The Flanders-China Chamber of Commerce and AllBright Law Offices are organizing a webinar focused on the Impact of the New PRC Civil Code on Foreign Invested Companies in China. This webinar will take place on October 8, 2020, at 10 am CEST.

We are proud to announce that Allbright Law Offices has become a new structural partner of the Flanders-China Chamber of Commerce. Allbright Law Offices is Shanghai’s largest Chinese law firm and the seventh-largest in China.

On May 28, 2020, The Civil Code of the People’s Republic of China was officially adopted and promulgated, and it will come into effect on January 1, 2021. After the Civil Code comes into effect, the Marriage Law, Inheritance Law, General Principles of Civil Law, Adoption Law, Guarantee Law, Contract Law, Property Law, Tort Liability Law, and the General Civil Law will all be abolished. The Civil Code has not made substantial changes to the country’s main legal framework, but has made some adjustments to specific rules on the basis of judicial practice. The introduction of the Civil Code will require foreign invested companies in China to review, and potentially modify, their business models and contract terms, depending on their business.

The webinar will highlight key changes in the Civil Code from existing laws and offer key pointers on how businesses should best prepare.

Program:

10:00 – 10:05 Welcome and Introduction by Ms. Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce.

10:05 – 10:40 Presentation by Mr. Carl Li, Senior Partner AllBright Law Offices

10:40 – 11:00 Q&A

Carl Li

Senior Partner, AllBright Law Offices

China Top 15 M&A Lawyers in 2020 (Asian Legal Business)

Recommended M&A Lawyer in Asia Pacific 2020 (Legal 500)

About the speaker:

Mr. Li has 20 years of extensive experience of providing legal services to foreign investors in China. His clients include Fortune 500 multinational corporations and medium- and small-sized European family businesses. He has advised on many milestone foreign direct investment projects.

Mr. Li graduated from Renmin University Law School (the top-ranking law school in China) and is also a graduate of the EMBA program at the China Europe International Business School (the number one business school in China). He was a visiting scholar at the University of Maryland in the US and also trained at Harvard Law School.

About AllBright Law Offices:

AllBright Law Offices is a leading full-service law firm committed to providing the highest levels of quality advice to clients. Based in Shanghai, AllBright has provided unmatched service throughout a period of continuous economic and political change across China. Their focus on providing excellent advice and support to their clients has led to rapid expansion. The firm has branch offices in 21 cities on the Chinese mainland (Hangzhou, Beijing, Shenzhen, Suzhou, Nanjing, Chengdu, Chongqing, Taiyuan, Qingdao, Tianjin, Xiamen, Jinan, Hefei, Zhengzhou, Fuzhou, Nanchang, Xi’an, Guangzhou, Changchun, Wuhan and Urumqi), as well as in Hong Kong, London and Seattle. In addition, as a result of their increased international presence, they have established an association with the Hong Kong law firm Stevenson, Wong & Co. and a strategic partnership with the UK firm Bird & Bird LLP.

Practical Information:

Date and time: October 8, 2020, 10 am CEST

Location: Online, Zoom

Price for members: Free

Price for non-members: €20

SUBSCRIBE HERE

 

The EU-China Business Association, the European Union Chamber of Commerce in China and Business Europe are presenting the launch of the ‘European Business in China – Position Paper 2020/2021’. The webinar will take place online on 6 October 2020 at 10.00 am CEST.

As the flagship publication of the European Union Chamber of Commerce in China, the Position Paper is comprised of the views from more than 30 industry-specific working groups representing European business in China, detailing the numerous structural challenges that remain in the China market and providing constructive recommendations to both the Chinese and European authorities alike. Its executive summary also provides a wider analysis and commentary on business and political relations and their intertwining.

According to the position paper, many of these structural challenges are related to the emergence of China’s ‘one economy, two systems’ model. One half of the economy is increasingly fair, well-regulated, and welcoming to foreign investment; the other, state-driven, half sees China still nursing its national champions and overindulging its state-owned enterprises at the expense of the private sector. This indicates a gulf in the understanding of the concept of ‘openness’ between the EU and China.

