THE SERVICE TEAM IN TRADE COUNSIL CHINA

The Service Team Trade Council China BEIJING Shi Victoria Counsellor E-mail: [email protected] Phone: +86-10-8532 9997

Morten Kruse Financial Advisor E-mail: [email protected] Phone: +86-10-8532 9992

Niels Bjørn Friis Cultural Advisor E-mail: [email protected] Phone: +86-186 1106 9371

CHONGQING Anja Villefrance Consul General Team Leader E-mail: [email protected] Phone: +86-23-6399 8332

Ting Ting Chen Commercial Officer E-mail: [email protected] Phone: +86-23-6399 8334

Xi Yang Commercial Officer Email: [email protected] Phone: +86 (23) 6372 6600

Suping Hsu Commercial Officer E-mail: [email protected] Phone: +886-2-2718 2101 Loui Malthe Halse Commercial Intern E-mail: [email protected] Phone: +886-2-2718 2101

SHANGHAI Lu Yin Commercial Officer E-mail: [email protected] Phone: +86-21-8025 0628

TABLE OF CONTENTS

TABLE OF CONTENTS NEWS FLASH FROM THE SERVICE TEAM TEAM LEADER UPDATE

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NEWS FLASH TOURISM

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ECONOMY

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Tianyue Wang Commercial Officer E-mail: [email protected] Phone: +86-21-8025 0607

E-COMMERCE

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TECH

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AN ARTIC VISIT TO TAIWAN

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GUANGZHOU

’THE DANISH MAP APP’

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Yan Luo Law (Christina) Commercial Officer E-mail: [email protected] Phone: +86-20-2829 7317 Jonas Skarđsá Jeppesen Commercial Intern E-mail: [email protected] Phone: +86 186 2091 3509

Cecilie Stadel Lippe Commercial Intern E-mail: [email protected] Phone: +86-132-7277 7978

TAIPEI Nicholas Enersen Director E-mail: [email protected] Phone: +886-978-321 590

EDITED BY Xi Yang Commercial Officer Service Team

Cecilie Stadel Lippe Commercial Intern Service Team

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NEWS FROM THE SERVICE TEAM

NEWS FROM THE SERVICE TEAM

TEAM LEADER UPDATE

The tourism industry in China has since the reform and opening up policy in the end of the 1970’s experienced a great expansion. Tourism in China is also increasingly becoming a more and more important part of China’s economy, accounting for about 10.8 % of total GDP growth and 10.2 % of national employment in 2015 according to China’s National Tourist Office. In 2016 China is expected to invest about 20 % more on the tourism industry compared to 2015. This is done with a focus on increasing the revenue in this industry. The great investments in the tourism industry seem to be a cleaver move for China. Which is reflected in China increasingly becoming a more and more popular tourist destination. In 2015 there were almost 134 million tourists arriving in China, according to the China National Tourism Administration. Even though a large share of these tourists came from Hong Kong, Macau and other nearby Asian countries, China is also gradually becoming a more popular choice for Europeans. It is not only the inbound tourism market in China, which is experiencing an increase, also the outbound market is gradually growing, as the Chinese are starting

to spend more money on travels and more often travel abroad. The tourism industry is also a very important part of the Danish economy, because it creates both growth, revenue and employment. Therefore, it is also valuable for Denmark to focus on the tourism industry and the Chinese market is definitely a market worth targeting. The improved living standards for the Chinese are one of the main factors, which affect the increase in expenditure used for travelling. This increase in travelling expenditures is both seen locally in China, but it is also seen for international travels.

The extra focus on tourism will hopefully help to give the Chinese additional information on the Scandinavian country of fairytales, which Denmark is currently known for. One of the initiatives made by the Trade Council in order to promote Denmark is the ‘Danish Map 2017’. In addition to this the Danish representations in China are continuously working on attracting more and more Chinese to come to Denmark.

This is done with the aim of Denmark taking part in the great growth in outbound travelers from China. The Sino-Danish year of tourism between China and Denmark in 2017 is a great possibility to do so. By promoting Denmark as a potential travel destination for the Chinese, and vice versa promoting China as a potential travel destination for the Danes, both parties will definitely be able to benefit from the coming tourism year.

