Design Report China

Changing China - The Creative Industry Perspective: s A Market Analysis of China 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.
Claydon 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 information available 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 an indicative 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 & InvestmentCreative and Media s Export Unit. June, 2004.
Design
Executive Summary
Zone 1 Introductory Remarks The present report has been prepared as an accompaniment to a major report Changing China: The Creative Industry Perspective addressing a range of creative industries in China with a shared digital theme. it is designed to provide Creative & Media Export Unit with a perspective on the size and shape of the design sector in China. It is important to note that there are significant limitations in Chinamarket data environment significant gaps and contradictions between s sources; to the greatest extent possible, these have been resolved through primary interviews and cross-checking; the reliability of China market data is, however, a risk. Given limited time and resources and Chinahighly fragmented approach to the design sector, we have selected 2 areas which provide s perspectives on industry structure and approach; these two sectors industrial design and architecture - are also strategically significant for the UK: Chinastrengthening position in global manufacturing makes it an important s point of sale industrial designers around the world; while the for countryrapid economic growth is driving significant national and municipal investment in flagship architectural projects which will represent longs term testaments to the creativity of an individual architectcountry of origin. The selection of these two areas does not imply that opportunity for s the UK does not exist in other areas of design rather that such areas are either already being developed by UK business (sometimes offshore; sometimes through significant onshore investment); alternatively that UK government engagement is already underway (as, for example, in the arena of environmental design). Zone 2 China Context China economy is growing at a rapid pace, driven in part by the consumer spending of the 20-40 year olds, and in part by the rapid urbanisation s of Chinaeastern and southern coasts. s Design value activities fall under a number of ministerial agencies; to date, no co-ordinated mapping has been undertaken and data gathering is not harmonised across ministerial boundaries: industrial design falls primarily under the responsibility of MoST; architecture falls primarily under the responsibility of MoCon and of individual municipal governments. There is an increasing policy engagement in both industrial design and architecture: industrial design for its role in growing Chinashare of s international markets; architecture for its contribution to the renewal of Chinese civic pride. Formal government attention is being supplemented by a range of professional and other civil society organizations (including organizations with a focus on consumer and environmental issues).
Design
Executive Summary
Zone 3 Industrial Design Chinaindustrial design industry is beginning to develop a sense not only of self-awareness but also of mission: professional associations are s growing and are closely linked to key policy entities. Chinaindustrial design industry is largely in-house but there are a number of independent design studios (often established by returnees whose s s talents are highly regarded). Anecdotal evidence indicates that foreign designers make up a tiny fraction of Chinadesign industry (largely for economic reasons) but that this may not be a good indicator of market share design commissions are often managed at a distance. There are some indications that close neighbours Hong Kong in particular enjoy particular advantages of shared language (Cantonese is common to large parts of Chinamost concentrated manufacturing populations) and proximity. s China has a number of specialist design institutes with strong representation in Chinaso-called s knowledge centres (Beijing, Shanghai, made in China to designed in China this ; to Guangdong). The best of these institutions are sharply focused on building excellence a shift from end, leading institutions have formed partnerships with international design schools. The most ambitious students tend to study abroad (usually after an initial period of study in China): these students are beginning to form a design elite. Individual cities are developing a stronger interest in design as part of a desire to differentiate themselves within China and to build economic strength (including strength in international markets) Shenzhen, for example, has ambitions to become a Design Capital . Industrial design activities are fragmented across individual manufacturing sectors: the automotive and consumer electronics sectors are two which have a particularly strong and growing focus on design a reflection of their growing economic importance in domestic and international markets. Design quality in these two sectors is coming under increasing government and consumer scrutiny and leading businesses (and aspirants) are investing more in both design and in international collaboration and exchange for design excellence. Different businesses take different approaches we profile Lenovo (a leading PRC computer products company with expanding international market share and a preference for domestic design), Philips China (a significant investor in multiple consumer product markets in China with a strong China based design team as well as access to Philips global design resources and an emphasis on international exchange) and b, a Chinese OEM and own brand mobile phone manufacturer whose interest in design is growing with the expansion of its own brand markets).
Design
Executive Summary
Zone 4 Architecture Chinaurban renewal has achieved almost legendary proportions: the country is now the largest importer of basic building materials and s construction growth has exceeded 20% in recent years. In addition to the overall build-out the country, key municipalities are pursuing major milestone projects: BeijingOlympics are expected to of s s drive US$2.2bn worth of investment in Olympic venues, while Shanghaihosting of the International Expo 2010 is expected to lead some US$ 3bn in expo site and related infrastructure investment. At the same time, leading municipalities are building major flagships sources of national and/or local pride and symbols of achievement. Examples include the headquarters of leading financial institutions, theatres, opera houses and museums. s The ambition of Chinaarchitectural projects and the global attention which such projects are drawing is developing a new sense of selfawareness within Chinaarchitectural profession; and a rising appreciation of architecture among the population at large. Flagship projects have s attracted the worldleading architects, many of whom have made significant commitments to a long-term engagement with China s s redevelopment and with its centres of learning. The architectural profession is expanding and leading schools have strong links with centres of excellence abroad. As in other areas, international study is pursued by many leading students and returnees are increasingly seen as an elite. China is estimated to have some 11,000 architectural design enterprises small fraction of these are joint ventures and there are no wholly;a foreign owned practices. Contractual cross-border arrangements are however common and have been effectively used. Chinacapital is already home to some of the countrymost famous flagship projects - Oriental Plaza, Soho New Town, Commune by the Great s s Wall and it continues to build Beijing Financial Street, Beijing Airport Terminal III and the new CCTV headquarters will become major landmarks. The capitalmajor focus, however, is on the Olympics a number of the venues have made architectural commissions. Still at the s s preparatory stage, is a concept for a cutting edge information centre to be known as the Olympic Digital World (coinciding with Beijingroll-out of digital, it will incorporate state of the art technology, data and information resource facilities). China s style capital , Shanghai has pursued a number of landmark projects and plans to develop many more. Major municipal projects include the redevelopment of the Huangpu River (including the iconic Bund), the Xintiandi Metropolitan area, Three-on-the-Bund, and the Expo 2010.