Program:

10:00–10:05  Welcome and Introduction by Ms. Gwenn Sonck, Executive Director, EU-China Business Association/Flanders-China Chamber of Commerce

10:05–10:35  Presentation of the Position Paper 2020/2021 by Mr. Joerg Wuttke, President of the European Union Chamber of Commerce in China

10:35–10:55  Q&A and final discussion

10:55–11:00   Closing words by Business Europe

About the speaker:

Mr. Joerg Wuttke

Joerg Wuttke is Vice-President and Chief Representative of BASF China in Beijing since 1997. In May 2019, he was elected for a third term as the President of the European Union Chamber of Commerce in China.
 
Since 2019, Wuttke is Vice Chairman of the CPCIF International Cooperation Committee, a group representing multinational companies in China’s Chemical Association. From 2011 to 2019, he served as Chairman of the Business and Industry Advisory Committee to the OECD’s China Task Force. From 2007 to 2010, and from 2014 to 2017, Wuttke was President of the European Union Chamber of Commerce in China. He was a founding member of the German Chamber of Commerce in Beijing and served as Chairman of the Board from 2001 to 2004. Wuttke has lived in China for more than 20 years.

Practical Information: 


Date and time:  October 6, 2020 – 10:00 AM – 11:00 AM CEST

Location: Online (Zoom)

Price for members (EU-China Business Association/Flanders-China Chamber of Commerce/European Union Chamber of Commerce/BusinessEurope): Free of charge

Price for non-members: 25€ (excl. VAT)

SUBSCRIBE HERE

The Flanders-China Chamber of Commerce is organizing a webinar focused on Financial Incentives for Doing Business with China, which will take place online on 1 October 2020 from 10:00 am to 11:00 am. During this session experts will share information on financial incentives for doing business with China.

The programme is as follows:



10:00 – 10:05: Introduction by Ms. Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce.

10:05 – 10:15: “Different Investment Vehicles for Belgian Companies investing in China and Chinese Companies investing in Belgium or in Europe” by Mr. Rik Daems, Senior Advisor International Investment Funds FPIM – SFPI, Vice Chairman and President of the Investment Supervisory Board CBDEIF, President Parliamentary Assembly of the Council of Europe PACE-COE

10:15 – 10:25: “Capricorn Partners: Equity & Support for China roll-out” by Mr. Steven Levecke, Senior Investment Manager, Capricorn Partners.

10:25 – 10:35: “Financial Instruments of PMV” by Mr. Tim Lievens, Senior Investment Manager PMV.

10:35 – 10:45: “Exporting to China? Investing in China? Support by Credendo” by Mr. Wim Bosman, Business Development Specialist, Marketing and Communication, Credendo, Export Credit Agency.

10:45 – 11:00: Question and Answer Session

Practical Information:


Date and time: October 1 , 2020, 10 am CEST

Location: Online

Price for members: Free

Price for non-members: 35 €

SUBSCRIBE HERE

The EU-China Business Association and the Flanders-China Chamber of Commerce organized a webinar focused on “Experiences of investing in Weihai, Shandong province” on September 17, 2020.

Ms. Gwenn Sonck, Executive Director of the Flanders-China Chamber of Commerce and the EU-China Business Association and Honorary Citizen of Weihai City and Shandong Province, explained that in her job she met many delegations, but clearly remembered her first contact with Weihai 15 years ago. A delegation from Weihai visited Bekaert in Belgium, and during a luncheon introduced the city. Their openness and the advantages of their city made her want to learn more, and she was invited to visit the city. She was impressed by the natural beauty of the city, the friendliness of the people and the efficiency of the government. Delegations were exchanged and many friendships developed. A long-term cooperation was established between the Flanders-China Chamber of Commerce, the Weihai Foreign Commerce Bureau, other government departments and development zones. The city of Ghent also established a partnership with the city of Weihai. Many cities that are promoting themselves to attract foreign investment all say they are unique. The difference is that Weihai is really unique. Weihai only has 1,000 square kilometers of seaside and the city won many awards for its clean air, clean city, best habitat for living, business-friendly environment etc.

