China, UK have reasons to boost trade ties

The China-Britain Business Council can trace its roots back to 1954 when a group of 48 business representatives went to China on a journey to start a dialogue and to open markets. Led by the indomitable Jack Perry, this was the first trade mission from the United Kingdom to the newly founded People's Republic of China. The group became known as the icebreakers for their determination to cut through the frozen political landscape of the time and to build business opportunities and foster relationships.

Today's China-Britain Business Council has inherited the same "can-do spirit". We manage operations in the United Kingdom and in China with our staff on the ground in cities across the length and breadth of both countries. We put our members at the very heart of everything we do and we set our priorities according to their needs.

As a business association, the China-Britain Business Council's purpose is to support commerce and investment between our two countries. We want our members to enhance their financial returns and to grow their operations. I believe that business is a force for good. Healthy companies provide secure employment for staff, pay taxes to the Government, pay dividends into pension funds for retirees, support community welfare and contribute to the well-being of their stakeholders, including SMEs in their supply chains. In addition, they build better cross-border understanding through dialogue and visits.

My personal journey to China started in 1995 when I went to Hong Kong on a three-month employment secondment. I stayed until July 2024. My life has therefore been shaped by the economic growth and business opportunities of China, including, of course, the special role of the Hong Kong Special Administrative Region.

When I landed in Hong Kong's Kai Tak Airport all those years ago, China's GDP was about $730 billion. The UK's was nearly double that. Today, China is the second-largest economy in the world, with 16.7 percent share of global GDP, and the UK is the fifth-largest, with 3.4 percent share of global GDP.

China's economic journey from 1995 to 2024, throughout my stay in Hong Kong, has been nothing short of extraordinary and, in my view, unprecedented in history.

China's growth forecast for 2025 may not be quite as stratospheric as in those early days when I arrived in Hong Kong, but the scale and diversity of business remain hugely attractive. Today, I see a vast market with a large middle-income group and immense opportunities for investment and exports for all CBBC members whose products, brands and capabilities are much sought after in China.

The high-quality and efficiently manufactured products of China should also find a natural export home in the United Kingdom.

The capital generation of the Chinese economy means the UK would be a natural beneficiary of Chinese investment, and the British markets would welcome capital to support new industries, jobs and economic well-being.

The UK should also recognize the extraordinary pace of development in technology in China. DeepSeek's AI capabilities, its chatbot in particular, demonstrate China's private sector is developing advanced technologies much more efficiently and at much lower costs.

UK-China trade now amounts to some ￡114 billion ($147.63 billion). Chinese enterprises have created 68,000 jobs and China's export market supports another 400,000 jobs, in the UK. In the context of China's huge population these numbers may not appear significant but for the United Kingdom they make a difference. Moreover, these are the jobs that can be directly traced to Chinese trade. There are many more, part of complex supply chains, that are also indirectly supported by the Chinese export market.

But we can do better. The UK's goods exports to China rank behind countries such as Germany, France, Australia and Canada. From branded luxury products, to household essentials, to pharmaceuticals, to machinery and equipment, to chemicals, to food products, to cars and so on, the UK has expertise that resonates among customers in China. UK companies can focus on extending their capabilities to gain a larger share in China's domestic market.

British services exports fare better than goods. British banks, insurance companies, pension funds, law firms, consultants, accountants, hotel operators and cultural and creative industries are, in many cases, market leaders among foreign companies operating in China.

Dialogue has already begun. In January, the British Chancellor of the Exchequer, Rachel Reeves, co-hosted the "Economic and Financial Dialogue" with Chinese Vice-Premier He Lifeng in Beijing, the first such dialogue to be held since 2019. The outcome statement from that EFD included sixty-nine paragraphs and many new initiatives for the two sides to work on together.

The China Development Forum gathers in Beijing this Sunday and Monday and many of our members are represented by their CEOs. The United Kingdom's commercial commitment to China is evidenced by the strength in numbers and a clear intention to do more business, both domestically and cross border.

At the core of the CDF is the determination to foster dialogue between businesses and between business and government. We are never sure what may emerge as outcomes from the CDF but we do know people will meet, share a coffee or tea together, perhaps conclude a deal or two, and create some lasting friendships. This is important and a reminder of the original 48 icebreakers who made the long-distance journey from the UK to China in 1954 for precisely the same reasons.

The views don't necessarily reflect those of China Daily.

The author is the chief executive officer of the China-Britain Business Council.