FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

China Business Weekly26 May 2020

FCCC/EUCBA ACTIVITIESWebinar: Assessing COVID-19 Economic Impacts on China, Implications for Global Business – 27 May 2020, 9.00 am CETThe EU-China Business Association and the Flanders-China Chamber of Commerce in partnership with The ConferenceBoard are organizing a webinar on: 'Assessing COVID-19 Economic Impacts on China - Implications for GlobalBusiness'.

The business community is deeply concerned about the impact of the COVID-19 crisis on China’s economy, where itcaused immense internal shocks on both supply and demand in Q1. Every company with a supply chain in China hasbeen hit hard, some to the point of paralysis. So too for consumer companies impacted by store closures, workerquarantines, and operational bottlenecks – many of which continue to this day. The extent of China’s economic shutdown,and the breadth of the “restart” that is now taking place, are unprecedented in modern economic history. And now, theChinese economy is being hit hard again by collapsing export demand as major economies around the world reel fromCOVID crises in their countries.

Foreign companies operating in China must prepare for slow growth, protracted volatility, and a possibly ongoing virusoutbreak conditions, that might last for months and involve broad ripple effects in China and globally.

Key questions to be addressed:

• What is the status of China’s economy across major sectors?

• Will consumption rebound in typical post-crisis fashion, as was the case with SARS in 2003?

• What policy measures is the Chinese government undertaking, and how much will they help?

• What operating environment changes in China should be anticipated in the wake of the crisis?

• How is the crisis impacting Sino-foreign relations, and what does the future look like for market bifurcation andsupply chain decoupling in China?

Speakers:Mr. David HoffmanSenior Vice President Asia and Managing Director of the China Center for Economics & Business The Conference Board

Mr. Filip PintelonSenior Vice-PresidentGeneral Manager Healthcare Business GroupBarco

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

China Business Weekly26 May 2020

FCCC/EUCBA ACTIVITIESWebinar: Assessing COVID-19 Economic Impacts on China, Implications for Global Business – 27 May 2020, 9.00 am CETThe EU-China Business Association and the Flanders-China Chamber of Commerce in partnership with The ConferenceBoard are organizing a webinar on: 'Assessing COVID-19 Economic Impacts on China - Implications for GlobalBusiness'.

The business community is deeply concerned about the impact of the COVID-19 crisis on China’s economy, where itcaused immense internal shocks on both supply and demand in Q1. Every company with a supply chain in China hasbeen hit hard, some to the point of paralysis. So too for consumer companies impacted by store closures, workerquarantines, and operational bottlenecks – many of which continue to this day. The extent of China’s economic shutdown,and the breadth of the “restart” that is now taking place, are unprecedented in modern economic history. And now, theChinese economy is being hit hard again by collapsing export demand as major economies around the world reel fromCOVID crises in their countries.

Foreign companies operating in China must prepare for slow growth, protracted volatility, and a possibly ongoing virusoutbreak conditions, that might last for months and involve broad ripple effects in China and globally.

Key questions to be addressed:

• What is the status of China’s economy across major sectors?

• Will consumption rebound in typical post-crisis fashion, as was the case with SARS in 2003?

• What policy measures is the Chinese government undertaking, and how much will they help?

• What operating environment changes in China should be anticipated in the wake of the crisis?

• How is the crisis impacting Sino-foreign relations, and what does the future look like for market bifurcation andsupply chain decoupling in China?

Speakers:Mr. David HoffmanSenior Vice President Asia and Managing Director of the China Center for Economics & Business The Conference Board

Mr. Filip PintelonSenior Vice-PresidentGeneral Manager Healthcare Business GroupBarco

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

Moderated by:Ms. Gwenn SonckExecutive DirectorFlanders-China Chamber of CommerceEU-China Business Association

Practical Information:Date and time: May 27, 9.00-10.00 am CET

Location: Online

Price for members: Free

Price for non-members: €35 (Excl. VAT)

SUBSCRIBE HERE

Webinar: Best IP Practices for R&D in China – 17 June 2020, 10:30 am CEST

Event Details:Event Type: Webinar

Date: 17 June / 10:30 - 11:30 CEST

Event Description:The Flanders-China Chamber of Commerce (FCCC) is organizing in partnership with the China IPR SME Helpdesk awebinar on the best practices for R&D activities in China from an IP perspective, in partnership with the Flanders-ChinaChamber of Commerce (FCCC). The session will be held by the IP Business Advisor Matias Zubimendi, who will give apresentation on a successful IP strategy when investing in R&D in China. The webinar will end with a Q&A session whereattendees can raise their questions and interact with the speakers.

Agenda10:30 – Introduction to the webinar and the services of the China IPR SME Helpdesk – Peter Sczigel (China IPR SME

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

Moderated by:Ms. Gwenn SonckExecutive DirectorFlanders-China Chamber of CommerceEU-China Business Association

Practical Information:Date and time: May 27, 9.00-10.00 am CET

Location: Online

Price for members: Free

Price for non-members: €35 (Excl. VAT)

SUBSCRIBE HERE

Webinar: Best IP Practices for R&D in China – 17 June 2020, 10:30 am CEST

Event Details:Event Type: Webinar

Date: 17 June / 10:30 - 11:30 CEST

Event Description:The Flanders-China Chamber of Commerce (FCCC) is organizing in partnership with the China IPR SME Helpdesk awebinar on the best practices for R&D activities in China from an IP perspective, in partnership with the Flanders-ChinaChamber of Commerce (FCCC). The session will be held by the IP Business Advisor Matias Zubimendi, who will give apresentation on a successful IP strategy when investing in R&D in China. The webinar will end with a Q&A session whereattendees can raise their questions and interact with the speakers.

Agenda10:30 – Introduction to the webinar and the services of the China IPR SME Helpdesk – Peter Sczigel (China IPR SME

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

Helpdesk)

10:35 – Presentation of the Flanders-China Chamber of Commerce – Gwenn Sonck (FCCC)

10:40 – Best practices for R&D in China – by Matias Zubimendi (China IPR SME Helpdesk)

11:15 – Q&A session

11:30 – Closing remarks

RegistrationRegister for the free event at this page.

Earlier session:The PPT and video recording of an earlier session can be accessed HERE.

About the China IPR Helpdesk:The China IPR SME Helpdesk provides free information, first-line advice and training to SMEs to protect and enforce theirIPR in China. The Helpdesk’s services are free to European SMEs and SME intermediaries (including EU embassies) andinclude training events in China and Europe; online tools and materials at www.china-iprhelpdesk.eu and tailored advicefrom our experts by phone, email or through the website.

COVID-19 RESOURCES GUIDE v.3.1The latest version of the Covid-19 Resources Guide v.3.1 is available here and can also be downloaded as a PDF on the website of the Flanders-China Chamber of Commerce (FCCC). The latest statistics of cases and deaths can be consulted on Johns Hopkins University’s CSSE page: https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html

Follow the Flanders-China Chamber of Commerce onLinkedIn – Click here

NEWS FROM OUR PARTNERSMeasures issued to stabilize foreign trade and investment in Shandong

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

Helpdesk)

10:35 – Presentation of the Flanders-China Chamber of Commerce – Gwenn Sonck (FCCC)

10:40 – Best practices for R&D in China – by Matias Zubimendi (China IPR SME Helpdesk)

11:15 – Q&A session

11:30 – Closing remarks

RegistrationRegister for the free event at this page.

Earlier session:The PPT and video recording of an earlier session can be accessed HERE.

About the China IPR Helpdesk:The China IPR SME Helpdesk provides free information, first-line advice and training to SMEs to protect and enforce theirIPR in China. The Helpdesk’s services are free to European SMEs and SME intermediaries (including EU embassies) andinclude training events in China and Europe; online tools and materials at www.china-iprhelpdesk.eu and tailored advicefrom our experts by phone, email or through the website.

COVID-19 RESOURCES GUIDE v.3.1The latest version of the Covid-19 Resources Guide v.3.1 is available here and can also be downloaded as a PDF on the website of the Flanders-China Chamber of Commerce (FCCC). The latest statistics of cases and deaths can be consulted on Johns Hopkins University’s CSSE page: https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html

Follow the Flanders-China Chamber of Commerce onLinkedIn – Click here

NEWS FROM OUR PARTNERSMeasures issued to stabilize foreign trade and investment in Shandong

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

Foreign trade and foreign capital are important engines of China's economic development. The novel coronavirusepidemic has brought a huge impact on China's foreign trade and investment, and threatened China's pivotal position inthe global supply chain. With the effective control of the epidemic in China, enterprises are speeding up the resumption ofoperations, and foreign trade is expected to recover soon. However, the rapid spread overseas has constituted a globalepidemic and it will further drag down the global economy and bring a second blow to China's foreign trade. For thisreason, governments at all levels in China are making all efforts to promote the resumption of operations of foreign tradeand foreign-funded enterprises, accelerate the landing of foreign investment, continuously optimize the businessenvironment, and further expand opening up to the outside world, so as to stabilize the basic market of foreign trade andinvestment.

On April 15, 2020, Shandong Province issued a list of 32 measures to promote the steady development of foreign tradeand foreign-invested enterprises. These measures mainly include phased-in reduction or exemption of social insurance,postponed payments of principal and interest of loans, and appropriate reduction of the price of electricity and gas.Enterprises affected by the epidemic can apply for deferment of housing provident fund and social insurance payments.

