- PRESTUDY - BUSINESS OPPORTUNTIES AND RISKS FOR SWEDISH COMPANIES LINKED TO BEIJING WINTER OLYMPICS 2022 - JANUARY 2017 - 1 EXECUTIVE SUMMARY Beijing 2022 was a successful bid by the Chinese Olympic Committee to host the 2022 Winter Olympics in Beijing, China. The games taking place between February 4th and February 20th, 2022 are aimed at both promoting Chinese athletics and sports as well as fueling the rapid development of the Beijing, Tianjin, Hebei region into an economic powerhouse of China and a model area for sustainable development in terms of population, resources and environment. Substantial investments in the region and considerable business opportunities are expected leading up to Beijing 2022. Against this backdrop, it is important to early position Sweden within the competitive landscape in order to stand out from both domestic and foreign alternatives. This study hence aims to chart out relevant business opportunities and establish contacts to main Chinese stakeholders. Consequently, information and suggested approaches to pursuing relevant opportunities will be sourced back to Swedish stakeholders for these to start mobilizing and taking position. Beijing 2022 will be hosted across 25 competition and non-competition venues located in Beijing, Yanqing and Zhangjiakou. This will entail the installation and construction of infrastructure competition venues, transport infrastructure and Wi-Fi network expansion, among others amounting to an estimated total of CNY 1,388 billion in direct and indirect investments and the employment of minimum 200,000 jobs. The study presents a review and analysis of five different areas of business opportunities from a sustainability perspective which will be allocated parts of the investment funds, namely, construction, energy, transportation, telecom, municipal engineering highlighting specific projects and their investment plan, procurement platforms, timelines, stakeholders as well as a suggested approach. Among the relevant projects highlighted can be found plans for constructing and expanding the venue and transport infrastructure of Zhangjiakou e.g. building a National Speed Skating Center, Nordic Cross Country Venue, Beijing Olympic Village constructing a Low Carbon Olympic Zone, Central Solar Heating Stations, Beijing-Zhangjiakou intercity railway, Yanqing-Chongli highway and more. The study finds that Sweden is well positioned in terms of knowhow to take advantage of the given opportunities presented by the Beijing 2022 Olympic Games. Additionally, as the Organizing Committee has particularly emphasized sustainable development throughout the preparation for and epilogue of progress in the field of CSR and sustainability pertaining to areas such as child labor, fraudulent labor agents, unfair labor rights, dispatched workers, trafficking and prostitution, scarce lodging and living, environmental exploitation etc. Highlighting sustainability aspects, potential risk areas while also informing about the guidance and support that Sweden can provide within the area of responsible business is a major consideration in positioning Swedish companies within the competitive landscape. The report recommends a joint Team Sweden approach featuring the Embassy of Sweden in Beijing, Business Sweden and the Swedish Chamber of Commerce in the establishment of a business platform from which both Swedish and Chinese parties can operate. This platform would serve to direct and organize communicational activities and meetings. Further, the report recommends sending a high level essential services and tools. Competition is intense; therefore, efforts should be mobilized quickly to secure the best chance for Sweden to compete for the procurement opportunities offered by the Beijing 2022 Winter Olympic Games. 2 CONTENTS EXECUTIVE SUMMARY ............................................................................................................................... 2 A SUCCESSFUL BID WITH OPPORTUNITIES AHEAD FOR SWEDEN ............................................................... 4 INTRODUCTION TO BEIJING 2022 ............................................................................................................ 6 POTENTIAL BUSINESS OPPORTUNITIES .................................................................................................... 9 1. VENUE CONSTRUCTION (CONSTRUCTION) ......................................................................................... 9 2. RENEWABLE ENERGY DEMONSTRATION CITY (ENERGY) .................................................................... 12 3. BEIJING-ZHANGJIAKOU INTERCITY RAILWAY AND AIR (TRANSPORT) ............................................. 15 4. FREE WI-FI ACCESS AND 5G UPGRADE (TELECOM) ........................................................................... 18 5. WASTE AND SEWAGE RECYCLING (MUNICIPAL ENGINEERING) ........................................................ 21 CROSS SECTOR ANALYSIS ....................................................................................................................... 24 APPROACH .......................................................................................................................................... 24 SUSTAINABILITY - ENVIRONMENTAL PERSPECTIVE ............................................................................. 25 SUSTAINABILITY - SOCIAL PERSPECTIVE ............................................................................................ 26 RISK MITIGATION ............................................................................................................................... 27 EQUALITY ............................................................................................................................................ 28 CONCLUSIONS AND RECOMMENDATIONS ............................................................................................... 29 COMMUNICATION AND ACTION PLAN ..................................................................................................... 32 ILLUSTRATIVE TIMELINE......................................................................................................................... 33 APPENDIX ............................................................................................................................................... 34 MAPPING OF FAIRS ............................................................................................................................. 34 SOURCES ............................................................................................................................................. 37 3 A SUCCESSFUL BID WITH OPPORTUNITIES AHEAD FOR SWEDEN A SUCCESSFUL BID Beijing 2022 was a successful bid by Beijing, China and the Chinese Olympic Committee for the 2022 Winter Olympics. The International Olympic Committee (IOC) selected the host city for the 2022 Winter Olympics at the 128th IOC Session in Kuala Lumpur, Malaysia on July 31, 2015 - Beijing won. As Beijing already hosted the summer Olympics in 2008, this will make summer and winter Olympic Games. The Beijing 2022 will take place on February 4 to February 20, 2022.1 VISION Beijing 2022 will, according to the International Olympic Committee (IOC), spread and practise the Olympic values, and encourage 300 million people in northern China to participate in winter sports, thus integrating sport into their daily life. Beijing 2022 will enhance the competition skills of Chinese athletes and promote the development of sports in China. The influence of the Olympic Winter Games will furthermore help the Beijing, Tianjin and Hebei region to become a new economic powerhouse of China as well as a model area of sustainable development in terms of population, resources and environment, thus benefiting the general public. 1. 2. 3. according to IOC: Running athlete-centred Games. As the ultimate priority, athletes will be provided with good services in areas such as training, competition, transport, accommodation, catering, medical care and cultural communications, thus ensuring they perform their best; Ensuring sustainable development. With sustainable development as its core strategy, Beijing 2022 will be incorporated into the National Strategy of the Integrated and Coordinated Development of Beijing, Tianjin and Hebei as well as the long-term regional development plan, so that the Games showcase improvements in the urban ecological environment, economic growth and social progress, achieving positive interaction between the Olympic Movement and the region; and Hosting economical Games. Beijing 2022 will adhere strictly to the policy of being meticulous, prudent and feasible in budgeting, raising funds primarily through the Chinese market, and strictly controlling the operational and capital costs. All newly built venues will satisfy the requirements of the Games and be temporary structures or a combination of temporary and permanent facilities. They all have well-developed post-Games use plans. LEGACY AND SUSTAINABILITY At the inception of the bid for Beijing 2022, planning was conducted with the aim of creating Olympic legacies through sustainable projects. Beijing 2022 will endeavour to improve the environment and promote progress in sport, society, the region and the economy. It will create both tangible and intangible legacies, including newly built venues, upgraded transport infrastructure, sports and tourism development, and an increase in the number of participants in sport, thus enhancing the pride and confidence of the people, promoting healthy lifestyles and strengthening environmental awareness.2 1 2 China Daily Asia; 2022 Winter Games venues to start construction 2017; Wang Zhao International Olympic Committee; Beijing 2022 