Below is an extract from CBBC Chair Sir Sherard Cowper-Coles’ foreword to the report:

I am delighted to introduce CBBC’s Annual Report for 2023-2024 after another busy and successful year for the China-Britain Business Council. The UK’s trade relationship with China is a critical one. Two-way trade with China and Hong Kong, excluding fuel and gold, amounted to some £108.5bn in 2023, making it the UK’s third largest trade partner. With rebuilding economic growth central to the new UK government’s strategy, this underlines the importance of the trade and investment relationship with the world’s second-largest economy to the UK’s economy and employment rate.

Throughout this year, geo-political tensions continued to present challenges for business confidence, with the conflicts in Ukraine and the Middle East generating uncertainty for decision-makers.

On the other hand, the year saw the very welcome lifting of remaining pandemic-related travel and other restrictions in China, allowing a return to in-person visits and events, towards something much more closely approaching business as usual. CBBC took full advantage of this change to launch a busy programme of in-person visits and events across China.

Throughout our visits, the consistent message from our Chinese hosts was the wish to rebuild and grow trade links, and the priority given to ensuring a favourable environment for foreign investors. High-level meetings provided a vital opportunity for our Members to convey key messages and requests to Chinese policymakers at the most senior level.

Throughout the year, we continued our public affairs work, highlighting to UK parliamentarians, policymakers and opinion formers the importance to the UK economy of the trade and investment relationship with China. And this impact is substantial: Some 800 Chinese enterprises in the UK directly employ more than 75,000 people nationwide. Research shows that our exports to China support – at a conservative estimate – a further 120,000 jobs.

Here in the UK, we of course now have a new government. We look forward to working with the government to develop and grow further the trade and investment relationship with China – as a vital contributor to the economic growth that the government is prioritising. We firmly believe that a sound economic relationship with China is a foundation which allows the UK to pursue its broader goals with China. And that relationship means globally competitive companies, employment, and prosperity right across the UK.

Looking ahead, I am confident that we are in a strong position to support our Members and their customers through 2024 and beyond. I am proud to say that the China-Britain Business Council continues to work hard on its mission of helping its Members develop their business in the exciting but complex China market.

Read CBBC’s Annual Report 2023-2024 in full here

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CBBC Attends Meeting with Premier Li Qiang

Premier Li Qiang attended a meeting hosted by CCPIT with representatives from businesses and organisations participating in the second China International Supply Chain Expo (CISCE) on Monday, 25 November in Beijing. Sir Sebastian Wood, Chair (China) at Schroders and board member of CBBC, attended the meeting. 

Government Meetings

During the visit, Sir Sherard and the delegation engaged with senior government officials at the ministerial and provincial levels.

Second UK-Greater Bay Area Conference

CBBC hosted the second UK-Greater Bay Area Conference in Shenzhen on Friday, 22 November. The event brought together over 200 delegates, including senior representatives from the British Government, local governments across the Greater Bay Area (GBA), as well as senior representatives from British and Chinese companies based in the UK, cities in the Chinese mainland, Hong Kong and Macao.

Peter Burnett welcomed the guests and reaffirmed, “The relationship between the UK and the Greater Bay Area is poised to flourish in the coming years.” He introduced the inaugural UK-Greater Bay Area Handbook and invited the guests to explore the rich opportunities presented in this Guide, which will serve as a valuable resource for understanding the potential that lies ahead.

Sir Sherard Cowper-Coles underscored the significance of the Greater Bay Area (GBA), which brings together nine of the most economically vibrant cities in Guangdong province and the two Special Administrative Regions of Hong Kong and Macao. He stated: “The GBA’s ambitions resonate strongly with the UK’s expertise in financial services, creative industries, and innovation. British companies are uniquely positioned to bring their strengths to this dynamic region, and the international capabilities of Hong Kong serve as an invaluable gateway to accessing the wider Chinese market. At the China-Britain Business Council, we are committed to nurturing these partnerships. We strive to provide UK businesses with the insights, networks, and strategic support they need to navigate the complexities of the GBA and to thrive in this competitive landscape.”

For a full recap of the CBBC Chair’s visit to China, please visit cbbc.org/news-insights

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In the third instalment of this series, FOCUS talks to Yue Fu, Head of Corporate Affairs for Chinese Mainland and Hong Kong at Haleon.

What new trends are you seeing in the health industry in China?

First, we believe the health industry in China will experience steady growth. According to China’s National Health and Family Planning Commission, the total scale of China’s health service industry will reach RMB 16 trillion by 2030. There has also been a notable shift in people’s mindset as priorities move from reactive disease treatment to preventative health measures, and there is a growing demand for proactive health management products and services.