Weihai actively responded to the impact of the epidemic and took related measures in terms of capital subsidies, marketdevelopment, credit insurance, financing, and legal services to promote the steady growth of foreign trade. With thesupport of a series of “hard core” policies, Weihai's foreign trade and foreign-funded enterprises have steadily promotedproduction and operations, expanded the market share, and ensured that development is on the fast track.

The Weihai factory is the first to resume operations in Bekaert China. In the production workshop, workers with masks arebusy, automatic intelligent steel cord production equipment is running, and products advance orderly down the productionline. From February to June this year, the company will receive a 5% discount on electricity charges. From February toApril, only half of the contributions to endowment insurance, unemployment insurance and employment injury insuranceneed to be paid. From February to December, the company only needs to partially pay medical insurance costs. Withthese heavyweight policies Bekaert (Shandong) has more confidence in its future development.

Mr. Luc Taerwe, Director of the China Platform at Ghent University, receives Shanghai Science & Technology Award

Mr. Luc Taerwe, Director of the China Platform at Ghent University, is one of the recipients of the 2019 ShanghaiScience & Technology Awards. A total of 308 scientific breakthroughs and distinguished researchers were honored at anawards ceremony at the Shanghai Exhibition Center in Jing’an district. The 2019 awards, for the first time, allowedscientists based overseas to compete directly with locals. Also, renowned foreign scientists were invited to be judges andencouraged to nominate projects. “We have changed our outlook from simply recognizing foreign scientists based inShanghai to rewarding those who have made, or are making, great contributions to the scientific life of Shanghai, nomatter where they are,” said Han Yuanjian, an official of the Shanghai Science and Technology Commission. Among thenominees, 37 projects involved foreign scientists from 11 countries and regions, including the UK, France and Japan. In2006, Shanghai introduced an international cooperation category into the Shanghai Science and Technology Awards tohonor foreign scientists for their involvement in local projects. So far, nearly 30 expats have won such awards.

Luc Taerwe

Belgian engineer Luc Taerwe and American scientist Yu Jinquan received an award fordeepening international exchange and cooperation between China and other countries.Taerwe is Director of the China Platform at Ghent University in Belgium, a platformestablished to facilitate the university’s academic interaction with Chinese universities andorganizations, the Shanghai Daily reports. Yu, Professor at The Scripps Research Institutebased in California, has organized key meetings in China and invited renowned scientists toattend. Also, he has cooperated with local researchers to publish articles in the sciencejournal Nature. Shanghai this year introduced a “science education” category, the first city inthe country to do so. Fifteen projects were awarded. They included books to explain thetreatment of nearsightedness, promote traditional Chinese medicine to children, and raiseawareness of chronic diseases.

Ten people ranging from 35 to 46 were honored as outstanding young scientists. Energy andenvironmental technology topped the winners, accounting for more than a fifth. Biomedicineand pharmaceutical technology accounted for 19.05%, followed by information technology(11.22%) and new materials (7.82%), the Shanghai Daily reports.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

Foreign trade and foreign capital are important engines of China's economic development. The novel coronavirusepidemic has brought a huge impact on China's foreign trade and investment, and threatened China's pivotal position inthe global supply chain. With the effective control of the epidemic in China, enterprises are speeding up the resumption ofoperations, and foreign trade is expected to recover soon. However, the rapid spread overseas has constituted a globalepidemic and it will further drag down the global economy and bring a second blow to China's foreign trade. For thisreason, governments at all levels in China are making all efforts to promote the resumption of operations of foreign tradeand foreign-funded enterprises, accelerate the landing of foreign investment, continuously optimize the businessenvironment, and further expand opening up to the outside world, so as to stabilize the basic market of foreign trade andinvestment.

On April 15, 2020, Shandong Province issued a list of 32 measures to promote the steady development of foreign tradeand foreign-invested enterprises. These measures mainly include phased-in reduction or exemption of social insurance,postponed payments of principal and interest of loans, and appropriate reduction of the price of electricity and gas.Enterprises affected by the epidemic can apply for deferment of housing provident fund and social insurance payments.

Weihai actively responded to the impact of the epidemic and took related measures in terms of capital subsidies, marketdevelopment, credit insurance, financing, and legal services to promote the steady growth of foreign trade. With thesupport of a series of “hard core” policies, Weihai's foreign trade and foreign-funded enterprises have steadily promotedproduction and operations, expanded the market share, and ensured that development is on the fast track.

The Weihai factory is the first to resume operations in Bekaert China. In the production workshop, workers with masks arebusy, automatic intelligent steel cord production equipment is running, and products advance orderly down the productionline. From February to June this year, the company will receive a 5% discount on electricity charges. From February toApril, only half of the contributions to endowment insurance, unemployment insurance and employment injury insuranceneed to be paid. From February to December, the company only needs to partially pay medical insurance costs. Withthese heavyweight policies Bekaert (Shandong) has more confidence in its future development.

Mr. Luc Taerwe, Director of the China Platform at Ghent University, receives Shanghai Science & Technology Award

Mr. Luc Taerwe, Director of the China Platform at Ghent University, is one of the recipients of the 2019 ShanghaiScience & Technology Awards. A total of 308 scientific breakthroughs and distinguished researchers were honored at anawards ceremony at the Shanghai Exhibition Center in Jing’an district. The 2019 awards, for the first time, allowedscientists based overseas to compete directly with locals. Also, renowned foreign scientists were invited to be judges andencouraged to nominate projects. “We have changed our outlook from simply recognizing foreign scientists based inShanghai to rewarding those who have made, or are making, great contributions to the scientific life of Shanghai, nomatter where they are,” said Han Yuanjian, an official of the Shanghai Science and Technology Commission. Among thenominees, 37 projects involved foreign scientists from 11 countries and regions, including the UK, France and Japan. In2006, Shanghai introduced an international cooperation category into the Shanghai Science and Technology Awards tohonor foreign scientists for their involvement in local projects. So far, nearly 30 expats have won such awards.

Luc Taerwe

Belgian engineer Luc Taerwe and American scientist Yu Jinquan received an award fordeepening international exchange and cooperation between China and other countries.Taerwe is Director of the China Platform at Ghent University in Belgium, a platformestablished to facilitate the university’s academic interaction with Chinese universities andorganizations, the Shanghai Daily reports. Yu, Professor at The Scripps Research Institutebased in California, has organized key meetings in China and invited renowned scientists toattend. Also, he has cooperated with local researchers to publish articles in the sciencejournal Nature. Shanghai this year introduced a “science education” category, the first city inthe country to do so. Fifteen projects were awarded. They included books to explain thetreatment of nearsightedness, promote traditional Chinese medicine to children, and raiseawareness of chronic diseases.

Ten people ranging from 35 to 46 were honored as outstanding young scientists. Energy andenvironmental technology topped the winners, accounting for more than a fifth. Biomedicineand pharmaceutical technology accounted for 19.05%, followed by information technology(11.22%) and new materials (7.82%), the Shanghai Daily reports.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

NPC & CPPCC SESSIONSNPC refrains from setting yearly GDP target, defense budget rises by 6.6%

No gross domestic product (GDP) target was set inPremier Li Keqiang's work report to the yearly sessionof the National People's Congress (NPC) in Beijing,which started on May 22. The country's defense budgetis to increase by 6.6% this year, the lowest rise in thepast 20 years, as the economy suffered the shock of a6.8% decline in the first quarter due to the effects ofthe Covid-19 pandemic. For the first time since 1995 not setting a GDP growthtarget reflects the extraordinary circumstances China isfacing, including factors “that are difficult to predict”.China’s decision does not mean it has attached lessimportance to economic growth, but instead shows theauthorities are paying greater attention to high qualitydevelopment, economists said after Premier Li Keqiangdelivered his report.

Premier Li Keqiang said the nation will focus on“ensuring stability on the six fronts and security in thesix areas” this year. China’s policy of “ensuring stabilityon the six fronts” refers to employment, finance, foreigntrade, foreign investment, domestic investment, and marketexpectations. The policy of “security in the six areas”means safeguarding employment, people’s livelihoods, thedevelopment of market entities, food and energy security,the stable operation of industrial and supply chains, andthe smooth functioning of society. By implementing thosepolicies, “we will be able to keep the fundamentals of theeconomy stable”, Li said. The country plans to create morethan 9 million new urban jobs to ensure that the surveyedurban unemployment rate is no more than 6%, andmaintain consumer inflation at around 3.5%.

The convening of the two sessions – the National People'sCongress (NPC) and the Chinese People's PoliticalConsultative Conference (CPPCC), postponed for 78 daysfrom early March – indicates that the situation in Chinahas largely returned back to normal and the Covid-19epidemic has been brought under control. Except forthe leaders taking their seats on the rostrum at the GreatHall of the People, all the more than 5,000 delegatesattending the two meetings wore face masks, and hadreceived two nucleic acid tests. Under the strictestepidemic prevention measures, when the delegates take

their meals in their hotels, each one is seated at a separatetable. During the opening sessions, a minute of silence wasobserved for the victims of the Covid-19 pandemic, whichhas claimed 4,634 lives in mainland China.

