Member activities

Ford Expands in China

US car giant and CBI member Ford Motor Company has recently announced an expansion of its partnership with Chinese automaker Jiangling Motors Co. On Sunday, the two companies broke ground in southeastern China's Jiangxi Province on a new £196 million ($300 million) plant which is scheduled to begin production in 2012 and produce 300,000 vehicles annually.

The two carmakers already operate two joint plants in China which have a combined annual capacity of 210,000 vehicles. Ford currently holds a 30% stake in Jiangling.

(Photo source: Autoblog.com. Ford celebrates the production of its 500,000th Focus model at its Chongqing plant in Southwest China in March this year)

China's auto industry has grown phenomenally over the past decade, with the number of car units sold skyrocketing from 2 million in 2000 to 13 million in 2009. The country surpassed the US last year to become the largest auto market in the world, a powerful draw to leading global carmakers as sales remain low in established markets such as the EU and US.

Both Ford and Jiangling reported record sales in China in the first half of this year. Ford China sold 301,524 units, up 53% from a year ago, and Jiangling sold 88,363 units, an increase of 65.7% from last year. Read more here and here.
Updated 20 July, 2010

BSI introduces carbon footprints & carbon neutrality standards into China

To support low carbon economy, CBI member, the British Standards Institution (BSI) was responsible for the development of the world's first standard for the determination of carbon footprints for product and services and recently published a publicly available specification (PAS) for the demonstration of carbon neutrality.

(Photo and new source: BSI)

By a joint project with China National Institute of Standardization and financed by British Embassy Beijing, BSI has introduced carbon footprints & carbon neutrality standards into China. The achievement of the project was announced at a forum in Beijing on 22 June and a parallel forum in Guangzhou on 24 June respectively. Over 200 people were present at the forums.

BSI, who is well-known for developing the most popular quality standard ISO 9000 in the world, is developing a carbon emission standard that is going to be the next most popular standard. At the forums, BSI expressed the strong wish to collaborate with China in developing this standard as China is making tremendous effort to reduce carbon emission.
Updated 2 July, 2010

KPMG China Outsourcing Summit

CBI member and professional services firm KPMG will be hosting an event called "KPMG China Outsourcing Summit: Aligning growth with talent" on Tuesday, July 13 at the Ritz Carlton, Financial Street in Beijing.

The summit will provide a platform for professionals involved in outsourcing and offshoring in China to exchange ideas and share experiences from both the buy and sell sides. Participants will include top level government representatives, C-level executives from global and local services providers and multinational corporations that outsource and offshore to China or are planning to do so.

Click here for full details.
Updated 25 June, 2010

Shanghai in 2020

CBI member Goldman Sachs issued a report this month forecasting that Shanghai will become a fully-fledged global financial centre by 2020. Analysts predict that two fundamental reforms will occur in China over the next decade that will fundamentally alter the domestic financial landscape, namely the move towards full currency convertibility of the yuan and the opening up of the A share domestic market to foreign investors. Equity liquidity in Shanghai alone could reach up to $350 billion per day by 2020, in comparison to $47 billion per day currently. Shanghai would then account for as much as 53% of Asia's liquidity and 75% of China's. Read more about the Goldman report here.

(Photo source: ShanghaiDaily.com. View from the skyscrapers in Shanghai's Lujiazui area, an important financial district)

The Chinese government has ambitious plans for Shanghai's future. In March 2009, the State Council, China's chief administrative authority, announced plans to build the city into an international financial centre and global shipping hub by 2020. Read more here and the State Council directive in English and Chinese here and here.

Already the dominant commercial centre in China, Shanghai's economy surpassed Hong Kong's in overall size this year, growing at a robust pace of 8.2% in 2009. In comparison, New York City's economy turned in a lackluster performance of 0.9% in the fourth quarter after seven consecutive quarterly declines. The spectacular opening of the Shanghai World Expo on April 30th reinforced Shanghai's position as a city with truly global aspirations and highlighted the city's remarkable growth over the past two decades. To date nearly 20 million people have visited the Expo.
Updated 24 June, 2010

Ernst & Young Report on New Pharmaceutical Trends

Last Friday, the CBI participated in the EU Chamber of Commerce in China's Pharmaceutical Working Group in Beijing. During the meeting, CBI member and professional services firm Ernst & Young presented their annual report on trends in the pharmaceutical industry titled Progressions: Pharma 3.0.

