Newsletter2 April 2019

FCCC/EUCBA ACTIVITIES

China-U.S. Trade Tensions also Affect European Companies. What about Yours? – 16 May 2019 –08h30 – 11h30 – Ghent

The Flanders China Chamber of Commerce and KBC Bank are organizing a briefing focused on “China-U.S. Trade tensions also affect European companies. What about yours?”.

This event will take place on Thursday 16 May 2019 from 8:30-11:30 at KBC Bank, Kortrijksesteenweg 1100, 9051 Ghent.

The global economy is slowing down due to persistent uncertainties and trade conflicts. Amidst the risk of the U.S.-China trade war escalating towards Europe, European trade policy aims to balance short-term interests. Europe acknowledges the unavoidable further rise of China and explores new ways of structural European-Chinese cooperation. But many question whether Europe's approach is appropriate.

Exploring various features of current Chinese and European business allows us to assess the question of whether Europe is naïve or developing a structurally smart strategy to deal with the Chinese dragon.

During this briefing, two bankers from KBC Bank will discuss the following topics.• China Economic Update Post-Trade War - Mr. P.C. Leung, General Manager, KBC Bank N.V. Shanghai Branch• Is Fortress Europe ready for the Chinese Dragon? - Mr. Jan Van Hove, KBC Group's Chief Economist, and General

Manager of KBC's international economic research activities

Newsletter2 April 2019

FCCC/EUCBA ACTIVITIES

China-U.S. Trade Tensions also Affect European Companies. What about Yours? – 16 May 2019 –08h30 – 11h30 – Ghent

The Flanders China Chamber of Commerce and KBC Bank are organizing a briefing focused on “China-U.S. Trade tensions also affect European companies. What about yours?”.

This event will take place on Thursday 16 May 2019 from 8:30-11:30 at KBC Bank, Kortrijksesteenweg 1100, 9051 Ghent.

The global economy is slowing down due to persistent uncertainties and trade conflicts. Amidst the risk of the U.S.-China trade war escalating towards Europe, European trade policy aims to balance short-term interests. Europe acknowledges the unavoidable further rise of China and explores new ways of structural European-Chinese cooperation. But many question whether Europe's approach is appropriate.

Exploring various features of current Chinese and European business allows us to assess the question of whether Europe is naïve or developing a structurally smart strategy to deal with the Chinese dragon.

During this briefing, two bankers from KBC Bank will discuss the following topics.• China Economic Update Post-Trade War - Mr. P.C. Leung, General Manager, KBC Bank N.V. Shanghai Branch• Is Fortress Europe ready for the Chinese Dragon? - Mr. Jan Van Hove, KBC Group's Chief Economist, and General

Manager of KBC's international economic research activities

NEWSLETTER 2 APRIL 2019 2

P.C. Leung Jan Van Hove

Programme08:30: Registration and networking 09:00: Introduction by Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce09:10: Presentation by P.C. Leung, General Manager, KBC Bank N.V. Shanghai Branch and J. Van Hove, KBC Group's ChiefEconomist, and General Manager of KBC's international economic research activities.10:00: Q & A discussion

Practical InformationLocation: KBC Bank, Kortrijksesteenweg 1100, 9051 GhentPrice: for members: €66,55 (incl.21% VAT)Price: for non-members: €90,75 (incl. 21% VAT)

If you are interested in participating in this event, please subscribe before 11 May 2019 via this link.

Contact: FCCC info@flanders-china.be

About the speakers• P.C. Leung, General Manager, KBC Bank N.V. Shanghai Branch . After 10 years with the Bank of China Group, P.C.

joined KBC Bank Hong Kong Branch at 1991 as Financial Controller. He started his China banking career in KBC Shanghai Branch in 1997. He also worked in KBC Bank Taiwan Branch for 3 years thereafter. He is now the General Manager of KBC Bank Shanghai Branch. P.C. earned an MBA degree and a Master of Information System degree. He is a Chartered Professional Accountant of Canada.

• Jan Van Hove, KBC Group's Chief Economist, and General Manager of KBC's international economic research

activities. In addition, he is a professor in international economics at the University of Leuven in Belgium. As Chairman of the economic commission of the Federation of Belgian Enterprises, he has intensive contacts with Belgian firms. He is specialized in international trade and international macro-economics. His work has been published in various international journals. Jan Van Hove is often consulted by companies, policy makers and international institutions on European and global economic topics. He is also an Honorary Chairman of the International Network for Economic Research and has been a Visiting Professor at various European universities.

NEWSLETTER 2 APRIL 2019 2

P.C. Leung Jan Van Hove

Programme08:30: Registration and networking 09:00: Introduction by Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce09:10: Presentation by P.C. Leung, General Manager, KBC Bank N.V. Shanghai Branch and J. Van Hove, KBC Group's ChiefEconomist, and General Manager of KBC's international economic research activities.10:00: Q & A discussion

Practical InformationLocation: KBC Bank, Kortrijksesteenweg 1100, 9051 GhentPrice: for members: €66,55 (incl.21% VAT)Price: for non-members: €90,75 (incl. 21% VAT)

If you are interested in participating in this event, please subscribe before 11 May 2019 via this link.

Contact: FCCC info@flanders-china.be

About the speakers• P.C. Leung, General Manager, KBC Bank N.V. Shanghai Branch . After 10 years with the Bank of China Group, P.C.

joined KBC Bank Hong Kong Branch at 1991 as Financial Controller. He started his China banking career in KBC Shanghai Branch in 1997. He also worked in KBC Bank Taiwan Branch for 3 years thereafter. He is now the General Manager of KBC Bank Shanghai Branch. P.C. earned an MBA degree and a Master of Information System degree. He is a Chartered Professional Accountant of Canada.

• Jan Van Hove, KBC Group's Chief Economist, and General Manager of KBC's international economic research

activities. In addition, he is a professor in international economics at the University of Leuven in Belgium. As Chairman of the economic commission of the Federation of Belgian Enterprises, he has intensive contacts with Belgian firms. He is specialized in international trade and international macro-economics. His work has been published in various international journals. Jan Van Hove is often consulted by companies, policy makers and international institutions on European and global economic topics. He is also an Honorary Chairman of the International Network for Economic Research and has been a Visiting Professor at various European universities.

NEWSLETTER 2 APRIL 2019 3

FOREIGN TRADE

“Constructive” trade talks to continue inWashington

U.S. and Chinese negotiators met in Beijing last week (see picture above) and will continue their discussions this week in Washington. The latest talks focussed on protection of intellectual property rights, government subsidies for state-owned enterprises, trade barriers, market access and the bilateral trade imbalance. Despite earlier media reports of progress in the negotiations, Chinese analysts said the packed schedule suggested there was still a range of problems.