4 BUSINESS OPPORTUNITIES AHEAD FOR SWEDEN Beijing 2022 will mean substantial investments for the region and thus considerable business opportunities. It is important to position Sweden early in order to stand out from Chinese and other foreign alternatives. Thus, this study aims to map out relevant business opportunities from a sustainability perspective, establish contacts to Chinese main stakeholders and then source back the information and approaches for how to pursue these opportunities back to Sweden for our companies to start mobilizing and take position. Based on insights from other markets which are about to, or have already hosted Olympic Games, the investments and business opportunities will follow a timeline with bigger and more complex opportunities early on in such industries as transport and infrastructure. Examples of projects that will be carried out well before 2020 are roads and railway tracks followed by constructing the actual sites, including building ski-slopes etc. These are projects with longer sales cycles for larger investments focusing on B2B and B2G. Closer to the actual event, sales cycles will be shorter and more focused on B2C with business opportunities for retail related companies including suppliers of everything from food to winter sports equipment. With regards to Beijing 2022, business opportunities also lie after Beijing 2022 since it is decided that all the bigger zones shall be turned into recreational areas, which is well aligned with the booming domestic tourism trend. Chinese authorities and The Beijing Organising Committee have clearly stated sustainable development will be in focus while preparing for Beijing 2022. Unfortunately there are plenty of examples from all around the world of Olympics Games hosts that have failed from a sustainability perspective. Sweden has a good position from start given our recognised advancements in various relevant sectors such as construction, transport and telecom etc. Moreover, on top of the knowhow Sweden is also renowned for the progress in the field of CSR and sustainability. well-developed solutions and service concepts along with our efforts in the field of sustainability and CSR will serve as a comparative advantage and shall be highlighted when presenting and positioning Sweden and Swedish companies to Chinese authorities and potential buyers. Thus, for Swedish companies pursuing opportunities in China it will be essential to point out potential risk areas and inform about what guidance and support Sweden can provide within the area of sustainable and responsible business. Given the communicated statements in the vision as well as legacy and sustainability from The Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games, Swedish companies should have good preconditions for several substantial businesses opportunities in all phases from now and until 2022. REPORT OUTLINE This report provides an overview and analysis of the business opportunities associated with the 2022 Olympic and Paralympic Winter Games including: Introduction to Beijing 2022 Description of analysed business opportunities, stakeholders and risks Conclusion and recommendation for future efforts Communication plan and timeline Mapping of relevant fairs This report identifies areas where Swedish companies can provide valuable contributions to the development of Beijing 2022 and suggested areas of cooperation. Moreover, the report includes main recommendations for how the Swedish companies should position themselves and a foundation for building the value proposition. 5 INTRODUCTION TO BEIJING 2022 GAME ZONES AND VENUES A total of 25 competition and non-competition venues, located in Beijing, Yanqing and Zhangjiakou respectively, will be used at the 2022 Olympic and Paralympic Winter Games. Both the Yanqing and Zhangjiakou zones are located to the north-west of the Beijing zone along the Yanshan mountain range. With favourable temperatures, average freeze periods and snow depths, as well as wind speeds, these two locations are ideal for the snow sports competitions of Beijing 2022. In addition to satisfying all technical requirements, and with approval from all International Federations, the distribution of the venues in the three zones will maximise opportunities for post-Games use, benefiting the development of Olympic winter sports in and around Beijing and encouraging more people to participate. The three zones will be connected by a high-speed railway and a number of expressways. The high-speed railway will reduce the travel time between the Beijing and Zhangjiakou zones to 50 minutes (station to station). Within each zone, all the venues are linked by high-standard roads and convenient public transport, and are within five to 15 minutes of the Olympic Villages, to ensure the competitions.3 BEIJING The Beijing Competition Zone will be home to three Olympic winter sports, namely Curling, Ice Hockey and Skating. It will group 12 venues, including eight that remain as a legacy from the Beijing 2008 Olympic Games, three newly-built, and one temporary. The National Indoor Stadium, in the centre of the Olympic Green, is three kilometres or a five-minute ride 18,000. The Wukesong Sports Centre, located in the west of Beijing, is 19 kilometres or a 15-minute ride from the Olympic Village. It will be the co capacity of 9,000. The Capital Indoor Stadium is 10 kilometres or a 10-minute ride from the Olympic Village. With a seating capacity of 18,000, it will host the Short-Track Speed Skating and Figure Skating competitions. The National Aquatics Centre, in the heart of the Olympic Green, is two kilometres or a five-minute ride from the Olympic Village. Curling competitions will be held here. It has a seating capacity of 4,500. The National Speed Skating Oval, to be built in the north of the Olympic Green, is six kilometres or a five-minute ride from the Olympic Village. It has a seating capacity of 12,000.4 3 4 International Olympic Committee; Beijing 2022 Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games; Competition Zones 6 YANQING The Yanqing Zone has a total of 5 competition and non-competition venues aimed to accommodate 1,430 athletes and team officials. The zone will host 4 sports and 20 events; it will be split up into two Centres - the national alpine ski centre and the national sliding centre. The development of Yanqing Zone will improve local transport and infrastructure facilities of the surrounding area, and create favourable conditions for regional development. ZHANGJIAKOU The Zhangjiakou Zone has a history of hosting the ski industry for nearly 20 years. Currently, there are 5 existing ski resorts in operation, making it the leader of the national ski industry. It is also a ski and holiday destination for ski enthusiasts from surrounding countries. The Zhangjiakou Zone, with a total of 8 competition and non-competition venues, will host six sports and 50 events, thus be divided into two centres and a park, the Nordic Centre and Biathlon Centre and the Genting Snow Park.5 KEY STAKEHOLDERS STAKEHOLDER Beijing 2022 Winter Olympic Organizing Committee Hebei Provincial Government MAIN ROLE AND RESPONSIBILITY Owns the master plan and handles the overall administration for the whole program Drives coordination of all related projects Zhangjiakou Municipal Government Drives implementation of all related projects The key stakeholders are the Beijing 2022 Winter Olympic Organizing Committee, the Hebei Provincial Government and the Zhangjiakou Municipal Government, which all have different roles and responsibilities. Also the main role and responsibility may vary depending on sector and related business opportunity. FINANCIAL PROJECTIONS In order to make the necessary installations for the game zones and venues the employment of minimum 200,000 jobs along with the following investment projections are estimated: DIRECT INVESTMENT: 28 billion CNY Other; 6 INDIRECT INVESTMENT: 1,360 billion CNY Infrastructure; 300 Game plan and organization; 11 Anti-pollution measures; 760 Winter sport industry; 300 Venue renovation and construction; 11 With regards to the direct investments, the game plan and organization are mainly funded by IOC and the Beijing government and as for the venue renovation and construction 65% comes from private investments and rest comes from the government. As for the indirect investment, it is mainly funded through the public-private-partnership model.6 5 6 Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games; Competition Zones Beijing-Zhangjiakou Winter Olympic Development Report; Beijing Reform and Develop Research Association 2016 7 Above: Presentation of the candidate cities for the 2020 Winter YOG and the 2022 Olympic Winter Games. 