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• From an idea, to a desk, to a fully fledged trade promotion body Hilary Footer charts the growth of the Sino-British Trade Council.
On 11th June 1954 16 men met at the Cannon Street offices of the London Chamber with two urgent agenda items on the table. First, they were tasked with making preparations for a party of Chinese to visit the UK later that month and, second, forming an association of representatives of manufacturers and buyers who would initiate and maintain direct contact with the Chinese authorities. Hardly revolutionary terms of reference, one might think, until you consider the background.
From its establishment in 1949 the Chinese government had embarked on a development programme which was tied politically and economically to a close relationship with the USSR and Eastern Europe. The Korean War (1950-1954) had seen Britain on the other side; relations between the British and Chinese governments were at best cool and sometimes stormy. There was an embargo on the supply of certain goods to China, which limited the possibilities for trade.
There were no Chinese diplomatic or commercial offices in Western Europe or the UK. However, in April 1954, at the conference in Geneva held to coincide with the end of the Korean War, the British prime minister, Anthony Eden, and Humphrey Trevelyan, the British charge d'affaires in Beijing, met Zhou Enlai, the Chinese premier. Soon after, Trevelyan and Peter Tennant, the overseas director of the Federation of British Industry (FBI), met the vice-minister for foreign trade, Lei Renmin. As a result, the Chinese government decided to upgrade Sino-British diplomatic relations by sending a charge d'affaires to London and, at the same time, agreed to an exchange of business visits.
Members of the Chinese Film Industry Group inspecting dubbing equipment at EMI/MGM Film Studios, Elstree June 1971, a visit organised by SBTC
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The four bodies which sent representatives to the meeting on 11th June were the China Association, the FBI, London Chamber of Commerce and the Association of British Chambers of Commerce. The idea was that the new body would be chaired by the presidents of each association in turn and all would provide administrative support and share the expenses. It was called the Sino-British Trade Committee.
An 11-strong delegation led by Cao Zhongshu, deputy director of China National Import and Export Corporation duly arrived on 28th June, and over the next 10 days visited two exhibitions, had meetings with 25 trade groups and business negotiations with 52 manufacturers and traders. The main sectors involved included chemicals, fertilisers, pharmaceuticals, wool tops and iron and steel.
Mr Cao invited a British party to reciprocate and a 37-man group visited Beijing in November ‘54 (agreeing £4m of business with the CNIEC). In June 1957 the Sino-British Trade Committee agreed with the Chinese commercial counsellor on an exchange programme of trade visits for the rest of the year. In September the committee was upgraded to a Council to reflect its increased importance to the UK businessmen and the Chinese; an economic and technical mission led by Dr Ji Chaoding, vice-chairman of China Council for the Promotion of International Trade was due to visit in October ‘57. The Sino-British Trade Council's first president was Sir Hugh Beaver, president of FBI, followed in 1961 by Lord Kilmarnock, president of London Chamber. Dr Ji later visited more than 200 factories, schools and research associations. His visit marked the start of the close working relationship with CCPIT that SBTC and its successors have always enjoyed.
In early 1961 the Board of Trade indicated that it wanted to see SBTC taking a more prominent part in the promotion of trade with China in the light of information that China might be prepared to purchase capital equipment from the UK rather than Eastern Europe, and that it should actively participate in the visits of Chinese trade corporations.
Later that year at the biannual Canton Fair (exhibiting Chinese goods to overseas buyers) John Keswick of the Hong Kong trading house Jardine Matheson, and chairman of the China Association, first made contact with SBTC. In 1963 it was John Keswick, backed by the SBTC, who employed Peter Marshall, a Chinese speaker, to make regular contacts with the Chinese commercial officials in London and to help prepare for the British Industrial Exhibition in Beijing in 1964 the following year, a huge logistical and diplomatic challenge.
Immediately after the exhibition, a monthly publication, Sino-British Trade (the forerunner of this publication), was launched to inform British business of developments and opportunities in China.
