UK needs to develop China capabilities, says business leader

The United Kingdom needs to strengthen its "China capabilities" to increase awareness of China today, John McLean, chairman of the China UK Business Development Centre, has said.

The comments followed McLean's September trip to China with 12 fintech industry business leaders representing around 130 UK companies. Over six days, the delegation, led by McLean, toured Beijing, Wuhan in Central China's Hubei province, and Nanjing in East China's Jiangsu province, where they also had targeted business-to-business meetings with relevant companies.

McLean said the majority were "extremely impressed" by China's advancements in infrastructure and technological innovation, the friendliness of the locals, and the vast market full of opportunities, among other things.

"For most, this was their first time in China or their first visit in years. The majority came back with a strong sense that we should be doing business together. We converted people to be ambassadors for China," he said.

"What they expected from virtually reading our media, and what they saw and experienced in China were like chalk and cheese," he added. "To be honest, I had spoken to them all beforehand and gone through what they could expect. But it was still a surprise.

"There is not enough awareness in the UK of what China is like today. Even for me, who goes there regularly, it is always changing, and you have to go there to be up to date."

Besides helping entrepreneurs explore opportunities in fintech, McLean also found out that vocational education could be another potential area of cooperation as China is pursuing high-quality development, with one focus on advanced technology, and has a significant demand for talent in modern manufacturing.

"Shared experiences will be very important in any form of cooperation," he said.

Before British Foreign Secretary David Lammy's trip to China in October, McLean said that "China is going to come back on the agenda just because it is a significant market and the opportunities are there", especially as the new Labour Party government has identified kickstarting economic activity as its first mission.

Lammy began his two-day trip to China on Oct 18, the first visit to China by a member of the new cabinet.

The UK Foreign, Commonwealth and Development Office said in a press release that during his meeting with Chinese Foreign Minister Wang Yi, Lammy "reiterated his commitment to promoting secure and resilient growth through increased trade and investment," which could "provide economic stability and certainty" for the UK economy.

Both sides also agreed that China and the UK could support one another's growth targets.

Geopolitical uncertainty has somewhat impacted China-UK trade volume, McLean said.

"China represents 5 percent of our total trade, but if you look at the trading between China and the UK in the four quarters to the end of the first quarter of 2024, it has gone down about 20 billion pounds ($26 billion) on a year-on-year basis," McLean said. "That is a significant sum. When you look at it in terms of what (the UK government) want to do with other countries, they might need to make far more in five or six years to get up to 20 billion increase."

According to the UK's Office for National Statistics, total trade in goods and services between China and the UK in the four quarters ending in the first quarter of 2024 was 86.5 billion pounds, a decrease of 23.1 billion pounds compared to the same period the previous year.

"Also, although trading with France, Germany, the Netherlands, Ireland is going well, for a company, why bother doing a small business which you were quite happy to do before? It's all under one umbrella," he added.

"The government recognizes that growth is an important factor…so, you've got to work. You've got to use your talents and expertise in the areas to get you a quick return," he pointed out.

Since the Labour Party won the general election in July, high-level interactions between the two sides have been improved in various fields, including economy and finance.

Noting the recent positive developments in bilateral relations, McLean welcomed the "changes in tone" and called for real consistency in the UK's approach to China, to further boost confidence among British business communities looking to engage with China.

"Because business is planned," he said.