China is still the global driving force for growth

IMF has recently upgraded its estimate for China’s growth in 2016 from 6.3% to 6.5% (source: IMF) despite it has lowered its global growth projection from 3.4% to 3.2%. The world’s second largest economy expanded by 6.9% in 2015. Although this was as fast as it has been in the last 25 years, China’s growth is still higher than the US and the euro zone.

It is quite easy to get bogged down in the short-term volatility of the stock markets as it affects global economic confidence. However, one must not overlook the bigger picture that the Chinese economic fundamentals are sound. One strong indicator is China’s outbound investments which have grown steadily over the last decade. China’s overseas direct investment in 2015 in the UK increased three times in deal values in comparison with 2014 and 40% across the EU, according to Grant Thornton.

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Chinese leading region Guangdong warming up partnership with the Thames Valley

(from Business Voice, January/February 2016, Thames Valley Chamber of Commerce Group)

The headline deals of £30 billion contracts signed between UK and China during the state visit of Chinese President Xi Jinping and his large business delegation in October are unprecedented in its scale. The sectors and regions across the UK involved are so wide ranging and projects so high profile that it feels that this may be a sign of long waited floodgate moment. Further deals have already come quick and fast since October. From ABP’s £1.7 bn London Royal Dock development in Newham to the NNL/CGN’s investment in the £24 bn Hinckley Point power station; from Beijing Construction Engineering Group (BCEG) £130 m to finance the ‘China Cluster’ in Manchester’s Airport City to the SinoForturen’s £2 bn investment in UK’s Orthios Eco Parks at Holyhead and Port Talbot. Two Chinese airlines have announced direct flights to Manchester since the visit, and in December, Chinese company CMC has agreed to invest $400 m in Manchester City Football Club. No wonder that both Britain and China declare now as the beginning of a golden era in the bilateral relationship.

Partnership with Guangdong Province

Guangdong is the biggest Chinese domestic regional market with 104 m population, one tenth of China’s GDP and a quarter of China import and export.

Closer partnership between BCC LinkToChina programme with the Guangdong Province in the last few years has led to the agreement for the Guangdong Economic & Trade Office to be co-located with LinkToChina in the Thames Valley Chamber of Commerce in late 2014. During the year of 2015, Guangdong government and businesses are warming up to the opportunities in London – Thames Valley market which has received an increasing number of Guangdong delegations from the Provinces and the cities of Guangzhou, Zhuhai, Shenzhen, Foshan, Chaozhou and Shaoguan.

The Chairman of Guangdong Province chamber CCPIT Guangdong, Mr Chen Qiuyan, led a group of senior chamber officials to visit the UK in October, were in Thames Valley Berkshire and held talks with key partners to Guangdong. Mr Chen were impressed by what Thames Valley have to offer as a location for Guangdong investors and emphasised the province willingness to work with the Thames Valley in increasing the awareness about Thames Valley in Guangdong. On 19 October, a business delegation from the City of Foshan worked with Bracknell Forest Council to stage a seminar in Bracknell which was attended by over 40 local participants.

Chinese Investors from Guangdong

Chinese investors from Guangdong are well represented in the Thames Valley. The largest Chinese investors, Huawei Technologies (Reading Green Park), and others such as TPLink, Hytera Telecommunication UK Ltd have been doing well in Berkshire as well as those in London like Ping An Insurance and China Merchants Bank. In 2015 we welcome a new comer in ZTE (UK) Ltd to Slough. ZTE is a global player in telecommunication sector and the relocation of its UK headquarters to the Thames Valley region will be seen as a significance endorsement to Thames Valley as the ‘Silicon Valley’ in UK. Already ZTE has become a Chamber’s Business Alliance member and started to play an active part in the local business community. We have also witnessed the continuing expansion of Hytera in Segro’s Slough Trading Estate. There are a number of investors in the pipeline looking at setting up shops following the above examples.