In late ‘64 Peter Marshall was provided with part-time office accommodation (i.e. a desk!) in the premises of CBI, with accounting assistance from the CBI. From 1964 to 1971 SBTC was associated with the British National Export Council, with responsibility for trade promotion for the PRC, and enjoying a financial contribution in return. But SBTC, though funded by BNEC, was kept at one remove from the status of a BNEC Area Committee and salaries continued to be paid via the CBI. This was a response to the sensitivity of relations with the People's Republic. Presidents, councils and staff enjoyed, from the outset, good working relationships with the Board of Trade and Foreign Office.
Promoting by exhibiting
SBTC's work in the ‘60s and ‘70s focused on the co-sponsoring and co-organisation of further large exhibitions in China. These were to be the British Industrial Technology Exhibition in Beijing 1973 and the British Machine Tools & Scientific Instruments Exhibition in Shanghai 1975. In each case, the SBTC president acted as president of the exhibition and the secretariat was provided by SBTC and British embassy staff.
Throughout these years SBTC was building its expertise and knowledge of Chinese industry and trade opportunities and providing the most appropriate fora for conducting business. From 1965 Peter Marshall was directed by the Council to attend the Canton Fair, where business enquiries were answered and information gleaned about Chinese requirements and capabilities, and about competitors' business deals. SBTC presence at the fair provided a focal point for British businessmen, particularly those new to the fair. Their attendance assumed even more significance during the difficult years of the Cultural Revolution when the Chinese declined to allow staff from the commercial office of the British embassy in Beijing to visit Guangzhou, and no exhibitions were taking place in China.
Meanwhile, in the UK, during the Cultural Revolution, SBTC maintained links with Chinese commercial staff. In September ‘69 Zhang Jianhua, a new commercial counsellor, was welcomed and a tour of the East Midlands organised for him. China Businessmen's Club evenings were launched in ‘67; these provided useful opportunities for British business to meet with Chinese embassy staff and representatives of the Chinese trade corporations with offices in London.
Outward visits to China were resumed in 1971, with Sir John Keswick visiting the Canton Fair and then proceeding to Shanghai, Hangzhou and Nanjing. In 1972 a similar mission led by Sir John was met by Zhou Enlai.
Lord Nelson, chairman of GEC, who succeeded Sir John as president, also led missions to China in ‘74 and ‘77 and attended exhibitions in ‘75 and ‘79. The mission in 1974 was notable for involving the presidents of CBI, LCCI and ABCC, three of SBTC's sponsors. In ‘77 Lord Nelson was accompanied by a business team with experience in complete plants (petrochemicals, oil, gas and chemicals), agricultural mechanisation, mining, railways, power generation and electronics.
By the late ‘70s SBTC was also offering a number of payable services to British business, including the monthly Sino-British Trade Review; Chinese industrial surveys with mailing addresses in China to which product literature could be sent; and the Chinese-language magazine British Industry, an all-technical quarterly about British products which was mailed to 10,000 addresses in China. SBTC also published other directories and guides. Throughout the ‘70s SBTC was involved in briefing businessmen about Chinese business culture and etiquette, and helping them to learn some basic Chinese.
From 1972 the SBTC assumed the status of an area advisory group (AAG) to the British Overseas Trade Board, which had succeeded the BNEC. All work was carried out by a staff of just seven (two of whom were secretarial). By 1978 SBTC had established itself as a business-led body helping to initiate and improve Chinese commercial relations and win business for Britain. Although receiving vital funding from the government, it was able to act at one step's remove from the government to suit the prevailing political conditions.
1978 – 1990
The need for discretion and separation was all but removed at the end of the 1970s with the downfall of the Gang of Four, the re-emergence of Deng Xiaoping, the launch of the ‘four modernisations' programme and the policy of opening up to the West. There were renewed business opportunities, particularly in the oil, telecoms, metal production, aerospace, electric power generation, chemicals and shipbuilding sectors. At the SBTC Mary Penn was appointed secretary-general (later director) and Bruce Hobson administrator.
