Overseas Market Introduction Service

for

Sea Fish Industry Authority

Produced by:

Holly Chen

China-Britain Business Council, Beijing Office

Date of document: 5th February 2013

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CONTENTS

1. SUMMARY OF THE ENQUIRY ...................................................... 3

1.1 Introduction ................................................................. 3

1.2 Objectives .................................................................... 3

1.3 Research Methods ......................................................... 3

2. EXECUTIVE SUMMARY ............................................................... 4

3. MATCHING PROFILE .................................................................. 6

3.1 China’s Trade Environment ............................................. 6

3.2 The Seafood Sector ....................................................... 7

3.3 Aquatic Consumption ................................................... 12

3.4 UK Share and Export Opportunities ............................... 14

4. DOING BUSINESS IN CHINA .................................................... 17

4.1 The Supply Structure ................................................... 17

4.2 The Direct Retail Channel ............................................. 18

4.3 The Food Service Channel ............................................ 20

4.4 Key Regulations and Tariffs .......................................... 21

4.5 Tips and Useful Links ................................................... 27

4.6 Seafood Distributors in China ........................................ 30

5. CBBC RECOMMENDATIONS AND NEXT STEPS .......................... 32

6. APPENDIX ............................................................................... 34

The OMIS is provided by the Commercial Departments of Diplomatic Service Posts overseas as part of the joint trade development operation, UK Trade & Investment (“UKTI”), of the Foreign and Commonwealth Office ("the FCO") and the Department for Business, Innovation and Skills (“BIS”). In China, UKTI has commissioned the China-Britain Business Council (“CBBC") to provide certain OMIS work on its behalf. Whereas every effort has been made to ensure that information provided through OMIS is accurate, these Commercial Departments, UKTI, the FCO, BIS and CBBC accept no liability for any errors, omissions or misleading statements in such information and accept no responsibility as to the standing of any firm, company or individual mentioned. Any party interested in the goods or services provided by any company referred to in OMIS material should undertake their own research and should not consider a reference in OMIS material to be an endorsement of any goods, services or companies mentioned.

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1. SUMMARY OF THE ENQUIRY

1.1 Introduction

Sea Fish Industry Authority (Seafish) is funded by a levy on the first sale of

seafood landed and imported in the UK. It aims to support the seafood industry

for a sustainable, profitable future.

1.2 Objectives

The objective of this OMIS was to update existing market reports which Seafish

will be using to inform their stakeholders. Additionally, CBBC also needed to

research a list of seafood importers and provide information on market entry

routes and import regulations/procedures in China.

1.3 Research Methods

CBBC used a variety of primary and secondary sources to gather information for

this report. Research was conducted primarily through desk research, including

CBBC’s internal database of member companies, business directories, and

telephone calls to industry experts.

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2. EXECUTIVE SUMMARY

CBBC conducted research on behalf of Seafish to update information relating to

Seafish’s 2007 report “Seafish Export Profile on China”. Seafish will use this

report to inform their levy payers on market conditions and opportunities within

the Chinese market. This Executive Summary will summarise the content and

findings of the research.

China’s Seafood Sector

China’s economy is the largest consumer, importer, exporter and producer of sea

food in the world. China’s total aquatic production is estimated to have reached

58 billion tons in 2012. Farmed fish in China accounts for 59% of total aquatic

production.

China’s aquatic catch facilities expansion has slowed in recent years.

Furthermore, aquatic production fell by half a million tons to 15.3 million tons in

2012. Concerns over domestically produced cultured aquatic products’ quality and

safety remain a concern for consumers.

China is estimated to have imported USD $5.7 billion worth of aquatic products in

2012. This is unchanged from 2011, however, total import volumes were down

2.6%. Russia is the largest importer of aquatic products to China.

Regulations

It is important to be up-to-date with all regulations regarding importation of

aquatic products in China. Recent changes are outlined in section 4.4 of this

report. Below are some of the most important factors which will effect business

operations in China:

From 1st October 2012, food and beverage exporters to China are required

to be registered with the General Administration Quality Supervision,

Inspection and Quarantine (AQSIQ).

Changes to Export Health Certificates (EHCs) have also occurred in recent

months due to requests from the Chinese government. The primary

change is the mandatory inclusion of information on whether fishery

products were caught wild or farmed.

To comply with recent changes in Chinese regulations DEFRA has agreed

with the Chinese authorities (AQSIQ) to have two unified UK export health

certificates for live aquatic animal exports to China: 7432EHC for live

aquatic animals (excluding Bi-Valve molluscs), and 7469EHC for live

aquatic Bi-Valve molluscs.

From 1st May 2013, processing plan registration with the Certification and

Accreditation Administration of People’s Republic of China is required. All

companies wishing to export fishery products to China must be registered.

An outline of important documents required for importing aquatic products and

guidelines for food labelling can also be found in section 4.4.

Even if a product is certified as ‘organic’ in its home country, and where it is

already on sale, this does not mean it is certified in China. In 2005, the Chinese

government introduced its own organic standards. The regulations are divided

into four areas: production, processing, labelling and marketing & management

systems. New fishery product specific standards where implemented in 2012:

A zero-tolerance rule for residue.

5

If a product comes from different farms each farm needs to be inspected.

Guidelines on how to seek organic certification are outlined in section 4.4. This is

an expensive process in China as there are a variety of lab tests required.

Companies seeking certification will also have to pay for travel and

accommodation of Chinese inspectors who will examine their suitability. Organic

certifications need to be renewed every year but fees are lower for subsequent

certification renewal.

Tariffs

Aquatic imports to China are subjected to Most Favoured Nation Rates. Value-

Added Tax is applied to all products entering China from abroad. The current rate

of 13% is applied to unprocessed, unpacked agricultural products and 17% for

processed, packaged food.

Doing Business in China

China’s consumers have a preference for live aquatic products. Domestically

processed cultured products are mostly exported. As China’s middle class

develops and the desire for new sources of protein rises, interest in a more

diverse and nutritious diet had led to greater quantities of seafood products being

consumed.

In 2011 urban dwellers consumed 14.2 Kg of aquatic products each on average,

compared to 5.36 Kg for rural inhabitants. Consumption of aquatic products is

highest in coastal regions and in areas with high disposable incomes.

Boutique stores and hypermarkets are important channels for fish distribution in

China. Consumers are slowly turning to ready-to-cook and processed products for

their convenience. Hypermarkets are driving this trend with processed fish,

shellfish and shrimp.

Identifying the right distribution channels in China is paramount to success. China

is a unique marketplace, and regional differences are strong and need to be

understood. There are generally four steps in the distribution of seafood:

importation, distribution, sub-distribution and retail. China’s supply structure is

summarised in section 4.1. Suggestions on how to promote seafood products

within each of these channels are also outlined.