Mr. Chen Hui, Chief Representative of Weihai in Europe, introduced Weihai’s investment climate and the different strong sectors of Weihai. The city is located at the eastern-most tip of the Shandong peninsula and is the nearest city to South Korea in China. It takes 45 minutes to fly to Seoul and one hour to Beijing and Shanghai. The city has a land area of 5,800 sq km with a population of 2.84 million. The coastline is 986 km long. The city has a complete logistics infrastructure and convenient traffic conditions. The network of airlines, railways, sea routes and freeways connect Weihai with the whole of China and the world. There are four class-1 ports in Weihai with 27 sea routes to Japan, South Korea and domestic cities, including nine sea routes to South Korea. The passenger throughput of Weihai airport reached 3.09 million passengers in 2019 with direct flights to 24 cities. Weihai is a city of universities. Famous Chinese universities like the Harbin Institute of Technology and Shandong University set up campuses in Weihai. There are 11 institutes of higher learning where 20,000 students graduate every year.

Weihai has a sound industrial base and developed marine industry. There are 15 national and provincial-level industrial parks. There are 20,000 industrial enterprises, including 18 listed enterprises. Weihai is a famous and important production base for medical devices, fishing gear, tires, carpets, new materials and printers. Weihai has a developed marine industry and rich marine resources. There are more than 300 species of sea products. The output of aquatic products reached 2.7 million tons and the processing output reached 3.54 million tons. Weihai was one of the first open coastal cities in China and has 19 friendly sister-city relationships. The city has set up economic and trade cooperation with more than 200 countries and regions. In 2019 the import and export volume reached CNY140.2 billion, while the actual use of foreign capital amounted to USD1.22 billion. A total of 1,441 foreign-funded enterprises settled down in Weihai, including Hewlett-Packard from the U.S., Hyundai and Samsung from South Korea, Hitachi and Mitsubishi from Japan, Bekaert and Beaulieu from Belgium, Air Liquide from France and other Fortune 500 companies. Weihai is one of the first pilot cities for the innovative development of the service trade. Recognized technologically-advanced services companies will pay corporate income tax at a reduced rate of 15%. Weihai has become a hub city linking the east and the west for international logistics. Freight trains link Weihai to Hamburg and Duisburg in Germany.

There are seven industrial clusters with an output of more than CNY100 billion and the city is striving to cultivate one to three CNY10-billion-level enterprises in each industrial cluster within three years. One cluster is new generation information technology. Key enterprises have investments from all over the world. The electronic information and intelligent manufacturing industrial park has been built up. There are three development directions: printing devices and components, IC design, assembly and test, and mobile smart terminals, VR and AI.

A second cluster is new medicine and medical devices, including Wego Group and Disha Pharmaceutical Group. The Medical Devices and Biomedical Industrial Park has a planned area of 18 sq. km. and a construction area of 5 million sq. m. There are five development directions in this cluster: 1. core technology, industrialization and application of high-performance medical devices; 2. high-resolution acousto-optic electromagnetic medical imaging equipment; 3. rehabilitation equipment; 4. new targeted and multiple targeted drugs and anti-tumor drugs; and 5. therapeutic vaccine and gene therapy drug development. The revenue of this cluster could reach CNY130 billion by 2022.

The third cluster is advanced equipment and intelligent manufacturing. The development directions of this cluster are: 1. robots and key components; 2. intelligent manufacturing systems; 3. CNC machine tools and systems; 4. marine engineering equipment; and 5. vehicles and key parts. The goal is to achieve a revenue of CNY220 billion by 2022.

The fourth cluster is carbon fiber and other composites. The Carbon Fiber Industrial Park has a planned area of 2.5 sq. km. to introduce carbon fiber production and R&D institutions. The Graphene Industrial Park aims to create a graphene industrial cluster based on ultra-high purity graphite materials. The development directions are: 1. high-performance carbon fiber production, R&D and industrialization; 2. R&D of graphene material application technology; 3. R&D and production of metal-, ceramic-, and non-metal-based ceramic materials; and 4. production of high-performance polyurethane, engineering plastics, degradable polymers, silicon polymers, etc. The revenue to be achieved by 2020 is CNY110 billion.