From the first half of 2014 until the first half of 2016 there has been a great growth in the number of outbound Chinese tourists from 54,100,000 to 59,030,000. Even though a lot of these outbound travelers choose to travel to other more easily reached Asian countries, Europe and especially Scandinavia are also gradually becoming more and more popular choices among the Chinese travelers. In 2017 there will be a Sino-Danish tourism year between China and Denmark. This is held in order to promote increased tourism between the two countries, and to improve communication between the parties.

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NEWS FROM THE SERVICE TEAM

NEWS FROM THE SERVICE TEAM

TOURISM

TOURISM DENMARK TO WOO MORE CHINESE TOURISTS WITH BETTER SERVICE Source: XINHUA | 26-02-2016 Tourism authorities in Denmark will continue to work on and improve tourism facilities and service aimed at Chinese tourists so as to attract more of them to visit the Scandinavian country, a top tourism official told Xinhua on Thursday. In the meantime, Chinese tourists are encouraged to explore more cities and areas of Denmark, which has a lot to offer with its long history and colorful culture along with its beauty of nature, Flemming Bruhn, director of Visit Denmark, the country's official tourism agency, said in an interview. Bruhn said Denmark is a very small country compared with China, but still the two countries have a lot to give to and learn from each other. Over the past few years, Denmark has witnessed a growing number of Chinese tourists. Figures show that Chinese tourists to Denmark quadrupled to about 200,000 in 2015 from only 50,000 in 2010. Bruhn said Chinese tourists normally do not visit Denmark only. Instead, they will further go to other Northern European countries from Denmark to see Norwegian fjords and the Swedish capital of Stockholm, etc.

TOURISTS FROM CHINA BIGGEST SPENDERS OVERSEAS IN 2015 "This is a challenge for Denmark, because geographically the country is only a small part of Northern Europe, and many Chinese tourists as well as those from other Asian countries will normally stay in Denmark for only one day," Bruhn said. "The very clear strategy for Visit Denmark is to let tourists stay more nights in Denmark before they further go to other Scandinavia countries," he said. Meanwhile, Chinese tourists will mostly stay in the capital city of Copenhagen when they come to Denmark, just like Scandinavian tourists to China will mostly visit Beijing and Shanghai, Bruhn noted. "We need to tell more to the Chinese tourists about Denmark, which has more to offer than Copenhagen," he said. So far, Visit Denmark has established cooperation with several Chinese major tour operators to promote Denmark tour in China. "Now we are trying to get more direct connections with the consumers through new social media platforms like Weibo and Wechat as well as online travel platforms like Ctrip," Bruhn added. To read the full article, click here: http://news.xinhuanet.com/english/2016-02/26/ c_135131728.htm

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Source: RT.COM | 21-09-2016 When it comes to traveling and spending abroad Chinese tourists can’t be beat. The World Tourism Cities Federation (WTCF) says $215 billion was spent by Chinese travelers last year, which is 17 percent of global travel expenses. The report said holiday makers from China spent mostly on souvenirs and cosmetics, products of everyday use, luxury items, as well as clothing and footwear.

supportive policies along with information technology. "The prospect of China outbound tourism is bright," said the director of the China Cultural Center in Berlin Shi Xiang. The World Travel and Tourism Council’s study showed that tourists from China prefer traveling around Asia when they leave the country for the first time. Europe and the United States are popular options as well as countries with easier visa policies.

