Initiative is seen as grand path for learning

After Xi's visit to Britain, focus falls on how to exploit China's Belt and Road Initiative

British companies should quickly learn to understand the significance of China's Belt and Road Initiative and look for ways in which they can play a role in the plan, experts say.

A report published by the China-Britain Business Council at the China Outbound Conference in Beijing on Nov 3 explains the initiative and sets out some of the opportunities in Chinese provinces and regions for countries involved. For example, the initiative says Hainan province will encourage more foreign investors to high-quality medical institutions, especially nursing homes, in the next few years.

Giles Blackburne, executive director of the council, who has been helping Chinese and British companies to enter each other's markets, says the report aims to give British companies information on how to find business opportunities that are part of the initiative in China and in other countries. A series of seminars will be held in cities in China and Britain on the Belt and Road Initiative.

"It is important that UK companies find their positions in this initiative and move forward, so as to win the business opportunities in the next few years or even decades," Blackburne says.

Wang Yanzhi, executive director of the Silk Road Fund Co, says that British investment in China grew 87.6 percent last year compared with 2013, the fastest growth of all European Union countries.

"The UK has great strength in the financial sector, engineering, energy-saving and environmental protection, and creative industries, and China has a huge market and manufacturing abilities. Both sides have great scope for collaboration in the Belt and Road Initiative."

The Silk Road Fund, established in Beijing last December, will focus on looking for investment opportunities in the initiative, he says.

Wang He, vice-chairman of the China International Contractors Association, says Britain and China could also seek to work with other countries that are part of the initiative.

"The Belt and Road Initiative has connected the Asian and European economic regions and brought opportunities for both Chinese and foreign companies, especially the chance to invest in infrastructure."

British standards lead the world, and British companies are good at managing big programs and have a lot of financing experience, she says.

Over the past few decades Chinese companies have worked hard and got better at accumulating capital, building things and gaining market share in emerging economies, so both sides can work well together in third-party countries, she says.

While exploring opportunities that the Belt and Road Initiative will deliver, British companies also welcome Chinese capital to their country.

More than 100 investment projects in Britain were revealed on Nov 3 to about 200 Chinese companies and entrepreneurs at the China Outbound Conference in Beijing.

The projects are in 13 sectors and were introduced by eight delegations from more than 20 cities and regions in Britain. More than half are in infrastructure and others are in education, fashion, financial services, food and drink, healthcare, manufacturing, media and creative industries, property and retail.

The China-UK relationship is going exceptionally well, particularly since President Xi Jinping visited Britain last month, during which deals worth more that 40 billion pounds ($60.6 billion; 56.3 billion euros) were signed.

One of the most important areas of collaboration is infrastructure. A report by Pinsent Masons, an international law firm in London, says there is a huge deficit in the British infrastructure sector.

By 2020, the country's demand in infrastructure building will be worth about 500 billion pounds, it says. But it also estimates that between 2014 and 2025, 105 billion pounds of Chinese capital will flow into British infrastructure investment, including 43.5 billion pounds into the energy infrastructure sector, 25.5 billion pounds into transport and other infrastructure, and 36 billion pounds into the real estate sector.

chenyingqun@chinadaily.com.cn

(China Daily European Weekly 11/13/2015 page23)