.

]]>
China’s latest rules on facial recognition technology introduce mandatory registration for companies handling significant volumes of personal data, alongside a practical guide to compliance

In an era where facial recognition technology is increasingly embedded in daily life, from unlocking smartphones to streamlining payments, China has introduced robust regulations to ensure its responsible use. On March 21, 2025, the Cyberspace Administration of China (CAC) and the Ministry of Public Security (MPS) released the Security Management Measures for the Application of Facial Recognition Technology, effective from June 1, 2025. These measures, supplemented by a clarifying notice from the CAC on March 30, 2025, mandate registration for companies processing facial data of over 100,000 individuals and provide a clear framework for compliance. For British businesses operating in or entering the Chinese market, understanding and adhering to these rules is essential to safeguard operations and protect personal data.

launchpad gateway

The New Regulatory Landscape

China’s facial recognition regulations are part of a broader effort to strengthen data protection under the Personal Information Protection Law (PIPL), enacted in 2021. The Security Management Measures aim to balance innovation with the protection of individual privacy, addressing concerns about the misuse of sensitive biometric data. The rules apply to any organisation, domestic or foreign, processing facial recognition data in China, with a particular focus on those handling large datasets. According to the CAC, companies storing facial data of more than 100,000 individuals must register with their provincial-level cyberspace administration within 30 working days of reaching this threshold.

Recognising the compliance burden, the CAC introduced a grace period for companies that hit this threshold before June 1, 2025, allowing them until July 14, 2025, to complete registration. This transitional measure reflects China’s pragmatic approach to implementation, ensuring businesses have time to adapt without immediate disruption. Additionally, the CAC issued detailed ‘Instructions for Filling in the Facial Recognition Technology Application Filing System (First Edition)’, accessible via the Personal Information Protection Business System or the National Cyberspace Administration Government Affairs Hall on the CAC’s website. These guidelines outline the registration process, required documentation, and compliance expectations, making it easier for companies to navigate the system.

Why Compliance Matters

Facial recognition technology is widely used in China across sectors like retail, finance and security, but its rapid adoption has raised concerns about privacy and data security. China’s facial recognition market is projected to reach £7.2 billion by 2027, driven by applications in smart cities and public safety. However, high-profile cases, such as the 2021 fine imposed on a Hangzhou zoo for collecting facial data without consent, underscore the risks of non-compliance. The zoo was ordered to delete the data and issue a public apology, highlighting China’s growing emphasis on enforcement.

For British businesses, compliance is not just about avoiding penalties; it’s about building trust in a market where data protection is increasingly scrutinised. Robust cybersecurity measures, including compliance with data laws, are critical for protecting investments in China. Failure to register or properly handle facial data could result in fines, operational restrictions, or reputational damage, particularly for companies in sectors like technology, retail, or hospitality that rely on facial recognition for customer engagement.

How to Register: A Step-by-Step Guide

The registration process is designed to be straightforward, with all steps completed online via the Personal Information Protection Business System. Companies must first create an account on the platform before uploading the required documents, which include:

  • A Basic Information Form of Personal Information Processor, detailing the company’s operations and data processing activities.
  • A Facial Recognition Technology Application Record Form, outlining the scope and purpose of facial data use.
  • A Personal Information Protection Impact Assessment (PIPIA), assessing the legality, necessity, and risks of data processing.
  • Scanned copies of the Unified Social Credit Code Certificate, legal representative’s ID, agent’s ID, Power of Attorney, and Letter of Commitment, all stamped with the company’s official seal.

The CAC reviews submissions within 15 working days, updating the application status to “Filing Completed,” “Returned for Improvement,” or “Review Failed.” If supplementary materials are required, companies have 10 working days to provide them, or the process is terminated. The CBBC advises seeking professional support, such as from its Information Systems team, to ensure compliance with China’s data laws and to localise global systems effectively.

Conducting a Personal Information Protection Impact Assessment (PIPIA)

A cornerstone of the new regulations is the requirement to conduct a PIPIA, as mandated by the PIPL. This assessment evaluates the legality, legitimacy, and necessity of facial data processing, alongside the potential impact on individual rights and the effectiveness of protective measures. The Filing Instructions provide a tailored template for facial recognition, requiring companies to disclose technical specifications, data collection and storage methods, standard operating procedures, and the ethical basis for data use. For example, companies must clarify whether facial data is used for automated decision-making, such as targeted advertising, and detail the infrastructure and technology providers involved.

The PIPIA process encourages transparency and accountability, aligning with international best practices. The PIPIA requirement has driven companies to adopt more robust data governance frameworks, enhancing trust among consumers and regulators alike.

Easing the Transition

The CAC’s notice reflects a pragmatic approach to regulation, balancing enforcement with flexibility. The grace period for pre-June 2025 data processors and the detailed Filing Instructions demonstrate China’s commitment to supporting businesses during this transition. For British companies, this is an opportunity to align with China’s evolving data protection regime while leveraging tools like the CBBC’s Business Guides, which offer insights into regulatory compliance and market navigation.

Launchpad membership 2

The post What Are China’s New Facial Recognition Regulations? appeared first on Focus - China Britain Business Council.

