In this fifth instalment, Haleon talks to FOCUS about China’s consumer health industry and how our health as individuals can’t be separated from the future health of the planet.

Tell us how and when Haleon entered the China market…

While Haleon is still a young company, our history in China dates back 35 years. Our products have served hundreds of millions of Chinese consumers for over three decades. With a unique purpose of delivering better everyday health with humanity, our brands are trusted by consumers and recommended by healthcare professionals. 

What major successes and growth have you had during this time?

We have established a broad product portfolio covering oral health, pain relief, respiratory health, skin health and vitamins, minerals and supplements. Over the past three decades, our category-leading brands, such as Caltrate, Centrum, Sensodyne, Polident, Contac, Fenbid, Voltaren and Bactroban, have been trusted by millions of Chinese consumers. We have three manufacturing sites in China serving both the Chinese and international markets, as well as a global R&D centre based in Suzhou.

Haleon achieved a 9% global organic revenue growth in 2022, with a healthy balance of both price and positive volume/mix. In China, our brands such as Caltrate and Voltaren continued to see strong growth with mid-to-high single-digit growth. At the same time, Haleon’s e-commerce business in China grew significantly, by 40%.

We not only pursue business success, but also strive to practice corporate social responsibility in multiple dimensions, including environmental protection and health inclusivity. Our Suzhou plant achieved carbon neutral status for the year 2021, becoming the first carbon neutral company in China’s consumer health industry. Moreover, we have launched several social responsibility programs dedicated to making every day health more inclusive, more achievable and sustainable, such as the Bone Health in China campaign launched since 2012, focusing on osteoporosis prevention and treatment.

Haleon’s Suzhou plant

What are your thoughts and reflections on the Chinese market today?

China is one of the most important markets for Haleon. We see China evolving quickly with rising demand for quality, and combinations of new trends such as e-commerce, sustainability, diversity and demographic changes that will provide multinational companies with tremendous space for further development. 

We recognise that to run business well, we need to understand the local market well. For example, compared with other markets, China has some unique consumer behaviours; omni channel shoppers and new and emerging social commerce platforms are growing extremely rapidly, for example. Digital health and technology are also demonstrating increasingly strong growth.

How has CBBC supported you during this time?

Since its establishment, CBBC has positioned itself on the centre stage of UK-China bilateral trade and investment. It strives to shape a more favourable environment for British companies doing business in China, including Haleon. 

CBBC’s close links to the UK and Chinese governments at each level, as well as its track-record of facilitating constructive engagements with influential stakeholders, have benefitted its member companies. 

In addition, CBBC also takes advantage of its expertise and insights to provide services to us vis-à-vis market advice, policy analysis, access advocacy from their unique perspectives. In a nutshell, Haleon has benefited from CBBC’s service in supporting our commercial success here in China. 

What are your ambitions and plans for the future in China? 

China is one of the most important markets for Haleon, and our consumer health business has been deeply rooted in the Chinese market for decades. 

Moving forward, we will continue to leverage our strengths of trusted science, deep human understanding and digitalisation to drive innovation and embrace the Chinese market based on China’s local needs and better empower Chinese consumers’ everyday health.

Haleon recognises that our own health and the health of our planet are inextricably connected and therefore has made a commitment to sustainability by reducing carbon emissions, making our packaging more sustainable and circular, sourcing, using and disposing of our ingredients responsibly, and reducing water and waste usage in manufacturing. We aim to reduce our net Scope 1 and 2 carbon emissions by 100% and our Scope 3 carbon emissions from source to sale by 42% by 2030; and will develop solutions for all product packaging to be recycle-ready by 2025.

What do you think China will look like in another 50 years?

We are very excited and confident about the future of the Chinese market. From our perspective, as the Chinese market opens up to further high levels, Chinese consumers’ demands for everyday health will increase, becoming more sophisticated and diversified.

In addition, with the achievement of the Healthy China 2030 and Double Carbon goals, China is poised for great success in improving healthcare accessibility and green transformation in the near future.

Haleon looks forward to continuing to contribute to the development of China over the next 50 years. We will also leverage Haleon’s unique strengths to play a key role in the fast-growing field of consumer health and better serve the daily health of the Chinese people.

The post In Conversation with Haleon appeared first on Focus - China Britain Business Council.

In this fourth instalment, Corporate Relations Director of Diageo Greater China Lin Fou-Menuhin tells FOCUS how the company has been promoting positive drinking, championing inclusion and diversity, and pioneering grain-to-glass sustainability.

Tell us how and when Diageo entered the China market …

We established our China business in 2002 and over the years we have developed an outstanding portfolio of international and local premium beverage alcohol brands in China, ranging from Scotch whisky and gin to vodka, liqueur, rum, beer and Chinese baijiu. However, our iconic Scotch brand Johnnie Walker actually first appeared in China as far back as 1910.

Today, China is one of Diageo’s top three global strategic markets. We will continue to stay at the forefront of Chinese consumer insights and trends, innovating and developing quality products that cater to Chinese consumers’ tastes.

What major successes have you scored during this time, and how has the company grown?

Over the last few years, Greater China has increased from 2% to 5% of our global net sales. In the first half of the 2023 fiscal year, Greater China net sales grew 2%, driven by Scotch with strong performance in the super-premium-plus segment.

We are rapidly expanding our strategic footprint in China and have made a series of investments to better serve the growing market:

• In May 2021 we established a regional logistics hub in Shenzhen to service China and the Asia-Pacific region.
• In September 2021, we announced plans for a new R&D Centre in Shanghai to strengthen our ability to innovate and develop premium products for the China market.
• In November 2021, we broke ground on the Diageo Eryuan Malt Whisky Distillery in Yunnan Province and construction is well underway. The distillery will be carbon neutral in operations and will produce the highest quality China-origin whisky.

Our 10-year sustainability action plan, “Society 2030: Spirit of Progress”, which focuses on promoting positive drinking, championing inclusion and diversity, and pioneering grain-to-glass sustainability, underpins our sustainable business strategy.

Last year, we also launched a positive drinking month promotion campaign that successfully attracted 585,423 users to visit Diageo’s DRINKiQ website (Diageo’s flagship responsible drinking programme). In addition, over 47,630 people completed the Wrong Side of the Road test, raising consumers’ awareness of the dangers of drunk driving.

