China firms support UK fight against COVID-19

Chinese companies played a key role in addressing the COVID-19 crisis in the United Kingdom last year, a new report shows, with businesses delivering vital services and products as the pandemic rocked local communities and economies.

Chinese healthcare companies operating in the UK saw revenues rise by 40 percent and their workforces grow by 14 percent last year, according to Tou Ying Tracker, an annual analysis of China-UK enterprises produced by accountancy company Grant Thornton UK in collaboration with China Daily UK and the China Chamber of Commerce in the UK, or CCCUK.

"This result reflects the impact Chinese medical technology has had on helping the UK manage the clinical effects of the COVID-19 pandemic," the report said.

Among Chinese companies delivering support last year was Mindray, which supplies medical devices including ultrasound imaging and anesthesia products.

Separate analysis reveals the crucial role China-based companies played in bolstering COVID-19 surveillance in the UK.

Between September 2020 and June 2021, more than three-quarters of UK government contracts for rapid antigen tests involved Chinese suppliers or manufacturers, according to UK nonprofit The Citizens.

The number of Chinese businesses in the UK with annual revenue of at least 5 million pounds ($6.8 million) rose to 845 in 2021, up from 838 the year before, the Tou Ying Tracker found. These companies only represent a fraction of those doing business in the UK, and the report identified around 30,000 companies that are part of a China-owned corporate group or are majority held by a Chinese national.

"This is the fourth consecutive year that the number of businesses included in the Tou Ying Tracker has grown, despite economic headwinds including the pandemic and Brexit, showing that the UK continues to be an attractive place to invest and work," said Simon Bevan, head of the China Britain Services Group at Grant Thornton.

The pandemic was not the only impediment to business growth last year.

"Surging energy prices, snarled-up supply chains … inflation and increasing nervousness about the national security implications of foreign direct investment all contributed to a lack of confidence about global economic conditions," the report said.

Despite of these pressures, Chinese import activity and investment into the UK displayed resilience. China replaced Germany as the UK's biggest import market in the first quarter of last year, according to UK government trade data, and China was still in top position when the latest monthly data was released in December.

Bao Ling, minister of China's embassy in the UK, said China and the UK reached an "important consensus" on expanding cooperation in healthcare, green growth, digital economy and innovation during high-level talks in October.

"China and the UK have complementary advantages, and our business communities have a strong desire for closer partnership," Bao said.

Chinese businesses in the UK remain optimistic about the future, said Fang Wenjian, general manager of Bank of China's London branch and chairman of the CCCUK.