Well-matched trade gives future cooperation strong prospects
Economic ties set to expand between the two global powers in wake of PM’s visit
China and the United Kingdom will continue to diversify economic cooperation and develop stronger trade ties in the long term, because of complementary products and services, especially in nuclear energy, manufacturing, pharmaceuticals and finance.
“Despite both the Chinese and British economies having been hit by dropping global demand for goods and services, the degree of interdependence between the two remains stable in bilateral cross-industry trade,” said Gao Feng, a spokesperson for the Ministry of Commerce.
Gao said the Chinese and UK governments are pushing for the establishment of a joint committee formed by entrepreneurs from the two sides to further all types of commercial activities, as well as accelerate the pace of cooperation in finance, cultivation of new businesses, new energy and telecommunications. He made the comments in the lead up to UK Prime Minister Theresa May’s visit to China from Jan 31 to Feb 2.
Bilateral trade volumes between China and the UK grew by 6.2 percent year-onyear to $79.03 billion in 2017, data from the General Administration of Customs show.
China exports mainly mechanical and electrical products, furniture, toys and textiles, daily necessities, household appliances and raw materials to the UK. In addition to transportation equipment and electromechanical products, the UK’s exports to China include minerals, water treatment systems, chemicals and pharmaceuticals, fashion and food products.
“China will continue to export consumer goods in exchange for the UK’s hightech products such as electronics, parts and medical equipment,” said Feng Yaoxiang, a spokesperson for the Beijing-based China Council for the Promotion of International Trade.
“Most of their imports are complementary. Therefore, it isn’t direct competition,” Feng added.
Wang Huiyao, president of the Beijing-based Center for China and Globalization, an independent think tank, said: “China, the world’s secondlargest economy, is important for the UK’s interests. London now has more space and willingness to woo investment from China to balance the consequences of its departure from the EU.”
Xu Hong, a partner at global law firm Linklaters LLP, said Brexit means that China now perceives the UK differently as an investment destination separate from the European single market.
“We expect May’s visit will present the UK with an opportunity to shape relations through partnerships with China. These could lead to links between both countries’ financial exchanges, and in investment management and other services, including the deployment of the strategic global management, supply chain, premium products and marketing capabilities of key British companies, to investments and joint ventures in China,” Xu said.
British companies including oil manufacturer BP and supermarket operator Tesco invested $1.5 billion in China last year, while China in the meantime invested $1.53 billion in the UK’s non-financial sectors, data from the Ministry of Commerce show.