Design Report China

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Claydon Gescher Associates 2004. Under exclusive license to UK Trade & Investment. No unauthorised reproduction permitted.

Changing China - The Creative Industry Perspective:

A Market Analysis of Chinas Digital and Design Industries

Design

June, 2004

CONFIDENTIALITY

This report contains information and analysis that may be of a sensitive and confidential nature. This report is prepared for the internal use of our client only. Its contents

should not be distributed or divulged to third parties without prior consultation with Claydon Gescher Associates.


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1Claydon Gescher Associates 2004. Under exclusive license to UK Trade & Investment. No unauthorised reproduction permitted.

Disclaimer

The present report has been prepared on the basis of primary and secondary research conducted during a six week period in February and early March,2004.

Our mandate was to provide an overview of a wide range of industry activity.

The resulting report, including all findings, conclusions and recommendations is based on our best professional judgement based upon informationavailable to CGA at the time of preparation.

CGA is unable to take responsibility for the accuracy of information supplied nor can data gathered on a sample basis be relied upon for more than anindicative representation of present and likely future conditions.

CGA asserts its moral right to be identified as the author of this report which is exclusively licensed to the UK Trade & Investments Creative and Media

Export Unit.

June, 2004.


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The Huangpu Redevelopment Projectis significant covering an area of over 74 km , it has an estimated budget of over US$ 12 bn and isexpected to redefine not only central Shanghai but the relationship between the Puxi and Pudong districts; at its northernmost tip, it will touch thesite for the 2010 Expo.

The Shanghai Municipal Government has been exploring ideas for a Digital City in Pudong. There are however a number of stumbling blocks not least the extremely high cost of land both in absolute terms and relative to surrounding areas such as Suzhou.

Zone 5 Key Points for Growing UK Value

The range of potentially interesting value activity for design is vast and China lacks the institutions to provide a single effective point of interface.On this basis, there is a strong need for UK prioritisation and for a co-ordinated approach to the identification and development of opportunity thatdelivers opportunity to niche design practices as well as majors. As this report indicates, we believe that particular opportunities exist in industrialdesign and architecture and that these opportunities could be strategic in terms of developing an awareness of UK design overall. We alsobelieve that rising interest in design and urban renewal create interesting and important opportunities for the building ofcreative cities an areain which the UK has significant experience.

As a next stage, we recommend a combination ofdesign neighbourhoods(equivalents to the creative neighbourhoods discussed in the mainChanging China The Creative Industry Perspective report) and mapping of opportunity. We also recommend that very careful attention be givento the range of educational and training services in which UK institutions excel and the opportunities which these institutions offer to build a long-term engagement with China and with its emerging design elites.

Design Executive Summary


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Contents

Introductory Remarks

China Context

Industrial Design

Architecture

Key Points for Consideration in Growing UK Value

1

2

3

4

5


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Zone 1

Introductory Remarks1


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Zone 1 Introductory Remarks

Perspectives on the Size & Shape of Selected Creative Industry Sectors in China

Changing China The Creative Industry Perspective was commissioned to provide the UK Trade & Investments Creative & Media Export Unitwith a clear analysis of the size and shape of selected creative industries in China, and of the fundamentals which are driving present and futuredevelopment.

As agreed with the Creative & Media Export Unit, 7 industry sectors are addressed:

TV

Film Radio

Music

Publishing

Games

Design

the analyses of the first 6 sectors can be found in the accompanying report Changing China: The Creative Industry Perspective: AMarket Analysis of Chinas Digital and Design Industries.

A First Step in Developing a UK Strategy for Approaching the China Market

We understand that this Market Analysis is the first step in a process which is ultimately designed to deliver a UK strategy for the developmentand exploitation of market opportunities in China by Britains creative industries.


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An understanding of the China context is critical

Prefacing the design sector analysis, Zone 2 describes the economic, social and industry context; it also describes Chinas perspectives on

design.

Zone 5 (Key Points for Growing UK Value) has been prepared for UK policy makers, and should be read alongside Zone 4 of the main report.


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Our approach was driven by an extensive research process supported by industry interviews

Changing China The Creative Industry Perspective was driven by an extensive data-driven analysis and desk research-process to assemble,review and evaluate existing data (official and independent) on the selected industries:

data gathered was cross-checked and reviewed with industry sources in interviews.

A wide range of industry interviews were also conducted with a wide range of individuals, officials and observers occupying and close to keypositions in the value chains of the sectors addressed.


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The market data environment is challenging

In the course of preparing this Market Analysis, we have conducted and reviewed a large body of existing data (official and independent) on theselected industry sectors in China:

the data on which the Market Analysis is based was drawn from a wide range of fragmented sources - subject to a number ofweaknesses.

To the greatest extent possible, the many gaps and contradictions were cross-checked and reviewed with industry sources in interviews:

given present limitations in the data environment, it is not possible to say that all gaps or contradictions have been resolved or areresolvable.

To some extent these gaps are a factor of statistical approaches which have limited ability to capture independent (ie non State) activity in newlyliberalising sectors:

they are also a factor of industry perspectives which aggregate data in such a way as to follow prevailing administrative rather thanindustry structures;

they also reflect the fact that, to date, China has not conducted a mapping of its creative (or cultural) industries.

These market data challenges have limited the range and quality of data that can be provided in the Market Analysis

To the greatest extent possible, we have sought to resolve them by reference to the common sense and experience gained from CGAs 10years of experience in working with China:

they remain a significant and common risk factor for all businesses and countries seeking to develop China strategies.

Of the many limitations in the available data, we highlight the following:

lack of publications or reports which address individual selected industries;

lack of detailed data on companies (SOEs and independent);

lack of industry metric data;

wide range of varying data baselines applied (by time, level of detail, organisational structure, basis of collection and units of account);

lack of detailed surveys of industry attitudes and consumer behaviour.



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There are also gaps in the availability of aggregated data on key UK strengths, including also the size and reach of UK industry

Unless remedied, we believe that these gaps will affect the ability of UK Trade & Investment to carry out an efficient allocation of supportingresources for the successful long-term exploitation of China opportunity for UK creative industry.



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Chinas policy approach to design is highly fragmented

Given limited time and resources, we have focused on selecting 2 areas which provide a broad perspective; after a process of research anddialogue we selected industrial design and architecture:

this was partly due to available data; it was partly due to strategic significance for the UK overall; it was partly due to the fact that these design areas have been little addressed relative to some other design areas.

Through these two areas, we aim to highlight:

key fundamentals in industry structure and approach; overall trends and themes in industry development.

A general description of opportunities, risks and forms of engagement can be found in zone 2 of the main report.

With regard to opportunity in design, we emphasise the need for significantly greater investment in exploring opportunity in design overall and inprioritising areas of importance for the UK.



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There are key differences between UK and Chinese definitions and policy treatment of creative industries

As noted in our outline of the China Context (see Zone 1, Area 2), China has not adopted a definition of the creative industries which matchesthat of the UK.

For the purposes of this Market Analysis and in respect of the creative industry sectors addressed, we follow UK concepts and terminology.