An examination of the food service and retail sales in China are examined to

provide a deeper insight into the market and the entry routes available.

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3. MATCHING PROFILE

3.1 China’s Trade Environment

Table 1: China Facts

China Facts

Population 1,355,822,000

Land area 9,597,000 sq km

Inhabitants per km 141

Number of households 401,520,000

Capital Beijing

Other main cities

Shanghai, Tianjin, Chongqing,

Guangzhou

Languages Mandarin, Cantonese

Religion Taoist, Buddhist, Christian, Muslim

Currency RMB

Exchange rate (2012 average) £1 = 9.8 CNY

Total GDP (2012) $8,280 billion

Real GDP growth rate (2012) 7.80%

GDP per capita (2011) $5,342

Inflation (2012) 2.70%

Official unemployment (2011) 4.10%

International status

World’s 2nd largest economy,

developing country, WTO member

Government type Communist state

Total food and drink import USD $144.7 billion

Total food and drink export USD $64.6 billion

Top three import countries

(food and drink) USA, Indonesia, Thailand

Consumer expenditure on food USD $661,332.5 million

Source: Euromonitor International; China Statistical Yearbook 2011; Central Intelligence Agency (CIA) World Factbook

China has produced an average GDP growth of around 10% over the past ten

years. According to estimates, China’s GDP in 2012 was RMB ¥51,932.2 billion, a

year-on-year increase of 7.8%.

The total value of import and exports in 2012 was USD $3,866.76 billion,

an annual increase of 6.2%.

The total value of exports reached $2,048.93 billion, a year on year

increase of 7.9%.

The total value of imports was $1,817.83 billion, an increase of 4.3% on

2011. The trade balance for 2012 was $231.1 billion.

General trade increased 4.4 % to $2,009.83 billion.

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China’s middle class currently accounts for roughly 23% of China’s population,

which numbers 310 million people. This number is expected to increase to 40%

by 2020 according to a report published by Chinese Academy of Social Sciences.

An increased middle-class population will create a stronger consumer base for

high-end goods, such as some non-local seafood.

Latest statistics published by the Ministry of Agriculture (MOA) indicates that

China’s total import and export value of agricultural products in 2012 reached

USD $175.7 billion, an increase of 12.9% compared to 2011. The total value of

exports was $63.2 billion, up by 4.2%; total value of import was $112.4 billion,

an increase of 18.6%.

3.2 The Seafood Sector

China is the largest consumer, importer, exporter and producer of seafood in the

world, representing one third of total global production. China is also the largest

fish farming country representing 46% of world farming production and the only

country where farmed fish production exceeds wild catch.

China’s total aquatic production in 2012 is estimated to have reached 58 million

tons, representing an increase of roughly 4% year-on-year. This increase is said

to be due to gains in aquaculture growth, as wild catch production remains

stagnant. Challenges to fishery production include: decreasing investment,

concerns for the environment and coastal development minimising resources for

aquaculture expansion.

Domestic demand for alternative sources of protein, including aquatic products, is

rising due to increased affluence. However, weak international economic

conditions are challenging export growth. Total aquatic trade value in 2012 is

estimated to have reached USD $27 billion, an increase of $1.2 billion year-on-

year. A produce surplus of $10 billion is also estimated.

Wild Catch Production

Limited resources are containing growth for wild catch numbers, and processing

(with imported material) for re-export is facing increasing production costs and a

loss of competition.

Amongst wild catch production, shellfish output ranks first with 61%, followed by

crustaceans with 19%; algae is 6% and fish is 4%. Others as seen in the chart

below include sea cumber, jellyfish and sea urchin.

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Chart 1: Aquatic Production (Wild Catch) 1992-2011 (Tons)

Source: Presentation by Mr. Cui He from China Aquatic Products Processing and Marketing Alliance

Table 2: China's Aquatic Catch Volume (000s tons)

Year 2007 2008 2009 2010 2011

Total aquatic catch 14,691.90 14,827.77 14,947.21 15,441.67 15,799.46

Seawater catch 12,435.48 12,579.58 12,763.34 13,152.30 13,567.20

Freshwater catch 2,256.42 2,248.19 2,183.88 2,289.37 2,232.27

Aquaculture

Farmed fish production accounts for 59% of the total aquatic production, followed

by shellfish and crustaceans at 22.6% and 10% respectively.

Table 3: China's Aquatic Farming Figures (000s tons)

2007 2008 2009 2010 2011

Total seafood farming 32,783.31 34,128.21 36,216.83 38,288.35 40,232.63

Seawater farming 13,073.40 13,403.24 14,052.22 14,823.01 15,513.29

Freshwater farming 19,709.91 20,724.98 22,164.61 23,465.34 24,719.34

Source: China Statistic Yearbook 2012

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Chart 2: Farmed Seawater Products Composition

4%

19%

61%

6%

10%

Fishes

Crustaceans

Molluscs

Algae

Others

Source: Presentation by Mr. Cui He from China Aquatic Products Processing and Marketing Alliance

At the National Fishery Conference held in December 2012, China’s Ministry of

Agriculture (MOA) estimated total aquatic production at 59 million tons, up 5.4%

year-on-year.

Within this total, aquaculture production increased 7% to 43 million tons and wild

catch production totalled 14.8 million tons. Wild catch from other territorial areas

accounted for an additional 1.2 million tons. In 2011, Shandong, Guangdong,

Fujian and Zhejiang provinces ranked as the top four aquatic production areas

due to their favourable coastal positions and wealth of fresh water resources and

facilities.

Hubei, Guangdong and Jiangsu provinces are the largest produces for freshwater

production.

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Chart 3: Rate of Changes for Farming and Fishing Products Production

Source: Presentation by Mr. Cui He from China Aquatic Products Processing and Marketing Alliance

Aquatic Catch Facility Expansion Slows

Investment in facility expansion in recent years has slowed. 2011 saw a 2.5%

expansion in facilities, this is a significant decrease from 2009 which saw 14%

expansion. The Chinese government believes rapid industrialisation, urbanisation

and environmental concerns are preventing further aquaculture expansion.

Shrinking Aquatic Catch Production

Total domestic production in 2012 fell by half a million tons to 15.3 million tons

from 2011, primarily due to a limitation of available marine resources. Other

territorial seas, seawater production reached 1,147,000 tons in 2012, only

marginally higher than 2011 when 1,147,000 tons was caught. Industry experts

believe it will be difficult to increase production considerably from both domestic

and territorial seas.