According to the report, the pharmaceutical industry stands at the brink of a fundamental transition as several industry trends increasingly drive nontraditional players into the pharmaceutical sector, such as health reform, health IT, and rising confidence in consumer power.

For pharmaceutical companies to successfully adapt to the emerging environment which Ernst & Young calls Pharma 3.0, in which the focus is increasingly customer-centric instead of product-centric, they must establish strong networks of partnerships and deepen their collaboration with new entrants such as mobile phone providers, internet companies, retailers, and insurers.

(Photo source: Dailyfinance.com)

For example, last year CBI members and pharmaceutical giants GlaxoSmithKline and Pfizer announced an innovative agreement to jointly establish a new specialist HIV company. Click here to read the press release.

Carolyn Buck-Luce, global pharmaceutical leader at Ernst & Young, noted in an interview that the process of rising collaborations will likely occur more rapidly in emerging markets such as China, saying, "We think there's going to be an awful lot of learning and reverse innovation on the commercial model that's going to be learned in the emerging markets and brought back to the developed markets."

Click here for the full interview on the world of Pharma 3.0.
Updated 26 May, 2010

Deutsche Bank Issues Report on Sino-US Ties

On 17 May 2010, CBI member Deutsche Bank released a new research briefing titled, "Sino-US Relations: Economic Deterrence & Asymmetric Vulnerability," on the current and future status of bilateral ties between China and the United States.

The report's key conclusions are as follows:

1) China may emerge to displace the US as the world's largest economy by 2025, and it may be twice the size of the US by 2050. However, China faces a number of actual and potential challenges including: increasing natural resource dependence, rising geo-political competition, weakening political legitimacy of domestic governance structures, environmental degradation, and the political/economic limits to the current investment- and export-oriented growth strategy.

2) China's rising economic clout, while significantly enhancing its international role, will not translate into greater leverage towards the US for now.

(Photo source: Deutsche Bank report, "Sino-US Relations: Economic Deterrence & Asymmetric Vulnerability")

3) Both China and the US have an interest in avoiding a large-scale economic conflict, but China would incur far greater costs than the US should such a conflict erupt.

4) The balance of economic and financial power will only shift once China reduces its dependence on the US market (or US dependence on the Chinese market increases).
Updated 24 May, 2010

Spanish Banking Giant Banco Santander Joins the CBI

We are very pleased to announce that Banco Santander has joined the CBI as a new member. Santander ranks among the top three banks in the world in terms of profits and has a large global presence, providing a wide range of financial services to individuals, companies, and institutions.

Banco Santander is also actively expanding its involvement in China, with representative offices in Beijing, Shanghai, and Hong Kong.

In recent news, the Spanish banking group confirmed in February this year that it is planning to set up a joint venture with the state-owned China Construction Bank to provide banking services in China's rural areas. The deal will provide Santander with a strong platform from which to tap into China's vast rural market. Read more here and here.

(Photo Source: News.ruc.edu.cn. Santander representatives meet with Renmin University officials in March this year to discuss setting up a scholarship program funded by Santander)

Strongly committed to being very active in the communities of the countries in which it operates, Santander is also actively pursuing various educational initiatives in China through the Santander Universities Project, which has 883 cooperation agreements in place with universities throughout the world. Santander has already signed collaborative agreements with many of China's most prestigious universities, including Beijing University and Tsinghua University, which offer scholarship programs and exchange opportunities. Read more here.
Updated 24 May, 2010

UK Design Firm Benoy Wins Prominent Award

We are delighted to announce that CBI member Benoy has won the "Best Commercial, Office, and Retail Future Development Award" at the prestigious Cityscape Abu Dhabi 2010 Awards. Benoy received the award for its design of Ferrari World Abu Dhabi, the world's first Ferrari theme park and the largest indoor park. Click here to read more.

(Photo source: Benoy.com. Aerial view of Ferrari World Abu Dhabi)

In addition to its UK headquarters, Benoy also has a substantial international presence, with offices in Hong Kong, Abu Dhabi, Singapore, and Shanghai. Its Shanghai team is responsible for the entire external wall design, retail planning, and retail interior design for the Shanghai International Commerce Centre (ICC), currently under construction and scheduled to open in 2011. The Shanghai ICC will feature two commercial buildings, two residential towers, and a shopping mall.