In his Government Work Report to the NPC session,Premier Li Keqiang said that ‘the epidemic has not yetcome to an end, while the tasks we face in promotingdevelopment are immense.” He declared a “decisivevictory” in the battle against the virus, but acknowledgedthe “great price” China has paid – a GDP contraction in thefirst quarter – which he stressed as “a price worth paying.”Premier Li prioritized ensuring job stability, basic livingneeds, business operations, food security and othersareas. “We did not set a specific target, but that does notmean economic growth is not important or we will allow theeconomy to fall freely,” Liu Rihong, an official at the StateCouncil who participated in drafting the report, toldreporters, noting that the pace of economic growth willprovide support to job security and livelihood, the GlobalTimes reports.

The report contained more than 20 specific measures,including a decision to raise the deficit-to-GDP ratio above3.6%, with a deficit increase of CNY1 trillion from last year.China will also issue CNY1 trillion in government bonds forCovid-19 control. The funds can only be used to ensureemployment, improve basic living needs and protectbusinesses through tax and fee cuts. Additional tax breaksand measures could save businesses over CNY2.5 trillionthis year. The report called for a significant cut ingovernment spending, including a 50% cut to outlays onnon-essential items.

China upheld its long-standing broader developmentgoals of eradicating absolute poverty, and establishing amoderately prosperous society by doubling GDP from the2010 level. “The Government Work Report highlightedChina's people-centered philosophy of development, andissues related to the people's livelihood will be this year'stop priority,” Zhu Lijia, Professor of Public Management atthe Chinese Academy of Governance, told the GlobalTimes. The length of Li's report is only half of last year'sand the shortest since the reform and opening-up policieswere launched over four decades ago.

He Lifeng, Chairman of the National Development andReform Commission (NDRC), said at the NPC session thatthe impact of the Covid-19 epidemic on China's economy issignificant but short-term and temporary. Premier Li alsosaid that the government would continue to promote thedevelopment of the private sector and ensure privatebusinesses have equal access to production factors andpolicy support. The country will review relevant regulationsto abolish those that unfairly differentiate enterprisesaccording to ownership forms. Deadlines will be set forgovernment bodies to make overdue payments owed toprivate and small and medium-sized businesses. Thisoverview is based on reports by the Global Times, ChinaDaily, Shanghai Daily and South China Morning Post.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

NPC & CPPCC SESSIONSNPC refrains from setting yearly GDP target, defense budget rises by 6.6%

No gross domestic product (GDP) target was set inPremier Li Keqiang's work report to the yearly sessionof the National People's Congress (NPC) in Beijing,which started on May 22. The country's defense budgetis to increase by 6.6% this year, the lowest rise in thepast 20 years, as the economy suffered the shock of a6.8% decline in the first quarter due to the effects ofthe Covid-19 pandemic. For the first time since 1995 not setting a GDP growthtarget reflects the extraordinary circumstances China isfacing, including factors “that are difficult to predict”.China’s decision does not mean it has attached lessimportance to economic growth, but instead shows theauthorities are paying greater attention to high qualitydevelopment, economists said after Premier Li Keqiangdelivered his report.

Premier Li Keqiang said the nation will focus on“ensuring stability on the six fronts and security in thesix areas” this year. China’s policy of “ensuring stabilityon the six fronts” refers to employment, finance, foreigntrade, foreign investment, domestic investment, and marketexpectations. The policy of “security in the six areas”means safeguarding employment, people’s livelihoods, thedevelopment of market entities, food and energy security,the stable operation of industrial and supply chains, andthe smooth functioning of society. By implementing thosepolicies, “we will be able to keep the fundamentals of theeconomy stable”, Li said. The country plans to create morethan 9 million new urban jobs to ensure that the surveyedurban unemployment rate is no more than 6%, andmaintain consumer inflation at around 3.5%.

The convening of the two sessions – the National People'sCongress (NPC) and the Chinese People's PoliticalConsultative Conference (CPPCC), postponed for 78 daysfrom early March – indicates that the situation in Chinahas largely returned back to normal and the Covid-19epidemic has been brought under control. Except forthe leaders taking their seats on the rostrum at the GreatHall of the People, all the more than 5,000 delegatesattending the two meetings wore face masks, and hadreceived two nucleic acid tests. Under the strictestepidemic prevention measures, when the delegates take

their meals in their hotels, each one is seated at a separatetable. During the opening sessions, a minute of silence wasobserved for the victims of the Covid-19 pandemic, whichhas claimed 4,634 lives in mainland China.

In his Government Work Report to the NPC session,Premier Li Keqiang said that ‘the epidemic has not yetcome to an end, while the tasks we face in promotingdevelopment are immense.” He declared a “decisivevictory” in the battle against the virus, but acknowledgedthe “great price” China has paid – a GDP contraction in thefirst quarter – which he stressed as “a price worth paying.”Premier Li prioritized ensuring job stability, basic livingneeds, business operations, food security and othersareas. “We did not set a specific target, but that does notmean economic growth is not important or we will allow theeconomy to fall freely,” Liu Rihong, an official at the StateCouncil who participated in drafting the report, toldreporters, noting that the pace of economic growth willprovide support to job security and livelihood, the GlobalTimes reports.

The report contained more than 20 specific measures,including a decision to raise the deficit-to-GDP ratio above3.6%, with a deficit increase of CNY1 trillion from last year.China will also issue CNY1 trillion in government bonds forCovid-19 control. The funds can only be used to ensureemployment, improve basic living needs and protectbusinesses through tax and fee cuts. Additional tax breaksand measures could save businesses over CNY2.5 trillionthis year. The report called for a significant cut ingovernment spending, including a 50% cut to outlays onnon-essential items.

China upheld its long-standing broader developmentgoals of eradicating absolute poverty, and establishing amoderately prosperous society by doubling GDP from the2010 level. “The Government Work Report highlightedChina's people-centered philosophy of development, andissues related to the people's livelihood will be this year'stop priority,” Zhu Lijia, Professor of Public Management atthe Chinese Academy of Governance, told the GlobalTimes. The length of Li's report is only half of last year'sand the shortest since the reform and opening-up policieswere launched over four decades ago.

He Lifeng, Chairman of the National Development andReform Commission (NDRC), said at the NPC session thatthe impact of the Covid-19 epidemic on China's economy issignificant but short-term and temporary. Premier Li alsosaid that the government would continue to promote thedevelopment of the private sector and ensure privatebusinesses have equal access to production factors andpolicy support. The country will review relevant regulationsto abolish those that unfairly differentiate enterprisesaccording to ownership forms. Deadlines will be set forgovernment bodies to make overdue payments owed toprivate and small and medium-sized businesses. Thisoverview is based on reports by the Global Times, ChinaDaily, Shanghai Daily and South China Morning Post.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

MACRO-ECONOMYNo GDP target set due to uncertainty

After a contraction of the Chinese economy by 6.8% inthe first quarter and uncertainty over markets abroadduring the Covid-19 pandemic, the Chinesegovernment decided not to set a GDP growth target forthis year. Some analysts are expecting a secondsuccessive quarterly contraction, which would sendthe Chinese economy into its first recession since theend of the Cultural Revolution in 1976.“We still expect 1% growth for the year, but a furthercontraction in the second quarter,” said Carlos Casanova,Asia-Pacific Economist at insurance firm Coface. “Wecannot exclude the possibility of negative growth for the fullyear if there is another coronavirus outbreak in the autumnor in case of a deeper global recession.” Any recovery laterin the year is dependent on no further viral outbreaks, nomore lockdowns, and the stimulus measures announced atthe delayed National People’s Congress (NPC) beingeffective. For the most part, economists agreed that China shouldfocus on more tangible and “practical” items like jobs, at atime when Beijing is facing an unemployment crisis. PekingUniversity Finance Professor Michael Pettis said thedecision to drop the growth target “is potentially good newsfor China if it represents a real change in economic policy”,signaling that it would focus on sustainable demand,consumption and private sector investment to drive growth.“If they have only dropped it temporarily while they try tofigure out the full impact of the pandemic, and later select

an implicit target that relies heavily on non-productivespending on infrastructure and real estate, then this reallydoes not change anything,” Pettis said on Twitter. Shao Yu,Chief Economist at Orient Securities in Shanghai, saidabandoning the GDP growth target was a “realistic” move,in line with public opinion amid the once-in-a-centurychallenge posed by the coronavirus. “Setting a numericalgoal is way too mechanical for this year, so more emphasiswas placed on protecting basic livelihoods, smallcompanies and employment,” Shao said.

However, the shift away from a top-down growthstrategy may present some challenges for localgovernments, which are hardwired to chase growth goals.“This is a fundamental change for a system driven by top-down signaling to ministries and local governments. Howwill everyone adapt?” asked Scott Kennedy, China watcherat the Center for Strategic and International Studies. DengFeng, Professor at the Peking University Law School,added that removing the growth target will not stopprovinces from competing with each other. “The Chinesepolitical system is like a tournament, where there is alwayscompetition between local officials. Even if there is no GDPtarget this year, provinces would still want to exceed theircompetitors in terms of GDP, which heavily relies oninfrastructure construction,” Deng said.

Analysts from the Economist Intelligence Unit (EIU) pointedout that “Premier Li Keqiang mentioned employment a totalof 38 times” in his speech to the NPC, in a sign of howworried Beijing is about the situation. China will try to keepthe surveyed jobless rate at 6.0% for 2020, which will be asignificant challenge, given the fact that it peaked at arecord 6.2% in February and was at 6.0% in April. Theunemployment rate does not include the more than 300million migrant workers.