]]>
How to Protect Intellectual Property in China https://focus.cbbc.org/how-to-protect-intellectual-property-in-china/ Thu, 26 Jun 2025 08:48:25 +0000 https://focus.cbbc.org/?p=16313 As China continues to solidify its position as a global economic powerhouse, protecting intellectual property (IP) in the country remains a critical concern for British businesses seeking to enter or expand in this dynamic market. With rapid advancements in legislation, enforcement mechanisms, and technological tools, China’s IP landscape has evolved significantly in recent years. However, challenges persist, particularly for foreign companies navigating its unique legal and cultural environment Understanding China’s…

The post How to Protect Intellectual Property in China appeared first on Focus - China Britain Business Council.

]]>
As China continues to solidify its position as a global economic powerhouse, protecting intellectual property (IP) in the country remains a critical concern for British businesses seeking to enter or expand in this dynamic market. With rapid advancements in legislation, enforcement mechanisms, and technological tools, China’s IP landscape has evolved significantly in recent years. However, challenges persist, particularly for foreign companies navigating its unique legal and cultural environment

Understanding China’s IP Framework

China’s IP system has undergone transformative reforms since joining the World Trade Organisation (WTO) in 2001, aligning more closely with international standards such as the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Key milestones include the establishment of the first Trademark Law in 1982, the Patent Law in 1984, and the Copyright Law in 1990, all of which have been amended multiple times to enhance protection and enforcement. The China National Intellectual Property Administration (CNIPA) oversees patents, trademarks, and geographical indications, while the National Copyright Administration of China (NCAC) manages copyright matters.

In 2021, China introduced the “Outline for Building a Strong Intellectual Property Nation 2021-2035,” a 15-year plan aimed at strengthening IP protection, improving market value, and boosting brand competitiveness. By 2026, the outline targets a 13% contribution from patent-intensive industries to GDP and an increase in high-value patents per 10,000 people to 12. Recent data highlights China’s progress: in 2022, the country recorded 4.21 million valid patents (up 17.1% year-on-year) and 42.67 million valid trademarks (up 14.6%), underscoring its commitment to fostering innovation.

Despite these advancements, foreign businesses must remain vigilant. China’s first-to-file system for trademarks and patents means that the first entity to register IP rights typically secures them, even if they are not the original creator. This system, combined with historical issues like bad-faith registrations, necessitates proactive strategies to protect IP effectively.

Key Steps to Protect Your IP in China

1. Register Your IP Early

China operates a first-to-file system, making early registration critical to securing IP rights. Trademarks, patents, and copyrights must be registered with the CNIPA or NCAC, as IP protection in other countries does not automatically extend to China. For trademarks, consider registering in both English and Chinese (including transliterations) to prevent bad-faith registrations, where third parties register similar marks to extort foreign companies. The CBBC advises seeking professional assistance due to the complexities of the Chinese IP system, particularly for trademarks, which require a comprehensive understanding of local regulations.

Patents in China include invention patents (20 years), utility models (10 years), and design patents (15 years). Design patents, crucial for creative industries, protect the aesthetic aspects of products but must be registered before public disclosure to maintain eligibility. Copyrights are automatically protected under the Berne Convention, but voluntary registration with the NCAC provides presumptive evidence of ownership, simplifying enforcement. For creative sectors like architecture, design, and media, registering copyrights and design patents is strongly recommended to safeguard against infringement.

2. Use Contracts and Agreements

Contracts are a vital tool for protecting IP internally and externally. Non-Disclosure, Non-Use, Non-Circumvention (NNN) agreements, tailored to Chinese law, are more effective than standard Non-Disclosure Agreements (NDAs) in preventing suppliers, partners or employees from misusing IP. These agreements should be bilingual (Chinese and English) and governed by Chinese law to ensure enforceability. Including IP protection clauses in contracts with employees, clients, and partners further strengthens safeguards.

For creative businesses, contracts can delineate ownership and usage rights for collaborative projects. Clear agreements are key in industries like film and design, where IP disputes can arise from ambiguous partnerships.

3. Leverage Trade Secrets Protection

Trade secrets, encompassing confidential business information like manufacturing processes or client lists, are protected under China’s Anti-Unfair Competition Law, amended in 2019 to enhance safeguards. To qualify as a trade secret, information must be non-public, commercially valuable, and subject to confidentiality measures. Businesses should implement internal controls, such as limiting employee access to sensitive data, providing IP training, and incorporating security into facility design. Monitoring for potential leaks at trade shows or online platforms is also essential.

4. Monitor and Enforce IP Rights

Proactive monitoring is crucial to detect and address IP infringements promptly. Businesses should regularly check trademark and patent databases, industry publications, and e-commerce platforms for unauthorised use. The CBBC’s partnerships with platforms like Alibaba and Tencent facilitate dialogue and enforcement, helping British companies tackle online infringement.

Enforcement options in China include administrative action, civil litigation, criminal enforcement, and customs seizures. Administrative actions, handled by local authorities, are effective for straightforward trademark or counterfeiting cases. Civil litigation, increasingly successful for foreign firms, offers the potential for damages and public deterrence. Specialised IP courts in cities like Beijing, Shanghai, and Guangzhou, established since 2014, have improved judicial expertise and consistency.

5. Utilise Technological Tools

China’s adoption of technology to enhance IP protection is noteworthy. In 2024, the Copyright AI Intelligent Review Tool was introduced to streamline the assessment of copyright infringement cases, particularly for images. By automating analysis, the tool reduces human error and accelerates rulings, empowering creators to combat infringement effectively. Businesses should stay informed about such innovations, as they may expand to cover broader IP categories in the future.