U.S. Treasury Secretary Steven Mnuchin said the talks were “constructive”. The White House released a statement saying both sides “continued to make progress during candid and constructive discussions on the negotiations and important next steps”, while China’s official Xinhua news agency reported that the two sides “held discussions on the text of the agreement and achieved new progress”. But the People’s Daily warned thatChina would not blink first and race to strike a deal for the sake of it. “At this stage of the talks, we must have a ‘bottom line mindset’, and be prepared to not be able to reach a deal. It’s good if we have agreement, but there is no need to force one,” one commentary said.

“There is certainly still a lot to discuss, and there is pressure for progress to be made for the two heads of stateto meet, therefore the whole schedule is reasonably packed,” Liu Weidong, China-U.S. Affairs Specialist from the Chinese Academy of Social Sciences (CASS) said. Speaking at a panel meeting at the Boao Forum for Asia, former Commerce Minister Chen Deming, shed light on the complexity of the negotiations, saying that while the talks were between China and the U.S., many of the issues

discussed involved multilateral rules and regulations. James Bacchus, a former international U.S. trade negotiator and ex-Chairman of the World Trade Organization’s appellate body, said that “the real sticking point” in the trade talks was an enforcement mechanism involving tariffs to ensure Beijing followed through on its commitments.

“Both sides have entered a make-or-break stage of the negotiations,” Yuan Zheng, an expert on China-U.S. affairs at the Chinese Academy of Social Sciences, said. “It is still more likely that a deal can be reached, but both sidesare facing a lot of pressure,” Yuan continued, adding that he believed the best case scenario would see Trump inviting his Chinese counterpart Xi Jinping for a state visit tothe U.S.

IT & TELECOM

EU rejects U.S. calls to ban Huawei equipmentin its 5G networks

The European Commission has ignored U.S. calls to ban Chinese telecom equipment supplier Huawei as it announced a series of cybersecurity recommendations for next-generation mobile networks. Huawei said in a statement it welcomed the Commission’s “objective and proportionate” recommendations. “Huawei understands the cybersecurity concerns that European regulators have. Based on mutual understanding, Huawei looks forward to contributing to the European framework oncybersecurity. We are firmly committed to continuing working with all regulators and partners to make the 5G roll-out in Europe a success”, Huawei said.

In its guidance for the roll-out of 5G telecom systems in the coming years, the Commission urged member states to assess cyber threats to the 5G infrastructure in their national markets. That information should then be shared

NEWSLETTER 2 APRIL 2019 3

FOREIGN TRADE

“Constructive” trade talks to continue inWashington

U.S. and Chinese negotiators met in Beijing last week (see picture above) and will continue their discussions this week in Washington. The latest talks focussed on protection of intellectual property rights, government subsidies for state-owned enterprises, trade barriers, market access and the bilateral trade imbalance. Despite earlier media reports of progress in the negotiations, Chinese analysts said the packed schedule suggested there was still a range of problems.

U.S. Treasury Secretary Steven Mnuchin said the talks were “constructive”. The White House released a statement saying both sides “continued to make progress during candid and constructive discussions on the negotiations and important next steps”, while China’s official Xinhua news agency reported that the two sides “held discussions on the text of the agreement and achieved new progress”. But the People’s Daily warned thatChina would not blink first and race to strike a deal for the sake of it. “At this stage of the talks, we must have a ‘bottom line mindset’, and be prepared to not be able to reach a deal. It’s good if we have agreement, but there is no need to force one,” one commentary said.

“There is certainly still a lot to discuss, and there is pressure for progress to be made for the two heads of stateto meet, therefore the whole schedule is reasonably packed,” Liu Weidong, China-U.S. Affairs Specialist from the Chinese Academy of Social Sciences (CASS) said. Speaking at a panel meeting at the Boao Forum for Asia, former Commerce Minister Chen Deming, shed light on the complexity of the negotiations, saying that while the talks were between China and the U.S., many of the issues

discussed involved multilateral rules and regulations. James Bacchus, a former international U.S. trade negotiator and ex-Chairman of the World Trade Organization’s appellate body, said that “the real sticking point” in the trade talks was an enforcement mechanism involving tariffs to ensure Beijing followed through on its commitments.

“Both sides have entered a make-or-break stage of the negotiations,” Yuan Zheng, an expert on China-U.S. affairs at the Chinese Academy of Social Sciences, said. “It is still more likely that a deal can be reached, but both sidesare facing a lot of pressure,” Yuan continued, adding that he believed the best case scenario would see Trump inviting his Chinese counterpart Xi Jinping for a state visit tothe U.S.

IT & TELECOM

EU rejects U.S. calls to ban Huawei equipmentin its 5G networks

The European Commission has ignored U.S. calls to ban Chinese telecom equipment supplier Huawei as it announced a series of cybersecurity recommendations for next-generation mobile networks. Huawei said in a statement it welcomed the Commission’s “objective and proportionate” recommendations. “Huawei understands the cybersecurity concerns that European regulators have. Based on mutual understanding, Huawei looks forward to contributing to the European framework oncybersecurity. We are firmly committed to continuing working with all regulators and partners to make the 5G roll-out in Europe a success”, Huawei said.

In its guidance for the roll-out of 5G telecom systems in the coming years, the Commission urged member states to assess cyber threats to the 5G infrastructure in their national markets. That information should then be shared

NEWSLETTER 2 APRIL 2019 4

among EU countries as part of a coordinated effort to develop a “toolbox of mitigating measures” and minimum common standards for 5G network security by the end of the year, according to the recommendations. It is a setback for the United States, which has been lobbying allies in Europe to boycott Huawei over fears its equipment could beused by the Chinese government to carry out cyber espionage.

The EU Commissioner for the Digital Single Market, AndrusAnsip, acknowledged those concerns, saying they stem from Beijing’s 2017 intelligence law that compels Chinese companies to assist in intelligence gathering. “I think we have to be worried about this,” Ansip said at a press briefing in Strasbourg, France. However, the EU Commission prefers to secure Europe’s critical digital infrastructure with a more nuanced approach, rather than bowing to U.S. pressure for blanket bans. Huawei has repeatedly insisted there has never been evidence it was responsible for any security breaches. The Commission’s guidance is non-binding, but EU countries often use it as the basis for joint policies.

Huawei announced that its annual revenue rose 19.5% to CNY721.2 billion (or more than USD100 billion), with profit up 25% to CNY59.3 billion. Smartphones and other consumer goods comprised the bulk of earnings, with the carrier business slightly down on last year, although it is forecast to jump as 5G network contracts are signed. Huawei has already signed contracts accounting for 28% ofthe global market. The company also called on other telecom vendors to open up their source code to scrutiny. Huawei is the only major telecoms equipment vendor that not only ensures the safety and credibility of its products, but also allows a British watchdog to review and test sourcecodes to ensure safety, Guo Ping, Huawei’s rotating Chairman, said during the company’s annual results conference in Shenzhen. “We’ve raised the bar in the industry to ensure not only the products tested during delivery are safe, but our entire development processes arealso credible,” he said. “That’s why we opened our source codes for testing. I believe that through this practice we are setting an example for the whole industry, hoping other vendors will keep up with us and do not lag behind.”