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Changing China The Creative Industry Perspective is not aHow To Do It

Guide

The individual sector analyses are designed to provide perspectives on selected Chinese creative industry sectors:

as such, they describe the size and shape of individual industries; they identify ownership structures, key players and market features;they summarise major opportunities and key risks; they summarise policy and regulatory frameworks;

market participation in these sectors requires professional advice and expertise exercised on a case-by-case basis;

this Market Analysis can not, and should not, be relied upon as a substitute for such advice.



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China Context2

Zone 2


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Zone 2 China Context

Rapid growth

Many of Chinas creative industries are experiencing rapid growth, fuelled by a combination of state-driven and private sector investment ininfrastructure and technology, a rise in the digitisation of information, a significant increase in personal communications and a marked rise inconsumer spending on media,culture and infotainment.

Underpinned by a Robust Economy

Hitherto, growth has been sustained at approximately 8% per annum;

this growth has been driven in part by liberalisation and state-driven investment;

it has also been driven by Chinas attraction of the highest level FDI in the world (US$53.51bn in 2003).

a Young Population

Underlying demographics are strong;

major consumers in the key 20-40 demographic band represent approximately one-third of the population.

but with Important Regional Differences

This growth has been concentrated in the southern and coastal areas of the country;

Beijing, Shanghai and Guangzhou including the corridor which links Shanghai and Guangzhou have emerged as the dominantengines of growth;

resulting rises in employment and incomes have fuelled consumer confidence.


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Chinas creative industries are undergoing change

Some of this change is driven by significant domestic programmes of investment and restructuring within China.

Some of the change is driven by WTO concessions to foreign investment and overall policy decisions to liberalise foreign access to certainsegments of individual creative industry sectors.

Some of the change is linked to global industry changes.

Much of the change is linked to new technologies.

Increasingly, the change is linked to growing Chinese policy awareness of the importance of the media and creative industries.


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Hitherto, and still to date, theseparation of powershas inhibited the type of joined upgovernment approach that the UK has

developed, and Chinas attention to the creative industries has not matched that of the UK either in structure or in scope

To date, no comprehensive mapping of the creative industries has been conducted; limited mapping has been undertaken of individual industries,including some of the industries addressed in this Market Analysis; limited mapping has also been undertaken by the MoC:

data gathering is generally not harmonized across administrative entities and there are significant gaps;

as noted in Zone 1, data quality is also limited by a historical focus on State activity where it is independent enterprise which isbeginning to drive growth.

Individual industry policies have been set (and continue to be set) by individual ministries SARFT, GAPP and MoST.

Early in 2004, Chinas MoC published what would appear to be the first national attempt to address multi-industry policy for the cultural industries:

7 industries were selected: performing arts; film & TV; music & video; cultural entertainment (including content); cultural tourism; artstraining; and arts & handicrafts.

The document technically Chinas 10th Five Year Plan for the Cultural Industriesbut referred to by the MoC as a Strategy and Roadmap forCreative Industries recognizes the growing commercial potential of Chinas cultural industries:

it recognizes the present weakness of Chinas cultural industries;

it recognizes the importance of developing Chinese cultural industries; it recognizes the critical importance of commercialisation (including branding).

The Roadmap sets out targets for growth to 2008:

these include 20% YOY growth, net contribution of 2% to national GDP and 5% to urban consumer spending on entertainment;

between 1990 and 1998, the Roadmap estimates that the cultural industries generated US$145.3m to US$4bn in value; 2002

contribution to GDP is estimated at less than 1%.


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The UK Perspective

Design workshop of the world, UK design is recognised as the source of some of the most vibrant influences in the global market.

As assessed by the UK in work conducted by the Department of Culture, Media & Sport (DCMS) and the Department of Trade & Industry (DTI), itcovers a wide range of value activities across a range of categories, with a particular focus on design in the commercial arena: industrial design,brand identity, interior design and environmental design:

other value activities for example, architecture and fashion design are seen as independent creative activities in their own right.

Asian Perspectives

Other countries, including Asian economies such as Singapore and Hong Kong, adopt different approaches to the categorisation of the creativeindustries in general and design in particular:

others describe industrial design as a value activity which is not core but related to design;

some include architecture as a value activity, core to a concept of design which includes industrial design as core.

China Perspective

As discussed in the Market Analysis which has not conducted a detailed analysis of its creative industries, recognises a concept ofculturalrather than creativeindustries:

this definition does not include design in general; nor does it include industrial design and architecture.

There is no generally accepted classification of the design industry in China and by and large, little policy attention has been given to thedevelopment of the industry overall or to individual segments.



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The majority of design-related activity (as defined in the UK context), does not fall within the policy mandate of the Ministry of Culture

(MoC); nor (for the present at least) does it sit wholly within the Ministry of Commerce (MoFCOM):

some design activities - fashion design, brand identity and graphic design for example, fall (at least for the present) under the policy remitof no specific ministry;

some design activities fall under the remit of a single ministry but one which has little engagement in creative or cultural sectors planning:

interior design for example, falls, in principle, under the Ministry of Construction (MoCON), whose focus (at present) is primarilyadministrative;

other design activities most notably environmental and industrial design fall under the policy remit of a number of ministries andagencies:

depending on the specific value activity, environmental and industrial design can be addressed by the National DevelopmentReform Commission (NDRC); and the Ministry of Science & Technology (MoST);

they may also be addressed by other ministries such as the MoFCOM, and the MoCON in respect of particular projects.

What can be said, however, is that when focusing on commercial value activities, there is an overall strong policy interest andengagement around three key areas of design activity:

environmental and industrial design falling, as noted above, under the policy mandates of a number of ministries, is increasingly of

interest to the NDRC and the MoST; these are both ministries responsible for strengthening domestic market performance and improvingthe competitivity of Chinese business in global markets;

architecture falling under the MoCON at the national level is increasingly being driven (in the case of Chinas leading urbanenvironments) at the municipal level (urban planning commissions) as individual local governments seek to gain competitive advantagewithin China.

Many of these areas are gradually becoming subjected to increasingly distinctive policy and administrative treatment this is perhaps most

advanced in industrial design and architecture, but across the board, it is significantly less developed than in the UK.



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Growing attention is also being given to design activities by specialist national and local level entities government and civil society

Environmental design activities are largely included in development plans of associations such as the State Environmental ProtectionAssociation (SEPA) and the China Association of Science and Technology (CAST).

One example can be seen in the use of design to promote environmental protection:

following the 2004 National Party Congress announcement to control environmental deterioration and protect natural resources, the CAST organized an ecological promotion project at the Wuxi Economic Development Zone (one of China s first and fastest growing

foreign-invested industrial development parks in Jiangsu province), where overall park design is based on environmental protection;pollution regulations and standards are considered in the design of the park:

one specific project at Wuxi is the wastewater treatment plant where research and development of ecological design is carriedout by water management engineers to protect water resources in the park.

Industrial design activities are largely included in commercial development plans of organisations such as the Beijing Industrial Design PromotionOrganization (BIDPO);

BIDPO is organizing the 2004 International Design Exhibition with a focus on industrial design and technology.