6. Collaborate with Strategic Partners

The CBBC’s network of strategic partners, including the Alibaba Anti-Counterfeiting Alliance (AACA) and the Quality Brands Protection Committee (QBPC), provides valuable support for UK businesses. These partnerships facilitate collaboration with Chinese authorities and platforms, enhancing IP protection and enforcement. Engaging with CBBC’s IP team can also provide access to tailored advice and professional networks.

Addressing Challenges

Despite progress, challenges remain. Bad-faith trademark registrations continue to hinder foreign companies, requiring costly legal action to cancel or invalidate. The perception that “you cannot do anything if someone copies you” in China is outdated but persists among some businesses, underscoring the need for education. Additionally, cultural differences and varying levels of public awareness about IP rights can complicate enforcement.

Businesses, particularly in creative sectors, may hesitate to enter China due to infringement fears. However, by leveraging China’s robust IP system and taking proactive steps, these risks can be mitigated. Success stories, such as eOne’s recognition of Peppa Pig as a well-known trademark, demonstrate that persistence and strategic litigation can yield positive outcomes.

Looking Ahead

China’s IP environment is poised for further improvement, driven by domestic innovation and international pressure. The 2024 Patent Law amendments, introducing patent term extensions for pharmaceuticals and reinforcing good-faith principles, reflect China’s commitment to a stronger IP regime. By 2025, over 2,000 IP support agencies nationwide are expected to assist businesses, processing 71,000 applications annually.

For British businesses, protecting IP in China requires a proactive, multi-faceted approach: early registration, robust contracts, vigilant monitoring, and strategic partnerships. By staying informed and leveraging resources like the CBBC, companies can navigate China’s IP landscape with confidence, fostering innovation and growth in one of the world’s most dynamic markets.

The post How to Protect Intellectual Property in China appeared first on Focus - China Britain Business Council.

]]>
Understanding China’s Anti-Foreign Sanctions Law https://focus.cbbc.org/navigating-chinas-anti-foreign-sanctions-law/ Fri, 06 Jun 2025 08:08:00 +0000 https://focus.cbbc.org/?p=16217 China’s Anti-Foreign Sanctions Law (AFSL), in place since June 2021, has been updated with new regulations from the State Council, released in March 2025. These clarify how the law works and what it means for businesses operating in China. For British companies, particularly those balancing operations in China with ties to markets like the UK or US, it’s worth understanding these rules to stay on the right track. What’s the…

The post Understanding China’s Anti-Foreign Sanctions Law appeared first on Focus - China Britain Business Council.

]]>
China’s Anti-Foreign Sanctions Law (AFSL), in place since June 2021, has been updated with new regulations from the State Council, released in March 2025. These clarify how the law works and what it means for businesses operating in China. For British companies, particularly those balancing operations in China with ties to markets like the UK or US, it’s worth understanding these rules to stay on the right track.

What’s the AFSL all about?

The AFSL is China’s way of responding to what it sees as unfair economic measures, like sanctions or trade restrictions, from other countries targeting Chinese companies or citizens. It’s largely a reaction to actions from places like the US or EU, especially since trade tensions have ramped up in recent years. For British businesses with a presence in China, whether in tech, manufacturing, or education, the law matters because it could affect how you manage compliance across different markets. The new regulations spell out who might be targeted, what measures could apply, and how you can respond if needed, giving UK firms a clearer picture to work with.

launchpad gateway

Who might the AFSL affect?

Under Article 3 of the AFSL, China can take “countermeasures” against individuals or organisations involved in what it considers “discriminatory or restrictive measures” against Chinese interests. The new rules clarify this could include:

  • People or companies directly involved in creating or enforcing foreign sanctions.
  • Senior managers or controllers of those organisations.
  • Businesses linked to or controlled by those on the “countermeasure list.”

If you’re on this list, you might face things like visa restrictions, limits on working with Chinese partners, or having assets in China frozen. For a British firm, this could mean a pause on collaborations with local suppliers or restricted access to funds in China. However, there’s a process to appeal, and the regulations suggest decisions aren’t made lightly.

What happens if you don’t follow the rules?

The AFSL asks companies in China to align with its countermeasures, like not enforcing foreign sanctions against Chinese entities. If you don’t comply, you could face restrictions on doing business in China or, in some cases, lawsuits from Chinese companies or individuals who feel impacted. The law’s a bit vague on whether it applies only to actions in China, so there’s a chance that complying with UK sanctions could raise questions under the AFSL. For British businesses with global operations, this means you’ll need to think carefully about how to balance compliance across jurisdictions, but it’s manageable with the right planning.

What’s new in the 2025 regulations?

The State Council’s latest rules give more detail on how the AFSL works, which is helpful for British firms looking to stay compliant. Here’s what you need to know:

Thoughtful assessments

Before applying countermeasures, the State Council must investigate and assess whether they’re necessary. This means decisions should be well-considered, giving UK businesses some reassurance that measures won’t come out of the blue. You can also apply to have measures lifted if you show you’re compliant.

What can be affected?

The rules clarify that “property” includes things like cash, intellectual property, or bank deposits in China. For a British company with assets like patents or investments in China, it’s worth keeping this in mind when planning.

Broader business activities

Countermeasures might touch sectors like education, technology or tourism. If you’re a UK university with partnerships in China or a tech firm with local operations, it’s a good idea to check how your activities align with the AFSL.

