The Flanders-China Chamber of Commerce, the City of Antwerp and the Port of Antwerp organized a seminar focused on ‘Win in China: Doing business with a changing China’ on 19 April at the Port of Antwerp.

In December 2016 the City of Antwerp, The Port of Antwerp and Antwerp World Diamond Centre held another successful mission to China. The bonds between partner cities Antwerp and Shanghai were strengthened, contacts were made, allegiances forged, toasts raised and contracts signed. Given the good relationship between both cities and the growing economic importance of China, the future opportunities are legion. During the mission Mr. Bo Ji already taught us how to better understand the Chinese and enhance our negotiating power. The response to this lecture was very satisfactory therefore we requested Mr. Ji Bo to give us more insights into a changing China.

Following a word of welcome by Mr. Luc Arnouts, Chief Commercial Officer, Port of Antwerp, keynote speaker Mr. Bo Ji was introduced by Mr. Christian Leysen, Board Member of the Flanders-China Chamber of Commerce. Mr. Bart De Wever, Mayor of the City of Antwerp, delivered the closing speech. A networking reception concluded the event.

One thousand domestic and international exhibitors showcased 1,400 cars – including 113 world premieres – at the biennial Shanghai auto show last week. Although traditional cars account for the majority of new models, visitors to the event – which runs until April 28 – will also notice trendsetting new energy vehicles (NEVs). According to the event’s organizers, automakers are exhibiting 159 electric cars, plug-in hybrids and fuel-cell cars this year, 12 more than at the Beijing auto show last year. Jaguar Land Rover is showcasing an electric concept car, the Jaguar I-Pace SUV, the first of its kind from Jaguar. The model will be available starting in the second half of 2018. Another British brand, Bentley Motors, is showing its electric concept car, called the EXP 12 Speed 6e. The automaker said one of its aims is to gauge public opinion in the Chinese market to help to shape its future strategy. “Bentley is fully committed to China, it is a vital market for us. We are focusing on developing an electric model in the future that will meet the luxury mobility needs of customers right here and around the world,” said Wolfgang Duerheimer, Bentley’s Chairman and CEO.

Volume brands are even more ambitious in their efforts to seize a share of the world’s largest new energy car market, which sold half a million such vehicles in 2016 and is expected to sell even more this year. Volkswagen is displaying an electric crossover concept that features both coupe and SUV characteristics. VW will launch 15 new energy cars in China in the next three to four years. By 2025, NEVs are expected to account for more than 15% of total passenger vehicle sales in China, according to the Society of Automotive Engineers of China. The market has until now been dominated by Chinese brands, such as BYD, Roewe and BAIC Motor, and more startups are joining the race. NextEV, backed by Tencent and investment firm Hillhouse Capital, brought 11 models to Shanghai, including the Nio EP9. Little-known carmaker Singulato Motors is bringing its “intelligent electric” iS6 to the show. The car will be outsourced to an original manufacturer, as the company has no production permit yet for its plant in Tongling, Anhui province. In addition to new energy cars, Chinese automakers are demonstrating strength in SUVs, including those from Geely’s Lynk & Co and Great Wall’s Wey, the China Daily reports.

A total of 83 domestic models made their debut, show organizers said, led by Shanghai Automotive Industry Corp, Geely and Guangzhou Automotive Group. Some 832,300 sport utility vehicles (SUVs) were sold in China in March, with domestic makers having nine of the top 10 best-sellers, according to the China Association of Automobile Manufacturers (CAAM). SAIC expects to double sales to 600,000 units this year. Its Roewe RX5, a compact SUV, had sold more than 140,000 units by March since its debut last July. Also eying expansion overseas is GAC, which is planning a U.S. debut in 2019. GAC unveiled its GA8 SUV under the Trumpchi brand, the company’s top selling series, with the model due on the Chinese market by December. SUV sales accounted for 37% of the total vehicle sales in China last year, up from a mere 5.7% a decade ago.

China will replace green cards issued to foreigners with “smart card” versions beginning in July. Under the new directive from the Ministry of Public Security, holders of foreigners’ permanent residence cards can apply to renew the current permits with a new one embedded with a readable chip that contains identity information. The card can be swiped at various government agencies and institutions, making it easier and faster for foreigners to carry out some procedures such as buying train tickets. The introduction of the new green card is part of efforts by the government to attract more skilled foreigners to settle in China. In the 10 years after 2004 when the green card scheme was introduced, 7,356 foreigners have been granted permanent residency, even though more than 900,000 foreigners were working in China last year. The number of cards issued has risen recently, with 1,576 foreigners approved for permanent residency last year, 163% more than in 2015. But many green card holders still view the document as merely symbolic rather than of practical use. Many officials do not recognize the card. The Ministry of Public Security said it is aware of the issue and would rename it the Foreigner’s Permanent Residence Identity Card. The new name, in both Chinese and English, would be printed on the card. Zhang Jianguo, Director of the Administration of Foreign Experts Affairs, said that foreign talent was an “indispensable source” of the nation’s innovation strategy.

China will take new tax cut measures to spur corporate dynamism and competitiveness, Premier Li Keqiang said. Some piloting taxation incentives will be applied to more areas, while the country’s value-added tax (VAT) reform will be consolidated. The tax burden on businesses will be further eased by around CNY350 billion. Starting from July 1, four VAT brackets will be streamlined into three, with tax rates of 17%, 11% and 6% targeting different products. Tax cut incentives for small enterprises with limited profits will apply to a wider range from January 2017 to December 2019. Businesses with profits under CNY500,000, instead of the previous CNY300,000, will be made eligible for preferential measures. Pre-tax deduction for innovation-based tech firms will be further expanded from 50% of R&D cost to 75% from 2017 to 2019. Tax incentives currently given to venture capital firms will be extended to their investment in fledgling high-tech companies from this year in eight regions including Beijing, Tianjin and Shanghai, as well as in the Suzhou Industrial Park. Further tax cuts for commercial health insurance will be applied nationwide, with an upper limit of CNY2,400 to be deducted per person, the Shanghai Daily reports.

U.S. companies in China face one of the most challenging environments in decades this year, the American Chamber of Commerce in China (AmCham) says. Political and economic transitions in the United States and China, an increasing perception of animosity toward foreign businesses, and slowing growth are dimming the outlook. Investment barriers remain high, the Chamber said in its annual American Business in China White Paper. “The pace of economic reforms and market opening has been slow and faltering,” AmCham said. While administration, regulatory transparency and intellectual property protection have improved, policies designed to support domestic industries and national champions have narrowed the space for participation by foreign companies, it said. About 81% of its members reported feeling less welcome in 2016 than previously, up from 77% in 2015. “We are experiencing a clear increase in uncertainty as the U.S.-China relationship enters a new era,” AmCham Chairman William Zarit wrote in his introduction to the report. “The Trump administration is still finding its feet, and China itself will be undergoing a political transition this year. Multinational companies spanning this relationship, both American and Chinese, are paying close attention to developments as they make their plans.” More transparency would aid the government’s anti-corruption fight and give private companies more confidence that their investments would be fairly protected under the law, Zarit concluded.