In addition, China’s ageing population is fuelling a surge in demand for health products and services tailored for older adults. Older people seek not just an extended lifespan but also a higher quality of life. Consequently, there is a growing opportunity for health products and services that support mobility, vitality, memory and cognitive wellbeing.

We believe that these trends will keep driving the growth of China’s consumer health industry. Haleon will also keep leveraging its core strengths in China – deep human understanding, trusted science and digital capabilities – while actively capturing local market trends and consumer needs to provide more high-quality products to meet consumers’ diversified needs under the new trends.

How have Chinese consumers evolved in recent years in terms of their healthcare preferences and buying habits?

Firstly, the consumer’s level of concern for all health problems generally increased. According to a Haleon market study conducted in early 2024, compared with 2021, consumers’ concerns about eye health, immunity, energy, joint health and nutrition supplements have all increased significantly. To deal with these concerns, consumers are taking measures such as adjusting their lifestyles, seeking medical help, changing their diets and exercising more.

In addition, people are spending more on proactive health management. The 2023 National Consumption Expenditure Report indicated that, while demand for therapeutic medications remains dominant and relatively stable, expenditure on non-therapeutic scenarios, such as preventative healthcare, health examination and screening tests, has shown more pronounced growth.

Lastly, consumer demands are constantly evolving and becoming more sophisticated, calling for personalised solutions. To address the diverse needs of different individuals, Haleon launched its first customised nutrition mini-program platform, Key, last year, providing consumers with personalised nutrition solutions, to give just one example.

Key, Haleon’s personalised nutrition platform

Does China’s ageing population provide an opportunity for Haleon?

As mentioned earlier, the ageing population presents great opportunities for growth in health products and services that aim to enable older adults to enjoy a fulfilling life in their later years. Notably, the “new-silver” demographic, aged between 50-60, are more proactive in maintaining their health and more willing to invest in health-related expenses.

Haleon offers products and health solutions that may benefit this ‘silver’ demographic. We have the Silver Centrum multivitamin for the middle-aged to the elderly population. US Silver Centrum has been used in some large-scale, high-quality studies and has been shown to have positive results in slowing down cognitive ageing. In addition, our classic brand, Caltrate, has always focused on providing solutions for bone and joint health, which may also be helpful for older adults to maintain and improve their mobility.

The advantage of China’s consumer goods market is its ability to generate quick innovations, enabling rapid iteration and an agile “test-and-learn” approach

What learnings has Haleon taken from the China market that can be used in the UK and vice versa?

The Chinese market presents lessons for Western countries in the agile and rapid innovation capability of business models such as online-to-offline and interest-based e-commerce platforms. Another advantage of China’s consumer goods market is its ability to generate quick innovations, enabling rapid iteration and an agile “test-and-learn” approach by leveraging its complete industry supply chain and massive domestic consumption market.

As a company with a history in pharmaceuticals, Haleon was born with a heritage of rigorous scientific research. Deep human understanding and trusted science are the core strengths that enable Haleon to outperform its competitors. In the realm of consumer health, our journey begins with a deep understanding of our consumers’ needs. We are truly committed to uncovering profound insights, fulfilling the genuine needs of consumers, and delivering innovations that have been proven to benefit consumers’ health based on trusted science.

How has Haleon managed to thrive in an era of recession around the world? 

Health is a universal and timeless theme. Haleon’s vision to make everyday health more achievable, more inclusive and more sustainable, as well as our commitment to breaking down the social and environmental barriers to better everyday health, is especially crucial in these turbulent times.

With an extensive portfolio spanning disease treatment, prevention and condition enhancement, covering almost the entire human life cycle, we are able to serve tens of millions of people around the world. Combined with the global accessibility of our products, this has allowed us to maintain a certain level of resilience even in challenging environments.

As we move forward, Haleon will continue to leverage our strengths to identify new trends in the market and keep enhancing our innovation capability, allowing us to explore potential business opportunities and adapt to the ever-changing world.

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In the second instalment of this new series, FOCUS talks to Jasmine Dang, Unilever’s North Asia Head of Communication and Corporate Affairs.

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

It has been over one hundred years since Unilever’s first entry into the China market. Over the past century, Unilever has grown alongside the Chinese people, providing products and services to Chinese consumers. We have witnessed and contributed to the development of China’s consumer goods industry.

In 1923, Sir Lever, the founder of Unilever, journeyed across the seas to Shanghai to establish the largest soap factory in the Far East, introducing new hygiene products to Chinese consumers.

