WELCOME TO THE EU SME CENTRE WEBINAR SERIES...Purpose •The EU SME Centre in Beijing is a project...
Transcript of WELCOME TO THE EU SME CENTRE WEBINAR SERIES...Purpose •The EU SME Centre in Beijing is a project...
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A project funded by the European Union
WELCOME TO THE EU SME CENTRE WEBINAR SERIES
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www.eusmecentre.org.cn [email protected]
Please continue to submit your text questions and comments using the Questions Panel
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Purpose
• The EU SME Centre in Beijing is a project funded by the European
Union
• To assist European SMEs to export to China and establish,
develop and maintain commercial activities in the Chinese
market
• Free, confidential information and advice, and practical support
services
3
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BD
S&C
HR & Training
Legal
Information
and advice
• Enquiries
• Publications
• Training
• Webinars
• Databases
Support
services
• Hot desks
• Briefings
• Matchmaking and
networking
Services
4
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Some key figures comparing cities
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GDP growth year by year 2009-2013
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Regional Cities in China:
Opportunities for EU SMEs in Changsha Phoebe Zheng / Miranda Hou, March 18 2014
A project funded by the European Union
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8 A project funded by the European Union
Part 1: Introduction to the Enterprise
Europe Network Central China
Zheng Qiwen
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About the Speaker
• Name: Zheng Qiwen (Phoebe)
• Education: Bachelors Degree from Shanghai Science &
Engineering University in 1991; MBA studies at Hunan
University from 2005 -2007
• Working experience: more than 15 years experience in
international trade promotion at CCPIT Hunan
• Position: Executive Director of EEN Central China at
CCPIT Hunan since 2010
• E-mail: [email protected]
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About EEN Central China
• Coordinated by the China Council for the Promotion of
International Trade (CCPIT), Hunan Sub-Council
• Located in Changsha, capital of Hunan Province
• Covering Shanxi, Henan, Anhui, Jiangxi, Hubei and Hunan
• One coordinator and two partners
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• Established in December 2008 as the first branch authorised by the
European Commission in China
• Formerly known as the Europe Information Center Changsha Relay,
established in 2004
• One coordinator
• CCPIT Hunan Sub-Council
• 2 partners:
• Hunan Provincial Science & Technology Department
• Wuhan Science & Technology Bureau
• One sub-contractor partner
• CCPIT Hubei Sub-council
About EEN Central China
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• Founded in 1978 as a foreign economic promotion organisation
• Consists of members of Hunan economic and trade
representative figures, enterprises, associations and groups
• China Chamber of International Commerce / Hunan Chamber of
Commerce (CCOIC Hunan) since 1988
• 14 branches around Hunan province
• More than 3,000 enterprises are members of CCOIC Hunan,
covering all industries
• Most of the elected vice president members are large-scale
enterprises in China
CCPIT Hunan
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Technology
Innovation
Transfer
Communication
Information
Investment
Agency
A B
Help SMEs to
apply EU projects
C
EEN Central China –
Functional Divisions
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EEN Central China – Services
• International commercial and technology information exchange
and dissemination
• Answering enquiries from SMEs
• Database of Chinese SMEs
• Brokerage events and matchmaking meetings
• Training courses for SMEs
• Foreign delegation reception
• Chinese SME delegations abroad
• EU projects application and follow-up
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Winning New Business Abroad Under New
Crisis Seminar 2012 (Changsha)
The 1st Session of EEN China National
Conference 2012 (Changsha)
EENCC Inauguration Ceremony 2012
(Changsha)
Hannover Technology Cooperation Day
2012
EEN Central China – Activities
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Mission for Growth 2013 (Beijing) 2013 Asia-EU Matchmaking Event (Beijing)
How to Explore the Chinese Market 2013
(Beijing) 2013 Hunan-UK SMEs Matchmaking Event
(Changsha)
EEN Central China – Activities
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www.eencc.com
EEN Central China – Website
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EEN Central China –
Main Events 2014
EU- Asia SMEs Matchmaking Event 2014, Beijing
