China Business Brief

CBBC went to the Labour and Conservative party conferences earlier this month. Sir Sherard Cowper-Coles (chair) joins the China Business Brief to give his readout on how both parties are developing their respective foreign and economic policies vis-a-vis China and what businesses can expect in the near-term future from a new government under Prime Minister Liz Truss. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council (CBBC). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

A lot has happened in China over the course of the year so far, much of which has been in anticipation of next month's Party Congress. Andrew Seaton (CEO, China-Britain Business Council) joins Joe Cash for a refresher, as China watchers the world over turn their attention to next month's meeting and wonder whether it might bring about any change to the zero Covid policy, the economic troubles the market is experiencing, and how China engages with the wider world. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council (CBBC). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

Over February and March of this year, early-stage investment by venture capitalists in China declined by as much as 90% compared to the previous year. Meanwhile, foreign investors pulled out £23 billion worth of Chinese bonds, representing the largest outflow since the beginning of China's bond market. Such numbers have led some commentators to suggest that China has become 'uninvestable.' 

Duncan Clark, a vice-chair at the China-Britain Business Council and chairman of BDA China, speaks to Joe Cash on why he does not buy into the idea that China has become off-limits to foreign investors as a result of recent political and Covid-induced turmoil in the country and explains how foreign investors' attitudes towards China have changed over the past 30 years. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council ('CBBC'). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

Worries about the health of the Chinese economy are mounting. Despite the respectable growth of 4.8% for the first quarter of this year, several indicators suggest that it is starting to come under considerable strain. Last month’s economic data showed an economy that is struggling in the face of multiple headwinds: April’s Purchasing Manager Index (PMI) – which measures the Chinese manufacturing sector – dropped to 47.4, the lowest figure since the start of the pandemic, while export data weakened to just 3.9%, the slowest monthly growth since June 2020. Getting the economy back on track will surely be one of the major tasks of the Chinese government in the coming months.

Alicia Garcia-Herrero, Chief Economist for the Asia-Pacific within Natixis, speaks to Joe Cash on the levers the Chinese government has at its disposal to try and put the economy back on a more even keel and explains why, in the absence of choosing to live with Covid, economic policymakers will have their work cut out if they are to be successful. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council ('CBBC'). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

China can be a complex and challenging market for new exporters. While the country holds huge potential for small and medium sized (SMEs) companies from across a wide range of sectors, for sure, getting your company in front of China’s 1.4 billion consumers will first require you to get to grips with a raft of market barriers and its regional diversity. And this can be tricky. 

Kiran Patel, CBBC's Senior Director - Commercial, speaks to Joe Cash on some of the ways successful SMEs in China have overcome these hurdles, particularly now travel to and from the country is difficult. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council ('CBBC'). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

China’s political leaders have just completed their big annual meetings known as the ‘Two Sessions’ or LiangHui. The meetings are important every year, in that they demonstrate Beijing’s priorities for the economy in the year ahead. This year’s event was particularly notable for the government's emphasis on stability, despite the meetings taking place against a backdrop of China facing its worst Covid outbreak since the early days of the pandemic in January 2020 and a difficult external environment following Russia's invasion of Ukraine.

Jeff Astle, APCO's Managing Director in Shanghai, joins Joe Cash to discuss the meeting's outcomes and key takeaways for business, following the publication of the firm's 2022 Two Sessions Special Report. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council ('CBBC'). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

Links to resources mentioned in this episode:

China's 2022 Two Sessions: What Multinationals Need to Know: https://apcoworldwide.com/blog/chinas-2022-two-sessions-report/

China's policymakers have been busy upgrading the country's cybersecurity regime. Over the last couple of years, the Cybersecurity Law (2016) has evolved and been joined by a whole host of accompanying legislation, including the Personal Information Protection Law and the Data Security Law of last year. In short: Beijing has made clear that data must be regulated and that it falls on companies to ensure that they are toeing the line. Many of the country's tech giants have already fallen foul of such legislation, but China's new cybersecurity regulatory regime is about so much more than meting out punishment; it's actually smart regulation, says Rogier Creemers, Assistant Professor in Modern Chinese Studies at Leiden University. 

Rogier talks to Joe Cash about what prompted a shift in the Chinese government's attitude towards data security, what Beijing plans to do with its new powers going forward, and why the introduction of the PIPL and DSL could be good for China's economy. 

This episode is part one of two, and listeners wanting an introduction to the PIPL and the DSL are encouraged to first listen to this earlier episode of the China Business Brief featuring Torsten Weller: https://podcasts.apple.com/gb/podcast/china-business-brief/id1541091516?i=1000525682356 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council ('CBBC'). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

Links to resources mentioned in the episode:

DigiChina: https://digichina.stanford.edu

Rogier's piece for SupChina: https://supchina.com/2022/01/26/chinas-data-legislation-matures/ 

2021 was a tumultuous year in EU-China relations. It began with both sides celebrating the agreement of a new investment deal. Its end was marked by the worst crisis in relations between Brussels and Beijing since 1981—with Lithuania imitating the Dutch diplomats that came before and recalling its representatives as Vilnius' bilateral relationship with Beijing soured and was downgraded. The EU and China also imposed tit-for-tat sanctions on several officials and Members of the European Parliament. Annus horribilis comes to mind. But Brussels' man in Beijing, Ambassador Nicolas Chapuis, is optimistic. Behind the headlines of sanctions and showdowns at the World Trade Organization is engagement, and not only where it is easy for the two sides to agree - the environment, global development, and so on - but where the two are ideologically poles apart. Make no mistake, fixing EU-China relations will not be easy, as Ambassador Chapuis explains to Joe Cash. Both sides continue to ask a lot of each other—and there are areas where they will likely never agree. But, as the Ambassador explains, there is no substitute for engagement. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council ('CBBC'). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

2021 was supposed to be a big year in Chinese financial and professional services policy. Following the agreement in principle of the EU-China Comprehensive Agreement on Investment late last year, analysts and financiers alike expected financial liberalisation to be high on the agenda as Brussels and Beijing sat down to ratify the deal over the course of this year. But while the openings that foreign banks had hoped for appear someway off, and China's markets have become more controlled under the guise of 'Common Prosperity', British banks have continued to do well in the market throughout 2021, says Rahul Ahluwalia (Minister Counsellor - Financial Services & Investment) of the British Embassy in Beijing. 

Rahul talks to Joe Cash on how the UK and China have found additional areas within which to collaborate in financial services, particularly in green finance; why he feels that British banks are well placed to continue to expand their presence in the market; and how likely it is that the UK and China will hold an Economic & Financial Dialogue ('EFD') next year. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council ('CBBC'). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.

Sir Sherard Cowper-Coles (Chair, China-Britain Business Council) speaks to Joe Cash on how his distinguished career within the British foreign service prepared him to join the ongoing debate on the UK's future economic relationship with China. 

The views expressed in the China Business Brief podcast are those of invited contributors and not necessarily those of the China-Britain Business Council (CBBC). We do not accept any liability if the podcast is used for an alternative purpose from which it is intended, nor to any third party in respect of this podcast.