Parliament’s platform for discussions on all issues of importance to the bilateral UK-China relationship
Annual Report 2012-2013 All Party Parliamentary China Group Officers
Chair
Richard Graham MP
Deputy Chairs
Sir Tony Baldry MP – Tourism
Lord Clement-Jones – IP and Consultants
Rt. Hon. Lord Steel
Lord Wei - Hong Kong Sub Committee Chair
Vice Chairs
Alun Cairns MP – Financial Services
Nigel Dodds MP – Science and Technology
Nick de Bois MP – Trade (SMEs)
Duncan Hames MP – Environment/Climate Change
Mark Hendrick MP
Anne McGuire MP – Energy and Natural Resources
Madeleine Moon MP – Human Rights and Gender Issues
Neil Parish MP - Agriculture
Priti Patel MP – Education, Culture and Arts
Heather Wheeler MP – Trade (manufacturing)
Treasurer
Emma Reynolds MP
Secretary
Lord Cotter – Traditional Chinese Medicine
Co-ordinator
Faye Ye Contents
1 Chairman’s Statement
2 Mission Statement
3-4 2012-2013 Activities
5 Treasurer’s Report & Accounts for the year ending July 2013
6 Sponsors
Appendix 1
Trip Report - APPCG Visit to Beijing & Chengdu (19-24 May 2013)
Appendix 2
Trip Report - APPCG Visit to Hong Kong (17-21 February 2013) Chairman’s Statement
In a year of outstanding growth in Anglo Chinese business and inward investment, the APPCG was active in engaging with all aspects of the bilateral relationship. I thank all the APPCG officers, members and the sponsors of our group (Cambridge English Language Assessment, GKN, HSBC, John Swire & Sons, Arup and City of London) for their great support to our activities throughout the year. I am also delighted that we have taken on a new Co-ordinator, Faye Ye, who has made a very promising start.
At the AGM three officers will step down: Emma Reynolds, Nick de Bois and Nigel Dodds. I thank them all for their service and hope we will welcome successors from all their parties. The remaining officers will stand for re-election at the AGM.
The UK’s relationship with China is both important and growing. Increased students, tourists and trade both ways are the best indicators of that. Recent announcements of Chinese property developers ABP’s £1.2bn investment in the London Royal Albert Dock and Chinese conglomerate Wanda’s investment in London’s Nine Elms regeneration project are but the latest confirmation of a trend, and I anticipate great opportunities for investment in nuclear power shortly. The UK is now home to over 400 mainland Chinese companies and Chinese firms committed several billion pounds of investment in the UK last year.
The APPCG is committed to promoting discussions and understanding on all bilateral issues. We met with the new Chairman of the China-UK Friendship Group of the National People’s Congress, Dr Zhao Baige in Beijing and will welcome her and the NPC group in September this year. Deputy Chairman, Lord Wei also led a very good visit to Hong Kong in February sponsored by the Hong Kong government.
More meetings are being planned for the Autumn on the subjects of Tourism, IP, Energy, Creative Media, Environment and Airport & Aerospace and we welcome suggestions for other meetings and visits. I will also lead another delegation to visit Shanghai in October. Please continue to support our work and let us plan a good programme of visits to China and Hong Kong in 2014.
Richard Graham MP 3 July 2013
1 Mission Statement The All Party Parliamentary China Group’s mission is to act as parliament’s platform for discussions on all issues of importance to the bilateral UK-China relationship.
All Party Parliamentary China Group
The All Party Parliamentary China Group was established in 1997 to widen the parliamentary contribution to the general UK-China bilateral relationship. We exist as a platform for discussions on all issues of importance to the bilateral relationship and welcome ideas to enhance this.
Parliament and the National People’s Congress
The APPCG seeks to strengthen the relationship between Parliament and its legislative counterpart the National People’s Congress. In particular, the APPCG’s activities provide a valuable opportunity to increase crossparliamentary dialogue and develop understanding between the two legislatures, as well as facilitating discussion and exchange of ideas on topical issues.
