After UK poll, China ties to flourish ...

China-Britain relations will continue to flourish under the new Conservative government, business leaders and analysts said.

The Conservative Party won an outright majority in the House of Commons on May 8, and Prime Minister David Cameron has completed a reshuffle of the first Tory cabinet for 18 years.

Chinese Premier Li Keqiang sent a message to Cameron on May 8, congratulating him on his re-election.

"Both China and Britain are countries of great influence," China's foreign ministry spokesperson Hua Chunying said on May 11. "The intensified friendly cooperation between China and Britain serves the fundamental interests of the two countries and two peoples, and contributes to world stability and prosperity.

"The Chinese side is ready to work with the new British government to further deepen exchanges and cooperation in various fields and move steadily forward the China-Britain comprehensive strategic partnership."

British business leaders and observers are optimistic about Sino-British relations in the coming years.

Mark Boleat, policy chairman for the City of London Corp, said: "Over the past five years, the coalition government made China a priority market, and both David Cameron and George Osborne were personally involved in efforts to build up a long-term relationship between Britain and China, including facilitating London's development as a leading center for renminbi business."

Although it is too early to discuss what the new government will focus on, Boleat said, "With continued leadership from Cameron and Osborne, I'm confident China-Britain relations will continue to flourish."

In recent years, the British government has strived to strengthen bilateral relations with China, especially economic ties, and is working hard to attract Chinese investment. Britain was the first member of the G8 to become a founding member of the China-initiated Asia Infrastructure Investment Bank, despite heated opposition from the US. For London, this change of direction has been driven by economic pragmatism, observes said.

"We think the prospects for the Britain-China relationship remain very strong indeed," said Stephen Phillips, chief executive of the China Britain Business Council. "George Osborne has been given the first secretary of state title in addition to chancellor. This indicates that the leading minister in the Britain-China dialogue is now, in effect, also deputy prime minister. That is positive for relations."

The Conservative election manifesto said the Government will "strengthen economic links with China, doubling support for British firms selling goods there and championing an EU-China trade deal", Phillips said.

Britain is China's second-largest trade partner in the European Union and a main source of China's inbound investment.

Last year, trade volume between the two countries reached $80 billion (70.4 billion euros). This figure is expected to reach $100 billion this year despite structural readjustments to the Chinese economy.

Wang Qing, a professor of marketing and innovation at Warwick Business School, said the Tory government has a positive attitude toward China, and bilateral business exchanges have been very active in recent years.

She said the warm relations go beyond the commercial to the cultural. In March, Prince William launched the Great Festival of Creativity in Shanghai. "The new Conservative government will definitely continue its policies toward China," Wang added.

However, analysts said Britain's membership of the EU may cause uncertainty surrounding its foreign policies.

Cameron called in 2013 for a renegotiation of the terms of Britain's EU membership and had promised to organize a referendum by the end of 2017 if the Conservatives won an outright majority in the general election. With that majority now secure, the clock is ticking.

"As Europe's financial capital, London is the gateway to the rest of the continent, including for a significant and growing number of Chinese companies located here in Britain," Boleat said. "The overall business view is clear, that Britain needs to be in the EU.

"The British government is well aware that the country needs to be more engaged in shaping policy in the EU, that's why the prime minister has championed the EU's free trade deal with China."

Phillips added that on Europe "business welcomes the new government's focus on completing the single market and on encouraging the EU's free trade agenda. Business wants to see the government press on with reform in the EU, which will be good for all UK businesses."

zhangchunyan@chinadaily.com.cn

(China Daily European Weekly 05/15/2015 page3)