Fast forward to 1986, Unilever was among the first batch of multinational companies to enter China after the reform and opening up, bringing advanced industrial technologies, an extensive range of products, and a commitment to quality, which significantly drove the growth of China’s consumer goods sector.

Today, China has become one of the top three key growth markets for Unilever globally. Our cumulative investment in the country exceeds $3 billion, with the establishment of our North Asia headquarters and a state-of-the-art global R&D centre in Shanghai. We have eight production bases across the country and operate 40 prestigious brands that meet the daily needs of 80% of urban households in China.

What major projects has Unilever been working on recently, and what is the company excited about coming up in the near future?

As the advantages of China’s supply chain continue to emerge, Unilever has been gradually expanding and upgrading its supply chains in China, building a comprehensive network across the country.

Among these initiatives, as one of the largest investment projects in China in recent years, Unilever has invested RMB 1.6 billion to build a multiple-category production base in Guangzhou. The BW & PC factory officially started mass production at the end of October 2023 as the initial phase of the project.

It will follow international digital manufacturing and globalisation 4.0 standards, promote intelligent digital production, build an end-to-end intelligent supply chain value chain, launch a world-class ‘Lighthouse’ benchmarking project, and is in line with the sustainable goals of ‘dual carbon goals’, to contribute to the transformation and upgrading of the Chinese manufacturing industry.

When fully completed, along with other manufacturing facilities, this Guangzhou base will cover the South China market and will also work as a Unilever China export centre, supplying to the Regional Comprehensive Economic Partnership (a free trade agreement among 15 countries in the Asia-Pacific region) region and the global market.

How has Unilever seen the Chinese market evolve over the past 100 years?

Since entering the Chinese market over 100 years ago, Unilever has been deeply rooted in the mutual development of China’s social and economic life, providing quality services for Chinese consumers.

Entering the 21^st century, the country’s consumer goods industry has undergone more rapid development driven by the economic boom. Unilever modernised our supply chain with technology and optimised our product portfolios to be higher-end through cutting-edge technology backed by R&D capabilities to meet the changing needs of Chinese consumers.

With the rapid growth of e-commerce, Unilever is applying more “digital intelligence” tools and leveraging diverse social platforms to accurately cater to the ever-changing market trends, providing consumers with faster, fresher, and more accurate products and services.

Looking forward, we expect that the Chinese market will enter an era characterised by diversity, personalisation, and highly adaptive consumption patterns. We also find that Chinese consumers have become more rational, seeking products with health attributes and high quality. This shift in consumer attitude has led to exciting developments in the industry, transitioning from steady growth to an era of product segmentation and premiumisation.

Unilever will continue to strengthen its resonance with local consumers. We want to enhance their quality of life and empower them to embrace an active and healthy lifestyle.

What do you hope to see for the next 70 years in China?

Unilever has been operating in China for over 100 years. As we look towards the next century, fuelled by our North Asia headquarters, a state-of-the-art global R&D powerhouse in Shanghai and eight production bases here in China, Unilever will continue to provide high-quality products and services to local consumers.

How has CBBC supported Unilever now or in the past, and in what capacity?

Unilever and CBBC have maintained close cooperation over the past several years. We have navigated the complexities of legal policy together and engaged with government and other stakeholders to facilitate policy advocacy for a better business environment.

The Unilever Leadership Team also actively engaged in CBBC-host events to advocate for UK-China economic and trade engagement, such as the Shanghai celebration dinner for “the 50th Anniversary of the Establishment of China-UK Ambassadorial Diplomatic Relations” and the “Suzhou – Britain economic and trade cooperation roundtable dialogue”.

Forging ahead, we look forward to closer interaction and collaboration to drive more positive changes with a unified voice in the future.

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In the first instalment of this new series, FOCUS talks to leading energy technology company Baker Hughes about its commitment to revolutionising energy in China, the UK and beyond.

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

We started cooperation with China when Deng Xiaoping visited the Baker Hughes drill bit R&D centre in Houston in 1979 during his visit to the United States and took the most advanced drill bit (J44) to China.

In the nearly 45 years since then, we have been committed to the development of China’s energy industry. We have provided more than 150 compression systems for the China West-East Gas Transmission Pipeline project, which are running well so far. We have also participated in more than 20% of China’s shale gas exploration and development. Finally, we have in-depth cooperation with domestic Chinese companies as part of Belt and Road Initiative projects.

How is Baker Hughes contributing to the energy transition, both globally and in China?