The APPCG has a counterpart organisation in the National People’s Congress in the form of the China-UK Friendship Group. In 2006 a Memorandum of Understanding was signed to consolidate the relationship between the two groups, and since then there have been regular exchanges to facilitate closer dialogue and deepen knowledge and understanding.
Richard Graham MP, Alun Cairns, Alok Sharma MP and John Spellar meeting Madam Fu Ying and Madam Zhao Baige in Beijing, May 2013 Richard Graham MP meeting Madam Zhao Baige, Chairman of the China-UK Friendship Group (NPC) in Beijing, May 2013 2 2012-2013 Activities
2012
12 September HKETO SME Seminar & Reception 18 October Meeting with Simon Lever, Consul General in Chongqing 29 October Roundtable discussion and launch of the government’s latest six monthly report on Hong Kong 30 October Breakfast meeting with CBBC 1 November Meeting with CBBC - investment opportunities & the work of the CBBC 12 November Meeting with Carrie Lam, Chief Secretary of Hong Kong 19 November Roundtable on Chinese Leadership changes with FCO, Steve Tsang, China Policy Director at University of Nottingham and James Kynge from the FT 19 November Joint meeting with Zimbabwe Diaspora Focus Group and Africa APPG: Rebuilding Zimbabwe: Does China offer a better development model than the West? 20 November Seminar & Reception with China Britain Youth Dialogue on creative industries 5 December Meeting with John Slosar: The story of Cathay Pacific Airways and the importance of East Asian Aviation 13 December Meeting with Zha Peixin, Chair of the NPC China UK Friendship Group and Former Ambassador to the UK - What the Leadership Changes mean to China 2013
w/c 14 January Visit to China for Leadership Forum and meeting with NPC 22 January Dinner with His Excellency the Chinese Ambassador 31 January Meeting with Nigel Milton from Heathrow to discuss connectivity with China 3 5 February APPCG Chinese New Year Reception 17-21 February Visit to Hong Kong 26 February Meeting on Education: Exporting Education 18 March Meeting on Social Media with FCO 18 March Meeting on RMB Finance 19 March Meeting on Human Rights with FCO 20 March APPCG - Hong Kong Association Dinner 14 May APPCG-IOD Dinner 18-24 May Visit to Beijing & Chengdu 20 June FCO Human Rights Briefing 21 June Visit to Bicester Village 24 June APPCG - HSBC Dinner 4 July Seminar on Opportunities for UK Businesses in Chengdu 9 July AGM 9 July The Threats to China's Future - Talk by Timothy Beardson
From left to right: Duncan Hames MP, Emma Reynolds MP, Lord Cotter, Heather Wheeler MP, Richard Graham MP, HE Chinese Ambassador Liu Xiaoming, Lord Clement- Jones, Lord Wei, Caroline Emery & Faye Ye
APPCG - Hong Kong Association Dinner APPCG Meeting on RMB Finance APPCG 4 Treasurer’s Report
The All Party Parliamentary China Group has raised £54,178.49 in sponsorship in 2012-2013, and, against the total spending it has produced a surplus of £32,054.60. The six sponsors have given wonderful support to APPCG; without them much of our work would not be possible.
The accounts have been well managed and finances remain healthy.
Emma Reynolds MP Treasurer 3 July 2013
Accounts (September 2012 - June 2013)
Expenses Total £22,123.89
Income Total (Sponsorship) £54,178.49
Current Balance in Bank £82,232.12
5 APPCG Sponsors
6 Appendix 1
APPCG Beijing & Chengdu Trip Report (19-24 May 2013)
Richard Graham MP, Chairman of the All Party Parliamentary China Group, led a delegation of five parliamentarians and one staff to Beijing and Chengdu in May 2013. The delegation consisted Alun Cairns MP (Vice Chair of the APPCG), Baroness Falkner, Alok Sharma MP, John Spellar MP, Faye Ye (APPCG Coordinator),as well as Richard Graham MP. For three members of the delegation, this was their first visit to China.