Some analysts have estimated that real unemployment inChina may be running as high as 20%. “The annual budgetpoints to fiscal stimulus this year at least on a par with thatfollowing the global financial crisis, and while monetarypolicy is likely to remain more constrained than in 2009, theNPC did signal further rate declines and faster creditgrowth,” said Julian Evans-Pritchard, China Analyst atCapital Economics, as reported by the South ChinaMorning Post.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

MACRO-ECONOMYNo GDP target set due to uncertainty

After a contraction of the Chinese economy by 6.8% inthe first quarter and uncertainty over markets abroadduring the Covid-19 pandemic, the Chinesegovernment decided not to set a GDP growth target forthis year. Some analysts are expecting a secondsuccessive quarterly contraction, which would sendthe Chinese economy into its first recession since theend of the Cultural Revolution in 1976.“We still expect 1% growth for the year, but a furthercontraction in the second quarter,” said Carlos Casanova,Asia-Pacific Economist at insurance firm Coface. “Wecannot exclude the possibility of negative growth for the fullyear if there is another coronavirus outbreak in the autumnor in case of a deeper global recession.” Any recovery laterin the year is dependent on no further viral outbreaks, nomore lockdowns, and the stimulus measures announced atthe delayed National People’s Congress (NPC) beingeffective. For the most part, economists agreed that China shouldfocus on more tangible and “practical” items like jobs, at atime when Beijing is facing an unemployment crisis. PekingUniversity Finance Professor Michael Pettis said thedecision to drop the growth target “is potentially good newsfor China if it represents a real change in economic policy”,signaling that it would focus on sustainable demand,consumption and private sector investment to drive growth.“If they have only dropped it temporarily while they try tofigure out the full impact of the pandemic, and later select

an implicit target that relies heavily on non-productivespending on infrastructure and real estate, then this reallydoes not change anything,” Pettis said on Twitter. Shao Yu,Chief Economist at Orient Securities in Shanghai, saidabandoning the GDP growth target was a “realistic” move,in line with public opinion amid the once-in-a-centurychallenge posed by the coronavirus. “Setting a numericalgoal is way too mechanical for this year, so more emphasiswas placed on protecting basic livelihoods, smallcompanies and employment,” Shao said.

However, the shift away from a top-down growthstrategy may present some challenges for localgovernments, which are hardwired to chase growth goals.“This is a fundamental change for a system driven by top-down signaling to ministries and local governments. Howwill everyone adapt?” asked Scott Kennedy, China watcherat the Center for Strategic and International Studies. DengFeng, Professor at the Peking University Law School,added that removing the growth target will not stopprovinces from competing with each other. “The Chinesepolitical system is like a tournament, where there is alwayscompetition between local officials. Even if there is no GDPtarget this year, provinces would still want to exceed theircompetitors in terms of GDP, which heavily relies oninfrastructure construction,” Deng said.

Analysts from the Economist Intelligence Unit (EIU) pointedout that “Premier Li Keqiang mentioned employment a totalof 38 times” in his speech to the NPC, in a sign of howworried Beijing is about the situation. China will try to keepthe surveyed jobless rate at 6.0% for 2020, which will be asignificant challenge, given the fact that it peaked at arecord 6.2% in February and was at 6.0% in April. Theunemployment rate does not include the more than 300million migrant workers.

Some analysts have estimated that real unemployment inChina may be running as high as 20%. “The annual budgetpoints to fiscal stimulus this year at least on a par with thatfollowing the global financial crisis, and while monetarypolicy is likely to remain more constrained than in 2009, theNPC did signal further rate declines and faster creditgrowth,” said Julian Evans-Pritchard, China Analyst atCapital Economics, as reported by the South ChinaMorning Post.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

FOREIGN TRADE

U.S. blacklists 33 Chinese firms, China expected to retaliate

The U.S. Commerce Department has said it would add33 Chinese firms and institutions to an economicblacklist, citing “national security” and “human rights”issues. It will add 24 Chinese governmental andcommercial organizations to the Entity List “for engaging inactivities contrary to the national security or foreign policyinterests of the United States.” The Department alsoblacklisted seven Chinese companies and two institutions,accusing them of alleged involvement in “human rightsviolations” against ethnic groups in the Xinjiang UygurAutonomous Region. The listings include Qihoo360, aChinese cyber security firm that was delisted from theNASDAQ in 2015; CloudMinds, that operates a cloud-based service to run robots; the Center for High PressureScience and Technology Advanced Research; the HarbinEngineering University; and the Harbin institute ofTechnology. Being placed on the Entity List will result inrestrictions on U.S. goods the companies will be allowed topurchase and on some items made abroad with U.S.content or technology. The companies can still apply for alicense on a case by case basis.

Qihoo360, the largest cyber security firm in China, saidit firmly opposes the irresponsible accusation, whichlacks any credible evidence, and it opposes the U.S.Commerce Department’s move to politicize commercialactivities and technological R&D. According to Qihoo360,the 360 Cyber Security Brain, an advanced system thatdoes intelligent upgrades of cyber security defensesdeveloped by the company, has helped Apple, Google, andMicrosoft discover thousands of security vulnerabilities andindirectly protected global netizens. The system has beenhighly praised by these companies. The 360 CyberSecurity Brain has also helped U.S. law enforcementagencies to crack down on global cyberattacks. Thecompany said the U.S. itself was involved in hacking.

CloudWalk Technology, a Guangzhou-based developerof facial recognition software for the financial, publicsecurity and aviation sectors, said the company has madecontingency plans following the latest U.S. move.“CloudWalk conducts business activities by strictly abidingto the laws and regulations of relevant countries and

regions,” the company said.

The actions to expand the Entity List follow the sameblueprint used by Washington in its attempt to limit theinfluence of Huawei Technologies for what it says arenational security reasons. Bai Ming, Deputy Director of theAcademy of International Trade and EconomicCooperation said “the U.S. is also plotting to round upsmall and medium-sized companies that have potential tobecome bigger and stronger and knock them offcollectively”. Bai said the U.S. is escalating a trade fightbecause it wants to remove China from high-endmanufacturing and keep the country locked in low- andmid-end production.

The latest sanctions up the ante in a growing tech warbetween the world’s two-largest economies, which arejostling for supremacy in a range of new technologies suchas 5G mobile networks and AI. The move also comes amidheightened tensions between the U.S. and China over theorigins of the Covid-19 pandemic and access to U.S.capital markets for Chinese companies, the South ChinaMorning Post adds.

Shenzhen-based Intellifusion expressed “deep shock andregret” at being added to the entity list. The company saidthat it was actively communicating with all parties, trying itsbest to ensure it is treated fairly and it has also maderelevant plans, according to a post published on its officialWeChat account.

Skyeye Laser also expressed regret in an officialstatement on its WeChat account, saying that the companyhas always insisted on independent R&D and legaloperations.

The Global Times said the Chinese government is readyto target Apple, Qualcomm, Cisco and Boeing inretaliation for U.S. restrictions on Huawei. Thecountermeasures could include adding the companies toChina’s “unreliable entity list”, launching investigations intothem, and suspending aircraft purchases from Boeing.

Relations between the U.S. and China are furtherdeteriorating as U.S. Secretary of State Mike Pompeocongratulated Taiwanese President Tsai Ing-wen on hersecond term and U.S. National Security Adviser RobertO'Brien compared China's handling of the coronavirusoutbreak to the Soviet Union's cover-up of the meltdown atthe Chernobyl nuclear power plant in 1986. He added that“with respect to the trade deal, we'll see if they live up to it,but we're dealing in a new world now with corona.” China'sForeign Minister Wang Yi said that relations betweenthe two countries were “on the brink of a new coldwar”.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

FOREIGN TRADE

U.S. blacklists 33 Chinese firms, China expected to retaliate

The U.S. Commerce Department has said it would add33 Chinese firms and institutions to an economicblacklist, citing “national security” and “human rights”issues. It will add 24 Chinese governmental andcommercial organizations to the Entity List “for engaging inactivities contrary to the national security or foreign policyinterests of the United States.” The Department alsoblacklisted seven Chinese companies and two institutions,accusing them of alleged involvement in “human rightsviolations” against ethnic groups in the Xinjiang UygurAutonomous Region. The listings include Qihoo360, aChinese cyber security firm that was delisted from theNASDAQ in 2015; CloudMinds, that operates a cloud-based service to run robots; the Center for High PressureScience and Technology Advanced Research; the HarbinEngineering University; and the Harbin institute ofTechnology. Being placed on the Entity List will result inrestrictions on U.S. goods the companies will be allowed topurchase and on some items made abroad with U.S.content or technology. The companies can still apply for alicense on a case by case basis.

Qihoo360, the largest cyber security firm in China, saidit firmly opposes the irresponsible accusation, whichlacks any credible evidence, and it opposes the U.S.Commerce Department’s move to politicize commercialactivities and technological R&D. According to Qihoo360,the 360 Cyber Security Brain, an advanced system thatdoes intelligent upgrades of cyber security defensesdeveloped by the company, has helped Apple, Google, andMicrosoft discover thousands of security vulnerabilities andindirectly protected global netizens. The system has beenhighly praised by these companies. The 360 CyberSecurity Brain has also helped U.S. law enforcementagencies to crack down on global cyberattacks. Thecompany said the U.S. itself was involved in hacking.

CloudWalk Technology, a Guangzhou-based developerof facial recognition software for the financial, publicsecurity and aviation sectors, said the company has madecontingency plans following the latest U.S. move.“CloudWalk conducts business activities by strictly abidingto the laws and regulations of relevant countries and

regions,” the company said.