We are also developing China-based regional centres of excellence (CoE) in key functions to ensure that we have the talent and organisational muscle to drive business growth in China and Asia Pacific.

What are your thoughts and reflections on the Chinese market today?

The overall alcoholic beverage market continues to grow across all categories in China. While international spirits is the fastest-growing category, it still only represents around 3% of the total market, presenting a clear opportunity for Diageo.

At the same time, baijiu plays an important role in China’s unique alcohol culture. Diageo is currently the only international beverage alcohol company to participate in the dynamic baijiu sector, and we are very proud of our involvement with the iconic Shuijingfang brand. As a result, our diverse product portfolio can cater to different consumer demands, occasions and tastes – from Scotch whisky to baijiu and from premium beer to white spirits such as gin and tequila.

Our Chinese consumers are becoming more adventurous and willing to experiment with new products and brands. They are increasingly choosing brands that offer superior quality, authenticity and taste as they pursue a better quality of life. They are also increasingly sophisticated and interested in the culture and heritage of our products.

We have witnessed the rapid growth of e-commerce and digitalisation in China, which is enabling us to deepen our market penetration and make our products more accessible for Chinese spirits connoisseurs.

How has CBBC supported you during this time?

CBBC plays an important role in promoting trade and partnership between the UK and China, helping shape bilateral relations and promoting the interests of businesses, which has facilitated our strategic investment and growth in China. For example, in 2021, Diageo CEO Ivan Menezes, as a representative of senior British business leaders, attended a virtual meeting with Premier LI Keqiang organised by CBBC and the China Council for the Promotion of International Trade (CCPIT), and showcased Diageo’s determination to participate in the development of a healthy bilateral relationship.

CBBC is an important partner for Diageo China. It provides us with cutting-edge local market intelligence, supporting our ability to rapidly identify new and emerging trends and innovate at pace.

What are your ambitions and plans for the future in China?

We remain very optimistic about the China market and confident about double-digit accretive growth in China for international spirits and baijiu.

We will continue to increase our strategic footprint through a series of “in China for China” initiatives. For example, the development of our Eryuan Whisky Distillery is now well underway, which will bring China into the centre of the global whisky conversation.

Meanwhile, we will continue to expand our local innovation and production capabilities and develop innovative products that satisfy Chinese consumers’ diversified demands.

We are also committed to ensuring that our sustainability and ESG strategy aligns with China’s own high-quality development goals, be they industrial, social or environmental, and we look forward to continuing to work with local partners, industry peers and organisations such as the China Alcoholic Drinks Association (CADA) to support China in its goals to improve quality of life, facilitate sustainable development and optimise the business environment.

What do you think China will look like in another 50 years?

We are still only at the beginning of a very exciting journey in China, and over the next 50 years, we expect that the country will contribute tremendously to the growth of the alcoholic beverage industry worldwide.

We expect that China will continue to open up and pursue high-quality development, and that consumers will continue to seek higher levels of quality consumption, further boosting an already vibrant consumer market and continuing the trend of premiumisation.

China has set ambitious targets through its “dual carbon goals”, and in the run-up to 2060 in particular, we can expect China to make significant achievements in the green transformation of its industries, in addition to continuing to be a leader in innovation, science and technology.

As we celebrate 50 years of diplomatic relations between the UK and China, we look forward to continued cooperation, particularly in the areas of trade, exchanges and the environment.

The post In conversation with Diageo: Changing tastes in China’s alcohol market appeared first on Focus - China Britain Business Council.

In this third instalment, Unilever reflects on using cutting-edge R&D to develop products that not only benefit the lives of Chinese consumers but have also been adopted around the world.

How and when did Unilever enter the Chinese market?

Unilever first came to China early in 1923, when we established the largest soap factory in the Far East in Shanghai – 2023 marks the 100th year since Unilever’s investment in China. We were also among the first batch of multinationals to enter the Chinese market after reform and opening up in the 1980s. Over the past century, Unilever has grown alongside the Chinese people, providing products and services to its 1.4 billion consumers, and witnessed and contributed to the development of the country’s consumer goods industry. We are devoted to delivering a  better life to people around the world.

What achievements and developments has Unilever enjoyed in China?

To date, we have invested more than $3 billion in China. Over the past 30 years, we have set up our North Asia Headquarters and one of our global R&D centres in Shanghai, established eight production bases, and operated more than 40 well-known brands in China, providing cleaning and health products and services to more than 150 million households. Today, China has become one of our top three key global growth markets.

Below are some of the achievements we are most proud of in specific sectors:

R&D and Innovation
In 2009 we launched our sixth global R&D centre in Shanghai, with an investment of over $100 million and a staff of nearly 400 R&D personnel from 12 nations. Backed by its huge R&D manpower reserves and the world’s most cutting-edge R&D facilities and experimental equipment, the Shanghai R&D centre has achieved a great wealth of patented technologies and R&D outcomes and developed many innovative local products that have been a hit with Chinese consumers. Many of the centre’s achievements have been recognised and adopted in foreign markets.

Regenerate toothpaste products developed by Unilever’s Shanghai R&D centre

For example, after ten years of research, the Shanghai R&D team launched a groundbreaking new product in the toothpaste industry, Regenerate NR5TM, a bio-mineralisation technology that can repair enamel minerals.

Intelligent Manufacturing
Unilever has a complete industrial layout in China, with eight production bases and logistics centres across the country and large comprehensive production bases placed in the eastern Yangtze River Delta region, the northern Beijing-Tianjin-Tangshan region, the western Tianfu New Area, and the southern Pearl River Delta region. We are continuing to improve the flexibility and efficiency of our supply chain by upgrading our digital and intelligent capabilities. To date, three of our factories in China have been recognised by the World Economic Forum’s Global Lighthouse Network.

Zero Carbon Vision
Driving superior performance with purpose-led, future-fit business is the Unilever Compass. It is our goal to achieve high-quality and sustainable growth. Over the years, we have worked actively with upstream and downstream partners to help improve the health of the planet, improve people’s health, confidence, and well-being, and contribute to a fairer and more socially inclusive world. For example, our Hefei HB factory and the Truliva factory in Ningbo received “Six-star Zero-carbon Factory” certification, while the “Go Green Go Lux” project has been protecting the Sanjiangyuan region and improving the lives of the residents for more than 10 years.