(Photo source: Benoy.com. Design concept for the Shanghai ICC)

Click here to read more.
Updated 17 May, 2010

Retail Giant Tesco Expands Rapidly in China

CBI member Tesco recently released its annual results which featured impressive growth numbers for its China operations. Of particular note, the UK-headquartered company plans to develop more retail and leisure space in China over the next five years than it currently operates in the UK, testifying to its strong faith in China as what Sir Terry Leahy, chief executive, calls the "major engine of growth of the group."

(Photo source: Life.com. Tesco supermarket in Beijing)

Click here to read the highlights of Tesco's annual results and here for more information.
Updated 17 May, 2010

Logistics Provider Unipart Expanding Presence in China

CBI member Unipart has been steadily increasing its investment since entering the China market in 2006. In June 2009, the UK-based firm opened a logistics center in Suzhou, E China. GLP Park Suzhou, the logistics hub housing Unipart's new facility, is the largest and most comprehensive in the country. Read more here.

(Photo source: Glprop.com. GLP Park Suzhou, home of Unipart's logistics center in China)

Unipart also operates three sourcing centres in China in Beijing, the southwestern municipality of Chongqing, and the southern city of Foshan in Guangdong Province. In addition, the company plans to open up a new logistics center in the Beijing Olympic Logistics Park.

Unipart is a leading proponent of lean engineering, manufacturing, and logistical services, with the Unipart Way lying at the heart of its company culture and forming its proprietary version of Lean implementation.
Updated 17 May, 2010

CBI Member IPA Representing UK Advertising at Shanghai Expo

In February, UK Trade & Investment (UKTI), the Government organisation responsible for promoting international trade, selected the Institute of Practitioners in Advertising (IPA) to represent the UK advertising sector at the Shanghai World Expo.

The IPA is a non-profit trade body and professional institute for agencies in the UK's media and marketing communications industry.

The IPA is leading eight of its member agencies in a trade mission to Shanghai. On May 20th, they will participate in a creative workshop that seeks to explore the potential for China and Chinese brands to position themselves for EU market.

Read more here.
Updated 14 May, 2010

British Standards Institution (BSI) Participates in New Energy Management System

On May 1, CBI member and multinational business services provider BSI received approval from Chinese regulatory authorities to develop an energy management pilot scheme for certification in China's textile sector.

The pilot scheme is part of a new Energy Management System first announced by the Chinese government in January 2009 that aims to promote better energy management through greater standardization.

(Photo source: BSIGroup.cn. BSI Hong Kong holds a low-carbon technology conference this May)

BSI, a long-term advocate of energy conservation and reduced emissions, is one of only two foreign firms selected to participate in the new programme alongside 29 domestic companies. In total, 31 companies were selected to serve as Certification Bodies, each in a specific sector.

Click here to read more on this technical issue in Chinese.
Updated 14 May, 2010

Northeast China Auto Mission in July

CBI members interested in China's booming auto sector may be interested in participating in a trade mission led by the CBBC to the cities of Shenyang and Changchun in Northeast China's Jilin Province.

The visit will take place from July 14-18th and coincide with the Changchun Autoshow.

For a programme overview and further details please see below: Download NE China Auto Visit July 2010

The northwestern region is a major hub for automotive manufacturing in China, with vehicle production in 2009 totaling one million units in Changchun and 385,000 in Shenyang.

(Photo source: Bloomberg Businessweek. Toyota racing car on display at a previous Changchun Autoshow)

CBI member and automaker giant Toyota is active in the region and plans to launch production of a new plant in Changchun in late 2011 or early 2012.

With a total investment of approximately 3.8 billion yuan, ($556 million), the new plant will have an annual production capacity of around 100,000 vehicles and form a key part of Toyota's operations in China.

Toyota expects its annual sales in China to rise 13% this year to reach 800,000 units. Click here to read more about Toyota's investment in Northeast China.
Updated 13 May, 2010

CBI Member Intel Active in Southwestern China

Semiconductor and microprocessor maker Intel announced that its chip assembly and testing plant in Chengdu, the capital of Sichuan Province, has produced its 480 millionth chip. The plant is the largest of its kind in the Asia-Pacific region.