As the pace of the global energy transition continues to accelerate, we have solidified our dual approach to implementing efficiency measures today and investing in new energy solutions for the future. We began to increase investment and deployment of related technologies in 2019 to balance the energy trilemma (energy affordability, security, and sustainability) and the challenge of energy efficiency and low-carbon energy utilisation, and ultimately achieve carbon neutrality.

We have expertise and specialist technologies to maximise energy supply whilst also reducing emissions. In addition to our company heritage in conventional oil and gas, we have been involved in carbon capture, utilisation and storage (CCUS) for more than a decade, including in some of the world’s largest offshore CCUS projects.

Our Subsea Centre of Excellence in Montrose, Scotland, for example, does not only manufacture equipment for the offshore UK and global oil and gas sector but has also manufactured subsea trees used in large-scale CCUS projects. Similarly, we have decades of experience in hydrogen technology, with more than 2,000 Baker Hughes hydrogen compressors currently in service globally.

From our perspective, driving and developing CCUS and hydrogen in China are one of the biggest focuses in our long-range playbook.

We are committed to continuously providing technical support for China’s energy needs, applying the most advanced low-carbon technology to achieve China’s dual carbon goals, and becoming the most reliable partner for China’s energy security and the most important technology leader in achieving the goal of carbon neutrality.

What is Baker Hughes’s involvement in the UK market?

Baker Hughes has a significant presence across the UK. Our 5,500 employees work at more than 30 sites nationwide, including in Aberdeen, Bristol, Leicester, Montrose and Newcastle. These operations support a network of over 3,000 UK suppliers, with whom we spend over £300 million annually.

We are the only large original equipment manufacturer (OEM) remaining in the UK for subsea energy production systems. Most of the products we manufacture in the UK are exported, including many large-scale infrastructure projects in the energy and oil and gas industries, as well as automation and digitalisation projects in China. During our 45 years of collaborating with three national oil companies and other state-owned enterprises in China, technologies and services from the UK have played a vital role in supporting our projects’ successes.

How have you worked with CBBC during your development in China?

Baker Hughes attaches great importance to the stable development of China-British trade. We became a premium member of CBBC in 2021 and have since relied on CBBC’s advantages in promoting China-British relations to help enhance Baker Hughes’ growth opportunities in the Chinese market. CBBC’s important role in helping shape bilateral relations between the UK and China through its close links to the UK Government and the devolved administrations, the Chinese Government, and the British and Chinese Embassies have been of great value to Baker Hughes and helped us to deliver more successes and business growth in China.

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

Our strategy framework is focused on transforming our core to strengthen our competitiveness today, while investing for growth and positioning for new frontiers in the energy transition. Through this framework, Baker Hughes will build and execute the plan to deliver sustainable value for our shareholders and stakeholders in China and beyond.

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Below is an extract from CBBC Chair Sir Sherard Cowper-Coles’ foreword to the report:

I am delighted to introduce this Annual Report for 2022-2023, after a busy and successful year for the China-Britain Business Council. UK exports to China broke a new record in 2022, growing over 35% to £38 billion. Two-way trade was over £110 billion. This underlines the importance of the China opportunity for UK business. And at a time when rebuilding economic growth is the top national priority, and with exports and inward investment key drivers of that growth, it underlines the importance of the UK-China trade and investment relationship to the UK economy and employment.

While businesses felt the effect for some of the year of pandemic restrictions in China, the ending of lockdown measures in late 2022 helped set the stage for a welcome normalisation of business activity and for the further growth of this critical trade and investment relationship with the world’s second-biggest economy.

The China-Britain Business Council is proud of its role as the voice and the vehicle for this vital business relationship.

Meanwhile, geopolitical tensions had an impact on business confidence, with Russia’s invasion of Ukraine and, at the time of writing, the conflict between Hamas and Israel adding new elements to those geopolitical differences.

The China-Britain Business Council continued to support our members in navigating these challenges via the range of Membership activities and services we provide, and by championing the importance of the UK-China business relationship.

In the UK, we stepped up our public affairs work, highlighting to UK policymakers and opinion formers the importance to the UK economy of the trade and investment relationship with China. The impact of trade with China is substantial: some 800 Chinese enterprises in the UK directly employ more than 75,000 people nationwide. Research shows that our exports to China support – at a conservative estimate – a further 120,000 jobs.

In early 2023, the British Government released its ‘Refresh’ of the Integrated Review. We were pleased to see that, in regard to China, alongside the recognition of the need for the UK to protect its national security interests and stand up for its values, there was recognition that “…. a positive trade and investment relationship can benefit both the UK and China”.