8 POTENTIAL BUSINESS OPPORTUNITIES The following sectors, 1. Construction, 2. Energy, 3. Transport, 4. Telecom and 5. Municipal engineering, have been chosen for this analysis based on a concrete set of criteria. Firstly, the sectors had to exhibit projects of significant size and substantial opportunity. Secondly, the sectors encompassed industries within which Sweden has a comparatively advantageous position, both in terms of products and services as well as sustainability. Thirdly, Sweden has specific competencies and is well positioned to aid companies in pursuing contracts within the given sectors. Finally, the projects within the chosen sectors have a long timeframe and are planned well in advance. Hence, these are the sectors that currently require elevated attention. Below is an estimate of coverage per investment class and investment area. Yellow indicates investment coverage relative to investment area whereas the label indicates sector. DIRECT INVESTMENT (coverage 30% of total) INDIRECT INVESTMENT (coverage 4% of total) Energy Transport Other; 6 Infrastructure; 300 Game plan and organization; 11 Venue renovation and construction; 11 Anti-pollution measures; 760 Winter sport industry; 300 Construction 1. VENUE CONSTRUCTION (CONSTRUCTION) In 2015, Hebei authorities drafted some 15 plans, including the 2022 Winter Olympic overall plan, the competition venues plan, a transportation plan, and a cultural industry plan. Now, Hebei has completed the top-design of regional transportation network and supporting infrastructure for Zhangjiakou. At a city level, Zhangjiakou, about 200 kilometres northwest of Beijing, worked out a series of plans for the winter sports event, including general framework and industrial upgrading. The city also invited teams from Tsinghua University to draw up blueprints for Chongli, which is to hold most of the skiing events during the 2022 Winter Olympic Games. Expected to host freestyle skiing, snowboarding, and the Nordic disciplines, Zhangjiakou is undertaking the construction of required facilities in its eastern part, Chongli County. There will be a Nordic Center containing both the Cross Country Venue and the Ski Jumping Venue, whose postA Biathlon Center will also be built along with a Genting Snow Park.7 In 2017, Hebei will spare no efforts in the design and construction preparation of venues, basic infrastructure construction, and winter sports popularization, in order to lay a solid foundation for a successful Winter Olympics. On December 6 2016, Li Pu, deputy director of the Winter Olympics in Hebei Province, said the construction of those Olympic facilities will start from 2017, including construction of venues for biathlon, cross-country skiing, ski jumping, and renovation of Yunding Ski Field, a proposed venue for alpine skiing. Hebei province will fully start to work on the competition venues, supporting infrastructure, and other tasks with the aim of popularizing the snow and ice games. 8 7 8 China Org Cn; Solid start for Hebei in preparing for 2022 Winter Olympics China Daily Asia; 2022 Winter Games venues to start construction 2017; Wang Zhao 9 EXAMPLE PROJECTS UP FOR BIDDING: Nordic Centre Ski Jumping Venue Nordic Centre Cross Country Venue Biathlon Centre Genting Snow Park for Freestyle Skiing and Snowboard Supporting infrastructure such as the Olympic Village Snow and ice supporting infrastructure INVESTMENT PLAN9 VENUE LOCATION National Speed Skating Centre National Alpine Ski Centre National Ski Centre Biathlon Centre Nordic Centre Cross Country Venue Nordic Centre Ski Jumping Venue Beijing Olympic Village Yanqing Olympic Village Zhangjiakou Olympic Village Beijing Yanqing Yanqing Zhangjiakou Zhangjiakou Zhangjiakou Beijing Yanqing Zhangjiakou PUBLIC INVESTMENT (MCNY) 531 1 004 992 PRIVATE INVESTMENT* (MCNY) 650 439 583 372 1 821 692 707 TOTAL INVESTMENT (MCNY) 1 181 1 004 992 439 583 372 1 821 692 707 * Private investment: The venues will be developed by private investors and then leased for the Olympic Games. The venues will later be developed for commercial operations and the Olympic villages will be sold as apartments and or developed into hotels. LOCATION All business opportunities are located in Chongli County of Zhangjiakou, Yanqing and in Beijing. TIMELINE Venue construction preparations will start in 2017 and are expected to continue until the actual games although the size and scope of the projects will decline closer to 2022. APPLICABLE TO 9 INDUSTRY COMPANY EXAMPLE Design Waste recycling Security Construction Sweco, ÅF, Rejlers Stena, Ragn-Sells, Gunnebo, Axis Skanska, Peab, Bravida Beijing-Zhangjiakou Winter Olympic Development Report; Beijing Reform and Develop Research Association 2016 10 KEY STAKEHOLDERS STAKEHOLDER Beijing 2022 Winter Olympic Organizing Committee Hebei Provincial Government ROLE AND RESPONSIBILITY Zhangjiakou Municipal Government Implementation Master plan and overall administration Coordination Above: Overview of venue projects. 11 2. RENEWABLE ENERGY DEMONSTRATION CITY (ENERGY) has approved the plan of having the city of Zhangjiakou in Hebei province serve as a demonstration site for renewable energy. Shi Dinghuan, former Counsellor at the State Council and currently the Chairman of the China Renewable Energy Society, recently told an audience of reporters that the approval from the State Council and the successful bid for the Olympic Games jointly by Beijing and Zhangjiakou will further drive the development of the renewable energy sector in Zhangjiakou. to the richness of both the wind and solar energy resources available there. The city has also been named one of China the region that includes the province of Hebei and the self-governed municipalities of Beijing and Tianjin. The plan is predicated on the expectation that the emerging industrial cluster represented by the stretching to 2030, Zhangjiakou will host projects across the emerging industries spectrum, including new energy, big data, new materials and new energy vehicles, with the anticipation of achieving an average annual growth rate of 15% in added value. By 2020, emerging industries are forecast to account for approximately 15% tion value, and then grow to 30% by 2030. Zhangjiakou aims to achieve wind power generation installation capacity of 13 GW, PV (photovoltaic power) generation installation capacity of 6 GW and high-power solar power generation installation capacity of 1 GW by 2020. If all goes according to plan, the numbers should respectively increase to 20 GW, 24 GW and 6 GW (gigawatt) by 2030. The plan calls for the city to have a renewable energy power generation installation capacity of up to 20 GW and to generate more than 40 billion kWh of electricity using renewable resources annually by 2020, then grow to respectively reach 50 GW and 95 billion kWh by 2030. Renewable energy will account for 30% of all energy consumed by 2020, and rise to 50% by 2030. By 2020, 55% of electricity consumed will be generated from renewable resources. Renewable energy will be used for all urban public transportation as well as for 40% of residential and 50% of commercial use. hieve a zero-carbon emission target. By 2030, 80% of electricity consumed will be generated from renewable resources. Renewable energy will be the sole source of power for all urban public transport as well as all residential and commercial applications. One hundred percent of the manufacturing operations would be expected to have achieved a zero carbon emission target by then.10 In order to promote the large scale development of biogas and supplement the power supply for Beijing 2022 Winter Olympics, Zhangjiakou city carried out a number of biogas pilot projects. Among the projects, Zhangjiakou Xuanhua Agricultural Renewable Energy Recycling Pilot Project was supported by the National Development and Reform Commission and Ministry of Agriculture. The project is invested in by Zhangjiakou Yuanhui Biomass Technology Co., Ltd. 11 The project includes two pre-treatment workshops, eight anaerobic fermentation tanks, one purification workshop and one fertilizer workshop. The project will treat 33,000 tons of crop straw, 0,4 million tons of livestock manure and produce 7,3 million cubic meters of biogas, 35,000 tons of organic fertilizer and 9,200 tons of industrial liquid carbon dioxide. The total investment is 120 million RMB. In addition to this project, there are 3 more large scale biogas pilot projects spreading in Hebei province. 12 10 11 12 Renewable Energy World; Zhangjiakou, China to Be Named as Renewable Energy Demonstration City; Liu Yuanyuan Hebei Development and Reform Commission; 河北省拟申报国家 2016 年规模化生物天然气工程试点项目名单公示 GDTZB; 宣化县农业可再生能源循环利用示范项目 12 EXAMPLE PROJECTS UP FOR BIDDING: PV (photovoltaic power) generation installation Wind power generation installation High-power solar power generation installation Biogas pilot projects INVESTMENT PLAN13 PROJECT LOCATION INVESTMENT (billion CNY) Low Carbon Olympic Zone Zhangjiakou n/a Central Solar Heating Stations Zhangjiakou n/a 1,000 kV high voltage power transmission project Renewable Energy Hydrogen Production (with 200,000 kW wind power supporting projects) Biogas pilot projects Zhangjiakou n/a Zhangjiakou 2 Zhangjiakou 0,1 LOCATION All business opportunities are located in Zhangjiakou. TIMELINE14 PROJECT COMMENCE COMPLETE Low Carbon Olympic Zone 2017 2022 Central Solar Heating Stations 2016 2020 1,000 kV high voltage power transmission project Renewable Energy Hydrogen Production (with 200,000 kW wind power supporting projects) Biogas pilot projects 2017 2020 2017 n/a 2016 n/a APPLICABLE TO 13 14 INDUSTRY COMPANY EXAMPLE Low Carbon Olympic Zone Scania High-power solar power companies Cleanergy High voltage power transmission companies ABB Biogas pilot projects Scania Hydrogen Production companies Vattenfall Vind ITDCW; 河北沽源 20.3 亿元风电制氢项目整体并网 年制氢 Zhangjiakou Development and Reform Commission; Action Plan to Establish Renewable Energy Demonstration Zone in Zhangjiakou 13 KEY STAKEHOLDERS STAKEHOLDER ROLE AND RESPONSIBILITY Hebei Provincial Government Evaluate and approve Zhangjiakou Development and Reform Commission Plan and lead the project Zhangjiakou Power Supply Company Implementation District and county governments Implementation Above: Renewable energy installation, China. 