What are your thoughts and reflections on the Chinese market today?

The once-in-a-century changes we are facing today are putting pressure on the globalisation of multinational companies, but China’s actions in further opening up its market and improving the business environment have given confidence to the multinational companies operating in the country.

Unilever has been serving Chinese consumers for 100 years, and we are starting off our next 100 years with determination and careful planning; our commitment to the Chinese market won’t change due to short-term changes in the environment. Multinational companies are an important part of China’s reform and opening up. Using foreign investment to promote development is one of the country’s national policies.

What are Unilever’s ambitions and plans for the future in China?

Unilever is continuing to expand its industrial layout in China. In 2022, we completed the construction of the RMB 1 billion Taicang ice cream factory. In the same year, we began the construction of a new factory in Guangzhou. With nearly RMB 2 billion invested, the Guangzhou factory will be our first full-category production base in China, covering the production of personal care products, food, and ice cream. Relying on the geographical advantage of the Guangdong-Hong Kong-Macao Greater Bay Area, it will satisfy internal demands and supply overseas markets when completed.

Moreover, in responding to China’s carbon peaking and carbon neutrality goals, we will carry out more environment-friendly projects to help improve the health of the planet. Sustainability will continue to be a principle we follow throughout the whole process of our business, and we will continue to embrace digital and innovative technologies to provide a better consumer experience and create bigger value for the industry.

Unilever’s Hefei Industrial Park has been recognised by the World Economic Forum’s Global Lighthouse Network

What do you think China will look like in 50 years?

As mentioned in the report of the 20th Party Congress, China aims to achieve socialist modernisation by 2035. As China heads towards this encouraging goal, Unilever is starting a new 100 years in the country. The future ahead will be a picture of Unilever and China walking and growing together. We will remain committed to the Chinese market and, more importantly, do our part to contribute to its modernisation drive.

With the disruption of 2022 now behind us, the China-Britain Business Council is excited to share the newly confirmed dates for our celebration of 50 years of UK-China Ambassadorial Relations dinner receptions in Beijing and Shanghai.

The Beijing dinner reception will be held on Tuesday 21 March 2023 at the Intercontinental Sanlitun and will be attended by senior officials from China’s central government, ministries, and regulators along with municipal and provincial leaders. Learn more about the dinner in Beijing here.

The Shanghai dinner reception will be held on Tuesday 28 March 2023 at Intercontinental Jing’an and will be attended by senior representatives from municipal and adjacent provincial government organisations.

The dinner receptions are an ideal opportunity for our members to engage with CBBC’s network of senior contacts in both the Chinese and UK Governments as well as key local enterprises.

The post In conversation with Unilever: 100 years in the China market appeared first on Focus - China Britain Business Council.

In this second instalment, we speak to David Guo, Chief Executive Officer of Schroder Investment Management in China, about opportunities for investment in a post-Covid China in 2023 and beyond.

Can you please tell us how and when Schroders entered the China market?

We set up our first representative office in Mainland China in Shanghai in 1994. Over the past nearly 30 years, we have adopted a systematic approach to business development in the Chinese market. First, we have leveraged our strengths as a global asset manager to meet diversified investment needs in the local market. Secondly, we have made continuous efforts to explore and develop our business scope and investment capabilities in China and provide Chinese investors with one-stop wealth management services. As one of the first international asset managers to enter the Chinese market, we have always actively responded to China’s financial opening-up policy and built strengths in relevant business segments.

As early as the 1860s, the firm of J. Henry Schroder & Co. was trading in tea and silk from China and was providing financial services for clients who had import and export business with China

What major successes and growth have you had during this time?

Despite the uncertainty that has shrouded the international financial market in recent years, Schroders has made some major progress in the China market. In February 2022, we set up our second joint venture with Bank of Communications, Schroder BOCOM Wealth Management Co., Ltd. As the third Chinese-foreign joint-venture wealth management company in China, this marked our formal foray into the bank wealth management market and wealth management services in China.

In January 2023, we were pleased to receive the China Securities Regulatory Commission’s approval for the establishment of our wholly-owned public fund management company (FMC), which is currently in steady progress with business preparation before regulatory onsite inspection. The WFOE FMC will allow us to deliver our global strengths in China in a complete manner.

What are your thoughts and reflections on the Chinese market today?

In the short term, we expect to see signs of China’s economic recovery in its economic data for the first half of 2023. Structurally, domestic demand (real estate and its industrial chain, as well we consumer goods and services) may replace exports as the primary driver of economic growth. With the rise in global interest rates expected to be near an end, we believe that global capital will flow back to emerging markets, China being an appealing region among them.

In the medium and long term, we expect that China will shift from scale-based growth to high-quality growth. In recent years, the government has put a lot of effort into to guiding the economy towards high-quality growth. This will be a long process that requires patience, but we have seen many positive signs.

Considering China’s lead over Europe and the US in the current economic cycle (China is recovering amid recessions in Europe and the US in the first half of this year), we expect global capital to flow back into China and drive the valuation recovery of Chinese stocks. Manufacturing upgrading and domestic demand recovery are the most promising directions in our view.

We believe that the commitment to and intensity of emissions reduction, especially in developed economies, should not be underestimated, and that a decline in demand for relevant equipment may not materialise next year as expected. Manufacturing upgrading is crucial for China’s entry into high-income countries and is also in line with China’s policy guidance. Domestic demand recovery mainly refers to the real estate industrial chain and consumer services, where relevant industries have just started their recovery journey with more accommodative policies.

How has CBBC supported you or British businesses during this time?

CBBC has always been a valuable source of help and support for our business development in China and has witnessed our rapid growth in the market. In the context of China’s significantly accelerated financial opening-up, CBBC has actively approached us to find out more about our vision for business development in China and the challenges that we may face, and has helped facilitate our communication with China’s regulators and government officials and enhance the trust and mutual rapport between British companies and the Chinese government.

In addition, CBBC has organised roundtable dialogues on topics of importance for the Chinese government, such as pensions and ESG. Such occasions provide an opportunity for us to share our inputs while also allowing us to be better informed about China’s regulatory developments and approaches so that we can plan our business accordingly to be better aligned with China’s strategic development goals at the national level.