The actions to expand the Entity List follow the sameblueprint used by Washington in its attempt to limit theinfluence of Huawei Technologies for what it says arenational security reasons. Bai Ming, Deputy Director of theAcademy of International Trade and EconomicCooperation said “the U.S. is also plotting to round upsmall and medium-sized companies that have potential tobecome bigger and stronger and knock them offcollectively”. Bai said the U.S. is escalating a trade fightbecause it wants to remove China from high-endmanufacturing and keep the country locked in low- andmid-end production.

The latest sanctions up the ante in a growing tech warbetween the world’s two-largest economies, which arejostling for supremacy in a range of new technologies suchas 5G mobile networks and AI. The move also comes amidheightened tensions between the U.S. and China over theorigins of the Covid-19 pandemic and access to U.S.capital markets for Chinese companies, the South ChinaMorning Post adds.

Shenzhen-based Intellifusion expressed “deep shock andregret” at being added to the entity list. The company saidthat it was actively communicating with all parties, trying itsbest to ensure it is treated fairly and it has also maderelevant plans, according to a post published on its officialWeChat account.

Skyeye Laser also expressed regret in an officialstatement on its WeChat account, saying that the companyhas always insisted on independent R&D and legaloperations.

The Global Times said the Chinese government is readyto target Apple, Qualcomm, Cisco and Boeing inretaliation for U.S. restrictions on Huawei. Thecountermeasures could include adding the companies toChina’s “unreliable entity list”, launching investigations intothem, and suspending aircraft purchases from Boeing.

Relations between the U.S. and China are furtherdeteriorating as U.S. Secretary of State Mike Pompeocongratulated Taiwanese President Tsai Ing-wen on hersecond term and U.S. National Security Adviser RobertO'Brien compared China's handling of the coronavirusoutbreak to the Soviet Union's cover-up of the meltdown atthe Chernobyl nuclear power plant in 1986. He added that“with respect to the trade deal, we'll see if they live up to it,but we're dealing in a new world now with corona.” China'sForeign Minister Wang Yi said that relations betweenthe two countries were “on the brink of a new coldwar”.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

CHINA NEWS ROUND-UPChina to draw up 15-year roadmap for science & technology developmentMinister of Science and Technology Wang Zhigangsaid that China will draw up a 15-year roadmap forscience and technology development, and he called forinternational cooperation in the technology sphere, despitemounting concerns over a looming tech cold war betweenChina and the U.S. Chinese enterprises need to work evenharder in order to move up the technology ladder andprevail in an upcoming fierce technology battle, analystssay. The country needs to ramp up investment in key fieldssuch as transistor technology, and electronic designautomation tools needed by Chinese firms for chip designand verification, Bryan Wong, Principle Researcher at theSuning Institute of Finance in Nanjing, Jiangsu province,told the Global Times. When asked if decoupling betweenthe two powers is inevitable, Wong commented thatsemiconductor supply chains have matured after years ofdevelopment, and accumulation of technological prowess,talent and capital. Now, China needs to draw up alternativeplans including solidifying key components of the supplychain, Wong said. Observers believe that there have beensome difficulties in obtaining core semiconductortechnologies through commercial mergers andacquisitions, joint investments, and other market-drivenmeasures.

China's research and development (R&D) spending hitCNY2.17 trillion in 2019, accounting for 2.19% of GDP,Minister Wang said. The nation's advances in science andtechnology contributed to 59.5% of economic growth lastyear. The R&D spending to GDP ratio hit a record high of2.19% in 2018, up 0.04 percentage points from the yearbefore, the Global Times reports.

The South China Morning Post adds that investmentwould amount to CNY10 trillion over six years to 2025.The new infrastructure initiative is expected to drive mainlylocal companies, from Alibaba Group Holding and Huaweito SenseTime Group, at the expense of U.S. companies. Itwill reduce China’s dependence on foreign technology,echoing objectives set forth previously in the “Made inChina 2025” program. Such initiatives have already drawnfierce criticism from the Trump administration.

Chinese infectious disease expert Chen Wei, whose teamdeveloped a Covid-19 vaccine that recently showedpromising early results, called for the building of a nationalbiosafety science and industry innovation center. Shemade the proposal at the annual meeting of the ChinesePeople's Political Consultative Conference (CPPCC).“Decades of experience in research, especially theexperience of Wuhan, make me feel that we have to

achieve real innovation in the field of biosafety and quicklypromote these achievements to benefit the public,” Chensaid. Wang Chen, President of the Chinese Academy ofMedical Sciences and the Peking Union Medical Collegeand also a CPPCC member, called for the acceleration ofan innovative system in medical science. He proposedestablishing a high level medical science academy, theGlobal Times reports.

Huawei's role in the UKs 5G network to drop to zero by 2023 British Prime Minister Boris Johnson has been forcedto cave into to Conservative backbench rebelsopposed to the presence of Huawei in 5G networks andhas drawn up plans to reduce the Chinese company’sinvolvement to zero by 2023, the Guardian reports. Theretreat is aimed to avoid defeat when the existing proposalto reduce Huawei to a 35% market share is to be voted onin the House of Commons. Although Johnson boasts an 80strong majority, the number of Conservative MPs willing torebel on the issue is now estimated to be 50 – enough intheory to defeat the government as anti-Chinese sentimenthardens in the light of the coronavirus crisis. The retreatwill delight the White House which has been relentlesslycampaigning against Huawei, but is likely to provoke ahostile reaction from Beijing, which has believed the UKwas open to inward investment until now. Sir Iain DuncanSmith welcomed the change of heart. “This is very goodnews and I hope and believe it will be the start of acomplete and thorough review of our dangerousdependency on China.”

The original plan of a 35% cap on Huawei investment wasagreed in January with the support of Britain’s intelligenceagencies. They argued that risks that Huawei equipmentcould be exploited for mass surveillance could becontained. But 38 Conservative MPs voted with theopposition on an unrelated telecoms bill in early Marchafter Johnson refused to slash Huawei’s market share tozero.

As the coronavirus crisis worsened, China has beenaccused of not being transparent about the early phases ofthe disease – while tension has also risen further as Beijingis to impose a new national security law on Hong Kong.Senior ministers also want to reduce the UK’s economicdependance on China for essential goods in the light of thecrisis and have begun to draw up “Project Defend” aimedat boosting British self-sufficiency in strategic medical andtechnological sectors, the Guardian reports. Amid mounting pressure from the U.S. to limit the supply of

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

CHINA NEWS ROUND-UPChina to draw up 15-year roadmap for science & technology developmentMinister of Science and Technology Wang Zhigangsaid that China will draw up a 15-year roadmap forscience and technology development, and he called forinternational cooperation in the technology sphere, despitemounting concerns over a looming tech cold war betweenChina and the U.S. Chinese enterprises need to work evenharder in order to move up the technology ladder andprevail in an upcoming fierce technology battle, analystssay. The country needs to ramp up investment in key fieldssuch as transistor technology, and electronic designautomation tools needed by Chinese firms for chip designand verification, Bryan Wong, Principle Researcher at theSuning Institute of Finance in Nanjing, Jiangsu province,told the Global Times. When asked if decoupling betweenthe two powers is inevitable, Wong commented thatsemiconductor supply chains have matured after years ofdevelopment, and accumulation of technological prowess,talent and capital. Now, China needs to draw up alternativeplans including solidifying key components of the supplychain, Wong said. Observers believe that there have beensome difficulties in obtaining core semiconductortechnologies through commercial mergers andacquisitions, joint investments, and other market-drivenmeasures.

China's research and development (R&D) spending hitCNY2.17 trillion in 2019, accounting for 2.19% of GDP,Minister Wang said. The nation's advances in science andtechnology contributed to 59.5% of economic growth lastyear. The R&D spending to GDP ratio hit a record high of2.19% in 2018, up 0.04 percentage points from the yearbefore, the Global Times reports.

The South China Morning Post adds that investmentwould amount to CNY10 trillion over six years to 2025.The new infrastructure initiative is expected to drive mainlylocal companies, from Alibaba Group Holding and Huaweito SenseTime Group, at the expense of U.S. companies. Itwill reduce China’s dependence on foreign technology,echoing objectives set forth previously in the “Made inChina 2025” program. Such initiatives have already drawnfierce criticism from the Trump administration.

Chinese infectious disease expert Chen Wei, whose teamdeveloped a Covid-19 vaccine that recently showedpromising early results, called for the building of a nationalbiosafety science and industry innovation center. Shemade the proposal at the annual meeting of the ChinesePeople's Political Consultative Conference (CPPCC).“Decades of experience in research, especially theexperience of Wuhan, make me feel that we have to

achieve real innovation in the field of biosafety and quicklypromote these achievements to benefit the public,” Chensaid. Wang Chen, President of the Chinese Academy ofMedical Sciences and the Peking Union Medical Collegeand also a CPPCC member, called for the acceleration ofan innovative system in medical science. He proposedestablishing a high level medical science academy, theGlobal Times reports.

