Old powerhouses draw on each other's strengths

China's northeast and Britain's northeast share a common destiny, UK ambassador says

This year is shaping up as a golden one for China-UK relations, says Barbara Woodward, the British ambassador to China, who took office in February.

"I think the relationship has developed very strongly in the past few years, particularly in 2014, when bilateral trade climbed to $80 billion (74 billion euros), and I think we will reach $100 billion this year."

Barbara Woodward says British companies wanting to invest in China should do their research carefully. Liu Ce / China Daily

Woodward recently visited 10 cities in China in as many weeks and led a UK delegation of about 30 companies to the China Green Companies Summit, a business forum organized by China Entrepreneur Club, in Shenyang, Liaoning province, last month. The delegation included representatives of companies in the fields of consumer goods, financial services, healthcare, Internet security and leisure. One of those was Liverpool Football Club.

Earlier, Woodward had gone to Guangdong province, in South China, to scout for opportunities. The province accounts for about 20 percent of trade between the two countries, and South China accounts for about one-third of it.

Woodward says of her travels: "My expectations were that this would be a great opportunity for our companies to make good contacts with Chinese companies, the China Entrepreneur Club, and the Chinese government, and in particular to look at the possibilities for economic growth and development in the northeast region."

Woodward says new economic targets suggest the Chinese government is very much in control of growth. She sees the need for China to put growth on a sustainable, long-term footing, rather than having the economy overheat, with the dangers that poses. The changes now taking place in the economy give her no cause for concern, she says.

China is now Britain's sixth biggest export market, and the UK receives more Chinese investment than any major EU country.

Woodward joined the Foreign and Commonwealth Office in 1994 and has held posts in China, Russia, and the European Union.

Some parts of the Chinese economy are particularly vibrant, she says, including financial services and creative areas, and these could work hand in hand to further China's vision.

"I think China's economy is moving in the right direction. I think for British companies wanting to invest in China, the important thing is to do your research carefully. You need to know which part of China geographically (you are interested in), which market sector you are interested in, which sector of the economy, and then target your business plan accordingly."

Britain is looking forward to China's next Five-Year Plan (2016-2020) so it can adapt its strategy and get the best for British businesses, she says. There will be important new areas in which the UK wants to work, like financial services and services generally, sustainable development and smart cities.

"I think there will be a lot of opportunities for exchanges of young people, in sports (including) football, education. We already have more than 10 educational cooperation links just with Northeast China."

Another area of interests is smart cities and developing sustainable cities in China, she says, with the country's urbanization having reached 50 percent. That will head to closer to 70 percent, and she sees smart cities as an important area in which Britain and China can work together.

There is a lot of high-end technology that is also important, such as solar power, where British research and development can be put to use in China, helping clean up the environment. At the same time that is good for business because the cost of such technology is falling, she says.

"We have a good example of collaboration between a British company and a Chinese company working on making more effective batteries for electric cars. There are a lot of good examples of scientists and businessmen working together to make things that will help the economy become more sustainable."

The three provinces of Northeast China, Heilongjiang, Jilin and Liaoning, had nearly the lowest GDP growth in the country last year, and Premier Li Keqiang was in the region last month setting out the economic agenda. Woodward is optimistic about the region and the collaboration it can enjoy with Britain.

When she first came to China in 1986, she says, the northeast was the heavy-industry powerhouse of the country. Reform and opening-up that started in the late 1970s began to have a big impact on the region's economy, and it went through hard times, she says. The economy was greatly restructured in the 1990s, which she thinks was obviously painful for many people at the time, but which has put the economy on a sound footing and allowed it to move into advanced manufacturing, more innovative and creative development and more services.

"And if that is what we see in the northeast I think there will be great potential for British business to continue to go there and do well."

The Northern Ireland Office has developed a partnership with the region over a number of years. There are strong similarities in their economies, in which heavy engineering used to predominate, and Northern Ireland, like Northeast China, has restructured to become much more involved in manufacturing and services. Both have been able to draw on one another's experiences, she says.

On the British mainland, cities in the Midlands and in the north such as Birmingham, Liverpool and Manchester that were flagships of the Industrial Revolution are now being reinvigorated as economic powerhouses.

"I think that interesting model may be able to be discussed further with Northeast China."

Woodward says Britain aims to have the most open economy in the world, and has opened up considerably to attract investment from China.

"We have a very low rate of corporation tax, and a very strong legal system, and increasingly we are bringing together lists of projects where we want to attract investment, and I think Chinese investors respond very actively to that.

"We are very open to China's investment in all sectors: leisure, property, high-end banking, high-speed rail as well."

Woodward, who spent two years teaching English when she first came to China, sees UK-China ties as having three strands: government to government, business to business, and people to people, the latter including educational exchanges and tourism.

Britain and China have agreed to set 2015 as the Year of Cultural Exchange, and cultural activities are being organized in both countries to raise awareness of each other's cultures.

China has replaced India as the country with the largest number of British visa applications annually. Last year, the UK issued more than 400,000 visas to Chinese nationals, she says.

Woodward says Britain has already offered long-term visit visas for either business trips or tourism, and that as long as applicants keep sound records of previous visits to Britain they will have the option to apply for multi-entry visas valid for one year, two years or five years and even up to 10 years.

As British's first female ambassador to China, she says she would also like to take time to learn more about what role women play in Chinese society.

"I think it is important in any of our cultures that women have an opportunity to play a role in society and the economy without any barriers because of the fact that they are women."

Woodward is an aficionado of the Chinese artist Qi Baishi (1864-1957) and is also keen on classical Chinese poetry and contemporary writing.

She encourages young people in Britain to learn Mandarin as an entree to its culture and as a life skill that will prove invaluable later, she says.

Contact the writers through chenyingqun@chinadaily.com.cn

(China Daily European Weekly 05/01/2015 page22)