Leeds region creates direct link to China tes a

PA G E 1 6
CHINA DAILY
JUNE 27-JULY 3, 2014
JUNE 27-JULY 3, 2014
EUROPEAN WEEKLY
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Spotlight
A lot more binds
special pair than
their old ties
to the rag trade
Leeds region creates
direct link to China
Andrew Disbury, director of
the international office at Leeds
Metropolitan University
MEMBERS OF NEW BUSINESS CLUB SAY THEY HAVE THE SKILLS
CHINA NEEDS TO BECOME A MORE CONSUMPTION-LED ECONOMY
By CECILY LIU
[email protected]
Y
ou’d be forgiven for thinking there’s little similarity between the former industrial region of Yorkshire, in the
north of England, and China.
But a new business club being established there by a
group of influential business, educational and industry
organizations is hoping to grow dialogue between the two sides,
based on one very basic business principle: they both need what
each other has.
Chris Bates, head of research and
analytics at TPP
Mark Skipper, chief executive of
Northern Ballet
Hinrich Voss, director of the Business
Confucius Institute at the University of
Leeds
Paul Cotton, a senior partner
at Eversheds
These are encouraging days for the
former industrial area, now being
grouped under the name Leeds City
Region.
After the collapse of many its traditional activities, it is now considered
the UK’s largest economy and population center outside London, generating
4 percent of national economic output
and employing 1.3 million people.
Look back not too far in history and
you see Leeds, the area’s biggest city
with 1.8 million people, during the British Industrial Revolution being developed into a major industrial center:
wool was the dominant industry but it
also had strong flax, engineering, iron
foundries, printing, and other industries.
Today though, this new region —
which covers a wide and varied physical landscape and takes in much of
the Yorkshire Dales National Park —
has seen those former industrial sites
transformed by more modern industry
sectors.
It has a diverse economy consisting
of about 106,000 businesses, spreading
across its main towns of Leeds, Bradford, York, Kirklees, Barnsley, Wakefield, Selby, Calderdale, Harrogate and
Craven, which generate output of 52
billion pounds ($83 billion; 61 billion
euros).
Officials running the region, which
has a population of about 7 million,
position it as a center of economic
intelligence, business innovation, the
green economy, transport, housing
and regeneration, healthcare, financial services, education and the creative
industries.
But like many former industrial
areas of the UK, with that level of diversification, come ambitions to look further afield to spread the net, and they
are now firmly looking East.
Business links between China and
the region are growing fast, facilitated by the range of opportunities the
region offers China, and its increasing
desire to attract foreign investment.
According to officials, the close match
between Leeds’ historical strengths and
what China needs in order to upgrade
its skills base, move up the production
chain, and achieve a structural shift to
a consumption focused economy provide massive opportunities for business
cooperation.
Hence, the creation of the Leeds City
Region China Business Club.
Co-founded by the Business Confucius Institute at the University of Leeds,
the promotional agency Leeds and
Partners, the China Britain Business
Council, Xiamen Chamber of International Commerce, the British Chamber
of Commerce in Hong Kong, and UK
Trade and Investment,
More
the business club is
coverage focused on capturing
Chinese market opporWords gain
international tunities and growing
Leeds-China links, says
wings,
Hinrich Voss, director
page 19
of BCIUL.
“Having a club will help greatly,
because it brings together many likeminded people.
“So if someone has a question or
problem about doing business in China, the club can help.”
Voss says demand for such a group
in Leeds came mainly from the business community because many needed
help going into China or working with
Chinese companies.
Officially due to be launched on July
2 by CBBC Chief Executive Stephen
Phillips, the club will have an advisory
panel of businesses, from a diverse
range of sectors, that are already
knowledgeable about China.
The idea is for members to share
experiences, and it has already held its
first advisory panel meeting, during
which it was agreed that it will serve
as a “peer to peer support network”, as
well as to attract inward investment
from China.
Its first major event is being planned
for late September, a forum titled “Making a Noise”, which will be part of the
club’s “how to” event series.
Voss says fostering a strong ChinaLeeds business relationships is a key
objective of BCIUL, which was founded in November 2012 as a partnership
between the University of Leeds and
the University of International Business and Economics in Beijing.
Many Confucius Institutes, started
by the Chinese government in 2004 to
promote Chinese language and culture
abroad, have their own priorities, and
BCIUL has chosen a business focus.
Founding director Peter Buckley is a
professor of international business at
the University of Leeds, and has been
instrumental in developing the link
with the highly respected UIBE.
This focus on business means BCIUL
concentrates on help related to doing
business in China as well as teaching
mandarin, with strong support from
Leeds University Business School, says
Peter Moizer, its dean and a professor
of accounting.
Like the University of Leeds, Leeds
Metropolitan University is also keen to
establish links with China.
Andrew Disbury, director of its international office, says it established an
office in China in 2012 to help attract
more Chinese students and he has
spent a lot of time in the country.
Metropolitan also has a partnership
with Zhejiang University of Technology to provide a joint masters degree,
which has already been completed by
about 300 students, and has established a partnership with Beihang University, a public research university in
Beijing, for student exchanges.
