Advice 建议 Support 支持 Networking 网络 cbbc

1. Opportunities for UK OT’s in China Advice 建议 Support 支持 Networking 网络 www.cbbc.org Kiran Patel – Senior Director, CBBC China 27th June 2019 | UK OT International Trade Summit - Cayman Islands

2. About CBBC (The heart of the UK-China Business Relationship) • CBBC is a Membership Organisation which means … • We are service focussed and Not For Profit • Generating value for members, clients and stakeholders lies at the heart of everything we do • As the UK’s trade association with China, in 2018, CBBC generated over £720m Export Wins for British businesses with China. • Our China Gateway & Consultancy Services enable UK businesses, institutions and organisations of all sizes to succeed in China. • All of this is key to our brand, our authorityand our reputation for integrity 800+ Members 13 Offices in China 9 Sector Teams 130+ China Experts (China & UK) www.cbbc.org Advice 建议 Support 支持Networking 网络

3. About CBBC (China Team) China Sector Teams (25+ Staff) Other Teams (30+ Staff) Regional Network (20+ Staff) Fin& Prof Services Business Environment & IP Creative, Sports & Tourism Government Affairs Beijing Xi’an Education Membership Qingdao Nanjing Retail Events Shenyang Chengdu Shanghai Wuhan Agriculture, Food & Drink Hangzhou MarComms Changsha Chongqing Tech & Innovation Research & Policy Guangzhou Adv Manufacturing & Trans Launchpad Shenzhen HR Energy, Env & Infra Healthcare & Life Sciences Finance www.cbbc.org Advice 建议 Support 支持Networking 网络

4. Our Heritage & Footprint (Some Notable Highlights) 2018 CBBC support visit to China by Prime Minister Theresa May 2015 CBBC support Creativity is GREAT business delegation to China with Prince William & State Visit of President Xi Jinping 1999 CBBC Banquet for President Jiang Zemin during State Visit to UK 1991 China-Britain Trade Group formed through merger of 48 Group & Sino-British Trade Council 2019 Launched our 4th BRI report during Chancellor’s visit 1954 1954 Icebreaker Mission opened trade with China. Icebreaker companies totalled 48 – “The 48 Group” 2013 CBBC organise business delegation accompanying Prime Minister David Cameron to China 1998 China-Britain Trade Group renamed China-Britain Business Council (CBBC) 1973 Sir John Keswick, Chairman SBTC met Premier Zhou Enlai in Beijing www.cbbc.org Advice 建议 Support 支持Networking 网络

5. China Context (Economic Stability & Growth) 2018 – Key Facts Population:1.4bn GDP: 12.238 Trillion Economic Growth: Reported 6.6% (against target of 6.5%) GII Ranking: 17th(First time in Top 20 Patent Registrations: 1,306,019(From 204,268– 2008) Trademark Registrations: 6,381,512 (From 673,522 – 2008) Chinese Provinces by GDP Per Capita (USD) Regional Development www.cbbc.org Advice 建议 Support 支持Networking 网络

6. China Context (FI steady growth continues) • FI Continues to Grow Steadily • 2018 FI by Region • The top ten nations and regions with investment in China are as follows: • 95.2% of total FI actual use in China. • Newly Approved Foreign-invested Enterprises amounted to 60,533, up by 69.8%YoYincrease • Actual use of FI reached USD 134.97 billion(RMB 885.61 billion),3% incremental growth • Source: PRC Ministry of Commerce Official Statistics www.cbbc.org Advice 建议 Support 支持Networking 网络

7. China Context (FI showing steady growth) Foreign Investment By Region Shanghai Shenzhen Guangzhou Chengdu Beijing • 2019 Two Sessions - New China FIE Law Passed • Fastest progress on new legislation since opening up – from draft to implementation within 3 months • Stimulate FI in response to US trade dispute • Advocating Openness, Predictability, Transparency in the business environment • Promoting equality in the investment environment • Welcomed by international business community – although with some caution East China Central China West China www.cbbc.org Advice 建议 Support 支持Networking 网络

8. Belt & Road Initiative (BRI) (Making Sustainable Global Impact) 30% Global construction projects are with Chinese contractors 1.2% - 3.4% Increase in prosperity for countries on BRI – influencing global increase of 0.7-2.9% Insurers & Banks Opportunity to connect private capital and green finance to projects. Chinese banks and insurers opening international bases. Q1 2019 BRI projects attracted a total of $2.3bn Chinese OI Partnerships At the heart of BRI development www.cbbc.org Advice 建议 Support 支持Networking 网络

