China and Britain’s Economic Ties Discussed at China Business Events in London

UK China Trade Convention takes place at the prestigious Congress Centre in London. The China business events in London bring together some of China’s and UK’s innovative service providers, high profile delegates, and business leaders who want to engage and discuss trade opportunities. Both delegates and exhibitors have the opportunity to network with top decision-makers to create new business.

Over the last two decades, the economic relationship between China and the UK has prospered. China was the UK’s 26th largest export market in 1999, and now its rank is 6th place. However, tensions rise between Beijing and London due to the UK government’s U-turn on using Huawei telecoms 5G equipment. This partnership can benefit both nations that are currently under threat. According to the Office for National Statistics (ONS), in 2019, China was the UK’s sixth-largest export market worth of £30.7 billion.

On the other hand, China was the UK’s fourth most significant source of imports worth £49 billion. During the event, a Professor of Economics states that trade between the two nations should not halt due to increased Beijing –London tensions. The rising bitterness between China and the UK will not substantially affect the leading components of their business. However, the significant effect will be on the UK's role as a hub for Chinese firms as well as UK higher education.

The members also shed some light on the admission of Chinese students at UK colleges and universities where Chinese students have skyrocketed since 2006. But, UK universities will be struggling financially if China plans on imposing a ban on its students coming to London. A representative from a Beijing-based market intelligence company shares that as Chinese students comprise the largest body of international students, the financial impact can be massive. So, universities must look for new methods for generating revenue or have to adjust their costs. A member of the British Council believes that long-term planning for studying abroad will not be affected due to present political relations, as the UK has been one of the major hubs for Chinese students.

At the China business events in London, it was discussed that money is flowing into the UK from Chinese firms and different government-backed entities, and there are few large UK companies doing business in China – a country with rapidly increasing disposable incomes. In 2019, China’s ambassador to Germany threatened for its carmakers if Huawei had been blocked from Germany’s 5G network, then Beijing can use such tactics against other nations' interests. However, a panel member discusses that such a harsh step can be avoided. He believes that British based automotive manufacturers who manufacture locally and import vehicles into China will not be a target by the UK government’s decision. It is also discussed that British IT organizations and telecoms can be at risk. However, despite the challenging political scenario, both countries can sustain robust investment and trade in the coming months and may find a solution to overcome the political crisis.