14 3. BEIJING-ZHANGJIAKOU INTERCITY RAILWAY AND AIR (TRANSPORT) RAILWAYS China will build an extension line of the Beijing-Zhangjiakou high-speed railway that will become operational in 2019 to serve the 2022 Winter Olympics. With a designed speed of 250 km per hour, the 53.2 kilometre rail line will extend from the Beijing-Zhangjiakou railway to Chongli District of Zhangjiakou City, Hebei Province, where most skiing events for the 2022 Winter Olympics will be held, local authorities said on June 3 2016. Construction of the railway in Chongli has been approved by China Railway Corporation and Hebei Provincial Government, said the development and reform commission of Zhangjiakou City, the local economic planner. Construction on the Beijing-Zhangjiakou high-speed rail link and construction on the Chongli high-speed rail started in 2016. Travel time between Beijing and Zhangjiakou via the new rail line will be 50 minutes and the trip from Zhangjiakou to Chongli, will take 25 minutes. The new high-speed rails will serve the Winter Olympics, help boost tourism in Chongli and improve transportation for locals. It will also serve as a part of the Beijing-Tianjin-Hebei regional intercity rail network.15 EXPRESSWAYS The construction of Yanqing-Chongli Expressway, a major transportation project for the 2022 Winter Olympic Games, will start by the end of this year and is expected to be completed in 2019, said China's Hebei provincial department of transportation on November 19, 2016. The 113 kilometre expressway will connect Beijing and Zhangjiakou. The project, which will be implemented under the PPP (public and private partnership) model, is among a series of projects designed to upgrade the two cities' transportation. AIR Hebei has rolled out a plan in a bid to improve Zhangjiakou's transportation infrastructure. Besides the Yanchong Expressway, the plan includes the Beijing-Zhangjiakou high-speed railway and also the expansion of the Zhangjiakou Airport. Hebei has vowed to complete all transportation projects relating to the Winter Games by 2020 with high standards. EXAMPLE PROJECTS UP FOR BIDDING: Beijing-Zhangjiakou intercity railway: The project was started in 2015 and is expected to be completed in 2018. The investment is estimated as 30 billion CNY. Even though the project has started projects may still exist since the project is built on phases which all may not yet have been procured. Also, along with this project comes the order of a new train fleet to fill the line. Yanqing-Chongli Expressway: A new highway from Yanqing to Chongli will be built. The total length is about 80 km, of which one third are in Beijing, including a 6 km tunnel. The project will be completed in October 2021 and the investment is estimated as 12 billion CNY. Xingyan expressway: Starting from Beijing northwest sixth ring road, through Changping to Yanqing, the entire length is 42 km, with a total investment of 16 billion CNY. A number of tunnels will be built to shorten the distance as much as possible between the urban area and Yanqing. The project was started at the end of 2016 and will be completed in 3 and a half years Zhangjiakou Ningyuan airport reconstruction and expansion project has completed revision of overall planning and is expected to start during the second half of 2017. The level of Ningyuan Airport will be upgraded from 4C to 4D. The project includes extending the current runway by 500m, building 2 new taxiways, and expanding the west apron as well as support facilities. By 2020, the turnover of the airport will be 600,000 passengers from a current 300,000.16 15 16 China Daily; Deepest rail station coming to Badaling; Zheng Jinran Beijing-Zhangjiakou Winter Olympic Development Report, Beijing Reform and Develop Research Association 2016 15 INVESTMENT PLAN PROJECT LOCATION INVESTMENT (billion CNY) Beijing-Zhangjiakou intercity railway Beijing-Zhangjiakou 30 Yanqing-Chongli highway Yangqing-Chongli 12 Xingyan Expressway Beijing-Yanqing 16 Zhangjiakou Ningyuan Airport Expansion Zhangjiakou n/a LOCATION All business opportunities are located between Zhangjiakou and Beijing. TIMELINE PROJECT COMMENCE COMPLETE Beijing-Zhangjiakou intercity railway 2015 2018 Yanqing-Chongli highway 2016 2021 Xingyan Expressway 2016 2019 Zhangjiakou Ningyuan Airport Expansion 2017 2019 APPLICABLE TO INDUSTRY COMPANY EXAMPLE Railway related companies Sandvik, WSP Sverige, ÅF, SKF, ABB Highway related companies Volvo Trucks, Scania, NCC, Svevia, Skanska Airport related companies Swedavia, ENVAC, SafeAero, Safegate KEY STAKEHOLDERS STAKEHOLDER Beijing 2022 Winter Olympic Organizing Committee Beijing-Zhangjiakou Intercity Railway Company Hebei Provincial Government ROLE AND RESPONSIBILITY Evaluate and approve Owner and operator of Beijing Zhangjiakou Intercity Railway Support and coordinate 16 Above: Expressway tunnel project, China. 17 4. FREE WI-FI ACCESS AND 5G UPGRADE (TELECOM) FREE WI-FI ACCESS ACROSS HEBEI PROVINCE Hebei will accelerate the wireless local area network (Wi-Fi) construction. Before 2020, Hebei province aims to build the capacity enabling it to provide full coverage of free Wi-Fi. At present, Shijiazhuang, Langfang Handan, Luquan, Zhengding, Wuyi as well as other cities and counties provide free Wi-Fi coverage from 720 hot spots as well as the installation and distribution of 18,000 AP devices. Wireless LAN (Wi-Fi) construction in Hebei Province will be integrated using leading wireless LAN technology, mobile Internet technology, cloud computing, data analysis technology as well as information security technology. The purpose is to promote "unified registration certification, unified service brand (i-Hebei, love Hebei), unified standard", to set up a free Wi-Fi network throughout the entire province, to provide public hotspot area internet services to all citizens and to achieve a free, easy to use and safe service experience. The following locations of main urban areas above county level will be fully covered by free Wi-Fi: train and bus stations, airports, subway stations, medical institutions, administrative service halls, development zones, special towns, libraries, museums, parks, squares, sports centres, tourist attractions and other public areas. Other areas to be covered include large-scale shopping malls, shopping centres, bustling commercial districts, professional markets as well as other commercial establishments and hotels. The coverage will also encompass financial, insurance, securities and other financial institutions.17 5G UPGRADE The Deputy Director of the Chinese Academy of ICT Mobile and Big Data Research Department, Wei Kai has stated that due to the high degree of global concern regarding large-scale events, media exposure is high. In this environment, the application of new technologies can direct more attention to the event itself. In addition, an early adopter of new technologies requires large investments. Large-scale events happen to have the budget to invest. Hence, preparations for the Olympic Games have become a fertile period for the expansion and trial of 5th generation mobile networks (5G) and technologies, respectively. Beijing expects to implement the pre-commercial service of 5G networks at key locations by 2020, according to a development plan on big data and cloud computing released by the municipal government. The locations include the city's subsidiary administrative centre, the Horti Expo Park of 2019, the new airport, and the stadiums of the 2022 Winter Olympic Games. The trial run is likely to happen before 2020, and full implementation will "definitely" be ready by the 2022 Winter Olympic Games. "Right now we are already reserving the facilities for installing base stations in the future," said Mao Dongjun on August 19 2016, Deputy Director-General of Beijing Municipal Commission of Economy and Information Technology. "Unlike previous 4G technologies, a 5G base station can hold a much greater bandwidth, but the radius is relatively small. Therefore, the density of base stations has to be expanded by 5 to 10 times."18 EXAMPLE PROJECTS UP FOR BIDDING: Base Station Construction Cable Supply 17 18 Top News Technology; Hebei: The main urban area of the city will cover free WiFi China Daily; Beijing to try out 5G in key areas by 2020; Liang Shuang 18 INVESTMENT PLAN n/a LOCATION These business opportunities are located in Beijing and Hebei Province. TIMELINE Free Wi-Fi access across Hebei Province started in 2016 but will continue to run until the end of 2019 whereas the 5G upgrade started in 2016 and will run until 2020. APPLICABLE TO INDUSTRY COMPANY EXAMPLE ICT related companies Ericsson KEY STAKEHOLDERS STAKEHOLDER ROLE AND RESPONSIBILITY China Mobile Developer and operator Unicom Beijing 2022 Winter Olympic Organizing Committee Zhangjiakou Municipal Government Developer and operator Evaluate and approve Coordinator 19 Above: 5G antenna, China. 