Setting the Stage

The event, held in the British Library’s iconic conference centre, featured a diverse programme that highlighted the richness of traditional and digital storytelling. The venue was transformed with multimedia displays showcasing Yuewen’s vibrant digital literature platforms alongside treasured British literary artefacts, symbolising the union of heritage and modernity. Attendees were treated to visual presentations illustrating how Chinese online novels have captivated millions of readers globally, with an emphasis on their themes, innovative formats and cultural resonance​.

Keynote Address and Panel Discussions

The programme commenced with a keynote speech from senior representatives of the British Library, who underscored the importance of cultural diplomacy in an increasingly interconnected world. They highlighted the library’s dedication to preserving and adapting literature for the digital age, ensuring its accessibility to diverse audiences.

Panel discussions followed, featuring British and Chinese authors, academics, and digital publishing experts. Speakers included Yan ZK, a renowned Yuewen author, and Richard Pooley, director of the Conan Doyle estate and step-grandson of Arthur Conan Doyle. Topics ranged from the impact of technology on storytelling to the ways cultural narratives can transcend geographic and linguistic barriers. Particular focus was given to Yuewen’s pioneering approach to interactive storytelling, which enables readers to influence plot developments, and how this could inspire new ways to experience classic British literature.

Showcasing Chinese Digital Literature

One of the event’s highlights was the formal unveiling of ten Chinese online novels, which have been integrated into the British Library in printed format. These works represent a variety of genres, including historical fiction, fantasy, and science fiction, reflecting the diversity of China’s contemporary literary scene. This addition to the library’s collection not only celebrates these works as part of world literature, but also provides an opportunity for British audiences to engage with modern Chinese storytelling.

 “This collaboration with Yuewen is an exciting journey for us, one that underscores our mission to make our collection accessible and relevant to new audiences around the world,” said Jas Rai, Chief Operating Officer of the British Library. “We’re excited for what’s to come as this project unfolds and connects literature lovers across continents.”

Representatives from Yuewen explained the cultural significance of these novels, emphasising how they reflect the aspirations and challenges of contemporary Chinese society. Authors of some of the featured novels participated in a live Q&A session, sharing their creative processes and how digital platforms have allowed them to connect with millions of readers.

“These works show the world the creative energy coming from younger generations in China,” said Hou Xiaonan, CEO and President of Yuewen. “By having some of these works in the British Library collection, it will help UK readers and researchers better understand modern Chinese culture, while also introducing the web novel model to UK contributors, which provides access to a vast new readership and significant opportunities for IP expansion and global influence.”

Interactive Workshops and Cultural Exchanges

Interactive workshops invited attendees to explore the digital storytelling tools pioneered by Yuewen. Participants, including students and aspiring writers, learned to create their own narratives using these platforms. The workshops served as a testament to the partnership’s mission: fostering creativity and accessibility in literature.

The event also featured readings of British and Chinese works, performed in both languages. These bilingual sessions underscored the universality of storytelling while celebrating the unique qualities of each culture. Attendees expressed enthusiasm for the opportunity to experience literary works in such an engaging and innovative format.

Future Goals and Aspirations

The Literature in the Digital Age initiative aims to go beyond digitising literature by fostering deeper cultural appreciation. Future plans include adapting British literary classics for Yuewen’s digital platforms, and making them more accessible and appealing to younger Chinese readers. Similarly, the project will explore ways to bring Chinese digital literature to British schools and libraries, encouraging cross-cultural dialogue from a young age.

In their closing remarks, Yuewen’s representatives expressed their hope that this partnership would inspire more such collaborations globally. They highlighted the transformative potential of combining traditional storytelling with the interactive possibilities offered by modern technology.

Broader Implications

Literature in the Digital Age stands as a powerful example of how literature can act as a bridge between cultures. By embracing technology, the project showcases how tradition and innovation can coexist, offering new ways to connect with stories that define human experience. The event not only celebrated a partnership but also laid the groundwork for lasting cultural exchange, reaffirming the role of literature as a vital tool for global understanding​.

In sum, the initiative is emblematic of a broader trend towards integrating cultural heritage with digital innovation, ensuring literature’s relevance in a rapidly changing world. As the partnership unfolds, it will undoubtedly inspire further exploration into the dynamic intersection of culture, technology, and diplomacy.

