FOCUS (focus.cbbc.org) is the content platform of The China-Britain Business Council (CBBC). In this series of articles we will regularly share the top selections from FOCUS with our followers on WeChat.
Why is China raising its retirement age?
China has finally raised its retirement age, bringing it in line with neighbouring countries Japan and South Korea – here's what that means for the economy.
The Standing Committee of the National People’s Congress, China’s top legislative body, announced on 13 September 2024 that the country would gradually increase the retirement age for men from 60 to 63, for women in white-collar jobs from 55 to 58, and for women in blue-collar jobs from 50 to 55. The adjustments will be gradually implemented over a 15-year period starting from January 2025.
The primary driver behind this policy shift is China’s rapidly ageing population. The country faces a shrinking workforce and a growing number of retirees, putting pressure on its pension system, as well as the elderly care system.
The results of China’s latest census in 2020 showed significant population ageing, with people over the age of 65 accounting for 13.5% of the Chinese population, an increase of 4.6% from the 2010 census. Birth rates are also falling, putting further strain on the population.
By raising the retirement age, China hopes to alleviate some of the financial strain on its pension system by bolstering the working-age population.
In 2020, China’s Social Security Administration predicted that its pension fund could be depleted by as early as 2035 unless remedial measures were taken.
Indeed, in addition to raising the retirement age, China also announced that the minimum number of years needed to pay into a pension will increase from 15 to 20 years (which will come into effect in 2030).
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The rise and rise of social commerce in China
Social marketing via platforms like Douyin and Xiaohongshu can be much more effective than more traditional search engine marketing – here's why
The last few years have seen the rapid growth of “social commerce” in China, a term that refers to the integration of shopping into social media platforms. China’s social commerce revolution has been led by Xiaohongshu (also known as Little Red Book) and ByteDance’s Douyin (China’s version of TikTok).
Traditional e-commerce on platforms like Taobao/Tmall, JD, Amazon or Rakuten depend on search-based journeys —consumers actively seek out products through search queries. This model relies on pre-established consumer intent and the consumer’s ability to navigate through extensive product listings.
Imagine a Chinese consumer who wants to buy protein powder – they will search for protein powder on Tmall, browse different products and prices, and ultimately make a purchase. Search engine marketing is thus essential for protein powder brands so that their product appears near the top of the search results. Cross-media campaigns stimulate demand for protein powder and help consumers to recognise a brand – but it is difficult to accurately attribute sales to these campaigns.
However, in the last few years, two of China’s most prominent social platforms – Douyin and Xiaohongshu – have introduced e-commerce functionalities creating a “preference-based” rather than search-based e-commerce model.
These two platforms offer brands highly sophisticated tools to reach and convert target consumers.
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How Wales is attracting Chinese investment
For Chinese investors, Wales not only boasts more direct access to decision makers and a welcoming population, but great tech opportunities too
Are there any sectors that Wales is specifically targeting from China?
Every incoming business is vital to us. And we do everything we can to help, be it large companies setting up advanced manufacturing or assembly plants, medtech companies looking to partner with leading Welsh research institutes or renewable companies looking to invest and get access to the local supply chain opportunities. As a small country, Chinese incoming companies will have more direct access to opinion formers and decision-makers within the Welsh Government. Wales has particular strengths in compound semiconductors, advanced manufacturing, medtech, renewable energy and cyber security, and we look for opportunities to promote our strengths and attract investment from global investors in each of these sectors when we can.
What kind of Welsh businesses has China traditionally invested in?
The manufacturing sector in Wales is traditionally a major employer, with key sectors such as aerospace and automotive. We have a wealth of enthusiastic, skilled workers and graduates from our Welsh universities that incoming Chinese investors can easily access. Over the years, we welcomed Chinese investors and helped them to set up advanced manufacturing and assembly plants in Wales to better serve the UK and European markets, and beyond.
Chinese companies coming to Wales are also taking advantage of the research capabilities of Welsh universities and centres of excellence to advance their technologies and improve their overall capability. This is not surprising. South Wales has been identified as one of the fastest-growing technology clusters in the UK in an official report published by Tech Nation.
Wales offers prospective businesses a low-risk, competitively priced entry option into the UK/European market, allowing investors to explore opportunities within the Wales ecosystem without having to incur heavy costs.
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Kerry Brown on the “Great Reversal” of Anglo-Chinese Relations
Kerry Brown's new book on 'the great reversal' of Anglo-Chinese relations aims to help Brits understand their part in China's story
Former diplomat and prolific author Kerry Brown, currently Professor of Chinese Studies at Kings College London’s Lau Institute, has just published The Great Reversal (Yale University Press). The book takes as its starting point that while modern China has a narrative of its relationship with Britain, Britons don’t have a similar understanding of our relationship with China. If they are taught any history at all, children at schools in the United Kingdom today are more likely to learn about European or American history. China is regarded as a subsidiary issue, a part of the vast, complex narrative of the British empire, despite the fact that it has profoundly influenced the culture of Britain through tea, porcelain, silk and ideas of garden design, and has impacted our politics through the role of British imperialism in China’s 19th and 20th century history.
In The Great Reversal, Brown’s intention is to provide British readers with our own China story and an understanding of how and why the West, through Britain, impacted and shaped the east in the form of China. Paul French caught up with Kerry Brown to talk Anglo-Chinese relations, the issue of our collective China knowledge (or lack of it) and what we can do about it.
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www.cbbc.org
The China-Britain Business Council (CBBC) is the UK’s national business network promoting trade and investment with China. We have been at the heart of the UK-China relationship for 70 years and are widely recognised as the independent voice of British businesses working with China. Our objective is to support the growth of British trade and investment with China and Chinese companies expanding and investing in the UK. Our diverse membership includes leading UK companies and universities, many of the UK’s most dynamic SMEs, and an ever-increasing number of Chinese companies exporting to and investing in the UK.
英中贸易协会（CBBC）是英国促进对华贸易和投资的国家级商业贸易网络。70年以来，我们一直处在行动的核心位置，积极参与两国在每个行业和地区的合作，被广泛认为是英国企业与中国合作的独立声音。我们的目标是支持英国对华贸易和投资的增长，以及中国企业在英国的扩张和投资。我们的会员包括众多英国领先的公司与知名大学、英国最具活力的中小企业，以及越来越多向英国出口和在英国投资的中国企业等。