There are also a number of exhibitions and events focusing on two important sectors of industrial design: automotive and consumer electronics;

these include the 8th International Automotive Industry Exhibition, 2004 organized by China Automotive Industry InternationalCorporation (CAIC);

also included is the 2004 Electronics and Components Fair sponsored by numerous domestic electronics design associations where

foreign and domestic design experts will share technical information about the industry.

Architectural activities are increasingly included in the development plans of municipal-level associations and institutions such as theArchitectural Society of China (ASC):

the ASC organizes industry events for architecture professionals;

several higher education institutions (like the Tongji University School of Architecture and Urban Planning) bring together the

professional and intellectual communities through collaborated events on design.



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As noted in Zone 1, our review of the design section in China led us to select 2 areas for specific attention: industrial design and

architecture

The selection of these 2 areas was driven, as noted, partly by the availability of data (even for industrial design and architecture data is extremelylimited), partly because of the limited historical UK attention relating to some design sectors, and partly due to their strategic significance:

Chinas strengthening position in global manufacturing, makes it an important point ofsalefor industrial designers around the world.

Chinas rapid economic growth is driving significant national and municipal investment in flagship architectural projects which will

represent long-term testaments to the creativity of an individual architects country of origin

The selection of these two areas should not imply that opportunity for the UK does not exist in other areas of design

In addition to architectural design, environmental design is of increasing importance and is an area which has already attracted bilateral(China/UK) attention.

Equally (and following growing domestic concern to strengthen industrial design for international markets) Chinas government and its majormanufacturers are focused on developing brand identities; again, however, this area has been addressed in the bilateral arena and is addressed

by the UKs global brand businesses which have already established a presence in the China market:

all of the worlds leading brand advisers (including businesses within the WPP Group such as Enterprise IG) are represented and/orare active in China as are some notable UK independents, including newly established Acanchi (founded by Springpoints originalfounder Fiona Gilmore);

these agencies are likely to dominate opportunities for international business; they are also likely to work with niche design studios (UKand Chinese), creating opportunities for the type ofcreative neighbourhoodsthat are discussed in Zone 4 of the main report.

Overall, it is also important to note that actual opportunities for design commissions may be masked by the fact that major projects may bemanaged by a foreign partner:

design commissions for major property and hotel projects are often managed offshore by major regional investors this can giveregional design studios particular advantages.



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The limited policy attention attached to design, and its fragmented nature means that this sector is by far the most challenging in terms

of defining value and opportunity

Very limited relevant statistical information is available and what is produced, comes from numerous uncoordinated sources:

a number of design associations collate statistics relating to their individual members, but these figures are rarely publicly available;

the National Bureau of Statistics of China (NBSC) collects information on construction, but this data series does not break down todesign involvement.

In terms of industrial design, government policy-support is largely limited to an exhortation to Chinas industry (particularly its export industry) toinvest in design:

to date, no mapping of design capability has been carried out;

Chinas industrial design associations (the China Industrial Design Association (CIDA) and its local equivalents, for example the Beijing

and Shanghai Industrial Design Organisations (IDPOs) can act as a conduit for matching designers with demand but the degree ofeffectiveness to which different associations have done this varies;

in terms of architecture, policy is largely set at the local level:

in Chinas major urban areas (including Beijing, Shanghai and Guangdong), architectural projects have traditionally been driven bylocal government but more recently, numerous private associations and educational institutions are increasingly involved and playa larger role in influencing policy;

professional associations for industrial and architecture design do exist and are increasingly involved in development and policy:

they pursue a range of industry-building activities but have invested little in the development of solid industry information and are oflimited value only as sources of information either for industry features or for the identification of investment opportunity:

CIDA has informal associations with its local equivalents; and is currently working with the NDRC on a draft policy to

regulate industrial design development policy.



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On the basis of the above, our treatment of the selected value activities for design differs from that of the creative industry sectors

addressed in the main report

The assessments of size and shape are more limited; there is a greater reliance on anecdotal evidence.

Within each of the industrial and architecture design sectors, we have focused on specific examples (by product in the case of industrial design;by geographical location in the case of architecture):

for industrial design, we have looked at two of the most important (commercially and from a macro-policy perspective) areas --automotives and consumer electronics; we have illustrated our comments with short profiles;

for architecture, we have looked at two of the leading centres for urban development Beijing and Shanghai; we have illustrated ourcomments with descriptions of the major urban development initiatives underway and planned in these two municipalities.



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Zone 3

Industrial Design3


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Chinas industrial design industry is beginning to develop a sense not only of self-awareness but also of mission

Chinas industrial design industry has developed significantly over the past ten years:

it is now represented at the national level by the CIDA, whose mandate is to promote the industry, provide support to members and tocollaborate with government on policy and technical regulatory issues;

CIDA describes itself as an equivalent to the UKs Design Council, with over 3,000 individual members and dozens of institutionalmembers including companies, institutes, design studios and universities.

Similar associations have been established at the municipal level:

Beijing, Shanghai and Guangzhou for example, have Industrial Design Promotion Organisations (IDPO);

these organizations were initially established by the municipal government of these cities:

they all report to the Science and Technology Commissions of the municipal government;

both BIDPO and SIDPO undertake industry promotion initiatives independently and in association, for example, with government;

the 3 design promotion organisations are very different professionally, and in terms of approach and level of activity,

the BIDPO is the only obviously proactive organisation - it has a wide range of international activities.

BIDPO has 200-300 individual members and 84 group members:

group members include companies, universities, colleges, and SOE design-studios;

an example of a member company is Lenovo (Legend), which does its design in-house.

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BIDPO undertakes a range of industry promotion initiatives, some of which are organised in collaboration with international partners;

BIDPO was very active in its collaboration with the British Council in the recent Think UKcampaign:

collaborative events included the showcasing of UK design across a range of design sectors from architecture to advertising,consumer products, cars and film.

BIDPO is also increasingly involved in addressing industry standards issues and regulatory policy;

it is working with CIDA and the Ministry of Personnel (MOP) to establish a formal system of registration for professional industrialdesigners.

IDPOs in other municipalities appear to be less active neither the Shanghai or the Guangdong IDPOs were willing to engage in dialogue.



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There are no official statistics indicating the number of design studios in China

Discussions with BIDPO indicate that Beijing may have only between 10 15 industrial design companies and that overall; China may have nomore than 10,000 industrial designers.

The majority of Chinas industrial designers work in-house to manufacturers, but there are a number of independent design studios:

as Chinese industry has become more focused on design, the number of in-house design units has grown;

at the same time, however, graduates (including some returnees from leading international institutes) continue to establish new designstudios.

Anecdotal evidence indicates that foreign designers make up a small fraction of Chinas design industry:

there are no restrictions on foreign designers working with design studios; few Chinese design studios can afford expatriate salaries and few Chinese manufacturers choose to bring expatriates in-house;

foreign designers in China, tend to be entrepreneurs and tend to work with a local partner.

This may not, however, be an accurate indicator of the volume of design work undertaken by foreign nationals:

design commissions for joint venture manufacturers are often managed by the foreign partner with appointments made off-shore.