Aims and objectives
To provide an opportunity for APPCG members to experience China in order to gain first hand knowledge about the country
To promote UK-China bilateral relations
To strengthen the link between the APPCG and its counterpart organisation, the China-UK Friendship Group in the National People’s Congress
Key Activities
20 May - Meeting with the All China Youth Federation (Beijing)
APPCG members carried out a lively Q&A session with a group of 20 Chinese university students. A wide range of topics were covered including Hong Kong, UK politics, UK-China relations, Education, Visa issues and Social Media. Members were very pleased with the openness of this discussion.
The All China Youth Federation was established in 1949. It is a federation of Chinese youth organisations with the Communist Youth League of China at its core. Former Presidents and CPC General Secretaries Hu Jintao and Jiang Zeming were both members. 20 May - Visit to ABP’s headquarters in Fengtai (Beijing)
Members visited ABP’s headquarters in Beijing and listened to ABP Chairman Xu Weiping’s introduction on ABP’s Royal Albert Dock project.
ABP is a Chinese property developer and has recently signed a deal with the Great London Authority investing £1bn in London’s Royal Albert Dock to transform London’s historic docklands into the capital’s next Asian business district for financial, high-tech and knowledge-driven companies who seek to establish their business in the UK and European markets. The deal represents one of the first direct investments by a Chinese developer in London’s property market.
21 May - Meeting with Dr Zhao Baige at the National People’s Congress (Beijing)
The delegation had a warm and constructive meeting with Dr Zhao Baige, the new Chairman of the China-UK Friendship Group which is APPCG’s counterpart organisation in the National People’s Congress.
APPCG Chairman, Richard Graham MP, and Dr Zhao Baige exchanged ideas on how APPCG and the China-UK Friendship Group could best work together. Richard suggested six subjects for future exchanges between the two groups: Culture, Economics (standard of living & social welfare), Political Issues, Social Media, Environment and Rule of Law. Dr Zhao also showed a strong interest in resuming the annual exchange meetings and in leading a delegation of China-UK Friendship Group members to visit London in September.
Dr Zhao Baige spent five years studying for a PhD at the University of Cambridge in the late 1990s and has previously worked at the National Population and Family Planning Commission and Ministry of Science and Technology. She is currently the Executive Vice President of the Red Cross Society of China.
21 May - Lunch with Madam Fu Ying at the National People’s Congress (Beijing)
After the meeting with Dr Zhao Baige the delegation was invited to lunch with Madam Fu Ying, Chairman of the Foreign Affairs Committee at the NPC. Further exchanges were carried out on UK-China bilateral relations and what the UK Parliament and the NPC could do to promote understanding between the two countries. 21 May - Visit to Sunshine Halfway House (Beijing)
The “Sunshine” Halfway House went into operation in 2008 as part of the Minister of Justice’s social innovation programme to manage discharged prisoners and those serving community sentences. Its main activities can be grouped into three areas: training in legal knowledge, social integration capacities and vocational skills; psychological counselling and employment support; and provision of temporary accommodation.
After almost five years, the MoJ is disseminating this practice nation-wide. For example, now all 16 districts of Beijing have set up their own Halfway Houses. By the end of January 2013 there have been 616 such institutions set up in China.
(Right) One of the consultation rooms
22 May - Meeting with Nick Feast, General Manager, Shell Shale Gas (Chengdu )
Shell received approval in March this year from the Chinese government for the company’s first shale-gas production-sharing contract in China, a significant milestone as China looks to tap potentially massive shale gas reserves.
The delegation heard that the exploration is still at its very early stage and a lot of work is yet to be put in before any return in real commercial terms. 22 May - Visit to Diageo Shuijinfang Factory (Chengdu)
Between 2007 and 2011, Diageo bought a controlling stake of 53% in the Quanxing Group that owns the Sichuan baijiu brand “Shuijingfang”. Since the partnership was formed, Diageo is committed to bringing Shuijingfang, a superpremium CWS brand, to international markets. Shuijingfang is now available in the duty free channel at forty airports and on two airlines worldwide and also in seven domestic markets.
APPCG delegation visited the Shuijinfang factory and listened to Diageo’s introduction on the joint venture.