Aquatic Product Safety Concerns

Domestically cultured aquatic product quality and safety continues to be a major

concern for consumers. An MOA aquatic safety survey signified some aquatic

farms have been penalized for the use of malachite green and overuse of

antibiotics. The MAO recently published administrative measures on the control of

agricultural product quality and safety. This stipulates regulation on risk

monitoring and sampling for all agricultural products.

Future Fishery Development Plans

In October 2011, the MOA published its 12th Five Year Plan (2011-2015), entitled

the Development Plan for Fishery. Significant targets under the plan include:

Meeting the rapid growing demand for quality aquatic products from domestic

consumers.

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Placing an increased emphasis on the balance between aquaculture

development and ecological protection.

Reconstruct and standardise 1,333,000 Hectares (Ha) of aquaculture ponds

to raise productivity and achieve safety/quality targets for 98% of aquatic

products.

Maintaining the stability of growing marine fishery output in other territorial

seas with a target production of 1.3 million tons per year, up from 2010’s

output of 1.1 million tons.

Licensing all aquaculture production facilities by 2015.

Raising production to 60 million tons by 2015,with 75% from aquaculture (as

compared to estimated 72% in 2011)

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3.3 Aquatic Consumption

Aquatic processing for domestic consumption continued to grow in 2012. Chinese

consumers have a preference for live or fresh aquatic goods. Therefore, domestic

consumption of processed aquatic products is relatively low compared to overall

aquatic product consumption. Domestically, processed aquatic products which are

mostly cultured are primarily exported.

Aquatic processing bases tend to be located in or near major aquatic production

regions. There are currently a total of 9,611 processing facilities in China; of

these 67% (6,413) are located in Zhejiang, Shandong, Fujian and Guangdong

provinces. Shandong has a processing capacity of 7.9 million tons per year,

therefore ranking it number one in processing output.

Many foreign major aquaculture producers have also opened processing facilities

in these key provinces. They also provide great access to ports and cold storage

facilities.

As China’s processing and distribution system becomes more developed and

consumers affluence increases, interest in more a diverse and nutritious diet has

led to greater quantities of seafood being consumed. Figures released by the

National Statistics Bureau stated that per capita consumption of aquatic products

in 2011 was 14.62 kg per urban dweller and 5.36 kg per rural inhabitant.

Although, urban dwellers eat significantly more aquatic products than those in

rural areas, there is a strong potential for growth in the rural sector.

Chart 4: Per Capita Consumption (Urban vs Rural) Trends of Aquatic

Products

Source: China Statistic Yearbook 2012

Per capita consumption is highest in coastal regions and locations with high

disposable incomes. The table below shows the leading ten provinces for aquatic

product consumption.

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Table 4: Per Capita Cash Consumption Expenditure on Aquatic Products

by Urban Resident, by Region, in 2011

Region Aquatic

Production

Expenditure

Value

(RMB)

Disposable

Income

Rank

Disposable

Income

Value (RMB)

Fujian 1,030 7 24,907

Shanghai 912 1 36,230

Zhejiang 812 3 30,970

Guangdong 701 5 26,897

Hainan 771 21 18,368

Tianjin 493 4 26,920

Jiangsu 458 6 26,340

Liaoning 403 9 20,467

Shangdong 339 8 22,792

Guangxi 325 12 18,854

Hubei 294 18 18,374

National Average

354 Not Available 21,809

Source: China Statistical Yearbook 2012

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3.4 UK Share and Export Opportunities

Imports

Import value for aquatic products is estimated at USD $5.7 billion in 2012, this

was almost unchanged from 2011; however, total import volume is around 2.6

million tons, down 4% year-on-year.

Global Trade Atlas reported that 1.6 million tons of fish/frozen (HS Code 0303)

imports was reached in the first 10 months of 2012. This was a drop of 9% from

the previous year. The import volume of flatfish remained unchanged whilst

salmon imports during the first 10 months of 2012 dropped sharply to 117,000

tons from 192,000 tons in 2011 due to lower processing demands.

Russia is expected to remain China’s largest supplier of aquatic products in 2012,

followed distantly by the United States.

Table 5: Imports by category of Aquatic Products (Volume, tons; Value,

million USD)

Years Jan-Dec 2009 Jan-Dec 2010 Jan-Dec 2011 Jan-Oct 2012

Volume Tons

Value $ million

Volume Tons

Value $ million

Volume Tons

Value $ million

Volume Tons

Value $ million Category

Fresh Fish 9,789 61 9,789 61 12,056 94 17,274 122

Frozen Fish 1,782,948 2,711 1,782,948 2,711 2,166,123 3,823 1,600,684 2,777

Fillet Fish 30,374 66 30,374 66 24,334 66 27,010 71

Dried, Salted, Brines Fish 7,810 19 7,810 19 3,183 15 3,198 14

Crustacea 88,428 337 88,428 337 117,306 823 103,579 903

Mollusks & Other 274,980 394 274,980 394 336,326 743 252,757 557

Prepared and Packaged Fish and Caviar 3,226 16 3,226 16 5,199 23 4,107 21

Prepared and Packaged Crustaceans and Mollusks 26,291 36 26,291 26 55,775 150 50,473 108

Total 2,223,844 3,638 2,223,844 3,638 2,720,37 5,737 2,059,082 4,572 Source: Global Trade Atlas

Table 6: Seafood Imports by Country of Origin (million USD)

Country/Year Jan-Dec

2009

Jan-Dec

2010

Jan-Dec

2011

Jan-Oct

2012 Russia 1,186 1,262 1,592 1,136

United States 549 726 1,130 945

Norway 274 401 409 303

Japan 203 303 155 139

Canada 162 217 310 300

India 124 156 149 78

South Korea 117 153 228 119

15

Thailand 99 136 141 130

Netherlands 92 117 66 52

New Zealand 75 97 176 199

Peru 65 77 158 122

Indonesia 54 64 84 107

Others 638 731 1,141 942

Total 3,638 4,438 5,737 4,572

Source: Global Trade Atlas

Chart 5: Chart UK seafood exports to China ($0,000)

Source: Ministry of Agriculture, HMRC

Recent Consumer Trends and Business Opportunities

Retail and food services channels are the most important outlets for imported

food products in China. These channels are growing and developing due to

increased consumer affluence, urbanisation, food safety concerns, health

consciousness and the demand for convenience increases.

Supermarkets/hypermarkets are also developing rapidly in China. International

hypermarkets tend to have more awareness and experience in imported brands

and products. They realise the value new products can bring to the market.

Speciality/boutique stores are also increasing in numbers in tier one cities1 across

China. These stores target expatriates and high income locals as they stock a

high proportion of imported foods. These stores are increasingly becoming

important retail channels for high-end and speciality products.

Chinese consumers have traditionally preferred live and fresh seafood products.