There is some evidence to indicate that an increasing number of regional design studios particularly Hong Kong studios are providingindustrial design services on the mainland; driven by a combination of demand for Hong Kong design on the one hand, and a downturn in theHong Kong economy on the other:

much of this work is commissioned by businesses in the Pearl River Delta from which Hong Kong is simply a commuter journey away.

Comparative advantages for Hong Kong designers include not only physical proximity but also (at least for Guangdong Province which is home toone of the highest concentrations of manufacturing) a shared language (Cantonese).



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China has a number of universities and training institutes which specialise in industrial design over 30,000 graduates are estimated

to have been produced in the last 20 years (the majority in the last 5 7 years)

These are strong training resources in all of Chinas so-called Knowledge Centres(Beijing, Shanghai, Guangdong) as well as in individualareas such as Shenzhen:

almost 200 universities and training institutes teach industrial design in China;

a number have teaching staff who have studied abroad (Germany and Japan were cited as particular locations for offshore study).

The best of these institutions are sharply focused on building design excellence a desire to shift from made in Chinato designed in China:

to achieve this, some have forged partnerships with international design schools:

Qinghua Universitys Academy of Arts and Design is participating in the Global Design Research Initiative (an initiative of theDesign School of the Illinois Institute of Technology):

this project is focused on user-centred design which aims to create a set ofactivity-focusedresearch methods toidentify unfulfilled culturally-centred design opportunities;

using this initiative as a platform, student exchanges have also taken place between the two design faculties.

another partnership is the DongHua University (Shanghai) and LaSalle-DHU International Design School (Canada) Sino-foreignjoint venture school, it is owned and managed by the Raffles LaSalle College Group of Singapore:

the school offers special design programs including industrial design;

the school recently established campuses in Beijing, Guangzhou, Huizhou, Changchun and new campuses areplanned for Qingdao, Chengdu and Ningbo.



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The most ambitious students, however, focus on study abroad often after a period of study in China.

Although there are no official statistics, industry observers and academics estimate that several hundred Chinese studentstravel abroad to study design every year;

these students are beginning to form an elite of designers:

those without independent capital tend to gravitate to the major manufacturers where they often becomeDesign Directors upon return to China;

industrial design organisations such as BIDPO, are actively recruiting returnees to participate in theiractivities, and are keen to tap into their overseas experiences.



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Individual cities appear to be developing stronger interests in industrial design some as part of an overall heightening of interest in

design in general

Shenzhen is one of the strongest examples it wants to establish Shenzhen as a Design Capital;

in so doing, the government will build upon what appears to be a natural clustering of talent

key features will include the building of a Contemporary Creative Arts Exhibition Centre, as well as the hosting of a series of design-related exhibitions including exhibitions on industrial design:

Northern Europe Industrial Design Exhibition; Shenzhen Graphic Design Bi-annual Exhibition; International Graphic Design Forum; China Tourism and Industrial Design Forum.

According to the Shenzhen Municipal Government, this drive (led by the Shenzhen Cultural Bureau) is the result of a local initiative with a focus on

overall economic development;

located close to Hong Kong and at the heart of Chinas export manufacturing, Shenzhen has developed a strong educationalinfrastructure for design skills across the board including industrial design;

the Shenzhen government estimates that it is already home to some 20,000 professional designers (as well as graphic, industrial andother designers) as well as being one of the countrys largest concentrations of architectural practices.



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Industrial design activities are fragmented across individual manufacturing sectors

The automotive and consumer electronics sectors are two sectors with a particularly strong focus on design:

this reflects the growth of Chinas middle class;

it reflects significant foreign investment in these sectors;

it also reflects the increasing importance of these sectors to Chinas overall economic performance including performance ininternational export markets.



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As one of the fastest growing industrial design sectors, foreign and domestic companies and policy makers are pressing for further

development in the automotive design industry

Increasing demand for Chinese-manufactured cars and car parts has driven booming exports and productivity:

China has a total of 10m vehicles to date; 4.2m vehicles were produced in 2003 making it the 4th largest auto producer in the world.

This demand not just for automobiles but also for components, is increasingly from foreign buyers:

Chinese export of automobiles and components reached US$4.17bn (an increase of 34.4% YOY) in 2003;

export of automobiles and components is expected to reach $15-20bn by 2005;

2,849 cars were exported in 2003 (an increase of 194% YOY);

Chinese automobiles and components have been exported to over 100 countries 14 of which produce export revenues exceeding

$100m;

China has enjoyed traditional export advantages for car stereos, tires and engine parts; high-tech components with added value haveincreased in the past 2 years due to an increased number of foreign auto-design and technology investment activities in Chinesemanufacturing hubs.

Bo Xilai, recently appointedMinister of MoFCOM, has recently commented that although production and export of Chinese automobiles andcomponents has sustained highgrowth in recent years, it still only accounts for a small proportion of the international market:

he suggested that this is perhaps because most productions and exports are still low-end ones there needs to be a greater effort toimprove quality through automobile design technology.

Zone 3 Industrial Design Automotives


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In addition to exports increasing the demand for more automobile design; domestic quality inspectors are pressuring manufacturers to

further develop automotive design:

the State Bureau of Quality and Technical Supervision (SBQTS) promulgated an automobile recall regulation in March this year:

according to Liu Zhaobing, Director of the SBQTS Quality Examination Department, there needs to a greater focus on automobiledesign and production;

the recall regulation was introduced not just because of the overall lack of research and development in automobile design, butalso due to a growing number of complaints from domestic and foreign buyers:

according to the China Consumers Association, over 50% (or 3,945) of the 5,651 complaints last year focused onquality, a result of poor design developments in the industry;

problems lie in outdated technology (which has impeded the upgrading of automobile products), the lack of suitableequipment and qualified technicians to judge design quality;

in addition, there are a number of redundant administrative departments which are understood to have difficulty incoordinating multiple responsibilities which has led to a lack of accountability for design, management, production andquality monitoring.

Steps are being taken to improve the deficiencies in automobile design:

according to Wang Xianzhong, in charge of quality at SBQTS, the bureau will establish an expert committee of qualified (foreign anddomestic) organizations and professionals to engage in automobile examination and research & development in design.

Automobile producers support this effort:

Guangzhou Honda, the first automobile manufacturer to support the SBQTS quality control promulgation commented that such a movewould serve as a milestone in the development of China s auto industry;

other supporters include Shanghai GM, Ford China and Dongfeng Citroen.



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Chinas leading automotive manufacturers are:

First Automotive Works, located in Changchun;

Shanghai Automotive Industry Corporation;

Dongfeng Auto, located in Chongqing.

Together these 3 companies make up around 70% of production.

A significant proportion of domestic manufacturing capacity is jointly held by Chinese and foreign auto manufacturers

Major international investors include GM, Ford and Volkswagen:

GMs main partnership is with the Shanghai Automotive Industry Corporation (SAIC):

GM and SAIC have a jv with Wuling Motor Company in Guangxi province (established 2001);

GM and SAIC also have a jv with Shandong Auto (established Dec 2002);

GM, Shanghai GM and SAIC acquired Shandong Yantai Bodywork Company Ltd in 2002; and established a company calledSGM-Dongyue;

GM also has a separate joint venture with First Automotive Works Jinbei in Shenyang (established in 1999)

Almost all of Chinas automotive manufacturers have entered into some form of joint venture arrangement

In almost every case, access to engineering design was a major driver in seeking outside investment with foreign partners providing designsand design input to modify western units for domestic or regional consumption.