Options for resolution

If a Chinese entity believes your actions support foreign sanctions, it could file a lawsuit seeking compensation. But you can also appeal countermeasures by showing you’ve addressed any issues, like through compliance training or internal audits. This gives British firms a way to resolve disputes constructively.

How has the AFSL been used?

China has applied the AFSL a few times already. In July 2021, it targeted US individuals, like former Commerce Secretary Wilbur Ross, over sanctions related to Hong Kong. More recently, in October and December 2024, it hit US defence firms with measures like asset freezes over arms sales to Taiwan. While no British companies have been named yet, these examples show the law is in play, especially for firms in sensitive sectors like tech or defence. For UK businesses, it’s a signal to stay informed, but not a reason to panic.

How can British businesses stay prepared?

The updated AFSL regulations highlight the need for British companies to be proactive, but they also offer clarity and options for staying compliant. The key is to plan smartly without getting overwhelmed. Here’s how:

  • Check your operations to see if UK or international sanctions might overlap with the AFSL.
  • Work with experts to understand the law’s nuances.
  • Run compliance audits to ensure your business aligns with Chinese regulations.
  • Stay updated on changes to the AFSL, as its scope might evolve.

For instance, a British retailer sourcing goods from China while following UK trade rules should review whether those rules could be seen as “discriminatory” in China. A quick compliance check can keep things running smoothly.

The post Understanding China’s Anti-Foreign Sanctions Law appeared first on Focus - China Britain Business Council.

]]>
How to Set Up a Bank Account in China: A Step-by-Step Guide for Foreign Citizens https://focus.cbbc.org/a-guide-to-opening-a-bank-account-in-china/ Wed, 21 May 2025 10:53:53 +0000 https://focus.cbbc.org/?p=16189 A step by step guide on how to open a bank account in China

The post How to Set Up a Bank Account in China: A Step-by-Step Guide for Foreign Citizens appeared first on Focus - China Britain Business Council.

]]>
Opening a bank account in China is a vital step for foreign citizens living, working, or doing business in the country. This guide outlines the process, requirements, and tips to navigate China’s banking system in 2025

Why Open a Bank Account in China?

For British citizens relocating to China or engaging in business there, a local bank account is essential for seamless financial management. China’s cashless economy, dominated by mobile payment platforms like WeChat Pay and Alipay, relies heavily on local bank accounts for transactions, from paying bills to online shopping on platforms like Taobao. In 2025, China’s e-commerce market is valued at US$2.1 trillion, with 70% of retail sales occurring online, making a bank account critical for daily life. A local account also simplifies receiving salaries, paying rent, and managing cross-border payments in Renminbi (RMB). As Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors, notes, “A local bank account greatly simplifies life in China, offering access to services that foreign cards often can’t provide”.

Step-by-Step Guide to Opening a Bank Account

Opening a bank account in China as a foreigner involves specific requirements and procedures. Below is a clear, step-by-step guide tailored for British citizens, based on the latest 2025 regulations and practices.

Step 1: Confirm Eligibility

Foreigners, including British citizens, can open bank accounts in China, but eligibility depends on visa status. You must hold a valid visa with at least six months’ validity, such as a Z work visa, X student visa, or L long-term private affairs visa. Tourist visas (L visas for short stays) are typically not accepted. You must also be physically present in Mainland China, as remote account opening is rare, except through international banks like HSBC in specific cases.

Step 2: Choose a Bank

China’s banking sector includes major state-owned banks, commercial banks, and international institutions. For British citizens, the “Big Five” banks, Bank of China (BOC), Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Agricultural Bank of China (ABC), and Bank of Communications (BOCOM), are popular due to their extensive branch networks and English-language services in major cities like Beijing and Shanghai. International banks like HSBC, Citibank, and Standard Chartered offer familiarity and multi-currency accounts but may have stricter requirements, such as a minimum balance of £15,000 for HSBC Advance accounts.

Consider factors like branch accessibility, digital banking capabilities, and fees. For example, ICBC’s WeChat Banking service allows account management via WeChat, while BOC offers a Current All-In-One Account for multi-currency transactions.

Step 3: Gather Required Documents

Chinese banks enforce strict “Know Your Customer” regulations, requiring a comprehensive set of documents. Prepare the following, ensuring originals and photocopies are available:

  • Valid Passport: Your primary identification document, with the name matching exactly across all documents to avoid delays.
  • Chinese Visa or Residence Permit: A valid visa or temporary/permanent residence permit, with at least six months’ validity.
  • Proof of Address: A rental agreement, utility bill, or Temporary Accommodation Registration Form from the local Public Security Bureau.
  • Chinese Mobile Phone Number: A local number registered in your name for verification and communication.
  • Proof of Employment or Study (if applicable): An employment contract, letter from your employer, or admission letter from a university for students.
  • Police Clearance Form (sometimes required): A registration form from the local police station, particularly for new arrivals.

Some banks may request additional documents, such as a Taxpayer Identification Number (e.g., National Insurance Number for UK citizens) for cross-border transactions.

Step 4: Visit a Bank Branch

In-person visits are mandatory for most Chinese banks, as online account opening is limited. Choose a branch in a major city, where staff are more likely to speak English and be experienced with foreign clients. Schedule an appointment if possible, and bring a Chinese-speaking friend or interpreter if you’re not fluent, as application forms may be in Chinese.

