Bilateral trade poised for growth

By Hu Haiyan | China Daily | Updated: 2015-10-20 08:43

Trade between China and the United Kingdom has registered rapid growth in recent years, and there will be more in the future, said Stephen Phillips, chief executive of the China-Britain Business Council and chairman of the EU-China Business Association.

Bilateral trade in goods and services stood at 55.7 billion ($86 billion) in 2014, an increase of about 6 percent year-on-year, according to the Office of National Statistics, Phillips said.

"We expect the trend to continue. The UK is uniquely placed as a catalyst for the new normal. It is our products, services, education and healthcare, advanced manufacturing and innovation that can meet China's needs as it moves to a consumption-driven economy," Phillips said. "Deals of all shapes and sizes are being done by UK and Chinese partners in both our countries and in third markets."

At the China-Britain Business Council, China's Belt and Road Initiative is considered "one of the most significant business initiatives of this generation. The opportunities for both UK and Chinese companies are through partnership. We believe that UK companies and UK competencies make them the perfect partner for China," Phillips said.

"Our report highlights 13 provinces in China along the routes that offer the most direct opportunities. Beyond that, opportunities also lie in countries where UK companies already have a strong local presence - such as in Southeast Asia, India, Sri Lanka, the Middle East and East Africa. Also through different sectors where many UK companies are global market leaders - banking, financial and professional services, shipping and maritime services, infrastructure and advanced construction projects, global logistics and business outsourcing services, energy and mining, advanced engineering and transport projects.

"The UK was the first Western country to join the Asian Infrastructure Investment Bank, and I'm sure that over the coming years we will be a key supporter and partner of many Belt and Road projects both in China and in third countries," Phillips said.

As with any business decision there are risks and challenges, he also noted.

"The Belt and Road is not only an economic initiative, but also a major geopolitical one. For UK companies that want to succeed, the key principle is to plan sufficiently by identifying the appropriate region, sector, project and Chinese partner. Careful planning and due diligence are strongly recommended," he said.

Phillips joined the China-Britain Business Council as chief executive in 2006 and at the same time became chairman of the European Union China Business Association. He has been actively engaged in business in and with China since 1989 and his experience spans a number of sectors, including aerospace, oil, gas and petrochemicals, infrastructure, information and communications technology and financial services.

Western China has been one of the most promising areas for development over the last 10 years and has great potential in the coming decade, Phillips said.

"The CBBC recognized this potential a long time ago - and we opened our office in Chengdu almost 20 years ago. During a recent research project conducted by the Economist Intelligence Unit, eight cities in western China were ranked in the top 20 emerging cities in China in 2015, including Chongqing and Chengdu, where the CBBC has offices. Recognizing that trend, last year the CBBC published a report 'Wuhan - Centre of the Middle Kingdom', introducing opportunities in the city and surrounding cluster, to coincide with the opening of the new British Consulate-General," he said.

He also said that in recent years, it has become a common practice for Chinese businesses to seek development overseas.

"The UK's attractions include a strong, vibrant but stable economy, world class research and innovation capabilities, along with sector strengths that match China's needs," Phillips said. "The UK has an open door to Chinese investment and views China as a long term partner for projects in the UK and elsewhere around the world, including in infrastructure, energy, property development, consumer sectors and engineering. Greenfield investments which can bring Chinese technology and skills into the UK are also welcome."

huhaiyan@chinadaily.com.cn