This accounts for 90% of the total aquatic product consumption in China.

However, as the demand for a more convenience driven lifestyle develops,

consumers are turning towards read-to-cook and processed products of high

quality. This provides a good opportunity for processed products including

processed fish, shellfish and shrimp through the hypermarket channels.

1 Cities in China are classified into tiers (1-5). Cities are classified by GDP, cultural significance, population, and

transport links amongst others. Tier one cities include Beijing, Shanghai and Shenzhen.

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Wholesale markets are the main distribution channels for imported aquatic

products. Catering services, wet markets, supermarkets and corporate canteens

purchase their products through wholesale markets. Most leading importers and

distributors have a presence and tend to sell to distributors who have a resident

booth in these markets.

There are over 300 seafood markets in large cities and coastal cities in China.

Well-known seafood wholesale markets include Shenzhen Yantan seafood market,

Guangzhou Huangsha seafood wholesale market, Shanghai Tongchuang seafood

market and Beijing Jinshen Seafood market. These markets act as regional hubs

for seafood distribution in China.

China is one the largest food service markets in the world with sales of over RMB

2,063 billion in 2011. The food services industry has been growing at around 16%

per year. This growth rate is projected to remain unchanged in the 12th five year

plan. Officials from the Ministry of Commerce (MOFCOM) estimate that by 2015

total sales in the sector will reach RMB 3,700 billion. The development of the

sector is to some extent due to an increase in the fast paced lifestyle of China’s

ever-growing middle-class consumers.

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4. DOING BUSINESS IN CHINA

Due both to its size and the rapid changes it is experiencing, the retail sector in

China is very complicated and most be explored carefully by any potential

importers. An understanding of the country’s supply structures is crucial before

an attempt to establish partnerships or distribution networks is made, especially

for products such as fresh food that rely on fast, efficient distribution.

Below is a summary of the main points to consider when analysing the Chinese

market.

4.1 The Supply Structure

There are usually four steps in the distribution of fish and seafood products in

China: importation, distribution, sub-distribution and retail. From a logistical point

of view, importation into China is relatively straightforward. There are two main

points of entry for fresh seafood into China in the north (Qingdao and Dalian),

which are primarily used for processing imported seafood for re-export.

Shenzhen, Guangzhou and Shanghai are also important ports, but primarily for

importing seafood for domestic consumption.

Chart 6: Typical Supply Channel Structure for Aquatic Products in China

Once purchased from the wholesale markets, distributors sell their products

through the following three channels:

Producers

Wholesalers

Landing Area shippers or intermediates

Wholesalers

Intermediate Wholesalers

Retailers/wholesale stores of

foodstuffs

Customer

Landing areas

wholesale market

Consumption areas wholesale

market wholesale

market

18

Households and small restaurants: This sector of consumers usually

purchases their seafood products from local markets, generally in small

quantities.

Direct Retail Channel: The volume of both processed and live seafood

being purchased in supermarkets and hypermarkets is increasing rapidly,

with consumers generally including mid-sized restaurants and households.

Food Service Channel: The largest sector of seafood consumers is the

Hotels, Restaurants and Institutions (HRI) sector.

Due to the relatively small quantities sold at local markets to households and

small restaurants, this report focus on the latter two distribution channels.

Key Chinese Ports

The chart below illustrates the total volume of imports for the major ports in

China. Qingdao and Dalian are the two largest arrival ports for aquatic products in

China, they accounted for 80% of the total import volume of aquatic products in

the first ten months of 2012. Well-established facilities, including processing

factories in Qingdao and Dalian, solidify their status as the two seafood import

hubs in China. A map in the Appendix shows the location of China’s major ports.

Table 8: Key Chinese Ports

4.2 The Direct Retail Channel

According to Euromonitor, the grocery retail sector in China was worth USD

$504.4 billion in 2011 and is forecast to grow to $707.2 billion by 2016.

Supermarkets in China dominate the retail landscape with a market share of

around 44%. Although the supermarkets’ dominance is likely to continue,

Euromonitor estimates that online food and drink sales will increase from $485.6

million in 2011 to $3.1billion in 2016.

Hypermarkets

Food retail in China is very competitive, with a number of Chinese and

multinational companies attempting to dominate the market.

Table 6: Leading Food Retailers in China

Cargo Volume Container Traffic, TEUs

Rank Port Millions of

Tonnes

Rank Port 000s

containers 1 Ningbo-zhoushan 691 1 Shanghai 32,600

2 Shanghai 620 2 Zhenzhen 23,000

3 Tianjin 451 3 Ningbo-zhoushan 16,250

4 Guangzhou 429 4 Qingdao 14,600

5 Suzhou 380 5 Guangzhou 14,500

6 Qingdao 375 6 Tianjin 12,500

7 Dalian 338 7 Dalian 8100

8 Tangshan 308 8 Xiamen 7200

9 Qinghuangdao 287 9 Lianyungang 5000

10 Yingkou 261 10 Yingkou 5000

19

Company Ownership Business Line Stores

Sales

(RMB Billion)

Chinese

Lianhua China SOE*

Super/hypermarket/conveni

ence 5221 68.0

Wumart China Pvt Supermarket/convenience 409 33.0

Nongongshang China SOE

Super/hypermarket/conveni

ence 3374 30.2

Yonghui 204 20.4

China

Resources

Vanguard

China

SOE**

Super/hypermarket/conveni

ence 3977 82.7

Multinational

RT Mart France Hypermarket 185 61.5

Carrefour France Hypermarket 203 45.1

Wal-Mart U.S JV Hypermarket 271 43.0

Metro Germany JV Hypermarket 54 13.8

Tesco UK JV Hypermarket 121 18.0

Auchan France Hypermarket 45 12.6

Lotus Thailand Hypermarket/convenience 52 10.0

*SOE=State owned Enterprise Source: China Chain Store & Franchising Association (CCFA)

Hypermarkets in China generally have favoured distributors and dislike working

with unfamiliar companies unless offered strong market support, large numbers

of products and other incentives.

Promotion in the Retail Sector

Some major companies and even government organisations promote products by

festivals and sales promotions within supermarkets, hotels and food festivals. For

example, the Agricultural Trade Office (ATO) of the United States Consulate

General in Shanghai co-organised an American Food Festival from 23 August to

27 September 2012 in Suzhou, Hangzhou and Xincheng. Promotions were held in

four five-star hotels to promote US pork, snow crabs, oysters, yellow sole fins,

potatoes, cheese, almonds, raisins and other food ingredients. A celebrity chef

was also present in Suzhou and Hangzhou to host cooking demos and seminar

events with local chefs.