The post Bridging cultures through literature in the digital age appeared first on Focus - China Britain Business Council.

The British Library x Yuewen partnership reflects the dynamic and growing world of Chinese internet literature, which has redefined the relationship between authors and readers, attracted hundreds of millions of devotees, and produced countless adaptations across various media. This collaboration promises to provide a unique platform for cross-cultural exchange, combining the British Library’s rich literary heritage with Yuewen’s influential position in China’s booming online literature industry.

The Rapid Growth of Chinese Internet Literature

Chinese internet literature has become a mainstream cultural force, with Yuewen, a subsidiary of Tencent Group, leading the way. Yuewen operates numerous online literature platforms with over 537 million readers and an incredible 24 million authors, many of whom are young, part-time writers with non-literary backgrounds. These writers, often born in the late 1990s and early 2000s, contribute to a diverse and rapidly expanding literary ecosystem, with 36 million literary works published online and two million new works added in 2023 alone.

Popular genres such as xianxia (immortal heroes), xuanhuan (Chinese fantasy), historical fiction and romance dominate the scene, though reality-based, sci-fi, suspense, and urban themes are also gaining traction. This literary world, rich with uniquely Chinese cultural elements, has attracted international attention, with works translated into more than 20 languages reaching audiences in over 40 countries and regions.

The commercial impact of Chinese internet literature is substantial. In 2023, this industry generated RMB 40 billion (approximately £4.3 billion), with adaptations into comics, animations, films, TV series, games, audio and books. About 60% of the top 20 most popular Chinese TV series are adaptations from online novels, reflecting the demand for these stories across different media formats. Yuewen’s platforms alone have seen 72,600 works adapted into other forms, showing how internet literature has become a fertile ground for commercial and creative opportunities.

A New Era of Cross-Cultural Collaboration

This partnership with the British Library aims to build on the success of Yuewen’s storytelling model and expand its reach to a wider, more global audience. The three-year project is structured in phases, with the official launch event set for 21 November 2024, featuring an industry-focused panel discussion. This event, supported by the China-Britain Business Council, will highlight the growing importance of intellectual property (IP) commercialisation, the unique elements of digital literature, and how writers in China and the UK are engaging with readers in innovative ways.

Kai-Chuan Chao, the British Library’s Head of Cultural and Commercial Partnerships and its East Asia lead, has emphasised the importance of the partnership for increasing the British Library’s visibility in China. “It’s challenging to reach Chinese audiences solely through traditional channels,” Chao noted, “but by partnering with Yuewen, which has a massive readership and a robust online ecosystem, we hope to engage a wider audience in a fun, accessible way.” This initiative not only aims to introduce the British Library’s collections to Chinese audiences but also foster a lively exchange between British and Chinese literary traditions.

The British Library × Yuewen Writers’ Programme

Central to this collaboration is the British Library × Yuewen Writers’ Programme, which will bring three to five prominent Chinese web novelists to the British Library each year. During their visit, these writers will participate in curated tours and exclusive workshops designed to expose them to the British Library’s vast English literature collections. The programme includes interactive sessions where the writers can draw inspiration from historical manuscripts, such as Arthur Conan Doyle’s original Sherlock Holmes works, to inform their own storytelling.

Rather than instructing these accomplished authors, the workshops aim to encourage a creative exchange where they can draw on the inspiration of classic British literature and reinterpret it in new and culturally resonant ways. According to Chao, this approach is intended to “enable [Chinese writers] to create something inspired by what they see in the Library.” This process is a meeting of literary traditions, where contemporary Chinese authors can blend their unique styles and themes with elements from classic English literature.

Engaging Readers in the UK and China

In addition to fostering a dialogue among writers, the project is also designed to involve readers in creative and interactive ways. Yuewen will host a creative writing campaign, encouraging Chinese readers to merge characters and settings from British literary classics – like Frankenstein or Pride and Prejudice. Through this initiative, readers from both countries will engage in “co-curation,” mixing protagonists from different eras, backgrounds, and cultures to create fresh, imaginative stories. This interactive approach mirrors the British Library’s mission to engage with young people and introduce them to the world of literature in a way that feels both relevant and exciting.

The Future of Literary IP Commercialisation

At the November event, experts from the IP sector, including representatives from the Conan Doyle estate, will discuss the challenges and opportunities of IP commercialisation in the UK and China, underscoring the potential for Chinese IPs to reach global audiences, and highlighting the British Library’s role in facilitating this international literary exchange.

