1. Add text here Jessica Zhang, China Business Advisor China-Britain Business Council Tuesday 15 July 2014 – Liverpool IFB China – Land of Opportunity The Opportunities And The Challenges

2. Shanghai 2010 In 2011, China overtook Japan to become the second biggest economy in the world. The Chinese economy is projected to overtake the US economy by 2020 to become the world’s largest economy.

3. UK - China Visible Trade (not inc Hong Kong and Taiwan) Bilateral trade reached nearly £40bn China is the UK’s 7 th largest export market In 2012 UK exports to China grew nearly 13% Increasing investment in both directions Source: FCO

4. China has an economy like most continents: - 287 cities - 274 with population over 1 million - 125 with urban population over 1 million 40-60 20-40 0-20 60-100 Population (millions) by province It’s Big FUJIAN XINJIANG XIZANG (TIBET) QINGHAI GANSU JILIN GUANGXI SICHUAN YUNNAN HUNAN GUIZHOU GUANGDONG JIANGXI HUBEI ANHUI HENAN SHAANXI SHANXI HEBEI SHANDONG HEILONGJIANG NEI MENGU (INNER MONGOLIA) JIANGSU LIAONING HAINAN TAIWAN BEIJING HONG KONG SHANGHAI TIANJIN ZHEJIANG NINGXIA CHONGQING

5. What does China want? Increasingly affluent, aspirational, sophisticated – and urban Growing mid-range consumption Rising expectations, individualism and emotional needs Services: Retail Education Financial & professional services Travel Medical

6. Ageing Population, Healthcare & Food Safety Rapidly aging population Growing burden on families /middle generation Focus on healthcare & social welfare needs Food scares, baby foods, health alerts Pollution & health issues Government Development Policies Infrastructure & urban development Environment & green-tech Currency exchange & banking Free Trade Zone R&D Investments & moving up the value chain IPR Control New Opportunities

7. By 2025, China will have more than 220 cities with 1 million + inhabitants China’s urban population is forecast to reach 1 billion by 2030 China’s Regional Cities 160+ cities with over 1 million people

8. Challenges for Business in China 1. Regulations & Bureaucracy 2. Building Relationships 3. Language & Culture 4. Adapting Business Models 5. HR & Employment Issues 6. Local Knowledge & Market Research 7. Marketing & Communications

9. Do your research. Accurate market intelligence is difficult to find. Seek in-country expertise Ensure your business strategy is right for China. Take advice. Focus (location, targets) and proceed step-by-step Invest in building relationships & making connections, visit regularly Find a local partner or have a local presence Spend time building brand awareness & credibility Be flexible & adapt to local needs Be patient Top Tips for China…

10. About CBBC Developing UK trade in China since 1950s Widely recognised and respected at highest levels in both Chinese and British Governments Unique relationship with official Chinese trade organisations and companies Support for organisations of all sizes in all sectors Powerful UK and China network Team of 125+ Merged with British Chamber of Commerce, Beijing UKTI’s delivery partner of choice

11. Sample of CBBC Members across sectors

12. Shanghai Shenzhen Guangzhou Beijing Chengdu Tianjin Hangzhou Nanjing Chongqing CBBC Team in China On-the-ground local expertise Shenyang Wuhan Changsha Xi’an 130 staff in 13 offices Working to help 100s of UK companies each year Qingdao

13. CBBC Access and influence

14. Jessica Zhang China Business Advisor China-Britain Business Council Email: jessica.zhang@cbbc.org Tel: 0151 227 1234 ext. 2239 Mobile: 07932571940 www.cbbc.org