In 1980 SBTC was once again actively involved in the organisation of the largest and most senior delegation ever to visit Farnborough Air Display as well as high-level visits to offshore oil fields and other energy installations. In December ‘84 SBTC mounted a major programme of offshore oil seminars in Beijing, Shanghai and Guangzhou. The main method of communication with Chinese-based entities at this time was by telex; fax and email were unheard of and telephone calls very expensive. In the winter of 1982 during his last mission to China as SBTC president, Lord Nelson had a televised meeting with Premier Zhao Ziyang.
Back at the London office the SBTC continued to inform British industry about the China market, highlighting trade opportunities and advising companies about the most effective ways of approaching the market. SBTC continued to host or co-sponsor Chinese missions, ministerial, provincial or technical. As an area advisory group, SBTC was called upon to brief outward BOTB-supported missions and to help, if requested, the chambers of commerce or trade associations with their own missions to China. SBTC helped initiate exhibitions of company catalogues in China from 1981.
Alongside the heightened demand for promotional activity in UK and China ran discussions with the BOTB about the role of all the AAGs. There was pressure on the SBTC secretariat to justify the grant received from the government (bigger than for any other AAG). In 1981, in an effort to raise extra revenue, SBTC launched an appeal to industry. Companies were asked to donate £100 each and renew the donation annually. These "sustaining subscriptions" continued throughout the decade. It was also decided to sell the ‘Business Opportunities' section of the Sino-British Trade Review, hitherto an insert, as a separate publication.
In 1983 SBTC was closely involved in the visit of Mme Chen Muhua, minister of foreign economic relations and trade. Senior officials of all SBTC's original sponsoring bodies were present at the associated business events.
Sir Peter Matthews (president 1983-85) set about streamlining the Council. He introduced sector committees on oil, coal, factory modernisation and agriculture. Sir Peter, who was also chairman of Vickers, headed up a senior mission to China with representatives from major companies including Lucas, Morgan Grenfell and Blue Circle. In June ‘84 SBTC hosted events for the visiting Chinese premier, Zhao Ziyang.
Sir Peter's successor, Sir Eric (later Lord) Sharp, chief executive of Cable & Wireless, was well known as one of the foremost industrialists of his generation. He trimmed the Council numbers and gave each member a special responsibility. He oversaw discussions in Council on important matters such as soft loans to China, the provision of credit cover for China and also UK's competitiveness in the China market.
SBTC's effectiveness and value for money were again closely examined in the mid-'80s by the Department of Trade & Industry. SBTC was able to show that the Council and secretariat had valuable views and experience to impart in the formulation of BOTB's China policy.
Close DTI/FCO/SBTC co-operation was strongly shown in 1986 when these organisations mounted trade seminars in Shanghai at the time of The Queen's visit to China (see Royal Visit, Grand Events). This was followed in 1987 by a Sino-British trade seminar in Tianjin.
Lord Sharp also supported Lord Young, secretary of state for trade & industry, on two of the latter's visits to China. The visit in ‘87 had a telecoms focus and was supported by Balfour Beatty, Shorts, British Aerospace and Hawker Siddeley, all of whom won business for the UK. Later that year the idea of the Prince and Princess of Wales visiting China was first mooted. It was decided to hold a large British exhibition in Beijing, to be opened by the royal couple, and SBTC began extensive preparations. However, after the events of June 1989 in Beijing it was decided to cancel the event. Both Lord Sharp and Mary Penn retired in 1990.
Two organisations merge
From the late ‘80s momentum had been growing to bring together the SBTC and The 48 Group of British Traders with China in order to avoid a duplication of effort in trade promotion, and to focus government resources more effectively. The 48 Group had a long-standing reputation in China, much experience of providing consultancy services to SMEs and the bonus of two existing offices in China, in Beijing and Shanghai. SBTC had a higher profile in UK and closer links with government and the larger firms and trade organisations. A merger was agreed, and the new China-Britain Trade Group opened in January 1991 (see Meeting of Minds).
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