Huawei's role in the UKs 5G network to drop to zero by 2023 British Prime Minister Boris Johnson has been forcedto cave into to Conservative backbench rebelsopposed to the presence of Huawei in 5G networks andhas drawn up plans to reduce the Chinese company’sinvolvement to zero by 2023, the Guardian reports. Theretreat is aimed to avoid defeat when the existing proposalto reduce Huawei to a 35% market share is to be voted onin the House of Commons. Although Johnson boasts an 80strong majority, the number of Conservative MPs willing torebel on the issue is now estimated to be 50 – enough intheory to defeat the government as anti-Chinese sentimenthardens in the light of the coronavirus crisis. The retreatwill delight the White House which has been relentlesslycampaigning against Huawei, but is likely to provoke ahostile reaction from Beijing, which has believed the UKwas open to inward investment until now. Sir Iain DuncanSmith welcomed the change of heart. “This is very goodnews and I hope and believe it will be the start of acomplete and thorough review of our dangerousdependency on China.”

The original plan of a 35% cap on Huawei investment wasagreed in January with the support of Britain’s intelligenceagencies. They argued that risks that Huawei equipmentcould be exploited for mass surveillance could becontained. But 38 Conservative MPs voted with theopposition on an unrelated telecoms bill in early Marchafter Johnson refused to slash Huawei’s market share tozero.

As the coronavirus crisis worsened, China has beenaccused of not being transparent about the early phases ofthe disease – while tension has also risen further as Beijingis to impose a new national security law on Hong Kong.Senior ministers also want to reduce the UK’s economicdependance on China for essential goods in the light of thecrisis and have begun to draw up “Project Defend” aimedat boosting British self-sufficiency in strategic medical andtechnological sectors, the Guardian reports. Amid mounting pressure from the U.S. to limit the supply of

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

chips to Huawei that include or were made with U.S.technology, Huawei has asked the Chinese units ofSamsung Electronics and SK Hynix – both SouthKorean companies – for a stable memory chip supply.While memory chip makers are not subject to U.S.government restrictions, Huawei worries that the Trumpadministration could widen its restrictions later, accordingto the South China Morning Post.

U.S. and Chinese consumers wary of buying each other's products The coronavirus pandemic is fueling mistrust amongconsumers in China and the United States about eachcountry’s products, as the momentum for a decouplingbetween the two world’s largest economies intensifies. Arecent survey by Deutsche Bank’s big data platform dbDIGshowed 41% of Americans would not buy a “Made inChina” product again and 35% of Chinese would avoidbuying products “Made in USA”. Even though mostconsumers were not ready to completely shun each other’sgoods, the survey results indicate a rise in commercialnationalism and a growing distaste for globalization, saidApjit Walia, Analyst at Deutsche Bank. U.S. consumerdistrust of Chinese products has been boosted bycomments from American officials, particularly PresidentDonald Trump, who has blamed China for the pandemicand raised doubts about Beijing’s trustworthiness.

“Tempers and emotions are running high in bothpopulations and the politicians know this very well, makingthe matter more complicated as it is an election year in theU.S.,” Walia said. In a separate U.S. consumer survey,conducted by Washington-based business advisory FTIConsulting, 78% of respondents said they would be willingto pay more for a product if the company had movedmanufacturing out of China. Of those Americans surveyed,55% said they did not think China could be trusted to followthrough on its commitments to purchase U.S. goods in thephase one trade deal signed in January.

Concerns have also been raised about over-relianceon China, especially for production of vital supplies ofmedical equipment, pharmaceuticals and technology.Businesses are facing pressure from shareholders,regulators and governments to localize supply chains andmake them more resilient to future shocks, analysts said.“China has risen in an eye-watering fashion so that hasprovoked anxiety in Western nations seeing their owncountries’ prominence in the world economy beingdegraded as a result of this,” said Marie Owens Thomsen,global head of investment intelligence at Indosuez WealthManagement.

Sulmaan Khan, Professor of international history andChinese foreign relations at the Fletcher School at TuftsUniversity, said that China’s assertive diplomacy to protectnational security has added to distrust in its businesses.“Nationalism is deeply dangerous because you can’t tellpeople when to stop once you have started these thoughtsin their heads,” Khan added, as reported by the SouthChina Morning Post.

Chinese investors buying U.S. real estatefacing heightened scrutiny Chinese investors buying real estate in the UnitedStates can expect heightened scrutiny amid anescalation of U.S.-China tensions, analysts said. Theymight also have to contend with a new filing fee. Thecoming into effect of a new regulation that extends theCommittee on Foreign Investment in the United States’(CFIUS) scope to the review of even non-controlling stakesin U.S. real estate could lead to a negative impact onChinese and Asian investors. “CFIUS now has jurisdictionover greenfield investments in real estate located nearspecific air or maritime ports, as well as sensitivegovernment and military installations or military trainingand testing centers,” said Mark Uhrynuk, Partner at lawfirm Mayer Brown’s corporate and securities practice inHong Kong.

“In light of increasing tensions with China, Asian andChinese investors can expect heightened scrutiny of manyinvestments in the U.S. for the foreseeable future,” he said.CFIUS reviews most foreign deals for national securityimplications. Its jurisdiction was, however, expanded tocover virtually all foreign direct investment into the U.S.with the passage of the Foreign Investment Risk ReviewModernization Act (FIRRMA) in 2018. The new regulationcame into effect on February 13 this year. “We are not onlytalking about outright acquisitions, but about investmentsbelow 10%. This will spell disaster for those already in theU.S. market, with capital deployed and waiting for more tocome from abroad,” said Rick Mirza, Chief Executive ofDaulat, a U.S.-based private-equity firm that manages real-estate holdings.

Starting in May, the Committee has also startedimposing a new filing fee for foreign investments,including those in real estate, which could pose a newhurdle for overseas investors. Under a new rule releasedby the U.S. Treasury Department, which came into effecton May 1, a fee of up to USD300,000 will be required fromparties filing a written notice of a transaction to be reviewedby CFIUS. While the fee could be avoided by submitting afive-page declaration form instead, transactions by Asianand Chinese investors that were “sufficiently sensitive”were advised to opt for the longer notice and pay the newfee, said Mayer Brown’s Uhrynuk. The overall trend ofCFIUS enforcement suggests a negative impact onChinese and Asian investors in the U.S. real-estate market,the South China Morning Post reports.

U.S. Senate passes bill that could delist Chinese companies from U.S. exchangesThe U.S. Senate passed legislation that coulddisqualify many Chinese companies from listingshares on U.S. stock exchanges. The legislation, whichwas supported by lawmakers of both parties and waspassed without objection, requires companies seekingaccess to U.S. stock markets to establish that “they arenot owned or controlled by a foreign government”. Thebill also asks foreign companies to submit audits forinspection by the Public Company Accounting OversightBoard, the non-profit body that oversees audits of all U.S.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

chips to Huawei that include or were made with U.S.technology, Huawei has asked the Chinese units ofSamsung Electronics and SK Hynix – both SouthKorean companies – for a stable memory chip supply.While memory chip makers are not subject to U.S.government restrictions, Huawei worries that the Trumpadministration could widen its restrictions later, accordingto the South China Morning Post.

U.S. and Chinese consumers wary of buying each other's products The coronavirus pandemic is fueling mistrust amongconsumers in China and the United States about eachcountry’s products, as the momentum for a decouplingbetween the two world’s largest economies intensifies. Arecent survey by Deutsche Bank’s big data platform dbDIGshowed 41% of Americans would not buy a “Made inChina” product again and 35% of Chinese would avoidbuying products “Made in USA”. Even though mostconsumers were not ready to completely shun each other’sgoods, the survey results indicate a rise in commercialnationalism and a growing distaste for globalization, saidApjit Walia, Analyst at Deutsche Bank. U.S. consumerdistrust of Chinese products has been boosted bycomments from American officials, particularly PresidentDonald Trump, who has blamed China for the pandemicand raised doubts about Beijing’s trustworthiness.

“Tempers and emotions are running high in bothpopulations and the politicians know this very well, makingthe matter more complicated as it is an election year in theU.S.,” Walia said. In a separate U.S. consumer survey,conducted by Washington-based business advisory FTIConsulting, 78% of respondents said they would be willingto pay more for a product if the company had movedmanufacturing out of China. Of those Americans surveyed,55% said they did not think China could be trusted to followthrough on its commitments to purchase U.S. goods in thephase one trade deal signed in January.

Concerns have also been raised about over-relianceon China, especially for production of vital supplies ofmedical equipment, pharmaceuticals and technology.Businesses are facing pressure from shareholders,regulators and governments to localize supply chains andmake them more resilient to future shocks, analysts said.“China has risen in an eye-watering fashion so that hasprovoked anxiety in Western nations seeing their owncountries’ prominence in the world economy beingdegraded as a result of this,” said Marie Owens Thomsen,global head of investment intelligence at Indosuez WealthManagement.

Sulmaan Khan, Professor of international history andChinese foreign relations at the Fletcher School at TuftsUniversity, said that China’s assertive diplomacy to protectnational security has added to distrust in its businesses.“Nationalism is deeply dangerous because you can’t tellpeople when to stop once you have started these thoughtsin their heads,” Khan added, as reported by the SouthChina Morning Post.

Chinese investors buying U.S. real estatefacing heightened scrutiny Chinese investors buying real estate in the UnitedStates can expect heightened scrutiny amid anescalation of U.S.-China tensions, analysts said. Theymight also have to contend with a new filing fee. Thecoming into effect of a new regulation that extends theCommittee on Foreign Investment in the United States’(CFIUS) scope to the review of even non-controlling stakesin U.S. real estate could lead to a negative impact onChinese and Asian investors. “CFIUS now has jurisdictionover greenfield investments in real estate located nearspecific air or maritime ports, as well as sensitivegovernment and military installations or military trainingand testing centers,” said Mark Uhrynuk, Partner at lawfirm Mayer Brown’s corporate and securities practice inHong Kong.