20 5. WASTE AND SEWAGE RECYCLING (MUNICIPAL ENGINEERING) Six provincial regions have jointly launched a resource recycling project to handle industrial waste in areas surrounding the Chinese capital. By 2017, 400 million tons of industrial solid waste will be disposed annually after the implementation of the project. The project was initiated by Beijing and its surrounding municipalities and provinces, including Tianjin, Hebei, Shanxi and Shandong, as well as the Inner Mongolian Autonomous Region. Under the project, planners aim to develop an industry able to recycle 20 million tons of resources each year and with its output value reaching 220 billion CNY ($35.4 billion) by 2017. The project will help foster new economic growth, alleviate environmental and resource restrictions and promote regional coordinated development, said Mao Weiming recently, Deputy Head of the Ministry of Industry and Information Technology (MIIT). The move is also part of an interprovincial program for integrated development between Beijing and the nearby Tianjin Municipality and Hebei Province. Environmental protection is a priority of the program. As an economic hub in North China, Beijing and its surroun industrial solid waste, such as gravel, slag, plastics and coal ash. That has put increasing pressure on the environment, especially with a growing threat to water quality in those regions. In 2014, 2.37 billion tons of bulky industrial solid waste was produced in Beijing and the five provincial regions surrounding it, taking up more than 70% in these areas, pollutants from explosives used in quarrying each year exceed the annual emissions of all motor vehicles in Beijing. Resource recycling is a fundamental solution to the industrial waste threat, but the development of the industry faces several problems, including technological difficulties and lack of integration, said Bi Junsheng recently, an official with the MIIT.19 Since the Olympic venues are still under design and planning, the waste and sewage handling systems around the game venues in Beijing, Yanqing and Zhangjiakou are still under development and the plan for these will be finalized during the first half of 2017. EXAMPLE PROJECTS UP FOR BIDDING: Garbage collection Water supply Wastewater recycling INVESTMENT PLAN n/a 19 Eco Business; Recycling project targets industrial waste around Beijing 21 LOCATION These business opportunities are located in Hebei. TIMELINE n/a APPLICABLE TO INDUSTRY COMPANY EXAMPLE Waste related companies Envac, Kabona , MRT System, Malmberg Sewage related companies Swedish Hydro Solutions, DK-DOX KEY STAKEHOLDERS STAKEHOLDER ROLE AND RESPONSIBILITY Hebei Provincial Government Evaluate and approve Zhangjiakou Municipal Government Implementation Local garbage collection companies Developer and operator Local water supply companies Developer and operator Local wastewater recycling companies Developer and operator 22 Above: Sewage waste installation, waste handling zone, China. 23 CROSS SECTOR ANALYSIS Below sections Approach, Sustainability and Equality go across and are hence applicable to all business opportunities in the previous chapter. APPROACH STAKEHOLDER MAPPING X X X X X 5. WASTE AND SEWAGE RECYCLING 4. FREE WI-FI ACCESS AND 5G UPGRADE 1 3. BEIJINGZHANGJIAKOU INTERCITY RAILWAY AND AIR STAKEHOLDER Beijing 2022 Winter Olympic Organizing Committee 1. VENUE CONSTRUCTION # 2. RENEWABLE ENERGY DEMONSTRATION CITY BUSINESS OPPORTUNITY 2 Hebei Provincial Government X X 3 Zhangjiakou Municipal Government X 5 Zhangjiakou Development and Reform Commission X 6 Zhangjiakou Power Supply Company X 7 District and county governments X 8 Beijing-Zhangjiakou Intercity Railway Company 9 China Mobile X 10 Unicom X 11 Local garbage collection companies X 12 Local water supply companies X 13 Local wastewater recycling companies X X X X The Beijing 2022 Winter Olympic Organizing Committee, the Hebei Provincial Government and the Zhangjiakou Municipal Government are the important stakeholders to consider when pursuing any of the business opportunities in this report. They have somewhat different roles and responsibilities, also these may vary depending on sector related business opportunity. Beijing 2022 Winter Olympic Organizing Committee is generally the most important stakeholders since it is the most influential party controlling the Olympic master plan at the 24 same time as the Committee handles the overall administration for the whole program. The committee also evaluates and approves procurements. Another important stakeholder is the Hebei Provincial Government which often has the role of supporting above committee in various ways as well as coordinating the different projects. However, depending on size of projects, the Hebei Provincial Government also evaluates and approves procurements. The Zhangjiakou Municipal Government has generally the role of driving implementation of decisions taken by the Organizing Committee and or the Hebei Provincial Government or support these with coordination. As shown above these three stakeholders are involved across all sectors, but not always represented together. Their different roles and functionalities are important to regard when approaching the different business opportunities described in this report. SUGGESTED APPROACH Once a company has found and decided to bid on a project they should contact the project owner or the bidding agency and present their application in accordance to the instructions found on the public tender platforms, listed below. Companies interested in the Olympic related procurements are encouraged to establishing a cooperative relation with local governments to be better prepared and positioned when an eventual tender invitation is released. A first step in building such a relation is often a letter of intent containing short information on intention, company profile and expected areas of cooperation. The status of the venue construction projects will be updated by Beijing 2022 Organizing Committee on their homepage: http://www.beijing2022.cn/, whereas the other projects will be published and updated on the general national tender platforms: http://www.bcactc.com/default.aspx, http://www.bjggzyfw.gov.cn/, http://zjk.hebpr.cn/ http://www.chinabidding.com/ and http://www.hebpr.cn/. All of these sites should always be under close observation. SUSTAINABILITY - ENVIRONMENTAL PERSPECTIVE At the beginning of September 2016, China announced its plans to ratify the Paris Agreement, a move positively welcomed by the global community. The announcement however comes amidst what has been referred to as an environmental crisis in China. Years of rapid economic growth, industrialization, urbanization and rising living standards have caused growing emissions and waste. China, as the largest emitter of greenhouse gases in the world, currently stands for 20 percent of the global total. Air pollution has hence been at the centre of attention. Another major problem concerns water depletion and pollution Additionally, negligent farming practices, overgrazing and climate change have contributed to 20 Above Indeed, China has on a political level charted out ambitious environmental initiatives in recent five-year plans; although, questions have been raised with regards to their implementation. 21 The areas where a majority of the Beijing 2022 event will be held, Beijing, Yanqing and Zhangjiakou, all face the challenges, air pollution, water depletion and pollution and desertification, albeit to different extent. The air pollution is for example more apparent in Beijing than in the smaller surrounding cities. 20 21 Council on Foreign Relations; China's Environmental Crisis; Eleanor Albert The New York Times; ; Didi Kirsten Tatlow 25 Nevertheless, Beijing 2022 is expected to build up on existing challenges, why a lot of the Beijing 2022 related investments are earmarked for projects with an expected positive effect from a sustainability standpoint. For example in Zhangjiakou several projects on the topic of sustainable urban development have already been initiated in order for the region to be ready to handle the actual games. Examples of such initiatives are: Improved public transport, Increased power transmission capacities, particularly wind energy, Optimized use of power within the city, both efficiency and new sources of consumption avoiding waste, Promotion of industry-induced local economic and social development, Upscale of emerging industries, such as manufacturing, premium food and agriculture, ecotourism and renewables. Hence, sustainable efforts have already been initiated but given the sizable investments mentioned in previous chapter a lot of efforts are still to be expected on the topic of sustainability which, given the Swedish legacy in this field, ought to serve Sweden well. SUSTAINABILITY - SOCIAL PERSPECTIVE Beijing 2022 will not only mean environmental challenges for the region but also social challenges. Just as other recent Olympic Games have caused headlines from an environmental perspective, also socioeconomic headings are apparent in the Olympic context. Listed below are some of the most obvious risks from a social perspective. UNFAIR LABOR RIGHTS Large construction projects often need a greater workforce than what is accessible locally. One solution to this problem is hiring migrant workers, who often come from other remote regions or other countries. These migrant workers are often treated poorly due to deemed lower status and blurred legal belonging. This may result in unpaid overtime and or even unpaid wages. FRAUDULENT SUBCONTRACTORS OR LABOR AGENTS Fraudulent subcontractors are not infrequently involved in above mentioned risk. These subcontractors take advantage of exposed labourers with less influence over their situation such as migrant workers and or children who do not know about their labor rights. CHILD LABOR Multiple value chains and eco systems are often involved in large construction projects. These provide good conditions for indirect use of child labor even though this is not seen at the actual construction sites. One area to be aware of is food supply; how and by whom is the food grown and supplied to the onsite workers. Also consideration of vocabulary is important as use, for instance, of the term intern is often synonymous with exploitation of underage people. DISPATCHED WORKERS Workers who live far from home often come from split-up families and have left behind their children to stay with older relatives and or friends. Especially short term or temporary contracts often stand as reasons for torn families. With the employment of a large number of workers the use of labor agents is common. Many labor agents are using dispatched workers and may also hire juvenile workers without taking into consideration the specific legislation and right to protection that juvenile workers between 16-18 years are entitled to. TRAFFICKING AND PROSTITUTION Big projects often involve the construction of small sub-communities like small villages. These villages tend to contain normal society installations such as shops, bars and clubs. In this context there is unfortunately also the risk of abused women in such situations as trafficking and prostitution. 