(Above) Richard Graham MP with factory workers
(Left) Shuijingfang’s bottling line
The Brewery Comments from members of the delegation
“The visit was fist class in highlighting the opportunities that exist in China. Shanghai and Beijing are mature markets by now but the scale of growth in Chengdu offers great prospects for UK Businesses and Universities. I have already been in contact with Cardiff University to facilitate the development of links with the Life Science Park.
There was also an important role to play in seeking to support the development of an improved relationship between the UK and China.”
Alun Cairns MP Vice Chair, APPCG
“The visit was extremely well timed to coincide with the appointment of the new Chairperson of the UK-China Friendship Group of the National Peoples’ Congress, with whom we had fruitful discussions. From a formal setting to having a free ranging discussion with students from a number of Universities also gave us an insight into the views of young people in China today.”
Baroness Falkner
Summary
During this visit the delegation also met with members of the China Britain Business Council, Mr Yu Wei, Chairman of Chengdu People’s Commission, Mr Jiang Zhigang, Director of the China Development Bank, and joined the celebration of the Queen’s Birthday at a reception held at the British Embassy in Beijing.
Overall this visit gave members a good update of current issues for both China and British businesses. The APPCG is now planning another visit to Shanghai in October. Following this trip, a seminar on ‘Business Opportunities in Chengdu’ was organised and nearly 90 members and guests from the business sector came. The details of the 5th exchange meeting between APPCG and China-UK Friendship Group is being finalised. Appendix 2
APPCG Hong Kong Trip Report (17-21 February 2013)
The APPCG sent a Delegation of parliamentarians, at the invite of the Hong Kong Government in February, to visit and learn about Hong Kong.
This year, the Delegation was lead by Lord Wei who is the Chair of the Hong Kong sub-group of the APPCG. He was accompanied by Lord Northbrook, Simon Danczuk MP, Graham Evans MP and Jim Sheridan MP.
The Delegation met with the following individuals & organisations:
1. Mrs. Carrie Lam, Chief Secretary for Administration 2. The Hon. Geoffrey Ma, Chief Justice of the Court of Final Appeal and the Chief Judge of the High Court 3. Mrs. Cherry Tse, Permanent Secretary for Education 4. Mrs. Mary Leung, Deputy Director of Information Services 5. Mr. Patrick Ho, Deputy Secretary for Financial Services and the Treasury 6. Mr. Eric Chan, Director of Immigration 7. Ms. Julie Mu, Director of Community Relations, Independent Commission of Against Corruption (ICAC)
Members of Legislative Council (not from the governing party)
8. The Hon. Emily Lau 9. The Hon. Ronny Tong 10. The Hon. Dennis Kwok 11. The Hon. Martin Liao 12. The Hon. Alan Leong 13. The Hon. Charles Mok 14. Officials from CreateHK 15. Officials from the Innovation and Technology Commission 16. Ms. Caroline Wilson, Consul-General, Consulate General of the United Kingdom in Hong Kong 17. Members of the British Chamber of Commerce 18. Members from Vision 2047 19. Members of the British Council and various British & Hong Kong educational providers 20. Staff of the Consulate General of the United Kingdom in Hong Kong
The highlights of the Delegation were:
The Delegation learnt from the Information Services Department who affirmed that having a free press and joined up approach to communications in government with an emphasis on promoting Hong Kong allows her to have a distinctive brand identity.
The Financial Secretary highlighted how the unique, if even fragmented, regulatory regime in HK builds in trusted relationships and conservative approaches rather than structural innovation and highlighted reforms around pensions and savings which seemed to balance the need for fiscal responsibility with having some kind of basic safety net for its people.
The Delegation were special guests at the residence of the Chief Secretary Carrie Lam, who gave wide ranging insights on how Hong Kong plans to tackle domestic issues such as poverty, youth unemployment and the cost of housing, and the measures to grow creative and other industries to boost job creation. There was a discussion on how immigration is also now a big issue with the domestic helpers’ legal ruling due soon which could allow all domestic helpers in Hong Kong to have a right of abode after a certain amount of years of working in Hong Kong. The Chief Secretary also shared her Administration’s views on how universal suffrage could be introduced after domestic measures are taken or political differences are bridged in their Legislative Council.