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Increasingly, however, Chinese (including China-foreign joint venture) auto manufacturers are exploring design services

In some cases, joint venture businesses have established automotive design companies:

one example is the Pan-Asia Technical Automotive Centre (PATAC), established by GM and the Shanghai Automobile Industry Corporationthis is a 50:50 joint venture between GM and SAIC;

PATACwas set up with a US$50m investment form GM and SAIC;

PATACprovides design services for both GM and SAIC it also offers design services to third parties.

Founded in 1997, the Centre has over 600 design employees, of which the majority are Chinese:

designers are predominately Chinese, including a high percentage of Chinese returnees.

Chinese designers are trained at GM design and engineering centres in Australia, Germany and the US; the company sends designers to theCentre to give and receive training.

PATACsfirst car designed for the China market (Kunpengminivan), was exhibited at the 2003 International Automobile Exhibition held inShanghai:

also launched in 2003 was PATACs Excelle originally manufactured for the export market.

GM China Investment Company is not yet producing cars for export, but reportedly plans to do so in the future.



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In other cases, design collaborations have been established by wholly Chinese-owned manufacturers

Hafei Motor Company (a subsidiary of the Hafei Aircraft Industry Group) is owned by the Chinese Ministry of Aviation; it is based in Harbinand is ranked as one of the five largest automotive manufacturers in China;

Hafei has worked with Italian designers Bertone, I.De.A Institute, Italdesign-Giugiaro and Pininfarina (the first Italian design house to supplyservices to the Chinese automobile industry), for a number of years, accessing design talents which have delivered models forFerrari and Alpha-Romeo;

the Hafei/ Pininfarina partnership (established in 1996) was based upon the supply ofPininfarina design to Hafei manufactured cars;

after the initial success of this partnership other Turin-based design houses have explored supplying automotive design to China;

there are now more than 15 new car models based on Turin designs in development in China to date.

Hafei/ Pininfarinas first jointly-designed automobile was the Zhongyicompact minivan which was on display at the Beijing International AutoExhibition in 2000; followed by the 2002 Lobohatchback; the HF Fantasyin 2002 and the Enjoyin 2003.

the collaboration has won strong domestic praise:

the leading European automobile magazine Automotor & Sports, brought its annual the Best Carsaward to China in 2001 theLobowon Best Minicaraward that year.



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The Changan Automotive Technology Design Centre has 400 designers all Chinese

The in-house design team has worked on four car designs with both Italy and German designers:

1st project Changan assisted;

2nd project Changan was responsible for 30% of the design;

3rd and 4th projects were developed jointly;

Changan estimates the cost of developing a car to be US$10m;

Changan have used outhouse design teams for external and interior design work;

Changan is also looking very carefully at the export market and will export its jointly developed cars in the future;

the company has a number of joint ventures with foreign auto manufacturers including Ford and Suzuki.

Not surprisingly, international design teams are exploring opportunities in China

Lotus Engineering have established a presence in Shanghai to support engineering design (styling may be considered at a subsequent date);

the Shanghai-based team includes UK and Chinese designers it has already secured design contracts and appears highly optimisticabout its future.



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China has a significant consumer electronics manufacturing industry

Chinese manufacturers are now dominant in a number of key consumer electronic industries; they hold significant (and improving)positions in many others:

38% of the worlds televisions; 42% of the worlds computer monitors; 70% of the worlds radios; over 50% of the worlds cameras; 30% of the worlds air conditioners; 16% of the worlds refrigerators; mobile phone productions estimated at 182m in 2003 and expected to reach 170m in 2004.

A significant proportion of this industry is foreign-invested

An estimated 15% of Chinas consumer electronics products are manufactured by joint venture businesses with foreign partners representing both

regional (Hong Kong, Taiwan, Japan and Korea) investors as well as US, European and UK:

this represents a total foreign investment of US$70bn through over 10,000 foreign invested companies.

Much of the industry is concentrated in Southern China: Guangdong, Shenzhen,Jiangsu and Zhejiang.

Initially largely focused on the manufacturing of foreign-designed products (foreign-partner products in JVs or OEM arrangements), Chinas

consumer electronics industry is now shifting to the development of independent brands in pursuit of international markets

Leading Chinese brands in the consumer electronics products sector include:

Haier (white goods); Lenovo (computers); Changhong (TVs); Ningbo Bird (mobile phones).

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In Chinas consumer electronics manufacturing industry, competition is high and margins are tight

in principle, this puts a heavy price pressure on design;

conversely, it also elevates the importance of design as competitors are forced to seek differentiation on points other than price.

Anecdotal evidence supported by logic and by indicative survey work undertaken by the Hong Kong government indicates that demand forexternal design services is likely to be highest among medium and large-sized Chinese companies targeting international markets.

The majority of these businesses appear to maintain significant in-house design teams but to work with external design expertise in order toaccess cutting edge design skills and to strengthen the reliability of design performance.

Such evidence also indicates that, by and large, many of these businesses are unfamiliar with the range of external design capabilities availableand that natural competitive advantages will accrue to regional businesses who are able to provide services within close geographical proximitywith a shared language, a familiarity with local and regional export markets, and a recognition of the importance of cost:

Hong Kong scores particularly highly on all of these criteria and the indications are that a significant and growing number of Hong Kongdesigners are providing cross-border services, effectively seen as part of the greater Chinese economy but benefiting from a proventrack record in international markets.

Again, approaches to design are best illustrated through practical example: the following three profiles illustrate typical approaches to design (in-house and external) in Chinas consumer electronics product sector.

We have selected:

Lenovo, a Chinese PC manufacturer;

Philips Electronics, a joint venture manufacturer;

Ningbo Bird Co., Ltd, a Chinese mobile phone manufacturer.



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Lenovo (Legend) and Philips China, provide an illustration of major manufacturers approaches (domestic and international) to

design

Lenovo is a PRC SOE, established by the Chinese Academy of Sciences; it has a subsidiary listed on the Hong Kong Stock Exchange

The company has approximately 30% of the PRC market in computers and a growing share of international markets:

in 2002 Legend computers accounted for 12% of the Asia Pacific market (excluding Japan).

Lenovo has many jointly established R&D centres in China:

the Beijing Lenovo Research Institute (established in 1998), includes a software development centre and an industrial design centre(as well as a number of research labs);

the Shanghai Lenovo Board and Card Design Centre (established in 2002), includes design of IC boards which are used inLenovos mobile phones, PCs and network terminals;

it has jointly established the Intel-Lenovo Technology Advancement Centre (Beijing, established in 2003), focused on designingleading edge computer-based products;

the centre has an in-house design team of over 80 and tends to recruit locally (including Chinese returnees).

Lenovo claims to use only in-house design.



