On 22 September Hainan Airlines celebrated its 10th anniversary at the Tangla Hotel in Brussels. Hainan Airlines is the only airline which has direct flights between Beijing and Brussels. Speeches were given by His Excellency Ambassador Qu Xing and Mr Olivier Yang, General Manager, Hainan Airlines. The Flanders-China Chamber of Commerce was represented by Ms Gwenn Sonck, Executive Director.

BusinessEurope, the European Union Chamber of Commerce in China (EUCCC) and the EU-China Business Association (EUCBA) organized a seminar on EU-China relations. This event was supported by the Flanders-China Chamber of Commerce (FCCC). The EU-China relationship is of significant importance to the European business community, with trade in goods and services totaling over €billion per day. China is now the EU’s second largest trading partner while the EU is China’s largest trading partner.

This seminar aimed to provide a holistic overview of the state of EU-China relations for the European business community. Topics included a presentation on the general business environment in China for European companies; the outcomes of the EU-China Summit held in Beijing on 13 July; the EU’s new China strategy released in June; and the state of play on the EU-China Comprehensive Agreement on Investment.

Following a word of welcome by Markus J. Beyrer, Director General, BusinessEurope, Jörg Wuttke, President of the European Union Chamber of Commerce gave a speech, followed by two other speakers. A Q&A session and closing remarks by Mr Stefaan Vanhooren, Vice-Chairman of the EU-China Business Association (EUCBA) concluded the event, which took place on September 19 in Brussels.

The EU-China Business Association is the EU-wide federation of business organizations in the EU promoting business relations with China. The Flanders-China Chamber of Commerce is in charge of the secretariat-general of the EUCBA.

South Korea’s Hyundai Motor will launch its stand alone premium Genesis auto brand in China within two to three years, thereby expanding in the luxury segment. The plans come as Hyundai tries to reverse 10 straight quarters of falling profits, hit in part by sales weakness in China. “The luxury customer in China is very brand-conscious,” said Genesis Brand Chief Manfred Fitzgerald. The former executive with Audi’s Lamborghini brand was speaking at the first, and so far only, standalone Genesis store, in a glitzy mall on the outskirts of Seoul featuring cars like G80 sedans. “If you don’t get your brand right, you can have the best product in the world, it won’t work,” said Fitzgerald. “In two, three years’ time we will be entering China,” he said, declining to give sales targets for a global rollout that will follow launches in South Korea late last year and in the United States last month.

Foreigners will find it easier to work in Shanghai after the city released a series of policies to attract international talent. From November 1, foreigners will be able to apply for a unified work permit as the two types of work permits for ordinary foreign employees and foreign experts will be combined into one. The application process will also be simplified. Foreign workers will be classified into categories A, B and C: A for top talent, B for professional talent, C for unskilled workers or those working in the service industry. Some materials previously required to file an application will no longer be needed, such as a personal resume. Current work permits can still be used until their expiry date. Shanghai last year handled 8,599 applications for foreign expert work permits and 120,933 for employment licenses for foreign employees, more than other provinces and cities. Another new policy announced by Shanghai allows students who graduate from local universities without work experience to find employment in the Shanghai Pilot Free Trade Zone (FTZ) and the Shanghai Zhangjiang National Innovation Demonstration Zone. Previously, foreigners needed to have at least two years’ work experience to apply for work and residence permits in Shanghai. By August this year, 64 foreign postgraduates had obtained work permits under the policy. Another new policy allows regional headquarters of transnational companies, investment companies and foreign-funded research and development (R&D) centers, which are registered in the two trade zones, to employ graduates from leading foreign universities, with or without work experience, the Shanghai Daily reports.

Shanghai also canceled the 60-year-old age limit to apply or get work and residence permits for high-level foreign professionals last year. If the applicants are recognized as “foreign talent” by the authorities, they could be issued permits lasting five years, and they can also apply for a permanent residence permit after working for three years if their employers back their case. A total of 96 foreign expats have been issued such 5-year visas, including 27 older than 60. Most expats need to renew their residence permits once a year, but from last year, they can have their permits renewed for 5 years after two previous renewals. More than 1,800 qualifying expats have applied for the 5-year permits.

China’s banking sector could be facing an imminent “debt crisis,” the Bank for International Settlements (BIS) has warned. China’s credit-to-GDP gap reached 30.1% in the first quarter of 2016, its highest level ever and far above the 10% level thought to present a risk to a country’s banking system, the Switzerland-based bank said in a quarterly report. The gauge measures the difference between a country’s current credit-to-GDP ratio and its long-term trend. The BIS gave China a red signal: a warning that it could face a “financial crisis” in the next three years. China’s total debt hit CNY168.48 trillion at the end of last year, equivalent to 249% of national GDP, the China Academy of Social Sciences (CASS) has estimated. Because China is a key driver of world growth, a crisis in its banking sector could have catastrophic implications around the world, with the global economy still struggling to recover from the 2008 financial crisis, analysts have warned. China’s credit-to-GDP gap for the period was well above all other countries in the survey, which covered 43 economies including the United States, Greece and Britain. China’s “Big Four” state-owned banks reported mounting bad loans in the first half of the year. Analysts say the country’s vast foreign-exchange reserves and control over the banking system could help cushion the economy from financial crises. Because most potential bad Chinese debt is held by state-owned companies and banks, the government has control over the pace of recognizing and dealing with bad loans, Andy Rothman of Matthews Asia said, as reported by the Shanghai Daily.