Welcome back readers, for our third and final exploration of "Inside CIIE." In case you missed the first two, we covered the US Pavilions with Eric Zheng of AmCham SH and the Aussie Pavilions with Simon Woods of AusCham SH.
We're finishing this inside-look series, with a look at the UK-China trade relationship.
In this piece, we had a very special treat, privileged indeed, to be personally led on a tour of a UK pavilion by Stuart Dunn, Executive Director of BritCham.
Fun Fact: The British Chamber of Commerce of Shanghai, is the oldest Chamber in China. Over a century young!
Stuart Dunn, Executive Director of the British Chamber of Commerce, Shanghai.
Some Facts & Figures:
In recent years, the trade dynamic between the United Kingdom and China has taken on a character as multifaceted as the Shanghai skyline. With exports to China hitting around £27.5 billion (US$35.58 billion) by 2023, China stands as the UK's sixth-largest export market, drawing in everything from high-performance machinery and sleek British cars to pharmaceuticals and high-grade fuels. Consumer goods are making an impressive dent, too: British beverages alone are up 12 percent to a cool US$654.68 million, with travel accessories, tea, and even luxury shoes showing strong growth. Services tell their own story, contributing an additional US$10.61 billion to China's coffers with sectors like consulting and travel filling out the balance sheet.
Stuart Dunn with Andrew from Goldfinch Whisky, Scotland
CNS: Stuart, start us off here. What was the original purpose of the China International Import Expo (CIIE), and how has it evolved?
Initially, CIIE was designed as a venue to encourage international trade by enabling companies and government entities to meet in a structured environment for signing trade agreements. Every state-owned enterprise (SOE) had specific trade targets, measured in billions of dollars, and they were required to sign deals at CIIE with exhibiting companies. This setup was meant to ensure that trade commitments were credible and not just "backroom" deals. It provided accountability, with SOEs needing to show that their deals were formally signed at the expo itself.
CNS: How is the UK government approaching CIIE this year? Are there any notable plans for engagement?
This year, the UK is preparing for its most significant presence at CIIE since 2020. We expect high-level officials, including the Ambassador and Trade Commissioner, to attend, along with delegations from regions like Scotland. Glasgow, for instance, is sending a group of ten companies to showcase Scottish businesses. The UK sees value in maintaining its governmental and diplomatic commitment to the expo. This visibility reinforces UK-China relations, and there's even potential for a high-level UK official visit to be coordinated around next year's CIIE. This could provide a valuable platform for fostering diplomatic and trade relationships between the UK and China.
CNS: And what are your thoughts on this year's CIIE compared to last year?
This year, CIIE surpassed my expectations, I have attended every year. I was part of the UK country pavilion in 2018 and instigated and ran the UK Food & Drink pavilion in 2020. Not only did visitor numbers appear to be the highest since 2019 it was also the investment and pavilion designs that impressed me. Many companies question the value of the show, combined with the tough economic environment, it would be easy for companies to share costs. This did not appear to be the case in most pavilions I witnessed. I also enjoyed the increased number of smaller B2C stalls where products could be purchased, this is a great dynamic and supports a wider range of smaller companies and businesses to attend. The downside is that it doesn't get any easier to walk so far for multiple days!
Stuart Dunn with a BritCham entourage.
CNS: How was the UK represented this year in terms of numbers and brands?
Our internal team using CIIE data counted 98 UK companies in attendance, combined with the additional UK brands on importers' pavilions. Some of the larger and more impressive pavilions included Haleon, Standard Chartered, HSBC, KPMG and Macallan to name a few of our larger companies. All with impressive investments, though, also dedicating parts of their pavilion to ESG and other very important topics. At the other end of the scale, our Glasgow Chamber of Commerce brought a delegation of companies that were hosted and exhibited at the Shanghai Orient Pavilion. They exhibited a great range of exceptions Scottish Whisky, Gins and other products as well as creative agencies and promoting Glasgow airport and their desire to have a direct flight from China to their amazing City that is very popular with Chinese degree students.
CNS: What does this year's CIIE outlook look like for a Chamber like BritCham?
I have to say, CIIE is a wonderful opportunity to meet a large number of member companies and get time with many of the organization's senior representatives in a more casual environment. Five of our team all spent multiple days at the CIIE attending conferences, meeting members and connecting with the wider communities. It also saw senior diplomatic visitors from BJ in attendance including our Ambassador and Trade Commissioner. These opportunities to bring the business community together are always a pleasure and the more opportunities we can create throughout the year to achieve this, only strengthens engagement and sharing between the UK and China.
CNS: And what would be the message you'd like UK readers to digest?
Looking forward to CIIE 2025 we would like to see the UK as a country of honour next year. I believe it would be the perfect opportunity for our Prime Minister to visit China and the following business delegation. Even if this does not happen, we would like to find more local partners to support us in bringing more business delegations to next year's CIIE and replicate the success that the Glasgow Chamber saw with their collaboration this year. If there are any companies interested do let us know, do reach out to us!
The Haleon Pavilion was our first UK Pavilion stop. You might not have heard of Haleon, given that they were established in 2022, but by Jove, look at the size of that thing. In 2023, a year after their establishment, they reported revenues of US$14.62 billion with a net income of US$1.42 billion.
You might be thinking, how on earth that can happen within a year of founding, well... they're a spinoff from healthcare giant GlaxoSmithKline (GSK).
Haleon's diverse portfolio includes well-known brands such as Sensodyne toothpaste, Panadol and Advil pain relievers, and Centrum vitamins (pictures above if you zoom in).
In 2023, Scottish exports to China saw a notable boost, increasing by 11.6 percent to reach US$1.60 billion, with Glasgow playing a key role. Scotland's largest city and economic powerhouse, Glasgow, is well-aligned with China's demand for premium products, including beverages, power-generating machinery, and automotive components. Whisky exports, a staple of Glasgow's beverage sector, grew by 35 percent, totaling US$654.09 million. Additionally, Glasgow's engineering sector, known for renewable energy solutions and automotive manufacturing, supports the city's significant exports of power equipment and road vehicles – categories that saw 11 percent and 338 percent growth, respectively. As Glasgow's industries continue to resonate with Chinese market needs, the city is set to strengthen its role in Scotland-China trade relations.
Stuart Dunn (right), Executive Director of BritCham Shanghai, with Richard Muir, Deputy Executive of the Glasgow Chamber of Commerce.
Hills & Harbour Gin is a distinguished Scottish gin crafted by Crafty Distillery, located in Galloway, Scotland. This gin captures the essence of its surroundings by incorporating locally sourced botanicals, notably Noble Fir needles and Bladderwrack seaweed, which contribute to its unique flavor profile.
Their gins give a harmonious blend of juniper, forest fir, tropical fruit, citrus spice, and a subtle hint of the sea. This combination results in a smooth and vibrant taste that reflects the forests and coastlines of Galloway.
Hills & Harbour Gin has garnered multiple awards, including a Gold in the London Dry category at the 2020 World Gin Awards and a Double Gold at the 2019 San Francisco World Spirits Competition.
Isn't there already enough tea in China? Ahmad Tea won't hear of this!
You've probably seen this brand on Epermarket, and in City Super, and in various restaurants. This is a family-owned tea company, well known for producing a wide variety of high-quality teas. They were established in 1986, in Hampshire, which... for a tea company, seems pretty young! One of the mandates of this brand is sustainable and ethical sourcing practices with initiatives to support tea-growing communities.
Thank you Stuart for taking us on a tour of UK pavilions and to the British Chamber of Commerce Shanghai, for connecting with us.