What are Schroders’ ambitions and plans for the future in China?

Schroders is a financial institution with a history of more than 200 years that has always stayed abreast of the times. With China’s continued financial opening-up, we will leverage the synergy of our multiple onshore business units to provide more investment options for overseas markets and the Chinese market and bring new investment concepts and products to Chinese investors.

First, we are eager to bring more overseas experience to China and evaluate the elasticity and value of China assets from a global perspective. Secondly, we will draw upon our global investment research network and investor relations platform to provide global asset allocation help for domestic investors. Thirdly, as a sustainable investing pioneer, Schroders has a proprietary sustainability assessment framework and tools, and has embedded ESG considerations throughout the investment process. We look to share our experience and specialised knowledge with our partners in China and conduct further dialogues and cooperation with them on ESG best practices, investment strategies, and products.

It merits noting that we are encouraged by the launch of China’s personal pension plan and by China’s determination to establish a robust pension product market. Pension investment is also a key field prioritised by Schroders in China. We will leverage our rich experience gained from managing pension products in overseas markets to play a constructive role in the development of China’s pension fund ecosystem. We are strongly positioned to serve China’s third pillar pension market through our China offices.

We have confidence in the growth of the Chinese market, which has always been a high-priority market for Schroders. Here, we will continue to step up our presence and bring more of our global resources and strengths for the development of China’s asset management industry.

With the disruption of 2022 now behind us, the China-Britain Business Council is excited to share the newly confirmed dates for our celebration of 50 years of UK-China Ambassadorial Relations dinner receptions in Beijing and Shanghai.

The Beijing dinner reception will be held on Tuesday 21 March 2023 at the Intercontinental Sanlitun and will be attended by senior officials from China’s central government, ministries, and regulators along with municipal and provincial leaders. Learn more about the dinner in Beijing here.

The Shanghai dinner reception will be held on Tuesday 28 March 2023 at Intercontinental Jing’an and will be attended by senior representatives from municipal and adjacent provincial government organisations.

The dinner receptions are an ideal opportunity for our members to engage with CBBC’s network of senior contacts in both the Chinese and UK Governments as well as key local enterprises.

The post In conversation with Schroders Investment Management appeared first on Focus - China Britain Business Council.

In this first instalment, we speak to Jaguar Land Rover (JLR) about being ‘In China, for China’, promoting Sino-British cultural exchange through its charitable fund, and how CBBC has helped along the way.

How and when did JLR enter the China market and what major successes and growth have you had during this time?

Since entering China in 2010, we’ve been committed to providing high-quality products and services for local consumers with a long-term ‘In China, for China’ commitment, and an ‘In China, for the world’ mission – and won the favour of over a million Chinese customers.

In 2012 we established the joint venture Chery Jaguar Land Rover, and in 2014, formally built our first vehicle manufacturing plant outside the UK in Changshu [pictured in lead image], which set records when it produced five domestic models and 300,000 engines in just three years. It also won the “National Green Factory” award from the Ministry of Industry and Information Technology for its sustainable energy management and initiatives.

The Chinese market contributes an important role to global business growth. In the past two years, despite external factors, it still manages to account for more than a quarter of our global sales. We aim to become the creator of the world’s most desirable luxury vehicles and services for the most discerning of customers, and through innovative products and services, have built a full-chain modern luxury journey for Chinese consumers. This includes more than 10 new models, such as the New Range Rover, New Range Rover Sport, and New Land Rover Defender 130. In services, the J.D. Power China Customer Service Index (CSI) ranked Land Rover second for four consecutive years, reflecting consumer recognition of JLR’s high-quality services.

In 2014, JLR China also established the China Soong Ching Ling Foundation Jaguar Land Rover China Children & Youth Dream Fund, the first of its kind in China’s auto industry. The fund promotes Sino-British cultural exchange and CSR with a total investment of nearly 100 million RMB, benefiting more than 600,000 young people.

What are your thoughts and reflections on the Chinese market today?

We remain confident in the long-term growth of the Chinese economy and the luxury car market. We’ll continue our focus on building the most desirable experience for the most discerning customers, and accomplish this by taking advantage of our innovative strengths in local R&D, purchasing, manufacturing and more to drive global development through the Chinese market as the business growth engine.

How has CBBC supported you or British businesses during your time in China?

CBBC has served as a bridge in the healthy development of UK-China economic and trade relations and the growth of British companies in China, providing JLR and other British companies with more comprehensive local market opportunities. CBBC also promotes in-depth exchange between the UK and China in business, trade, and culture. In recent years, we’ve used our brand DNA and British charm to contribute to Sino-British cultural exchanges while practising our corporate social responsibility through cultural and sports programmes.

What are your ambitions and plans for the future in China?

The Chinese market is a critical driver of global economic growth, offering tremendous development opportunities for British companies. Over the past few years, JLR’s global board has expressed interest in visiting China and experiencing the vitality of the world’s most dynamic market.

In JLR’s global business layout, the Chinese market aims to be at the forefront of the world and times, focusing on industry trends and local consumer demand, and leveraging its local innovation advantages in R&D, procurement, manufacturing, and more. The aim is to consistently deliver a full-chain modern luxury journey for domestic consumers and contribute to global strategic development goals.

What do you think China will look like in another 50 years?

For the past 50 years, ambassador-level diplomatic relations have forged ties that endure over time, building a “community of common destiny” and a foundation for JLR and other British companies to further develop in China. As a participant and beneficiary of UK-China economic and trade cooperation, we’ve witnessed China’s continued openness and resilience. The Chinese market is an important core of JLR’s global growth.

In the future, we will continue enhancing our competitiveness and attractiveness in China and achieve higher-quality corporate development while growing with the local market. The next 50 years will ring in a brand new chapter.

With the disruption of 2022 now behind us, the China-Britain Business Council is excited to share the newly confirmed dates for our celebration of 50 years of UK-China Ambassadorial Relations dinner receptions in Beijing and Shanghai.

The Beijing dinner reception will be held on Tuesday 21 March 2023 at the Intercontinental Sanlitun and will be attended by senior officials from China’s central government, ministries, and regulators along with municipal and provincial leaders. Learn more about the dinner in Beijing here.