Date:
13-15th May 2014
Activities:
1. EU- Asia SME one-to-one meetings
2. Visit to the Beijing High-Tech Expo
Focus on:
•ICT Industry & Service
•Modern Engineering and Manufacturing
•New Materials and New Energy
•Environmental Protection
•Modern Agriculture and Green Technology
•Bio-Engineering and Pharmaceuticals
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EEN Central China –
Main Events 2014
EU- Asia SMEs Matchmaking Event 2014, Changsha
Date:
10-14th November 2014
Activities:
1.EU- Asia SME commercial/ technological matchmaking projects
2.Training sessions and foreign projects promotion (for Chinese enterprises)
3.Hunan investment environment promotion and key projects promotion (for foreign enterprises)
4.Attendance or visit to Hunan High-Tech Expo
5.Visit to the High-Tech Zone
Focus on:
• Information Technology • New Energy and Energy-saving Technology
• New Materials • Resource and Environment Technology
• Biochem Tech • Advanced Technology for Transformation of
Traditional Industry
• Biopharmaceutical Tech
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EEN Central China – Contact
Address: 6th Floor, Hunan International Commerce Center Building
No.1139 Dongerhuan Road
410016 Changsha
Hunan, China
Telephone: +86 731 84773311 / 84773309 / 84773312
Fax: +86 731 84773377
Email: [email protected]
Web: www.eencc.com
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Thank You for Your Attention!
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Part 2: Opportunities for EU SMEs in
Changsha Miranda Hou
A project funded by the European Union
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About the Speaker
• Studied in the UK for five years and received
Master of Arts in International Business
Economics
• Two years working experience in international
company
• Four years working experience in high-tech
development zone
• Chief Representative of the China-Britain
Business Council (CBBC) Changsha Office
since 2013
Miranda Hou
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Agenda
• Chapter 1: Overview of Changsha
• Chapter 2: Advantages of Changsha
• Chapter 3: Development of Industry Clusters
• Chapter 4: Opportunities for EU SMEs
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Overview of Changsha
• General Information
• Milestone Development
• How Changsha Compares…
• Foreign Investors
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General Information
• Changsha, provincial capital of Hunan
• Area 11,800 km² (4556 square
miles)
• Population 7.04 million (end of
2011)
• GDP CNY 640 billion (2012)
• Annual growth rate 12.4% in 2012
(higher than national average of
7.8%)
• Total value of imports and exports
USD 8.7 billion (2012)
Changsha
Sources: Changsha Bureau of Commerce; Changsha Bureau of Statistics
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Milestone Development
GDP Scale
Sources: Changsha Bureau of Statistics
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How Changsha Compares…
Changsha is economically competitive with other cities in Central
China
1/2 size of Guangzhou
1/3 size of Shanghai
Sources: Changsha Bureau of Commerce; Changsha Bureau of Statistics; National Bureau of Statistics
Year 2012
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Foreign Investors
• 89 top 500 enterprises have set up their workshop (49
companies with direct investment)
• Many EU enterprises invest in Changsha
• Germany
• UK
• France
• Italy
• Finland
• Belgium
Sources: Changsha Bureau of Commerce
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Continues to Strengthen its
Competitiveness
Proportion that secondary industry contributes has increased from
42% in 2003 to 56% in 2012
Sources: Changsha Bureau of Commerce; Changsha Bureau of Statistics
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• Transportation
• Talents
• Lower Labour Costs
• Policy
Advantages of Changsha
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Transportation
• Within two hours you
can reach an area of
5 million Km ²
One hour
Two hours
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Transportation
• High-speech transportation hub
Three national major
high-speed railways
Sources: Changsha Bureau of Commerce; Changsha Wanbao.com; Hunan online
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Transportation
• Seven inter-city railways linking
surrounding cities
• Changsha-Zhuzhou-Xiangtan
railway (under construction)
• Changsha-Yiyang-Changde railway
(under construction)
• Another five lines are planned
Sources: Changsha Bureau of Commerce; Changsha Wanbao.com; Hunan online
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Transportation
• Airport and airlines
• Huanghua International Airport
(17km from downtown)
• Direct flights to 60 domestic