EU-CHINA RELATIONS

EU leaders still want active role in Belt andRoad Initiative despite U.S. opposition

From left to right: Juncker, Xi, Macron and Merkel

At the end of his visit to Italy, Monaco and France, ChinesePresident Xi Jinping met in Paris with French PresidentEmmanuel Macron, German Chancellor Angela Merkel and European Commission President Jean-Claude Juncker. European and Chinese leaders sought to reassure each other over economic cooperation despite theincreasing U.S. move towards protectionism, and EU leaders told Xi they were still open to joining China’s “Belt and Road Initiative”. Xi said China was determined to protect the world’s multilateral system, and was ready to continue with “opening up”. He also invited European countries to join the Belt and Road scheme – which Washington has characterized as a Chinese “vanity project”.

Europeans still wanted to participate in the BRI. The visit took place amid growing European skepticism about China’s influence and follows a decision by the EU to brandChina a “systemic rival” in a policy paper earlier this month.“We understand that China does not like the expression ‘rivals’, but it is a compliment describing our shared ambitions,” Juncker told a press conference.

Xi said China’s process of opening up its economy to the world had allowed the country to achieve in the space of 40years what the Europeans had managed over the course ofthe Industrial Revolution. “We will continue to open up,” he said, “and to make the world a better open economy.” The Chinese President added: “In today’s China-EU relationship, cooperation is the defining feature even if there are differences or competition to some extent. The

NEWSLETTER 2 APRIL 2019 4

among EU countries as part of a coordinated effort to develop a “toolbox of mitigating measures” and minimum common standards for 5G network security by the end of the year, according to the recommendations. It is a setback for the United States, which has been lobbying allies in Europe to boycott Huawei over fears its equipment could beused by the Chinese government to carry out cyber espionage.

The EU Commissioner for the Digital Single Market, AndrusAnsip, acknowledged those concerns, saying they stem from Beijing’s 2017 intelligence law that compels Chinese companies to assist in intelligence gathering. “I think we have to be worried about this,” Ansip said at a press briefing in Strasbourg, France. However, the EU Commission prefers to secure Europe’s critical digital infrastructure with a more nuanced approach, rather than bowing to U.S. pressure for blanket bans. Huawei has repeatedly insisted there has never been evidence it was responsible for any security breaches. The Commission’s guidance is non-binding, but EU countries often use it as the basis for joint policies.

Huawei announced that its annual revenue rose 19.5% to CNY721.2 billion (or more than USD100 billion), with profit up 25% to CNY59.3 billion. Smartphones and other consumer goods comprised the bulk of earnings, with the carrier business slightly down on last year, although it is forecast to jump as 5G network contracts are signed. Huawei has already signed contracts accounting for 28% ofthe global market. The company also called on other telecom vendors to open up their source code to scrutiny. Huawei is the only major telecoms equipment vendor that not only ensures the safety and credibility of its products, but also allows a British watchdog to review and test sourcecodes to ensure safety, Guo Ping, Huawei’s rotating Chairman, said during the company’s annual results conference in Shenzhen. “We’ve raised the bar in the industry to ensure not only the products tested during delivery are safe, but our entire development processes arealso credible,” he said. “That’s why we opened our source codes for testing. I believe that through this practice we are setting an example for the whole industry, hoping other vendors will keep up with us and do not lag behind.”

EU-CHINA RELATIONS

EU leaders still want active role in Belt andRoad Initiative despite U.S. opposition

From left to right: Juncker, Xi, Macron and Merkel

At the end of his visit to Italy, Monaco and France, ChinesePresident Xi Jinping met in Paris with French PresidentEmmanuel Macron, German Chancellor Angela Merkel and European Commission President Jean-Claude Juncker. European and Chinese leaders sought to reassure each other over economic cooperation despite theincreasing U.S. move towards protectionism, and EU leaders told Xi they were still open to joining China’s “Belt and Road Initiative”. Xi said China was determined to protect the world’s multilateral system, and was ready to continue with “opening up”. He also invited European countries to join the Belt and Road scheme – which Washington has characterized as a Chinese “vanity project”.

Europeans still wanted to participate in the BRI. The visit took place amid growing European skepticism about China’s influence and follows a decision by the EU to brandChina a “systemic rival” in a policy paper earlier this month.“We understand that China does not like the expression ‘rivals’, but it is a compliment describing our shared ambitions,” Juncker told a press conference.

Xi said China’s process of opening up its economy to the world had allowed the country to achieve in the space of 40years what the Europeans had managed over the course ofthe Industrial Revolution. “We will continue to open up,” he said, “and to make the world a better open economy.” The Chinese President added: “In today’s China-EU relationship, cooperation is the defining feature even if there are differences or competition to some extent. The

NEWSLETTER 2 APRIL 2019 5

Belt and Road Initiative has enriched the world’s multilateralsystem; we invite all countries, including France, to join.”

French President Macron said the four leaders had discussed “friendship” as well as “existing rivalries” between the EU and China and agreed to seek a “trust-based partnership. Our common will is to avoid new trade conflicts and isolationist policies,” Macron said. But a few days before meeting Xi, Macron said that “the period of European naivety is over,” and that letting Chinese companies buy up EU infrastructure such as ports had been a “strategic error”, the South China Morning Post reports.

ADVERTISEMENT ANDSPONSORSHIP

Interested in advertisement in the FCCC Weekly or on the FCCC website? Send an e-mail to info@flanders-china.be

CHINA NEWS ROUND-UP

China to reduce logistics costs by CNY121billion this year

China aims to reduce logistics costs by nearly CNY121 billion this year, the Ministry of Transport announced. Spokesman Wu Chungeng said the Ministry will also promote the innovative development of the sector. China will continue to increase railway freight volume, upgrade its water transportation system, regulate highway freight transport and speed up multimodal transport in a bid to improve its logistics network and optimize its structure, Wu said. It will also further integrate important ports and harbors into the inland multimodal transport and logistics network, which will connect them with more railways and highways and enable improved cargo interoperability, he added.

The country will also expand the use of pilot programs to deepen reform of the administrative law enforcement system in the logistics industry to improve its efficiency; andit will streamline certain fees related to ports, highways and airports, he said. In addition, the Ministry will step up its efforts to manage the effects of eliminating highway toll stations at provincial boundaries. According to the National

Development and Reform Commission (NDRC), logistics expenditures rose 9.8% to CNY13.3 trillion, amounting to14.8% of last year’s national GDP. The share was slightly up from the previous year.

The Ministry of Transport has been making consistent efforts to reduce logistics costs and raise efficiency. It reduced logistics spending by CNY56 billion in 2016, CNY68 billion in 2017 and CNY98 billion in 2018. China ranked 12th last year in the World Bank’s logistics performance index covering 160 countries and regions. China’s position has moved up 15 places since 2016, the China Daily reports.