The Shanghai dinner reception will be held on Tuesday 28 March 2023 at Intercontinental Jing’an and will be attended by senior representatives from municipal and adjacent provincial government organisations.

The dinner receptions are an ideal opportunity for our members to engage with CBBC’s network of senior contacts in both the Chinese and UK Governments as well as key local enterprises.

The post In Conversation with Jaguar Land Rover appeared first on Focus - China Britain Business Council.

Can you tell us about some of your most enjoyable moments during your time as ambassador to the UK?

I served as the Chinese ambassador to the UK for 11 years, the longest-serving one in the history of China-UK relations and in China as well. The most enjoyable moments, over that period of time, were those I shared with Chinese and British friends in promoting friendship and cooperation. Those have become my precious and fond memories. And the most unforgettable of all was the Chinese New Year celebration in Trafalgar Square. I went to the event for 10 consecutive years to join the British people in celebration of the Chinese New Year.

The Chinese New Year celebration in Trafalgar Square is a leading multi-cultural event in London, and the biggest Spring Festival celebration outside Asia, attracting around 700,000 people every year. The celebration is impressive because it transcends national boundaries and cultural differences. It presents not only traditional Chinese cultural performances such as Chinese songs and dances, painting and calligraphy, dragon and lion dance, but also Western opera and musical performances. It is a platform for both Chinese and Western cultures and a nurturing ground for China-UK friendship, enriching our people-to-people ties. That is why it enjoys support from the royal family and the British government, receiving congratulatory messages from H.M. Queen Elizabeth II and British Prime Minister. In addition, Downing Street No.10 has held Chinese New Year receptions for a couple of years. My wife and I have been invited to attend, joining the local Chinese communities to celebrate the New Year.

I am glad to see that this year, despite the Covid-19 pandemic, there were still lion dances in Trafalgar Square in celebration of the Year of the Tiger, which attracted a lot of passers-by to watch. Indeed, just as my British friends often say, “the show must go on!”

What do you think were the biggest ambassadorial successes during your time as ambassador to the UK?

What has made me most proud is the “ice-breaking spirit” in the China-UK relationship, which has led the way for China’s relations with the Western world. Of the major western countries, Britain was the first to apply for the Asia Infrastructure Investment Bank (AIIB) membership and inject capital into its special fund; the first to issue RMB bonds and appoint a special envoy for the Belt and Road cooperation and the first to sign the Guiding Principles on Financing the Belt and Road Initiative.

On China’s part, we established a comprehensive strategic partnership with the UK earlier than other European countries; we chose London to issue the first RMB sovereign bonds and central bank bills overseas, in support of London to become the world’s biggest offshore RMB trading centre. China’s investment in the UK surpassed that in most other European countries. These “firsts” epitomized the China-UK relationship leading the way for China’s relations with Western countries. They were important milestones that I witnessed as ambassador to the UK.

What were the most significant diplomatic moments between the two countries during your time as ambassador to the UK?

President Xi Jinping’s state visit to the UK in 2015 ushered in the “Golden Era” of China-UK relations. This is undoubtedly the most important and far-reaching moment, the very highlight, of bilateral relations in recent years.
That was indeed a “super” state visit. Britain greeted President Xi with exceptional protocol: at Tower Bridge and Green Park, a 103-gun salute was fired, the highest British royal salute; Queen Elizabeth II held a grand welcoming ceremony for President Xi and hosted two banquets for President Xi and Madame Peng, with most of the royal family in attendance. After the state events, Prime Minister Cameron invited President Xi and Madame Peng to Chequers, and accompanied them on a visit to Manchester.

That visit has lifted the bilateral relationship to a “global comprehensive strategic partnership for the 21st century”, and produced nearly 150 deliverables, including the launch of the Shanghai-London Stock Connect. It consolidated the China-UK friendship and opened up broader prospects for bilateral relations. Despite some twists and turns in the following years, cooperation remains in the fundamental interest of both countries as it benefits both sides. I am confident that with the concerted efforts of our two countries and peoples, China-UK relations have a brighter future and will regain its full vigour.

How have ambassadorial relations evolved since your time as ambassador to the UK?

During my 11 years as China’s ambassador to the UK, I had the honour of working with four British prime ministers and six foreign ministers and staying in touch with key members of the royal family. During that period, the China-UK high-level dialogue mechanisms grew more expansive, the global significance of China-UK relations more prominent, and the friendship between the two countries closer.

First, the leaders of the two countries kept regular communications and interactions. China and the UK held five prime ministerial meetings, five strategic dialogues and eight economic and financial dialogues. A high-level people-to-people and cultural exchange mechanism, as well as a high-level security dialogue, were launched.

Second, the two countries enhanced coordination under the UN, the G20 and other international frameworks. We were more united in supporting multilateralism and free trade, opposing unilateralism and protectionism, and jointly addressing global challenges like climate change. The two countries also stayed in communication and coordination on international and regional hot spots.

Third, the two countries deepened mutual understanding and people’s support for bilateral relations. Over the past 11 years, the number of annual visits between China and the UK has doubled to 2 million. The number of Chinese students in the UK increased more than onefold to 220,000. Britain has become the country of choice for Chinese students seeking to study abroad. Bilateral exchanges and cooperation in culture, science, technology and innovation have yielded fruitful results. Britain was the first country to sign the Science and Technology Innovation Cooperation Strategy with China. In the face of Covid-19, the two peoples rendered each other support and stood together in solidarity.

Nonetheless, given our differences in political system, stage of development, history and culture, China and the UK take different views on some issues and bilateral relations are not always plain sailing. But as two major countries with global influence, China and the UK shoulder an important responsibility to uphold world peace and development. China-UK relations must stay on the track of cooperation. I believe when the two countries look at the overall picture, meet the trend of the times, enhance communication and cooperation in a spirit of mutual respect and equality, China-UK relations will transcend the differences and enjoy sound and stable development.

Liu Xiaoming attends the Chinese New Year Reception at No. 10 Downing Street with Prime Minister Boris Johnson (Picture by Andrew Parsons / No. 10 Downing Street)

What were some of the biggest obstacles you overcame during your time as ambassador to the UK?

