ITEM NO.
REPORT OF THE ASSISTANT DIRECTOR OF ECONOMIC DEVELOPMENT
TO LEAD MEMBER BRIEFING
(CHIEF EXECUTIVE DIRECTORATE)
10th July 2006
TITLE: Trade Mission to Chengdu/Jinniu. People’s Republic of China
RECOMMENDATIONS: Members are requested to:

Agree to a small Salford delegation comprising Members, Officers and businesses joining
the North West Trade Mission to China in October 2006.

Agree to meet all associated costs of the trade mission in relation to Members and
Officers from Local Authority Business Growth Initiative (LABGI 2006/07)
EXECUTIVE SUMMARY:
Salford City Council has been invited to send a return delegation to Jinniu, a district of Chengdu
in Sichuan Province, China. This report updates members on the current links with Chengdu and
sets out two alternative ways to develop these links.
BACKGROUND DOCUMENTS: (Available for public inspection)
Report of Leader of the Council and Lead Member, Chief Executives Directorate, dated 24th
February 2006 “Salford University China Office”.
Chief Executives Lead Member Briefing dated 22nd August 2005 “Trade Mission from Salford City
Council to Jinniu”.
Briefing note from Salford University’s Associate Head of International Relations.
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ASSESSMENT OF RISK: Low
SOURCE OF FUNDING:
Local Authority Business Growth Incentive (LABGI)
COMMENTS OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT SERVICES
(or his representative):
1. LEGAL IMPLICATIONS
Provided by : N/A
2. FINANCIAL IMPLICATIONS
Provided by : N/A
CONTACT OFFICER:
Stuart Kitchen, Assistant Director of Economic Development 0161 793 3441
WARD(S) TO WHICH REPORT RELATE(S): All
KEY COUNCIL POLICIES:
Economic Development Strategy 2004-2007
DETAILS
1. Background
In June 2005 Salford City Council hosted a delegation from Jinniu, which is a district within
Chengdu. Chengdu is the capital of Sichuan Province, China. The visit culminated in the
signing of a Memorandum Of Understanding between the two cities. This Memorandum
signified the will of both cities to promote effective exchanges and cooperation in various
fields such as; economy, trade, urban planning, education, and with a view to achieving
common prosperity and development. Following the visit, the Mayor of Jinniu issued a
formal invitation to the Leader and Deputy Leader of the Council to send a delegation from
Salford to Jinniu.
Additionally, collaboration between Salford City Council and Salford University has resulted
in the successful appointment of a Project Manager for the University of Salford and Salford
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City Council joint office within the China Britain Business Council in Chengdu. Salford City
Council has agreed to contribute £7,000 to the cost of this post for the first year and in return
will obtain assistance in developing business contacts. The Project Manager started on
Monday 26 June 2006.
To send a trade mission to Jinniu this year would signal the willingness of Salford City
Council to more fully examine the potential for economic development between the two
cities. It would also be quite timely, as the Project Manager of the recently established joint
China Office could help to facilitate and translate during a visit, and importantly – introduce
potential China/Salford businesses to each other. It would provide an opportunity to assess
potential business markets (such as environmental, high tech & IT), consolidate existing
links with leading officials in Jinniu and lay the foundation to develop a more holistic
relationship between the two cities, which could include cultural, community and educational
links. It would also help to establish Salford as the key representative of the Greater
Manchester region in Jinniu District, Chengdu City and the wider Sichuan province.
2. Options for Consideration
Council Officers have held discussions with staff from Business Link’s International Trade
Centre (ITC) on the best way to arrange a return delegation to Jinniu. During these
discussions it emerged that Business Link in conjunction with the International Trade Centre
on Merseyside are in the advanced stages of organising the North West Trade Mission to
China in October 2006. Qualifying SME’s will be able to apply for £750 financial support
towards the mission via the Passport to International Trade scheme. Officers have obtained
costs from ITC to participate in the North West mission, on the assumption that the mission
to China would include Chengdu within the itinerary.
Option 1. North West Trade Mission

7 days – 28th October to 3rd November visiting Shanghai and a choice of Wuhan,
Chengdu, Zhaoqing and Hong Kong.

Delegates will fly out to Shanghai on Saturday 28th October arriving in China on Sunday
29th.

Monday 30th am - briefing with the British Consulate in Shanghai.

Monday 30th pm – delegates have the option of arranging their own appointments or to
attend a Greater Manchester Inward Investment seminar. This will be followed by an
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early evening reception organised by MIDAS which will provide delegates with the
opportunity to network

Tuesday 31st will be free for delegates to make their own arrangements / appointments in
Shanghai.

