APPENDIX 4
UK-CHINA VISIBLE TRADE 1994-99
EXPORTS
(£m)
| Direct exports |
Via Hong Kong | Total
|
| 1994 | 836
| 480 | 1,316
|
| 1995 | 823
| 624 | 1,447
|
| 1996 | 738
| 732 | 1,470
|
| 1997 | 920
| 766 | 1,686
|
| 1998 | 869
| 606 | 1,475
|
| 1999 | 1,216
| 635 | 1,851
|
| Jan-Feb 1999 | 172
| 77 | 249
|
| Jan-Feb 2000 | 201
| 87 | 288
|
| IMPORTS |
Direct imports | Via Hong Kong
| Total |
| 1994 | 1,652
| 2,214 | 3,866
|
| 1995 | 1,939
| 2,598 | 4,537
|
| 1996 | 2,202
| 2,824 | 5,024
|
| 1997 | 2,495
| 3,045 | 5,540
|
| 1998 | 2,961
| 3,104 | 6,065
|
| 1999 | 3,531
| 3,385 | 6,916
|
| Jan-Feb 1999 | 484
| 433 | 917
|
| Jan-Feb 2000 | 690
| 526 | 1,216
|
Sources: HM Customs (direct trade), Hong Kong Government
(trade through Hong Kong).
CHINA-BRITAIN BUSINESS COUNCIL
OVERVIEW
The CBBC is a unique organisation. Although technically one
of BTI's Area Advisory Groups, it is in practice an autonomous,
business-led trade promotion body, which provides services directly
to British firms. With a full-time professional and mostly Chinese-speaking
staff in London and in China, it undertakes many of the trade
promotion tasks which in other markets are undertaken by government
services. For this it receives financial support from government
amounting to about one-third of its budget.
The CBBC's unique role stems from past difficulties in Sino-British
relations which made it convenient to separate business from government
and from the pioneering role of bodies such as the 48 Group of
China traders and the Sino-British Trade Council in a period when
official contacts with China were difficult. As a result the CBBC
enjoys a valuable status in China, which gives it a freedom to
operate which no government organisation could match. It benefits
from direct contact with the most senior levels of the Chinese
government untrammelled by political considerations.
The CBBC was launched under its present title by the Prime
Minister in 1998, following his own visit to China, as an indication
of the high priority which the government attaches to the China
market and assistance to British firms there. It is governed by
a Council whose members are businessmen, though representatives
of BTI and the FCO also participate. It is a subscription organisation,
and two-thirds of its resources come from membership, service
fees and other partners. This is another feature which differentiates
it from other regional trade promotion bodies.
Within the UK, the CBBC provides a full range of services
to British companies, with the particular target of attracting
more SMEs to do business with China. It organises seminars and
workshops in the UK, to inform firms about the opportunities in
China and how to go about entering the China market. It deals
with commercial inquiries from companies interested in doing business
with China, and will provide full market and sector studies on
request. CBBC staff organise trade missions to China—and
give assistance to other organisations such as Chambers of Commerce
and Trade Associations which want to organise their own missions.
It acts as a vehicle for conveying the concerns of British business
on trade and investment issues to the Chinese authorities. It
regularly receives business-related delegations from China and
arranges events at which British firms can meet visiting Chinese
leaders.
Within China, the CBBC's five offices provide on-the-spot
advice and assistance to visiting British businessmen. Smaller
companies (SMEs) making their first foray into China can rent
office space and services within the CBBC's offices at more favourable
rates than those available outside. The CBBC also works closely
with the British Chambers of Commerce in China (including Hong
Kong).
The CBBC has been subject to intense reviews in recent years,
one of which is still in progress. One positive result is that
it is now professionally managed along business lines, while meeting
the requirements of public accounting policies.
The steep increase in British exports to China in 1999, which
seems to be continuing into this year, provides encouragement
for the CBBC in its present configuration and with present levels
of government financial support (no significant increase is being
sought). Looking into the future, the CBBC believes there is scope
for further rationalisation of CBBC and Embassy/Consulate General
trade promotion services in China, without sacrificing the CBBC's
valued independence. The CBBC is also keen to open small regional
cells in the regions of England, Wales and Northern Ireland, in
addition to its existing operation in Scotland. The purpose is
to bring its message about the China market more effectively to
British companies, especially SMEs, outside London and the South-East.
The CBBC also has ideas for developing a specialised SME Advisory
service. All these goals are related to its overall objective
of making Britain into China's number one business partner in
Europe and of taking fullest advantage of the new opportunities
which will open up with China's impending membership of WTO.
Achieving these targets will require adequate financial resources.
The financial backing from business is increasing through higher
subscriptions and charges. CBBC is asking for no reduction in
the current level of BTI financial support, consistent with the
government's declared policy of priority for the China market.
Unfortunately a significant reduction of 23 per cent is currently
being proposed by BTI which we are strongly contesting.
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