CBBC Sector Initiatives & Highlights

www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking

Tech & Digital

2

Market Overview - Digital Environment in China (1/3)

The Internet penetration rate reached 53.2% in 2016, up 2.9 percentage points from the previous year.

China’s online retail market was estimated to have reached $750 billion in value in 2016, and is expected to reach $1.7 trillion by 2020

95% of all internet users in China access the internet from mobile

devices and China has the largest global market for 4G services

Market drivers: growth in consumption, policies to stimulate innovation for industry & Smart City construction

China’s Internet industry is dominated by three main players: Baidu, Alibaba, and Tencent (BAT)

Sources: The China Internet Network Information Center, National Bureau of Statistics, China Business Handbook 2017/18

China had 731 million internet users at the end of 2016, and an

estimated 460+ million online shoppers

Opportunities in sensors/hardware, Telecoms, Internet-of-Things (IoT), Cloud computing, Big Data analytics, App Development, Enterprise

Software, Fintech, & Retail tech

3

Market Overview - Digital Environment in China (2/3)

Sources: Forrester Research, The China Internet Network Information Center, National Bureau of Statistics, China Daily

0

200

400

600

800

1000

1200

14 15 16 17E 18E 19E 20E

Online Retail Spending

Unit: $ billion

442.2

1132.8

0

200

400

600

800

14 15 16 17E 18E 19E 20E

Online Buyers

Unit: million

362.6

639.1

Number of Internet Users

& Mobile Internet users

Unit: million

Internet Penetration Rate

Unit: %

38.3%

2011

42.1%

2012

45.8%

2013

47.9%

2014

50.3%

2015

70%

2020E

Proportion of Chinese

Companies Conducting

Online Marketing Campaigns Unit: %

513 564

618 649 688 731

355.6 420

500.1 556.8

619.8 695

0

200

400

600

800

2011 2012 2013 2014 2015 2016

Internet Users Mobile Internet Users

24.20%

38.70%

0%

10%

20%

30%

40%

2011 2012 2013 2014 2015 2016

53.2%

2016

4

Market Overview - Government Policy in the Tech & Digital Sector (3/3)

Source: The 13th Five-Year Plan (2016-2020)

The New Five Year Plan (2016-2020) emphasises technology, innovation and entrepreneurship.

Internet Plus, 4G telecom technology and Digital Silk Road are among the key investment fields

Internet Plus

Policy

China’s flagship policy for harnessing the power of digital across all industry sectors,

including a five year plan to upgrade China’s domestic network infrastructure, enhance

the country’s digital capabilities and position itself as a global digital powerhouse

13th Five Year

Plan (2016-

2020)

Innovation-driven development is a key pillar of the 13th Five Year Plan, which aims to

make core breakthroughs in information technology, investing heavily in Internet of

Things (IoT), Cloud Computing and Big Data

Belt and Road

Initiative (BRI)

Initiative to improve trade links across Central Asia & Europe and develop trade routes

to open up new markets. BRI will also look to develop a digital silk road – with

investment in a new 4G network to facilitate digital trade across the region

. Made in China

2025

China’s strategy to become a more sophisticated modern manufacturer. Innovation

lies at the heart of ‘Made in China 2025’. The policy will lead to greater adoption of

tech in manufacturing industries, such as robotics, sensors, software, IoT etc.

5

Tech & Digital Sector - Keeping members up-to-speed with China’s

fastest-changing & most dynamic sector

Flagship Missions

Guangdong Economic and

Trade Cooperation

Conference – Technology

Innovation Workshop

UK Trade Mission to

Guiyang Big Data 2017

Expo & Big Data Mining

Competition

Extensive Network

Tech UK

Cambridge Wireless

Tech London Advocates

Chinwag

Flagship Events

UK-China Technology

Forum

China Outbound

Conference – Breakout

Session on Innovation and

Technology

Reports & Infographics

CBBC/EU SME Centre China

ICT Market Report

CBBC/EU SME Centre Smart

Cities Report

The Gaming Industry in China

China's Mobile Payments

Landscape

CBBC currently has over 50 member companies in the Tech & Digital sector. We have assisted

hundreds of tech companies looking to do business in China

Note: for more information - http://www.cbbc.org/sectors/ict/

CBBC provided a series of key offerings, including flagship events, flagship missions, reports

on key topics and access to an extensive network of partners and member companies

6 Note: for more information - http://www.cbbc.org/whatson/events/

Jun

Nov Jointly hosted by CBBC and DIT

in association with the

Technology is Great initiative,

this forum and networking event

provided attendees with the

opportunity to learn more about

the Chinese technology sector

and partnership opportunities

brought about by innovation and

entrepreneurship (2016).

China

UK-China

Technology

Forum

(London)

As part of this annual flagship

CBBC event, CBBC organised a

breakout session to explore the

investment environment for

innovation and

technology in the UK, in respect

of technologies sought by China,

intellectual property, incubation

and set-up support (2016).

