Kick Start Your Success in China- How UKTI & CBBC can help
Kick Start Your Success in China- How UKTI & CBBC can help
Kick Start Your Success in China- How UKTI & CBBC can help
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<strong>Kick</strong> <strong>Start</strong> <strong>Your</strong> <strong>Success</strong> <strong>in</strong> Ch<strong>in</strong>a- <strong>How</strong> <strong>UKTI</strong> &<br />
<strong>CBBC</strong> <strong>can</strong> <strong>help</strong><br />
Jasm<strong>in</strong>e Chambers<br />
International Trade Adviser – Ch<strong>in</strong>a<br />
1
Topics<br />
• Ch<strong>in</strong>a today<br />
• Bus<strong>in</strong>ess challenges and issues<br />
• What support is available (from <strong>UKTI</strong> & <strong>CBBC</strong>)<br />
2
The Ch<strong>in</strong>a Context – speed and <strong>in</strong>tensity (1/2)<br />
Shanghai<br />
20 years ago Now
The Ch<strong>in</strong>a Context – speed and <strong>in</strong>tensity (2/2)<br />
Beij<strong>in</strong>g<br />
20 years ago Now
Ch<strong>in</strong>a <strong>in</strong> Numbers 2011/2012 - Economy and Trade<br />
• Ch<strong>in</strong>a GDP growth 7.8% <strong>in</strong> 2012<br />
• 95 USD billionaires (No.1 <strong>in</strong> Asia, Forbes Magaz<strong>in</strong>e)<br />
• GDP / capita = USD5,430 (84 th place, World Bank)<br />
• Largest forex reserves (more than EU27, Japan & Russia comb<strong>in</strong>ed)<br />
Ch<strong>in</strong>a reached eighth of the UK's top export countries <strong>in</strong> 2012, from be<strong>in</strong>g<br />
outside of the top 20 <strong>in</strong> 2010<br />
UK 2nd largest EU <strong>in</strong>vestor <strong>in</strong> Ch<strong>in</strong>a<br />
5
Ch<strong>in</strong>a <strong>in</strong> Numbers 2011/2012 - Infrastructure / Transportation<br />
• Second largest motorway network (84,900km) (target 100K by 2020)<br />
• 180 airports (ris<strong>in</strong>g to 244 by 2020)<br />
• 13,000km hi-speed rail track end 2012<br />
6
Ch<strong>in</strong>a <strong>in</strong> Numbers 2011/2012 - Environment<br />
• 16 of world’s 20 most polluted cities <strong>in</strong> Ch<strong>in</strong>a<br />
• 70% of rivers / lakes too polluted to dr<strong>in</strong>k, fish, use for irrigation<br />
• CO2 emissions per capita 96% of EU15<br />
• Ch<strong>in</strong>a largest <strong>in</strong>vestor <strong>in</strong> clean energy<br />
7
Ch<strong>in</strong>a <strong>in</strong> Numbers 2011/2012 – Retail / Consumer<br />
• Ch<strong>in</strong>a’s population reached
Ch<strong>in</strong>a’s challenges & trends<br />
• Huge divergence – rich/poor,<br />
urban/rural, coastal/<strong>in</strong>land<br />
(better social security system)<br />
• Environment<br />
• Urbanisation<br />
• Ag<strong>in</strong>g population<br />
• Energy & raw materials<br />
• Mov<strong>in</strong>g up the value cha<strong>in</strong><br />
(Gaps: technology, knowhow,<br />
market<strong>in</strong>g…)<br />
• Safety & quality<br />
Chang<strong>in</strong>g priorities<br />
9
Opportunities for UK organisations<br />
• New-style urbanisation - construction of more than 20 city clusters, some 180<br />
cities above the prefecture level and more than 10,000 cities and towns<br />
• Grow<strong>in</strong>g consumer spend<strong>in</strong>g and awareness - 250M “middle class”<br />
• Move up the value-cha<strong>in</strong><br />
• Develop services sectors<br />
• Beg<strong>in</strong>n<strong>in</strong>g of a huge wave of outbound <strong>in</strong>vestment<br />
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Some challenges to companies <strong>in</strong> Ch<strong>in</strong>a<br />
• Language & culture<br />
• Legislation & bureaucracy<br />
• IPR (Intellectual Property Rights)<br />
• SAFE (Controlled Currency)<br />
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Language & culture<br />
Language<br />
• Mandar<strong>in</strong> and other dialects<br />
• Ch<strong>in</strong>ese characters<br />
• Translation & Interpreters<br />
• Language is an opportunity - Some clever brand names:<br />
Orange Tang - guozhen - Fruit Treasure<br />
Gillette – jili – Lucky<br />
Mercedes Benz – ben chi - Striv<strong>in</strong>g Forward Fast<br />
BMW – bao ma - Treasure Horse<br />
Bosch – boshi - W<strong>in</strong>n<strong>in</strong>g all over the World<br />
12
Language & culture<br />