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Philips China Group has joint ventures in lighting, electronics and medical equipment; it has its own design company; it also uses

global Philips Design teams:

The company has 3 offices in Greater China (Hong Kong, Singapore and Taiwan):

Philips China has in-house design teams with over 300 designers responsible for a wide range of (but not all) Philips products;

Where required, out-house domestic design teams with well established track records are used;

It recruits domestically from leading universities which are close to its manufacturing centres.

In China, Philipsglobal design teams are also used principally forinteriorproduct design; and Philipslocal design teams are being usedforexteriorproduct design.

Philips favours strong in-house design teams that operate globally; the company believes that there are fundamental differences betweenEuropean and Asian design and that exchange is the best way to learn:

as a result, it advocates frequent overseas exchanges and has established a High-Tech Campus in Eindhoven which is used to trainChinese designers.



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Ningbo Bird Company is a Chinese mobile phone manufacturer (OEM and now its own brand); it was established five years abo, being one of

the first Chinese mobile phone makers to access the European market and is now the leading exporter to European countries includingFinland, France and Italy:

according to the General Administration of Customs (GAC), Ningbo Bird exported 480,000 mobile phones in 2003 which valued atUS$50m;

the company expects to export 2m mobile phones this year reaching revenues at US$200m;

it is now focusing on R&D in design supported by European companies such as Nokia and Motorola:

as a result of increased R&D in design, Ningbo Bird passed the quality test of the European Union, the CE certification(regarding safety, sanitation and environmental and consumer protection).

Ningbo Bird is understood to export 70% of its mobile phones under its own brand (Ningbo Company) in European markets:

Ningbo Bird expects Italy and Hungary to replace Hong Kong and Malaysia as main export destinations in 2004.

Other mobile phone manufacturers are following suit, they include: TCL, Kejian and Hisense all have a particular focus on exporting to

Southeast Asia.

Ningbo Bird has offices in Southeast Asia, Russia and India.



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Zone 4

Architecture4

Zone 4 Architecture


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Chinas urban renewal has achieved almost legendary proportions

The total (2003) value of the countrys construction industry is estimated by the State Statistics Bureau at US$26 bn (an increase of 23% over2002).

China is now the worlds largest importer of basic building materials more than 36% of the worlds steel and 55% of the worlds concrete.

In addition to the general buildof the country, key municipalities are pursuing major milestone projects:

Beijings hosting of the Olympics is expected to create US$2.2bn worth of investment in Olympic venues (including new stadiums andrefurbished stadiums, not including training facilities);

Shanghais hosting of the 2010 International Expois expected to lead to US$3bn investment in the expo site and an additional US$20bnin related infrastructure investment.

Major flagships are being built often as a source of national and/or local pride; examples include::

the new Bank of China Headquarters, Beijing; the Grand Theatre, Beijing; the Industrial and Commercial Bank of China (ICBC), Beijing; the Shanghai Science and Technology Museum.

Chinas architects are represented by the Architectural Society of China

This organisation provides policy input to government as well as providing support to the industry:

it has professional relationships with architectural institutes around the world including the Royal Institute of British Architects.

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The ambition of Chinas architectural projects and the global attention which such projects are drawing is developing a new sense

of self-awareness within Chinas architectural profession; and a rising appreciation of architecture among the population at large

This has been accelerated by flagship projects which have attracted the worlds leading architects many of whom (including Rem Koolhaas,architect appointed for the prestigious CCTV Tower) have made significant commitments to a long-term engagement with Chinas redevelopmentprojects and with its centres of learning.

Not surprisingly, Chinas architecture profession is expanding:

China has established significant architectural institutes and schools:

one of the best known is Qinghua Universitys School of Architecture:

it has strong links with Harvard and MIT and with schools of architecture and planning in Paris; links with the UK appear to have beenlimited and challenged by funding difficulties.

Many of the best students (as in design) study abroad at post-graduate level:

until recently, most top level students tended to choose the US for postgraduate studies at Harvard, MIT, Yale, UPenn, UC Berkley andPrinceton;

partly as a result of hardening US visa policies, attention is now shifting to Europe and the UK:

destinations include London Bartlett School of Architecture, University of Sheffield and University of Edinburgh.

Many, if not most, of these students, return to China where they exercise a strong influence on the profession:

one of Chinas most famous returnee architects is Zhang Yonghe, now Professor of the Peking University Architecture Centre:

Zhang, who is also founder of the Feichang Architecture Studio, studied at Berkeley in the early 1980s.

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According to the MoCON, China is estimated to have some 11,000 architectural design enterpriseswith 2002 revenues estimated at

US$11.28bn

Approximately 85% of these are understood to be SOEs.

There are an estimated 130 independent domestic architecture design practices.

There are also over 120 architectural design joint ventures:

it is common to see contractual design arrangements which are established on a project by project basis;

there are at present, no wholly foreign-owned architecture practices a number of Sino-foreign contractual collaborations on project-by-project basis are however common:

as a result of CEPA, Hong Kong and Mainland companies have a significant advantage in being able to set up joint ventures andWFOEs.

There is no (present) mutual recognition for architectural qualifications between UK and China; this is presently being addressed.

Chinas architects are also represented by the National Administration Board for Architectural Registration (NABAR):

NABAR is the lead body working on the mutual recognition of architectural qualifications between China and other countries, includingthe UK.

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Chinas capital, Beijing, is already home to some of the countrys most famous/flagship architectural projects

Many of these have been driven by city planners but some have been promoted by independent entities keen to develop an awareness ofarchitecture and its impact on contemporary life.

Major completed commercial projects include:

Oriental Plaza, a Li Kai Shing project, completed in 2003:

it covers an area of 100,000 m at an estimated cost of US$2bn; and it took almost 10 years to complete;

SOHO New Town, developed by SOHO (husband and wife team, Pan Shiyi and Cambridge graduate Zhang Xin):

it covers an area of 100,000 m , and represents a pioneering concept for the capital (i.e. the idea of living and working in 1 place);it was completed in 2001 at an estimated cost of US$4.8m.

The Commune by the Great Wall, again developed by Pan Shiyi and Zhang Xin:

the project features 11 Asian (including 5 Chinese 2 from mainland China, 2 from Hong Kong, and 1 from Taiwan) architects whowere commissioned to build luxury homes in a location near the Great Wall, with the idea of creating the best in architecture in the

best of surroundingsthe Great Wall is a UNESCOs Cultural Heritage Site;

it was the first Chinese architectural project to be invited to the Venice Biennale (it received an Innovation Award);

it is now a leading location for cultural and corporate events.

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Major municipal projects currently under construction include the development of the Central Business District (CBD), BeijingsFinancial Street and the new Beijing Capital Terminal

the Beijing Financial Street(BFS) covers an area of approximately 1.03 km :

it is expected to house all of the capitals major financial institutions at an estimated budget of US$2.4bn, completion is scheduledfor 2006.

key buildings in the district have been designed by both Chinese and foreign architects:

Fukai Plazawas designed by China Architectural Design Research Institute.

the new Industrial and Commercial Bank of China headquarters were designed by Brian Lee ofSOM (US);

the Beijing Airport Terminal IIIproject is a US$2bn project, covering an area of 428,000 m :

it is expected to take passenger capacity at the Capital Airportfrom 27 to 60 m passengers per annum;

it was awarded to Norman Foster & Partners (with a strong element of environmental efficiency).

