INVESTMENT FROM CHINA
China is the seventh-largest investor in the UK, which is now home to more than 400 mainland Chinese companies. Key investors include Shanghai Automotive (SAIC), Geely, China Mobile, Huawei, ZTE, China Construction Bank and China Merchants Bank. Some 80 per cent of Hong Kong’s investments in Europe are in the UK, with in excess of 220 companies present in the market, including Cheung Kong Holdings, a leading multinational property development and strategic investment conglomerate. One of the most high-profi le Chinese investors in the UK is the Chinese car manufacturer SAIC which bought the MG Rover plant in Longbridge four years ago.
Earlier this year, the fi rst MG for 16 years rolled off the production line as part of the Anglo-Chinese collaboration. All of the testing and engineering for the 1.8 litre MG6 was carried out at MG Birmingham, although some of its production has taken place in China.
OPPORTUNITIES VERSUS RISKS
China is one of the 90 countries covered by a new service launched by UK Trade & Investment. Called Overseas Business Risk, it is particularly aimed at giving UK SMEs the information they might otherwise miss out on to help them do business abroad safely and successfully. Run in collaboration with the Foreign & Commonwealth Offi ce, information is accessible at
www.ukti.gov.uk. Thematic market profi les are available for 90 markets and cover aspects like the risk of cyber crime, corruption, bribery and intellectual property theft. Minister for Trade and Investment,
Lord Green, said: “The potential rewards for working overseas are huge. But in many markets it is important that companies go with their eyes wide open. My message to companies is, do not be put off by the challenges of working abroad. This service will provide the information to help ensure UK companies can identify and pursue new opportunities whilst managing the potential pitfalls.”
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www.ukti.gov.uk
HIGH-VALUE OPPORTUNITIES For UK Trade & Investment, the types of high-value opportunities targeted by BDP are a key element of its new strategy. In China specifi cally, energy (civil nuclear, wind and smart grids), healthcare (hospital build, skills development and training), sustainable urban development and transport (infrastructure, airports and urban rail) are sectors offering major opportunities that correspond with UK expertise.
“Identifying high-value opportunities and leveraging ‘commercial diplomacy’ to get good access and positioning for UK business is an important part of the new strategy,” says Jeremy Gordon, a UK Trade & Investment business specialist. “One of the biggest projects currently taking place in China is the Two Rivers (Liangjiang) New Area in Chongqing. It is being positioned as ‘the new Pudong’ and is only the third state- level development zone in China.” Some $100bn will be spent on the
area’s development over the next 10 years. The zone, on the upper reaches of the Yangtze River, will cover 1,200 square kilometres and have a population of 893,000. It is envisaged as a model for future urban development and will support high-end manufacturing and modern service industries. A major
fi nancial centre is planned, offering potential links to the City of London, as well as specifi c districts for automotive, aerospace, new energy and information technology – all areas in which the UK can offer expertise.
The ancient city of Chongqing was a departure point for merchants along the Silk Road. It is now a modern transport hub, with the convergence of highways, rail, a river port and international airport. “Several UK companies are already developing projects in Liangjiang, and UK Trade & Investment is helping more to identify opportunities and engage with local stakeholders,” says Gordon. “There is huge interest in the plans for sustainable urban development, and key projects such as the airport expansion.” Opportunities are not restricted to Chongqing and mainland China. Close historical ties have meant that Hong Kong has always provided the UK with a business-friendly platform. In addition, Hong Kong has its own selection of mega projects like the West Kowloon Cultural District, the Kai Tak Development and Lok Ma Chau Loop. These were profi led at a London conference on 13 September, organised by the Hong Kong Trade Development Council (
hktdc.com) to provide support, advice and contacts for companies exploring the region.
ROOM FOR GROWTH: 35 cities to watch, according to the CBBC SUZHOU * WUXI * TIANJIN * HANGZHOU * DONGYING * NINGBO * NANJING * QINGDAO * JINAN * WEIHAI * HARBIN * ZHENGZHOU * SHIJIAZHUANG * BAOTOU * ORDOS
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