cities and 16 international cities
• Most EU cities reachable with
one transfer in Shanghai,
Beijing or Hong Kong
Changsha
Bangkok
Singapore
Seoul
Frankfurt Taiwan
Hong Kong
Macao
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Transportation
• Metro
• 4 lines are under construction and are expected to be in
operation between 2014 to 2017
Sources: Changsha Bureau of Commerce; Changsha Wanbao.com; Hunan online
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Transportation
• Port
• Changsha Xianing port is one
of 23 major inland ports in
China
• Important inland port along
Yangtze River with an
increasing throughput
• 30.9 million tons in 2012,
expected to reach 40 million
tons by 2015
Sources: Changsha Bureau of Commerce; Changsha Wanbao.com; Hunan online
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Talents
• 97 scientific research &
development institutions
• 48 universities / colleges
• 5 national key universities
• 310,000 graduates
National University of
Defense Technology
Central South University
Hunan Normal University
Hunan University
Central South University
Xiangya School of Medicine
Changsha
Sources: Changsha Bureau of Commerce
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Talents
• Professional and
technical workforce
• 32 technical schools
• 9.6% average turnover
rate
• 43,000 graduates from
technical schools in 2011
Sources: Changsha Bureau of Commerce
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Lower Labour Costs
Source: Changsha Investment Environment Report 2013
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Policies
• Preferential tax policies
• Each industrial park or economic zone can provide certain tax
policies in their key industry
• Bank loans
• National bank has offered loans on favourable terms for
enterprises and projects
• National-level zones can provide interest subsidies to certain
projects in the zone
• Discount on land prices
• Around 50% to 60% discount on land prices for key industry
projects or projects promising high tax returns in the future
Sources: Changsha Bureau of Commerce; Administrative Committee of Changsha national high-tech development zone
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Development of Industry Clusters in
Changsha
• Construction Machinery
• Automobile and Parts
• New Materials
• Cultural and Creative Industries
• Emerging Industries
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Focus industries
Construction machinery
Automobile and parts
New materials
Cultural and creative
Focus Industries
CNY 194.7 billion,
6.6% (Y-O-Y)
CNY 31.1 billion,
26.6% (Y-O-Y)
CNY 123.9 billion,
19.0% (Y-O-Y)
CNY 125 billion,
20% (Y-O-Y)
Sources: Changsha Bureau of Commerce; Changsha 2012 National Economic and Social Development Report
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Construction Machinery
• 24% of Changsha’s total industrial output
• 32% of China’s total machinery industry output
• Strong R&D capabilities
• Leading companies: Zoomlion, Sany, Sunward, AVIC Landing Gear
32% 24%
Sources: Changsha Bureau of Commerce; Changsha government website;
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Construction Machinery
• Case Study
Standard Chartered Changsha Branch
Management
“We have benefitted by providing
services to Changsha’s many
construction machinery companies
who are making outbound
investment to regions such as
Africa.”
AVIC Landing Gear Management
“Changsha government has actively
provided support to us. On one
occasion they helped us negotiate
with the power company and solved
a problem with the power
connection without interfering with
the project process.”
Sources: Changsha government website; Changsha Investment Environment Report 2013
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Automobile Manufacturing
• Formed a complete industrial chain
• Automotive R&D
• Parts manufacturing
• Automobile manufacturing
• Future development is expected to include:
• Development of coach car / SUV / truck / car
manufacturing
• Enhancement of core parts technology development
(automotive electronics, engines, axles and chassis)
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Automobile Manufacturing
Design and R&D
Parts manufacturing
Automobile manufacturing
Bosch
Lizhong
Automobile
Design
Bosch
Magna Cosma
Marelli
Johnson Controls
Sumitomo Rubber
Hitachi
Volkswagen
BYD
GAC Fiat
GAC Mitsubushi
Foton
Zotye
Shaanxi Heavy
Truck
Major companies
Sources: Changsha investment environment report 2013;
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Automobile Manufacturing
Case Study
• GAC Fiat Automobile Company (GAC Fiat)
• The company was established by Fiat Italy and GAC as a JV
in 2010. It mainly focuses on R&D, manufacturing, sales and
after-sales of passenger cars, engines and parts.