Flagship buildings are also being commissioned by leading Chinese entities headquartered in the capital

the new headquarters forCCTV is among the most significant:

a 553,000 square metre building, built to accommodate 10,000 staff with all the functions of a national broadcaster from production

to newsroom studios and business management;

it will house a public theatre, a hotel, exhibition facilities and a visitors centre;

total construction cost is estimated at US$750m; completion is scheduled pre 2008.

the architectural commission was awarded to Rem KoolhaasOMA (who have also been awarded the second phase SOHO City project);

Koolhaas describes the design as a prototype for thehyper building

.

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The centrepiece of Beijings present architectural focus is of course the Olympics

The overall project is being co-ordinated by the Beijing Municipal Development and Reform Commission at an estimated budget of US$34bn.

According to the Beijing Organising Committee of the XXIX Olympiad (BOCOG), the estimated overall investment in Olympic venues (includingnew stadiums and refurbished stadiums, not including training facilities) is US$2.2bn.

The Olympic project centres around 35 stadia (the Olympic venues) which fall under the immediate responsibility of the BOCOG and the StateGeneral Administration of Sport (SGAS Chinas Sports Ministry).

A number of the venues have already held design competitions, with architectural commissions going to both Chinese and international firms:

the Olympic Parkfor example will be designed by Sasaki (US; also awarded the Wukesong Cultural Sports Centre) and the Tianjin-based Huahui Project Architecture Design Company;

the National Stadium(the main stadium) has been awarded to Swiss architects Jacques Herzog and Pierre de Meuron, they will work

with the Aoyana Project Consulting Company and the China Architectural Design Research Institute;

the Beijing Shooting Stadiumwill be designed by Qinghua Universitys Architectural Design Research Institute.

At the same time, the Beijing Municipal Government is understood to be planning a cutting edge information centre to be known as the OlympicDigital World:

it coincides with Beijings roll-out of digital TV (see TV sector under main report) as well as the finalisation of an ambitious project toestablish major e-government, e-commerce and e-education platforms;

it is expected to incorporate state of the art technology, data and information resource facilities.

This concept appears to be at a very initial stage of development; to the best of our knowledge, no specific information concerning tendering hasyet been released.

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Chinasstylecapital, Shanghai, has pursued a number of famous/flagship projects and plans to develop many more.

Again, many of these have been driven by city planners but some have been promoted by independent entities keen to develop an awareness ofarchitectural style including an awareness of Shanghais architectural heritage.

Major municipal projects include:

redevelopment of both banks of the Huangpu River, including the iconic Bund; the XintiandiMetropolitan Area;

the Three-on-the-BundMetropolitan Area; and Shanghais Expo 2010.

The Huangpu Redevelopment Projectis managed by the Shanghai Huangpu River Development Office, a Project Office set up by theShanghai Municipal government in 2002 to run the project.

The Bund RedevelopmentProjects budget is estimated to be US$12.1bn for a major stretch of the Huangpu River a total area of 74 kmstretching from the Wusong Port in the North to the Xupu Bridge in the South;

the project is designed to bring the Huangpu River back as a key feature of Shanghai (as opposed to the perceived obstacle that it hasbecome to traffic wanting to cross from Puxi to Pudong) while also emphasising the historic buildings which line its bank along the Bund;

the area will include hotels, shops, offices, residential accommodation and a significant proportion of green space including a park;

it will also include an international cruise ship terminal at the North Bund;

it will also include the redevelopment of the Shanghai Shipyard;

at the southernmost point, it will touch the Nanpu Bridge Area at the northernmost point, it will touch the site for the 2010 Expo;

The Project is at a very early stage; its Project Office is currently setting up a website and communication and information systems to prepare forintroduction to the project and for tendering (planned for end of 2004);

the Management and Co-ordination Division of the Project Office is responsible for international liaison and co-operation.

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Shanghais Xintiandi(New Earth and Heaven), is one of Chinas most successful redevelopment projects:

Xintiandihas an area of 60,000 m ;

designed by Boston-based architects Wood and Zapata in 2001, it took the traditional Shikumendwellings and converted them into amaze of shops, bars, restaurants and art galleries;

total investment is estimated at US$150m;

Shanghais Three-on-the-Bund, is an art, fashion, food and music centre built on an historical landmark on the Huangpu River-side:

Three-on-the-Bund is set in a 1916 post-renaissance building in the French Concessionsection of Shanghais Bundarea;

the restored building which covers 7 stories and 13,000 m - is home to the Shanghai Gallery of Art, retail stores, beauty spas andrestaurants;

American architect, Michael Graves, designed the buildings restoration work and Alan Chan (a Chinese graphic designer who alsodesigned the Evian Day Spaand the Whampoa Club both which are located in Three-on-the-Bund), designed the buildings interior.

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The centrepiece of Shanghais future architectural focus is likely to be the Shanghai International Expo 2010

The Expo is being developed by the Shanghai Municipal Governments Expo Bureau; shareholders are:

Shanghai State-owned Assets Supervision and Administration Commission (SASAC);

Shanghai State Assets Operation Company Ltd;

Shanghai Media Entertainment Group (SMEG);

Shanghai International Trade Promotion Committee.

The project is expected to require a total budget of US$3bn.

it will cover a 4 km site, embracing an Expo Parkand Village with associated parking and public transport;

an international seminar looking at the planning and designing of the Expowill take place in April; it will include visits to the site and groupdiscussions.

At the same time, Shanghai is also giving some thought to a digital city concept of its own

The original idea was to build a Digital City in Pudong Shanghais new economic development zone across the Huangpu River and host to the2010 Expo:

the concept went beyond the idea of a technology centre to embrace a cluster concept bringing together international and domesticdesigners engaged in all aspects of digital design:

the project has yet to be finalised stumbling blocks appear to include the extremely high cost of land in Shanghai (both absolutelyand relative to regional neighbours such as Suzhou which also has digital design clusters).


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Zone 5

Key Points for Growing UK Value5



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A general description of key points for growing UK value can be found in Zone 4 of the main report.



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The very approach that we have taken to this report illustrates the need for a specific approach to the design industry certainly forChina; possibly for other markets too

The range of value activity conducted under this umbrella is vast and China lacks the institutions (forged over considerable periods of time in theUK) to provide an effective single interface fordesign.

There is also a clear need for prioritisation:

Some sectors of design brand identity for example possibly need little or no help; they may however be in a position to help other elements of

the UK design sector.

Other sectors such as industrial design and architecture, not only need support, but the support which they receive could have a significantpositive impact on perceptions of the UK across the board with benefits well beyond the immediate commercial value of an individualcommission.

In terms of support, our view, based on a wide range of primary and secondary research across the board, is that a combination of design,

neighbourhoods (design equivalents to the corporate and creative neighbourhoods discussed in Zone 2 of the main report) and mapping wouldbear particular fruit.

