Ahead of the UK-GBA Conference in Shenzhen on 21 November, CBBC speaks to Michael Lam, Managing Director at BSI APAC, about the unique opportunities the Greater Bay Area presents for British companies like the British Standards Institution, and finds out why China is embracing certification and assessment services
How has BSI (the national standards body of the United Kingdom) grown in China in recent years?
As one of the largest markets for BSI Group (British Standards Institution), China has always been one of our focuses in developing our market relevance. Since entering the China market in 1995, we have introduced a large number of international standards through various services and solutions across a range of industries. We have enabled more than 10,000 organisations in China to improve their performance through the adoption of international standards, through our training services and through our product and system certification solutions. This allows organisations to quickly establish trust with their business partners locally and internationally across a range of areas including quality management, environmental management, occupational health and safety, information security, digital and cyber trust, and sustainability.
What have been the strongest growth areas for BSI in China and why?
Along with their significant growth in importance in both domestic and global markets, Chinese companies are facing greater opportunities and challenges. Many industries are subject to regulatory requirements that mandate the implementation of specific management systems or standards. Organisations seek certification to demonstrate compliance with these regulations and ensure they are meeting legal obligations; in the B2C market, customers are increasingly demanding proof of quality, safety and environmental responsibility from the organisations they engage with. Certification provides a tangible way for businesses to demonstrate their commitment to meeting customer expectations and building trust.
As more and more domestic companies turn their focus internationally, implementing robust management systems helps them to effectively identify and mitigate risks. Certification to internationally recognised standards provides assurance to stakeholders that an organisation has implemented appropriate controls and processes to manage risks. Being part of the global supply chain, most foreign buyers require their suppliers to be certified to specific standards to ensure consistency, quality and compliance throughout the supply chain. Certification can help establish trust quickly with these new partners. Certification can provide a competitive edge by differentiating an organisation from its competitors. It demonstrates a commitment to excellence, quality and continuous improvement, which can attract customers and business partners across different markets.
BSI China has enjoyed a strong reputation as a thought leader in many areas. Our robust auditing capability, high quality training and reputable product certification services have earned trust from organizations across key sectors in the country and by dealing with a reputable certification body like BSI, it enhances an organisation’s reputation and brand image. It signals to stakeholders that the organisation has undergone a rigorous assessment process and meets internationally-recognised standards.
All these factors have contributed to the growth of certification and assessment services in these areas with BSI Group’s expertise and reputation in providing these services supporting this growth.
We have invested heavily in the following areas and as a result, have seen strong growth in the past few years …
Information Security, Cyber Security and Privacy Management: With the increasing importance of data protection, privacy protection and cybersecurity, organisations have been focusing on implementing robust management systems to tackle these challenges. Certification standards like ISO 27001 for Information Security and ISO 27701 for Privacy Management have gained significant traction, leading to a surge in demand for certification services in this domain.
Quality Management: Quality management systems, such as ISO 9001, have long been a cornerstone for organisations seeking to enhance their operational efficiency and customer satisfaction. As businesses strive to improve their processes and demonstrate their commitment to quality, the demand for certification in this area has remained strong.
Environmental Management and Sustainability: Growing concerns about environmental sustainability and corporate ESG have led to increased adoption of sustainability systems. Standards like ISO 14001 for Environmental Management, ISO 14064 for reporting on greenhouse gas emissions and PAS 2060 for carbon neutrality help organisations effectively manage and report on their environmental impact and sustainability commitments. Consequently, the demand for certification services in this domain has also been on the rise.
Occupational Health and Safety: Organisations are increasingly recognising the importance of ensuring a safe and healthy work environment for their employees. Certification standards such as ISO 45001 provide a framework for managing occupational health and safety risks. The demand for certification in this area has grown as companies prioritise employee wellbeing and compliance with relevant regulations.
Medical Devices: The medical device industry has experienced significant growth in recent years, driven by technological advancements, a tightened regulatory environment and an ageing population. Certification to standards like ISO 13485 and CE mark certification for medical devices have become crucial for manufacturers and suppliers in this sector.
Chinese companies already have to meet international standards to export internationally, but are more industries looking to impose higher standards on production for domestic consumption?
Yes, there is a growing trend in China towards imposing higher standards for production of domestic products. This shift is driven by several factors:
Higher domestic consumer demand: A higher percentage of Chinese consumers are middle-class and have an increasing level of education. As a result, many are becoming more conscious of product quality, safety, and environmental impact. They are increasingly demanding products that meet higher standards and are willing to pay a premium for them. This has led to a greater emphasis on quality and safety in domestic production, especially in the automobile, electrical and electronic sectors.
Government Regulations: The Chinese government has been implementing stricter regulations and standards to improve product quality, safety and environmental sustainability. This includes initiatives such as the Made in China 2025 plan, which aims to upgrade the country’s manufacturing capabilities and promote innovation and quality in domestic industries, hence the need to adopt relevant international standards.
Industry Upgrading and Innovation: Chinese industries are undergoing a transformation, moving away from low-cost, low-quality manufacturing and towards higher value-added production. This shift requires adherence to higher standards to meet the demands of more sophisticated markets and to ensure they can compete globally. As a result, Chinese industries are increasingly investing in quality management systems, adopting international standards, and seeking certification to demonstrate compliance with these standards. This trend is expected to continue as China aims to enhance its reputation as a producer of high-quality and safe products.
Have you witnessed a move towards vocational education in China in recent years, and has it impacted your business?
Yes, there is a growing momentum towards vocational training in China. The Chinese government has recognised the importance of vocational education and has implemented various initiatives to promote and expand vocational training programmes to cope with the needs in economic development and technological advancement.