The fifth cluster is marine biology and health food. The Marine High-tech Industrial Park has been set up with a planning area of 37 sq. km. It is the only marine biotechnology park in Shandong province. The development directions are 1. marine biology and genetic drugs, etc.; 2. deep processing of marine products; and 3. deep processing of agricultural products such as ginseng and peanuts. The revenue of this cluster is expected to reach CNY220 billion by 2020.

The sixth cluster is leisure and sports products. The development directions are: 1. R&D and design of high-end textiles, clothing, carpets and sports products; 2. design and production of high-end fashion brands; and 3. introducing world-renowned fashion events. The target revenue is CNY110 billion by 2022.

The seventh and last cluster is health and wellness tourism. Weihai is one of the most attractive tourist destinations in China and a famous hot spring town with nine high-quality hot springs. The development directions are: 1. medical colleges, research institutions and hospitals; 2. rehabilitation physiotherapy and elderly care; 3. high-end hotels and theme parks; and 4. sports, film and TV bases. The revenue target is CNY130 billion by 2022.

The European office of Weihai is located in Munich, tel. +49-17632860311, email: chenhuich2003@aliyun.com

Mr. Jun Liao, Divisional CEO Specialty Business, member of the Bekaert Group Executive, Bekaert, gave a short description of the activities of Bekaert in China and why it went to Weihai. Bekaert entered the China market in 1992. The first venture was established in Jiangyin, close to Shanghai, to make tire cord and stay close to international customers who had moved their business into China. Later the company saw the great potential of the China market and expanded its business to other cities. The company set up a business in Weihai in 2003. Invested capital has grown from USD30 million to over USD100 million. Total investment has grown from USD30 million to USD310 million. Bekaert’s growth in Weihai is linked to the open investment environment. During the Covid-19 outbreak the company received tax and financial benefits. During the Covid-19 epidemic we very quickly resumed our production with the support of the city government. The government was very supportive. Weihai also has advantages in human resources with its top class universities and technology schools. When you face difficulties, you can go to the city government, which is very open and supportive. A tip to do business in China is to conduct due diligence before you make a big investment decision.

Mr. Berthold Arends, General Manager, Marquardt Switches Weihai, gave a description of the activities of Marquardt in Weihai and why it choose the city to invest. The German family-owned company is headquartered in Baden-Würtemberg and started its China business in 1996 in Shanghai’s Pudong. At that time it was in the middle of nowhere, but Pudong developed very fast. The core business was switches for power tools, drilling machines, etc. Several years later the company expanded its business in automotive switches, anything you can press in the car and also hidden systems, including steering locks. Since 2014 there has been a further development in battery management systems. Due to the huge development, especially in automotive, the company was looking to expand in Asia. The location in Shanghai was fully occupied and new projects required manufacturing space. The company was looking not only to China but finally the decision was made to stay in China because the core business would be in electrical vehicles. China is very much supporting development in EVs, and the core know-how is located in China. Weihai had certain advantages. Logistics-wise it is close to customers in Changchun, Beijing and Qingdao, but also in Korea and Japan. Transportation by sea, rail, road and air is very well developed, which is a big advantage. There is a very strong willingness to develop Weihai into a high-tech area. There are famous and well-equipped universities willing to cooperate with companies. People are very open to new challenges and very stable. Compared to other regions in China, people in Weihai are much more committed to a choice they made. Weihai does not have much automotive industry, so Marquardt is pioneering. It started an apprenticeship program for students from vocational colleges to start a training program. In two years time they will become new employees. Support from the local government is very important. As a certified high-tech company it can receive tax benefits. When you are a new investor in China you would need a consultant or partner to understand how to start. There are a lot of local regulations which are challenging to get to know all by yourself. You also need to have the right contacts and support from the local authorities.