A New Chapter in British and Chinese Cultural Relations

The British Library × Yuewen collaboration exemplifies the potential of cross-cultural partnerships to reshape literary landscapes and expand the horizons of both creators and audiences. This three-year initiative offers Chinese writers and readers access to the British Library’s prestigious resources while introducing British literary culture to China’s vast online readership. The event on 21 November is just the beginning of an exciting journey where digital literature, cultural heritage, and global readership converge.

As Kai-Chuan Chao puts it, “We can do lectures, talks, and research projects, but we want to engage with young people in a fun way.” Through this collaboration, the British Library and Yuewen are indeed reaching new audiences in an age where literature is no longer confined to the printed page but lives on screens, in communities, and across borders. This partnership promises to shape the future of literature in the digital age, fostering a rich dialogue that celebrates diversity and innovation.

Click here to register for the event on 21 November

The post British Library × Yuewen: Literature in the Digital Age appeared first on Focus - China Britain Business Council.

Internet literature in China has attracted over 500 million readers and created a rapidly expanding and lucrative commercial market both within China and beyond its borders. Through IP commercialisation, some of the most successful titles are gaining huge popularity and growing fanbases in their adaptions in different segments of the entertainment industry – from film and TV to gaming and animation.

The viral success of The Joy of Life, Nirvana in Fire, Empresses in the Palace and Candle in the Tomb TV series, which first started as online literature, heralds what the future holds. Last year, there were 29 million internet literature writers in China, attracting an audience of 550 million users. 

To celebrate the commencement of the British Library x Yuewen three-year collaboration, Literature in the Digital Age, the China-Britain Business Council is pleased to support an exclusive event about internet literature in China featuring renowned web novelist Yuewen, along with special guests from the British Library and the UK IP sector, to explore and discuss these cultural phenomena.

Click here to register for the event

Ahead of the event, we are republishing a 2022 conversation between regular FOCUS contributor author Paul French and Megan Walsh, author of The Subplot: What China is Reading and Why it Matters (Columbia Global Reports), a book that pulls together all the strands of what China is reading right now – including which authors, genres and styles are popular, as well as how Chinese audiences are reading (online, e-books, hard copy).

I think the Chinese online literature market is fascinating because we don’t really have any equivalent in Britain. Can you give us a brief overview of China’s online reading platforms, the size and scope of what they’re publishing and how many people use them?

Chinese online fiction is, in short, the largest, self-generating industry of unregulated, free-market fiction in the world, and the quality is usually pretty poor. Still, it boasts impressive statistics. There are an estimated 450 million active readers and 17 million authors vying to catch and keep “eyeballs.” Most platforms, including Hongxiu, Jinjiang Literature City (Jjwxc), Qidian and China Literature operate a pay-per-chapter system, which has created a culture of serialisation. It has nurtured a rather dog-eat-dog approach to writing, with writers often plagiarising other people’s work and deploying sloppy clickbait tactics in order to keep updating and keep people reading. Novels are cancelled if they don’t attract enough visits, while the most popular romance and fantasy titles might be snapped up for highly coveted and extremely lucrative TV, anime or gaming adaptations. 

Online platforms, the largest of which is Tencent’s China Literature, do not think of themselves as publishers, but instead IP cultivation powerhouses, in which the main aim of novel-writing is, basically, mercenary. China Literature sees itself as the new Disney, a media and entertainment behemoth that generates and capitalises on its own IP, with its own TV and movie production companies, including New Classics Media. While its growth has somewhat plateaued in China, it now has its sights set on international expansion, setting up Webnovel and Inkstone, platforms to showcase translated online Chinese fiction as well as a platform for international writers themselves — a canny move given how popular fan fiction is becoming these days. Webnovel is already very popular in the West, and mired in controversy, with poor regulations to prevent plagiarism and giving writers little opportunity to have a meaningful, individualised presence online.

It seems to me that online reading is where genre really exists in China – both familiar genres such as crime, fantasy and romance, as well as what you call “male oriented titles”, “face slapping books” and “xianxia” or immortal hero novels. Can you tell us which genres are most popular, which are unique to China, and which of them replicate what we have in the West?