Design
Executive Summary
The Huangpu Redevelopment Project is significant covering an area of over 74 km , it has an estimated budget of over US$ 12 bn and is expected to redefine not only central Shanghai but the relationship between the Puxi and Pudong districts; at its northernmost tip, it will touch the site 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 that delivers opportunity to niche design practices as well as majors. As this report indicates, we believe that particular opportunities exist in industrial design and architecture and that these opportunities could be strategic in terms of developing an awareness of UK design overall. We also believe that rising interest in design and urban renewal create interesting and important opportunities for the building of creative cities an area in which the UK has significant experience. As a next stage, we recommend a combination of design neighbourhoods (equivalents to the creative neighbourhoods discussed in the main Changing China The Creative Industry Perspective report) and mapping of opportunity. We also recommend that very careful attention be given to the range of educational and training services in which UK institutions excel and the opportunities which these institutions offer to build a longterm engagement with China and with its emerging design elites.
Contents
1 2 3 4 5
Introductory Remarks China Context Industrial Design Architecture Key Points for Consideration in Growing UK Value
Zone 1
1
Introductory Remarks
Zone 1
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 & InvestmentCreative & Media Export Unit s with a clear analysis of the size and shape of selected creative industries in China, and of the fundamentals which are driving present and future development. 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: A Market Analysis of China Digital and Design Industries. s 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 development and exploitation of market opportunities in China by Britaincreative industries. s
Zone 1
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 Chinaperspectives on s 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.
Zone 1
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 key positions in the value chains of the sectors addressed.
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Zone 1
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 the selected 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 of weaknesses. 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 are resolvable. To some extent these gaps are a factor of statistical approaches which have limited ability to capture independent (ie non State) activity in newly liberalising sectors: they are also a factor of industry perspectives which aggregate data in such a way as to follow prevailing administrative rather than industry 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 CGA10 s years 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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Zone 1
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 supporting resources for the successful long-term exploitation of China opportunity for UK creative industry.
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Zone 1
China policy approach to design is highly fragmented s Given limited time and resources, we have focused on selecting 2 areas which provide a broad perspective; after a process of research and dialogue 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 in prioritising areas of importance for the UK.
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Zone 1
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 matches that 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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Zone 1
Changing China The Creative Industry Perspective is not a How 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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Zone 2
China Context
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Zone 2
China Context
Rapid growth Many of Chinacreative industries are experiencing rapid growth, fuelled by a combination of state-driven and private sector investment in s infrastructure and technology, a rise in the digitisation of information, a significant increase in personal communications and a marked rise in consumer 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 Chinaattraction of the highest level FDI in the world (US$53.51bn in 2003). s
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 dominant engines of growth; resulting rises in employment and incomes have fuelled consumer confidence.
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Zone 2
China Context
China creative industries are undergoing change s 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 certain segments 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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Zone 2
China Context
Hitherto, and still to date, the separation of powers has inhibited the type of joined up government approach that the UK has s developed, and China 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 is beginning to drive growth. Individual industry policies have been set (and continue to be set) by individual ministries SARFT, GAPP and MoST. Early in 2004, ChinaMoC published what would appear to be the first national attempt to address multi-industry policy for the cultural industries: s 7 industries were selected: performing arts; film & TV; music & video; cultural entertainment (including content); cultural tourism; arts training; and arts & handicrafts. The document technically China th Five Year Plan for the Cultural Industries referred to by the MoC as a s 10 but Strategy and Roadmap for Creative Industries recognizes the growing commercial potential of Chinacultural industries: s s it recognizes the present weakness of Chinacultural 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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Zone 2
China Context
The UK Perspective Design workshop of the world design is recognised as the source of some of the most vibrant influences in the global market. , UK As assessed by the UK in work conducted by the Department of Culture, Media & Sport (DCMS) and the Department of Trade & Industry (DTI), it covers 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 creative industries 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 of cultural rather than creative industries: 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 the development of the industry overall or to individual segments.
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Zone 2
China Context
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 remit of 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 primarily administrative;
other design activities most notably environmental and industrial design fall under the policy remit of a number of ministries and agencies:
depending on the specific value activity, environmental and industrial design can be addressed by the National Development Reform 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 and engagement 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 improving the competitivity of Chinese business in global markets; architecture falling under the MoCON at the national level is increasingly being driven (in the case of Chinaleading urban s environments) at the municipal level (urban planning commissions) as individual local governments seek to gain competitive advantage within 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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Zone 2
China Context
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 Protection Association (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 Chinafirst and fastest growing s 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 carried out 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 Promotion Organization (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 International Corporation (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 the Architectural 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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Zone 2
China Context
