Britain welcomes Chinese acquisitions, says official

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By Lu Haoting (chinadaily.com.cn)
Updated: 2009-03-12 16:19

The British Government will welcome Chinese companies that plan to invest in the United Kingdom through acquisitions, a senior government official said in Beijing on Wednesday.

"We have always been open to foreign investment by acquisitions. In this financial difficulty, some British companies will welcome foreign investment to strengthen their capital base," said Alastair Morgan, the UK's director of trade and investment in China.

Morgan made the remarks when commenting on a second Chinese business delegation that left for four European countries last weekend for investment and acquisition opportunities in sectors like automobiles, machinery, textile, food, electronics and technologies related to energy saving and environmental protection.

The delegation, close on the heels of a Chinese trade team that signed $13 billion purchasing deals in late February, is also visiting destinations like Germany, Switzerland, Spain and Britain.

"But Chinese companies need to be careful. If they do not have much exposure to overseas marketing management, it may not be easy to run the large overseas businesses they acquire," Morgan told China Daily.

The UK Trade & Investment (UKTI) on Wednesday launched the UK Advanced Engineering Global Marketing Strategy in Beijing. The program aims to boost Sino-UK commercial collaboration in the area of advanced engineering and highlight the UK's research and development strength. The program, which will run for five years, was simultaneously launched in Beijing, London and Birmingham.

The UKTI will carry out a series of activities in 2009 and 2010 to increase constructive dialogue between Chinese and UK businesses on advanced engineering issues.

Advanced engineering encompasses sectors including aerospace, automotive and advanced materials.

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