“In light of increasing tensions with China, Asian andChinese investors can expect heightened scrutiny of manyinvestments in the U.S. for the foreseeable future,” he said.CFIUS reviews most foreign deals for national securityimplications. Its jurisdiction was, however, expanded tocover virtually all foreign direct investment into the U.S.with the passage of the Foreign Investment Risk ReviewModernization Act (FIRRMA) in 2018. The new regulationcame into effect on February 13 this year. “We are not onlytalking about outright acquisitions, but about investmentsbelow 10%. This will spell disaster for those already in theU.S. market, with capital deployed and waiting for more tocome from abroad,” said Rick Mirza, Chief Executive ofDaulat, a U.S.-based private-equity firm that manages real-estate holdings.

Starting in May, the Committee has also startedimposing a new filing fee for foreign investments,including those in real estate, which could pose a newhurdle for overseas investors. Under a new rule releasedby the U.S. Treasury Department, which came into effecton May 1, a fee of up to USD300,000 will be required fromparties filing a written notice of a transaction to be reviewedby CFIUS. While the fee could be avoided by submitting afive-page declaration form instead, transactions by Asianand Chinese investors that were “sufficiently sensitive”were advised to opt for the longer notice and pay the newfee, said Mayer Brown’s Uhrynuk. The overall trend ofCFIUS enforcement suggests a negative impact onChinese and Asian investors in the U.S. real-estate market,the South China Morning Post reports.

U.S. Senate passes bill that could delist Chinese companies from U.S. exchangesThe U.S. Senate passed legislation that coulddisqualify many Chinese companies from listingshares on U.S. stock exchanges. The legislation, whichwas supported by lawmakers of both parties and waspassed without objection, requires companies seekingaccess to U.S. stock markets to establish that “they arenot owned or controlled by a foreign government”. Thebill also asks foreign companies to submit audits forinspection by the Public Company Accounting OversightBoard, the non-profit body that oversees audits of all U.S.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

companies in public markets. Failure to provide theinformation for three consecutive years would lead to thedelisting of a company’s shares. The bill can be applied toany foreign company seeking to raise capital in the U.S.,but lawmakers, including Senator John Kennedy, aLouisiana Republican who is one of the bill’s sponsors,have said that the legislation was aimed at China andintended “to stop them from cheating” on U.S. exchanges.

The bill, first introduced in March 2019, would still need topass the House of Representatives before it could besigned into law by President Donald Trump. The passageof the bill comes as tensions increase between the U.S.and China, first from their trade war and now amid apandemic that has claimed more than 100,000 Americanlives. The American Securities Association, a trade grouprepresenting small and regional financial services firms,supported the legislation, saying that “for far too long,fraudulent Chinese companies have gotten a free pass toaccess U.S. markets and exploit American investors”.

However, some are urging caution in moving to holdChinese companies to the same reporting standards asothers. Asking Chinese companies listed in the U.S. toprovide the same operational transparency as other firmsis “reasonable” – but would put them in conflict with statesecrets rules enforced by the Chinese government, saidAnna Ashton, Senior Director of government relations atthe U.S.-China Business Council. “Chinese companies, inorder to comply with this rule, at least according to theChinese government, would have to break state secretslaws, and so this looks like a way to try to encourage theChinese government to change their laws,” Ashton said, asreported by the South China Morning Post.

There are 165 Chinese companies listed on U.S. stockexchanges.

Volvo Construction Equipment moving its Asia headquarters to ShanghaiVolvo Construction Equipment, an arm of Sweden’s VolvoGroup, said it plans to move its Asian headquarters fromSingapore to Shanghai. The reason for the shift is a newset of policies in China (Shanghai) Pilot Free Trade Zone,allowing foreign businesses headquartered in the zoneto conduct offshore business. Foreign companies usedto set up operations in China focused only on business inthe domestic market, but policy changes now permit themto engage in offshore trade. Last year, the Shanghai arm ofVolvo Construction Equipment was the first company in thezone to complete an offshore transaction, with coordinationfrom the Shanghai government, supervisory authoritiesand banks. It shipped two excavators from its factory inSouth Korea to Nigeria as part of China’s Belt and RoadInitiative (BRI). The machinery itself did not go throughShanghai, but all the paperwork, including orders, capitaltransfers and insurance, were arranged in Shanghai.

“Previously, policies here meant that we had to do off-shore trade through Volvo Asia in Singapore,” said ZhanXu, Vice Chief Executive of Volvo Construction Equipmentin China. Sales of the Shanghai operations now accountfor more than half of Volvo Construction Equipment’sglobal revenue, and the company said it expects to

increase its Shanghai-based offshore business. TheLingang Special Area, set up last year as part of the FreeTrade Zone, is designed to create a multinationalheadquarters cluster to develop deeper international trade.“For Shanghai, the aim is to attract multinationals toestablish headquarters here and conduct supply chainmanagement here,” said Zhang Yong, Researcher with theComprehensive Institute of China (Shanghai) Pilot FreeTrade Zone at Fudan University. Volvo’s Zhan said thecompany plans to move a whole set of related serviceindustries, including legal affairs, tax and audit operations,to Shanghai from Singapore. Zhan cautions that the newoffshore business is at an early stage and will need carefulnurturing by all involved parties, the Shanghai Dailyreports.

Mass exodus of foreign companies from China unlikelyThe coronavirus pandemic is unlikely to produce anexodus out of the Chinese market, and replacing Chinain the global supply chain is impossible to materialize.Most European companies are in China for the localmarket, which is still expected to grow extensively in thecoming years and decades, said Joerg Wuttke, Presidentof the European Union Chamber of Commerce in Chinatold the Global Times. “The market is too important forEuropean companies to leave,” he said. The Chinesemarket has world-class industrial clusters, a strong mix ofskilled, less skilled and highly professional labor force, andsome of the best infrastructure in the world, Wuttke noted.“Yet, taking all this for granted would be a mistake.” TheCovid-19 pandemic has led to some companies looking toinvest their limited resources elsewhere. Few are leavingChina, although even fewer will be doubling down on themarket anytime soon, not only because they lack the fundsat the moment, but also because diversification of supplychains is being given extra value, according to Wuttke.

The pandemic dealt a blow to transnational investment andChina also faces challenges in attracting new foreigncapital, Commerce Minister Zhong Shan said. But Chinahas many edges: ample, high-quality labor, comprehensiveindustrial support and a market of 1.4 billion people, Zhongsaid. “I believe smart entrepreneurs will not give up thismassive and still growing Chinese market.” Foreign directinvestment in China rose 11.8% year-on-year to CNY70.36billion in April, after dropping in the previous two months.Thanks to the quick recovery of many sectors of theeconomy following the Covid-19 crisis, multinationalcompanies are seeing again the benefits of serving astrong Chinese market, with imported and locally producedproducts and services alike, Denis Depoux, GlobalManaging Director of consulting firm Roland Berger, toldthe Global Times. “This crisis will only accelerate theimportance of China as a major outlet for many products inthe consumer and business markets,” Depoux said, notingthat it will also accelerate the localization of moremultinational companies in China. Yet, at the same time,some supply chains may diversify their localization, as wellas "relocalize" in the European and U.S. markets as a riskmitigation measure that will be demanded by theirshareholders, he added.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

companies in public markets. Failure to provide theinformation for three consecutive years would lead to thedelisting of a company’s shares. The bill can be applied toany foreign company seeking to raise capital in the U.S.,but lawmakers, including Senator John Kennedy, aLouisiana Republican who is one of the bill’s sponsors,have said that the legislation was aimed at China andintended “to stop them from cheating” on U.S. exchanges.

The bill, first introduced in March 2019, would still need topass the House of Representatives before it could besigned into law by President Donald Trump. The passageof the bill comes as tensions increase between the U.S.and China, first from their trade war and now amid apandemic that has claimed more than 100,000 Americanlives. The American Securities Association, a trade grouprepresenting small and regional financial services firms,supported the legislation, saying that “for far too long,fraudulent Chinese companies have gotten a free pass toaccess U.S. markets and exploit American investors”.

However, some are urging caution in moving to holdChinese companies to the same reporting standards asothers. Asking Chinese companies listed in the U.S. toprovide the same operational transparency as other firmsis “reasonable” – but would put them in conflict with statesecrets rules enforced by the Chinese government, saidAnna Ashton, Senior Director of government relations atthe U.S.-China Business Council. “Chinese companies, inorder to comply with this rule, at least according to theChinese government, would have to break state secretslaws, and so this looks like a way to try to encourage theChinese government to change their laws,” Ashton said, asreported by the South China Morning Post.

There are 165 Chinese companies listed on U.S. stockexchanges.

Volvo Construction Equipment moving its Asia headquarters to ShanghaiVolvo Construction Equipment, an arm of Sweden’s VolvoGroup, said it plans to move its Asian headquarters fromSingapore to Shanghai. The reason for the shift is a newset of policies in China (Shanghai) Pilot Free Trade Zone,allowing foreign businesses headquartered in the zoneto conduct offshore business. Foreign companies usedto set up operations in China focused only on business inthe domestic market, but policy changes now permit themto engage in offshore trade. Last year, the Shanghai arm ofVolvo Construction Equipment was the first company in thezone to complete an offshore transaction, with coordinationfrom the Shanghai government, supervisory authoritiesand banks. It shipped two excavators from its factory inSouth Korea to Nigeria as part of China’s Belt and RoadInitiative (BRI). The machinery itself did not go throughShanghai, but all the paperwork, including orders, capitaltransfers and insurance, were arranged in Shanghai.