26 SCARCE LODGING AND LIVING Above mentioned sub-communities are often constructed with insufficient standards and also without including opportunities to bring the rest of the family. Few sites offer community centres with schools or kindergartens; this often means that accompanying children end up with their parents at the actual workshop or construction site.22 CORRUPTION countries. Chinas score is 37, where 0 means very corrupt whereas 100 means free from corruption.23 China has ratified the UN convention against corruption, bu -corruption convention regarding bribes. -corruption campaign during recent years, the country still faces corruption on provincial and local municipal level. The main reason is considered to be lack of transparency in Chinese systems.24 In China there are two sorts of corruption, governmental and commercial corruption. Normally Swedish companies only face the commercial corruption as business with the government is rare among foreign enterprises. Bribes are common in many sectors, but especially widespread in the construction, raw material and textile industries. 25 RISK MITIGATION Many of the above mentioned risks have the same risk mitigation. For Swedish companies interested in contributing to the development of related venues and installations to Beijing 2022 there are actions to be taken in order to prevent the risks but also to stand out from other competing nations and companies. First of all, when working with third party suppliers secure own inspection staff on-site or hire wellreputed inspection companies to make sure that the third parties comply with labor rights and so that they are non-corrupt. Also, when submitting a proposal for e.g. a construction project make sure to include features that will prevent dispatched workers, trafficking, scarce lodging and insufficient focus on sustainability. Rather than just pitching on the direct project, Sweden and Swedish companies should always try to have a bigger picture which will provide comparative advantages when being compared to other alternatives. There are various ways to this depending on size and opportunity. For example, a nd not only the actual venue of construction. Thus, make sure to include such things as a blueprint with good conditions for prevention of institutions where trafficking and prostitution may be facilitated. From a family perspective, Swedish companies should, when possible, try to include social planning facilities such as schools, kindergartens and community centres etc. All facilities should of course be planned in a way that limits the negative impact on the local natural environment as much as possible, such as providing adequate solutions for waste and sewage handling solutions.26 Interview; Malin Liljert, CCR CSR Transparency International; Corruption Perceptions Index 2015; Am Ahad United Nations Human Rights; Principal subjects of concern and recommendations: China National human rights institution 25 Business Anti-Corruption; Chinese Compliance Guide 26 Interview; Malin Liljert, CCR CSR 22 23 24 27 EQUALITY The 2022 Winter Olympics will help promote economic and social development in Zhangjiakou, especially in Chongli. Ideally, the Olympics should offer equal economic and social benefits to women. business opportunities for female entrepreneurs in the venue sites and also create many job opportunities in Zhangjiakou and Ch From a gender equality standpoint, Jialei Lin also stresses how important it is to encourage Sweden and Swedish companies to push for equal labor rights including: no discrimination in the recruitment policies, equal pay for the same job, health benefits and safety standards for both male and female workers, and last but not least, equal access to economic development opportunities for both genders. Swedish companies should also be encouraged to procure from more women-owned businesses and include them in their supply chains. WeConnect, for example, has been successfully linking multinational corporations to Chinese women-owned companies. Gender equality should be mainstreamed in all Olympic venue design and infrastructure development. UN Women also suggest that the Olympic organizer establish a zero tolerance policy against public sexual harassment at all Olympic venues and establish a reporting mechanism in case people feel they are being harassed. Olympic vendor and or infrastructure companies can encourage the organizer to do this. and that the visits to China by Swedish company representatives always include both genders in the delegation.27 27 Interview; Jialei Lin, UN WOMEN 28 CONCLUSIONS AND RECOMMENDATIONS Substantial business opportunities lie ahead for Sweden and Swedish companies both with a direct and indirect link to the Beijing Winter Olympics 2022, i.e. to the actual games and to the aftermath with increased focus on and promotion of outdoor activation. This study has focused on five sectors: construction, energy, transport, telecom and municipal engineering, which all contain multiple business opportunity projects. CROSS SECTOR OBSERVATIONS A common denominator for the analysed projects is, maybe not very surprisingly, the location. All projects are located in, or at the border of, the Hebei province and a majority are also concentrated to Zhangjiakou and or Beijing. Also the timeline looks quite similar with a majority of the projects being designed and or started in 2017 with an estimated runtime until 2020 to 2022, i.e. close to the actual Olympic Games. Size of investment varies due to nature of opportunity but generally this study has found big or extremely big opportunities. This is likely due to the fact that infrastructural upgrades tend to be particularly costly and also arise early on in the overall time plan since these provide the foundation for latter smaller installations and associated procurement projects. Even though the focus on this report is on large scale projects, smaller opportunities are also available for companies with specialized equipment associated for the larger instalments. As an example, Sweden can both bid for design of the whole venue construction through such company as ÅF or Sweco, but also for associated equipment such as snow cannons made by companies such as Sufag AB etc. Also for digital companies such as Sports Republic AB (which will provide Chinese schools with an online ski education) lies opportunities, all that is needed is that Sweden and Swedish companies think outside the box of traditional procurement and look into associated needs. Many associated opportunities are to be found now when the first big procurement projects are out. This is also evident when looking into reports from other markets such as Japan and South Korea, where smaller more specialized opportunities followed big procurement projects. Moreover more consumer retail driven opportunities such as apparel, lifestyle and food followed. Hence a follow-up study on the same sectors as analysed in this report, and possibly more, is suggested to track progress as well as pinpoint more precise business opportunity projects when the overall base is in place. Also, in order to cover less capital intensive business opportunities such as consumer goods or services, further study is required. Subsequently, depending on the interest from Sweden and Swedish companies it is also possible to do an in-depth study on only one of the sectors and thus potentially cover more aspects and factors. The stakeholder analysis shows how the Beijing 2022 Organizing Committee is the most important stakeholder, being the overall responsible body for investments and also the owner of the master plan for all projects associated with the Beijing Winter Olympics 2022. Worth mentioning though is that the Beijing 2022 Organizing Committee only works on a strategic level which makes the operative stakeholders equally important. Hence another important stakeholder is the Zhangjiakou Municipal Government who drives implementation of the decisions taken by the Organizing Committee. Also between the Organizing Committee and the Zhangjiakou Municipal Government is Hebei Province, which has the role of coordination. Given the different roles of the stakeholders it is important to know their different functions when it comes to approach and communication. 