Retail store promotion is also a key instrument in increasing sales and interest in

the Chinese market. In 2005 Alaska Seafood Marketing Institute (“ASMI”) in

conjunction with Shanghai Trust-mart held an Alaskan seafood festival. This

allowed ASMI to promote wild King salmon and black cod. After the festival,

Alaskan seafood became a regular product on the shelves of Shanghai Trust-mart.

Other companies have also successfully used this process to introduce or increase

sales of products.

Hotel promotion, trader conferences and media coverage are also great

promotional activities to get products noticed. International Exhibitions, such as

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those listed in section 4.5 of this report are also key to developing a brand within

China as it allows visitors to taste the produce.

4.3 The Food Service Channel

Many restaurants continue to buy live seafood from market booths. Larger chains

tend to use importers. Fish tanks in restaurants are a common sight in China,

allowing customers to choose their own seafood products before they are cooked.

One of China’s largest supermarket chains, Metro, often receives its products

directly from importers specifically to sell to restaurant chefs and small retail

outlets.

The HRI (Hotel, Restaurant, Institutional) sector has developed rapidly in China,

due to expatriates, overseas Chinese entrepreneurs, returning Chinese students

and international and domestic tourists. China's desire for seafood is expected to

show strong growth for the foreseeable future, as general living standards rise

and the middle class grows. Hotels and Restaurants

Tourism in China has increased substantially over recent years, with an estimated

750 million Chinese people now travelling for leisure each year for holidays.

Hotels are rapidly being constructed to accommodate this growth, with regional

cities seeing a particularly large rise in hotel construction.

The majority of hotels in China house ‘full-service’ restaurants. These usually

cater to non-guests as well as guests and are often among the best restaurants in

any given location. Generally speaking, the clientele found in China’s hotel

restaurants are upper-middle class urban dwellers and businessman. Wedding

banquets also make up a sizeable proportion of hotel restaurant revenues.

Full-service restaurants of the type found in hotels represent China’s largest

foodservice sector, accounting for 72% of the entire sector’s market value. Hotel

restaurants have also seen the highest growth of food outlets by location, with a

compound annual growth rate (CAGR) between 2005 and 2010 of 9.4%compared

to a 5.1% rise in standalone restaurants.

In the full-service restaurant sector, European food, typically French and Italian

cuisine, has been very popular in recent years, experiencing a 59.5% CAGR

between 2005 and 2010. To date, very few European-style full-service

restaurants have established a notable presence in China.

Fast Food

Despite the rise in popularity in high-end restaurants, fast food remains the most

popular food retail sector in China, accounting for 61% of all transactions. The

sector has been valued at approximately $81 billion. Small kiosks and vendors

represent 7.8% of transactions with cafes and bars accounting for 0.5% and

specific takeaway stores accounting for less than 0.002%.

The fast food sector consists primarily of Asian cuisine, which accounted for $71

billion of total sales in 2010. Asian food is also dominant in the full-service

restaurant retail sector in China, accounting for $227 billion or 94% of the sector

in 2010.

Non-Asian cuisine however is gaining popularity very quickly. Western food has

made large inroads in the fast food sector over recent years, with pizza in

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particular gaining in popularity. The two largest players in the fast food sector

Yum Brands and McDonalds provide predominantly western food and have

developed a substantial portfolio of outlets across China. Yum Brands’ two largest

brands, KFC and Pizza Hut now have 3,701 and 626 restaurants respectively, with

its two main Asian cuisine brands, Little Sheep and East Dawning, also seeing

large growth.

Institutional Foodservice

Traditionally, institutional foodservice in China was limited to hospitals,

government offices, schools and the transportation sector. Over recent years

however, the institutional foodservice industry has expanded into high-end office

complexes and companies. There are now an estimated one million catering

companies in China, with some reaching annual revenues of over $10 million.

Approximately 80% of consumers surveyed in Shanghai said they would be

willing to try catering companies, but only provided the food is healthy, prepared

according to industry standards and convenient.

Companies that cater to private functions, hotels and conferences are much more

likely to use imported products than those at the lower end of the market, as

smaller family-run enterprises can often be extremely price sensitive – lunch box

manufacturers for example typically aim for production costs lower than $1.00,

making the fluctuations in price of imported goods unattractive.

However, with high-end restaurants and caterers often seen as market leaders,

their use of imported food is being increasingly replicated by companies catering

to middle class consumers.

4.4 Key Regulations and Tariffs

Registration of Food and Drink Exporters

From 1st October 2012, food and beverage exporters to China are required to

register through the General Administration of Quality Supervision, Inspection

and Quarantine (AQSIQ). Registration can also be done through import

companies. Both options can be accessed through http://ire.eciq.cn. This website

includes guidance in Chinese only – CBBC has produced a bi-lingual guide for

exporters which is available from claire.urry@cbbc.org or holly.chen@cbbc.org.cn

Certification & Registration

For products of plant or animal origin, the Chinese government requires

certification by a UK Government authority. Non-live fishery products (farmed

and wild) require an Export Health Certificate (EHC)2 from The Department of

Environment, Food, and Rural Affairs (DEFRA). The EHC has been in place for

some time. However recent changes as requested by the Chinese government

have led to changes and a new EHC, 7208EHC is being introduced.

2 The main change requested related to the inclusion of information on whether the fishery products

were caught in the wild or farmed. Official confirmation of this agreement has not been received by the DEFRA to date. However, when an update is available it will be noted on DEFRA’s website as a Customer Information Note (CIN) (www.defra.gov.uk). ASQSIQ requires that all consignments arriving in China on or after 1 January 2013 must be accompanied by an updated 7208EHC.

22

Until recently, exports of fishery products to China have been certified by Local

Authority (LA) officials. To comply with recent changes in Chinese regulations

DEFRA has agreed two unified UK export Health Certificates produced by Local

Authorities with the AQSIQ:

7432EHC for Live aquatic animals, excluding Bi-Valve molluscs

7469EHC for live aquatic Bi-Valve molluscs

These certificates can be completed by local authority environmental health

officers, food safety officers and official veterinarians acting on behalf of DEFRA

and Department of Agriculture and Rural Development (DARD).

Certificate 7208EHC can be completed by local authority environmental health

Officers and Food Safety Officers and Official Veterinarians acting on behalf of

DEFRA or DARD. Live fishery products also require an EHC.

Processing plant registration with Certification and Accreditation Administration of

People’s Republic of China (CNCA) will be required from 1 May 2013. All UK

companies wishing to export fishery products to China must be registered. For

both live and non-live products, exporters must provide full and correct details of

all facilities involved in the production process including, processing plants,

freezer vessel, transportation vessels, factory vessels and cold stores. These must

be registered by 1 May 2013.