How did Weihai cope with Covid-19? Mr. Arends went to Germany for a winter vacation on January 19 and hadn’t heard anything about the disease, but after landing in Germany, everybody was talking about corona. It was a big challenge to go back to China as flights were canceled, but he succeeded in the beginning of March. The company recovered four days after Chinese Spring Festival, losing only a few days of work, and restarted 100% with measures such as wearing masks and performing disinfections. The company never faced any issues. Weihai had only around 40 cases. The key success factor for keeping the number of Covid-19 cases so low is that the Chinese authorities don’t allow anybody to come into the country without 14 days of quarantine in a specified hotel. It is impressive how strict and fast the measures were implemented. Also impressive was how people followed the measures.

Mr. Luis S. Galán, CEO and Founder of 2Open China Ecommerce, discussed the importance of e-commerce and also shared his experiences in Weihai. His company also started in Pudong. Mr. Galan came to China with a scholarship to study for his MBA in the China-Europe Business School in Shanghai. He now has a team of 30 people in Weihai. It has a competitive advantage in human resources. His company – 2Open – is a service provider for e-commerce solutions. Weihai is a great place to live and develop a business. Weihai is like the Mediterranean with seaside, palm trees and blue skies. People in Weihai have a great attitude and willingness to help. Mr. Galan first tip to do successful business in China is to have an appreciation for China and the right mindset. Don’t go to China with a negative mindset. Doing business is serving and helping each other. By doing business we are helping our clients, consumers and employees. Secondly, try to have a stable and motivated team. Treat them as family. Thirdly, be realistic as everybody wants to go to China. Thinking that you are going to make easy money is totally wrong. To compete in China you need strong resources and a strong mindset.

Companies interested to know more about Weihai’s investment environment, can send an e-mail to: gwenn.sonck@flanders-china.be

The Flanders-China Chamber of Commerce and Flanders Investment & Trade organized a webinar on “Financial support measures for doing business with China” on September 18, 2020.

Ms. Gwenn Sonck, Executive Director of the Flanders-China Chamber of Commerce and the EU-China Business Association and Mr. Yves Roekens, Head Subsidies and Financing, Flanders Investment & Trade, introduced the subject of the webinar. Mrs. Lise Betjes, Expert Subsidies, Flanders Investment & Trade, talked about the conditions to apply for the starter’s package internationalization. They are similar to those of special export support. In 2020, FIT will distribute a maximum of 150 starter’s packages internationalization of €7,000 each and probably also the same number in 2021. The goal is to internationalize as many Flemish companies as possible. The target group is SMEs who have not yet received any subsidies from Flanders Investment & Trade. The call is being launched from October 5 till 28 to submit the applications.

There are several conditions, the most important one is that the SME has never before received any support from FIT, have a Belgian enterprise number, and being located in the Flemish region. The target group are young innovative enterprises entering the international market for the first time. Some sectors are excluded, specifically those who have already received financial support, such as agriculture, and enterprises who fall outside the scope of this subsidy offer, such as the hospitality and tourism sector, which through their activities are already active internationally. Companies in receivership cannot apply for subsidies. The subsidy is €7,000 to be used for costs related to international activities, except for salaries and internal company costs. To be reimbursed an invoice has to be received from a third party. This subsidy cannot be combined with support measures included in the ruling of 2016, nor with special export support measures.

Besides the financial support, the starter’s pack also includes coaching. The advisor international entrepreneurship will contact the SME three times: at the start of the project, during the execution period and afterwards. The detailed procedure for submitting an application is available on the FIT website. Applications need to be submitted online on the FIT website during the period from October 5 till 28. This period is limited because there are only 150 support packages available. When FIT receives 180 applications, the application period will be closed. Therefore it is advisable to submit an application as soon as possible and check beforehand if you can log-in with your ID card. Not all employees’ ID cards are linked to the company. If a problem occurs at log-in, it would still be possible to fix it before October 5.

The subsidy can be used to reimburse costs related to international business for nine months starting on the application date. This could for example include the costs to invite French clients, to adapt the company website, or adapt the packaging for the Chinese market. Upon application, the company will receive a file number, and when the application is completed, also a follow-up number. Companies will still have 10 days to complete their application if needed.