The biggest overlaps between China and the West are fan fiction and teen romance. In terms of genres that are unique to China, traditional wuxia (the mythical world of martial arts heroes popularised by Crouching Tiger Hidden Dragon) and the newer fantastical realm of xianxia are the most notable. Like wuxia, xianxia novels take place in a mythic alternate reality, but it has shunned the camaraderie, moral compass and magical realism of wuxia stories and replaced it with dimension-bending worlds in which an often shameless, militantly individualistic protagonist spends thousands of chapters levelling up and smiting opponents to achieve his own immortality and omnipotence. As a result, xianxia is completely detached from reality. Often referred to as “cultivation novels,” xianxia narratives are plotted more like a computer game in which new weapons, superpowers and enemies differentiate one chapter from another. Amoral, self-obsessed hotheads are, of course, not to the taste of the CCP, who want self-sacrificing socialist heroes, and the crackdown on xianxia is already in full swing. Beyond this, there are in excess of 200 genres — things like tomb-raiding sagas, gaming or avatar-style romances and workplace politics — but created within the same climate as all the others, they tend to be deceptively, rather than thrillingly, diverse.  

Clearly, the Party is keen to see certain sorts of fiction dominate – “saints and martyrs” as you say – and are also rather distrustful and wary of online reading platforms. What’s emerging in this new, somewhat more controlled, cultural moment, and is anyone buying it?

I think the popularity and scale of online fantasies has taken the Party by surprise, and they are desperately trying to reclaim control of production and content. Several websites, in particular Jjwxc, which hosts the majority of danmei novels, have had to undergo “rectification” and commit to a higher socialist rating in terms of the content they host. The government has set up its own University of Online Fiction, devoted to realism and patriotic narratives, and commissioned “Red Stories” in which it has been claimed that superhero narratives can simply be mapped on to the stories of China’s red heroes from history. I genuinely don’t know how popular these propagandist novels will be – it is arguably one of the hardest things to gauge. The government don’t want to see its socialist heroes floundering in fact or fiction. But certainly, just as many action movies have done in the West, screen depictions of China being the world’s moral, technological and military trailblazer have been incredibly popular in recent years. Whether or not patriotism works on the page too, and I suspect it doesn’t, we are yet to see.

Are reading tastes national, or are the cities reading differently to the countryside and younger readers differently to older readers? How segmented is the market?

I genuinely don’t think I can answer with any authority, but I can say what I imagine to the be case. There is obviously still a huge divide between rural and urban residents in terms of access to quality education and opportunity. By extension, there are big differences in lifestyle for those living in third or fourth-tier cities compared to those in Shanghai, Beijing and Guangzhou. It wouldn’t surprise me to find out that those with less economic mobility and perceived cultural capital were more likely to be drawn to escapist fantasies, while self-help titles dominate reading habits in the bigger cities. Many fantasy readers refer to themselves with a degree of ironic pride as diaosi (variously translated as “penis hairs” or “losers”); they are only too aware of the stark difference between the superheroes and irresistible heroines they read about and their own lowly status. But this is, of course, all relative. Young people who fail to ace the gaokao and get a high-earning job in Shanghai are also likely to feel the strain, and seek consolation in fiction, in computer games, in movie theatres.

In many ways, the internet has democratised reading tastes in a way that wasn’t imaginable even ten years ago. The internet has meant that a steel worker can make money writing fiction by night, and it has nurtured the growing trove of wonderful migrant worker poetry published on various online platforms that, steeped in cultural and literary references, suggest that many of these apparently “uncultured” rural workers are in fact better read than the urban elites who invariably binge trashy fiction on their daily commute. As far as the older generations go, the literary types are incredibly well versed in both Chinese and translated world fiction, but have a penchant for social realism. Ge Fei wrote an interesting novella called The Invisibility Cloak (translated by Canaan Morse) about the few middle-aged eccentrics who go against the flow, whilst everyone else is moving in the same, homogenising direction of wanting more money and more stuff. If there were to be a national taste, the restless desire to change one’s fate at this time of economic ascension, either through hard work, graft or idle fantasy, has probably had the biggest impact on the kinds of books people are reading and writing. 

What or who are you reading right now? Can you suggest a few books to us, preferably translated, that are useful for getting a handle on contemporary Chinese literary tastes? 

