The China-Britain Business Council Chief Executive lays out some important business issues for China in 2016
China-Britain Business Council (CBBC) Chief Executive, Stephen Phillips, has made an ‘auspicious 8’ list for the year of the monkey saying, ‘the UK and China are now visibly stronger partners. The next step is to turn this partnership into greater prosperity and security for both our nations.’
For more information on exporting to China, read the CBBC’s China Business Handbook for 2016.
Here is CBBC’s list of 8 to watch out for in 2016
The Chinese economy will continue to adjust. Slowing, more sustainable growth is to be expected but that still adds an economy the size of Switzerland to the Chinese economy each year. International markets will start to get more used to this and reactions will be less headline-grabbing. This topic will be covered in depth at the China Business Conference in London on 22 March.
Bound to be lucky for someone! In March, China will ratify the 13th Five Year Plan. Expect big statements on upgrading industrial capability (see 2025), further reform (see Supply-side) and environmental issues (see Granules).
Expect Supply-side Reform to be China’s newest buzz-phrase in 2016. It still isn’t clear exactly what it will mean, but fundamentally China wants to create an environment for its private sector and state-owned enterprises to create more wealth and drive its economy forward.
Linked with supply-side reform, Made in China 2025 will become a more visible initiative in 2016 to ensure that China’s manufacturing moves up the value chain, avoiding a squeeze at one end on price and on quality at the other. CBBC’s report on this initiative will be released in the spring.
Belt and Road
Potentially the most impactful business initiative of our generation. How effective China can be in realising this could define international trade for decades to come. Much internal discussion will take place this year – expect lots of big political visits by Chinese leaders to countries along the routes. CBBC will issue its second report on opportunities for UK companies from Belt and Road in June. (Read our first report here)
Capital in China will look for secure and stable homes around the world, and the UK will remain a leading destination. In 2016, expect to see more private companies investing abroad, presenting opportunities for UK companies around the world. CBBC’s flagship ‘China Outbound Conference’ will position the UK as a key investment destination and British companies are ideal global partners for Chinese investors. Join us in Shanghai on 3 November.
The RMB was finally welcomed to the big basket of the SDR. Volatility issues aside – which are rather overstated anyway – London will strengthen its position as the leading RMB centre outside of Asia, and the scope of RMB products will be gradually broadened.
There is more business for UK companies in a bigger, rapidly changing and more open China. Get granular about what isreally happening in sectors and across regions throughout China. Look beyond the headline figures. They tell you little.
Sectors to watch out for: IT, Biotech, Agri-tech, advanced manufacturing, Environmental industries, New-energy, Retail, Education, Healthcare and Elderly care
Regions set to come to prominence: Central and Western China – but don’t forget the coast either!