The meeting with Ms. Caroline Wilson, our Consul-General, highlighted the big value opportunities in Hong Kong available to British companies and the discussion focused on need to encourage more firms to connect at supply chain and tendering level. A point of surprise for the Delegation was to learn that Britain is technically behind France and Germany in exporting to Hong Kong, despite its strong colonial, financial services and legal links. However, the Delegation was informed that this could be down to the fact that Britain’s services export are not always included or ‘captured’ by the trade figures.
The Chief Justice also met with the Delegation and provided insights into how the Final Court of Appeal works in Hong Kong and how her basic law meant that legislation could be judged unconstitutional and only changeable by the National People’s Congress (NPC) and the Standing Committee who are based in Beijing, China. That withstanding, the legal system of Hong Kong and her court system still share strong similarities with the legal system of England & Wales. One thing that was highlighted by the Chief Justice was that the Final Court of Appeal (of 5 judges) always has at least one international (and usually Commonwealth) judge sitting on it. This was to provide assurance to the international community that the laws of Hong Kong are transparent and fair. The Deputy Chief solicitor spoke about how HK's law remains fairly basic compared to modern day complexities.
The Permanent Secretary for Education and her team spoke about the need to introduce holistic development and take a long term view of change with measures to make teachers and leaders more reflective and help pupils develop softer skills having established the basic core principles.
The Design Centre showed how HK was committed to supporting creative industry development with an incubator for design orientated startups with free/subsidised rent and access to facilities.
The LEGCO meeting was with ‘opposition’ parties who individually highlighted concerns about the British Parliament not taking notice of what is happening in Hong Kong, the UK government not reporting or criticising undemocratic activities by the HK government enough in the 6 monthly reports and that work still needs to be done in order to improve democracy in Hong Kong. The Delegation took the view that there was an impression given by these parties that they are in protest mode and are not yet accustomed to the compromises that are required for a party of government.
Foster and Partners gave a presentation of the new Kowloon district, highlighting the sustainable nature of the development and the need to define how it will help provide a refuge from the busy city whilst blending in and being an attractive destination both culturally and in terms of city life.
The Immigration Department impressed the Delegation with their use of state of the art technology to deal with increased visitors to Hong Kong from air, sea, and land. The Delegation was very impressed by their use of electronic gates to handle queues at the border and they seem to be leading the world on this. The Department also mentioned the challenges that existed with some mainlanders coming to use Hong Kong's hospitals to give birth and to have children who would become Hong Kong citizens. They were awaiting clarification on laws regarding the status of such children and of domestic foreign workers and had to use administrative work abounds until the law was clarified. An example of such a law is requiring pregnant women to have letters from HK hospitals before allowing them entry.
The Independent Commission Against Corruption (ICAC) gave the Delegation an overall insight into how the use of prevention and education was a key means to tackle corruption in addition to investigations, and indicated that there was real interest on the Chinese side in developing these areas which included popular television programmes to highlight how corruption was detrimental to people's lives, albeit the HK body was more independent than its mainland counterpart.
There was a lunch with the Constitutional and Mainland Affairs Department during which there was a discussion about how to get the balance right between changing the constitutions and maintaining stability. This lunch also discussed how Hong Kong has developed a hybrid constitution so far that mixed certain features of mainland Chinese cities' governance with non multi-party driven participation and that western multi-party models with the kinds of tools that can help government get legislation through such as whips and the promise of ministerial posts are not the current source of inspiration.
The Delegation also met with the British Chamber of Commerce where there was a roundtable discussion on how a different model is required to grow the British economy by importing and exporting talent and facilitating M&A activity that builds cross border value chains from places like Hong Kong. Richard Graham MP (Chair of APPCG), Rt Hon Hugo Swire MP (Minister of State for the FCO), HE Chinese Ambassador Liu Xiaoming, with APPCG sponsors at APPCG 2013 Chinese New Year reception
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