Among the major Western countries, Britain was the first to recognize the People’s Republic and among the first to develop trade relations with us. As we speak, exchanges between the two countries are multi-faceted and involve all fields, with a breadth and depth unseen in the past. Nevertheless, a “deficit” of mutual understanding and mutual perception still exists. That was the biggest obstacle I tried to overcome during my tenure. I once said that Britain is like a good read, and so is China. Unfortunately, in Britain, some people only look at the book cover or listen to some kind of irresponsible “book review”, and they think they have known the real China. During my time as ambassador, I did my level best to present to the British society a true China that has friendship and opportunities to offer.

To that end, I visited around the UK, from the northernmost Yell in the Shetland Islands to the Channel Islands in the South, from England to Scotland, from Northern Ireland to Wales, and from royal dependencies to overseas territories. I developed extensive contacts with Britons of all social sectors to promote China-UK mutual understanding and cooperation in various fields. I gave over 700 speeches, published over 170 articles in mainstream newspapers and gave 170 plus interviews to mainstream media. It is also my hope that the CBBC will continue to serve as a bridge that helps the two countries overcome the “deficit” in mutual understanding and perception.

How do you think CBBC helped UK-China business relations during your time as ambassador to the UK?

China-UK trade relations wouldn’t have come thus far without the hard work of the business communities in both countries and the CBBC as well. During my time as the Chinese ambassador, I have seen the Council, under the leadership of Sir David Brewer, Lord Sassoon and then Sir Sherard Cowper-Coles, connecting the businesses of China and the UK and offering good suggestions for practical cooperation. The CBBC has done a lot to let people know the benefits of China-UK trade relations and encourage all sectors of the British society to view China’s development in a fair and comprehensive way. You have played a big role in promoting a right perception of China and Britain’s cooperation with China.
More specifically, the CBBC has:

First, tapped into its influence and spoken up multiple times for the British government to extend friendship, stabilize businesses’ confidence in China-UK cooperation, deepen mutual trust and keep such cooperation intact;
Second, published two issues of the UK Jobs Dependence on Links to China, a research endeavor to reveal the win-win nature of China-UK cooperation and its importance to the British economy, calling for a rational approach to China;
Third, organized high-profile seminars to guide the public opinion, creating platforms for sound interactions between the two countries and contributing to bilateral cooperation and mutual trust;
Fourth, coordinated Chinese and British companies and financial institutions to extend Covid-control supplies to each other, bringing the two countries closer in this trying time.

In sum, the CBBC not only gave me strong support and enormous help when I served as ambassador but more importantly, did great service to the mutual trust, strategic consensus and shared interests between our two countries.

Ambassador Liu Xiaoming with CBBC leaders

What do you think have been the biggest achievements in trade and investment between the two countries?

During my 11 years in the UK, the two countries came a long way in trade and investment, major projects, financial and the Belt and Road cooperation.

From 2009 to 2020, trade in goods between China and the UK increased from US$39.2 billion to US$92.4 billion, and British exports to China grew by nearly 20 times. By the end of January 2021, when I left the UK, its direct investment in China reached US$26.42 billion, while China’s direct investment in the UK amounted to US$18.11 billion, about 17 times higher than the US$1.02 billion at the end of 2009. Britain has become China’s second-largest investment destination in Europe. The Hinkley Point C nuclear power plant, China’s single biggest investment endeavour in Europe, stands as a flagship of China-UK cooperation.

Over the past 11 years, the number of Chinese banks with UK branches has risen to eight. The Shanghai-London Stock Connect was officially launched, and more Chinese enterprises went public at the London Stock Exchange, enabling the very first links between Chinese and foreign capital markets. London has become the world’s largest offshore RMB trading centre and the second-largest offshore RMB clearing centre. China and Britain signed an agreement to extend their Belt and Road cooperation to third markets, spanning the sectors of financing, professional expertise and service.
The mutually beneficial economic and trade cooperation has delivered tangible benefits to the people of both countries: Chinese enterprises built in the UK the then-largest battery energy storage project in Europe; Chinese-invested electric and low emission taxis run in the streets of London; British foods and drinks are on the kitchen table in Chinese households, thanks to the China International Import Expo. Chinese investment has contributed considerably to the tax revenues and job creation in the UK while giving impetus for British companies and industries to transform, upgrade and move toward higher-quality development.

In sum, I believe that China-UK economic and trade ties have vast potential and enormous prospects. The next 50 years will see an even more brilliant chapter of China-UK cooperation.

The post Liu Xiaoming on his time as Chinese ambassador to the UK appeared first on Focus - China Britain Business Council.

Can you tell us about some of your most enjoyable moments during your time as ambassador to the UK?

During my term, I took every opportunity to explore cities and places of interest, and made many friends, from colleagues in the then Foreign and Commonwealth Office (FCO) and other government departments, to people from all walks of life. I enjoyed my life in Britain so much that even before my return to China in January 2010, I confessed at my farewell reception at the Mandarin Oriental Hyde Park Hotel that I was already missing this country.

My time in the UK had many enjoyable moments. I have been fond of British literature since I was a student of the English language. I was curious about the background of those fascinating stories and the changing times portrayed in the novels. One of my hobbies in the UK was seeking out where those literary masters grew up, their residences and the surroundings. Such trips took most of my spare time. I visited Stratford-upon-Avon, Shakespeare’s hometown, Charles Dickens’ Birthplace Museum, and the poet William Wordsworth’s residence in the Lake District, to name a few. I was disappointed that Thomas Hardy’s Cottage was under renovation when I finally found the place on a Sunday afternoon. But I walked around the place, trying to picture in my mind how the scenes Hardy depicted in his stories may have looked like at that time.

In 2007, I came upon the Jane Austen Museum in Winchester during a trip. Walking through the corridors, I tried to feel the atmosphere in the rooms where she and her sisters spent their lives. There were laminated pamphlets placed in every room for the visitors to read as guides. My driver, Mr. Wei, did not know English, so I acted as translator for him. The curator of the private museum noticed us. As we were leaving, he approached me and said, “I am wondering if it is possible for you to help us translate these pamphlets into Chinese?” He noticed that I was interpreting for Wei. He explained that the Museum has started receiving Chinese visitors, and he would like to provide them with better service. I accepted the request, brought those pamphlets back, had them translated and then mailed back. Now, there are more and more Chinese visitors going there out of admiration for Jane Austen. Obviously, the curator had a good sense of what was to come.