Great opportunities in Thames Valley for Guangdong and vice versa

Arguably Guangdong is China’s capital of commerce and hub of the world’s manufacturing. There are thousands of Guangdong companies actively doing business with the UK and many of which have potential in working with Thames Valley. Mr Chen of Guangdong CCPIT believes that there is much room for growth in the region for Guangdong companies and urges Thames Valley to strengthen its promotion and marketing activities in Guangdong.

Guangdong has been chosen by the Chinese central government to set up Free Trade Areas in Cities of Guangzhou (Nansha), Shenzhen (Qianhai) and Zhuhai (Hengqin) which have been set up to pilot new policies (including lower tax bands) supporting the simplification of business set up and operation for overseas companies including British firms doing business in China. Many growing business sectors in Guangdong match well with those of sector strength in Thames Valley such as ICT, hi-tech engineering, automotive, education, etc. There are new opportunities in sectors undergoing further opening and reform such as finance, public services, health care and medicine, tourism, etc.

BCC LinkToChina and the Guangdong Office has announced that in 2016 the development will be supported by large business delegations from Guangdong to visit the Thames Valley, and vice versa a Thames Valley Trade Mission to Guangdong and Hong Kong plus Chinese investors event featuring case studies in additional to the regular programmes of activities. For further details please contact Dr Kegang Wu on 01753 870 571 or visit www.linktochina.org

 

1601 Biz Voice Thames Valley 1601 Guangdong and UK Thames Valley

 

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Guangdong (Foshan) – UK (Thames Valley) Business Seminar

Monday 19th October 2015 (09:30 to 13:00)

Venue: Downshire Room, Easthampstead Park Conference Centre, Peacock Lane, Wokingham RG40 3DF

A multi-sector group of business leaders from the Chinese City of Foshan (Guangdong),  seeking trade and investment cooperation with the UK companies, will be at this seminar.

The group ( 201510 Guangdong (Foshan) – Thames Valley (Bracknell) Foshan delegate details V4) is consist of 10 senior business leaders and managers from manufacturers of electric appliances and lighting, FMCG, international trade services, real estate development, media (film and TV) and tourism, and building material, and other sectors. Some companies are seeking for agents and distributors while others are open to investment opportunities in the UK. British companies interested in China market and or interested in any of the companies listed or the relevant sectors are encouraged to attend. The seminar is free of charge.

The visit is a return visit to one to Guangdong last year by a Thames Valley delegation to Guangdong. BCC LinkToChina and Bracknell Forest Council who are co-hosting this seminar to afford this opportunity for local British companies to meet the group.

Foshan, located immediately in the western suburb of the provincial capital Guangzhou (Canton), is one of the key prefecture-cites of Guangdong Province well-known in the world for its strong manufacturing in sectors such as household, electrical appliance, tool manufacturing, furniture, electronics and communications, stainless steel products, plastic products and ceramics.

The Foshan City Chamber (CCPIT) will also present at the seminar Foshan’s business opportunity, especially the business incubator-style China-European Centre where funding support, government support, and business support are organised to encourage British business in various sectors, including robotic technologies, 3D-printing etc. to work with Chinese market.

BCC LinkToChina and its strategic partners have been developing stronger business links with the Guangdong province and China. The work of promoting the Thames Valley as the Silicon Valley of the UK has resulted in Chinese investments in places like Bracknell and Slough. This seminar will also show how local British companies can get involved in the programme of LinkToChina, including a trade mission to Guangdong in next year.

British businesses that are interested in doing business with China and those that are already engaged with Guangdong are encouraged to make the most of this rare opportunity.

Seminar Programme:

09:30   Arrive and registration at Easthampstead Park Conference Centre, Bracknell, Berkshire.

10:00   Welcome by Bracknell Forest Council

10:15   Thames Valley as a preferred business location for Guangdong companies looking to invest (presentation by Bracknell Forest Council)

10:45   Introduction of Foshan delegates and presentation about the business environment of Foshan (speaker: Ms Deng Xiangwen, Vice-chairman, CCPIT Foshan).

