:00:00. > :00:00.vote had been proposed by a conservative groups. Now for the
:00:00. > :00:23.latest financial news with Sally. On a mission, which is Prime
:00:24. > :00:32.Minister and his business delegation of over 130 are in Beijing. The
:00:33. > :00:36.goal, an EU `China trade agreement. Does Europe have China wants? We
:00:37. > :00:40.assess what Europe has to offer the world's second`largest economy as it
:00:41. > :00:48.shifts from exporting to selling luxury goods at home.
:00:49. > :00:54.A very warm welcome. You are with World Business Report. Also in the
:00:55. > :01:04.programme, it is the biggest shopping day in the year for retail
:01:05. > :01:10.outlets online. It is Cyber Monday. Britain's Prime Minister David
:01:11. > :01:13.Cameron has arrived in Beijing with over 100 representatives from
:01:14. > :01:18.British business, hoping to increase their share in China's marketplace.
:01:19. > :01:24.Mr Cameron is aiming for a free trade agreement between the European
:01:25. > :01:31.Union and China and take the British `Chinese diplomatic and vertical
:01:32. > :01:35.relationship to a new level. It is a three`day meeting and the prime
:01:36. > :01:39.Minister has begun talks with the Premier. There is a trip to the
:01:40. > :01:46.financial hub in Shanghai and the inland city of Chengdu. A global
:01:47. > :01:52.centre of consumer electronics. During his stay in China he will
:01:53. > :01:55.also meet with Chinese investors. Civil society representatives and
:01:56. > :02:00.students. 50% of the delegation travelling with him are
:02:01. > :02:11.representatives from small and medium`sized companies. We have been
:02:12. > :02:14.talking to one British businessmen. Bustling Beijing this is the city
:02:15. > :02:24.for business. I'm eating a British entrepreneur who is here. Shoes,
:02:25. > :02:29.bags and showers. Dominic Johnson Hill started his business eight
:02:30. > :02:35.years ago. This is our biggest seller. We take a loss of East and
:02:36. > :02:41.West, the monkey King with the native dress. Eight means wealth in
:02:42. > :02:49.China. Is there anything you can't print? Iestyn play with Chairman
:02:50. > :02:57.Mao. `` yes, do not play with Chairman Mao. There is massive
:02:58. > :03:01.opportunity here. There is always a market here that has not been open.
:03:02. > :03:08.Especially in the creative industries in Beijing. That is
:03:09. > :03:10.something that is lacking in China. A lot of things are made here but
:03:11. > :03:19.not created here. The creative market has huge opportunities.
:03:20. > :03:24.Dominic's business now sells more than ?500,000 worth of T`shirts
:03:25. > :03:31.every year. With the right product and perseverance, you can make it in
:03:32. > :03:36.China. The aim of this trip of the British
:03:37. > :03:41.Prime Minister and code to China is to pave the way for more European
:03:42. > :03:48.companies to tap into the world 's second`biggest economy. The pace of
:03:49. > :03:51.change is fast, focusing from mass`market goods for export to the
:03:52. > :03:55.hungry high and expertise that will help them sell more goods to their
:03:56. > :04:03.own increasingly sophisticated consumers.
:04:04. > :04:13.A clothing factory in the heart of Don Quan. A town in South China.
:04:14. > :04:23.These workers are the muscle behind the economic rise. Success has
:04:24. > :04:27.economic challenges. With costs soaring the men in charge of finance
:04:28. > :04:33.here tells me the Hong Kong`based owners considered leaving the
:04:34. > :04:40.country. We don't change, we have the car was shot down the factory in
:04:41. > :04:48.China. `` we have to close shot down. These are the T`shirts that
:04:49. > :04:53.they started making. Very classy complain. As the costs grew, they
:04:54. > :05:00.had to start doing something very different. So, they started making
:05:01. > :05:08.T`shirts with more embellishment more ruffles, that are allowed them
:05:09. > :05:11.to charge more and make more profit. Officials had relied on cheap labour
:05:12. > :05:16.and exchange rates to have economic growth of 20% a year for the past
:05:17. > :05:26.three years. The is no longer viable. TRANSLATION: we will have to
:05:27. > :05:31.move England. Companies with strong brands, those with their own
:05:32. > :05:36.technology or high`end manufacturers will continue to flourish. This
:05:37. > :05:48.science Park in a nearby city is what officials hope will be the
:05:49. > :05:53.Pearl of the River Delta. Its main market is in China rather than
:05:54. > :05:56.overseas. They employ skilled, educated young workers. South
:05:57. > :06:00.China's economic transformation is just beginning. Its intention is
:06:01. > :06:04.clear. Foreign investors keen to profit from China would be wise to
:06:05. > :06:13.keep up with this trendsetting region.
:06:14. > :06:21.The Premier has only just got back from his trip to Europe. One that
:06:22. > :06:25.took him to the underdeveloped eased last week. China and 16 central and
:06:26. > :06:28.eastern European countries pledged to boost 2`way investment and trade.