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 extremely limited), partly because of the limited historical UK attention relating to some design sectors, and partly due to their strategic significance: Chinastrengthening position in global manufacturing, makes it an important point of industrial designers around the world. s sale for Chinarapid economic growth is driving significant national and municipal investment in flagship architectural projects which will s represent long-term testaments to the creativity of an individual architectcountry of origin s 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) Chinagovernment and its major s manufacturers are focused on developing brand identities; again, however, this area has been addressed in the bilateral arena and is addressed by the UKglobal brand businesses which have already established a presence in the China market: s all of the worldleading brand advisers (including businesses within the WPP Group such as Enterprise IG) are represented and/or s are active in China as are some notable UK independents, including newly established Acanchi (founded by Springpointoriginal s founder Fiona Gilmore); these agencies are likely to dominate opportunities for international business; they are also likely to work with niche design studios (UK and Chinese), creating opportunities for the type of creative neighbourhoods are discussed in Zone 4 of the main report. that Overall, it is also important to note that actual opportunities for design commissions may be masked by the fact that major projects may be managed by a foreign partner: design commissions for major property and hotel projects are often managed offshore by major regional investors this can give regional design studios particular advantages.
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Zone 2
China Context
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 to design involvement. In terms of industrial design, government policy-support is largely limited to an exhortation to Chinaindustry (particularly its export industry) to s invest in design: to date, no mapping of design capability has been carried out; Chinaindustrial design associations (the China Industrial Design Association (CIDA) and its local equivalents, for example the Beijing s and Shanghai Industrial Design Organisations (IDPOs) can act as a conduit for matching designers with demand but the degree of effectiveness to which different associations have done this varies; in terms of architecture, policy is largely set at the local level:
in Chinamajor urban areas (including Beijing, Shanghai and Guangdong), architectural projects have traditionally been driven by s local government but more recently, numerous private associations and educational institutions are increasingly involved and play a 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 of limited 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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Zone 2
China Context
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 our comments with descriptions of the major urban development initiatives underway and planned in these two municipalities.
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Zone 3
3
Industrial Design
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Zone 3
Industrial Design
China industrial design industry is beginning to develop a sense not only of self-awareness but also of mission s Chinaindustrial design industry has developed significantly over the past ten years: s it is now represented at the national level by the CIDA, whose mandate is to promote the industry, provide support to members and to collaborate with government on policy and technical regulatory issues; CIDA describes itself as an equivalent to the UKDesign Council, with over 3,000 individual members and dozens of institutional s members 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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Zone 3
Industrial Design
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 UK campaign:
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 industrial designers. 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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Zone 3
Industrial Design
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 no more than 10,000 industrial designers. The majority of Chinaindustrial designers work in-house to manufacturers, but there are a number of independent design studios: s 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 design studios. s Anecdotal evidence indicates that foreign designers make up a small fraction of Chinadesign 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 providing industrial design services on the mainland; driven by a combination of demand for Hong Kong design on the one hand, and a downturn in the Hong 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 to one of the highest concentrations of manufacturing) a shared language (Cantonese).
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Zone 3
Industrial Design
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 Chinaso-called s Knowledge Centres (Beijing, Shanghai, Guangdong) as well as in individual areas 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 China to designed in China : to achieve this, some have forged partnerships with international design schools:
Qinghua UniversityAcademy of Arts and Design is participating in the Global Design Research Initiative (an initiative of the s Design School of the Illinois Institute of Technology): this project is focused on user-centred design which aims to create a set of activity-focused research methods to identify 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-foreign joint 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 are planned for Qingdao, Chengdu and Ningbo.
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Zone 3
Industrial Design
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 students travel 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 become Design Directors upon return to China; industrial design organisations such as BIDPO, are actively recruiting returnees to participate in their activities, and are keen to tap into their overseas experiences.
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Zone 3
Industrial Design
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 designrelated 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 Chinaexport manufacturing, Shenzhen has developed a strong educational s infrastructure 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 and other designers) as well as being one of the countrylargest concentrations of architectural practices. s
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Zone 3
Industrial Design
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 Chinamiddle class; s it reflects significant foreign investment in these sectors; it also reflects the increasing importance of these sectors to Chinaoverall economic performance including performance in s international export markets.
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Zone 3
Industrial Design Automotives
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 have increased in the past 2 years due to an increased number of foreign auto-design and technology investment activities in Chinese manufacturing hubs. Bo Xilai, recently appointedMinister of MoFCOM, has recently commented that although production and export of Chinese automobiles and components has sustained high growth 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 to improve quality through automobile design technology.
34
Zone 3
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 automobile design and production; the recall regulation was introduced not just because of the overall lack of research and development in automobile design, but also 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 on quality, 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 suitable equipment and qualified technicians to judge design quality; in addition, there are a number of redundant administrative departments which are understood to have difficulty in coordinating multiple responsibilities which has led to a lack of accountability for design, management, production and quality 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 and domestic) 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 move would serve as a milestone in the development of Chinaauto industry; s other supporters include Shanghai GM, Ford China and Dongfeng Citroen.
35
Zone 3
China leading automotive manufacturers are: s 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: GM main partnership is with the Shanghai Automotive Industry Corporation (SAIC): s