For a mix of titles reflecting various aspects of Chinese literary (and not so literary) culture, you could try combining something like The Day the Sun Died by Yan Lianke (trans. Carlos Rojas), Iron Moon: An Anthology of Chinese Migrant Worker Poetry (trans. Eleanor Goodman), I Shall Seal the Heavens by Er Gen (trans. Death Blade), Grandmaster of Demonic Cultivation by MXTX, In the Name of the People by Zhou Meisen (trans. Emily Hein), A Perfect Crime by A Yi (trans. Anna Holmwood) and Invisible Planets: 10 Visions of the Future from China (trans. Ken Liu). 

The post The rise of internet literature in China appeared first on Focus - China Britain Business Council.

China’s Ministry of Industry and Information Technology published the 14th Five-Year Plan for Information Communication Development in November 2021, following on from the national 14th Five-Year Plan. The macro trend for technology in China is to focus on digital transformation: the mainstream integration of intelligent technology throughout industry to increase efficiency and align development with the 14th Five-Year Plan.

Digital transformation affects operations, business models, and the B2B and B2C customer experience, and whether directly or indirectly, is a key part of the value proposition that the UK can offer China through our vibrant tech and digital sectors.

China is one of the world’s fastest-growing digital technology markets with over 900 million internet users and a growing cohort of leading ‘frontier technology’ companies operating in key growth areas such as big data and AI. In 2021, the value of China’s digital economy reached RMB 47.94 trillion, and by 2025, it is expected that the digital economy will account for 10% of China’s total GDP, increasing from 7.8% in 2020. The integration of intelligent technology has expanded into many areas of business and has presented an array of new opportunities for British companies to support transformation and growth across China’s digital economy. Opportunity areas include software, fintech (including cross-border transaction solutions, reg-tech, wealth management, underwriting and risk assessment, and insure-tech), software as a service (SaaS), and ed-tech.

China also presents a unique set of challenges to navigate for UK businesses investing in this sector , and in the past year, the Chinese government has introduced several new regulations such as data security and personal information protection laws that have required companies to take appropriate actions to manage data in China. There is however, still a growing consensus amongst UK companies, many of which sit at the forefront of the data industry, that these new laws provide a sound and stable framework for businesses to operate within.

Moreover, the UK is still a key partner for China and is ranked third globally for investment in emerging technologies such as AI, robotics, IoT and cybersecurity – accounting for 15% of all investment into the technology sector. Together with the support from the British Government on the development of the industry and its regulatory environment the UK, will continue to be an attractive partner to work with. Frontier technologies such as robotics will continue to play an growing role in both the UK and Chinese economies, and it is likely that businesses will continue to utilise these technologies to improve the delivery of services to their respective customers.

What opportunities are there for collaboration in the digital economy?

It is predicted that digital transformation will be the biggest single contributor to China’s GDP growth over the next five years. Significant opportunities exist for UK tech firms to assist clients in the manufacturing, banking, healthcare and agriculture sectors with their digital upgrading.

Green tech, sustainability and smart Cities
China is increasingly deploying tech to face the considerable environmental challenges it faces. A growing focus on green tech is driving investment in electric vehicles and smart cities, with the aim of reducing emissions and creating a cleaner, greener environment.

Consumer tech
With a middle-class numbering 400 million and over 900 million internet users, China is a vibrant and fast-growing market for consumer tech. From lifestyle apps, VR and wearables, to digital health, educational software and media streaming services, there are many opportunities to serve the consumer market.

Software
China’s software sector has seen significant growth in recent years, quadrupling its value from RMB 2,479 billion in 2012, to RMB 9,550 billion less than a decade later in 2021.

Chinese buyers are increasingly focused on software performance over price, but many sectors and applications are not yet fully served by local vendors, thus creating opportunities for international software providers. These opportunities span a range of sectors and application areas, including business analytics, system-on-chip applications, finance, healthcare, and the IoT.

Fintech
China is a world leader in digital payments, with 853 million users of mobile payment methods, 74% of whom make payments every day. The financial services sector is in the process of continual liberalisation as it evolves to meet the increasingly sophisticated needs of its consumers, and with the UK as a global leader in fintech, British firms are increasingly finding opportunities for collaboration in areas including:

• Cross-border transaction solutions: Chinese firms can find it difficult to receive and make cross-border payments. This means there is strong demand for payments, foreign exchange, trade finance and other transaction solutions.
• Regtech (aka regulatory technology): There is growing demand from Chinese companies for platforms that can provide compliance and risk assessment technologies.
• Wealth management: Chinese banks and brokers are looking to international firms to help develop wealth management and trading platforms.
• Underwriting and risk assessment: As China continues to develop its credit rating system, and as the insurance market grows, there will be opportunities for foreign companies to participate in these areas.
• Insuretech: With increasingly diverse insurance products on offer, risk control and data management services are required in China.