At the branch, approach the information desk and tell them you would like to open a bank account. Staff will provide an application form and guide you through the process. Expect identity verification and document checks, which may take over an hour.

Step 5: Select an Account Type

Choose between a savings account (for daily expenses and electronic payments) or a multi-currency account (for international transactions). Debit cards are standard, linked to mobile payment platforms, while credit cards are less common for foreigners. Most savings accounts charge an annual fee of around 10 RMB (approximately £1.10), automatically deducted from the account.

For business owners, corporate accounts require additional documentation, such as a Business Licence and proof of state approval for foreign-invested enterprises. These accounts face stricter compliance checks and may take weeks to process.

Step 6: Make an Initial Deposit and Pay Fees

Most banks require an initial deposit, typically 40–50 RMB (£4–£5), though some, like CCB, may require higher balances (and up to 50,000 RMB for certain accounts). A registration fee of 40–50 RMB is also standard. Carry extra cash (around 100 RMB) to cover unexpected costs.

Step 7: Receive Your Bank Card and Set Up Mobile Payments

Once approved, you’ll receive a debit card and account details, typically within one to two weeks, though some banks issue cards on the spot. Link your account to WeChat Pay or Alipay for seamless transactions, as cash is rarely used in urban China. Activate online banking or mobile apps for account management. Be cautious with security, using two-factor authentication to protect against fraud.

Practical Tips for Success

  • Visit Major Cities: Branches in Beijing, Shanghai, or Guangzhou are more accustomed to foreign clients and often have English-speaking staff.
  • Check Visa Validity: Ensure your visa has at least six months’ validity to avoid rejection.
  • Be Patient: Some branches may lack experience with foreigners, requiring multiple visits or additional documents.
  • Explore Alternatives: If opening a local account is challenging, consider a Wise or Revolut account for low-fee, multi-currency transactions, manageable from the UK before your move.
  • Understand Restrictions: Some banks limit international transfers or currency conversions, especially during government restrictions on foreign currency reserves.
Launchpad membership 2

The post How to Set Up a Bank Account in China: A Step-by-Step Guide for Foreign Citizens appeared first on Focus - China Britain Business Council.

]]>
Understanding China’s 2025 Monetary Package https://focus.cbbc.org/chinas-2025-monetary-package/ Thu, 15 May 2025 19:25:00 +0000 https://focus.cbbc.org/?p=16168 China’s comprehensive 10-point monetary policy package, unveiled in May 2025, aims to stabilise financial markets and spur economic growth, offering new prospects for British businesses in a dynamic yet challenging landscape.

The post Understanding China’s 2025 Monetary Package appeared first on Focus - China Britain Business Council.

]]>
China’s comprehensive 10-point monetary policy package, unveiled in May 2025, aims to stabilise financial markets and spur economic growth, offering new prospects for British businesses in a dynamic yet challenging landscape.

On 7 May 2025, China’s financial authorities, led by the People’s Bank of China (PBOC), announced a sweeping 10-point monetary policy package designed to bolster market confidence and support economic stability. Unveiled at a joint press conference with the National Financial Regulatory Administration (NFRA) and the China Securities Regulatory Commission (CSRC), the measures respond to global economic uncertainties, including heightened US tariffs and domestic restructuring challenges. For British businesses, this package signals both opportunities and complexities as China seeks to maintain its position as a global economic powerhouse while fostering a more resilient domestic market.

The package, described by PBOC Governor Pan Gongsheng as a “coordinated” effort, includes a range of tools aimed at injecting liquidity, lowering borrowing costs, and supporting innovation-driven growth. Key among these is a 10-basis-point cut in the 7-day reverse repo rate, from 1.5% to 1.4%, and a 25-basis-point reduction in interest rates for structural monetary policy tools. Additionally, the PBOC has lowered the reserve requirement ratio (RRR) for banks, freeing up capital for lending, particularly to small and medium-sized enterprises (SMEs) and technology-driven firms. These steps, as reported by CGTN, are intended to stabilise market expectations and shore up economic momentum amidst external pressures.

China’s economic context underscores the urgency of these measures. The country has faced significant headwinds from a second trade war with the United States, with US tariffs impacting exporters and global trade dynamics. Bloomberg notes that Beijing’s response includes not only monetary stimulus but also efforts to mobilise medium- and long-term capital to support domestic industries. The package also introduces new financing tools for tech enterprises, reflecting China’s ambition to lead in sectors like artificial intelligence and green energy. For UK firms, particularly those in technology or manufacturing, these initiatives could open doors to partnerships or market entry, provided they navigate the accompanying regulatory landscape.

launchpad gateway

A notable aspect of the package is its focus on supporting SMEs, which are critical to China’s economic fabric. Enhanced financing mechanisms, including targeted loans and bond issuance support, aim to bolster these businesses, many of which have been hit hard by global market volatility. The CSRC has also outlined plans to deepen capital market reforms, encouraging listings by high-tech firms and improving market access for institutional investors. According to Reuters, these reforms are partly a tactical response to US trade pressures, aiming to reduce reliance on external markets. For British SMEs, this could mean increased opportunities to collaborate with Chinese counterparts, particularly in consumer goods and services, where demand remains strong.

However, the package is not without its challenges. While the monetary easing is designed to stimulate growth, it also raises concerns about potential inflationary pressures and asset bubbles, particularly in China’s property sector, which has been a focal point of economic strain. The South China Morning Post highlights that the government is simultaneously rolling out measures to stabilise the job market and boost domestic consumption, indicating a multi-pronged approach to economic recovery. For UK businesses, this dual focus on stimulus and stability suggests a market that is both dynamic and unpredictable, requiring careful strategic planning.