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 called SGM-Dongyue; GM also has a separate joint venture with First Automotive Works Jinbei in Shenyang (established in 1999)
Almost all of China automotive manufacturers have entered into some form of joint venture arrangement s In almost every case, access to engineering design was a major driver in seeking outside investment with foreign partners providing designs and design input to modify western units for domestic or regional consumption.
36
Zone 3
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 Corporation this is a 50:50 joint venture between GM and SAIC; PATAC was set up with a US$50m investment form GM and SAIC; PATAC provides 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 the Centre to give and receive training. PATACfirst car designed for the China market (Kunpeng minivan), was exhibited at the 2003 International Automobile Exhibition held in s Shanghai: also launched in 2003 was PATACExcelle originally manufactured for the export market. s
GM China Investment Company is not yet producing cars for export, but reportedly plans to do so in the future.
37
Zone 3
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 Harbin and 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 supply services to the Chinese automobile industry), for a number of years, accessing design talents which have delivered models for Ferrari and AlphaRomeo; the Hafei/ Pininfarina partnership (established in 1996) was based upon the supply of Pininfarina 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/ Pininfarina first jointly-designed automobile was the Zhongyi compact minivan which was on display at the Beijing International Auto s Exhibition in 2000; followed by the 2002 Lobo hatchback; the HF Fantasy in 2002 and the Enjoy in 2003. the collaboration has won strong domestic praise:
the leading European automobile magazine Automotor & Sports, brought its annual Best Cars the award to China in 2001 the Lobo won Minicar Best award that year.
38
Zone 3
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 optimistic about its future.
39
Zone 3
Industrial Design Consumer Electronics
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 worldtelevisions; s s 42% of the worldcomputer monitors; 70% of the worldradios; s over 50% of the worldcameras; s 30% of the worldair conditioners; s s 16% of the worldrefrigerators; 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 Chinaconsumer electronics products are manufactured by joint venture businesses with foreign partners representing both s 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. s Initially largely focused on the manufacturing of foreign-designed products (foreign-partner products in JVs or OEM arrangements), China 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).
40
Zone 3
In China consumer electronics manufacturing industry, competition is high and margins are tight s 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 for external 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 to access 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 available and that natural competitive advantages will accrue to regional businesses who are able to provide services within close geographical proximity with 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 Kong designers are providing cross-border services, effectively seen as part of the greater Chinese economy but benefiting from a proven track record in international markets. Again, approaches to design are best illustrated through practical example: the following three profiles illustrate typical approaches to design (inhouse and external) in Chinaconsumer electronics product sector. s We have selected: Lenovo, a Chinese PC manufacturer; Philips Electronics, a joint venture manufacturer; Ningbo Bird Co., Ltd, a Chinese mobile phone manufacturer.
41
Zone 3
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 in Lenovomobile phones, PCs and network terminals; s it has jointly established the Intel-Lenovo Technology Advancement Centre (Beijing, established in 2003), focused on designing leading 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.
42
Zone 3
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, Philips global design teams are also used principally for interior product design; and Philips local design teams are being used exterior product design. for Philips favours strong in-house design teams that operate globally; the company believes that there are fundamental differences between European 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 train Chinese designers.
43
Zone 3
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 including Finland, France and Italy: according to the General Administration of Customs (GAC), Ningbo Bird exported 480,000 mobile phones in 2003 which valued at US$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.
44
Zone 4
4
Architecture
45
Zone 4
Architecture
China urban renewal has achieved almost legendary proportions s The total (2003) value of the countryconstruction industry is estimated by the State Statistics Bureau at US$26 bn (an increase of 23% over s 2002). s s s China is now the worldlargest importer of basic building materials more than 36% of the worldsteel and 55% of the worldconcrete. In addition to the general the country, key municipalities are pursuing major milestone projects: build of s Beijinghosting of the Olympics is expected to create US$2.2bn worth of investment in Olympic venues (including new stadiums and refurbished stadiums, not including training facilities); Shanghaihosting of the 2010 International Expo is expected to lead to US$3bn investment in the expo site and an additional US$20bn s in 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.
China architects are represented by the Architectural Society of China s 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.
46
Zone 4
Architecture
The ambition of China architectural projects and the global attention which such projects are drawing is developing a new sense s of self-awareness within China architectural profession; and a rising appreciation of architecture among the population at large s This has been accelerated by flagship projects which have attracted the worldleading architects many of whom (including Rem Koolhaas, s architect appointed for the prestigious CCTV Tower) have made significant commitments to a long-term engagement with Chinaredevelopment s projects and with its centres of learning. Not surprisingly, China architecture profession is expanding: s China has established significant architectural institutes and schools: one of the best known is Qinghua UniversitySchool of Architecture: s it has strong links with Harvard and MIT and with schools of architecture and planning in Paris; links with the UK appear to have been limited 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 and Princeton; 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 Chinamost famous returnee architects is Zhang Yonghe, now Professor of the Peking University Architecture Centre: s
Zhang, who is also founder of the Feichang Architecture Studio, studied at Berkeley in the early 1980s.
47
Zone 4
Architecture
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-byproject 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 and WFOEs.
There is no (present) mutual recognition for architectural qualifications between UK and China; this is presently being addressed. Chinaarchitects are also represented by the National Administration Board for Architectural Registration (NABAR): s NABAR is the lead body working on the mutual recognition of architectural qualifications between China and other countries, including the UK.
48
Zone 4
Architecture
China capital, Beijing, is already home to some of the country most famous/flagship architectural projects s s Many of these have been driven by city planners but some have been promoted by independent entities keen to develop an awareness of architecture 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 , again developed by Pan Shiyi and Zhang Xin: Commune by the Great Wall
the project features 11 Asian (including 5 Chinese 2 from mainland China, 2 from Hong Kong, and 1 from Taiwan) architects who were commissioned to build luxury homes in a location near the Great Wall, with the idea of creating the in architecture in the best best of surroundings Great Wall is a UNESCOCultural Heritage Site; the s 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.
49
Zone 4
Architecture
Major municipal projects currently under construction include the development of the Central Business District (CBD), Beijing s Financial 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 capitalmajor financial institutions at an estimated budget of US$2.4bn, completion is scheduled s for 2006.
key buildings in the district have been designed by both Chinese and foreign architects:

Fukai Plaza was designed by China Architectural Design Research Institute. the new Industrial and Commercial Bank of China headquarters were designed by Brian Lee of SOM (US);
the Beijing Airport Terminal III project is a US$2bn project, covering an area of 428,000 m :

it is expected to take passenger capacity at the Capital Airport from 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 for CCTV 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 Koolhaas OMA (who have also been awarded the second phase SOHO City project); Koolhaas describes the design as a prototype for the hyper building .
50
Zone 4
Architecture
The centrepiece of Beijing present architectural focus is of course the Olympics s 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 (including new 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 State General Administration of Sport (SGAS ChinaSports Ministry). s A number of the venues have already held design competitions, with architectural commissions going to both Chinese and international firms: the Olympic Park for example will be designed by Sasaki (US; also awarded the Wukesong Cultural Sports Centre) and the Tianjinbased 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; s the Beijing Shooting Stadium will be designed by Qinghua UniversityArchitectural 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 Olympic Digital World: it coincides with Beijingroll-out of digital TV (see TV sector under main report) as well as the finalisation of an ambitious project to s establish 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 has yet been released.
51
Zone 4
Architecture
China s style capital, 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 of architectural style including an awareness of Shanghaiarchitectural heritage. s Major municipal projects include: redevelopment of both banks of the Huangpu River, including the iconic Bund; the Xintiandi Metropolitan Area; the Three-on-the-Bund Metropolitan Area; and ShanghaiExpo 2010. s
The Huangpu Redevelopment Project is managed by the Shanghai Huangpu River Development Office, a Project Office set up by the Shanghai Municipal government in 2002 to run the project. s The Bund Redevelopment Projectbudget is estimated to be US$12.1bn for a major stretch of the Huangpu River a total area of 74 km stretching 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 has become 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 for introduction 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.
52
Zone 4
Architecture
ShanghaiXintiandi (New Earth and Heaven), is one of Chinamost successful redevelopment projects: s s Xintiandi has an area of 60,000 m ; designed by Boston-based architects Wood and Zapata in 2001, it took the traditional Shikumen dwellings and converted them into a maze of shops, bars, restaurants and art galleries; total investment is estimated at US$150m; s ShanghaiThree-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 Concession section of ShanghaiBund area; s the restored building which covers 7 stories and 13,000 m - is home to the Shanghai Gallery of Art, retail stores, beauty spas and restaurants; American architect, Michael Graves, designed the buildingrestoration work and Alan Chan (a Chinese graphic designer who also s designed the Evian Day Spa and the Whampoa Club both which are located in Three-on-the-Bund), designed the buildinginterior. s
53
Zone 4
Architecture
The centrepiece of Shanghai future architectural focus is likely to be the Shanghai International Expo 2010 s s The Expo is being developed by the Shanghai Municipal GovernmentExpo 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 Park and Village with associated parking and public transport; an international seminar looking at the planning and designing of the Expo will take place in April; it will include visits to the site and group discussions. 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 Shanghainew economic development zone across the Huangpu River and host to the s 2010 Expo: the concept went beyond the idea of a technology centre to embrace a cluster concept bringing together international and domestic designers 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 absolutely and relative to regional neighbours such as Suzhou which also has digital design clusters).
54
Zone 5
5
Key Points for Growing UK Value
55
Zone 5
A general description of key points for growing UK value can be found in Zone 4 of the main report.
56
Zone 5
The very approach that we have taken to this report illustrates the need for a specific approach to the design industry certainly for China; 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 the UK) to provide an effective single interface for design . 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 significant positive impact on perceptions of the UK across the board with benefits well beyond the immediate commercial value of an individual commission. 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 would bear particular fruit. Particular opportunities exist to promote UK industrial design to support Chinaexpanding position in international consumer product markets: s some of these opportunities may be best and most successfully exploited by strengthening collaboration between UK (and other international) 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) a series of mapping exercises, designed to include qualitative as well as quantitative input, to identify key (present and likely future) Chinese industry consumers of design this should be structured to determine the nature of their needs, the likely size and structure of their budgets, and their possible role as flagships other industry. for
57
Zone 5
Opportunities also clearly exist and have been developed by UK architects to support Chinainvestment in urban development and renewal. s Additional opportunities seem likely to exist beyond single architectural projects, for the development of urban areas and for the hard and soft wiring digital and (to use the Chinese term) of cultural cities 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 the UK 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 and that in the case of some careers, those choices extend beyond individual professional development, to the shaping of national policies and preferences. s We suggest that all of these ideas be explored initially in a Roundtable Discussion between the UK Trade & InvestmentCreative & Media Export Unit and the FCO in China with subsequent consideration being given to the development of initiatives for specific priority sectors whose development in China most strongly benefits from government support and brings the maximum positive value for perceptions of UK strengths in the China market.
58
Appendices
59
Appendix
Design Contacts for Non Government Entities
Industrial Design (Automobile & Consumer Electronics) Non-Government Entities Responsibilities
Beijing Industrial Design Centre Assists enterprises to improve value-add products and balance market competition Beijing Industrial Design Promotion Organization China Association of Automobile Manufacturers China Industrial Design Association Guangzhou Industrial Design Promotion Organization Shanghai Industrial Design Promotion Organization Shenzhen Industrial Design Association 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 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 Development of Chinaindustrial design industry s Assists enterprises to compete by advising on the value of design Promote economic development and progress of society s Promotion of Guangzhoudesign innovation Provide more added value services for the innovative design, and promotes economic development Promotion of Shanghaidesign innovation s Provide more added value services for the innovative design, and promotes economic development 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
60
Appendix
Design Contacts for Government and Non Government Entities
Architecture Design Government Entities