SaaS
China’s software as a service (SaaS) sector has experienced rapid growth in recent years and, by 2023, is expected to be ten times the size it was in 2015 – from RMB 5.53 billion to RMB 55.51 billion. Despite this, the SaaS market in China remains relatively small in international terms, currently accounting for less than 10% of the global market.

Growth in the take-up of SaaS in China is driven in part by the country’s increasing embrace of cloud computing, with it now having a market for cloud computing that is second in size only to that of the US globally.

EdTech
Edtech is developing rapidly in China and opportunities for the UK are most apparent in apps, audiovisual software, intelligent toys, robots, assessment software, professional development software, campus security systems, staff and information management software and AR/VR technology.

Case study: CBBC Member successes in localisation

For British companies operating in China, there is growing recognition of the need to localize their approach either through investing into dedicated R&D centres or by entering into partnerships or joint ventures with local digital technology or big data companies to combine their respective strengths.

For example, the UK’s largest IT technology company, MicroFocus, entered a joint venture in Shandong with local partners in 2020. This new venture, established through the support of CBBC, combines the resources of three partners to provide cloud-based testing service for SaaS software leveraging MicroFocus IP with local big data and technology.

Wireless Logic has teamed up to form a joint venture with China Mobile to develop connected autonomous vehicle technology – again, combining their respective strengths in technology with local partners worldwide which have access to big data.

Joint ventures proved to be an effective form to leverage foreign technology and knowledge with local content and market. In the past 40 years, RELX, a UK analytics firm, has formed over 10 joint ventures in China. Its exhibition division RX has six JVs in China. KeAi, its JV in the STM publishing industry, has developed into a top Open Access journal publishing business in China, with more than 130 high-quality STM journals in the past 15 years.

How CBBC is supporting the bilateral development of the digital economy

In response to the growing demand for engagement between UK business and our partners across Government and local business here in China, CBBC has launched a digital and data working group. The group will consist of leading British data and technology companies, focus on addressing the various regulatory obstacles, and support the development of new initiatives such as pilot projects and commercial partnerships.

The working group was announced as a key outcome of the June 2022 meeting between the ministers of the UK’s Department for Business, Environment and Industrial Strategy (BEIS), and China’s Ministry of Industry and Information Technology (MIIT).

CBBC’s Data & Digital Working Group will strive to promote greater collaboration between the UK and China on digital economy based on the following three core pillars:

• Advocacy: Form a single voice for UK business to advocate to the ministries, regulators and relevant departments of the Chinese Government responsible for developing China’s digital and data economy. Through this engagement, the working group will seek to become the leading group for Chinese government bodies to consult when seeking input on related policy, regulation and guidelines.
• Cooperation: Promote cooperation between UK-China business and Government in the digital and data economy including commercial partnerships, joint research, draft regulation, and other forms of collaboration. Although membership will be limited to CBBC members, the working group will aim to engage a broad range of stakeholders including international and local businesses as well as third country governments.
• Information sharing: Become the leading platform for information sharing in the UK-China data and digital governance and commercialisation.

If you would like to find out more or get involved, please contact Mark Xu (mark.xu@cbbc.org)

As the role of frontier technologies expands in the UK, China and globally, new opportunities will continue to emerge for growth. IP will, of course, underpin much of this activity as companies look to leverage new and existing technologies together with the growing pools of data. It is, however, critical that Governments remain focused on encouraging innovation and provide a supportive regulatory environment for business to succeed.

CBBC will continue to facilitate engagement between UK business and our partners here in China to help overcome obstacles and support the development of new partnerships.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research and analysis services can provide you with the information you need to succeed in China.

The post How the UK can help China’s digital transformation appeared first on Focus - China Britain Business Council.

Chinese offices have been promoting the application and use of electronic chops (e-chops) and electronic business licences since April 2020. This change implies that hard copy company certificates, including business licences, could soon become history. However, complications can arise if a company’s representatives need to complete real-name verification before applying for and using electronic documentation.