For UK firms these initiatives could open doors to partnerships or market entry

The international backdrop adds further complexity. The package comes at a time when China is pushing for greater internationalisation of the yuan, capitalising on volatility in the US Treasury market. A survey by Renmin University’s International Monetary Institute indicates growing enterprise interest in using the yuan for international settlements, a trend that could reshape trade dynamics. For British firms, this shift may necessitate adjustments in payment and financing strategies, particularly for those engaged in cross-border trade. The CBBC advises UK companies to leverage local expertise to navigate these changes effectively.

The package also aligns with China’s broader geopolitical and economic strategy. Reports from Yahoo Finance suggest that China has agreed to suspend certain non-tariff barriers to US imports, hinting at a potential de-escalation of trade tensions. This development, coupled with the monetary measures, reflects Beijing’s intent to balance domestic priorities with global engagement. For UK businesses, this creates a window of opportunity to engage with a market that is actively seeking to diversify its economic partnerships, particularly in sectors like education, healthcare, and green technology, where British expertise is well-regarded.

For British companies, the implications of the 10-point package are significant. The emphasis on technology and innovation opens avenues for UK tech firms to explore collaborations, though increased regulatory scrutiny in high-tech sectors, as seen in the 2025 Negative List for Market Access, necessitates robust compliance measures. The healthcare sector, buoyed by China’s focus on domestic consumption, presents opportunities for British pharmaceutical and medical device companies to tap into a growing market. Similarly, the easing of financing for SMEs could facilitate joint ventures or supply chain partnerships, particularly for UK firms in consumer goods, where China’s middle class continues to drive demand.

The emphasis on technology and innovation opens avenues for UK tech firms to explore collaborations

The UK-China economic relationship provides a strong foundation for capitalising on these opportunities. The CBBC underscores the potential for British SMEs to benefit from China’s expanding consumer market, though success hinges on understanding local regulations and building strategic partnerships. The monetary package, by enhancing liquidity and market access, could amplify these opportunities, but firms must remain vigilant about competitive pressures and policy shifts.

Critics of the package argue that while it addresses immediate market concerns, it may not fully resolve deeper structural issues, such as China’s reliance on debt-driven growth or vulnerabilities in its property sector. Bloomberg notes that monetary policy alone cannot address all economic imbalances, particularly in a global environment marked by trade disruptions. For UK businesses, this underscores the need for a long-term perspective, balancing short-term gains from market openings with caution about macroeconomic risks.

Launchpad membership 2

The post Understanding China’s 2025 Monetary Package appeared first on Focus - China Britain Business Council.

]]>
China’s 2025 Negative List eases restrictions for UK Businesses https://focus.cbbc.org/chinas-2025-negative-list-eases-restrictions-for-uk-businesses/ Wed, 14 May 2025 14:11:54 +0000 https://focus.cbbc.org/?p=16163 China’s updated 2025 Negative List for Market Access eases restrictions for British investors, opening doors in healthcare, education, and cultural sectors while introducing new oversight for tech industries.

The post China’s 2025 Negative List eases restrictions for UK Businesses appeared first on Focus - China Britain Business Council.

]]>
China’s updated 2025 Negative List for Market Access eases restrictions for British investors, opening doors in healthcare, education, and cultural sectors while introducing new oversight for tech industries.

China has unveiled its 2025 Negative List for Market Access, marking another stride in its ongoing efforts to open its economy to both domestic and foreign investors. Published by the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) on 25 December 2024, the updated list reduces the number of restricted sectors and refines regulations to foster a more unified national market. While this development signals Beijing’s commitment to liberalisation, it also introduces new oversight for emerging industries, reflecting a cautious approach to balancing economic growth with regulatory control. For British businesses eyeing opportunities in China, understanding the nuances of this list is crucial for navigating the evolving market landscape.

The Negative List for Market Access, first introduced in 2018, serves as a cornerstone of China’s market reform strategy. Unlike the Foreign Investment Negative List, which specifically governs foreign investors, the Market Access Negative List applies to all entities—domestic and foreign—operating within China. It delineates sectors where investment is either prohibited or restricted, with the latter requiring special approvals or compliance with specific conditions. The 2025 iteration, effective from 1 February 2025, reduces the total number of restricted and prohibited items from 123 to 115, a modest but significant step towards easing market entry barriers. This reduction follows a trend of gradual liberalisation, with the 2021 list having cut entries from 131 to 123.

launchpad gateway

A key feature of the 2025 list is the removal of several longstanding restrictions. Notably, the requirement for domestic equity holding in certain manufacturing sectors has been lifted, allowing greater flexibility for foreign investors. Restrictions on investment in traditional Chinese medicine production and the operation of performance venues have also been relaxed, opening avenues for cultural and health-related enterprises. These changes align with China’s broader economic goals, including boosting domestic consumption and supporting small and medium-sized enterprises (SMEs), as outlined in the NDRC’s accompanying statement. For British firms, particularly those in healthcare or cultural industries, these adjustments could unlock new opportunities to engage with China’s vast consumer base.

