02/12/2013 World Business Report

vote had been proposed by a conservative groups. Now for the

latest financial news with Sally. On a mission, which is Prime

Minister and his business delegation of over 130 are in Beijing. The

goal, an EU `China trade agreement. Does Europe have China wants? We

assess what Europe has to offer the world's second`largest economy as it

shifts from exporting to selling luxury goods at home.

A very warm welcome. You are with World Business Report. Also in the

programme, it is the biggest shopping day in the year for retail

outlets online. It is Cyber Monday. Britain's Prime Minister David

Cameron has arrived in Beijing with over 100 representatives from

British business, hoping to increase their share in China's marketplace.

Mr Cameron is aiming for a free trade agreement between the European

Union and China and take the British `Chinese diplomatic and vertical

relationship to a new level. It is a three`day meeting and the prime

Minister has begun talks with the Premier. There is a trip to the

financial hub in Shanghai and the inland city of Chengdu. A global

centre of consumer electronics. During his stay in China he will

also meet with Chinese investors. Civil society representatives and

students. 50% of the delegation travelling with him are

representatives from small and medium`sized companies. We have been

talking to one British businessmen. Bustling Beijing this is the city

for business. I'm eating a British entrepreneur who is here. Shoes,

bags and showers. Dominic Johnson Hill started his business eight

years ago. This is our biggest seller. We take a loss of East and

West, the monkey King with the native dress. Eight means wealth in

China. Is there anything you can't print? Iestyn play with Chairman

Mao. `` yes, do not play with Chairman Mao. There is massive

opportunity here. There is always a market here that has not been open.

Especially in the creative industries in Beijing. That is

something that is lacking in China. A lot of things are made here but

not created here. The creative market has huge opportunities.

Dominic's business now sells more than ?500,000 worth of T`shirts

every year. With the right product and perseverance, you can make it in

China. The aim of this trip of the British

Prime Minister and code to China is to pave the way for more European

companies to tap into the world 's second`biggest economy. The pace of

change is fast, focusing from mass`market goods for export to the

hungry high and expertise that will help them sell more goods to their

own increasingly sophisticated consumers.

A clothing factory in the heart of Don Quan. A town in South China.

These workers are the muscle behind the economic rise. Success has

economic challenges. With costs soaring the men in charge of finance

here tells me the Hong Kong`based owners considered leaving the

country. We don't change, we have the car was shot down the factory in

China. `` we have to close shot down. These are the T`shirts that

they started making. Very classy complain. As the costs grew, they

had to start doing something very different. So, they started making

T`shirts with more embellishment more ruffles, that are allowed them

to charge more and make more profit. Officials had relied on cheap labour

and exchange rates to have economic growth of 20% a year for the past

three years. The is no longer viable. TRANSLATION: we will have to

move England. Companies with strong brands, those with their own

technology or high`end manufacturers will continue to flourish. This

science Park in a nearby city is what officials hope will be the

Pearl of the River Delta. Its main market is in China rather than

overseas. They employ skilled, educated young workers. South

China's economic transformation is just beginning. Its intention is

clear. Foreign investors keen to profit from China would be wise to

keep up with this trendsetting region.

The Premier has only just got back from his trip to Europe. One that

took him to the underdeveloped eased last week. China and 16 central and

eastern European countries pledged to boost 2`way investment and trade.

Mr Lee told the Romanian parliament that it is strategically important

to a stronger relationship between China and Eastern Europe. Let's get

some more. Good morning. It is quite interesting his trip to Europe just

before David Cameron's arrival with over 100 delegates did not take him

to the UK and other key economies. It is a big Chinese interest in

Eastern Europe because there are big opportunities there. China is

looking to invest in Europe and in a sense, Eastern Europe is cheaper and

easier for Chinese investment than some of the more developed European

economies. How successful do you think the trip of David Cameron's

will be. He says the key objective is to broker a free trade agreement

between the EU and China which some say could be worth up to $1 trillion

up to 2020. You always get huge numbers with my ministerial visits.

The China and the UK economies are very different. If they broker and

negotiate a free trade agreement that would be very important. The

best I think we can expect is political will to go into it because

negotiations of such an agreement would be enormous. The will is there

on the part of China and they have been talking about this and their

interests. Free trade agreement are the thing of the moment. There are

lots of them already negotiated. China has negotiated a number with

its immediate neighbours and it would be interested, I am sure, in

an agreement with the European Union. How easy would it be for the

two sides to come to an agreement to have a free trade deal in place

given the history between the two sides. Also, the many spats that

they have been between the European Union and China since China joined

the World Trade Organisation. Political will is one thing but

negotiating the text of the agreement would be long and complex.

The issues involved are huge. As China becomes more developed and

interested in other economic areas, that brings in a whole load more

questions for discussion. Thank you for your time. Before we stop

talking about China we must squeeze in the economic news from there

today. Factory growth since you are stabilised in the month of November.

`` seems to have stabilised in the month of November. Tell us more

about the economy there? What we have got is to gauges of

manufacturing from China. Both showing different but positive

pictures. The official purchasing manager's index was released this

week. It showed that China manufacturing remain strong for

November. Staying at 51.4. That is the highest level since April 2012.

Unchanged October. We then saw the ages PC purchasing manager index. It

came out this morning and stood at 50.8 in November. That is the second

highest reading in eight months. Of course, these indexes are important

because they attract manufacturing activity in China's factories and

workshops. It is closely watched as a key gauge of the health of the

economy and any reading above 50 indicates growth and anything below

that is contraction. This is more evidence that the world's second

largest economy is growing although analysts have warned about

uncertainties, the weakness in small companies and lack of crucial

employment and vulnerabilities ahead of some of the key structural

reforms that the Chinese government is putting through. China is a

important driver of new growth. Having expended 8%. Thank you very

much indeed. That story is being felt on the market. The market has

been given a boost by the news. But squeeze in one more element about

today. Online retailers brace for the busiest day of the year as

consumers take part in the annual pre` crossness shopping spree dubbed

Cyber Monday. Online shopping figures consistently paid on the

first Monday in December. Thought to be a combination of the last payday

before Christmas falling before the previous Friday and a weekend spent

browsing in the shops for purchasers. That is all from World

Business Report. I will see you soon.

Thank you Sally. The car still dominates the daily commute across

England and Wales according to a new report. Many of the money `` more

than 6% of drivers are struggling with the costs.