Geely and Daimler to jointly develop electricSmart cars

China’s Geely and Mercedes-Benz maker Daimler announced the establishment of a 50-50 joint venture todevelop the next generation of electric Smart cars to be made in China. Under the agreement, expected to be finalized by the end of the year, the new vehicle will go on global sale in 2022. The new Smart cars will be styled by the Mercedes-Benz Design network with engineering by Geely. Before the launch of the next generation, Daimler will continue to produce the current “fortwo” model of the Smart car at its plant in Hambach, northeastern France. The Smart car will thereafter be manufactured in China, butDaimler insists no jobs will be lost in France. Daimler says €500 million will be invested in the Hambach plant, which will assume “an additional role” producing a compact electric vehicle under the new “EQ” brand. “All jobs will be sustained through our new project which will consist of creating a new assembly line for the construction of a Mercedes-Benz electric SUV in Hambach,” Serge Siebert, CEO of Smart France, said.

Geely is owned by Chinese billionaire Li Shufu, who is also Daimler’s main shareholder having acquired nearly 10% in the German manufacturer in February 2018 worth around €7.2 billion. Founded in 1986, Geely was originally a low-cost home appliance maker before Founder Li transformed it into an auto group in the late 1990s, becoming one of China’s leading private manufacturers. In 2010, while Geelyand its entry-level vehicles represented only a few percent of the Chinese market, the group paid USD1.5 billion to buyVolvo Cars. The following year, Geely invested USD11 billion in Volvo to launch a new line of cars, which saw the brand take off in China. Geely reported worldwide sales of 2.15 million vehicles in 2018, up 18.3% year-on-year, and anet profit for 2018 of €1.66 billion, up 18% on 2017, on a

NEWSLETTER 2 APRIL 2019 5

Belt and Road Initiative has enriched the world’s multilateralsystem; we invite all countries, including France, to join.”

French President Macron said the four leaders had discussed “friendship” as well as “existing rivalries” between the EU and China and agreed to seek a “trust-based partnership. Our common will is to avoid new trade conflicts and isolationist policies,” Macron said. But a few days before meeting Xi, Macron said that “the period of European naivety is over,” and that letting Chinese companies buy up EU infrastructure such as ports had been a “strategic error”, the South China Morning Post reports.

ADVERTISEMENT ANDSPONSORSHIP

Interested in advertisement in the FCCC Weekly or on the FCCC website? Send an e-mail to info@flanders-china.be

CHINA NEWS ROUND-UP

China to reduce logistics costs by CNY121billion this year

China aims to reduce logistics costs by nearly CNY121 billion this year, the Ministry of Transport announced. Spokesman Wu Chungeng said the Ministry will also promote the innovative development of the sector. China will continue to increase railway freight volume, upgrade its water transportation system, regulate highway freight transport and speed up multimodal transport in a bid to improve its logistics network and optimize its structure, Wu said. It will also further integrate important ports and harbors into the inland multimodal transport and logistics network, which will connect them with more railways and highways and enable improved cargo interoperability, he added.

The country will also expand the use of pilot programs to deepen reform of the administrative law enforcement system in the logistics industry to improve its efficiency; andit will streamline certain fees related to ports, highways and airports, he said. In addition, the Ministry will step up its efforts to manage the effects of eliminating highway toll stations at provincial boundaries. According to the National

Development and Reform Commission (NDRC), logistics expenditures rose 9.8% to CNY13.3 trillion, amounting to14.8% of last year’s national GDP. The share was slightly up from the previous year.

The Ministry of Transport has been making consistent efforts to reduce logistics costs and raise efficiency. It reduced logistics spending by CNY56 billion in 2016, CNY68 billion in 2017 and CNY98 billion in 2018. China ranked 12th last year in the World Bank’s logistics performance index covering 160 countries and regions. China’s position has moved up 15 places since 2016, the China Daily reports.

Geely and Daimler to jointly develop electricSmart cars

China’s Geely and Mercedes-Benz maker Daimler announced the establishment of a 50-50 joint venture todevelop the next generation of electric Smart cars to be made in China. Under the agreement, expected to be finalized by the end of the year, the new vehicle will go on global sale in 2022. The new Smart cars will be styled by the Mercedes-Benz Design network with engineering by Geely. Before the launch of the next generation, Daimler will continue to produce the current “fortwo” model of the Smart car at its plant in Hambach, northeastern France. The Smart car will thereafter be manufactured in China, butDaimler insists no jobs will be lost in France. Daimler says €500 million will be invested in the Hambach plant, which will assume “an additional role” producing a compact electric vehicle under the new “EQ” brand. “All jobs will be sustained through our new project which will consist of creating a new assembly line for the construction of a Mercedes-Benz electric SUV in Hambach,” Serge Siebert, CEO of Smart France, said.

Geely is owned by Chinese billionaire Li Shufu, who is also Daimler’s main shareholder having acquired nearly 10% in the German manufacturer in February 2018 worth around €7.2 billion. Founded in 1986, Geely was originally a low-cost home appliance maker before Founder Li transformed it into an auto group in the late 1990s, becoming one of China’s leading private manufacturers. In 2010, while Geelyand its entry-level vehicles represented only a few percent of the Chinese market, the group paid USD1.5 billion to buyVolvo Cars. The following year, Geely invested USD11 billion in Volvo to launch a new line of cars, which saw the brand take off in China. Geely reported worldwide sales of 2.15 million vehicles in 2018, up 18.3% year-on-year, and anet profit for 2018 of €1.66 billion, up 18% on 2017, on a

NEWSLETTER 2 APRIL 2019 6

turnover of €14.1 billion, up 15%. Daimler’s net profits last year were €7.6 billion, down 30% on 2017, with sales of €167 billion, up 2%, the Shanghai Daily reports. China has been the largest market for Daimler. Last year, its China sales totaled more than 650,000 vehicles, around a quarter of its global sales.

Supreme People’s Court rules in favor of Frenchcompany in patent dispute

The Intellectual Property Court of China’s Supreme People’s Court (SPC) has ruled in favor of Valeo Systèmes d’Essuyage, one of the world’s leading auto component providers, in a patent dispute with Xiamen Lukasi Car Accessories Co and Xiamen Fuke Wiper Co, two companies based in Fujian province. It was the first public hearing since the special court was set up on January 1. The plaintiff claimed infringement of its patent ona connector for windshield wipers. An IP court in Shanghai had reached a verdict on January 22 finding that the two Chinese companies must cease their infringement, but theyappealed to the top court, insisting that their products did not infringe on Valeo’s patent rights. After a two-hour hearing, the top court upheld the original ruling, and said the two companies should stop their infringement immediately. The Shanghai IP Court will further determine the exact amount of compensation that the two Chinese companies should pay to Valeo. During the first trial, Valeo had requested compensation of CNY6 million.