Ministry of Construction
Responsibilities
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 Regional construction project supervision City/provincial planning Construction equipment use management Approval of construction firms wishing to engage in construction projects
Provincial, Municipal Construction Commissions
Provincial, Planning Commissions
Approval of architectural firms wishing to engage in architectural design projects Management of municipal planning
Non-Government Entities
Architecture Society Of China
Responsibilities
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
China Building Decoration Association
Carrying out policies relating to the building and decoration industry, assisting State Council administrative departments to manage the building 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 Provide services to government macro decision-making entities and enterprise businesses Development of the national interior decoration industry 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 Interior Decoration Association China Real Estate Housing Research Institute,People and Environmental Committee
61
Appendix
Design Contacts for Government and Non Government Entities
Architecture Design Non-Government Entities

China Reconnaissance Design Association,Architecture Design Sub-committee
Responsibilities
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
62
Appendix
Design Events and Exhibitions
Events and Exhibitions

Exhibition Annual CIDE Organiser and Contact Details Organiser: Design Committee of China Packaging Technology Association Contact: Chen Haihui Tel: 86 (0)10 6583 1735 Organiser: Ministry of Science and Technology, Ministry of Commerce, Ministry of Education and Ministry of Information Industrial, Beijing Government, State Intellectual Property Office Contact: bidc@bjidesign.com Tel: 86 (0)10 8200 2055 Fax: 86 (0)10 8200 4066 Organiser: Beijing Municipal Construction Commission,Ministry of Technology Beijing Sino-Foreign Technology Communication Centre Contact: Fang Ting Tel: 86(0)10 64173867 Fax: 86(0)10 64173867 Organiser: Jiejiang Provincial Architecture Decoration Association Contact: Sun Wei Tel: 86(0)571 88399377 Organiser: China Mechanical Engineering Society, Industrial Design Branch, Ningbo Government, Ningbo Science & Technology Association, Ningbo Industrial Design Society Contact: 2004ID@vip.sina.com Tel: 86 (0)571 85957353 Fax: 86 (0)571 87951947 Organiser: Shanghai Foreign Science & Technology Exchanging Centre, Shanghai Industry Design Promotion Organization Contact: Ms. Lu Ping Tel: 86 (0)21 64712180 Organiser: China Industry Design Association, Jiangsu Science & Technology Department, Wuxi Government, Wuxi Science and Technology Bureau Contact:China-id@wx.net.cn Tel: 86 (0)510 2712771 Location Beijing
Beijing International Design Exhibition
Beijing
Beijing International City Landscape and Architecture Design Exhibition
Beijing
The International Building & Decoration Trade Fair International Industrial Design Forum & the Annual National Industry Design Academic Meeting Shanghai Annual International Design Innovation Forum and Exhibition
Zhejiang
Ningbo
Shanghai
2004 China Industry Design Week. Wuxi
Wuxi
63
Appendix
Design Events and Exhibitions
Events and Exhibitions

Exhibition Beijing Annual International Auto Industry Exhibition First National Environment Art Design For Design Exhibition China Shanghai Annual International City Gardens, Landscape and Architecture Design Exhibition 2004 China (International) Gardens Technology and City Landscape Exhibition & Forum Organiser and Contact Details Organiser: China Mechanical Engineering Society, China Auto Industry General Corporation, China Auto Industry Association, China Council for the Promotion of International Trade Contact: 86 (0)20 87792899 Organiser: China Artists Association, Ventral Academy of Fine Arts Contact: Ms Geng Tel: 86 (0)10 64770998 Organiser: China Landscape and Garden Society, China Sculpture Society, Shanghai Garden Industry Association and Shanghai Landscape Society Contact: jasonexpo@sohu.com Tel: 86 (0)21 63341766 Organiser: China Architecture Association, Shanghai Gardens Group, China Academy of Science Contact Chen Xiaojuan Tel: 86 (0)21 62188063 Fax: 86 (0)21 62187186 Location Beijing
Beijing
Shanghai
Shanghai
64
Appendix
Design Entities referred to in this Market Analysis
Entities referred to in this Market Analysis (Design)