11:00   Foshan Industrial Park and China-European Services Center (speaker: Mr. Shi Weixiong, Deputy General Manager, Development and Construction Company of Foshan New City).

11:15   Thames Valley as the Launchpad for Guangdong companies – the project of Guangdong Marketing and Branding Centre in UK (speaker:  Kegang Wu & LinkToChina partners)

11:45   Q&A

12:00   Lunch and networking

13:00   End of seminar

Please reserve your place by contact Bracknell Forest Council:

RSVP: James Sackley, Business and Enterprise Officer –

T: 01344 351454

E: james.sackley@bracknell-forest.gov.uk

Or fill in the contact form:

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Opportunities for British participation at Guangdong Expo

Guangdong (China) 21st Century Maritime Silk Road International Expo

29 – 31 October 2015 (Dongguang, Guangdong, China)

Guangdong – the Window of China trade

Guangdong is China’s undisputed capital of trade — one-fifth of the total import and export of the world largest trading nation are traded through Guangdong.

As the official Windows of Chinese manufacturing since 65 years ago because the well-known Canton Fairs, it is a natural place in China to find opportunity for export and new product for import, to commission manufacturing, or to find agent and distributors and offer services to traders.

Increasingly investors from China active in the UK are also dominated by companies from Guangdong – Ping An, CGN Power, Huawei Technologies, ZTE Corporation, etc. And even more so if companies from the neighbouring Hong Kong are included.

New business opportunities from China are no longer driven only by low cost manufacturing. China is now hungry for overseas investment; importation of good quality British products and services; and can offer new market opportunities in a number of new sectors as it move toward a new balanced development, greener energy, value-added manufacturing, technology driven enterprising and service-oriented expansion.

Labelled as the ‘New Norm’, Guangdong is at the forefront of new business opportunities – the Free Trade Zones in Guangzhou (Nansha), Zhuhai (Hengqing) and Shenzhen (Qianhai); the Shantou Bay Cultural pilot district; new financial hub, air logistic hub; to name but a few.

China is catalysing its new proactive outward looking trade and investment strategy as ‘One Belt One Road’ – the New Silk Road Economic Belt and the 21st Century Maritime Silk Road. Chinese businesses, with huge financial support of governments, are spear-heading a trading drive and investment drive in working with many overseas countries. Great Britain that has become one of the top destinations for Chinese investors in recent years and has steadily increased export of products and services to China, is poised to benefit, not least that the Chinese President, Xi Jinping, himself has chosen the UK as the country he would visit in October this year. Guangdong is again the choice for staging this all important international marketing trade show.

The Guangdong Expo

The Guangdong 21st Century Maritime Silk Road International Expo, or Guangdong Expo, is a great opportunities for British companies and organisations interested in meeting high quality Guangdong businesses and in marketing Britain’s products, services and investment opportunities. The same event last year reportedly attracted over 1000 top Guangdong companies (exhibitors), 6000 overseas trade visitors and 15,000 buyers.

Key sectors for the Guangdong Expo’s exhibition (Donguang):

  1. Construction: Building materials, interior fitting-out and decoration materials,
  2. Engineering machineries and special purpose vehicles, machinery parts and components
  3. Foods and agro-products: processed foods, heath foods, frozen foods, cooking ingredients, seafood, soft-drinks, beverages, coffee, tea, fruits, dried fruits, green foods
  4. Tea industries: tea (green team, black tea, oolong tea, white tea, dark tea; processed tea foods and drinks, tea making sets, products of tea tree and roots, and other tea cultured products
  5. Porcelain and fine china: decorative, household, giftware and artistic/designer porcelain and fine china products
  6. Silk Industries: raw materials, fabrics, garments, giftware and other silk and silk-blended products including cultural products such as images and videos etc.
  7. Tourism industries
  8. Port City Forum: A special economic forum for the cooperation of port cities (Guangzhou)

This is a great opportunities to explore the potential of the Guangdong (China) market if you are new to the market and to renew old and forge new links with one of the most important economic hubs of the 21st century. For companies that are already booked to visit Canton Fair, this is a valued-added event just one hour away from Guangzhou Canton Fair.

