Shanghai promotes investment opportunities to UK

A campaign promoting investment in Shanghai to businesses in the United Kingdom was held in London on Tuesday.

Around 300 representatives from groups across the Chinese and British political and business communities attended, with Johnson Matthey, a UK sustainable technologies company, and the China-Britain Business Council, or CBBC, securing cooperation agreements with the event organizer, the Shanghai Municipal Government.

China's Ambassador to the UK Zheng Zeguang said in his opening speech that Shanghai has always taken the lead at the front of China's reform and opening-up, with one of the best policy support, development foundation, and talent pools.

He also highlighted that China is introducing more practical and effective measures to further open to the world.

"We have actively fulfilled our commitment to the World Trade Organization. China's overall tariff level has been reduced to 7.3 percent, and we have shortened a negative list for market access to just 27 items. In the case of the manufacturing sector, we have already reduced the items to zero," said Zheng.

"In the first five months of 2023, more than 18,000 foreign investment enterprises were established in China, a year-on-year increase of over 38 percent. This is a vote of confidence by foreign businesses in China's economic prospects."

The ambassador said that he hoped the UK business sector can seize the opportunities brought by Shanghai and will not be misled by talk about de-coupling or de-risking.

"China does not create risks or threats. China represents opportunities for growth, and opportunities to further tackle difficulties in our respective economies. The trade with China can help the UK achieve its goals, including halving inflation, reducing the debt burden, improving people's livelihood, and realizing green transition."

Last year, the total value of import and export trade between Shanghai and the UK reached $24.21 billion, according to the Vice-Mayor of Shanghai Xie Dong, and by the end of 2022, the UK's cumulative investment in Shanghai had been over $3.8 billion, while Shanghai enterprises had invested more than $4.7 billion in the UK.

"Shanghai is a window for exchanges between China and the UK, a gateway for British companies to enter the Chinese market, and a bridgehead for Chinese enterprise venturing into the British market," said Xie.

The vice-mayor said Shanghai will continue to transform into a more digitalized and greener city, with the priorities of growth focusing on integrated circuit, biomedicine, artificial intelligence, automobile, healthcare, etc.

Neil Brigden, director of foreign direct investment at London & Partners, the Mayor of London's official promotional company which aims at promoting London internationally, said Shanghai and London have broad cooperation prospects as the two cities share a common vision in economic growth, innovation, cultural exchanges, and more.

James Sassoon, president of the CBBC, said it is a particular pleasure to hear from Shanghai, the largest city in China, which is increasing its welcome to businesses across many areas in diverse ways, especially when the world is in a continued time of economic challenges.

Fang Wenjian, chairman of the China Chamber of Commerce in the UK and general manager of Bank of China's London branch, said Shanghai and London share many common interests, especially in the areas of green finance, technological innovation, RMB internalization, and more.

Fang said he hoped the business communities of both China and the UK can carry on the spirit of ice-breaking to forge a brilliant future together.

Andrew Seaton, chief executive of the CBBC, told China Daily that the British firms are still very committed to being in Shanghai, although the COVID-19 pandemic has suspended face-to-face contacts.

"Despite the lack of business travel, it's interesting that the trade between Britain and China last year has broken a new record, exceeding 110 billion pounds ($136 billion). The British companies, which have already been established in Shanghai, are very committed to being there, they are engaged there, and they're investing more there.

"What we have not seen so much over the past three years is the new companies coming through. So, I think the event today, to make the China opportunities more specific and more real, is very important to some of those new companies who are perhaps looking at starting their China journey," said Seaton.