Small UK businesses look for China lifeline

Small and medium-sized companies in the United Kingdom are increasingly looking to China for growth amid uncertainties over the UK's decision to leave the European Union, according to a new survey.

Some 36 percent of small and medium-sized enterprises say the Brexit debate has made the prospect of trading with Hong Kong and the Chinese mainland more attractive.

The survey also found that, of the 1,000 small companies questioned, 45 percent said they see Hong Kong as a gateway into the Chinese mainland and other Asian countries.

The biggest opportunities that UK businesses recognize for launching into the Chinese mainland are its huge consumer base (42 percent), followed by its growing middle class (35 percent) and ability to be early adopters of technology (27 percent).

Perceived difficulties include the language barrier (57 percent), as well as the judicial and regulatory challenges (both 41 percent).

The data suggest opportunities for trade growth, especially when just 16 percent currently do business in Hong Kong or the Chinese mainland. A further 26 percent of respondents said they are considering it.

The survey was commissioned by the Hong Kong Trade Development Council ahead of a conference - "Think Asia, Think Hong Kong" - it was hosting in London on Sept 21 to foster closer business links between the Chinese special administrative region and the UK.

William Chui, the council's regional director for Europe, says Brexit provides a good opportunity for Hong Kong to attract more British businesses, which are now increasingly looking beyond Europe for growth.

"It's great to see that UK SMEs are identifying the benefits of launching into Hong Kong as part of their global growth strategy at this time of European uncertainty," Chui says. "They are valuing Hong Kong as a hugely well-positioned launchpad for businesses wanting to crack the lucrative but challenging Chinese mainland market."

The UK is Hong Kong's second-largest trading partner in Europe, with investments worth ￡25 billion ($34 billion; 28.36 billion euros) as of the end of 2015, a 115-percent increase over five years.

cecily.liu@chinadailyuk.com

(China Daily European Weekly 09/22/2017 page25)