Particular opportunities exist to promote UK industrial design to support Chinas expanding position in international consumer product markets:

some of these opportunities may be best and most successfully exploited by strengthening collaboration between UK (and otherinternational) industry which is investing in China and which is, in many cases, either influencing or in a position to influence, design

choices.

For direct approaches to Chinese industry, we strongly recommend that the UK Trade & Investment consider (once priorities have been set) aseries of mapping exercises, designed to include qualitative as well as quantitative input, to identify key (present and likely future) Chineseindustry consumers of design this should be structured to determine the nature of their needs, the likely size and structure of their budgets, andtheir possible role as flagshipsfor other industry.



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Opportunities also clearly exist and have been developed by UK architects to support Chinas investment in urban development and renewal.

Additional opportunities seem likely to exist beyond single architectural projects, for the development of urban areas and for the hard and soft

wiringof digital and (to use the Chinese term) culturalcities indeed, that the UK may have unique capabilities and opportunities for such a co-ordinated approach.

Overall, we also believe that rising interest in design and in urban renewal are creating interesting and important opportunities for the building of

creative cities an area in which the UK has significant experience. We believe that these opportunities should be explored.

We also recommend that very careful consideration be given to the range of educational and training products and services that theUK holds

Anecdotal evidence indicates that the UK is already recognised as a major source of design learning.

Experience in other sectors shows that attachments forged through education in a foreign country can shape choices throughout a career andthat in the case of some careers, those choices extend beyond individual professional development, to the shaping of national policies andpreferences.

We suggest that all of these ideas be explored initially in a Roundtable Discussion between the UK Trade & Investments Creative & Media ExportUnit and the FCO in China with subsequent consideration being given to the development of initiatives for specific priority sectors whosedevelopment in China most strongly benefits from government support and brings the maximum positive value for perceptions of UK strengths inthe China market.


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Appendices6

Appendix Design Contacts for Non Government Entities


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Industrial Design (Automobile & Consumer Electronics)

Gathering together vehicle and parts manufacturers for discussions concerning industry issues and trends Information hub for national policies and regulations

Observation of market trends and product quality

China Association ofAutomobile Manufacturers

Promotion of Guangzhou s design innovation Provide more added value services for the innovative design, and promotes economic development

Guangzhou Industrial DesignPromotion Organization

Assists enterprises to improve value-add products and balance market competitionBeijing Industrial Design Centre

One of the earliest industrial design associations in China Establishing professional committees for different aspects of industrial design, such as product design, graphic design,packaging design,

layout design, logo design and CIS etc

Shenzhen Industrial DesignAssociation

Promotion of Shanghai s design innovation

Provide more added value services for the innovative design, and promotes economic development

Shanghai Industrial Design

Promotion Organization

Development of China s industrial design industry Assists enterprises to compete by advising on the value of design Promote economic development and progress of society

China Industrial DesignAssociation

Organization of all industrial design-related bodies, organizations, professionals and those interested in industrial design Promotional activities for industrial product design, space environment design and visual design

Beijing Industrial DesignPromotion Organization

ResponsibilitiesNon-Government Entities

Architecture Design

Appendix Design Contacts for Government and Non Government Entities


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Carrying out policies relating to the building and decoration industry, assisting State Council administrative departments to manage thebuilding decoration industry

Research and policy input Legislation for related government departments taking part in the drafting of relevant legislation for related government departments Development of new technologies for the industry Training of professional staff

China Building DecorationAssociation

Provide services to government macro decision-making entities and enterprise businesses

Development of the national interior decoration industry

China Interior Decoration

Association

Regional construction project supervision City/provincial planning Construction equipment use management

Approval of construction firms wishing to engage in construction projects

Provincial, MunicipalConstruction Commissions

Approval of architectural firms wishing to engage in architectural design projects Management of municipal planning

Provincial, PlanningCommissions

Carrying out national architecture policy and popularisation via activities Editing and publishing of periodicals in academic and technological fields Consultant for important scientific and technological issues and projects

Organization of international academic changes

Architecture Society Of China

Reports to the Ministry of Construction Research into the science of residential environments and development of domestic business Consultancy service for policy and technology skills relating to the human living environment Provides the same service to local government Holds international and domestic services Provision of education and training on residential environment issues

China Real Estate HousingResearch Institute,People andEnvironmental Committee

Issuing of national policies and regulations for the construction market Supervision of national or regional construction projects throughout China Issuing of certification and criteria on construction safety and quality

Ministry of Construction


ResponsibilitiesGovernment Entities

Architecture Design

A hit t D i

Appendix Design Contacts for Government and Non Government Entities


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Promotion of the reform of design management systems Publicity and carrying out of the GB/T 19000 ISO 9000 standards Training of professional staff International communication and collaboration International research and forums

China Reconnaissance DesignAssociation,ArchitectureDesign Sub-committee


Architecture Design

Appendix Design Events and Exhibitions

E t d E hibiti


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WuxiOrganiser: China Industry Design Association, Jiangsu Science & Technology Department, WuxiGovernment, Wuxi Science and Technology BureauContact:[email protected]: 86 (0)510 2712771

2004 China Industry DesignWeek. Wuxi

ShanghaiOrganiser: Shanghai Foreign Science & Technology Exchanging Centre, Shanghai Industry Design

Promotion OrganizationContact: Ms. Lu PingTel: 86 (0)21 64712180

Shanghai Annual International

Design Innovation Forum andExhibition

NingboOrganiser: China Mechanical Engineering Society, Industrial Design Branch, Ningbo Government, NingboScience & Technology Association, Ningbo Industrial Design SocietyContact: [email protected]: 86 (0)571 85957353Fax: 86 (0)571 87951947

International Industrial DesignForum & the Annual NationalIndustry Design AcademicMeeting

ZhejiangOrganiser: Jiejiang Provincial Architecture Decoration Association

Contact: Sun WeiTel: 86(0)571 88399377

The International Building &

Decoration Trade Fair

BeijingOrganiser: Beijing Municipal Construction Commission,Ministry of Technology Beijing Sino-ForeignTechnology Communication CentreContact: Fang TingTel: 86(0)10 64173867Fax: 86(0)10 64173867

Beijing International CityLandscape and ArchitectureDesign Exhibition

BeijingOrganiser: Ministry of Science and Technology, Ministry of Commerce, Ministry of Education and Ministry ofInformation Industrial, Beijing Government, State Intellectual Property OfficeContact: [email protected]: 86 (0)10 8200 2055Fax: 86 (0)10 8200 4066

Beijing International DesignExhibition

BeijingOrganiser: Design Committee of China Packaging Technology AssociationContact: Chen HaihuiTel: 86 (0)10 6583 1735

Annual CIDE

LocationOrganiser and Contact DetailsExhibition

Events and Exhibitions

Appendix Design Events and Exhibitions

Events and Exhibitions


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ShanghaiOrganiser: China Architecture Association, Shanghai Gardens Group, China Academy of ScienceContact Chen XiaojuanTel: 86 (0)21 62188063

Fax: 86 (0)21 62187186

2004 China (International)Gardens Technology and CityLandscape Exhibition & Forum

ShanghaiO

Documents

Design Report China