Before the Covid-19 pandemic, more than one million Chinese tourists visited the UK in the year 2019 alone, five times more than the number in 2009. In the academic year 2018-2019, there were 120,000 Chinese students studying in the UK. In 2020, among the Chinese youngsters who sought overseas education, 42% went to the UK, which surpassed the US to become the top destination for overseas Chinese students. 

What were the biggest ambassadorial successes during your time as ambassador to the UK?

The UK was my third ambassadorial post. Prior to the UK, I served as the Chinese Ambassador to the Philippines and Australia. The term of Chinese diplomats stationed abroad is usually three to four years. Apart from loads of routine affairs to handle, I would try to identify the focus of my endeavours during my term in order to add my contributions to bilateral relations in the limited time of my term. To achieve this, I needed to find the right target and make proper planning.

Before assuming an ambassadorial post, a must-do for me was to research the host country. I would read a few books to learn about the history and unique aspects of the country and talk with my predecessors to learn more about the relationship. I would also meet Chinese government officials in various areas and learn about their expectations for China-UK ties. All this was an important first step but it was never enough. After arriving at my post, I would spend the first three months trying to find the focus by reaching out to different communities and visiting cities, companies, and cultural and educational institutions. These visits would give me lots of food for thought as I reflected on where I should focus my efforts during my term as the Ambassador.

When I arrived in London to take up my office in April 2007, it was one year away from the 2008 Beijing Olympics and preparations for this greatest sporting event had been well underway. The Chinese people were very enthusiastic about hosting the Olympics. They wanted to open their arms to welcome the world’s participation and support. However, in London, I could sense some negative sentiments from the British media and in the general discourse about China. China was portrayed in the media with biased tones and poorly researched facts. 

Indeed, as a developing country, China was far from perfect and was confronted with difficulties in its economic and social development. But much of those negative views propagated under the spotlight were not even close to capturing the real challenges we were addressing. Sometimes the views about China were irrational, if not downright paranoid. I could see that such misrepresentation of China was drawing a backlash against British arrogance among the people in China. While one of the reasons behind such media negativity about China could be traced back to historical misperceptions, the ineffective channels of communications was also to blame as firsthand information about China was hard to come by in the British society.

The world around us has been witnessing rising turmoil and uncertainties. However, there is no reason to be pessimistic about the future of China-UK relations, as the foundation of our cooperation remains solid

Acknowledging that mutual objective knowledge and friendly feelings among the two peoples provides a solid foundation for developing sound economic and trade relations as well as people-to-people exchanges between our countries, I decided to take media communications as my main area of focus in the UK. With this in mind, I first learned about the British media by reading about its history, visiting some news outlets and talking with the editors. Having laid the groundwork, I started to take interviews and contribute articles to British media. 

For me, this was immensely challenging, as it not only required good knowledge of my own country, its policies, progress and difficulties, but also a good grasp of the British people’s perception and interests about China, and most of all, a capacity to craft and present China’s perspectives and messages in a positive and convincing way to a Western audience. I needed training on dealing with the media to equip myself for tough interviews. 

These efforts paid off. When issues about China were drawing international attention, or even became hotly debated by the media, the ability of the Chinese Embassy to promptly provide firsthand information and authoritative views would go a long way to building up China’s international image. The more the outside world knows about China, the easier it is for us to communicate with one another.

During my term as Chinese Ambassador to the UK, my colleagues and I made great efforts to promote such communication and exchanges and our work was met with positive responses.

What were the most significant diplomatic moments between the two countries during your time as ambassador to the UK？

The relationship between China and the UK is a comprehensive one, involving dynamic exchanges at all levels and across multiple areas. There was never a lack of highlights or significant moments between our countries. So it would be hard to single out the most important one. One of the moments that left a lasting impression on me was the overwhelming support China received after the magnitude 8.0 earthquake that struck Wenchuan in Sichuan Province, on 12 May 2008. 

The earthquake caused terrible human casualties and property damages. China was fully mobilised. From the government to the military, from businesses to the general public, everyone joined the rescue and relief effort under the strong leadership of the Communist Party of China. People pitched in from all over the country in an all-out effort to save lives. The unity and heroism demonstrated by the Chinese nation in the face of adversity touched the hearts of many.

In an information era, the disaster relief operation in Wenchuan was carried out with the whole world looking on. The international community not only learned about the scale of the disaster in real-time but also shared the deep sorrows of the Chinese people and marvelled at their bravery and perseverance. The people of the UK showed deep sympathy and support to us. In London, my Embassy was flooded by offerings of support and donations from British society, including large donations given by leading companies and contributions from the general public. Children from kindergartens led by their teachers came to the Embassy and put coins from their small hands on the table. A group of 13 policemen raised donations by biking 114 miles from Birmingham to London. A 19-year-old boy called Isaac Louis walked from 240 miles from Wales collecting donations all the way, and sent the money to the Embassy.

On the afternoon of 20 May 2008, a memorial service for the victims of the earthquake was held at the Embassy. Mr Gordon Brown, the then British Prime Minister, came in person to offer his condolences and observe a moment of silence together with us. In the condolences book, he wrote, “On behalf of the British people my sincere condolences to the Chinese people who have suffered.” During the service, children of the embassy staff, holding candles in their hands, read aloud a poem with their tender and youthful voices to commemorate the children lost in the earthquake. Many attendees shed tears at this touching sight. At this moment, the hearts of the Chinese and British peoples were beating as one, which was a scene forever imprinted on my mind. The compassion and generosity of the British people boosted my confidence for pressing ahead with China-UK relations. It led me to believe, no matter what difficulties lay ahead, with candour and sincerity, we would always work out a way to deal with challenges while promoting cooperation.

How do you think CBBC helped UK-China business relations during your time as ambassador to the UK?

The China-Britain Business Council (CBBC), which enjoys the support of both the British government and the private sector, has served an important role in boosting bilateral trade and economic and technological cooperation. It acts as an indispensable facilitator, participant, and supporter of our economic and trade cooperation throughout the ups and downs of our bilateral ties.