We are encouraged by the positive context this sets for further developing the UK-China business relationship. A sound economic relationship with China is a foundation which allows the UK to pursue its broader goals with China. And that relationship means globally competitive companies, employment, and prosperity right across the UK.

Read CBBC’s Annual Report 2022-2023 in full here

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Meetings and Events in the Greater Bay Area (GBA)

For the first stop of the visit, Sir Sherard met with Shenzhen Party Secretary Meng Fangli on Monday, 20 November.

Meng Fanli welcomed Sir Sherard and the delegation and gave a brief overview of Shenzhen’s social and economic development. He said that he hopes CBBC will continue to serve as a bridge, establish closer ties with Shenzhen in areas like trade, investment, finance, technology and culture, and encourage interactions between cities, businesses, institutions, and more.

Sir Sherard expressed optimism about Shenzhen’s remarkable development over the past 40 years, saying: “CBBC is committed to utilising its advantages to help British businesses gain a better understanding of Shenzhen.”

Sir Sherard conducting a meeting with the Tencent team in Europe and China

Later the same day, Sir Sherard and Andrew Seaton visited Hetao Shenzhen-Hong Kong Science & Technology Innovation Zone with Huang Wei, Party Secretary of Futian District, and before engaging in a discussion with Henry Rong, Associate Director, I&T Ecosystem Development Greater Bay Area of Hong Kong Science and Technology Parks Corporation (HKSTP), accompanied by Zhu Jiang, Deputy District Governor of the Shenzhen Futian District People’s Government. Sir Sherard then toured the Tencent Exhibition Hall and conducted a meeting with the Tencent team in Europe and China.

Sir Sherard speaking at the welcome dinner for the UK-GBA conference

In the evening, CBBC hosted the Welcome Dinner for the UK-GBA Conference with over 50 attendees from the governments and businesses of the UK and China. During the dinner, Sir Sherard highlighted that “the British business community is watching the development of the GBA with huge interest, considering it to be an important driver for their China operations.”

On Tuesday, 21 November, CBBC hosted the inaugural UK-GBA Conference in Shenzhen in collaboration with the Qianhai International Talent Hub. The event saw the participation of over 200 delegates and provided a platform for more than 40 speakers, including senior representatives from the British Government, GBA local governments, and senior representatives from British and Chinese companies based in the UK, cities in the Chinese mainland, and Hong Kong.

Andrew Seaton speaking at the UK-GBA Conference

In his opening remarks, Sir Sherard emphasised the abundant opportunities in the GBA. While acknowledging the challenges of establishing a major economic hub, he emphasised CBBC’s role in providing a platform for members to share their vision of the future of the GBA, saying, “CBBC has designed this conference to enhance understanding and awareness of opportunities and challenges, whether for UK business in the GBA or GBA companies looking to invest in the UK.”

Meetings and Events in the Yangtze River Delta

Sir Sherard meeting with Shanghai Vice Mayor Xie Dong

On the first day of the delegation’s visit to Shanghai on Wednesday, 22 November, Sir Sherard met with Shanghai Vice Mayor Xie Dong.

During the meeting, Sir Sherard emphasised CBBC’s determination to maintain a healthy and stable bilateral trade link and expressed CBBC’s dedication to collaborating with Shanghai under the MoU signed with InvestSH.

Subsequently, Sir Sherard and the delegation visited Fosun, a premium member of CBBC, where they were hosted by Thomas Tam, Co-Chairman of GreaterYuGarden Commercial Properties Group.

The UK Investment Roundtable brought together a group of existing and potential Chinese investors in the UK

Continuing their visit, CBBC hosted the UK Investment Roundtable, aiming to gain insights from Chinese investors on the UK as an investment destination. Additionally, CBBC shared how it and its members can support Chinese investors in doing business in the UK. Attendees included Chinese investors Fosun, Nanjing Jufeng, Yigu Tech and Zero Carbon System, along with CBBC members DLA Piper, Deloitte, PwC, and KPMG.

Cutting the ribbon on CBBC’s new Shanghai office

Sir Sherard and Andrew Seaton also cut the ribbon on CBBC’s new Shanghai office in the Oriental Center next door to Taikoohui on Nanjing West Road alongside Dame Caroline Wilson, HM Ambassador; Matt Burney, British Consul-General Shanghai; Zhu Yi, Deputy Director of the Shanghai Municipal Commission of Commerce; Duncan Clark, Vice Chair, CBBC; and Tom Simpson, Managing Director, China, CBBC.