Wednesday 1st, the delegation will split up with local authorities visiting their friendship
links cities:
o
Manchester - Wuhan
o
Bolton - Zhaoqing
o
Bury - Datong (await confirmation)
o
Salford - Chengdu (await confirmation)
o
Rochdale – (await confirmation)
This would mean that Salford representatives would be in Chengdu from Wednesday 1st
November to Friday 3rd November, and would return to the UK on Friday evening or
Saturday morning depending on flight availability.
Approximate costs per delegate:
Flights:
£850
Accommodation (six nights) £480
£1330
N.B. The above costs exclude subsistence, insurance and other incidental costs which
should be budgeted at £40 per day per delegate.
Council Officers have also made contact with the Sheffield Chamber of Commerce who is in
the process of organising a business-to-business ‘match making’ event as part of an EU
sponsored initiative known as an EU – China Partenariat. This event will take place on the
9th – 10th November in Chengdu.
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Option 2. EU-China Partenariat
The EU-China Partenariat is a two-day business-to-business matchmaking event and will
take place on 9th – 10th November 2006, in Chengdu. The European Union (EU) financially
supports it. Companies do not pay anything to attend but they have to cover their own travel
and accommodation costs.
The local Chinese partners recruit companies in the agreed industry sectors, details are
published in a catalogue and on a website and European companies can select who they
wish to meet.
The EU funds the costs of the venue, the administration and arrangement of the
appointments and provides interpreters for all meetings.
Companies usually get a half hour meeting to establish potential contacts for their business.
The anticipated itinerary for this option would be:

6th Nov
Leave Manchester for Beijing via Amsterdam

7th Nov
Beijing to Chengdu

11th Nov
Leave Chengdu for Manchester via Beijing & Amsterdam.
Approximate costs per delegate:
Flights
£910
Accommodation (4 nights)
£320
£1230
N.B. The above costs exclude subsistence, insurance and other incidental costs which
should be budgeted at £40/day per delegate.
Salford City Council has allocated £10,000 via LABGI funding to forge greater links with
Chengdu. As mentioned earlier £7,000 will fund the joint office and £3,000 will be available
for the North West Trade Mission. This will cover the cost of 2 Council delegates –
companies will have to cover own costs but may be entitled to a £750 grant if eligible
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3. Comments on Options
If the City Council chose to go with option 1, the North West Delegation, rather than the
Partenariat:

This is a high profile trade mission and Salford would be part of a larger delegation
representing the North West of England. The fact that it is a North West delegation
means that we could expect greater impact / outcomes in relation to our objectives
for the visit.

There would be an opportunity to spend more time (1st – 3rd November) to develop
more productive links with potential investors.

There would be more time to develop relations with appropriate officials in Jinniu.

There would be the opportunity to meet the China Britain Business Council in
Chengdu and build a relationship with the newly appointed manager.
Chamber Link is the Greater Manchester partner with specialist knowledge of trading in
China, and they have offered the following advice on option 2, the EU the Partenariat:

Although they have arranged visits to coincide with Partenariats they have never
used them as the prime focus for a visit. In their opinion the Partenariat can offer
added value for a company who would already be out in the market. They offer a
chance to meet a lot of people but for very short durations (half an hour including
interpreting), and do not offer a more in-depth and tailored meeting programme.

Their previous experience of a Partenariat in China showed a number of companies
dropping out, substituted at the last minute with replacement companies that were
not properly screened and not ready / capable of working with European companies.

They felt that during the Partenariat it would be expected that high level officials in
Chengdu / Jinniu, (especially those who took part in the visit to Salford in June 05)
would be spending time as hosts to the EU officials. This could create difficulties for
the Salford delegation in terms of securing the most appropriate programme with
these officials.
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4. Promotion of the North West Trade Mission
On Friday 7th July 2006 Salford City Council, in collaboration with ChamberLink International
Trade Centre (ITC), held a Business Forum at the Digital World Centre Salford Quays. The
objective was to provide information and advice to local companies on trading with China
and specifically to promote the forthcoming Trade Mission to Chengdu.
The inclusion of companies from Salford (and other parts of the Manchester Sub Region) on
the trade mission will depend on the response to the above Business Forum and ongoing
marketing. The cut off date set by ChamberLink for companies to confirm their willingness to
join the Trade Mission is 31st July 2006.
5. Summary
There are two potential visits to China that are being arranged in the near future and we
have the choice to send officers, members and businesses, in any combination, to either
event. There is little difference between the costs of the two.
To join the North West Trade Mission would give Salford City Council an opportunity to
strengthen the existing links with Jinniu / Chengdu and meet to the newly appointed project
manager in the CBBC office. It would help in developing new contacts and include time for
the exploration of ideas on greater collaboration between the two cities.
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