:06:29. > :06:33.Mr Lee told the Romanian parliament that it is strategically important
:06:34. > :06:44.to a stronger relationship between China and Eastern Europe. Let's get
:06:45. > :06:50.some more. Good morning. It is quite interesting his trip to Europe just
:06:51. > :06:54.before David Cameron's arrival with over 100 delegates did not take him
:06:55. > :07:01.to the UK and other key economies. It is a big Chinese interest in
:07:02. > :07:04.Eastern Europe because there are big opportunities there. China is
:07:05. > :07:09.looking to invest in Europe and in a sense, Eastern Europe is cheaper and
:07:10. > :07:13.easier for Chinese investment than some of the more developed European
:07:14. > :07:20.economies. How successful do you think the trip of David Cameron's
:07:21. > :07:23.will be. He says the key objective is to broker a free trade agreement
:07:24. > :07:33.between the EU and China which some say could be worth up to $1 trillion
:07:34. > :07:39.up to 2020. You always get huge numbers with my ministerial visits.
:07:40. > :07:42.The China and the UK economies are very different. If they broker and
:07:43. > :07:46.negotiate a free trade agreement that would be very important. The
:07:47. > :07:51.best I think we can expect is political will to go into it because
:07:52. > :07:56.negotiations of such an agreement would be enormous. The will is there
:07:57. > :08:00.on the part of China and they have been talking about this and their
:08:01. > :08:06.interests. Free trade agreement are the thing of the moment. There are
:08:07. > :08:09.lots of them already negotiated. China has negotiated a number with
:08:10. > :08:13.its immediate neighbours and it would be interested, I am sure, in
:08:14. > :08:19.an agreement with the European Union. How easy would it be for the
:08:20. > :08:24.two sides to come to an agreement to have a free trade deal in place
:08:25. > :08:29.given the history between the two sides. Also, the many spats that
:08:30. > :08:36.they have been between the European Union and China since China joined
:08:37. > :08:39.the World Trade Organisation. Political will is one thing but
:08:40. > :08:46.negotiating the text of the agreement would be long and complex.
:08:47. > :08:51.The issues involved are huge. As China becomes more developed and
:08:52. > :08:58.interested in other economic areas, that brings in a whole load more
:08:59. > :09:03.questions for discussion. Thank you for your time. Before we stop
:09:04. > :09:07.talking about China we must squeeze in the economic news from there
:09:08. > :09:13.today. Factory growth since you are stabilised in the month of November.
:09:14. > :09:21.`` seems to have stabilised in the month of November. Tell us more
:09:22. > :09:28.about the economy there? What we have got is to gauges of
:09:29. > :09:32.manufacturing from China. Both showing different but positive
:09:33. > :09:37.pictures. The official purchasing manager's index was released this
:09:38. > :09:41.week. It showed that China manufacturing remain strong for
:09:42. > :09:48.November. Staying at 51.4. That is the highest level since April 2012.
:09:49. > :09:53.Unchanged October. We then saw the ages PC purchasing manager index. It
:09:54. > :09:59.came out this morning and stood at 50.8 in November. That is the second
:10:00. > :10:03.highest reading in eight months. Of course, these indexes are important
:10:04. > :10:08.because they attract manufacturing activity in China's factories and
:10:09. > :10:12.workshops. It is closely watched as a key gauge of the health of the
:10:13. > :10:17.economy and any reading above 50 indicates growth and anything below
:10:18. > :10:21.that is contraction. This is more evidence that the world's second
:10:22. > :10:27.largest economy is growing although analysts have warned about
:10:28. > :10:31.uncertainties, the weakness in small companies and lack of crucial
:10:32. > :10:34.employment and vulnerabilities ahead of some of the key structural
:10:35. > :10:41.reforms that the Chinese government is putting through. China is a
:10:42. > :10:49.important driver of new growth. Having expended 8%. Thank you very
:10:50. > :10:53.much indeed. That story is being felt on the market. The market has
:10:54. > :10:56.been given a boost by the news. But squeeze in one more element about
:10:57. > :11:02.today. Online retailers brace for the busiest day of the year as
:11:03. > :11:06.consumers take part in the annual pre` crossness shopping spree dubbed
:11:07. > :11:09.Cyber Monday. Online shopping figures consistently paid on the
:11:10. > :11:13.first Monday in December. Thought to be a combination of the last payday
:11:14. > :11:15.before Christmas falling before the previous Friday and a weekend spent
:11:16. > :11:20.browsing in the shops for purchasers. That is all from World
:11:21. > :11:35.Business Report. I will see you soon.
:11:36. > :11:38.Thank you Sally. The car still dominates the daily commute across
:11:39. > :11:45.England and Wales according to a new report. Many of the money `` more
:11:46. > :11:48.than 6% of drivers are struggling with the costs.