Survival Tactics: Taking the Manx Message to the World

Tier 2: China – a case studyTim Craine

Department of Economic Development

China – Background and progress

• History of engagement going back to 2004 when the Chief Minister, DTI Minister & Education Minister visited

• Successes in 2004:- most favoured nation status for shipping – reduced port tax- recognition of educational establishments - opportunities for KWC- stopping counterfeiting of Strix technology – protection of IP

• Inconsistent approach after this visit

• 2010 Development Research Council (DRC) report on the IOM

• 2011 Country Strategy - recruitment of Michael Charlton

• Formation of Focus Group

China – Background and progress

• Identification of existing China – Isle of Man links:

- Strix – 3 factories in Guangzhou – 80% of the global market- Shipping – 54 ships at 19 different ship yards- Rhesus Health Care – health care products & health related IT solutions

• Propositions defined:- Import/Export Model – USP + JeffriesGreenhouse- Capital Markets- Wealth Management

• Exploratory visit August/September 2011 to test propositions & re-establish links with the Chinese Government

China – Background and progress

• Meetings with key Chinese Ministries:- Chinese Peoples Association for Friendship with Foreign Countries

• (CPAFFC)- National Development and Reform Committee (NDRC)- State Owned Assets Supervision and Administration

Commission (SASAC)

- Ministry of Commerce (MOFCOM)- China Banking Regulatory Commission (CRBC)- China Council for the Promotion of International Trade

(CCPIT)• Meetings with KPMG, PWC & Deloitte• Meetings with: Allbright, Pinsent Masons, DLA Piper,

ReedSmith & Jun He

China – outcomes

• Need for case studies and or modelling• Bench marking – IOM versus Cayman, BVI etc• Refine propositions further – import/export No.1• Key intermediaries & channels to markets• Goodwill and endorsements from key Ministries• Contact with a Chinese billionaire who heads up a

Chinese entrepreneurs club – has visited IOM already

• Return trip 19 October – 6th November, Beijing, Shanghai, Hong Kong & Singapore

• Looking at a permanent rep/office + regular visits

Other interesting outcomes

• Most Chinese entrepreneurs who are influential mid-50’s & don’t speak much English

• Must establish trust, commitment & relationships which takes time & money

• Opportunities for Chinese banks to establish branches on the Island

• No awareness of the Isle of Man but very familiar with Cayman, BVI, Mauritius & Hong Kong

• Herd mentality• Found the “foot prints” of Jersey & Guernsey