AI summit, Foreign Investment, and more coffee partnerships – China in 5

Welcome to China in 5! Each week,?we bring you up to speed with what’s caught our eye in the China-sphere in five(ish) minutes.?Grab a coffee, take a break, and dive in!

Britain invites China to its global AI summit

What’s the background? Britain has invited China to its AI summit in November, emphasising the need for global cooperation in addressing AI risks.?

Fact 1? Prime Minister Rishi Sunak aims for Britain to lead in AI regulation discussions, covering biosecurity concerns and public benefits like safer transport.

Fact 2 Despite recent concerns about Chinese activity in Britain and geopolitical tensions, Cleverly argues for deeper engagement with China, citing shared interests in areas like climate change and economic stability.

Fact 3 The UK government has appointed tech expert Matt Clifford and former senior diplomat Jonathan Black to lead preparations for the upcoming AI summit in November.

Amidst the complex landscape of rapidly advancing Artificial Intelligence (AI), the UK's decision to host the first major global summit on AI safety is a pragmatic acknowledgment of the need for inclusive discussions. In recognising the importance of involving China in these events, the UK takes a step towards a more balanced approach to AI-related challenges and opportunities, as well as prioritise on the ‘engage’ pillar where it is in the UK’s national interest. Positioned as the third global AI technology leader, following the US and China, the UK's move to include China in addressing AI's global issues is indicative of the collaborative, albeit cautious, global effort required in navigating the complexities of AI ethics and safety. While the business community has advocated for increased engagement, it remains vigilant, understanding the complexities and geopolitical considerations surrounding such discussions. The summit underscores the UK's commitment to creating an environment that accommodates innovation and technology, and acknowledging the need for a measured approach in a subject that carries significant implications for our collective future. – Rachel Tsang , Managing Director

From central to local: Beijing pushes foreign investment

What's the background? Last week, the Beijing municipal government released a new draft opinion on the city's foreign investment regulations. It stressed the need to establish and improve a diversified foreign investment promotion system, strengthen the overall planning of the city's investment promotion work and city-district coordination, and expand investment channels.

Fact 1 These new draft regulations promote the sharing of information and data by using the Beijing Municipal Government Information Resources Sharing and Exchange Platform. Information and data about development and reform, commerce, market supervision, statistics, finance, taxation, investment promotion, trade promotion and other will be shared regularly by the city government to stimulate market trust and development.

Fact 2 The regulation encourages foreign enterprises to develop green and low-carbon strategies. Green projects and low-carbon initiatives will benefit from incentives to stimulate their development.

Fact 3 Beijing's city government is also actively attempting to court more international businesses to set up regional headquarters in the city, or to designate their Beijing branch as their Asia-Pacific headquarters.

Many measures from the Beijing government?– like ensuring foreign enterprises' participation in government procurement and in the formulation of standards setting – are consistent with the requirements of the 24-point guidelines for attracting foreign investment issued by the State Council earlier this year. However, there are still some areas that need to be clarified like the criteria and qualifications of a qualified enterprise. We will follow the measures closely and look forward to the implementation of the policy from the Beijing government. – Yiyi Jing , Government Affairs and Advocacy Manager

Coffee break read – Lavazza expands in China's thriving coffee market

Why we like it: Coffee has taken the China market by storm, proving extremely popular not only in China’s tier 1 metropolises but expanding beyond into tier 2 and 3 cities too. Lavazza, by mid 2023, had 100 outlets in 11 major Chinese cities after entering the market in 2020. In 2020, China’s coffee market was valued at 82 billion yuan and is set to grow 22% in the next five years and surpass 219 billion yuan by 2025. During a time where business sentiment has been overridingly cautious, the coffee market has shown opportunity and solid resilience throughout the pandemic. Lavazza’s partnership with Yum China has flourished since opening their flagship store in Shanghai and whilst e-commerce drives the majority of its success, leveraging retail as a secondary vehicle for growth has proved successful for establishing the brand’s position in key consumer segments.

Podcast of the week: Middle class in China and US fear using their status

Why we like it: This podcast from the South China Morning Post takes a deeper dive into how middle-class spenders are tightening their belts in both the US and China. Considering issues such as demographic changes, reshaping of attitudes towards higher education, and economic pressures, the podcast takes a look at how the middle classes on both sides of the Pacific are changing – both in terms of their make-up, as well as their spending habits. With worries on both sides that post-Covid economic challenges might stick around for longer than expected, it also looks at how the two nations' governments and businesses are working to lessen the impact of this important demographic shift.

And finally...

We're wishing all our readers a happy Mid-Autumn Festival! The festival – which is on September 29th this year – symbolises what is thought traditionally to be the brightest and fullest moon of the entire year. It's one of the most important traditional festivals of the Chinese calendar, second only to Lunar New Year in its importance as a time for family reunion and celebration. 中秋节快乐！Happy Mid-Autumn Festival!

Thanks for reading China in 5! We want to hear what you think about this new initiative from the British Chamber of Commerce in China. Have thoughts about what you'd like to see, suggestions for our coffee break reads, or a favourite podcast you want to share? Let us know below, or reach out via our website at?britishchamber.cn.

We'll be back on 11th October with the next edition of China in 5. Enjoy the Mid-Autumn Festival and National Day holiday!