(Photo source: Chengdu Hi-Tech Industrial Development Zone website. Image of Intel's Chengdu plant)

In addition, Intel released that its Chengdu plant has launched production of the company's latest and most advanced core processor.

Intel's Chengdu centre will also become one of the world's three largest facilities in the world for wafer pre-treatment. Since opening the chip packaging and testing centre in 2003, Intel's total investment in Chengdu has now reached $600 million.

Click here to read a report on further economic news in Chengdu.
Updated 10 May, 2010

Engineering Giant Siemens Expands Investment in Southwest China

On 21 April 2010, Germany-based CBI-member Siemens hosted the opening ceremony of its Global IT Operations Center in Chengdu, the capital of Sichuan Province in southwestern China.

The new center is located in Chengdu's Tianfu Software Development Park and will form a key part of the Siemens global delivery network for IT Services.

Over 100 staff will be employed at the center by 2011, providing comprehensive support to Chinese and international customers.

Highlighting several of the key advantages large multinationals may enjoy by expanding to 2nd and 3rd-tier cities in China, Robert Demann, President of SIS China, said, "The first reason is the strong business orientation demonstrated by the local government...while the second being the wide talent pool which provides us the access to many well qualified students entering the workforce and lastly, Chengdu is a popular location for many people to live and work."

(Photo source: Siemens.com. Ceremony marking the installment of Siemens' PAC/RIS system in Huaxi Hospital, Sichuan Province in August 2008 which significantly increased the hospital's workflow efficiency. Read Siemens' press release here.
Updated 7 May, 2010

CBI Members Active in Tianjin Free Trade Zone

Only a short train ride away from Beijing, Tianjin is a key industrial, commercial and financial centre with ample opportunities for FDI. The city is a railway hub for northeastern China and also boasts the largest international trading port and freight airport in the region.

The Tianjin Municipal Government administers the Tianjin Free Trade Zone, located in the Tianjin Binhai New Area (TBNA) to the east of the city and comprised of the Tianjin Airport Economic Area and the Tianjin Port Free Trade Zone.

The Municipal Government provides a number of incentives and services to companies looking to invest in Tianjin, such as tax incentives, subsidies, and government support. The Tianjin Free Trade Zone focuses on the following key industries: electronics, automotive, aviation, bonded warehousing, biotechnology, and new energy and materials.

(Photo source: TimesofMalta.com, A320 passenger jet stands parked in a hangar at the Tianjin Airbus factory)

Over 80 Fortune 500 multinational companies have invested in the TBNA, including CBI members Airbus and Motorola.
Updated 7 May, 2010

Global Logistics Giant UPS Expands Investment in Second-Tier Cities

On 1 May 2010, the municipal government of Hefei, the capital of Anhui Province in eastern China, announced that CBI member UPS plans to build its largest service sharing base in the Asia-Pacific region in the city. The planned expansion highlights the rising investment of foreign companies in the less developed regions of China.

According to Richard Loi, vice-president of UPS Asia-Pacific, the new base will help improve efficiency by allowing the company to outsource some of its non-core business.

Construction on the site is expected to begin in August this year.

According to the Hefei municipal government, 49 of the Global Fortune 500 companies have investments in the city, spanning a wide range of industries including transportation, electricity, energy, and mechanical electronics. Other CBI members with investments in Hefei include Unilever, ABB, and Siemens.

(Photo source: Aircargonews.com)

In additional UPS China news, the logistics company announced last week that its $180 million, state-of-the-art air hub in the southern city of Shenzhen in China's Pearl River Delta has been activated. Read the official press release here.
Updated May 4, 2010

Japanese Business Promotes Green Technology in Southwest China

According to a report issued by the China Council for the Promotion of International Trade, Japanese machinery maker and CBI member Mitsubishi Heavy Industries Ltd held extensive discussions in March with representatives of Dongfang Electric Corporation in Chengdu, the capital of Sichuan Province. Talks focused primarily on the development of lithium batteries for electric transit buses.

Mitsubishi has worked closely with Dongfang in the development of gas engines since 2002. Current talks seek to promote the establishment of demonstration cities and companies in Sichuan Province as low-carbon and energy-efficient models.

Mitsubishi set up a liaison office in Chengdu in March through which to direct its efforts and to further enhance its cooperation with Dongfang.