How to Participate

British companies are encouraged to visit or exhibit at the Guangdong Expo by The Guangdong Economic and Trade Office in the UK which will help to liaise with the Expo organisers in supporting the visit.

The Guangdong Office has appointed BCC LinkToChina to co-ordinate the organisation of UK participants (including those British companies that have subsidiaries in China) for the purpose of forming a group.

Qualified British companies and organisations may be provided with free space in a UK pavilion, free airport pick-up and free hothttps://linktochinadotorg.wordpress.com/wp-admin/post-new.php#el (subject to availability and confirmation) in Dongguang.

Event Organisers and Supporters

The event is organised by the Guangdong Government (China Council for the Promotion of International Trade Guangdong Committee). For the list of Chinese governmental and trade bodies please refer to the Invitation from the Organiser: 1510 Guangdong Silk Road Expo Appendix Buyers guide from GD.

For further information please contact BCC LinkToChina on 01753 870 571 or send us any enquiry

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Chinese telecom giant ZTE set up new UK headquarters

Thames Valley’s reputation as the Silicon Valley of the UK on attracting global technology companies has been enhanced by the arrival of a special newcomer. ZTE, which is a leader in global telecommunication sector, has chosen Berkshire as the new location for its British HQ.

ZTE (UK) Ltd officially opens its office in central Slough this month (June 2015), after a long search for a HQ location in the UK.

With its global HQ based in Shenzhen, Guangdong Province of China, ZTE Corporation is a €8 bn turnover manufacturer and supplier of telecommunications equipment. The Company operates its businesses in comprehensive ranges of operator network, terminals, as well as telecommunications software, services and other products.

According to the Digital Trend in 2013, ZTE is the 3rd most popular smart phone provider in the USA beating a whole host of household names.

The multinational leader of R&D in the world’s telecommunication sector ranked 3rd in numbers of global patents filed in 2012 and 2013. ZTE sees great potential in the UK and has big ambitions to repeat its successes in the UK following those in many markets like the USA, Germany, France and Spain.

Relocating the UK headquarter to the heart of UK’s international technology hub in Thames Valley is a key strategic decision. After careful consideration of various sites recommended and facilitated by BCC LinkToChina Programme and its partners, ZTE (UK) has finally made the move. Mr Tony Chen, Managing Director of ZTE (UK) Ltd, says “we are a multinational company with operations in over 100 countries in the world. Therefore it is extremely important for our head office to be in location well connected with other global brands in our sectors and our UK telecom clients. We are very pleased with the Thames Valley region.”

BCC LinkToChina is based in Thames Valley Chamber of Commerce and has been working with Slough Borough Council, Bracknell Forest Council, Segro (Slough Trading Estate), Oxford Properties (Green Park, Reading), Wilkins Kennedy and Blake Morgan in China. The programme operates a trusted business partnership support package and business match-making platform for British companies and Chinese companies to identify market opportunities and set up business cooperation. Its support ‘helped ZTE in every step of its relocating preparation and couldn’t have been more welcoming in making the move possible’, according to Tony Chen.

Chinese investors, in particular technologies companies, have become more active  in their global expansion and have targeted the UK as a key destination. Many of them are from the Chinese Capital of Trade, the Guangdong Province, which has many cities of major technology industrial hubs such as Shenzhen. BCC LinkToChina and its partners have run their annual China marketing campaign to Guangdong and many of its 21 prefecture cities and have established a strong partnership with the authorities, trade bodies and businesses in the Guangdong.

Many of the Guangdong companies, such as ZTE, Huawei Technologies, Hytera and TPLink have chosen the western London – Thames Valley region as their UK HQ locations to gain better access to the hub of global technology companies in the UK.