I remember the many workshops, visits and events the CBBC organised during my term as the Chinese Ambassador to the UK. These efforts have helped to enhance confidence and trust among the business communities, facilitate exchanges, address difficulties and encourage people-to-people linkages. The CBBC has played an irreplaceable role and made significant contributions to elevating our bilateral relations to a higher level. 

In 2007, the year I took office, trade between our two countries was USD 54.15 billion. In 2021, the figure surpassed USD 110 billion, making China the largest trading partner of the UK in Asia. Cumulative two-way investment reached about USD 50 billion. Booming trade and investment flows have ushered in a golden period of cooperation between our countries.

The world around us has been witnessing rising turmoil and uncertainty. Anti-globalisation and de-globalisation waves are impacting the trend of peace and development that has emerged alongside globalisation. However, there is no reason to be pessimistic about the future of China-UK relations, as the foundation of our cooperation remains solid. There is still great potential and room for expanding our economic and trade relations and multi-dimensional cooperation. What is required of the two sides is to muster the wisdom and courage to come to an objective and rational understanding of each other’s perspectives and positions, to respect the different ways of thinking and achievements which are rooted in their different history and culture, and to protect bilateral cooperation from disruptions as much as possible. During his phone call with Prime Minister Boris Johnson on 25 March, President Xi Jinping reaffirmed China’s candid, open and inclusive approach toward dialogue and cooperation with the UK. He called on the UK to view China and China-UK relations in an objective and impartial light and work with China to keep moving bilateral ties forward.

The post Former Ambassador Fu Ying: Fond memories of my time in Britain appeared first on Focus - China Britain Business Council.

For six years, Chris Boobier led the Chevening Programme in China – the UK government’s international awards programme aimed at developing global leaders. Through this, he met hundreds of inspiring industry professionals from every province across the country working to bridge the UK and China, build people-to-people links and build lasting positive relations with the UK.  

‘Trust and understanding’

In 1950, the UK recognised the People’s Republic of China, the first major Western country to do so. Twenty-two years later, on 13 March 1972, the first British Ambassador to the People’s Republic of China (PRC), Sir John Mansfield Addis, met with acting chairman of the PRC, Dong Biwu, to establish full diplomatic ties. This is the anniversary that we celebrate this year. 

The ongoing agreements between high-level leaders and politicians since the raising of diplomatic relations to the ambassadorial level have been formative in driving forward collaboration across all areas of society, bringing us closer, and developing trust and understanding on both sides. More than anything, these exchanges and dialogues give people, businesses and organisations confidence and direction. Through the dialogue itself and the actions and commitment that follow, they inspire and embed goodwill.

Since 1972, China has sent 12 Ambassadors to London and the UK has sent 13 Ambassadors to Beijing. Year by year, decade by decade, we have seen trade and tourism grow, dialogue and exchange deepen and intensify. 

In December 1984, Margaret Thatcher travelled to Beijing to meet Deng Xiaoping. Following the signing of the Sino-British Agreement – an agreement ensuring that the sovereignty of Hong Kong would return to China in 1997.

A plaque marking the magnolia tree planted in the grounds of the British Embassy by the queen during her visit to China in 1986

In 1986, Queen Elizabeth II, accompanied by Prince Philip, Duke of Edinburgh, became the first British sovereign to visit China. Photos of the queen standing on the Great Wall alongside the Duke of Edinburgh to this day line the walls and meeting rooms within the British Embassy in Beijing.

During the State Visit of President Xi Jinping and his wife Madame Peng Liyuan to the UK in 2015, The queen spoke fondly of her previous visit to China and the “warm and longstanding friendship” between the UK and China. The queen talked about the privilege of being able to experience China’s rich history and culture, and of being captivated by the energy, ambition and enthusiasm of the Chinese people. 

These words epitomise the role that diplomacy at the highest possible level plays in forging the strong people to people and business to business relationships that governments seek to build. They will undoubtedly have struck a tone with the Chinese people also. To be able to walk among the only recently excavated and restored Terracotta Warriors is the rarest and most special of privileges. To this day the Warriors act as symbols of trust across borders. 

‘The unsung heroes’

State visits such as these, as well as the vast numbers of high-level dialogues and meetings that have been ever-present throughout the bilateral relationship, are important. But the true and arguably unsung heroes of the strengthening of diplomatic ties between the UK and China are the people and businesses, the students and academics; the artists and sportspersons; the entrepreneurs across China’s provinces, regional Britain and in third-countries.

The true and arguably unsung heroes of the strengthening of diplomatic ties between the UK and China are the people and businesses, the students and academics; the artists and sportspersons…

The commitment between government and business is one that is mutual. They allow for engagement and therefore assurance across all levels, sectors and geographies that ensure our relationship is balanced and diverse. Business delegations on both sides should take great pride in the roles they play in forming and reinforcing both trade and diplomatic relationships, adding great substance and shaping views. 

In the last few years of change, the number of dialogues and bilateral exchanges may have lessened in frequency but not in significance. In November 2021, the UK’s Health Secretary Sajid Javid and China’s Health Minister Ma Xiaowei acknowledged the challenges both sides have faced during Covid-19 and agreed to strengthen exchanges. 

Cooperation continues to occur at the global level. In November 2021, the UK hosted COP26 in Glasgow and earlier in the year China hosted COP15 on biodiversity in Kunming. These platforms allow for differences in worldview to be acknowledged and divergence in opinion to be shared and discussed. Crucially, outcomes of discussions reaffirm that there is more space for agreement than divergence when facing global challenges such as climate change.

‘A legacy of commitment to dialogue’

Every year around this time, a magnolia tree that was planted by Queen Elizabeth in the garden of the Residence of the British Ambassador in Beijing will bloom. A symbol of endurance, hope and love, this acts as a reminder to us all as to the true value of a centuries-long bilateral relationship. 

The 50^th anniversary is an important landmark in our shared history – a history with participation from people encompassing a diverse range of backgrounds, all acting as UK-China ambassadors well-versed in facing complexity and in demonstrating resilience and pragmatism. 

It is this historical legacy of commitment and ongoing drive for dialogue that will continue to inspire goodwill all across society, to seek trust and understanding for the benefit of future generations. Celebration and reflection are therefore, on balance, important for us all. 

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