A fantastic variety of subjects has
been taken up, including music production, architecture, art and design,
as well as the more traditionally popular business subjects, Disbury says.
Meanwhile, away from academia,
Leeds is firmly establishing strong Chinese links across other sectors.
AFTER TRIP TO TWIN CITY HANGZHOU,
LEEDS’ FORMER LORD MAJOR SAYS LEEDS
AND CHINA CAN WORK WELL AS A TEAM
By CECILY LIU
in the city, but also open a business
there.
homas Murray, the former
“More can be done, and we cerLord Mayor of Leeds, says he tainly need to do more to understand
was amazed by China when what the Chinese want,” he adds, and
he visited there for the first that may include offering more Chitime in January.
nese food, or other aspects of life they
Touring Hangzhou and Beijing, may miss from back home.
he says his first impression was the
In particular, Murray believes the
sheer size.
city is not geared up during gradu“It was overwhelmingly big; it ation time when a large number of
looked very busy; there was lots of Chinese parents come to Leeds for
development going on; it looked about a week to help their children
prosperous, and doing
celebrate graduation.
well,” says Murray,
“We should be offerwho has just completing more places to
ed his one-year term
have nice meals and
as Lord Mayor, a busy
a nice time, and make
ceremonial post held
sure they have a comby a member of Leeds
fortable stay,” Murray
City Council.
says.
His visit was as
During his time as
part of a business delLord Mayor, he invitegation to China orgaed numerous Chinese
nized by Leeds and
students to his official
Partners, the city’s prooffice in the historic
motional agency, at a
Civic Hall, which houstime when companies Thomas Murray, former Lord es Leeds City Council’s
from the Yorkshire city Mayor of Leeds
chambers, and a lavish
continue to be encourbanqueting hall.
aged to do business with large and
He says some were left “overfamiliar cities in China, including whelmed” in a good way, by the
Hangzhou, the city’s twin.
experience, and opening his door to
“In Hangzhou, you land at the air- Chinese students and their families
port and get a taxi down to the hotel in this way also helps foster business
by the lakes in 40 minutes but right ties between the city and the country.
away you are traveling through an
Many parents have grown familiar
urban environment,” he says.
with Leeds, and have gone on to look
“In Leeds you’re traveling through for opportunities to invest in the city.
lots of countryside first, then you hit
Murray came to Leeds himself
the city.”
originally in 1968 to study at the UniA highlight of Murray’s visit to versity of Leeds and after graduating
Hangzhou was his visit to the head he stayed to work there as a science
office of Alibaba, China’s biggest, and teacher, and subsequently became a
the world’s fastest-growing, online local councilor.
commerce company.
He says when he first came to
“It was really impressive and clear- Leeds it was still a traditional indusly highly successful.”
trial hub, and has since gone through
Despite having only visited China a period of post-industrial developonce, Murray says he is familiar with ment to grow strength in various
the country and its people, because other sectors.
of the rapid growth of the Chinese
He adds that this is a journey Chicommunity in Leeds.
na now also needs to make, and it
Many Chinese firms go there to can learn lessons from Leeds in this
study, and then stay on to work and respect, he says.
live.
Both share common ground, which
“I have met many Chinese students, makes for a solid foundation of coopand they seem to enjoy learning and eration.
living here. Some will stay, and we
“When I first came, Leeds was the
would like more to do that, because largest clothes-making factory in the
they are so well educated and show world, but it isn’t now because clothes
great promise,” Murray says.
are made in China.
However, Murray says Leeds
“Leeds has become post-industrial,
should do more to help its Chinese and this is what China is looking to
population, not only to find a home do too.”
T
Civic Hall, the office of Leeds City Council.
are what make TPP’s offers so appealing to his Chinese customers.
Glocal Procurement Services Limited is another Leeds medical firm helping to facilitate trade between China
and the West.
Founder and managing director
Nick Carter says he helps Chinese
equipment makers establish ties with
Western suppliers, as well as helping
Western medical equipment brands to
access the emerging Chinese market.
Medical breakthroughs
Tourism links
Companies in its medical sector,
especially, have been quick to grasp
opportunities to expand into China,
such as TPP, which made its name
by providing medical records sharing technology for the UK’s National
Health Service.
Its first foray into China was in March
last year as part of a trade delegation to
Hangzhou and Shanghai, organized
by UK Trade and Investment, which
works with UK-based businesses to
ensure their success in international
markets through exports.
Since then, TPP has established
cooperation with the health bureaus
of Zhejiang and Jiangsu provinces
and has signed an agreement with the
Zhejiang Center for Disease Control
to enhance surveillance capabilities,
including modern geographic mapping
technology.
Chris Bates, its head of research and
analytics, says his team works closely
with health bureaus in China to make
sure they have appropriate security
around their data storage, and his team
also delivers training to the Chinese
users of its technology.
“Our approach is very hands on. We
are always available,” Bates says, adding that flexibility and responsiveness
Located so near Yorkshire Dales
National Park, Leeds is also becoming a strong draw for Chinese tourists,
with many of the city’s retailers keen to
target high spending shoppers.