Dr Kegang Wu, Chief Representative of the Guangdong Economic and Trade Office in the UK, said “I am pleased to see yet another Guangdong company finding an ideal location for their UK HQ. I was involved with BCC LinkToChina and its partners who played an instrumental role in helping ZTE and other Guangdong companies in their effort to invest in the UK”. “ With more Chinese companies interested in investing in the UK and better policy support from Guangdong such as the recent Free Trade Zones, I am confident that success of ZTE (UK) in doing business here will serve as flagship for others to follow.”

Ruth Bagley, chief executive of Slough Borough Council, who has visited China with the LinkToChina programme twice since 2013, said: “Very few towns in the UK are as connected as Slough is to London, the rest of the country and the world.

“That, coupled with the massive regeneration and infrastructure projects underway, makes Slough an ideal destination for any company wanting to grow their global business.

“We have great pleasure in welcoming ZTE to Slough and look forward to working closely with them once they’ve settled in.”

Councillor Sohail Munawar, commissioner for social and economic inclusion, said: “We’ve put in a lot of effort, through our work with LinkToChina, to promote Slough on the world stage and highlight the many opportunities on offer for businesses.

“It seems our efforts are paying off, with the relocation of Hytera last year and now ZTE.

“This is fantastic news for the borough as a whole and in particular the town centre, which will benefit from the added vibrancy a fresh new company will bring.”

The trade and investment partnership between the UK and China is poised to enter a new golden era this year at the back of rapid increase of UK export to China and Chinese investment to the UK in the last few years. As announced in the Queen’s speech last month, the President of China, Mr Xi Jinping, will visit the UK in October for his first state visit to the UK.

For further information, please contact BCC LinkToChina on 01753 870 571 www.linktochina.org

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China to ease requirements to British firms entering China

According to the Guangdong Economic and Trade Office in the UK, Chinese government has today published a draft (in Chinese) “China Foreign Investment Act” for public consultation.

The new law will streamline and simplify the requirements and procedures of foreign companies investing in China, effectively granting foreign firm the much sought-after ‘domestic status’ except those under clear designated “control measures” — either restricted or prohibited, or on a clearly defined “negative list”. The old practice of seeking government approval before registering a joint-venture or a wholly foreign owned enterprise will be the things of the past once the new law is passed.

Once implemented, the three major existing laws on regulating foreign investment registration and operations will be replaced by this single Act. Detailed annual reporting of business operations will fall within the remit of the Company Act.

This will significantly reduce the complicated procedures for British companies and organisations hoping to set up and have a presence in China, especially for British SMEs.

As reported by BCC LinkToChina twitter this month, Guangdong Province has been proved to set up multi-locations Free Trade Area covering more than 100 km square and including parts of Guangzhou (Canton), Shenzhen and Zhuhai. the FTA will be piloting and testing ground for many newer open door policies designed to speed-heading development of emerging sectors and new growth sectors.

 

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Working with China on Technology, Innovation and R&D through Partnership and IPR protection

British SMEs interested in the following areas will benefited from a well supported programme designed to encourage technology and innovation:

  • Looking for a partner in China for R&D and technology cooperation
  • Developing new prototype with support and IPR protection
  • Turning prototype into commercial products
  • Seeking new agent / distributor in China market for existing technologies
  • A UK university team to support product/technology development
  • A Chinese team to support product/technology development and localisation
  • Funding opportunity for new product / technologies development
  • IPR protection / trade mark & patent registration in China

The Lancaster China Catalyst programme will be present and promoted at two of the Thames Valley Chambers free events:

24th Nov 2014 Meet the Chamber (Easthampstead Park Conference Centre, Bracknell Forest)

5th December 2014 Thames Valley Technology Forum (Telefonica O2, Slough)

Registration with Thames Valley Chamber of Commerce website at the links above.

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