In the last five years the number of Chinese travelers has increased by 20 percent annually, which contributed significantly to the development of the global tourism market despite the economic growth slowdown. WTCF said that more than 70 percent of Chinese tourists travel abroad at least once a year, with half of them willing to spend more than a fifth of their expenses on traveling. China has been the world’s largest outbound tourism market since 2012, according to data from the United Nations World Tourism Organization (UNWTO). The tourism boom is partially a result of government initiatives to encourage travel, such as a favorable visa environment and more KINA.UM.DK

To read the full article, click here: https://www.rt.com/business/360117-china-tourismoverseas-spending/

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NEWS FROM THE SERVICE TEAM NEWS FROM THE SERVICE TEAM

TOURISM

ECONOMY

CHINA’S SICHUAN PROVINCE PROMOTES TOURISM IN DENMARK Source: XINHUA | 30-08-2016 Tourism authorities from China's Sichuan province launched a roadshow here on Tuesday to promote tourism opportunities at the Danish market, hoping to allure more tourists from the country. Known to the world as the hometown of the giant panda, Sichuan has much more to offer to tourists around the world, said Hao Kangli, director of Sichuan Tourism Development Commission. Hao said Sichuan is abundant with beautiful scenery like Jiuzhaigou Valley. Meanwhile, Sichuan has a long history.

NO, CHINA IS NOT THE ‘NEXT JAPAN’ "The tourism resources of Sichuan can cater to different needs of tourists, and we will do our best to provide high quality service to tourists," Hao said. "As our tourism logo puts it, Sichuan is more than pandas," he added. Representatives from tourism companies in Sichuan introduced various products designed for foreign tourists.

To read the full article, click here: http://news.xinhuanet.com/english/2016-08/31/ c_135646319.htm

Source: CNBC | 20-10-2016 Recently, many observers have been drawing parallels between China today and Japan in the late 1980s – just before its "lost decade", where the country experienced 10 years of secular stagnation. Indeed, the macroeconomic commonalities seem too great to be ignored: both had high saving and investment rates, along with a rapid accumulation of external wealth that funded purchases of prime assets around the world. "Bridges leading to nowhere" is often used to describe both countries' investment bonanzas.

Lessons from Japan Japan's case is fascinating, because its growth was nothing short of a miracle. In 1980, Japanese per capita GDP was 30% below that of the US. Ten years later, the gap was only 17%. Japan as Number One, a book by Ezra Vogel, captured much of the spirit of the time. But between 1991 and 2003, Japan stagnated, and growth virtually stopped. The term "lost decade" was coined to describe the economic slump, where GDP grew at a mere 0.7% per year (compared to 4.6% in the previous four decades).

Just like Japan all those decades ago, the Chinese economy today is experiencing real estate and stock market bubbles, rising debt, heightened default risks and unending lending to zombie companies.

What appeared at first to be a normal recession became a sustained, structural slump. By 2002, Japan's GDP per capita gap with the US was even greater than it had been in 1980.

At a recent high-level policy conference, a famous Japanese economist remarked that all the discussions about China today reminded him exactly of the same discussions once held about Japan.

Many fear that the same fate is befalling China, and that this could even spill over to the rest of the world. Of course, macroeconomic indicators are important, but quite often they hide the differences among various economies.

Is there any resemblance between China today and Japan then?

To read the full article, click here: http://www.cnbc.com/2016/10/20/no-china-is-not-thenext-japan.html

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NEWS FROM THE SERVICE TEAM NEWS FROM THE SERVICE TEAM

ECONOMY

E-COMMERCE CROSS-BORDER TRADING BOOMING ON GLOBAL SCALE

CHINA’S ECONOMY STABILIZES WITH SOLID PERFORMANCE Source: PEOPLE’S DAILY| 19-10-2016 China's economy grew 6.7 percent in the third quarter of 2016, holding steady with the second quarter and strengthening hope that the Chinese government will achieve its annual GDP target. The figure, released by the National Bureau of Statistics (NBS) on Wednesday, is within the government's target range of between 6.5 and 7 percent for 2016. On a quarterly basis, the economy increased 1.8 percent on the second quarter. GDP expanded 6.7 percent year on year in the first three quarters of 2016 to reach 52.997 trillion yuan (7.87 trillion U.S. dollars). NBS spokesperson Sheng Laiyun said China's economy made progress and grew steadily as a result of expanded aggregate demand, supply-side structural reform, anticipated development and new economic drivers. The structure of industry and demand continued to improve in the first three quarters. Wednesday's data showed the added value of the tertiary sector accounted for 52.8 percent of the country's GDP, up 1.6 percentage points year on year.