Simon Oxby is operations manager
at Berry’s, a Leeds jeweler that has
created its own partnership with a
Chinese tour operator to promote its
products to Chinese tourists.
Berry’s is in the process of registering its trademark name in China,
which would allow it to expand there
in future.
Another example of tourism cooperation is Six Degrees Consultancy, based
in Halifax, West Yorkshire, which helps
Chinese tour operators plan trips and
book the most desirable accommodation for their customers in the UK.
Trevor Lake, its managing director,
says traditionally Chinese visitors to
the UK have opted for the major tourist
centers such as London or Manchester,
but more now want to see the British
countryside and stay at stately homes
to get a different experience.
Before founding Six Degrees, Lake
worked extensively in the British hotel
industry, and says his knowledge and
contacts allow him to respond to the
needs of Chinese visitors quickly and
PHOTOS BY CECILY LIU / CHINA DAILY
efficiently, and make sure Chinese visitors receive the best service possible.
Joanna Lavan has also set up her
own company, Connect China, based in
Batley, West Yorkshire, which helps UK
companies enter the Chinese market
or solve problems they may encounter
in China.
In 2000, she was asked by Leeds Metropolitan University to lead a project to
build business links between Leeds and
Hangzhou.
When that ended in 2004 she saw
the natural progression of her career
as setting up Connect China.
“We do training courses to help
companies understand China. We do
translation, interpretation, helping out
with trade delegations, helping clients
to solve problems concerning Chinese
clients or Chinese suppliers, and a lot
more,” Lavan says.
DWA Architects, in nearby York, also
has a growing reputation in China.
Last year, it won a contract to design
an assisted living complex in Foshan,
Guangzhou province, along with its
Beijing-based partner TLD Design Consulting.
The complex is designed to accommodate 750 elderly people with severe
and terminal care needs, with 450 independent and assisted living specialist
apartments.
Mel Fairbourn-Varley, director of
international projects at DWA, says
his firm’s expertise in understanding
the needs of the residents in assisted
living apartments was its key to winning the contract.
As all this varied trade and investment grows between China and Leeds,
international law firms with offices in
the city are increasingly finding themselves advising Chinese clients.
“We’ve had more Chinese activities
in the last two years than previously,”
says Josh Wong, a partner at DLA Piper.
Many of the area’s business links
have been established by Chinese
family business owners visiting their
children who study in Leeds, who over
time have grown to like the region, and
then spotted business opportunities,
he says.
Wong says many of his Chinese clients have invested in Leeds in the form
of mergers and acquisitions, injecting
capital into British heritage brands,
particularly, to help them expand their
reach into the Chinese market.
Paul Cotton, a senior partner at
Eversheds, one of the world’s largest
corporate law firms, says it originally
expanded into China by following its
clients who had global operations, but
more recently its Chinese client base in
the UK has grown.
Eversheds first entered China in
2006, opening an office in Shanghai,
which was followed by an office in
Hong Kong in 2009 and Beijing in 2013.
Cotton’s team in Leeds is taking on
many more Chinese clients, he says,
particularly in Leeds’ new boom sectors of energy, retail, food and education, as well as traditional industries.
But it is not just private sector businesses and education that are enjoying
the growing relationsip between Yorkshire and China.
In January, Mark Skipper, chief executive of Northern Ballet in Leeds, led
a tour to China as part of a delegation
organized by the city’s promotional
agency Leeds and Partners, a partner
in the fledgling China Business Club.
Providing a cultural backdrop to a
business-related group offers a different view of the city to potential Chinese
partners, he says.
The January tour was the fifth his
team had made to China in recent
years. This time, Northern Ballet performed an adaptation of Shakespeare’s
play, A Midsummer Night’s Dream.
In addition to giving six full-scale
performances, it gave shorter exerpts
to accompany the various business networking events organized by Leeds and
Partners.
Skills for Care, a Leeds charity which
works with care homes to set the standards and qualifications for social care
provision in the UK, is also working
hard to grow its China presence.
“The Chinese care system has a lot
of similarities with the UK, particularly
as both countries have a challenge with
dementia,” says James Turner, head of
business development at Skills for Care.
“We hope to support the Chinese
care sector by sharing our expertise
and understanding of best practice, in
terms of how to deliver care, how to
nurture a person, and how to care for
their families.”
Roger Marsh, chairman of the Local
Enterprise Partnership for the Leeds
City Region, says Chinese investment
represents massive potential for economic growth and jobs for the region.
The partnership recently submitted
a strategic economic plan to the UK
government to bid for a share of the
local growth fund, which is designed
to help small businesses based in Leeds
expand and recruit local residents.
The plan outlines Marsh’s ambition to deliver an additional 5.2 billion
pounds in economic output, and an
extra 62,000 jobs by 2021.
Marsh says that if the targets are
met, Leeds and its surrounding area
will become even more attractive to the
growing number of Chinese, and other
overseas investors eyeing this part of
northern England.