“Previously, policies here meant that we had to do off-shore trade through Volvo Asia in Singapore,” said ZhanXu, Vice Chief Executive of Volvo Construction Equipmentin China. Sales of the Shanghai operations now accountfor more than half of Volvo Construction Equipment’sglobal revenue, and the company said it expects to

increase its Shanghai-based offshore business. TheLingang Special Area, set up last year as part of the FreeTrade Zone, is designed to create a multinationalheadquarters cluster to develop deeper international trade.“For Shanghai, the aim is to attract multinationals toestablish headquarters here and conduct supply chainmanagement here,” said Zhang Yong, Researcher with theComprehensive Institute of China (Shanghai) Pilot FreeTrade Zone at Fudan University. Volvo’s Zhan said thecompany plans to move a whole set of related serviceindustries, including legal affairs, tax and audit operations,to Shanghai from Singapore. Zhan cautions that the newoffshore business is at an early stage and will need carefulnurturing by all involved parties, the Shanghai Dailyreports.

Mass exodus of foreign companies from China unlikelyThe coronavirus pandemic is unlikely to produce anexodus out of the Chinese market, and replacing Chinain the global supply chain is impossible to materialize.Most European companies are in China for the localmarket, which is still expected to grow extensively in thecoming years and decades, said Joerg Wuttke, Presidentof the European Union Chamber of Commerce in Chinatold the Global Times. “The market is too important forEuropean companies to leave,” he said. The Chinesemarket has world-class industrial clusters, a strong mix ofskilled, less skilled and highly professional labor force, andsome of the best infrastructure in the world, Wuttke noted.“Yet, taking all this for granted would be a mistake.” TheCovid-19 pandemic has led to some companies looking toinvest their limited resources elsewhere. Few are leavingChina, although even fewer will be doubling down on themarket anytime soon, not only because they lack the fundsat the moment, but also because diversification of supplychains is being given extra value, according to Wuttke.

The pandemic dealt a blow to transnational investment andChina also faces challenges in attracting new foreigncapital, Commerce Minister Zhong Shan said. But Chinahas many edges: ample, high-quality labor, comprehensiveindustrial support and a market of 1.4 billion people, Zhongsaid. “I believe smart entrepreneurs will not give up thismassive and still growing Chinese market.” Foreign directinvestment in China rose 11.8% year-on-year to CNY70.36billion in April, after dropping in the previous two months.Thanks to the quick recovery of many sectors of theeconomy following the Covid-19 crisis, multinationalcompanies are seeing again the benefits of serving astrong Chinese market, with imported and locally producedproducts and services alike, Denis Depoux, GlobalManaging Director of consulting firm Roland Berger, toldthe Global Times. “This crisis will only accelerate theimportance of China as a major outlet for many products inthe consumer and business markets,” Depoux said, notingthat it will also accelerate the localization of moremultinational companies in China. Yet, at the same time,some supply chains may diversify their localization, as wellas "relocalize" in the European and U.S. markets as a riskmitigation measure that will be demanded by theirshareholders, he added.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

China-EU trade ties have advanced smoothly since thebloc replaced the U.S. as China's second-largest tradingpartner in 2019. Bilateral trade expanded 5.7% year-on-year to CNY1.35 trillion from January to April this year, theGlobal Times reports. At a press conference on thesidelines of the NPC session, State Councilor and ForeignMinister Wang Yi said that “there is no fundamental conflict

of interest between China and Europe” and that China andthe European Union (EU) should not be “systemic rivals,”but “comprehensive strategic partners”. The China-EUdiplomatic agenda has been hit by the pandemic, butleaders from both sides “will keep in close contact inpreparation for the 22nd China-EU leadership conference,”he said.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

China-EU trade ties have advanced smoothly since thebloc replaced the U.S. as China's second-largest tradingpartner in 2019. Bilateral trade expanded 5.7% year-on-year to CNY1.35 trillion from January to April this year, theGlobal Times reports. At a press conference on thesidelines of the NPC session, State Councilor and ForeignMinister Wang Yi said that “there is no fundamental conflict

of interest between China and Europe” and that China andthe European Union (EU) should not be “systemic rivals,”but “comprehensive strategic partners”. The China-EUdiplomatic agenda has been hit by the pandemic, butleaders from both sides “will keep in close contact inpreparation for the 22nd China-EU leadership conference,”he said.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

Your banner at the FCCC website or newsletterCompanies interested in posting a banner/anadvertisement on the FCCC website or FCCC weeklynewsletter are kindly invited to contact the FCCC at:info@flanders-china.be

Organisation and founding members of theFlanders- China Chamber of CommerceChairmanMr. Stefaan Vanhooren, President Agfa Graphics,Member of the Executive Committee of the Agfa GevaertGroup, NV THE AGFA-GEVAERT GROUP SA

Vice-ChairmenMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Philippe Van der Donckt, Director Government AffairsAsia, NV UMICORE SA

Secretary and TreasurerWim Eraly, Senior General Manager, NV KBC Bank SA

Executive DirectorMs. Gwenn Sonck

Members of the Board of Directors and FoundingMembers:Mr. Stefaan Vanhooren, President Agfa Graphics, Memberof the Executive Committee of the Agfa Gevaert Group, NVTHE AGFA-GEVAERT GROUP SAMr. Carl Peeters, Chief Financial Officer, NV AHLERS SAMr. Filip Pintelon, Senior Vice President, GM Healthcare, NV BARCO SAMr. Philip Eyskens, General Counsel, Senior Vice

President Legal IP GRC, NV BEKAERT SAMr. Philip Hermans, General Manager, NV DEME SAMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Wim Eraly, Head of Corporate and Transaction Banking, KBC Bank SAMr. Johan Verstraete, Vice-President Marketing, Sales &Services Weaving Solutions, NV PICANOL SAMr. Philippe Van der Donckt, Director Government AffairsAsia, NV UMICORE SA

Membership rates for 2019 (excl. VAT)● SMEs: €405 (€490.05 incl. VAT)● Large enterprises: €1,025 (€1,240.25 incl. VAT)

ContactFlanders-China Chamber of CommerceOffice: Ajuinlei 1, B-9000 Gent, BelgiumNew telephone and fax numbers:T ++32/9/269.52.46F ++32/9/269.52.99E info@flanders-china.beW www.flanders-china.be

Share your storyTo send your input for publication in a future newslettermail to: info@flanders-china.be The FCCC Newsletters are edited by Michel Lens,who is based in Beijing and can be contacted by e-mailmichel.jc.lens@gmail.com

Disclaimer: the views expressed in this newsletter are notnecessarily those of the FCCC or its Board of Directors.

FCCC-VCKK – CHINA BUSINESS WEEKLY 26 MAY 2020

Your banner at the FCCC website or newsletterCompanies interested in posting a banner/anadvertisement on the FCCC website or FCCC weeklynewsletter are kindly invited to contact the FCCC at:info@flanders-china.be

Organisation and founding members of theFlanders- China Chamber of CommerceChairmanMr. Stefaan Vanhooren, President Agfa Graphics,Member of the Executive Committee of the Agfa GevaertGroup, NV THE AGFA-GEVAERT GROUP SA

Vice-ChairmenMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Philippe Van der Donckt, Director Government AffairsAsia, NV UMICORE SA

Secretary and TreasurerWim Eraly, Senior General Manager, NV KBC Bank SA

Executive DirectorMs. Gwenn Sonck

Members of the Board of Directors and FoundingMembers:Mr. Stefaan Vanhooren, President Agfa Graphics, Memberof the Executive Committee of the Agfa Gevaert Group, NVTHE AGFA-GEVAERT GROUP SAMr. Carl Peeters, Chief Financial Officer, NV AHLERS SAMr. Filip Pintelon, Senior Vice President, GM Healthcare, NV BARCO SAMr. Philip Eyskens, General Counsel, Senior Vice

President Legal IP GRC, NV BEKAERT SAMr. Philip Hermans, General Manager, NV DEME SAMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Wim Eraly, Head of Corporate and Transaction Banking, KBC Bank SAMr. Johan Verstraete, Vice-President Marketing, Sales &Services Weaving Solutions, NV PICANOL SAMr. Philippe Van der Donckt, Director Government AffairsAsia, NV UMICORE SA

Membership rates for 2019 (excl. VAT)● SMEs: €405 (€490.05 incl. VAT)● Large enterprises: €1,025 (€1,240.25 incl. VAT)

ContactFlanders-China Chamber of CommerceOffice: Ajuinlei 1, B-9000 Gent, BelgiumNew telephone and fax numbers:T ++32/9/269.52.46F ++32/9/269.52.99E info@flanders-china.beW www.flanders-china.be

Share your storyTo send your input for publication in a future newslettermail to: info@flanders-china.be The FCCC Newsletters are edited by Michel Lens,who is based in Beijing and can be contacted by e-mailmichel.jc.lens@gmail.com

Disclaimer: the views expressed in this newsletter are notnecessarily those of the FCCC or its Board of Directors.