Consumers contributed a staggering 71 percent to economic growth in the first three quarters, up 13.3 percentage points on the same period last year, while energy consumption per unit of GDP dropped 5.2 percent. Agricultural production remained stable with 139.26 million tonnes of summer grain output, the second-best seasonal performance in history, with expectation of a good harvest this autumn. Thanks largely to strong performance in the high-tech and equipment manufacturing sectors, the country's industrial output expanded 6 percent in the first three quarters. The growth rate was unchanged from the first six months, the NBS said. Industrial output is used to measure the activity of large designated enterprises with annual turnover of at least 20 million yuan. Retail sales of consumer goods grew 10.4 percent year on year in the first three quarters this year, accelerating from the 10.3 percent growth posted in the first half of the year, on the back of robust online sales. To read the full article, click here: http://en.people.cn/n3/2016/1019/c900009129716.html

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Source: CHINA DAILY| 21-10-2016 Chinese merchants offering their own quality brands are getting noticed overseas. China's cross-border e-commerce market is growing rapidly. In 2016, the business is expected to reach 6.5 trillion yuan ($770 billion; 880 billion euros; 790 billion), achieving a 30 percent growth rate and a 20 percent increase in China's total importexport trade ratio, according to the Ministry of Commerce. Cross-border e-commerce is booming on a global scale as well. It is estimated that by 2021, 15 percent, or $424 billion, of global e-commerce revenue will be generated by cross-border transactions. The expansion of e-commerce is creating more opportunities for Chinese businesses. According to the second Global CrossBorder e-Commerce Survey conducted by PayPal and market research company Ipsos, 19 percent of global online consumers shopped on Chinese websites in 2015, making China the second-most popular cross-border e-commerce destination globally. Chinese merchants are also tapping into a global trend by tailoring their business models and products to appeal to millennials internationally. According to the PayPal Cross-Border 2015 Millennials Report, KINA.UM.DK

the millennial population is significantly more likely to shop online than the general population, and nearly half of millennials surveyed purchased across borders in 2015. China remains the second-most popular cross-border destination among millennials globally, with clothing, digital entertainment, education and consumer electronics among the most popular categories. As China continues to accelerate as an ecommerce powerhouse, we're seeing the country increasingly move from manufacturing to innovation. Looking to the future, there are three major cross-border ecommerce trends that have been benefiting the development of the market. Chinese merchants choosing to develop quality products, and own brands, are increasingly receiving recognition in overseas markets: First, as the cross-border online purchasing preferences of consumers in Europe, the United States, and other developed countries shift from lower prices to better quality, a growing number of large Chinese businesses are shipping higher quality products and creating their own brands, thereby gaining recognition in overseas markets. To read the full article, click here: http://africa.chinadaily.com.cn/weekly/2016-10/21/ content_27127332.htm

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NEWS FROM THE SERVICE TEAM

NEWS FROM THE SERVICE TEAM

TECH

TECH NATION GAINS TOP SPOT IN iOS APP MARKET

APPLE SEEKS TO LURE CUSTOMERS Source: CHINADAILY | 11-10-2016 Apple Inc has filed two patent applications in China, in a move to prepare for new smartphone features that can resonate with local consumers, as the US giant struggles with tumbling sales and mounting competition in the world's largest smartphone arena. The California-headquartered firm filed two applications to patent its dual-SIM card technologies in China, which enable one phone to support two carriers at the same time, according to the official website of China's State Intellectual Property Office. The two applications, filed in February and March respectively, are still awaiting approval, and they are Apple's latest efforts to lure consumers away from competitors such as Samsung Electronics Co Ltd and Huawei Technologies Co Ltd which have already unveiled similar features on their top-end devices. Nicole Peng, research director at Shanghai -based consultancy Canalys, said the dual -SIM card features are popular among businessmen in China and other Southeastern Asian countries.