9. . Greater Bay Area (GBA in Focus) GBA In Numbers • Annual Growth Rate 9.2% • GDP • £0.88 Trillion • 56,100km² • 85% Guangdong GDP • 13% • Total China Economy • 70 Million People China’s Vision Build a megapolis and innovation centre to rival China Silicon Valley. Total GBA economyexceeds US$1.5 trillion CBBC Response CBBC & our partners have formed an international network in the Greater Bay Area. We will open a co-working space for British businesses in Sept / Oct 2019 Our Goals To position the UK as partner of choice to maximise on the opportunities arising from the national development plan to integrate Hong Kong, Macau and nine Guangdong cities to rival Silicon Valley www.cbbc.org Advice 建议 Support 支持Networking 网络

10. Greater Bay Area (Chinese Government Objectives) • The Chinese government’s main objectives for the GBA are: • By 2022: • To increase cooperation between the SARs and cities in the Pearl River Delta region; • To develop a policy framework for creating a world-class innovative and industrial centre. • By 2035: • To develop an urban cluster in the area that employs the diverse and complementary strengths of each region, and economically rivals other famous bay areas, including those around New York, Tokyo, and San Francisco; • To increase cooperation between mainland China and Hong Kong and Macau; • To provide an urban environment that offers the highest quality of life, work, and Chinese and international tourism opportunities; • To engage the area in trade relations with other parts of China, Asia, and the world that are linked by China’s Belt and Road Initiative (“BRI”); • To become an economic system and mode of development mainly supported by innovation, and to become an international hub for innovation, technology, and advanced manufacturing. www.cbbc.org Advice 建议 Support 支持Networking 网络

11. Greater Bay Area (Key Policies & International Impact) • Impact on International businesses • The GBA will continue to operate as an important • region for multiple sectors that international businesses • are involved in, including: • Technology and digital innovation; • Financial and professional services; • Infrastructure; • Healthcare; • High-end manufacturing (with an emphasis on green • and low-carbon technology). • It will act as a trial area for certain policies before they are introduced to other parts of the country offering distinct advantages to companies operating there. • Such new policies may also pose risks for companies • that hold entities in both zones, as the Chinese • government would have greater access to information • regarding its assets and business dealings in Hong • Kong and Macau. • Key Policies • The Outline Development Plan for the GBA was issued • in February 2019, and presents current and future • policies, as well as recommendations improving • conditions for doing business in the GBA. • Facilitating trade and tourism • Promoting & Deepening “One Country, Two Systems” • Supporting scientific and technological innovation • Strengthening the Belt & Road Initiative • Improving financial services www.cbbc.org Advice 建议 Support 支持Networking 网络

12. CBBC Membership (An Introduction) Four Member Categories Premium – By Invitation Only – UK & China MNCs Corporate – UK & China Large & Medium Sized Corporates City Region – Extend to OTs seeking China Engagement Enterprise - SMEs www.cbbc.org Advice 建议 Support 支持Networking 网络

13. Membership Breakdown (Overall Data) CBBC Membership (Total: 818) CBBC Internal Data - May (2019) www.cbbc.org Advice 建议 Support 支持Networking 网络

14. CBBC Membership (Three Options for OTs) Premium Membership OT Membership Enterprise Membership • CBBC Premium Membership offers a bespoke programme with unparalleled access, influence and engagement with decision makers at the highest levels in the UK-China political and commercial network • Our Premium members require access to key strategic partners and cutting-edge insight to enable and amplify their key corporate objectives • CBBC Premium Membership offers an opportunity to be part of key initiatives both in the UK and China, providing a powerful voice in the bilateral dialogue, strategic engagement with key stakeholders and prominent positioning through targeted initiatives and campaigns • Direct engagement with our senior team allows members to benefit extensively from a dedicated service • A bespoke offer to OTs based on CBBC City Region and Corporate Membership • Provides the opportunity to gain key market insights on the issues shaping the business environment and UK-China policy agenda, participate in high-level networks, and gain access to key influencers within the UK-China business sphere. • Enables direct access to CBBC’s team of sector leads, providing dedicated, advanced sector specific knowledge, account management and critical insights to both navigate and demystify the market and business environment. • Through our market insights and by leveraging our networks, you can further enhance your brand and reputation in China. • CBBC Enterprise membership offers flexible support, practical advice and representation to our members and a platform that both enables and empowers SMEs to grow their knowledge of the UK-China business environment and capitalize on in-market opportunities • We offer a personalised service and provide access to a team of dedicated China market and sector specialists that can guide members through the practicalities of trading with and doing business in China • We offer dedicated events, forums and events that give a voice to SMEs and access to indispensable resources to optimize members’ China strategy MNCs OT’s Individually Join Suitable for Local Businesses www.cbbc.org Advice 建议 Support 支持Networking 网络

15. CBBC Customer Journey (Business Sustainable Growth Strategies) • Market Research & Advisory • Partner Identification & Meeting Arrangement • Digital Audit • E-Analytics • Supplier Sourcing • Company Checks • China Business Services (visa invitations, translation etc) • Cultural Training • Membership • Events • IP Protection • Launchpad & Hot Desk • Location Studies • HR services • Government Affairs • Regional Development www.cbbc.org Advice 建议 Support 支持Networking 网络