The trial “shows the country’s strong determination in fighting infringement, and intensified judicial protection forIPR and innovation driven development,” said Ma Yide, an Intellectual Property Professor from Zhongnan University ofEconomics and Law who attended the hearing. The final verdict was reached only two months after the original one. Such a fast pace reflects improved efficiency in handling IP-related lawsuits in Chinese courts, he said. The improvement is attributed to the establishment of a national-level IP court under the Supreme People’s Court, which has streamlined the appeals process and helps prevent inconsistency in legal applications, Ma said. With such a national-level IP court, litigants who disagree with the verdicts of local courts at the city level or local IP courts can appeal directly to the top court instead of appealing to provincial-level courts. Under previous procedures, the two Chinese companies could not have appealed to the top court directly but would have had to go to the Shanghai High People’s Court after the first verdict.

The trial was heard by a five-judge panel led by Luo Dongchuan, SPC Vice President and Chief Judge of its IP court, the China Daily reports.

Rapid growth in the property industry is over,says Vanke

The era of the rapid growth of the entire property industry has ended in China and future development should be based on consolidating fundamentals, according to China Vanke Co, one of China’s largest property developers. Vanke Chairman Yu Liang said that the company, confronted with extreme uncertainty in 2019, will abandon any speculative attitude or reliance on bull market thinking. The focus of its work this year is to concentrate onexpanding “fundamental operations” in its property development business. According to the National Bureau ofStatistics (NBS), the growth rate of the property sales area and sales figure in 2018 decreased 6.4% and 1.5% respectively, compared with a year earlier.

However, top developers still had a fruitful year in 2018. China Evergrande Group’s revenue and net profitincreased by approximately 50% last year, while Country Garden reported year-on-year increases of above 65%. Vanke realized growth of more than 20% in both revenue and net profit last year. Vanke in 2014 started a transformation of exploring diversified services, including property management, apartment leasing, warehousing and tourism, after seeing that the golden era for the development of the property market had come to an end. It has been aggressively developing these new sectors in the last two years, especially the leasing sector.

In the second half of 2018, several developers jumped into the longterm leasing market, acquiring a large number of houses from individual owners, an action blamed for raising rental prices. Meanwhile, China Evergrande and Country Garden are also transforming by establishing new businesses, including robotics and new energy cars. Yan Yuejin, Director of the Shanghai-based E-house China Research and Development Institution, said investment in emerging sectors is a way to avoid risk in the property market, the China Daily reports.

NEWSLETTER 2 APRIL 2019 6

turnover of €14.1 billion, up 15%. Daimler’s net profits last year were €7.6 billion, down 30% on 2017, with sales of €167 billion, up 2%, the Shanghai Daily reports. China has been the largest market for Daimler. Last year, its China sales totaled more than 650,000 vehicles, around a quarter of its global sales.

Supreme People’s Court rules in favor of Frenchcompany in patent dispute

The Intellectual Property Court of China’s Supreme People’s Court (SPC) has ruled in favor of Valeo Systèmes d’Essuyage, one of the world’s leading auto component providers, in a patent dispute with Xiamen Lukasi Car Accessories Co and Xiamen Fuke Wiper Co, two companies based in Fujian province. It was the first public hearing since the special court was set up on January 1. The plaintiff claimed infringement of its patent ona connector for windshield wipers. An IP court in Shanghai had reached a verdict on January 22 finding that the two Chinese companies must cease their infringement, but theyappealed to the top court, insisting that their products did not infringe on Valeo’s patent rights. After a two-hour hearing, the top court upheld the original ruling, and said the two companies should stop their infringement immediately. The Shanghai IP Court will further determine the exact amount of compensation that the two Chinese companies should pay to Valeo. During the first trial, Valeo had requested compensation of CNY6 million.

The trial “shows the country’s strong determination in fighting infringement, and intensified judicial protection forIPR and innovation driven development,” said Ma Yide, an Intellectual Property Professor from Zhongnan University ofEconomics and Law who attended the hearing. The final verdict was reached only two months after the original one. Such a fast pace reflects improved efficiency in handling IP-related lawsuits in Chinese courts, he said. The improvement is attributed to the establishment of a national-level IP court under the Supreme People’s Court, which has streamlined the appeals process and helps prevent inconsistency in legal applications, Ma said. With such a national-level IP court, litigants who disagree with the verdicts of local courts at the city level or local IP courts can appeal directly to the top court instead of appealing to provincial-level courts. Under previous procedures, the two Chinese companies could not have appealed to the top court directly but would have had to go to the Shanghai High People’s Court after the first verdict.

The trial was heard by a five-judge panel led by Luo Dongchuan, SPC Vice President and Chief Judge of its IP court, the China Daily reports.

Rapid growth in the property industry is over,says Vanke

The era of the rapid growth of the entire property industry has ended in China and future development should be based on consolidating fundamentals, according to China Vanke Co, one of China’s largest property developers. Vanke Chairman Yu Liang said that the company, confronted with extreme uncertainty in 2019, will abandon any speculative attitude or reliance on bull market thinking. The focus of its work this year is to concentrate onexpanding “fundamental operations” in its property development business. According to the National Bureau ofStatistics (NBS), the growth rate of the property sales area and sales figure in 2018 decreased 6.4% and 1.5% respectively, compared with a year earlier.

However, top developers still had a fruitful year in 2018. China Evergrande Group’s revenue and net profitincreased by approximately 50% last year, while Country Garden reported year-on-year increases of above 65%. Vanke realized growth of more than 20% in both revenue and net profit last year. Vanke in 2014 started a transformation of exploring diversified services, including property management, apartment leasing, warehousing and tourism, after seeing that the golden era for the development of the property market had come to an end. It has been aggressively developing these new sectors in the last two years, especially the leasing sector.

In the second half of 2018, several developers jumped into the longterm leasing market, acquiring a large number of houses from individual owners, an action blamed for raising rental prices. Meanwhile, China Evergrande and Country Garden are also transforming by establishing new businesses, including robotics and new energy cars. Yan Yuejin, Director of the Shanghai-based E-house China Research and Development Institution, said investment in emerging sectors is a way to avoid risk in the property market, the China Daily reports.

NEWSLETTER 2 APRIL 2019 7

Volvo sees opportunities in China’s push forgreen growth

With green growth gaining traction in China, the Swedish Volvo Group sees big opportunities in the country’s efforts to embrace environmentally friendly transportation technologies and services. Martin Lundstedt, President and CEO of Volvo Group, said Chinese companies are shifting their focus from pure upfront costs to a more sustainable lifecycle-cost perspective, which make them more willing to embrace highly efficient and environmentally reliable products, and this offers good opportunities for Volvo Group.

According to Lundstedt, the company now has more than 850,000 connected trucks, construction equipment and buses globally, representing the world’s largest number of connected commercial vehicles. In 2020, the number is expected to reach more than one million, driven by growth in countries including China, the world’s largest market for heavy-duty trucks. “When we look at China’s transport industry, we can see even greater potential in technology innovation for sustainable development,” Lundstedt said.