The following morning, on Thursday, 23 November, Andrew Seaton departed for Ningbo and visited the future factory of Orient Cable and explored ways to support Orient Cable’s growth in the UK.

Sir Sherard meeting with Jiangsu Provincial Governor Xu Kunlin (image captured from video recorded by Jiangsu Television)

Also on Thursday, 23 November, Sir Sherard met with Jiangsu Provincial Governor Xu Kunlin. The meeting was joined by Lu Deming, Secretary General of Jiangsu province, and Matt Burney, British Consul General in Shanghai.

Xu Kunlin welcomed Sir Sherard and the delegation and expressed appreciation for CBBC’s support of Jiangsu and the UK’s trade and economic cooperation. Xu hopes for more British investment and business expansion in Jiangsu, especially in fields like scientific innovation, financial services, green energy and the digital economy.

Sir Sherard recognised Jiangsu’s economic strength and positive growth momentum. He stressed that CBBC and its members will continue to seek out opportunities in Jiangsu.

Sir Sherard meeting Suzhou Party Secretary Liu Xiaotao

Sir Sherard also met with Suzhou Party Secretary Liu Xiaotao. The meeting was joined by Ji Jing, Vice Mayor of Suzhou.

Liu recognised the solid foundation and significant potential in economic and trade cooperation between Suzhou and the UK. He hoped that CBBC will continue to play its role as a bridge, inviting more multinational companies to expand their investment in Suzhou. Suzhou expects a stronger presence of British companies and encourages them to launch new goods, technologies and projects in the city.

Sir Sherard highlighted that Suzhou is a beautiful and prosperous city by the water that offers a favourable business environment and abundant opportunities.

Sir Sherard meeting Nanjing Party Secretary Han Liming

On Friday, 24 November, Sir Sherard met with Nanjing Party Secretary Han Liming. It was agreed that both parties would continue to work together in the areas of finance, telecommunications, and the chemical industry while looking for new opportunities to collaborate in trade, technology, culture & tourism, biomedicine, digital economy and green energy. Since the founding of CBBC’s Nanjing office in 2004, CBBC has supported British companies operating in Nanjing as well as Nanjing companies growing internationally.

Meetings and Events in Beijing

Group photo of senior representatives of CBBC and member companies in front of the Great Hall of the People

On Monday, 27 November, Sir Sherard, met with Vice Premier He Lifeng at the Great Hall of the People in Beijing. They discussed international cooperation in supply chains, as well as UK-China economic and trade cooperation.

Vice Premier He Lifeng said that China is dedicated to opening up and development. It is hoped that CBBC will continue to leverage its advantages to enhance trade and economic cooperation between the two countries. Sir Sherard echoed this sentiment, saying: “CBBC welcomes the opportunity to meet with Vice Premier and discuss British trade and investment with China. CBBC will continue to provide a platform for engagement between British business and our partners in Government and business here in China.”

Sir Sherard and Andrew Seaton meeting Li Yunze, Minister of the National Financial Regulatory Administration (NFRA)

Sir Sherard also met with Li Yunze, Minister of the National Financial Regulatory Administration (NFRA) at their office in Beijing. The discussion covered market access for foreign financial institutions, pensions and asset management, wealth management, the prospect of continued regulatory liberalisation, and green and sustainable finance.

Sir Sherard also met with Jin Zhuanglong, Minister of Industry and Information Technology (MIIT) to discuss topics including digitalisation, AI, new energy vehicles, and green transition. During the meeting, Sir Sherard and Jin Zhuanglong reflected on the outcomes of CBBC and MIIT’s collaboration under the framework of the first UK-China Industrial Cooperation Dialogue (ICD) in critical areas of new technologies.

Cutting the ribbon on CBBC’s new Beijing office

While in Beijing on 27 November, Sir Sherard and Andrew Seaton officially opened CBBC’s new Beijing office at an event alongside Geraldine McCafferty, Deputy Head of Mission, British Embassy Beijing; Yang Song, Deputy Director-General, China Economic Cooperation Center (CECC); Tang Yonghong, Deputy Director-General, Invest Beijing; Zhou Xiaoyan, Vice President, China Council for International Investment Promotion (CCIIP); and Tom Simpson, Managing Director, China, CBBC. After 20 years in the China Life Tower, the CBBC Beijing office has relocated to Guanghua Soho II in Guomao.