To register these facilities before 1 May 2013, companies must submit

information to Animal Health &Veterinary Laboratory Agency (AHVLA) in Carlisle

or to DARD by the end of February 2013. All UK fishery product companies which

are approved in compliance with EU Food Hygiene Law can be listed.

If an exporter has already registered a production plant with AQSIQ via DEFRA

(on any of the ‘ET’ forms), it is not necessary to re-send information about Official

Inspectors. Re-registration of plants with CNCA will be required in 2013 and

returns from exporters will be needed by the end of February 2013.

Standard documentation required when exporting to China

The table below shows the required UK-generated export documents which are

required for each shipment by Customs and Excise in the Chinese port of entry.

Original documents must be signed, stamped and couriered to China (though the

Bill of Lading may be sent electronically) to arrive one week before the expected

shipment.

Table 7: Documentation Required by UK Exporting Companies

Document

Original with

Signature & Stamp Copies Prepare & Issued By

Commercial Invoice 3x 2x UK Food/beverage company

Packing List 3x 2x UK Food/beverage company

Export Health Certificate (see notes on certification) 1x 1x Local authority

23

Certificate of fumigation wood pallets (or use individually-stamped pallets) 1X 1X UK Food/beverage company

Buyer/Seller Agreement signed by both parties (requested at some

ports) 3x 2x UK Food/beverage company

Bill of Lading 3x 2x UK shipping agent

Certificate of Origin (EU Certificate issued by local Chamber of Commerce) 1x 1x UK shipping agent

It is worth verifying with Chinese partners or importers the exact requirements

for the specific Chinese port of entry that will be used for shipments. On

occasions, some companies have also been asked to include a ‘Sales Certificate’

or similar. In such cases companies have supplied a Certificate of Free Sale

issued by the Rural Payments Agency (RPA). Companies should be aware that

regulations in China can change and the interpretation thereof by individual

officials may not be consistent across all entry ports.

Tariffs

Tariffs for UK aquatic exports to China are subject to Most Favored Nation rates.

To receive these rates a UK exporter must present a certificate of UK origin

during the customs clearance process.

Tariffs vary according to products. Details can be found in these links.

http://www.qgtong.com/hgsz/ShowArticle.asp?ArticleID=11867

http://www.aptma.org.pk/china_customs_tariff_2011.pdf

Value-added tax is applied to all products entering the market from abroad. The

VAT rate is 13% for unprocessed, unpacked agricultural products and 17% for

processed, packaged food.

Food Labelling

Since joining the World Trade Organisation (WTO) in December 2001, China has

introduced or modified hundreds of food and agricultural related regulations and

standards. These have included changes in food laws, labelling requirements,

packaging and container requirements, food additive regulations, multiple

commodity regulations, commodity specific regulations and specific procedures.

Below are the key regulations which should be met by products which are

imported into China.

Food and Beverage Labelling Regulations in China

To comply with China’s food labelling regulations, all imported foods and

beverages have to show a white label attached to individual bottles, cans or

packets in simplified Chinese as used in mainland China. Labels must be approved

by the Chinese Inspection and Quarantine Service (CQIS). The regulation

requests products to be labelled before shipping, but as this is difficult to carry

out CQIS allows labelling to take place in bonded warehouses in China.

The following is the minimum requirement of information to be listed:

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Standard name of foodstuffs.

List of ingredients as percentages in descending order of content, net

weight and volume of each.

Name and address of manufacturer and local agent or distributor.

Production date, best before end date and guidance for storage.

Country of origin.

Quality grade.

Code of national standard, or industrial standard, or enterprise standard

for the production.

Special contents if there are any (e.g. irradiated food).

On the label, ingredients such as herbs or sugar must state specific types. Label

verification from CQIS usually takes one to two weeks. This process is generally

handled in conjunction with the importer or distributor, due to language issues

and the need for cooperation with CQIS.

25

Chinese Organic Standards

In 2005, the Chinese Government implemented its own organic standards. The

regulation is divided into four parts:

Production

Processing

Labelling and Marketing

Management systems

The regulations are jointly issued by the Standardization Administration of China

(SAC) and AQSIQ.

Some key points relating to labelling of organic products are as follows:

The use of ‘organic’ and the mark of China Organic Product Certification

can only be used for products produced and processed according to

national organic standards, unless the use of ‘organic’ is unrelated to the

production process and practices.

Products without organic product certification cannot use the label of

organic production certification.

The labelling and organic production certification labels of imported

products shall also conform to these standards.

Therefore, even though a product may be certified organic in their home country

or in other markets, they will not be allowed to use ‘organic’ terms on their

packaging unless they receive Chinese certification.

In 2011, the National Standards for Organic Products were modified. The new

standard GB/T19630-2011 and its implementation came into effect on 1 March

2012.

Major changes in the new implementation rules of Chinese Organic Standards

with reference to the fish industry include:

The standards require zero-tolerance of residues.

If products come from a cooperative group, that is to say, from different

farms, each farm needs to be inspected.

Once a product receives the organic certification, it will be assigned an

authentication code. Consumers can use this code to check whether the

product is truly certified organic. Each SKU will have a code.

This law was previously in place but erratically enforced. There has been an

indication of stricter implementation of the regulation since November 2011.

Some companies were told to remove the English term ‘organic’ from their labels.

Enforcement of the regulations is complicated and several agencies are involved.

At the port of entry the CIQ are responsible for stopping products marked

‘organic’ without Chinese organic certification. In such an incident, the importer

will be required to mark off or remove the organic seal or any other words or

26

references. After importation, the local Business Bureau can remove products

that not meet standards or rules.

Cost of Certification

Certification costs can vary as cost is determined by the process of inspection.

There if a variety of lab tests are required it will increase the cost of certification.

On average a product can cost up to $3,200, however, for more tests required

will add to costs. In addition to this cost, companies wishing to seek organic

certification will have to pay for the travel and accommodation of Chinese

inspectors to inspect their suitability.

Organic certification needs to be renewed each year. Fees however, are reduced

by nearly a third during the re-certification procedure.

27

4.5 Tips and Useful Links

Investors and importers in China should be aware of the diversity in the country.

China is not a single market but a mixture of small markets separated by

geography, culture, cuisine, demographics and dialects. Due to this diversity,

there is no foolproof method for achieving success in China, but there are

however some basic ways to improve the chances of success:

Build Relationships

Whilst China’s legal system has seen improvement over recent years, it remains

at times inconsistent and is still dependant on personal contacts and influence

(referred to as ‘guanxi’). Establishing a strong network in China is of paramount

importance for any company seriously considering investing in the country, and

will be invaluable if any future disputes arise.