In China, the past decade has seen an unprecedented rate of urbanization, with official data showing that more than 10% of the country’s population has moved to first and second-tier cities, putting a lot of pressure on infrastructure,transport and logistics, and other social services. This development will require efficient transport systems to supply food, goods and everything else needed for everyday life, and to move people around the cities, Lundstedt said, adding that sustainable transportation technologies will help China lower the proportion of logisticscost in the country’s GDP.

Currently, Volvo Group is striving to tap into China’s booming e-commerce sector which is driving the entire transport system forward and resulting in high demand for punctuality and reliability. Leading Chinese courier companies such as Yunda Express, Zhongtong Express and Yuantong Express have all bought Volvo trucks. Dongfeng Commercial Vehicles, a joint venture Volvo set up with Dongfeng Motor in 2015, is also working hard to better meet local players’ demand with new products. Volvohas also tested its autonomous trucks in Beijing, hoping to apply them to local harbors, given that seven of the top 10 busiest ports in the world are located in China, the China Daily reports.

China cuts electric car subsidies by up to 60%

The Chinese government’s move to slash subsidies by up to 60% on electric cars is likely to dent sales in the short-term. Four ministries and commissions, including theMinistry of Finance, introduced tougher subsidy policies to improve the technological standards of the NEV industry. Subsidies on NEVs with a driving range of 250 to 300 kilometers have been reduced to CNY18,000 from CNY34,000. For cars with a range between 300 to 400 km, the subsidy has been cut by a much sharper 60% to CNY18,000, from CNY45,000 earlier and for cars with a driving range of more than 400 km, the subsidy has been cut by 50% to CNY25,000. Battery-powered cars with a range of less than 250 km will not receive any subsidy. The new subsidy scheme will take effect on June 26.

“Reduced subsidies will force buyers to pay more for an electrical car and affect sales in the coming months,” said Tian Maowei, Sales Manager at Shanghai-based Yiyou Auto Service. “After all, many Chinese car buyers are price-sensitive and they may baulk at the heightened prices.” Patrick Yuan, Analyst at Jefferies, said in a research note that the new rules were much more stringent than market expectation. The new rules also prevent local governments from subsidizing NEV purchases from June 25, except for buses and fuel cell vehicles. Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), said the governments should roll out other incentives to spur the further growth of the EV industry after reducing subsidies. “Policies to support fast construction of a national charging network should be worked out to facilitatethe use of new-energy vehicles,” he said. Subsidies to EV buyers were first introduced in 2009 and peaked in 2014. It is expected that Beijing will fully cancel subsidies for EVs in2020.

The Chinese government wants local EV manufacturers to catch up with the global leaders in terms of technological standards. The new measures call for improvement in EV batteries so that cars can drive further without recharging and provide support for technologically advanced products and the phasing out of the uncompetitive ones. It will help to force out those which are over-reliant on subsidies and make room for serious companies.

The government also called on local authorities to improve the charging network. China had 866,000 charging poles bythe end of February, up 76.8% year-on-year, according

NEWSLETTER 2 APRIL 2019 7

Volvo sees opportunities in China’s push forgreen growth

With green growth gaining traction in China, the Swedish Volvo Group sees big opportunities in the country’s efforts to embrace environmentally friendly transportation technologies and services. Martin Lundstedt, President and CEO of Volvo Group, said Chinese companies are shifting their focus from pure upfront costs to a more sustainable lifecycle-cost perspective, which make them more willing to embrace highly efficient and environmentally reliable products, and this offers good opportunities for Volvo Group.

According to Lundstedt, the company now has more than 850,000 connected trucks, construction equipment and buses globally, representing the world’s largest number of connected commercial vehicles. In 2020, the number is expected to reach more than one million, driven by growth in countries including China, the world’s largest market for heavy-duty trucks. “When we look at China’s transport industry, we can see even greater potential in technology innovation for sustainable development,” Lundstedt said.

In China, the past decade has seen an unprecedented rate of urbanization, with official data showing that more than 10% of the country’s population has moved to first and second-tier cities, putting a lot of pressure on infrastructure,transport and logistics, and other social services. This development will require efficient transport systems to supply food, goods and everything else needed for everyday life, and to move people around the cities, Lundstedt said, adding that sustainable transportation technologies will help China lower the proportion of logisticscost in the country’s GDP.

Currently, Volvo Group is striving to tap into China’s booming e-commerce sector which is driving the entire transport system forward and resulting in high demand for punctuality and reliability. Leading Chinese courier companies such as Yunda Express, Zhongtong Express and Yuantong Express have all bought Volvo trucks. Dongfeng Commercial Vehicles, a joint venture Volvo set up with Dongfeng Motor in 2015, is also working hard to better meet local players’ demand with new products. Volvohas also tested its autonomous trucks in Beijing, hoping to apply them to local harbors, given that seven of the top 10 busiest ports in the world are located in China, the China Daily reports.

China cuts electric car subsidies by up to 60%

The Chinese government’s move to slash subsidies by up to 60% on electric cars is likely to dent sales in the short-term. Four ministries and commissions, including theMinistry of Finance, introduced tougher subsidy policies to improve the technological standards of the NEV industry. Subsidies on NEVs with a driving range of 250 to 300 kilometers have been reduced to CNY18,000 from CNY34,000. For cars with a range between 300 to 400 km, the subsidy has been cut by a much sharper 60% to CNY18,000, from CNY45,000 earlier and for cars with a driving range of more than 400 km, the subsidy has been cut by 50% to CNY25,000. Battery-powered cars with a range of less than 250 km will not receive any subsidy. The new subsidy scheme will take effect on June 26.

“Reduced subsidies will force buyers to pay more for an electrical car and affect sales in the coming months,” said Tian Maowei, Sales Manager at Shanghai-based Yiyou Auto Service. “After all, many Chinese car buyers are price-sensitive and they may baulk at the heightened prices.” Patrick Yuan, Analyst at Jefferies, said in a research note that the new rules were much more stringent than market expectation. The new rules also prevent local governments from subsidizing NEV purchases from June 25, except for buses and fuel cell vehicles. Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), said the governments should roll out other incentives to spur the further growth of the EV industry after reducing subsidies. “Policies to support fast construction of a national charging network should be worked out to facilitatethe use of new-energy vehicles,” he said. Subsidies to EV buyers were first introduced in 2009 and peaked in 2014. It is expected that Beijing will fully cancel subsidies for EVs in2020.

The Chinese government wants local EV manufacturers to catch up with the global leaders in terms of technological standards. The new measures call for improvement in EV batteries so that cars can drive further without recharging and provide support for technologically advanced products and the phasing out of the uncompetitive ones. It will help to force out those which are over-reliant on subsidies and make room for serious companies.