However, the liberalisation is tempered by new regulatory measures targeting emerging sectors. The 2025 list introduces stricter oversight for industries such as drones, internet services, and artificial intelligence (AI). Investments in these areas now require additional approvals, reflecting Beijing’s intent to safeguard national security and maintain control over rapidly evolving technologies. This move comes amidst global concerns about data privacy and technological sovereignty, with China’s Ministry of Industry and Information Technology (MIIT) emphasising the need for “secure and controllable” digital infrastructure. For UK tech companies, this heightened scrutiny may pose challenges, necessitating robust compliance strategies to navigate the regulatory landscape.

The requirement for domestic equity holding in certain manufacturing sectors has been lifted, allowing greater flexibility for foreign investors

Beyond the list itself, the NDRC and MOFCOM have launched a nationwide campaign to dismantle hidden market access barriers. This initiative aims to address local protectionism and inconsistent regulations that have long frustrated businesses operating across China’s diverse provinces. The campaign, set to run through 2025, will focus on streamlining administrative processes and ensuring that national policies are uniformly implemented. According to a report by Bloomberg, this push for a unified market is part of China’s response to external pressures, including the recent US-China trade war, which has underscored the need for a resilient domestic economy. For British businesses, a more consistent regulatory environment could reduce operational uncertainties, particularly for those establishing supply chains or distribution networks across multiple regions.

The timing of the 2025 Negative List’s release is noteworthy, coinciding with a period of economic recalibration for China. The country has faced challenges from US tariffs and global market volatility, prompting Beijing to bolster domestic growth through monetary stimulus and market reforms. The People’s Bank of China recently cut its policy rate and lowered reserve requirements to support an economy strained by external trade pressures. Against this backdrop, the Negative List serves as both an economic signal and a practical tool, reassuring investors of China’s commitment to openness while addressing internal structural issues.

For British companies, the implications of the 2025 Negative List are multifaceted. Sectors such as education, where restrictions on foreign-invested institutions have been eased, present opportunities for UK universities and training providers to expand their footprint in China. Similarly, the relaxation of rules in the healthcare sector, particularly around traditional Chinese medicine, could attract British pharmaceutical firms interested in collaborative research or market entry. However, the increased scrutiny of tech-related investments underscores the importance of due diligence. Partnering with local firms or leveraging the expertise of the CBBC can help mitigate risks and ensure compliance with China’s complex regulatory framework.

The broader context of UK-China economic relations also shapes the significance of the Negative List. Despite geopolitical tensions, trade between the two nations remains robust, with UK exports to China reaching £28.5 billion in 2024, according to the UK Department for Business and Trade. The CBBC has highlighted China’s consumer market and growing middle class as key drivers for British SMEs, particularly in consumer goods and services. The 2025 Negative List, by reducing barriers in these sectors, aligns with these opportunities, though firms must remain vigilant about local competition and evolving regulations.

Critics argue that while the Negative List represents progress, it falls short of transformative reform. Some sectors, such as telecommunications and financial services, remain heavily restricted, limiting foreign participation. The introduction of new controls in high-tech industries has also raised concerns about regulatory unpredictability, particularly for firms reliant on innovation-driven growth. China’s balancing act between liberalisation and control reflects its broader strategy of fostering economic self-reliance while engaging with global markets. For UK businesses, this duality necessitates a strategic approach, balancing optimism about new opportunities with caution about regulatory hurdles.

China’s 2025 Negative List for Market Access is a step towards greater economic openness, offering British businesses new avenues for investment while introducing challenges in emerging sectors. By reducing restricted sectors and tackling local barriers, Beijing is laying the groundwork for a more integrated national market. For UK firms, success in this evolving landscape will depend on thorough market research, strategic partnerships, and a keen understanding of China’s regulatory priorities. As China navigates global economic headwinds, the Negative List underscores its determination to remain a key player in international trade, inviting British businesses to engage with its dynamic market while adapting to its unique challenges.

The post China’s 2025 Negative List eases restrictions for UK Businesses appeared first on Focus - China Britain Business Council.

]]>
A Guide to Getting a Mobile Phone SIM in China https://focus.cbbc.org/a-guide-to-getting-a-mobile-phone-sim-in-china/ Tue, 13 May 2025 09:20:00 +0000 https://focus.cbbc.org/?p=16270 For UK travellers heading to China, securing a local mobile phone SIM card can transform the experience, ensuring reliable connectivity to accessing maps, translation apps, and local services like WeChat, which are integral to daily life. While international roaming offers familiarity, the costs can be prohibitive, and many foreign apps, such as WhatsApp or Google, are inaccessible without a VPN due to China’s internet restrictions. A local SIM card not…

The post A Guide to Getting a Mobile Phone SIM in China appeared first on Focus - China Britain Business Council.

]]>
For UK travellers heading to China, securing a local mobile phone SIM card can transform the experience, ensuring reliable connectivity to accessing maps, translation apps, and local services like WeChat, which are integral to daily life. While international roaming offers familiarity, the costs can be prohibitive, and many foreign apps, such as WhatsApp or Google, are inaccessible without a VPN due to China’s internet restrictions. A local SIM card not only slashes costs but also provides a Chinese phone number, unlocking access to local platforms.

Why Get a Local SIM Card?