Find a local partner and/or distributor

The success of an exporter is often dependant on their local partners. Building

relationships with distributors and suppliers can often be the fastest way to

success, as it allows exporters to tap into pre-existing networks. For larger

companies and companies with a long-term commitment to China, establishing a

representative office or a joint venture partnership may be worthwhile.

Be flexible

China is unpredictable and things can change very quickly. Keep an open mind

and be flexible so as to take advantage of any opportunities as they arise.

Do your research

Just because a product succeeds in one country there is no guarantee it will in

China. The same is also true for provinces within China. Avoid hinging your

success on targeting one niche of consumers and expect to adjust your marketing

strategies quickly to target new consumer groups. Ultimately, the best way to

predict the success of a product is to do thorough research and to test your

products directly.

Tailor your products

Chinese consumers have different demands and tastes to those elsewhere. Be

prepared to adjust your products to suit their expectations. Packaging,

particularly if the products are often sold as gifts, is very important and has quite

well established conventions. Labeling and flavours are other areas where

exporters can come unstuck.

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Leading Trade Organisations

China Society of Fisheries

www.csfish.org.cn

China Society of Fisheries (CSF) is a national organisation under the Ministry of

Agriculture which provides market information and advisory services to producers

and processors. CSF also works with exporters associations from other countries

to promote seafood in China through workshops and conferences in China.

China Aquatic Products Marketing and Processing Association

www.cappma.org

China Aquatic Products Marketing and Processing Association (CAPPMA) was

founded in 1994 as a national non-profit organisation directed under the Ministry

of Agriculture. CAPPMA consists of seafood producers, processors, distributors,

suppliers, and institutions for fisheries research and education, as well as relevant

social entities that provide various services for seafood processing and marketing.

China Chamber of Commerce of Import and Export of Foodstuffs, Native

Produce and Animal By-Products

www.cccfna.org.cn

The China Chamber of Commerce of Import and Export of Foodstuffs, Native

Produce and Animal By-Products (CCCFNA) is the national organisation under the

Ministry of Commerce (MOFCOM) for importers and exporters. Its meat and

aquatic products division works with processors and importers in the market to

promote the import and export of seafood and meat products.

29

Key Trade shows in China

The 8th Shanghai International Fisheries & Seafood Exposition

Dates: 10th- 12th October, 2013

Venue: Shanghai New International Expo Centre

Website: www.sifse.com

China Seafood Expo is one of the leading annual trade shows in China focusing on

the seafood sector.

18th China Fisheries & Seafood Expo

Dates: 5th-7th November, 2013

Venue: Dalian World Expo Centre

Webiste: www.chinaseafoodexpo.com

China Fisheries & Seafood Exposition is currently the biggest fishery and seafood

trade show in Asia.

SIAL

Dates：7th-9th May, 2013

Venue: Shanghai New International Exhibition Centre

Website: www.sialchina.com

SIAL is one of the largest food & beverage show with over 2,000 exhibitors from

over 40 countries.

Food & Hotel China

Dates:13th-15thNovember,2013

Venue: Shanghai New International Exhibition Centre

Website: www.fhcchina.com

Food & Hotel China is a leading trade show for food, drink, hospitality, food

service, bakery, and retail sectors in China.

30

4.6 Seafood Distributors in China

Sunkfa International Trade (Beijing) Co., Ltd

Founded in 1989, Sunkfa International trade (Beijing) Co., Ltd, is a specialised

seafood importer which supplies to high-end hotels and restaurants in China. It

operates through its distribution network and operations in Jingshen seafood

wholesale market in Beijing and Touchuan Lu market in Shanghai.

Beijing Baode Corp

Baode is a specialised meat and seafood distributor with offices in Beijing and

Shanghai. It supplies to hotels and restaurants in Beijing and Shanghai, as well

as distributing to individual households via an on-line shop.

Sun’s Seafood

Established in the late 1970s, Sun’s Seafood has become the leading distributor

of seafood from Australia, Indonesia, New Zealand and Canada. Sun’s Seafood

supplies to high-end hotels and regional seafood markets in China.

Rainbow Co Ltd

Beijing-based Rainbow Co is a seafood and meat distributor which operates retail

outlets in major wholesale markets in Beijing.

Tianjin Lifutong Food Trade Co Ltd

Tianjin Lifutong is a leading seafood importer in Tianjin. It supplies to the

catering industry in north China.

Beijing Oriental Sea-Tide CoLtd

Beijing Oriental Sea-Tide Co Ltd imports farmed Atlantic Salmon, Greenland

Halibut, Greenland Halibut head and tail, Skate wings, California Squid, Cuttlefish,

Grenadier, Female Caplin, Chilean seabass, and various kinds of shrimps.

Shanghai Yueyou Industry Co Ltd

Shanghai Yueyou Industry Co Ltd (Yueyou) specialises in the import of seafood

products. It is mainly engaged in the wholesale distribution of frozen seafood.

Yueyou’s major distribution channels include supermarkets, restaurants and

hotels. Its sales cover the Yangtze River Delta region of China.

Pan Fish (Shanghai) Co Ltd

Pan Fish (Shanghai) Co Ltd is a foreign-owned enterprise which has invested in

and built factories in China since 2000. Panfish’s main businesses are aquatic

products processing and marketing in Shanghai, Zhejiang, Jiangsu, Beijing and

other regions. The company supplies chilled, frozen, smoked, and wrapped fresh

seafood for Asia, North America and European customers. Pan Fish is capable of

serving the needs of hotels, supermarket chains, fast food companies and

Wholesalers.

Shanghai New Fishport International Co Ltd

Shanghai New Fishport International is engaged in the trade of seafood. The

company has set up many stable and long-term relations within the domestic

market. Shanghai New Fish port International also procures and sells green

seafood to many other customers in Canada, New Zealand and Australia.

Haizhixing Seafood

Haizhixing Seafood was established in 1997.The company is mainly engaged in

31

the import and export trade of ice fresh salmon aquatic products and has large

imports from Japan, Southeast Asia and many other overseas countries.

Shanghai Zhenzhi Food Co Ltd

Shanghai Zhenzhi Food Co Ltd is a limited liability company engaged in the

distribution and wholesale of seafood. Shanghai Zhenzhi’s main products include

silver pout, king crab, mackerel, squid, and Seabass.

Jinjun Marine Product & Food Co Ltd

Jinjun Marine Products & Food Co Ltd is an aquatic food supplier and trader. As a

member of the Alaska Seafood Marketing Institute, the company mainly produces

smoked salmon and smoked flounder as well as selling king crabs, oysters, fish

roe, mackerel, snow crab, basa fillet, red fish fillet and tilapia fillet. Jinjun Marine

Products & Food is capable of serving the needs of hotels, supermarket chains,

airlines and catering schools.