A completed application includes a completed electronic application form, a short presentation of the company and its activities, a description of the project, an implementation plan of up to nine months, and a budget for the minimum amount of the subsidy. At the end of the period it has to be shown that the project has been completed or sanctions may apply.

The applications will be evaluated by a selection committee on the basis of selection criteria. In case of a positive decision the subsidy will be paid within 60 days. Subsidies for the 150 packagess of 2020 will be paid out before the end of the year. After finishing the project, the company needs to submit a commercial report. FIT will check if there is proof of costs made and may request submission of invoices and other documents. In case the project was not completed, there is insufficient proof of costs having been made, or insufficient cooperation with FIT, FIT may decide not to provide further support the following year.

Mr. Yves Roekens provided further information about special export subsidies related to Covid-19 for Flemish SMEs who before the outbreak already had achieved satisfactory exports. The application period is the same as the one for the starter package. There are 500 special export support packages available of €5,000 and a rush is expected when the application period starts. Conditions to apply include having a least five full-time equivalent employees registered in the last annual account, having no negative capital, and having realized a minimum 20% share of exports during the last financial year. Subsidies will be disbursed according to the first-come-first-served principle.

The target group is substantial, as another 500 packages may be offered next year, subject to approval during the budget negotiations of the Flemish government at the end of the month. As FIT is expecting a rush it is vital to submit applications as soon as possible. Those who fail may still apply for support under the 2016 ruling. The application procedure is similar to the one of the starter’s packages already explained previously. Subsidies will be approved and paid out before the end of the year. The period however is six months instead of nine months.

The Export Expo which was planned this year had to be postponed due to Covid-19 and will be organized from February 9 till 11, 2021 at Palace 1 of Brussels Expo, either in a physical or virtual format, including the FIT representatives around the world.

Further questions can be submitted by email at subsidies@fitagency.be

Q&A: Is the starter’s package also available for start-ups and may consultancy expenses to explore the market also be reimbursed? Lise Betjes: Starts-up are part of the target group, but they should not have previously received any subsidies from FIT. If the company has invoices, costs can be reimbursed, only salaries and internal working expenses are excluded. Costs related to a student sent abroad to do market studies can be reimbursed.

Mr. Luc Royackers, Region Coach Contact Center, Agency for Innovation and Entrepreneurship (VLAIO), introduced growth subsidies for SMEs’ internationalization projects. The Agency Innovation & Entrepreneurship is a sister organization of FIT focused on organizing a good climate for Flemish entrepreneurs, by providing information, coaching and networking through partner organizations. VLAIO is using a business case approach, looking at the company’s project and not only at the subsidy measures. It refers companies to partners in the VLAIO network and determines whether subsidies might be disbursed. VLAIO’s support measures include an “SME growth subsidy”, which might be applicable to internationalization projects if extra knowledge in the strategic field is required. Many SMEs need a bigger budget, so VLAIO is offering a growth subsidy to SMEs who have a clear growth vision, related to a transformation, innovation or internationalization project. In that case they are faced with something new and would need more strategic knowledge. Subsidies are intended to buy external advice or employment of a strategic collaborator. VLAIO focuses on companies doing something new and encourage them to grow. The subsidy is €25,000 to employ a new collaborator and/or an external consultant, which together amounts to €50,000. The companies need to have a vision and a plan to implement it, not just a vague idea. They need to analyze which company processes will change as a result of the growth strategy, such as human resources, IT and marketing. To manage the changes the company will need knowledge. The evaluation criteria include the vision on economic growth, a tipping moment of doing something new, a plan to achieve the objectives, and the necessity of strategic knowledge. The application needs to be submitted during the month prior to employing the new strategic collaborator. There will also be a meeting with a case file handler and the decision may take a few months. An e-window for entrepreneurs is also available at www.e-loketondernemers.be

VLAIO has a subsidy databank including information about subsidies and financing and a series of subsidy guides.

More information is available at: www.kmogroeisubsidie.be and application procedure.

luc.royackers@vlaio.be