"The move can help Apple battle mounting competition, though it will take time to apply the new functions to smartphones," Peng said. The news came shortly after Apple set up its first China research and development center in Beijing, with registered capital of 100 million yuan ($14.99 million). The center will have roughly 500 employees and the total investment will be up to 300 million yuan, the local government said. Its latest devices, the iPhone 7 series, also achieved an initial success among Chinese consumers, with pre-orders of the 7 Plus, and the iPhone 7 in jet-black color, reportedly sold out before they hit the streets on Sept 16. Jin Di, research manager at IDC China, said unlike Western countries which chiefly rely on telecom carriers to sell contract phones, China has more diverse retailing channels, including e-commerce sites and professional consumer electronic stores, which prompt more consumers to favor dual-SIM card services.

To read the full article, click here: http://www.chinadaily.com.cn/business/tech/2016-10/11/ content_27018748.htm

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Source: CHINADAILY | 21-10-2016 China has surpassed the United States to become the world's largest iOS app market in the third quarter, according to a report released on Thursday by App Annie, a USbased mobile analytics company. The company said that with 75 percent of revenue from games, China's iOS revenue exceeded $1.7 billion in the latest quarter, leading the US by more than 15 percent. Haim Mendelson, professor at the Stanford Graduate School of Business, said that the Chinese mobile internet was moving ahead of the US and there would be more of the mobile innovations taking place in China.

huge milestone for the app ecosystem. As an app publisher or marketer, if China wasn't a key priority in your app strategy, it should be now." Dai added that in terms of absolute revenue growth, games are followed by entertainment apps, with video streaming apps such as iQIYI, Tencent Video and Youku. The report also shows that in China, the top grossing categories outside of games on iOS in the latest quarter involve entertainment, social networking books, photo and video, all of which have more than tripled in revenue year-on-year.

"Because of the size of the Chinese market, the increasing number of people in the middle class who can afford an iPhone, and the increasing penetration and use of the mobile internet in China, there is already more money to be made on apps in China compared to the US. "This implies that investments in innovation will be increasingly targeted on the Chinese market, and coupled with the increase in innovative capacity in China." Dai Bin, region director of Greater China at App Annie, said: "China earning the No 1 place in the iOS market by revenue is a KINA.UM.DK

To read the full article, click here: http://www.chinadaily.com.cn/business/tech/201610/21/content_27126331.htm

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NEWS FROM THE SERVICE TEAM

NEWS FROM THE SERVICE TEAM

AN ARTIC VISIT TO TAIWAN

Source: THE DANISH TRADE COUNCIL Loui Malthe Halse | 21-10-2016 Tourism in Taiwan has recently seen a significant surge. This is due to the quotation system mainland China has created on its own subjects by letting fewer Chinese tourists visit the island with the purpose of hurting the Taiwanese economy. These economic sanctions have been enacted as a response to the newly elected DPP government’s push to free Taiwan from Chinese invention and they have had immediate influence on the struggling Taiwanese economy. Yet, these new changes have not had any impact on the tourism of Taiwanese people and therefore the little island with the big population still holds a great potential for outgoing tourism. This has led to the Government of Greenland to schedule a market visit to Taiwan with the help of the Danish Trade Office in Taipei. The purpose of the trip will be to promote tourism as well as culture, industry and seafood and hopefully make more Taiwanese people aware of the uniqueness Greenland has to offer in terms of both landscape and culture. Greenland does however, have certain unique difficulties in attracting foreign tourists.

These they will have to somehow get around if they want to attract interest among the Taiwanese people. First of all, despite being among the so called “Asian tiger economies” and having experienced enormous economic development from the sixties to the eighties, the average wages in Taiwan are still significantly below the ones in for example Denmark. Therefore, getting from the little island in the furthest part of Asia to Greenland, known to be an expensive destination, is not something that all Taiwanese people are able to afford even if they wanted to do the trip.