The government also called on local authorities to improve the charging network. China had 866,000 charging poles bythe end of February, up 76.8% year-on-year, according

NEWSLETTER 2 APRIL 2019 8

to the China Electric Vehicle Charging Infrastructure Promotion Alliance. China, the world’s largest car market, reported sales of nearly 1.3 million NEVs in 2018, a jump of61.7% from a year earlier, compared with a 2.8% year-on-year decline in sales for the overall car sector, the first contraction since 1992. The China Passenger Car Association estimated 1.7 million new energy vehicles will be sold this year, the South China Morning Post and the China Daily report.

Hong Kong small businesses’ confidence ingrowth at five-year low

Confidence in growth among small businesses in HongKong for 2019 is at a five-year low, according to a survey by professional accounting body CPA Australia. The annualpoll, conducted between November 16 and December 11 last year, covered 3,607 businesses with less than 20 employees in Hong Kong, China, Taiwan, Malaysia, Vietnam, Indonesia, the Philippines, Singapore, Australia and New Zealand. Increasing uncertainty arising from the U.S.-China trade war has rattled small businesses in Hong Kong, with 52% of respondents saying the conflict will have a negative impact on their business this year. Confidence ingrowth has also fallen from about 80% to 71% among mainland Chinese small business owners.

About 34%, however, also reported the trade war is likely tohave a positive effect on their performance. “There’s a possibility some businesses are using this as an opportunity to increase their domestic market share,” said Gaven Ord, Manager of Business and Investment Policy at CPA Australia. “With the tariffs, products manufactured and produced in China are now more competitive than products from the U.S. within China,” he added.

The annual survey also found the percentage of businesses generating more than 10% of their income from online sales was down across the region in 2018. Sales in Hong Kong were down by 10% from 54% in 2017. CPA Australia said this drop could be temporary, due to eroded consumer trust following data breaches at global companies such as Facebook and Google. In Hong Kong, the data of 9.4 million customers of flagship carrier Cathay Pacific Airlines was hacked last year. “Hong Kong’s small businesses can and should utilize government funding to invest in cybersecurity measures,” said Janssen Chan, Deputy Divisional President and Chairperson of CPA Australia’s SME committee.

Despite a challenging global economy, both Ord and Chan said they thought Hong Kong’s small businesses were likelyto remain resilient. “Even though recent government data showed sentiment has not improved much, most of the businesses have already digested the risks, so it should notfall much more,” said Chan. Small companies in emerging economies such as Indonesia and the Philippines were also likely to benefit from the trade war, with companies moving operations out of China and into Indonesia, Malaysia and Vietnam, said Ord.

Hong Kong hands out first three virtual banklicenses

The Hong Kong Monetary Authority (HKMA) handed out three virtual banking licenses allowing financial institutions to operate branchless savings and loans businesses, as the city catches up with other Asian jurisdictions in disrupting traditional banking. Livi VB, co-owned by Bank of China (Hong Kong), JD Digits and Jardines; SC Digital Solutions, a joint venture between Standard Chartered, HKT, PCCW and Ctrip; and Zhong AnVirtual Finance, a joint venture between ZhongAn Online and Sinolink will be the operators of the first three virtual banking licenses, according to the Hong Kong Monetary Authority (HKMA). The city now has 155 licensed banks.

Arthur Yuen, HKMA’s Deputy Chief Executive, said: “There will be competition between traditional banks and digital banks, but we believe the Hong Kong market can absorb such competitive pressure.” Two of the winning joint ventures are led by two of Hong Kong’s three note-issuing banks, BOCHK and Standard Chartered. Yuen said the twojoint ventures will have to find new users – they cannot access the banks’ client bases without prior consent from clients. Livi VB, which counts Jardine’s as a partner, will notbe able to use Jardine’s retail operations such as supermarket Wellcome and 7 Eleven as bank branches. “The Hong Kong virtual banks will be purely digital banks. Our requirement is that they need to offer all bank transactions through digital methods,” said Yuen.

Many non-banking companies will join the sector, bringing new models and experience to the banking sector, said Yuen. As the virtual banks do not need to open branches and can use technology to cut costs, they will be better placed to offer small loans – as small as a few hundred dollars – and still make a profit. Traditional banks, which need millions to maintain their network, tend not to focus onsmall customers. On average, each virtual bank has HKD1.9 billion in capital, higher than the minimum

NEWSLETTER 2 APRIL 2019 8

to the China Electric Vehicle Charging Infrastructure Promotion Alliance. China, the world’s largest car market, reported sales of nearly 1.3 million NEVs in 2018, a jump of61.7% from a year earlier, compared with a 2.8% year-on-year decline in sales for the overall car sector, the first contraction since 1992. The China Passenger Car Association estimated 1.7 million new energy vehicles will be sold this year, the South China Morning Post and the China Daily report.

Hong Kong small businesses’ confidence ingrowth at five-year low

Confidence in growth among small businesses in HongKong for 2019 is at a five-year low, according to a survey by professional accounting body CPA Australia. The annualpoll, conducted between November 16 and December 11 last year, covered 3,607 businesses with less than 20 employees in Hong Kong, China, Taiwan, Malaysia, Vietnam, Indonesia, the Philippines, Singapore, Australia and New Zealand. Increasing uncertainty arising from the U.S.-China trade war has rattled small businesses in Hong Kong, with 52% of respondents saying the conflict will have a negative impact on their business this year. Confidence ingrowth has also fallen from about 80% to 71% among mainland Chinese small business owners.

About 34%, however, also reported the trade war is likely tohave a positive effect on their performance. “There’s a possibility some businesses are using this as an opportunity to increase their domestic market share,” said Gaven Ord, Manager of Business and Investment Policy at CPA Australia. “With the tariffs, products manufactured and produced in China are now more competitive than products from the U.S. within China,” he added.

The annual survey also found the percentage of businesses generating more than 10% of their income from online sales was down across the region in 2018. Sales in Hong Kong were down by 10% from 54% in 2017. CPA Australia said this drop could be temporary, due to eroded consumer trust following data breaches at global companies such as Facebook and Google. In Hong Kong, the data of 9.4 million customers of flagship carrier Cathay Pacific Airlines was hacked last year. “Hong Kong’s small businesses can and should utilize government funding to invest in cybersecurity measures,” said Janssen Chan, Deputy Divisional President and Chairperson of CPA Australia’s SME committee.

Despite a challenging global economy, both Ord and Chan said they thought Hong Kong’s small businesses were likelyto remain resilient. “Even though recent government data showed sentiment has not improved much, most of the businesses have already digested the risks, so it should notfall much more,” said Chan. Small companies in emerging economies such as Indonesia and the Philippines were also likely to benefit from the trade war, with companies moving operations out of China and into Indonesia, Malaysia and Vietnam, said Ord.