Architecture Design & Research Institute, Tongji University Architecture Society of China Architecture Society of China Interior Design Beijing Industrial Design Centre 1239 Siping Road, Shanghai 200092 Baiwan Zhuang, Beijing 100835 9, Sanlihe Road, Beijing 100835 Room 912, B Shengchanli Building, No. 31 Beisanhuan Zhong Road, Haidian District, Beijing 100088 Room 222, No. 19 Xizhimen Nanlu, Beijing 62, Nanlishi Road, Beijing 100045 24 Dongsishitiao, Beijing 100007 260 Jianxin East Road, Jiangbei District, Chongqing 400050 30, Beisanhuan East Road, Beijing 100013 19 Chegongzhuang, Beijing 100044 19 Chegongzhuang, Beijing 100044 11- 302, Deshengli 1 Qu, Beijing 86 (0) 21 6598 7788 86 (0) 10 6839 3659 86 (0) 10 6839 4114 86 (0) 10 8200 2055 www.cin.gov.cn www.bjidsign.com www.tjkjsy.com
Beijing Industrial Design Promotion Organization Beijing Institute of Architectural Design Beijing Organizing Committee for the Games of the 29th Olympiad Changan Automotive Technology Design Centre China Academy of Building Research China Architectural Design Research Institute China Architecture Design & Research Group China Building Decoration Association China Industrial Design Association Chinese Mechanical Engineering Society Industrial Design Branch
86 (0) 10 6835 4895 86 (0) 10 6801 1155 86 (0) 10 6528 2009 86 (0) 23 6877 0807 86 (0) 10 8427 2233 86 (0) 10 6839 3613 86 (0) 10 6839 3613 86 (0) 10 8202 2111
www.beijingdesign.com www.biad.com.cn www.beijing-2008.org www.changan.com.cn www.cabr.ac.cn www.cadreg.com.cn
www.ccd.com.cn www.dolcn.com/cida www.cmes.org
4/F, B Building, No.26 Dongzhimenwai 86 (0) 10 6416 3104 / 6417 4928 Dajie, Beijing 100027 CAD Centre, No.1, Beiwanzhuang Nanjie, Xicheng District, Beijing 100037 86 (0) 10 8837 9735
65
Appendix

China National Interior Decoration Association China Perambulation Design Association Architecture Design Association 6 Building, Dixingju, Anwai Ande Road, Dongcheng District, Beijing 100011 9, Sanlihe Road, Haidian District, Beijing 100835 86 (0) 10 6426 0711 / 6426 0243 www.clii.com.cn
86 (0) 10 8808 2266
www.cin.gov.cn/main/org/b0206.htm
China Perambulation Design 9, Sanlihe Road, Haidian District, Association Interior Design Association Beijing 100835 East China Architectural Design & Research Institute Co., Ltd. Dongfang University Dongfeng Auto Co. Guangdong Industrial Design Association Guangzhou Hongda Guangzhou Industrial Design Promotion Organization Hafei Aircraft Industry Group Hafei Motor Company Huahui Project Architecture Design Company Leveno Ningbo Bird Company 151 Hankou Road,Shanghai 200002 1882 Yanan West Road, Shanghai 200051 1 Dongfeng Road, Xiangfan, Hubei 441004 3/F, No. 11 Lianxin Road 1 Guangben Road, Guangzhou 510700 75 Xiaoli Road, Guangzhou, 510045 15 Youxie Street, Pingfang District, Haerbin 150060 1 Yantai Road,Haerbin 150060 9 Cangqiong Road, Tianjin 300381 6 Chuanye Road, Shangdi, Beijing 999 Dacheng East Road, Fenghua, Zhejiang 315500
86 (0) 10 8808 2266 86 (0) 21 6321 7420 86 (0) 21 6237 3446 86 (0)710 339 6006 86 (0) 20 8319 7670 86 (0) 20 8221 0821 86 (0) 20 8319 7670 86 (0)451 8652 8350 86 (0)451 8650 1122 86 (0) 22 2341 5651 86 (0) 10 5886 8888 86 (0)574 8891 8856
www.cin.gov.cn/main/org/b0206.htm www.ecadi.com www.dhu.edu.cn www.dfmc.com.cn
www.guangzhouhongda.com.cn
www.hafei.com www.hafeiauto.com.cn www.huahui-tj.com www.lenovo.com www.chinabird.com 66
Appendix

Pan-Asia Technical Automotive Centre 3999 Longdong Road, Shanghai 201201 Philips China Group Qingdao Haigao Design & Manufacturing Co., Ltd. s Qinghua UniversitySchool of Architecture Shanghai GM Shanghai Industrial Design Promotion Organization 218 Tianmu West Road, Shanghai 200070 1 Haier Road, Qingdao 266032 Qinghua Univ. Architectural Design Research Institute, Haidian District, Beijing 100084 3999 Longdong Road, Shanghai 201201 Room 1115, No. 3 Building, Donghaiguangchang, No. 1486, Nanjing West Road, Shanghai 200040 258 Shimenerlu, Shanghai 200041 28 Jinling West Road, Shanghai 200021 2, Beijing Dong Road, Shanghai 200002 1088 Yanan West Road, Shanghai 200052 86 (0) 21 5899 1333 86 (0) 21 63541088 86 (0) 532 893 8101 86 (0) 10 6278 5692 www.arch.tsinghua.edu.cn www.patac.com.cn www.philips.com.cn
86 (0) 21 5055 4580 86 (0) 21 6247 4886
www.shanghaigm.com No website
Shanghai Institute of Architecture Design and Research Shanghai International Trade Promotion Committee Shanghai Media Entertainment Group Shanghai S-Point Design Company Shanghai State Assets Operation Company Ltd Shanghai World Expo Coordination Bureau
86 (0) 21 5252 4567 86 (0) 21 5306 0228 86 (0) 21 5308 8177 86 (0) 21 6207 6922
www.cnaec.com.cn www.ccpitsh.org www.smeg.com.cn www.spointdesign.com www.ssaocorp.com www.expo2010china.com
555 Xujiahui Road, Shanghai 200020 86 (0) 21 6390 1008 1000 Yannanzhoulu, Shanghai 200040 86 (0) 21 6120 2010
67
Appendix