29 RISKS AND RISK MITIGATION Along with substantial business opportunities, substantial risks for exploitation of nature and or contextual people arise. However as argued in this report, Business Sweden believes that regarding the risks and including them in proposals can actually turn them into a comparative advantage for Sweden, bearing our sustainable focus and strong CSR agenda in mind. In this study the following risks have been highlighted for consideration in the context of the Beijing Winter Olympics 2022: unfair labor rights, fraudulent subcontractors or labor agents, child labor, dispatched workers, trafficking and prostitution, scarce lodging, environmental abuse and low focus on sustainability. The study has also included suggested mitigating actions to avoid the risks. Including these mitigating actions in coming proposals shows that Sweden considers the bigger picture and is expected to provide Sweden and Swedish companies with an edge and comparative advantage. This will be hard to replicate for nations and companies without the heritage. In all communication and especially when filing for the actual projects, Sweden and Swedish companies are encouraged to include and pinpoint factors related to sustainable solutions and the CSR agenda including the gender perspective. Given the grand wording from the IOC and The Beijing Organising Committee highlighted in the foreword with regards to the stated goals for vision, legacy and sustainability, in addition to the numerous examples of Olympics Games hosts that have failed from a sustainability perspective a consistent focus on sustainability is expected until and after 2022. This focus shall be a vital proposition to Beijing 2022, regardless industry and sector. There are many sound nations and capable foreign companies fighting for the associated business opportunities to Beijing 2022 but few ought to be as recognized for their sustainable legacy as Sweden, which hence shall be one of the most important differentiating factors. PROBLEMATIZATION AND OTHER OBSERVATIONS During the project it has become clear this study is early but still right in terms of timing. Early in the sense that it has been hard to acquire good, direct sources in terms of publications since very little has been published to date. As an example, the master plan of all related venue developments, BeijingZhangjiakou Winter Olympic Games Development Report , was published by the Beijing Reform and Develop Research Association as late as on December 31, 2016. Hence very much is still in the design phase since this official development guide has just been published. It has also been hard to get exact numbers of, for example, investments and the timeline of the projects in interviews with main stakeholders. The reason for this is probably a mix of cultural heritage it is undesirable to say anything that can later result in losing face and the fact that the main stakeholders still work with estimates themselves. Especially for the sectors energy, telecom and municipal engineering it has been hard to find investment estimates for the projects. Hence, in reality the coverage of foremost indirect investments is actually higher than indicated on page 9. For example additional identified energy investment estimates would have had an positive impact on the anti-pollution measures area whereas additional identified telecom and municipal engineering investment estimates would have had further positive impact on the construction area. Moreover the substantial amounts of indirect investments, foremost for anti-pollution measures, are often earmarked for a wider purpose than Beijing 2022 and also for a large geographical area, but with the intention to have impact particularly before but also after Beijing 2022. Altogether, above insights serve as further reasons for additional studies on the same or more sectors and opportunities in the future when more public data is available. 30 On the other hand it became obvious when visiting the Zhangjiakou Municipal Bureau of Commerce and Foreign Affairs Office Zhangjiakou that Sweden is not the first country looking to court the relevant stakeholders. Ms. Wang Yankun, Chief, Foreign Affair Section of Municipal Government Office & Foreign Affair Office Zhangjiakou, explained how they were often approached and visited by two to three nations per week at the moment, all expressing their willingness to support in various preparations. Hence, though it is still early to get all the exact facts, it is very much high time for Sweden and Swedish companies to mobilize and start approaching the main stakeholders in order to take position. MOVING FORWARD Moving forward a joint Team Sweden approach is suggested. Team Sweden, the Embassy of Sweden in Beijing, Business Sweden and the Swedish Chamber of Commerce in China, should form a business platform from which both Swedish and Chinese parties could operate. This platform should serve as a platform for communicational activities and meetings, thus facilitating the often time consuming introduction process from both sides. A common meeting platform could also potentially discover other needs among Chinese counterparties that are still lucrative for Sweden to look into but are too small or complex to be advertised on the big public procurement platforms. The business platform should consist of representatives from all Team Sweden members and is suggested to be responsible for maintenance of the established relations from this study. The business platform should also, among other things, investigate the relevancy of the different fairs and exhibitions covered in this report so that joint roadshows can be initiated in the future under the umbrella of the platform. Further, once the business platform is up and running and has engaged parties from both sides, it is highly recommended to participate in efforts to send a high level delegation to Zhangjiakou in order to stand out, make an 31 COMMUNICATION AND ACTION PLAN Below activities are suggested from a communicative and activation perspective in order to create outreach of this study and to mobilize in order to take position. 1. ROUND TABLE PRESENTATION OF STUDY AT THE EMBASSY OF SWEDEN WHO: Involved parties, invited other relevant parties, Chinese and Swedish media if possible PURPOSE: Presentation of findings and creation of forum for Swedish and Chinese counterparts to meet and network WHEN: Late February or early March depending on interest and availability from Swedish and Chinese parties DESCRIPTION: A presentation of this study is suggested as soon as possible, still securing a good crowd of participants and representation from both Sweden and China. The event should be held at the Swedish Embassy or preferably in Zhangjiakou. Optimally, the study would be presented first then followed by presentations from the Chinese stakeholders expressing their needs and then possible presentations from Swedish companies showcasing respective solutions. Focus should be on spreading the word of the study but also to provide a forum for a first meeting between Chinese and Swedish parties. After presentation a joint mingle and dinner is suggested. 2. INSTALMENT OF JOINT BUSINESS PLATFORM WHO: Team Sweden members; the Embassy of Sweden in Beijing, Business Sweden and the Swedish Chamber of Commerce in China PURPOSE: Agree on the setup of the new business platform in term of plans and processes including responsibilities and budget WHEN: April 2016 DESCRIPTION: The event itself, Beijing Winter Olympics 2022, and the opportunities that come with it are too big and complex to fit under any of the existing Team Sweden dialogues or business platforms. Hence a new business platform is needed with the sole purpose of facilitating all future cooperation between Sweden and China with regards to the Beijing Winter Olympics 2022. Foremost the meeting should focus on settling who is doing what and when and also who is the driving party. Also sector focus should be decided. In terms of activities it is suggested that the business platform should host: biannual general meetings checking on status of the focus sectors, occasional events, meetings and or roadshows per sector. A launch of a business platform website is encouraged where updated information on coming procurement processes are presented in English since not all of the public procurement sites are available in English. 3. HIGH-LEVEL DELEGATION TO BEIJING AND ZHANGJIAKOU WHO: Team Sweden members, preferably a Swedish minister, Swedish companies and relevant Chinese parties Beijing Winter Olympics 2022 WHEN: Next time a suitable minister comes to China, but also after inception of any business dialogues to be followed up thus thematising the delegation DESCRIPTION: After presentation of study and the instalment of the business platform, business dialogues will evolve. When enough productive dialogues are up and running between Sweden and China a delegation is suggested to further facilitate these. However in order to perform a delegation certain prerequisites are suggested to be aligned including an up and running business platform to carry out the practicalities a delegation entails but also that there are concrete business dialogues serving as a theme or themes for the delegation, e.g. transport or infrastructure. 32 ILLUSTRATIVE TIMELINE 2017 1. ROUND TABLE PRESENTATION OF STUDY 2. INSTALMENT OF JOINT BUSINESS PLATFORM 3. HIGH-LEVEL DELEGATION TO BEIJING AND ZHANGJIAKOU VISITING OF FAIRS VASALOPPET CHINA (JAN) ISPO BEIJING (FEB) ALPITEC CHINA (FEB) INTERNATIONAL BUILDING & CONSTRUCTION TRADE FAIR (MAR) CHINA INTERNATIONAL CLEAN ENERGY EXPO (MAR) CHINA TRANSPO (MAY) IE EXPO CHINA (MAY) MWC SHANGHAI (JUNE) WORLD WINTER SPORTS (BEIJING) EXPO (SEPT) 2018 SUGGESTION ADDITIONAL ACTIVITES BUSINESS PLATFORM ORGANIZED ACTIVITIES: STUDIES o FOLLOW UP STUDY ON SAME SECTORS o NEW STUDY ON OTHER SECTORS o IN-DEPTH STUDIES ON CERTAIN SUB-SECTORS MEETINGS AND EVENTS o BIANNUAL GENERAL MEETINGS o OCCASIONAL EVENTS DEPENDING ON SECTOR ACTIVITY o MEETINGS AND OR ROADSHOWS PER SECTOR DELEGATIONS DEPENDING ON SECTOR ACTIVITY 2022 33 APPENDIX MAPPING OF FAIRS 1. ISPO BEIJING 2017 INDUSTRY: Sporting Goods & Recreation, Sport, Outdoor & Leisure WHEN: Mid-February every year WHERE: China National Convention Center (CNCC), Beijing FURTHER INFORMATION: http://beijing.ispo.com/en/index.html DESCRIPTION: As the major sports trade platform in the Asia-Pacific region, ISPO Beijing 2017 will take place on Feb.15-18, 2017 at China National Convention Center (CNCC), Beijing. ISPO Beijing covers key innovations from the fields of outdoor, action sports, and skiing, and displays the latest trends in sports fashion, fabrics, and fibers across an exhibition space of more than 40,000 square meters. Last year, ISPO Beijing 2016 attracted 38,600 visitors - an increase of 29% compared to 2015 (29,948). 