Hong Kong hands out first three virtual banklicenses

The Hong Kong Monetary Authority (HKMA) handed out three virtual banking licenses allowing financial institutions to operate branchless savings and loans businesses, as the city catches up with other Asian jurisdictions in disrupting traditional banking. Livi VB, co-owned by Bank of China (Hong Kong), JD Digits and Jardines; SC Digital Solutions, a joint venture between Standard Chartered, HKT, PCCW and Ctrip; and Zhong AnVirtual Finance, a joint venture between ZhongAn Online and Sinolink will be the operators of the first three virtual banking licenses, according to the Hong Kong Monetary Authority (HKMA). The city now has 155 licensed banks.

Arthur Yuen, HKMA’s Deputy Chief Executive, said: “There will be competition between traditional banks and digital banks, but we believe the Hong Kong market can absorb such competitive pressure.” Two of the winning joint ventures are led by two of Hong Kong’s three note-issuing banks, BOCHK and Standard Chartered. Yuen said the twojoint ventures will have to find new users – they cannot access the banks’ client bases without prior consent from clients. Livi VB, which counts Jardine’s as a partner, will notbe able to use Jardine’s retail operations such as supermarket Wellcome and 7 Eleven as bank branches. “The Hong Kong virtual banks will be purely digital banks. Our requirement is that they need to offer all bank transactions through digital methods,” said Yuen.

Many non-banking companies will join the sector, bringing new models and experience to the banking sector, said Yuen. As the virtual banks do not need to open branches and can use technology to cut costs, they will be better placed to offer small loans – as small as a few hundred dollars – and still make a profit. Traditional banks, which need millions to maintain their network, tend not to focus onsmall customers. On average, each virtual bank has HKD1.9 billion in capital, higher than the minimum

NEWSLETTER 2 APRIL 2019 9

requirement of HKD300 million. More licenses are being processed. The remaining five applicants in a final shortlist might get approval in the coming months. The first batch will be allowed to complete a year of operations before newlicenses are given out, the South China Morning Post reports.

Your banner at the FCCC website or newsletter

Companies interested in posting a banner/an advertisement on the FCCC website, FCCC weekly newsletter or bi-weekly sectoral newsletters are kindly invited to contact the FCCC at: info@flanders-china.be

Organisation and founding members of the Flanders-China Chamber of Commerce

Chairman: Mr. Stefaan Vanhooren, President Agfa Graphics, Member of the Executive Committee of the Agfa Gevaert Group, NV THE AGFA-GEVAERT GROUP SAVice-Chairmen: Mr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Philippe Van der Donckt, Director Government Affairs Asia, NV UMICORE SA

Secretary and Treasurer: Wim Eraly, Senior General Manager, NV KBC Bank SAExecutive Director: Ms. Gwenn SonckMembers of the Board of Directors and Founding Members:Mr. Stefaan Vanhooren, President Agfa Graphics, Member of the Executive Committee of the Agfa Gevaert Group, NV THE AGFA-GEVAERT GROUP SAMr. Christian Leysen, Executive Chairman, NV AHLERS SAMr. Filip Pintelon, Senior Vice President, GM Healthcare, NV BARCO SAMr. Philip Eyskens, Senior Vice President Legal, IT and M&A, NV BEKAERT SAMr. Philip Hermans, General Manager, NV DEME SAMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Wim Eraly, Senior General Manager, KBC Bank SAMr. Johan Verstraete, Vice-President Marketing, Sales & Services Weaving Solutions, NV PICANOL SAMr. Philippe Van der Donckt, Director Government Affairs Asia, NV UMICORE SA

Membership rates for 2019 (excl. VAT)

● SMEs: €405 (€490.05 incl. VAT)● Large enterprises: €1,025 (€1,240.25 incl. VAT)

Contact

Flanders-China Chamber of CommerceOffice: Ajuinlei 1, B-9000 Gent – Belgium New telephone and fax numbers: Tel.: +32/9/269.52.46 – Fax: ++32/9/269.52.99E-mail: info@flanders-china.be Website: www.flanders-china.be

Share your story

To send your input for publication in a future newsletter mailto: info@flanders-china.be

The FCCC Newsletters are edited by Michel Lens, who is based in Beijing and can be contacted by e-mail michel.jc.lens@gmail.com . Disclaimer: the views expressed in this newsletter are not necessarily those of the FCCC or its Board of Directors.

NEWSLETTER 2 APRIL 2019 9

requirement of HKD300 million. More licenses are being processed. The remaining five applicants in a final shortlist might get approval in the coming months. The first batch will be allowed to complete a year of operations before newlicenses are given out, the South China Morning Post reports.

Your banner at the FCCC website or newsletter

Companies interested in posting a banner/an advertisement on the FCCC website, FCCC weekly newsletter or bi-weekly sectoral newsletters are kindly invited to contact the FCCC at: info@flanders-china.be

Organisation and founding members of the Flanders-China Chamber of Commerce

Chairman: Mr. Stefaan Vanhooren, President Agfa Graphics, Member of the Executive Committee of the Agfa Gevaert Group, NV THE AGFA-GEVAERT GROUP SAVice-Chairmen: Mr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Philippe Van der Donckt, Director Government Affairs Asia, NV UMICORE SA

Secretary and Treasurer: Wim Eraly, Senior General Manager, NV KBC Bank SAExecutive Director: Ms. Gwenn SonckMembers of the Board of Directors and Founding Members:Mr. Stefaan Vanhooren, President Agfa Graphics, Member of the Executive Committee of the Agfa Gevaert Group, NV THE AGFA-GEVAERT GROUP SAMr. Christian Leysen, Executive Chairman, NV AHLERS SAMr. Filip Pintelon, Senior Vice President, GM Healthcare, NV BARCO SAMr. Philip Eyskens, Senior Vice President Legal, IT and M&A, NV BEKAERT SAMr. Philip Hermans, General Manager, NV DEME SAMr. Bart De Smet, Chief Executive Officer, NV AGEAS SAMr. Wim Eraly, Senior General Manager, KBC Bank SAMr. Johan Verstraete, Vice-President Marketing, Sales & Services Weaving Solutions, NV PICANOL SAMr. Philippe Van der Donckt, Director Government Affairs Asia, NV UMICORE SA

Membership rates for 2019 (excl. VAT)

● SMEs: €405 (€490.05 incl. VAT)● Large enterprises: €1,025 (€1,240.25 incl. VAT)

Contact

Flanders-China Chamber of CommerceOffice: Ajuinlei 1, B-9000 Gent – Belgium New telephone and fax numbers: Tel.: +32/9/269.52.46 – Fax: ++32/9/269.52.99E-mail: info@flanders-china.be Website: www.flanders-china.be

Share your story

To send your input for publication in a future newsletter mailto: info@flanders-china.be

The FCCC Newsletters are edited by Michel Lens, who is based in Beijing and can be contacted by e-mail michel.jc.lens@gmail.com . Disclaimer: the views expressed in this newsletter are not necessarily those of the FCCC or its Board of Directors.