Sir Sherard giving a speech at the opening ceremony of the China International Supply Chain Expo

On Tuesday, 28 November, Sir Sherard attended and spoke at the inaugural China International Supply Chain Expo & Global Supply Chain Innovation and Development Forum. In his speech at the opening ceremony, Sir Sherard said: “Building a stable, secure, and smooth worldwide industrial supply chain system represents the common aspiration of global businesses and it is the shared responsibility of the international community. I am delighted that UK-China relations are once again starting to flourish, with ministerial visits resuming – I am confident that we will see more engagement at all levels over the coming year.”

Image sources:

1. Lead article image captured from this video recorded by CCTV 1
2. Image of Sir Sherard meeting Jiangso Governor Xu Kunlin captured from this video recorded by Jiangsu Television

The post Recap: CBBC Chair and Chief Executive November 2023 Visit to China appeared first on Focus - China Britain Business Council.

The event saw the participation of over 200 delegates and provided a platform for more than 40 speakers, including senior representatives from the British Government and Greater Bay Area (GBA) local governments, and senior representatives from British and Chinese companies based in the UK, cities in the Chinese mainland, and Hong Kong.

Throughout the full-day programme, the discussions focused on the latest developments and strategies for British companies in the GBA region, covering topics ranging from data and technology to trade in services and goods. The conference also explored the potential for investment in the UK by Chinese companies from the region.

Sir Sherard Cowper-Coles, Chair of CBBC, delivering opening remarks at the UK-GBA Conference

In his opening remarks at the Morning Plenary Session, Sir Sherard Cowper-Coles, the Chair of CBBC, highlighted the abundant opportunities in the GBA, including enhanced connectivity, the size of the market, the depth of the talent pool and the policy incentives available. While acknowledging the challenges of establishing a major economic hub, he emphasised CBBC’s role in providing a platform for members to share their vision of the future of the GBA, saying, “CBBC has designed this conference to enhance understanding and awareness of opportunities and challenges, whether for UK business in the GBA or GBA companies looking to invest in the UK.”

Guangdong Governor Wang Weizhong delivering opening remarks at the UK-GBA Conference

Guangdong Governor Wang Weizhong, in a video message during the morning plenary session, said, “We hope that investors all over the world will seize the opportunity to come to China, Guangdong and the GBA to explore the Chinese market and achieve new accomplishments. Guangdong is willing to join hands with our friends from the UK to work closer under the framework of China-UK relations to realise mutual benefits on a higher level and with higher quality.”

Tom Simpson, Managing Director, China, China-Britain Business Council welcoming attendees

Also offering welcome remarks during the morning plenary session were Tom Simpson, Managing Director, China, China-Britain Business Council; Sarah Mann, Consul-General, British Consulate Guangzhou; Zhu Xiaojun, Deputy Director-General, Department of Commerce of Guangdong Province; and Dr Jimmy Chiang, Associate Director-General, Invest Hong Kong

The event continued with keynote speeches from three key speakers: ‘New Opportunities for International Cooperation in the Greater Bay Area (Qianhai)’ by Huang Xiaopeng, First Deputy Director-General, Qianhai Authority; ‘London – Technology, Innovation & Building Global Communities’ by Janet Coyle, CBE, Managing Director, Grow London at London & Partners; ‘Opportunities for Foreign Companies in the Greater Bay Area and HSBC’s Strategic Choices’ by Richard Li, Managing Director, External Relations, South China, HSBC; and ‘Transformation and Growth Through Uncertainty’, by Andrew Harding, FCMA, CGMA, Chief Executive, Management Accounting, AICPA & CIMA.

This was followed by two CBBC-moderated discussions on capitalising on the GBA’s potential for cross-border cooperation and the role British business can play in the development of a sustainable and economically diverse GBA integration strategy.

In the afternoon, attendees had the option to attend one of two sub-forums on ‘International Technology and Innovation Cooperation in the GBA’ and ‘Growth Beyond Borders: Expanding Your Business into the UK and Beyond’, respectively.

Wang Jinxia, Deputy Director General, Qianhai Authority, delivering the opening remarks at the ‘International Technology and Innovation Cooperation in the GBA’ Sub-Forum

Looking ahead, CBBC remains committed to building on the inaugural UK-Greater Bay Area Conference and investigating the future opportunities between the UK and the GBA.

Thank you to our partner, the Qianhai International Talent Hub; our gold sponsors, BSI, HSBC and London & Partners; our silver sponsors, AICPA & CIMA, Berkeley Group and the Welsh Government; and our supporting organisations, the British Chamber of Commerce Guangdong, the British Chamber of Commerce in Hong Kong, the Chinese General Chamber of Commerce Hong Kong, Invest Hong Kong, Guangdong Chamber of International Commerce, China Council for the Promotion of International Trade Shenzhen, China Chamber of International Commerce Zhuhai Chamber of Commerce, the Hong Kong Chamber of Commerce Qianhai and Shenzhen Outbound Alliance.