16. Opening Up Market for OTs (Enabling China Footprint, Growth & Acceleration) Phase 1 – Pre-Market Entry Consultancy OT China Accelerator Programme Demystify Chinabusiness environment Sector focus Build sustainable market engagement Advisory, support & market analysis Partner Identification / Matchmaking • In-market support for China visits / delegations Sector Focus – Tourism, Finance & Professional Services, Crypto / Blockchain www.cbbc.org Advice 建议 Support 支持Networking 网络

17. Opening Up Market for OTs (Enabling China Footprint, Growth & Acceleration) Phase 2 - Launchpad Launchpad & Hotdesk Establish a soft-landing presence in Mainland Employ OT representative staff under CBBC Conduct marketing & partnership development Be in-market to capitalise on leads Maintain control over strategy and costs • Deepen knowledge and networks • Expand outreach www.cbbc.org Advice 建议 Support 支持Networking 网络

18. Opening Up Market for OTs (Enabling China Footprint, Growth & Acceleration) Phase 3 - Acceleration CBBC would deploy our network of contacts to facilitate transition to a fully establish in-market RO entity. Further support could continue to be offered through China Gateway services Establish In-Market Rep Office Strategic Government Affairs Use full reach of CBBC’s China network / contacts Capitalise on relationships and opportunities Marketing & Trade Promotion Events www.cbbc.org Advice 建议 Support 支持Networking 网络

19. China Gateway (Our Market Advisory Portfolio) www.cbbc.org Advice 建议 Support 支持Networking 网络

20. CBBC Launchpad (Soft Landing In China) Launchpad offers … Launchpad is not … • A working space and facilities across 13 offices • Finance, Back-Office &Recruitment support • Employment of Chinese local staff • Exit advice/support • Business Consultancy • A registered address • An HR Agent • A means to invoice and collect revenue and payments • A platform to employ expats in China Launchpad USPs Test Out The Market www.cbbc.org Advice 建议 Support 支持Networking 网络

21. Sector Focus (Opportunities in Tourism) US$257.7bn Outbound Spend (2017) 100m + Nights Overnight Stays (2018) 75% Book their trip within 2 months of departure 27% Paired a visit to the UK with another country • China is the most valuable market for international tourism expenditure • Visits abroad doubled in 6 years from 50m in 2012 to 100m+ overnight stays in 2018. Forecast to hit 150m overnight stays by 2026. • China has the largest population in the world, with growing young middle and affluent classes. However, the population has started to age. Trends shows leisure travel to be seasonal. There are few public holidays in China, but going away is a key aspiration: it is an opportunity to show your social status and learn. • Word-of-mouthis the most important influence on destination choice. • Chinese middle and upper classes now explore destinations further away than ever before and this trend is set to grow. • Mobile travel apps and platforms allow them to be more independent in planning their travels. • Culture is still an important draw to travel for most, but interests in niche destinations and unique experiences is growing too. www.cbbc.org Advice 建议 Support 支持Networking 网络

22. Case Study (Jersey) • Jersey Finance / Locate Jersey – Beijing & Shanghai Launchpad • Promote Financial services, retail, e-commerce, food & drink, education, healthcare) • Held annual financial services roadshow in China and brought business delegations • Government Relations • Jersey Govt valued the relationship with China’s central and regional governments (incl. Hangzhou, Yiwu and Shenzhen) • Held an annual visit to China at Ministerial level (including First Minister) arranged through Chinese People's Association for Friendship with Foreign Countries (CPAFFC) “Without Launchpad we would have faced a much larger risk on entering the Chinese market.” Garry Zhao, Project Manager Jersey Finance Outcomes: Successful cooperation with leading Chinese wealth management company; Introduced a cosmetics e-commerce platform to enter China market. Jersey Post established business relationship in China. Jersey Dairy should have been another successful case but got stuck by the certificate for quarantine (crown dependencies / overseas territories not covered by the certificate issued to UK.) • Main Challenges Encountered • Branding • Investment Destination • Business Appetite • Volume of business small • China Market Knowledge www.cbbc.org Advice 建议 Support 支持Networking 网络

23. CBBC Members (Financial Services) www.cbbc.org Advice 建议 Support 支持Networking 网络

24. CBBC Members (Professional Services) www.cbbc.org Advice 建议 Support 支持Networking 网络

25. Contact Us Thank You! China Contact: Kiran Patel, Senior Director, CBBC China Kiran.Patel@cbbc.org.cn Tel: +86 10 8525 1101 Ext: 352 Shenyang Beijing Xi’an Qingdao Nanjing Chengdu Shanghai Wuhan Hangzhou Changsha Chongqing Guangzhou Shenzhen 英中贸易协会 CBBC_China www.cbbc.org www.cbbc.org Advice 建议 Support 支持Networking 网络