A local SIM card is a game-changer for visitors to China. The primary advantage is cost. International roaming charges from UK providers can quickly spiral, with data rates often exceeding £5 per gigabyte. In contrast, a Chinese SIM card offers generous data plans (20GB for around £10) making it a budget-friendly option for staying connected. A local number also opens doors to essential services. Booking a taxi, ordering food via apps like Meituan, or making hotel reservations often requires a Chinese phone number, as many businesses prioritise local contacts or may not respond to foreign numbers. Moreover, a local SIM provides access to China’s 4G and 5G networks, ensuring fast, reliable connectivity, even in rural areas with providers like China Mobile.

However, there are challenges to consider. China’s real-name registration policy requires foreigners to present a passport, which can complicate the process, especially in smaller stores where staff may lack experience with international IDs. Language barriers can also make purchasing and activating a SIM tricky, particularly if you don’t speak Mandarin. Compatibility is another hurdle, your phone must be unlocked and support China’s network bands, as some providers, like China Telecom, may not work with all foreign devices. For short trips, the effort of navigating these hurdles might feel excessive, especially if Wi-Fi hotspots are readily available. Additionally, while a local SIM grants access to Chinese apps, a VPN is still needed to bypass the Great Firewall and access blocked sites like Google or Facebook.

Despite these drawbacks, the benefits of affordability, local integration, and reliable connectivity make a local SIM a worthwhile investment for most UK travellers, particularly for stays longer than a week. For those seeking convenience, eSIMs offer a digital alternative, but they require a compatible device and often focus on data-only plans.

Step-by-Step Guide to Getting a Chinese SIM Card

Step 1: Check Your Phone’s Compatibility

Before purchasing a SIM, ensure your phone is unlocked and compatible with China’s mobile networks. China Mobile, China Unicom, and China Telecom dominate the market, but China Unicom is often the best choice for foreigners due to its compatibility with most international phones, supporting both 3G and 4G/5G networks. Check your phone’s specifications for compatibility with China’s frequency bands (4G bands B1, B3, B5). If in doubt, contact your UK provider to confirm your phone is unlocked, as locked devices won’t work with a Chinese SIM. For eSIM users, verify that your device supports this technology, most modern smartphones, like recent iPhones or Samsung models, do.

Step 2: Choose Your Provider and Plan

China’s three major telecom providers, China Mobile, China Unicom, and China Telecom, offer prepaid plans tailored for tourists. China Unicom is recommended for its foreign phone compatibility and robust urban coverage, with plans like 10GB of data and 500 minutes of calls for around 69 RMB (£7) for 30 days. China Mobile boasts the widest coverage, ideal for rural travel, but its 3G network may not work with foreign phones, limiting you to 4G or slower 2G in some areas. China Telecom’s CDMA network is less compatible with international devices, so it’s best avoided unless your phone supports LTE. Compare plans based on data needs, call allowances, and validity (typically 7–30 days). For short trips, eSIM providers like Airalo or Holafly offer data-only plans starting at £4 for 1GB over 7 days, activated online for convenience.

Step 3: Gather Required Documents

China’s real-name registration policy mandates that all SIM cards be linked to a valid ID. As a foreigner, you’ll need your passport (original or photocopy) and, in some cases, a selfie or proof of your Chinese address, such as a hotel booking. If you’re staying long-term, a residence permit may also work. Have these documents ready to streamline the registration process, as smaller shops may struggle to process foreign IDs without clear guidance.

Step 4: Decide Where to Purchase

You can buy a SIM card at international airports, telecom stores or online. Airports like Beijing (PEK) or Shanghai (PVG) have China Mobile and China Unicom kiosks, but prices are higher, expect to pay 200 RMB (£20) for a 20GB plan. For better value, visit a flagship store in city centres, where staff are more likely to speak English and handle foreign registrations. Alternatively, online platforms like China Adventure or Nihao Mobile allow you to order a SIM for delivery to your hotel, requiring only a passport photo and selfie for activation. eSIMs from providers like Saily or Holafly can be purchased online before travel, offering instant activation upon arrival.

Step 5: Visit the Store or Activate Online

If buying in person, head to a major China Unicom or China Mobile store, ideally in a city centre or “VIP” branch, as smaller outlets may not process foreign passports. Use a translation app like Pleco to communicate your needs. Present your passport, choose a plan, and sign any required forms; expect the process to take 30-60 minutes. For online purchases, follow the provider’s instructions to upload your passport and selfie via their website or apps like WeChat. eSIMs are simpler: purchase online, scan a QR code, and enable data roaming in your phone settings to activate.

Step 6: Insert and Activate the SIM

For physical SIMs, insert the card (nano, micro, or standard size) into your phone and restart it. The SIM should connect automatically, but you may need to enter the provider’s Access Point Name (APN) settings (‘cmnet’ for China Mobile). Check your phone’s settings under “Cellular” or “Mobile Network” to ensure data is enabled. For eSIMs, follow the provider’s activation steps, typically involving a QR code scan. Test the connection by accessing a Chinese app like Baidu. If issues arise, restart your phone or manually select the network operator.

Step 7: Top Up as Needed

To extend your plan or add data, top up via WeChat Pay or Alipay mini-apps by searching “手机充值” (phone recharge) and entering your number. Alternatively, visit telecom stores or convenience shops for scratch cards, or pay cash at post offices. Check your balance by texting provider-specific codes (10086 for China Mobile). For eSIMs, top-ups are managed online through the provider’s app or website, often supporting UK payment methods like Visa or PayPal.

Launchpad membership 2

The post A Guide to Getting a Mobile Phone SIM in China appeared first on Focus - China Britain Business Council.

]]>