The document reports on progress towards targets in Scotland's China Strategy. For Priority Area 1, it notes that the number of Scottish companies supported to access Chinese markets increased 125% from 2010 to 2014, but direct exports to China have increased only 13% from 2010 to 2013 due to variability in data sources. The number of major Chinese investors in Scotland has reached 12. For Priority Area 2, the number of Chinese students studying in Scotland has increased 5% but Scotland's share of total UK students has decreased slightly. The number of Mandarin teachers in Scottish schools has increased slightly but remains below the target. Recognized qualifications in Chinese language awarded decreased slightly. Data is still being gathered for other priority areas and targets.

1. Update on China Strategy Targets
Priority Area 1
Target 1.1: Double the number of Scottish companies (based on 2010 levels)
supported to access Chinese markets by 2017.
2010/11 companies supported: 117
2013/14 companies supported: 264
Increase: 125%
Target 1.2: Increase direct exports to China above the Scottish Government’s
export target of 50% by 2017 and to exceed this for China based on 2010
export levels.
 There are two main data sources for exports to China, both use different
methodologies and due to the relative small size of Chinese exports (circa 2% of
total international exports) both suffer from variability year to year so should be
treated with caution.
 The Global Connections Survey estimates total exports. This shows total exports
increasing from £350m in 2010 to £560m in 2012, an increase of 60%. (source:
Global Connections Survey 2012)
 The HMRC data details exports in tradeable goods (excludes services). This
shows exports increasing from £360m in 2010 to £409m in 2013. An increase of
13% (this includes a significant dip between 2012 and 2013) (source: HMRC
Regional Trade Statistics, 2013)
Target 1.3: Double the number of major Chinese investors with a presence in
Scotland by 2017 based on 2012 levels (4 direct inward investors).
 Official Statistics show the number of Chinese registered businesses in Scotland
for both 2012 and 2013 as 5 (note: for statistical reasons the figures are rounded
to the nearest 5, so this could be between 3 and 7) (source: Businesses in
Scotland, SG/ONS, 2013)
 In total, Scotland has twelve Chinese inward investors through a mix of direct
investment, mergers and acquisitions, R&D partnering and joint venture
business models: Lenovo, Todd & Duncan, Cochran Ltd, Bank of China,
Ganten, PetroChina, Sinopec, CNOOC, Xinhua News Agency, iRock
Technologies, Shandong Ruyi Technological Group Ltd and Huawei.

2. Priority Area 2
Target 2.1: Increase the number of Chinese and Hong Kong Special
Administrative Region students studying in Scotland from the current 8.5%
share (2010/11) to a 10% share of the total UK Chinese and Hong Kong Special
Administrative Region student population.
 In 2012-13 there were 8,410 students from China (including Hong Kong, and
Macau) studying at Higher Education Institutions in Scotland. This is a 5 per
cent increase from 2011-12 and compares to a figure of 5,000 in 2006-07.
Scotland’s share of the total UK Chinese and Hong Kong Special Administrative
Region student population has decreased slightly from 8.9 per cent in 2011/12 to
8.7 per cent in 2012/13. (Source: Higher Education Statistics Agency and
Scottish Funding Council)
Target 2.2: Double the number of teachers of Mandarin working in local
authority schools in Scotland, based on 2011/12 levels.
 In 2013 there were 14 GTCS (General Teaching Council for Scotland) registered
Mandarin teachers working in Scottish LA schools. There were also 7 Mandarin
teachers working in Scottish independent schools. In 2011/12 there were 12
GTCS registered teachers working in Scottish LA schools. (Source: GTCS data).
 In 2014/15 13 out of the 17 Local Authorities with a Confucius Classroom have
applied for a partially funded Mandarin teacher through Hanban. Three Local
Authorities have recruited newly GTCS registered teachers for the start of
session 2014/15.
Target 2.3: Double the number of school students attaining recognised
qualifications in Chinese language, based on 2011/12 levels
 2013/14 SQA results, for all centres stood at 282. Further breakdown of these
numbers will be available later in the current school term. In 2011/12 SQA
results, for all centres stood at 309. (Source: SQA).
Priority Area 3
Target 3.1: Increase the percentage of internationally co-authored papers
between Scottish and Chinese researchers from the 4.75% baseline of 2008.
 The commissioning of this report has been put on hold and SG analysts are
current investigating alternative ways to gather this data.

3. Priority Area 4
Target 4.1: Increase Scotland’s share of the value of Chinese visitors to
Scotland, as a proportion of the UK spend to 6% (increased from 3.5% on
Scotland’s share of Chinese spend between 2009 and 2011).
 The most recent statistics (2011-2013) show spend in Scotland as a percentage
of the UK’s at 5.5%.
 Chinese visitors brought £56m into the Scottish economy in 2011-13, an increase
in £26m from the previous period 2010-2012; whilst the number of visits
increased from 53,000 to 77,000 over the same timeframe
(Source: Office for National Statistics’ International Passenger Survey, yearly
data is not utilised due to the small sample sizes).
Target 4.2: Monitor progress of the objectives within the Cultural
Memorandum of Understanding (MoU) with China and ensure that all 4 key
elements within the MoU are actively delivered.
Since the signing of the MOU in 2011, there has been a significant increase in new
cultural collaboration, deepening of existing relationships and increased exchanges
between both nations. Including:
 National Performing Companies (NPC) are developing or increasing their links
and activity in China, for example in 2014 Scottish Ballet and the Scottish
Chamber Orchestra performed in Hong Kong at the same time for Hong Kong Art
Festival in February 2014 and the National Theatre of Scotland toured
‘Dunsinane.’ In April. All received support from the Scottish Government’s
International Touring Fund.
 Scottish Dance Theatre touring a number of cities in October 2014 including
Beijing, Shanghai, Wuxi and Suzhou. They are holding site specific workshops
and educational residencies as part of the tour.
 We have seen high quality Chinese exhibitions in Scotland this year with The
Confucius Institute ‘Lanterns of the Terracotta Warriors’ exhibition in the Old
Quad in Edinburgh University in February 2014 to celebrate Chinese New Year;
and their curated ‘Poster Art of Modern China 1913-1997’ exhibition in June for
6 weeks; and the outstanding Ming Exhibition at the National Museum of
Scotland also launching in June.
 An information and training event is scheduled to take place on 10 September at
Creative Scotland with the cultural sector who have, or planned to have, cultural
exchange with China.
 The Connections through Culture funding, managed by British Council China,
recently provided funding for 5 successful Scottish applications.
China and Americas Team
September 2014