Sichuan Province currently hosts up to 346 Japanese companies (including electronics maker and CBI member Toshiba) with an accumulative investment volume of $367 million.
Updated April 29, 2010

CBI Members Participate in Beijing's Annual International Car Show

China's capital is currently hosting the eleventh Beijing International Automotive Exhibition (also known as Auto China 2010), lasting from April 25 to May 2. Nearly 2100 companies from 16 countries and regions will put on display all of their latest car designs and technologies in the nearly 200,000 square meters of exhibit space, marking the biggest auto show ever in China. Participating CBI member companies include BMW, Rolls-Royce, and General Motors. Click here and here to read more about the new lineups of BMW and GM.

Having surpassed the US last year as the world's largest car market with 13.64 million vehicles in annual sales, China is a powerful draw to leading automakers around the globe.

With an official theme of, "Imagining the Green Future," Auto China 2010 features a strong focus on new concept and clean energy vehicles. In total, the 990 exhibits on display from domestic and foreign automakers include 95 new energy cars, 65 concept vehicles, and 89 models making their global debut.

Commenting on the dynamism of Beijing's latest exposition and indicative of the strong future of the Chinese auto market, Kevin Wale, head of GM China, noted that, "The only true global car shows these days are in China."
Read more here.
Updated 26 April, 2010

CBI Member Unilever, the World's Second Largest Consumer Goods Maker, Announces Plans to Deepen its Exposure to Less Developed Regions in China

CBI member Unilever said last week that it plans to significantly increase its investment in the second-tier city of Hefei, capital of Anhui Province. In total, the company will invest 700 million yuan ($102.52 million) in its Hefei production base with the goal of boosting output value to 10 billion yuan ($1.46 billion) in five years time.

The lower production costs and greater availability of land for business expansion drove Unilever to relocate seven factories from first-tier city Shanghai and southern China's wealthy Guangdong Province to the smaller, more cost-efficient Hefei.

The lure of very cheap labor and low land prices have drawn 25 of the world's top 500 companies into Hefei, with analysts estimating that the cost of setting up a plant in the mid-sized city is up to 30% lower than in Shanghai.

Unilever's rising commitment of resources to Hefei highlights the growing recognition of major multinationals that large benefits may be derived from expanding their exposure to China's second and third-tier cities. Read more here.
Updated 21 April, 2010

CBI Member Cisco Systems Uses Its Advanced Network Technology to Support Sustainability Initiatives in Sichuan Province

On March 17th, 2010 US-based CBI member Cisco Systems officially launched construction of the Tianfu Intelligent Internet City project in the High-Tech Zone of Sichuan's capital, Chengdu, with completion expected in July. The large-scale systems engineering project will improve urban management, public services and internet services as well as promote energy conservation and reductions in emissions. Cisco signed two Memorandums of Understanding (MoU) with the Chengdu municipal government in 2009 aiming to support local innovation, competiveness and sustainable development. The application of Cisco's advanced technologies and best practices to the construction of an information network platform aims to support development of a modern logistics industry in Sichuan. Click here for more information and here for Cisco's official China website.
Updated 14 April, 2010

Chinese Oil Giant Sinopec Buys Stake in Canadian Oil Project from New CBI Member ConocoPhillips

In a deal marking one of China's largest investments in North America, Sinopec has agreed to pay new CBI member ConocoPhillips $4.6 billion (£3 billion) to acquire a 9% stake in Syncrude Canada, the biggest project in Canada's tar sands industry.

Chinese firms have increasingly been investing abroad to buy the raw materials and energy necessary to continue powering China's economy. Conoco said it expects the deal to close in the third quarter this year pending approval from both Chinese and Canadian regulatory authorities. Read more here and here.
Updated 14 April, 2010

Strong annual sales growth in China reported by CBI Member General Motors

Automaker GM announced yesterday that strong demand in China may lead to its annual sales topping 2 million vehicles in 2010, 4 years ahead of schedule. China sales for the automaker giant skyrocketed nearly 70% in March from a year earlier to a monthly record of 230,048. In addition, GM estimates annual sales will exceed 3 million by 2015.

GM has been pouring more and more attention and resources into China and other emerging markets due to the continued weakness of the US and European economies. Kevin Wale, president and managing director for GM China Group, said, “We already have an incredible focus on China and we're going to put as much energy as we can on China.” Read more here
Updated 13 April, 2010

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