Forest Brothers Seafood Co Ltd

Forest Brothers Seafood has been engaged in processing and exporting seafood

since 1980. Their product range covers Talipia, Shark, Pike, Perch, Japanese

Seabass, Eel, Rainbow Trout and Shrimp. In recent years Forest Brothers Seafood

has been working with overseas suppliers to import a wide range of seafood

including ribbon fish, cuttlefish, yellow croaker, bonito tuna, sardines and squid.

GuangzhouAoxin Marine Products Co Ltd

Founded in 1992, Guangzhou Aoxin Marine Products Co Ltd is one of the leading

companies in the industry. They have established a comprehensive marketing and

sales network in major cities across China, which allows them to distribute to

hotels, supermarkets and catering companies. Aoxin Marine Products has

established long-term partnerships with Simgood Pty Ltd in Australia, Golden

Seafood Inc. in Canada and Me-Ca-Mei Seafood Inc. in the United States. They

are also a member of the Alaska Fishery Association in the United States and

have organised several events to promote their products. Aoxin Marine Products

is a member of the Guangdong Fishery Distributing and Manufacturing

Association.

Shenzhen Pengcheng Industrial Co Ltd

Founded in 1997 as a branch of Pengcheng (HK) Group, Shenzhen Pengcheng

Industrial Co Ltd provides live, frozen and dry aquatic products to high-end hotels

and restaurants. They have established partnerships with starred hotels and

guesthouses in Shenzhen, Dongguan, Huizhou, Zhongshan, Heyuan and Zhuhai

provinces. In 2006 Pengcheng was awarded the title of being one of ‘China’s Top

Ten Suppliers’ in the catering industry. Since its establishment, Pengcheng has

been cooperating with domestic and international suppliers to ensure their

products are of a high-quality and a reasonable price. At present, Pengcheng can

supply over 200 kinds of aquatic products, covering a variety of fish, shrimps,

crabs and shellfish. Pengcheng also own a transportation team to guarantee the

freshness of their products and a prompt delivery service.

Shenzhen Mingjifa Seafood Trading Co Ltd

Founded in 1996, Shenzhen Mingjifa started as a small-sized retailer and

developed into a large enterprise with more than 500 employees. Mingjifa is

engaged in the international trading of seafood and providing a diversity of

seafood to the domestic and international markets. Mingjifa has established a

sales network in the major coastal cities of China. They deal with live aquatic

products and frozen and dried seafood.

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5. CBBC RECOMMENDATIONS AND NEXT STEPS

Developing business relationships with companies in China requires frequent

communication and an ample investment of time. The key focus is to build

relationships and to understand each other’s businesses.

Increasing China Presence

CBBC recommends that companies interested in exporting to China attend

leading trade shows in China to meet with potential buyers in the market, and to

further their understanding of the supply structure and opportunities for aquatic

products. It will also provide a chance to see the level and type of competition

that currently operates in the market, as well as the different types of distribution

channels available. In section 4.5 we have listed some important trade shows for

2013:

• SIAL (7th-9th May, 2013)

• Food & Hotel China (13th-15th November, 2013)

• Shanghai Int. Fisheries & Seafood Exposition (10th-12th October, 2013)

• China Fisheries & Seafood Expo (5th-7th November, 2013)

It is also useful to stay in touch with the trade organisations that may help reach

out to their member companies or provide networking opportunities through the

conferences and events they organise. In section 4.5 we have listed three of the

China’s leading industry associations.

Making Contact with Chinese Distributors

In section 4.6 we have listed 16 Chinese distributors. CBBC recommends

Seafish’s levy payers seek to make contact with these distributors to establish if

there is demand for their products to be exported to China.

CBBC already has relationships with many aquatic product distributors in China.

UK Trade and Investment (UKTI) and CBBC will happily facility introductions to

trade organisations and potential distributors through the Overseas Market

Introduction Service (OMIS). For more details regarding what OMIS services in

China can do for UK businesses, please contact your UKTI or CBBC. The CBBC

sector lead for Agriculture, Food and Drink in China is Holly Chen, and in the UK it

is Claire Urry (claire.urry@cbbc.org). You could also contact your local UKTI

international trade advisor.

Promotional Activities

There have been some successful cases in which companies promote their

products via sales promotions within supermarkets, hotels and food festivals. For

example, the American Food Festival in autumn 2012 was used to successfully

promote US snow crabs, oysters, yellow sole fins. CBBC would be happy discuss

what similar promotional opportunities exist for UK seafood producers.

For further market information from Seafish Industry Authority, please contact

Malcolm Large from Seafish Industry Authority

CBBC would also be happy to answer any further questions you may have in

relation to the content of this report.

33

Kind regards,

Holly Chen

Consultant

China-Britain Business Council, Beijing Office

T: + 86 (0)10 8525 1111 ext 331

E: holly.chen@cbbc.org.cn

34

6. APPENDIX

Major Ports in China (marked with Red Dots)

Source: www.cifa.org.cn

35

CBBC Services

Launchpad A flexible, fast, cost-effective and low risk means for you to explore

the opportunities across China working from CBBC offices.

Representative Office CBBC can streamline the process of establishing a

representative office in China and provide you with support at every step.

CBBC Employment Services Helping you plan for and identify key management

staff for your business in China. Includes both a selection and advisory service.

Chinese Business Culture Training Programme Provides your team with an

awareness of Chinese culture and guidance on how misunderstandings can arise

and be overcome. Contact Charlotte Zhang for more information.

Translation & Interpreting Services Company Profiles and Business Cards

can all be translated into Chinese through this service and we will also arrange

qualified interpreters for companies visiting China.

Visa Invitation Service Can secure a visa notification form which will enable

you to apply for a single, double or multiple entry Business Visa for entry into

China.

Company Check Services will carry out a company check on your behalf

through the local branch of SAIC (State Administration of Industry and

Commerce). This will provide basic key information about a company.

Market Research & Analysis including sector reports, market initiatives,

regulatory environment and market opportunities. Contact the CBBC Research

team.

Identification of Local Contacts from agents, distributors, suppliers and

potential partners. Contact the CBBC team or speak to one of our China Business

Advisers.

In-market Activities from meeting arrangements, to event organisations from

workshops and seminars to promotional activities and product launches. Contact

your closest CBBC office.

Directory (Services& Manufacturers Sectors) to help bring clients and

product/service providers together, and to help raise the profile of our corporate

members amongst manufacturers, exporters, traders and investors.

Sourcing from China Training Training to give an understanding of the

purchasing process, from finding and approaching suppliers to receiving the

finished goods, CBBC has developed a half day seminar.