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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The Visit

On the visit, CBBC Chair Sir Sherard Cowper-Coles and I were accompanied by a number of CBBC Board members, as well as local representatives of CBBC member companies.

The itinerary was intensive: starting with two days in Shenzhen, including holding CBBC’s first UK-Greater Bay Area Conference; then onto Shanghai, Nanjing, Suzhou and Beijing (and in my case, fitting in Ningbo and Tianjin on top). I also visited Hong Kong, reflecting the CBBC Board’s decision that we should be taking the Hong Kong dimension to UK-China trade more into account in our work.

Throughout the visit, we were received at a very senior level, the highlight being a meeting with Vice Premier He Lifeng. We also met, amongst others, the Ministers of Industry and Information Technology (MIIT) and of Financial Regulation (NFRA); the Governor of Jiangsu province; Party Secretaries (i.e. the most senior official) in Shenzhen, Nanjing and Suzhou, and the Vice Mayor of Shanghai.

The tone of these meetings was uniformly positive. It is clear that reviving foreign investment and trade flows is a priority for China both at the local and State government levels. In all our meetings, there were positive references to further improving the environment and opportunities for foreign investors.

I was also struck by how often increasing China’s imports and the size of the Chinese market for UK exporters was stressed. We took the opportunity to urge further movement to create a genuine level playing field for international business and that wherever possible, ‘national’ treatment should apply – i.e., that foreign business should be able to operate on the same basis as domestic business. We also urged the greatest possible policy clarity and certainty, including in areas such as data.

During the visit there were positive references to the appointment of Lord Cameron as Foreign Secretary – this being seen by both officials and private individuals as a good sign for the UK-China business environment.

We were also able to meet a wide range of CBBC member companies, including at the well-attended openings of our new offices in Beijing and Shanghai. The move to the new and much improved offices is a statement of CBBC’s commitment to our work across China on behalf of our members.

Photos: CBBC, in collaboration with the Qianhai International Talent Hub, hosted the inagural UK-Greater Bay Area Conference in Shenzhen on 21 November

Economy

On the economy, the picture is clearly mixed. Vice Premier He expressed confidence that China would achieve its 5% GDP growth target this year (and it is worth remembering that in an economy the size of China’s, 5% growth would create a new Switzerland).

However, problems in China’s real estate sector have been well documented. We saw evidence of this in ‘ghost towns’ – uncompleted or unoccupied property developments on the outskirts of a number of cities – whilst we were travelling on the high-speed train from Nanjing to Beijing. This clearly has implications in a number of areas, including local government finance, the construction industry, and consumer confidence.

The recovery of consumer demand, in particular from amongst the broader middle class, has been slower than anticipated at the start of 2023. Meanwhile, investment activity by the domestic private sector remains weak as confidence has yet to recover following a prolonged period of difficulty resulting from a combination of regulations and Covid restrictions.

On the other hand, demand from affluent and young consumers remains strong. Most impressive to me was the continued emergence of Chinese technology-led companies, often heavily IP-based, and with cutting-edge innovation and ambition to scale at speed. This was particularly visible in the low/zero carbon area, with a wide array of new NEV auto brands present on China’s roads but also in batteries and broader renewables technologies.

Sir Sherard Cowper-Coles met with Shanghai Vice Mayor Xie Dong on 22 November in Shanghai

UK Business

The weakness in Western portfolio investment into China has been widely reported. Real businesses doing real business in China seem to be taking a different view. It became clear during the visit that a number of CBBC’s larger member companies have made major investments in China over the past year, including AstraZeneca, IHG, GSK, HSBC, Johnson Matthey, and JLR.

A common theme when talking to UK businesses on the ground was that they could not not be in China, that they were continuing to invest because of the market’s size, scale and expected growth level over the coming decades, and because in many sectors technology being deployed by Chinese players was world-leading. For many companies to remain globally competitive, they must be active in the Chinese market.

Sir Sherard Cowper-Coles spoke at the China International Supply Chain Expo in Beijing

The Role of the China-Britain Business Council

The visit also demonstrated the collective weight of voice that CBBC represents and the unique and pivotal position it has in the UK-China business relationship.

In Beijing, Sir Sherard Cowper-Coles gave a speech at the opening of the inaugural China Global Supply China Conference, which was opened by Premier Li Qiang. CBBC was the only national trade body invited to speak at this ceremony, while Sir Sherard sat next to Premier Li.

That weight comes from the support and engagement provided by you as CBBC members. This enables CBBC, in turn, to fulfil its role as the voice of, and advocate for, the economic relationship between the UK and China.

I am very grateful for the strong support we received from many CBBC members during the visit. It was a real pleasure to be able to meet so many of you at our meetings, roundtables and at the openings of our new offices. We really are blessed to have such a vibrant and energetic community of members across China.

Looking ahead, we will be building on the success of this November as we move into next year and are already looking at options for the next visit. We look forward to discussing it with you and hearing your ideas and suggestions on how we can build another impactful and productive programme.

On behalf of everyone at the CBBC, we wish you a very Merry Christmas and a Happy New Year, and look forward to continuing to work with you closely in 2024 and beyond!

The post Andrew Seaton on the CBBC Chair’s November Visit to China appeared first on Focus - China Britain Business Council.

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

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