In this article, Hawksford introduces the most common scenarios where foreign companies operating in China need to complete real-name verification for legal and financial representatives. The article also details the application procedure for e-business licences and e-chops to help foreign-invested enterprises (FIEs) make a seamless transfer to digital when establishing a business in the Chinese market.

About e-business licences and CA certificates

Certification Authority (CA) certificates are commonly issued by the State Administration for Market Regulation (SAMR) in the form of USB keys, and used for bookkeeping, tax declaration and annual reporting purposes. However, as of 1 April 2021, the Shanghai SAMR stopped issuing CA certificates, and all newly-established companies must now apply for the so-called e-business licence, which is necessary for tax declarations and annual reporting. In Beijing, e-business licences have been issued already starting last year, while in other cities they are not yet applicable. E-business licences have the same legal effect and functions as hardcopy business licences and can be used in most aspects of the company’s compliance operations.

Below are the most common scenarios where legal and financial representatives require real-name verification.

E-business licence application

Legal representatives must complete real-name verification in order to obtain an e-business licence. If the legal representative is a foreigner, they may visit the local SAMR office in person for onsite real-name authorisation. Alternatively, a foreign legal representative may authorise a local Chinese person to apply for the e-business licence by signing a confirmation letter and providing their (the legal representative’s) email address. A legal representative may use the e-business licence themselves, or authorise a maximum of five Chinese individuals to manage the licence.

A foreign legal representative may authorise a local Chinese person to apply for the e-business licence by signing a confirmation letter and providing the legal representative’s email address

Applying for and using e-chops

Under PRC regulations, e-chops may be used in the following scenarios:

• The signing of contracts, agreements, resolutions, or any other documents where the counterparty or the company itself accepts an e-chop that is legitimate under PRC laws
• At the Bank of Communications in Shanghai as part of a pilot program for opening bank accounts
• In the (near) future: for company set-up registration, tax-related matters, social insurance and housing funds

Online application for and verification of e-chops can be completed via Shanghai governmental or semi-governmental systems. These systems also cover functions such as e-company chop management and formal filing with the Public Security Bureau. However, only the “company chop” and the “financial chop” (under limited circumstances) can be generated electronically and verified online.

In order to apply for an e-chop, a company must first obtain an e-business licence or a CA certificate. Therefore, the real-name verification of the legal representative, as stated above, will also be required when applying for an e-chop.

Opening a bank account

Almost every bank in China requires legal representatives to complete real-name verification by asking them to visit the bank personally and show their passport/ID card in view of the bank’s CCTV cameras. Alternatively, bank officers may visit the SAMR-registered office of a company and take photos with the legal representative or call or take a video with the legal representative to confirm their intent to open a bank account.

A legal representative should also have a personal Chinese mobile number under their name in order to receive calls and messages from the bank. Failure to do so may cause you to have to repeat real-name verification. Some company changes that need to be registered with the SAMR, such as relocation or a change of legal representative, may also make it necessary for the legal representative to repeat real-name verification at the bank.

Tax registration

In order to further optimise the effectiveness of public tax services and prevent or mitigate the risks of tax law enforcement, the tax authorities in China are actively promoting real-name verification at different stages of the taxation process.

The tax agent of a newly established company will need to conduct real-name verification at the tax bureau in order to verify the company’s fapiao type and obtain fapiao and a tax U-key for future tax operations.

Both Chinese and foreign legal representatives and finance personnel are required to conduct real-name verification to activate an e-business licence and other functions of the online tax platform. Examples include:

• Chinese legal representatives/finance personnel may conduct real-name verification online or visit the tax bureau, while foreign legal representatives/finance personnel must visit the tax bureau with their passport to complete the real-name verification process
• Considering the impact of the Covid-19 pandemic, some foreign representatives may not be able to visit China to complete the real-name verification process. Some local tax authorities have chosen to send a text message with a verification code to the foreign legal representative’s/finance personnel’s Chinese mobile number for temporary verification purposes

Business operation

Company representatives must carry out real-name verification before handling any operational tax matters, e.g., applying for an extra fapiao amount. Failure to complete real-name verification may lead to slower dealings with the tax authorities in processing the company tax matters.