Culture (<strong>in</strong> bus<strong>in</strong>ess encounters)<br />
• Giv<strong>in</strong>g and receiv<strong>in</strong>g bus<strong>in</strong>ess cards<br />
with both hands<br />
• Gift giv<strong>in</strong>g, banquet<strong>in</strong>g, toast<strong>in</strong>g<br />
• The field<strong>in</strong>g, enter<strong>in</strong>g, seat<strong>in</strong>g and<br />
address<strong>in</strong>g of Ch<strong>in</strong>ese delegations<br />
accord<strong>in</strong>g to rank<br />
• Avoidance of anger or conflict dur<strong>in</strong>g<br />
negotiation<br />
• A reluctance to say No<br />
• Views about the contract<br />
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Legislation / Bureaucracy<br />
• No external regulator (e.g.<br />
Brussels)<br />
• Legislation <strong>can</strong> be enacted quickly<br />
• “Local <strong>in</strong>terpretation”<br />
• Legislation <strong>can</strong> be an excuse – hard<br />
to handle at a distance<br />
• Can lead to protracted procedures<br />
– e.g. form<strong>in</strong>g a company,<br />
registration and approval of certa<strong>in</strong><br />
products<br />
14
IPR<br />
• Laws as good as ours<br />
• First to register for trademarks (a particular risk)<br />
• Enforcement improv<strong>in</strong>g (slowly)<br />
• Take legal advice and practical steps<br />
15
Currency<br />
• RMB / Yuan: Controlled currency<br />
• Regulated by SAFE – open<strong>in</strong>g up gradually<br />
• Implications for trad<strong>in</strong>g and <strong>in</strong>vestment<br />
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<strong>UKTI</strong> Ch<strong>in</strong>a<br />
• Network <strong>in</strong> Ch<strong>in</strong>a<br />
– British Embassy <strong>in</strong> Beij<strong>in</strong>g<br />
– British Consulate-Generals<br />
<strong>in</strong> Hong Kong, Shanghai,<br />
Chongq<strong>in</strong>g and Guangzhou<br />
• Sector led trade teams<br />
– Adv. Eng<strong>in</strong>eer<strong>in</strong>g, Life<br />
Science, Education,<br />
Consumer goods, Creative,<br />
Agriculture, Food & Dr<strong>in</strong>k,<br />
Environment…<br />
– Over 90 staff<br />
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Ch<strong>in</strong>a Brita<strong>in</strong> Bus<strong>in</strong>ess Council (<strong>CBBC</strong>)<br />
• Develop<strong>in</strong>g UK trade <strong>in</strong> Ch<strong>in</strong>a s<strong>in</strong>ce 1950’s<br />
• Powerful UK and Ch<strong>in</strong>a network<br />
• Team over 100<br />
• 13 offices <strong>in</strong> Ch<strong>in</strong>a:<br />
Beij<strong>in</strong>g, Shanghai, Shenzhen, Wuhan, Chengdu, Q<strong>in</strong>gdao, Nanj<strong>in</strong>g,<br />
Hangzhou, Shenyang, Chongq<strong>in</strong>g, Guangzhou, Changsha, Xi’an<br />
• ‘Merged’ with British Chamber of Commerce, Beij<strong>in</strong>g<br />
• Delivers the majority trade services for <strong>UKTI</strong> <strong>in</strong> Ch<strong>in</strong>a<br />
• Membership organisation: 800+ companies of all sizes<br />
18
Sample of <strong>CBBC</strong> Members Across Sectors<br />
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What support is available (from <strong>UKTI</strong> & <strong>CBBC</strong>)<br />
Pre-Market Set-Up Post Market<br />
• Market analysis<br />
• Identification of prospects<br />
• Arrangement of meet<strong>in</strong>gs<br />
it<strong>in</strong>erary/programme<br />
• Product launches<br />
• Host<strong>in</strong>g of receptions<br />
• Arrangement of <strong>in</strong>terpreters<br />
• Entry strategy and action<br />
plan<br />
• <strong>CBBC</strong> Set Up Services<br />
• <strong>CBBC</strong> Hot Desk<br />
• Launchpad<br />
• Rep. Office<br />
• Employment Service<br />
• Request for Proposal<br />
• Government lobby<strong>in</strong>g<br />
• Communication Review<br />
• Language & Culture tra<strong>in</strong><strong>in</strong>g<br />
• Network<strong>in</strong>g & Access<br />
• Events and TAP<br />
• <strong>CBBC</strong> Directory<br />
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Contact details<br />
• Jasm<strong>in</strong>e Chambers<br />
• International Trade Adviser – Ch<strong>in</strong>a<br />
• Switchboard: 0845 052 4001<br />
• Mobile: 07825344627<br />
• Email: jasm<strong>in</strong>e.chambers@uktiem.co.uk<br />
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