Shenzhen Industrial Design Association Tongji Tongjie Engineering & Technology Co., Ltd. Room A103, Qingnian Institute Main Office Building, Futian District, Shenzhen 518049 86 (0)755 8315 1162/8241 5592 www.szid.org
325 Yunqiao Road, Shanghai 201206 86 (0)21 58999809
68
Appendix
Design Abbreviations & Acronyms; Currencies
Abbreviations & Acronyms; Currencies

ASC BFS BIDPO BOCOG CAIC CAST CBD CCTV CEPA CIDA DCMS DTI FCO GAC GAPP Architectural Society of China Beijing Financial Street Beijing Industrial Design Promotion Organization GM ICBC IDPO General Motors Industrial and Commercial Bank of China Industrial Design Promotion Organisations Massachusetts Institute of Technology Ministry of Culture Ministry of Communication Ministry of Construction
Beijing Organising Committee for the Games of the XXIX Olympiad MIT China Automotive Industry International Corporation China Association of Science and Technology Central Business District China Central Television Closer Economic Partnership Agreement China Industrial Design Association Department of Culture, Media & Sport Department of Trade & Industry Foreign and Commonwealth Office General Administration of Customs General Administration of Press and Publications MoC MoCOM MoCON
MoFCOM Ministry of Commerce MOP MoST NABAR NBSC NDRC OEM Ministry of Personnel Ministry of Science & Technology National Administration Board for Architectural Registration National Bureau of Statistics of China National Development Reform Commission Original Equipment Manufacturer
Currencies
GBP1 = CNY14.93 GBP6.70 = CNY100 US$ = US Dollar CNY = China Yuan Renminbi Note: CNY has been fixed to the US$ at 8.28 since 1995. 69 US$1 = CNY8.28 US$12.07 = CNY100
GBP = United Kingdom Pounds
Appendix
Design Abbreviations & Acronyms
Abbreviations & Acronyms

PATAC SAIC SARFT SASAC SBQTS SEPA SGAS Pan-Asia Technical Automotive Centre Shanghai Automotive Industry Corporation State Administration for Radio Film and Television SIDPO SMEG SOE Shanghai Industrial Design Promotion Organisation Shanghai Media Entertainment Group State Owned Enterprise United Nations Educational, Scientific and Cultural Organisation Wholly Foreign Owned Enterprise World Trade Organisation Year on Year
State-owned Assets Supervision and Administration Commission UNESCO State Bureau of Quality and Technical Supervision State Environmental Protection Association State General Administration of Sport WFOE WTO YOY
70

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Changing China - The Creative Industry Perspective: s A Market Analysis of China Digital and Design Industries Design

but with Important Regional Differences

Industrial Design Automotives

Industrial Design Automotives

Industrial Design Automotives

Industrial Design Automotives

Industrial Design Automotives

Industrial Design Automotives

Industrial Design Consumer Electronics

Industrial Design Consumer Electronics

Industrial Design Consumer Electronics

Industrial Design Consumer Electronics

Industrial Design Consumer Electronics

Key Points for Growing UK Value

Key Points for Growing UK Value

Key Points for Growing UK Value

Key Points for Growing UK Value

Design Contacts for Non Government Entities

Industrial Design (Automobile & Consumer Electronics) Non-Government Entities Responsibilities

Design Contacts for Government and Non Government Entities

Architecture Design Government Entities

Provincial, Municipal Construction Commissions

Provincial, Planning Commissions

China Building Decoration Association

Design Contacts for Government and Non Government Entities

Architecture Design Non-Government Entities

Design Events and Exhibitions

Events and Exhibitions

Beijing International Design Exhibition

Beijing International City Landscape and Architecture Design Exhibition

2004 China Industry Design Week. Wuxi

Design Events and Exhibitions

Events and Exhibitions

Design Entities referred to in this Market Analysis

Entities referred to in this Market Analysis (Design)

www.beijingdesign.com www.biad.com.cn www.beijing-2008.org www.changan.com.cn www.cabr.ac.cn www.cadreg.com.cn

www.ccd.com.cn www.dolcn.com/cida www.cmes.org

Design Entities referred to in this Market Analysis

Entities referred to in this Market Analysis (Design)

86 (0) 10 8808 2266

www.cin.gov.cn/main/org/b0206.htm www.ecadi.com www.dhu.edu.cn www.dfmc.com.cn

www.hafei.com www.hafeiauto.com.cn www.huahui-tj.com www.lenovo.com www.chinabird.com 66

Design Entities referred to in this Market Analysis

Entities referred to in this Market Analysis (Design)

86 (0) 21 5055 4580 86 (0) 21 6247 4886

www.cnaec.com.cn www.ccpitsh.org www.smeg.com.cn www.spointdesign.com www.ssaocorp.com www.expo2010china.com

Design Entities referred to in this Market Analysis

Entities referred to in this Market Analysis (Design)

325 Yunqiao Road, Shanghai 201206 86 (0)21 58999809

Design Abbreviations & Acronyms; Currencies

Abbreviations & Acronyms; Currencies

GBP = United Kingdom Pounds

Design Abbreviations & Acronyms

Abbreviations & Acronyms

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