Integrated tax administration relies on verified real-name taxpayer information. Some local tax authorities may also have individual measures in this regard. From a compliance perspective, it is strongly recommended that legal representatives or finance personnel perform real-name verification as early as possible to facilitate future tax operations.

The post China’s move towards e-chops and real name verification appeared first on Focus - China Britain Business Council.

When talking about Business to Business (B2B) marketing, there are several things to consider.  How can businesses effectively acquire new leads and grow their customer base when traffic costs are increasing each year? How to prioritise the high value leads for sales teams to follow up on in order to increase the conversion rate? And how to reach the end consumer and receive feedback data in order to help increase the effectiveness of marketing, for both the brand and the channel partners?

When it comes to growth, we often think of  ‘explosive growth’ or ‘exponential growth’. However, these phrases will rarely apply to B2B marketing since the B2B salesperson will need to convince several people in the potential client’s organisation before the deal can be closed. The decision making journey of B2B clients is usually much longer than that of B2C consumers.

It is worth noting that growth is not merely about new user acquisition. Instead, the nurturing of existing leads with the aim of converting them further down the line should also be a focal point of B2B marketing. Thus, a full set of solutions based on solving the problems encountered by the clients is needed.

The decision making journey of B2B clients is usually much longer than that of B2C consumers

Getting the clients to understand and become aware of the B2B business is already a challenge. That being said, just because the potential client does not pay for the services now, does not mean that there is no hope for conversion later on. In fact, reasons for an initial rejection could include a divided decision-making team, a long procurement cycle, insufficient budget, or any number of other reasons. When these situations occur, B2B marketers should continue with their efforts, ensuring that their company is placed at the top of the potential client’s provider list once the demand is triggered again in the future.

How can B2B companies differentiate between leads and prioritise them according to which ones should be focused on? Generally speaking, a suggestion is to classify the B2B leads according to their level of awareness of the B2B company’s products or services. By looking at what stages the potential clients are at currently (e.g., initial research vs. actively looking for solutions), the different channels through which they were introduced to the B2B company (search engine, social media, referrals) and what kinds of actions they have taken involving the B2B company (downloaded their white paper, conducted initial conversations, watched training session), the B2B companies can then classify their potential clients. After prioritisation of the leads, B2B marketers can plan and execute targeted marketing strategies for a predetermined purpose (increasing brand awareness or sales conversion).

For instance, content pushed to different groups of viewers can be categorised: those who followed the B2B business’ own media account through an offline brochure at a trade fair may want more brand and product information, while those who followed the same owned media account and sent messages to the brand after having read through the information already provided may need a more direct approach, such as a campaign invite or a problem-solution case study.

By utilising a Social CRM that connects together every digital touchpoint (social media, website, e-commerce store, CRM), B2B marketers can get a clear view of every user that has come across their company through digital marketing.

Call-to-actions for the different touchpoints and scenarios should also be customised based on the level of previous engagement the B2B company has had with the potential clients. The difficulty encountered here is to differentiate the audience based on their feedback and behaviour towards previous marketing activities.

Traditionally, a B2B company would ask the salesperson to do this manually after communication with the client by entering their encounter into a Customer Relationship Management (CRM) system. This process however takes time and effort, as the salesperson has to manually mark each lead in the system.

As social media has become more widely used among businesses, B2B companies are also starting to push ongoing content to all of their stakeholders and followers of their accounts. In addition to the ongoing content, limited micro-level management of each follow can also be implemented to categorise them and understand who each follow is, what they want and whether the B2B company should develop a targeted marketing strategy for converting their followers into leads.

Today, marketers can recognise the level at which each lead is located in the conversion process using marketing automation technology. By utilising a Social CRM that connects together every digital touchpoint (social media, website, e-commerce store, CRM), B2B marketers can get a clear view of every user that has come across their company through digital marketing.

By tracking the behaviour of the users (including whether they’ve followed the B2B company’s account, read its content pushouts, liked or shared its content, watched its livestreaming sessions, downloaded its whitepapers and so on), the users can be scored according to viability, after which the manager of the Social CRM can then rate and prioritise the individual leads, categorising them into different groups for future targeted content marketing and more customised call-to-actions based on future marketing activities.

In this way, a B2B company can not only improve the user experience through the implementation of strategic marketing after gaining more information on the target audience, but can also more closely and effectively connect the marketing and sales departments within the organisation.

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