At the same time, an increased number of university graduates every year has led to strong competition in the job market which encourages individuals to acquire more industry knowledge and qualifications to allow them to be differentiated.
Like other key players in the testing, inspection and Ccertification industry, BSI China has witnessed strong growth in training areas over the past years. With the trend of more Chinese companies entering the overseas market, having internationally recognised qualifications remains a strong motivator to boost future training demands.
As the thought leader in the market, BSI offers over 100 qualifications and training solutions to individuals with different needs. BSI offers this training through various delivery models like on-demand, live-stream, classroom training and a hybrid delivery model to fit different learning scenarios.
What other sectors have you noticed a change in?
Apart from what I mentioned previously, some other sectors have experienced notable developments in the adoption of standards and certification.
The automotive industry in China has experienced rapid growth, and certification has become crucial for companies operating in this sector. Certifications such as IATF 16949 for quality management in the automotive industry is widely sought after by automotive manufacturers and suppliers.
With the increasing importance of information security and cybersecurity, the ICT (Information and Communication Technology) sector in China has seen a rise in the demand for certifications related to information security management systems (ISO 27001) and other cybersecurity and privacy frameworks. Companies are seeking certification to demonstrate their ability to protect sensitive information and mitigate their cybersecurity and privacy risks.
Food safety and quality have been major concerns in China, leading to a significant increase in the demand for certifications in the food and agriculture sector. Certifications such as ISO 22000 for food safety management systems and certifications for organic farming and sustainable agriculture practices are increasingly being implemented by food producers, processors and brands.
China has been making significant investments in renewable energy and sustainability initiatives. Certifications related to renewable energy, such as ISO 50001 for energy management systems, and certifications for sustainable practices, such as ISO 14064 PAS 2060, have continued to gain prominence in this sector.
Artificial Intelligence (AI) is definitely the hottest topic of 2023, with many sectors realising the importance, opportunity and challenges related with its adoption. BSI has launched AI related solutions around ISO 24029, ISO 42001 to cope with the rising demand.
Finally, for the leading companies across sectors, health and wellbeing is also growing in importance. BSI launched the Prioritising People model in 2021, which provides guidance for organisations to develop health, safety and wellbeing programs for their employees. In 2023, BSI launched its“Second Glass Ceiling” campaign to focus on middle-aged female employees and based on the ISO 25550 standard. Being a purpose-driven organisation, our solutions are aligned in enabling organisations to develop a more inclusive working environment committed to employee wellbeing.
Has the ‘Green Transition’ affected your work in China, and if so, in what ways?
After pledging a goal of Carbon-peak in 2030 and Carbon-neutrality by 2026, the Chinese government has been actively pursuing a green transition to address environmental challenges and promote sustainable development. This transition has had significant impacts on various industries that lead to a rising demand in sustainability related certification and training.
China has become a global leader in renewable energy, particularly in solar and wind power, and continues to invest heavily in green technology and innovation. This has led to the emergence of new industries with new demands. These are new industries that BSI can support, and will also drive us to innovate our solutions to support these emerging industries and markets.
The challenge to us, however, is on how to develop resources quickly enough to cope with the demands of the transition.
Are local or central governments supporting a push for higher standards and certifications, and in what ways?
The China National Certification and Accreditation Administration (CNCA) and the China National Accreditation Service for Conformity Assessment (CNAS) play important roles in pushing for higher standards in the certification industry in China.
CNCA is responsible for the overall administration of certification and accreditation activities in China. It formulates policies, regulations and standards related to certification and accreditation, and oversees the implementation of these standards. CNCA aims to ensure the credibility and reliability of certification and accreditation services in China.
CNAS, on the other hand, is the national accreditation body in China. It is responsible for accrediting conformity assessment bodies, such as testing laboratories, inspection bodies and certification bodies. CNAS assesses these bodies against internationally recognised standards to ensure their competence and impartiality. Accreditation by CNAS demonstrates that a conformity assessment body meets the required standards and can provide reliable and trustworthy services.
We do see joint efforts of CNCA and CNAS working closely together to promote higher standards in the certification industry. CNCA requires certification bodies to register their auditing activities to ensure traceability, and CNAS conducts very professional assessments and audits of conformity assessment bodies to evaluate their compliance with the relevant standards. This helps to ensure that these bodies are operating at a high level of quality and integrity. Random sampling and checks on audits conducted by certification bodies plays an important role to ensure the honesty and integrity of certification bodies.
What makes the Greater Bay Area unique in China and appealing to BSI?
The GBA is a unique region that is known for its economic significance, innovation, and integration of different industries.
The GBA is one of the most economically vibrant regions in China. It has a high concentration of industries, including manufacturing, technology, finance, and logistics. The region’s economic strength and development potential make it an attractive market for businesses and for BSI.
It is a major centre for innovation and technology in China. It is home to numerous high-tech companies, research institutions, and startups. The region’s focus on innovation and technology creates opportunities for BSI to provide services related to quality management systems, compliance and risk management certifications, training, personal qualification, and supply chain assessments.
Register now for the UK-GBA Conference in Shenzhen on Tuesday, 21 November
CBBC’s UK-GBA Conference, coinciding with the visit of CBBC’s Chair, Sir Sherard Cowper-Coles, and Chief Executive, Andrew Seaton, will provide a platform for senior-level representatives from our Members, partners, and other key stakeholders to discuss the latest developments and strategies for British companies in the GBA region. Also joining us will be representatives from the British Government, Shenzhen and other GBA local Governments, as well as representatives from British and Chinese companies in Guangdong, Hong Kong, Macau, and from other parts of China.