Click here to see more photos from the event

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In 2021, China was the UK’s third largest trading partner, after the US and Germany. It was the UK’s sixth largest export market for goods and the single largest source of imports. Indeed, the UK’s links to China via goods trade, tourism and education support an estimated 114,000 to 129,000 jobs across the country, according to a 2020 report by Cambridge Econometrics.

Perhaps unsurprisingly, the first quarter of 2022 saw UK goods exports to China decrease 12.8% compared to the same period a year earlier. They were also down 11% lower compared to the last quarter of 2021, according to HMRC data. That said, the data leaves no doubt about the continued importance of the Chinese market to the UK, with some individual regions and sectors performing particularly strongly.

“While the past few months have been challenging, it’s encouraging to see our trading relationship going from strength to strength, with most UK regions reporting record export levels,” said Andrew Seaton, Chief Executive of China-Britain Business Council. “UK exports to China are proving resilient and generate employment and prosperity across the UK. Making sure that UK businesses are getting their fair share of the China market opportunity – including its dynamic consumer market, driven by its large and growing middle class – is more essential than ever to the UK’s recovery and future growth.”

Apart from the seasonal effect of Chinese New Year – which means a general decline of Chinese demand during the first months of the year – the biggest reason for weaker exports were a decline in key British exports of road vehicles (down 14% from £940 million to £807 million), petroleum (down 29% from £651 million to £462 million) and medicinal & pharmaceutical products (down 46% from £482 million to £261 million) compared to the first quarter last year. Together, these exports constituted 70% of all British goods exports to China in Q1 2021 versus 58% in Q1 2022.

On the positive side, exports of professional, scientific & controlling instruments (up 16% from £143 million to £165 million), power generating machinery (up 10% from £180 million to £198 million) and non-ferrous metals, e.g. platinum (up 8% from £185 million to £200 million) all witnessed higher Chinese demand in the first three months of 2022 than in the same period in the previous year. Their overall share of China-bound exports increased from 17% to 21% between the first quarters of 2021 and 2022. 

My advice to British businesses looking to expand, is to tap into the dynamic Chinese market – it is unrivalled in terms of its sheer size and potential for growth — Andrew Seaton, Chief Executive of China-Britain Business Council

Among the UK regions, Wales retained the strongest growth in goods exports to China, seeing an increase of nearly 23% year-on-year in the first quarter of 2022 compared to the same period last year. The success in Wales is mainly due to growing demand for specialised machinery – especially in the semiconductor business – with the Principality’s exports of this product category surging by 121% year on year (YoY) in the first three months of 2022.

Besides Wales, the North East (+10% YoY), the East Midlands (+2% YoY) and the South West (+2% YoY) also experienced positive growth in goods exports to China in that period.

By contrast, Scotland (-59% YoY), London (-14% YoY), and the West Midlands (-26% YoY) were impacted by the slump in exports of road vehicles and petroleum, even though most of their remaining exports maintained stable levels with few changes compared to the previous year.

Overall, the Q1 2022 data shows that China remains an important growth market for high-quality and high-value adding UK manufacturers and businesses, even though the large export share of a few items (road vehicles and petroleum) can lead to stark fluctuations in overall export figures.

The China Trade Tracker was launched by CBBC in October 2021. Produced every quarter, it acts as an ‘always-on’ reference tool providing the facts and figures about UK-China trade and the impact on the UK economy, including at the regional level, of trade with the world’s second-biggest economy.

Each issue of the China Trade Tracker provides an overview of the impact of Chinese trade in the first quarter of 2022 and detailed analysis of each region across the whole of the UK. It draws on Government, HMT, DIT and ONS data, compiled by CBBC’s specialist analysts.

Click here to read issue 5 of the China Trade Tracker

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CBBC’s business support services have continued to go from strength to strength and our Membership offering has continuously evolved and improved to best meet the varied needs of our diverse Membership.

In a post-Brexit world UK companies need to look East. Demand from the growing Asian middle class is the key opportunity for UK business in the coming decades – with China at the heart of this. The China-Britain Business Council, as the voice and the vehicle for UK / China business, has an essential role to play in helping our Members develop their business in China — Adriaan Commandeur, Chief Membership Office, CBBC

Take a look back at CBBC’s work over 2021-2022 in the infographic below:

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

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