Especially in terms of the mining industry there is a big prospective in investing in Greenland for Taiwan as well as for other countries. The Greenlandic soil has already been proven to contain several rare earth elements and during the last years the mining possibilities in Greenland has by now attracted several other actors such as Mainland China. Furthermore, if Greenland might be poor placed geographically in terms of tourism,

it has a favourable location when it comes to exporting earth materials given that the island is squeezed in between the two major markets North America & Europe. On concluding remarks it is therefore safe to say that there is definitely room for some cooperation between Greenland and the East Asian region that have not been explored previously. Hopefully the market visit in early January can be the first step to benefit from these opportunities.

The delegation from Greenland is therefore forced to target a certain, more wealthy, audience with their tourism packages if they wish to reach customers that are financially able to do such a big trip towards the remote arctic. The Greenland government visit to Taiwan is however not only about promoting tourism. Included in the official delegation are also main actors in companies such as Royal Greenland, Rambøll Greenland & Greenland Minerals and Energy. This illustrates how Greenland sees a great potential in trading with Taiwan, and how the future is likely to see an increase in trade between the two very distant islands. KINA.UM.DK

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NEWS FROM THE SERVICE TEAM

NEWS FROM THE SERVICE TEAM

‘THE DANISH MAP’ APP: PROMOTING DANISH TOURIST ATTRACTIONS Source: THE DANISH TRADE COUNCIL Cecilie Stadel Lippe | 24-10-2016 As a part of the growing Chinese economy, and the improved living standards for a lot of Chinese, they are starting to travel more and more. Previously the Chinese mostly travelled domestically, but there has recently been a boom in outbound Chinese tourists. These tourists normally choose to travel to other nearby Asian countries, but there has also been an increasing interest in travelling to Europe and especially Scandinavia.

This impacts the need for more easily available information about their potential travel destination. As a part of the planning, both beforehand, but also while at their travel destination, they use their mobile devices. This planning the Trade Council wants to improve by introducing the app called ‘The Danish Map 2017’. The app is made by the Trade Council in cooperation with VisitDenmark.

Denmark is also a popular tourist destination for Chinese tourists and since 2010 there has been an increase from around 50,000 Chinese tourists visiting Denmark to almost 200,000 in 2015. This great increase also sets some requirements for Denmark, who will have to learn more about the Chinese culture, in order to serve this new group of tourists in the best possible way.

The design of the app is still in progress, but it is going to be an interactive map of Denmark, where different tourist attractions, hotels, restaurants, shops etc. are going to be pinned on the map, showing the location together with a company profile.

Furthermore, the app is going to be promoted in cooperation with VisitDenmark, and therefore it will also receive promotion through their website. The development of the app is all part of the Sino-Danish tourism year.

All of the content in the app will be in Chinese, making it easier for Chinese tourists, who are going to Denmark to both plan their trip, but also makes it possible for them to be spontaneous and based on the app make decisions on what to do, where to sleep or where to eat, while they are in Denmark.

Hopefully this app will help to promote tourism between Denmark and China, furthermore, it can help to encourage more Chinese to stay longer in Denmark, so they can experience other parts of Denmark, than just Copenhagen.

Since a large share of the Chinese tourists coming to Denmark are expected to come from the so called millennials group, who do indeed use the internet and social media, part of the promotion of the app will be on the Royal Danish Embassy’s social media sites, e.g. their WeChat and Weibo accounts.

A great amount of these outbound tourists coming to Denmark are part of the millennial generation, which means they are only between 15-29 years old. Many of these tourists from the younger generation choose to travel independently, and therefore they are not part of an already planned group tour.

The Royal Danish Embassy in China has around 1 million followers on different social media sites, meaning that the app is expected to reach a great amount of Chinese, who are interested in going to Denmark.

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NEWS FROM THE SERVICE TEAM

NEWS FROM THE SERVICE TEAM

For more information please contact:

Anja Villefrance Team leader for the Service Team E-mail: [email protected] Phone: +86 23 6372 5284

Xi Yang Commercial Officer E-mail: [email protected] Phone: +86 (23) 6372 6600

Cecilie Stadel Lippe Commercial Intern E-mail: [email protected] Phone: +86 132 7277 7978

Loui Malthe Halse Commercial Intern E-mail: [email protected] Phone +886-2-2718 2101

Denmark in China kina.um.dk

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