China Outbound

Conference -

Breakout Session

on Innovation and

Technology

(Shanghai)

Flagship Events - CBBC arranged a series of events to promote China-UK

cooperation in the Tech & Digital Sector

UK

The forum featured presentations from representative of

Xiaomi TV, Inspur Group, China Wisesoft and Alicloud

and a panel discussion involving Xiaomi, Huawei,

Pingwest and Sensewhere.

The session was chaired by Prof. Chris Rudd, Pro Vice

Chancellor & Provost, The University of Nottingham

Ningbo China.

Other panellists included representatives of CBBC

member companies such as Potter Clarkson and

Racepoint Global.

7

China to UK Flagship Missions UK to China Flagship Missions

Note: for more information - http://www.cbbc.org/whatson/events/

May

UK Trade Mission

to Guiyang Big

Data 2017 Expo &

Big Data Mining

Competition

(Guiyang)

Guangdong Economic

and Trade Cooperation

Conference - Technology

Innovation Workshop

(London)

In association with the Science,

Technology and Innovation

Commission of Shenzhen, CBBC

held a Technology Innovation

Workshop to highlight

opportunities for cooperation and

growth (2017).

CBBC supported this DIT delegation

which visited Guangzhou and Shenzhen

before finishing at the China

International Big Data Expo in Guiyang.

UK companies had the opportunity to

meet with buyers and influencers and

also to understand how the big data

market in China is evolving (2017).

Flagship Missions - Providing UK companies routes to the China market

through high-profile delegations and promoting bilateral cooperation

Jun

Mark Hedley (pictured above), CBBC’s ICT Sector

Director, provided an introduction highlighting key

themes and industry trends.

Representatives of a range of other organisations also

contributed, including government departments,

TechUK, University of Central Lancashire; Huawei UK;

AstraZeneca; and Shenzhen University.

The Workshop was part of the overall Conference which

was organised by CBBC to welcome a high-level

delegation of official and business representatives led by

the Party Secretary of Guangdong province.

Delegates also had the opportunity to take part in the the

China International Big Data Mining Competition 2017,

providing a platform from which to forge new

connections with potential partners and customers.

Delegates included such CBBC members as BT, Relx

Group, Dunnhumby, UCL, University of Edinburgh and

Modo Systems.

CBBC has produced a number of reports, providing key information

on the rapidly changing Tech & Digital sector in China

CBBC/EU SME Sector Report -

The ICT Market

Follow us on social media for our latest work in 2017

CBBC has published a series of reports and Infographics on China’s Tech & Digital sector:

Note: for more information - http://www.cbbc.org/services/resources/china-reports/

China's Mobile Payments

Landscape

The Gaming Industry in

China

CBBC/EU SME Sector Report –

Smart Cities in China FOCUS Magazine

8

9

CBBC serves a wide range of member companies from across the

Tech & Digital sector

CBBC is a membership organisation that has helped thousands of companies succeed in the

China market. Within the Tech & Digital sector, some of our members include:

Note: for more information - https://portal.cbbc.org/member-directory

Within the Tech & Digital sector, some of our partners include:

10

CBBC has helped UK Tech & Digital companies to access the full

potential of the fastest growing market in the world

Paragon Software Systems - Business Development Support (BSS)

“China presents a huge opportunity for the Paragon

business. Our routing and scheduling solutions have

been proven to deliver benefit to a wide range of

transport operators around the world. Our work with

the CBBC has been instrumental in helping us

understand the Chinese market so that we can make

the most of what this exciting and diverse market has

to offer a business such as ours,”

William Salter, Managing Director,

Paragon Software Systems

Background: Transport

logistics optimisation

specialists Paragon

approached CBBC for

assistance in

understanding

opportunities in the

Chinese market

Results: commissioned a Business Support

Services (BSS) project with CBBC to understand

local policies regarding transportation and fulfilment

in China, as well as to better understand the market

for its software solutions

o CBBC undertook extensive qualitative research

into China’s transportation market, conducted

interviews with 10 relevant companies and

established organisations, provided guidance on

local regulations for logistics companies

o Based on our research and analysis, CBBC

proposed market entry strategies and helped

reaffirm Paragon’s vision to further expand into the

market

Note: for more information - http://www.cbbc.org/case-studies/

11

A dedicated team of over 130 staff in 11 offices in the UK and 15 strategic

locations around China

Mark Hedley

Region: UK - London & South East

Industry: Tech & Digital

Email: mark.hedley@cbbc.org

Tel: +44 (0)20 7802 2018

Kirk Wilson

Region: China - North

Industry: ICT

Email: kirk.wilson@cbbc.org.cn

Tel: +86 10 8525 1111 ext. 707

CBBC Tech & Digital Sector Advisers

Note: for more information - http://www.cbbc.org/contact-us/find-an-advisor/

Click here to join CBBC membership

Tom Simpson

Region: China - North

Industry: Creative Tech

Email: tom.simpson@cbbc.org.cn

Tel: +86 10 8525 1111 ext. 323

12

Join us to access the Largest

China-UK Business Network