CBI China visit the UK and Brussels from 13-29 July 2010
The CBI's China office is committed to providing accurate intelligence to its members. In this section you will find briefings on Chinese cities and regions as well as on the Chinese government and economy.
China's Investment Environment - still good for business?
Despite serious commercial and regulatory challenges facing foreign business in China the overall investment outlook remains upbeat and bullish.
The majority of CBI member companies are either profitable or seeking to expand their China operations over the next 12 months.
For an independent assessment and overview of China's investment environment please download the CBI China office's latest report on China's Business Environment.
Updated 21 May, 2010
British Embassy Releases Monthly Report on Chinese Economy
The British Embassy in Beijing has published its China Economic Focus report for April 2010. Please see below for some of the key economic and regulatory headlines for last month.
• Inflation remains relatively subdued—for now at least
• Property prices rising at a record pace
• First monthly trade deficit since 2006—possible RMB appreciation soon
• Fiscal policy still 'proactive' though focus has changed
• Unofficial local government debt a growing concern
• CIC increasing investments at home and abroad (China Investment Corporation is an investment institution established as a wholly-state owned company and headquartered in Beijing)
• Stock index futures launched
• Foreign banks allowed to underwrite corporate bonds
• China's weight in the World Bank increases
Updated May 4, 2010
New Regulations Encouraging Foreign Investment in China
China's State Council has released new polices in April aimed at attracting higher levels of foreign investment, especially in the central and western regions of the country.
Industries targeted for increased FDI include high technology, high-end manufacturing, modern services, environmental protection, renewable energies, and energy-conservation projects. However, greater restrictions will be imposed on FDI flowing to highly polluting and energy-intensive companies.
Policies aimed at encouraging qualified FDI include tax incentives, lower land prices, discounted loans for infrastructure construction, greater support from local governments, and further opening up of the Chinese stock exchanges and reorganization of domestic companies for foreign participation.
For further information, please read the following article published by Guo Lian Law Firm, a full service commercial legal firm based in Beijing, and Chinese media reports here and here.
Updated April 30, 2010
International Law Firm Eversheds' Study on Global Business Confidence
CBI Member Eversheds LLP conducted a study titled "Boom or Gloom?" which assessed the lasting impact of the global economic crisis on business confidence in key financial centres around the world. The report engaged with 600 senior business leaders in five key economic centres (London, Mumbai, New York, Shanghai, and the United Arab Emirates) to assess their confidence levels and examine the long-term impact of the recession on the significant of those economic centres.
Key findings of the report include:
• 87% of respondents believe a significant shift in the world economy has occurred
• Clear theme of rising confidence in the emerging Asian economies
• Business leaders reported signs of green shoots in the world economy at end of 2009
(Source: "Boom or Gloom? The business outlook from leaders in established and emerging global financial centres," study by Eversheds)
Updated April 29, 2010
China's Property Market - a bubble about to burst?
The recent 15 April announcement by the State Council that minimum down payments on new properties will increase from 40% to 50% has prompted much speculation as to the likely impact of this ruling on the volatile domestic property market.
The CBI is grateful to CLSA's Andy Rothman and team for their views. Please click here to download China's Property Market - Cooling demand (PDF 187kb).
Updated 23 April, 2010
UK Embassy Report on China's Financial Sector
The UK Embassy has issued an updated report on developments in China's financial sector. Please click here to see an executive summary and details.
Updated 19 April, 2010
New Report Issued on China's Rate of Urbanization
On April 15, the Chinese Academy of Social Sciences released a report on China's urbanization rate which predicted that the country's high-speed urbanization will begin to slow down around 2013. According to the report, China's urbanization rate was nearly 46% in 2008, a proportion that will likely rise to 52.3% in 2015, nearly 57.7% in 2020, and almost 67.8% by 2030.
(Photo source: 2008 McKinsey Global Institute report on China's urbanization that predicts nearly one billion people will live in China's cities by 2025)
In addition, the ongoing process of urbanization will likely continue to drive higher costs of living in cities for urban residents. Read more here and here.
Updated 19 April, 2010
Chinese Indigenous Innovation Issue - some welcome good news
The international business community's concerted lobbying over the indigenous innovation issue seems to have paid off - at least for the time being.
On April 9th Beijing eased restrictions on the government procurement market for foreign companies in China.
The scaling back of the rules proposed late last year is a welcome change for foreign companies in China -although concerns about the openness of the country's overall business environment remain.
The Ministries responsible for the original ruling are now receiving public comments on the regulations until May 10th. To review the new draft notice and to post comments please click here to download the EUCCC translation of Indigenous Innovation regulations. We would like to thank the EUCCC for providing a draft translation.
An overview of the latest developments can be accessed below: http://www.eubusiness.com/news-eu/china-us-policy.442
Updated 19 April, 2010
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