• Total investment amount reached CNY 5 billion and the phase
one capacity reached 140,000 cars annually.
• The first series of automobiles were introduced in September
2012 and the sales reached 12,000 in two months.
• The number of automobile dealers reached 113 and this is
expected to exceed 200 by the end of 2013
Sources: Official website of GAC Fiat; Changsha investment environment report of 2013
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New Materials
• Growing rapidly; key products have a high market share
worldwide
• Total output value of CNY 123.9 billion, representing 15.5% of
Changsha’s total industry output
• Most companies are global leaders in their respective sectors
• Liyuan New Material Ltd - Largest manufacture in the world of
band-shaped nickel foam
• Shanshan New Material Ltd - Largest company nationally and
third largest company globally manufacturing lithium batteries
• Lens Technology Ltd - Own 60% of the screen products
market for mobile phones, computers and digital cameras in
the world
Sources: Changsha Bureau of Commerce; Changsha government website;
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New Material
• Local government looking for further development fields:
• New energy materials
• Advance composites
• Energy conservation materials
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Cultural and Creative Industries
• Annual average growth rate of around 20% during 2006 to 2010;
Total output reached CNY 125 billion in 2012.
• Strong foundation in media, animation and publishing
• Famous broadcaster: Hunan TV
• Animation output ranked first nationwide for six consecutive
years
Two main projects in Changsha in the cultural industry
Hunan Museum
Changsha Meixi Lake International Culture and Art Centre
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Cultural and Creative Industries
• Local government expected to support
• New development models
• Cross-sector cooperation
New models
Culture + Innovation
Culture + Technology
Culture + Finance
Culture + Tourism
Cross-sector cooperation
Technology
Financial
Tourism
Sources: Changsha Bureau of Commerce; Changsha government website;
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Emerging Industries
• Value of logistics goods CNY 2 trillion, up 19.3% compared with 2011
Modern Logistics
• Output value CNY 19.8 billion, up 31.8% compared with 2011
Biomedical
• Added value CNY 23 billion, up 11.6% compared with 2011
Financial Services
• Contract value CNY 35 billion, up 18.1% compared with 2011
Service Outsourcing
Sources: Changsha Bureau of Commerce; Changsha government website;
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• High-End Technology
• Cultural and Creative Industries
• Eco-Friendly Technology or Sustainable Solutions
• Vocational Education and Training
Opportunities for EU SMEs
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High-End Technology
Lower-cost manufacturing
Higher-value added industrial
Entry to high-end market
High-end technology
Professional services
Local government
support
Input
Support
Encourage
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Cultural and Creative Industries
• Changsha is a major entertainment centre
and Hunan TV is the country’s leading
broadcaster in terms of audience ratings
• Chance for EU SMEs Hunan
TV
UK
Korea France
Chance
Creative industry collaboration
On TV programming
Field of animation
Cultural industry
Hunan Museum
Changsha Meixi Lake
International and Art Centre
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Eco-Friendly Technologies &
Sustainable Solutions
• Background
• Two oriented society
• Chang-Zhu-Tan City Cluster
• Hunan government planning investment of CNY 70 billion over
10 years
• Chance for EU SMEs
Environment & Water
Construction and Infrastructure
• Factory waste water and water remediation for Xiang River
• Soil & air purification
• Meixi Lake project
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Vocational Education &
Training
• Export-oriented enterprises used to have difficulties to
find talent with high-level sector skills and good English
Corporate/Executive Training
English language training
Engineer
Project Manager
Sector-specific training
Skills