490 exhibitors participated in the show, representing some 700 brands (2015: 434). Whether you are a retailer, brand manager, distributor, athlete, or media representative - ISPO Beijing will be the place to be to engage with the entire sports market in Asia. 2. ALPITEC CHINA 2017 INDUSTRY: Sporting Goods & Recreation, Sport, Outdoor & Leisure WHEN: Mid-February every year WHERE: China National Convention Center (CNCC), Beijing FURTHER INFORMATION: http://www.fierabolzano.it/alpitecchina/cn/ DESCRIPTION: Alpitec China 2017 - 9th International Trade Show for Mountain and Winter Technologies is the international trade show for mountain and winter technologies, which will take place on Feb.15-18, 2017 at China National Convention Center (CNCC), Beijing. Concurrently with ISPO BEIJING 2017, 9th International Trade Show for Mountain and Winter Technologies (Alpitec China 2017) will gather the brands in sports, fashion, and lifestyle in Asia. Together, they cover the full spectrum of winter sports equipment and technologies and represent the gateway to the booming Asian winter sports market. 3. 2017 WORLD WINTER SPORTS (BEIJING) EXPO INDUSTRY: Winter Sport & Recreation, Outdoor & Leisure, Tourism & Resort, Machinery & Equipment WHEN: September 07-10, 2017 WHERE: China National Convention Center (CNCC), Beijing FURTHER INFORMATION: http://www.wwse2022.com/en/ DESCRIPTION: Starting in 2016, the World Winter Sports (Beijing) Expo will be held annually in Beijing. The expo will include an exhibition, keynote speeches, summit forums and many related activities. It is expected that the expo will attract more than 400 exhibitors, 9,000 wholesalers, retailers and distributors, 500 media partners and 100,000 attendees from around the world. Global sports companies are able to expand their reach and presence in the fast-growing China market, strengthen relationships with existing Chinese partners, find new partners, develop distribution channels, and boost the development of a wide array of global winter sports activities. 34 4. VASALOPPET CHINA 2017 INDUSTRY: Winter Sport & Recreation, Outdoor & Leisure, Tourism & Resort, Ski Championship WHEN: Early January every year WHERE: Jingyuetan Park, Changchun FURTHER INFORMATION: http://www.vasaloppetchina.com/index.asp?lan=EN&id= DESCRIPTION: In 2003, the Chinese Ski Association, the Organization Committee of Vasaloppet Sweden and Changchun City government cooperated to hold this competition for the first time. From then on, the Vasaloppet, with over 80 years of history in Sweden, came into China and settled in Changchun Jingyuetan. Vasaloppet China has become a large-scaled activity integrating sports, tourism and culture with rich Eastern and Western cultural deposits, widespread attraction and development prospects. During the annual Vasaloppet, there are not only multiple ski events for world top expert skiers, but more than ten tourism, culture, economic and trade exchanges to make Chinese and foreign tourists to promote inter-country exchange and cooperation. 5. INTERNATIONAL BUILDING & CONSTRUCTION TRADE FAIR 2017 INDUSTRY: Building & Construction Material, Furniture, Interior Decoration, Lighting & Accessories, Architectural Design & Plan WHEN: Late March every year WHERE: National Exhibition and Convention Center (NECC), Shanghai FURTHER INFORMATION: http://www.wes-expo.com.cn/wes-expo/General/ExhibitionFee/160000005 DESCRIPTION: International Building & Construction Trade Fair will showcase products like Building & construction material, green building material, chemical building material, building hardware, installation & tools, renovation products, construction glass products & processing technology, wall material, plaster and gypsum, wall paper, heat & noise insulating material, marble, granite, stone slate, artificial stone product, ceramic tile, brick tile, mosaic tile, quarry tile, pavement tile, staircase, component, processing equipment, windows, door, gate, facade, blind, casement section, sun shade, mosquito net and accessories including curtain etc. 6. CHINA INTERNATIONAL CLEAN ENERGY EXPO 2017 INDUSTRY: Renewable Energy, Solar Energy, Wind Power, Smart Grid WHEN: Late March every year WHERE: China International Exhibition Center, Beijing FURTHER INFORMATION: http://www.ceecintl.com/ DESCRIPTION: Clean Energy Expo China (simplified as CEEC) focuses on hot spots and market development trends within the fields of smart grid, wind power, solar photovoltaic, solar thermal utilization, distributed energy, biomass energy, clean energy grid, charging infrastructure, waste heat recovery and utilization of clean energy subdivision. CEEC has established respective sub exhibitions in order to create further trade and investment opportunities for domestic and overseas customers. 7. CHINA TRANSPO 2018 INDUSTRY: Transport Technology & Equipment WHEN: May every second year WHERE: N/A FURTHER INFORMATION: http://www.chinatranspo.com/ DESCRIPTION: CHINA TRANSPO 2018 International Exhibition on Transport Technology & Equipment is organized by the Ministry of Transport, with a focus on innovative, green and safe solutions within the transport sector. The exhibitors are from all aspects of transport, including road construction equipment and materials, traffic detection device, transport engineering, ITS and ETC, and transport equipment and components, etc. 35 8. MWC SHANGHAI 2017 INDUSTRY: ICT, Mobile Technology & Devices WHEN: Late June every year WHERE: Shanghai New International Expo Centre FURTHER INFORMATION: http://www.mwcshanghai.com DESCRIPTION: Mobile World Congress Shanghai (MWC Shanghai) is organised by the GSMA and held each year in the business hub of Shanghai, China. The event gathers the worldwide mobile industry from C-level mobile executives to tech-savvy consumers to experience a connected life full of exciting new technologies and products. 9. IE EXPO CHINA 2017 INDUSTRY: Environmental Solutions, Water Treatment, Waste, Air and Soil Handling WHEN: May every year WHERE: Shanghai New International Expo Centre FURTHER INFORMATION: http://www.ie-expo.cn/ DESCRIPTION: As Asia's leading environmental show, IE expo China 2017 offers an effective business and networking platform for Chinese and international professionals in the environmental sector and is accompanied by a first-class technical-scientific conference program. It is the ideal platform for professionals in the environmental industry to develop business, exchange idea and network. 36 SOURCES INTERVIEWS NAME TITLE DATE Anna Lundin Marketing & Communications Director, Swedish Olympic Committee 2016-12-19 Malin Liljert Director, Center for Child-Rights & Corporate Social Responsibility 2017-01-05 Song Aisheng Deputy Director, Zhangjiakou Municipal Bureau of Commerce 2017-01-11 Yu Aijun Section Chief, Zhangjiakou Municipal Bureau of Commerce 2017-01-11 Wang Yankun Chief, Foreign Affair Section of Municipal Government Office & Foreign Affair Office Zhangjiakou 2017-01-11 Han Lu Vice President, Bank of China Zhangjiakou Branch 2017-01-11 Hou XuHai Director, Bank of China Zhangjiakou Branch 2017-01-11 Zhao Lidong Director, Beijing Winter Olympic Committee Zhangjiakou Office 2017-01-11 Jialei Lin CSR Programme Officer, CSR Programme Officer 2017-01-12 WEBSITES AND ARTICLES SOURCE ARTICLE LINK China Daily Asia 2022 Winter Games venues to start construction 2017 International Olympic Committee Beijing 2022 http://www.chinadailyasia.co m/sports/201612/06/content_15537761.html https://www.olympic.org/beiji ng-2022 Beijing Organising Committee for the 2022 Olympic and Paralympic Winter Games China Org Cn Competition Zones http://www.beijing2022.cn/en / Solid start for Hebei in preparing for 2022 Winter Olympics Renewable Energy World Zhangjiakou, China to Be Named as Renewable Energy Demonstration City Hebei Development and Reform Commission 河北省拟申报国家 2016 年规模化 生物天然气工程试点项目名单公 示 http://www1.china.org.cn/spor ts/201612/17/content_39935971.htm http://www.renewableenergyw orld.com/articles/2015/10/zh angjiakou-china-to-benamed-as-renewable-energydemonstration-city.html http://www.hbdrc.gov.cn/web/ web/njc_gzdt/4028818b5307 e86701532c12e0ea3bfd.htm 37 GDTZB 宣化县农业可再生能源循环利用 示范项目 http://www.gdtzb.com/sxiangmu-2873.html ITDCW 河北沽源 20.3 亿元风电制氢项目 整体并网 年制氢 http://www.itdcw.com/news/g uonei/0913C2K2016.html Zhangjiakou Development and Reform Commission Action Plan to Establish Renewable Energy Demonstration Zone in Zhangjiakou Deepest rail station coming to Badaling http://www.zjkfgw.gov.cn/Proj ect/ShowArticle.asp?ArticleI D=4313 http://www.chinadaily.com.cn /china/201609/29/content_26933094.htm http://www.topnews.top/news12433668.html http://www.chinadaily.com.cn /china/201608/19/content_26539928.htm http://www.ecobusiness.com/news/recycling -project-targets-industrialwaste-around-beijing/ http://www.cfr.org/china/chin as-environmentalcrisis/p12608 https://www.theguardian.com/ environment/2016/sep/03/br eakthrough-us-china-agreeratify-paris-climate-changedeal https://sinosphere.blogs.nyti mes.com/2014/03/05/chinadeclares-war-againstpollution/?_r=1 http://www.transparency.org/c pi2015#results-table China Daily Top News Technology Hebei: The main urban area of the city will cover free WiFi China Daily Beijing to try out 5G in key areas by 2020 Eco Business Recycling project targets industrial waste around Beijing Council on Foreign Relations China's Environmental Crisis The Guardian Breakthrough as US and China agree to ratify Paris climate deal The New York Times Transparency International Corruption Perceptions Index 2015 United Nations Human Rights Principal subjects of concern and recommendations: China National human rights institution Business Anti-Corruption Chinese Compliance Guide http://uhri.ohchr.org/search/r esults?symbol=E/C.12/CHN/C O/2&searchtype=Annotations & http://www.business-anticorruption.com/compliancequick-guides/china PUBLICATIONS Beijing-Zhangjiakou Winter Olympic Games Development Report, Beijing Reform and Develop Research Association 2016; 北京改革和发展研究会 陈剑主编; 中国文史出版社 38
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