China’s evolving role in the global economy was the subject of the first panel of the UK-China Business Forum on 5 March 2025, which brought together some of the brightest minds in business, academia, and policy
Hosted by Gordon Orr, Non-Executive Director of Swire Pacific, Meituan, Lenovo, Fidelity China Special Situations Investment Trust, and EQT AB, the panel featured insights from Fang Wenjian, Chairman of the China Chamber of Commerce in the UK and General Manager of Bank of China London Branch; Becky Liu, Managing Director and Head of China Macro Strategy at Standard Chartered Bank (Hong Kong) Ltd; Trey McArver, Co-Founder of Trivium/China; and Dr Carwyn Morris, University Lecturer of Digital China at Leiden University. The discussion explored China’s economic strategies, its impact on global trade, and the opportunities for collaboration between the UK and China.
Gordon Orr opened the discussion on China’s evolving role in the global economy by highlighting China’s growing influence across multiple sectors, from the fast fashion of brands such as Shein and Temu, to electric vehicles (EVs) and renewable energy. He noted that the UK and China together represent 80% of the global wind farm market, underscoring the importance of their collaboration in the green energy transition. Orr also emphasised the role of services, such as education, tourism and financial services, in strengthening bilateral ties. “China is not just expanding its services domestically but also globally, even into space,” he said, referencing a recent US$5 billion contract with the UAE to support lunar exploration.
China’s investments in digital infrastructure and green technologies were also a focal point. Orr cited examples such as BYD’s EV factories, Lenovo’s new production facilities in Saudi Arabia, and Meituan’s expansion into Saudi Arabia as its first market outside China. He also touched on the democratisation of artificial intelligence (AI), with initiatives like DeepSeek making AI more accessible and affordable. “The licensing of new drugs from companies like AstraZeneca, worth billions, and the fact that 38% of leading AI researchers in the US graduated from Chinese universities, further highlight China’s growing influence in innovation and talent development,” Orr said.
The conversation then turned to the impact of US tariffs on China’s global trade. Becky Liu shared her observations from a recent trip to the US, where she noted that tariffs remain a significant factor in trade discussions. “Trump’s tariffs were initially framed as a way to bring manufacturing back to the US, but the reality is more complex,” she explained. Liu argued that tariffs are less about economic protectionism and more about fiscal sustainability. “Tariffs are essentially a disguised form of taxation. While they may appear to target trading partners, the cost is ultimately borne by domestic consumers,” she said. Despite the trade war, China’s exports have grown significantly, with a 60% increase during the conflict and a 2.3-fold rise since. Liu also pointed out that China’s export markets have diversified, with the US, EU, and Korea now accounting for only one-third of exports, down from two-thirds seven years ago.
Liu also highlighted the role of Hong Kong as a financial hub, despite recent challenges. “Hong Kong remains the world’s leading market for IPOs, even though activity has declined by 95% in recent years,” she said. She expressed concern over US efforts to weaken Hong Kong’s status as an independent tariff zone under World Trade Organisation (WTO) rules, which could have broader implications for its role as a connector between China and global markets. However, she remained optimistic about Hong Kong’s future, noting its strong currency and potential to play a larger role in financing and financial services.
Trey McArver echoed the sentiment of optimism, emphasising China’s proactive approach to globalisation. “The Chinese government is clearly pro-globalisation, which is evident in its policies to promote investment and exports,” he said. McArver pointed to initiatives like the upgrading of China-ASEAN trade relations and the expansion of Chinese companies into global markets, such as BYD in Germany and Red Rock in the UK. “These companies are not just following government directives; they are driven by profit and supported by a domestic policy environment that has nurtured world-leading industries like EVs and batteries over the past two decades,” he explained. McArver also highlighted China’s focus on cutting-edge sectors like AI and quantum computing, as well as its efforts to upgrade traditional manufacturing industries.
Fang Wenjian, representing the China Chamber of Commerce in the UK, shared a similarly positive outlook. He noted that the top 900 Chinese firms contribute £100 billion in revenue and support 60,000 jobs in the UK. “Our members are increasingly interested in collaborating not just between the UK and China but also in third markets,” he said. Fang attributed this growing optimism to the UK government’s engagement approach with China, particularly in sectors like AI, clean tech, and advanced manufacturing. “To attract more investment, the UK needs to provide Chinese companies with a sense of long-term security and stability in the relationship,” he advised.
Dr Carwyn Morris brought a unique perspective to the discussion, focusing on the cultural and social dimensions of business. As a small business owner manufacturing in the UK and selling to Chinese boutiques, Morris emphasised the importance of creating a diverse and cosmopolitan environment to attract and retain talent. “People don’t just want to work; they want to live in a place with good schools, restaurants, and cultural opportunities,” he said. He cited Dusseldorf as an example of a city that has successfully supported Chinese businesses and diaspora communities, creating a vibrant pan-Asian cultural hub. “We are seeing the rise of new Chinatowns that feel more like Shanghai than traditional tourist areas,” he observed.
Morris also highlighted the challenges faced by Chinese students and entrepreneurs in the UK. “The UK’s education sector remains attractive, but frequent policy changes create uncertainty,” he said. He called for longer-term post-study visas to encourage students to stay and start businesses in the UK. “These students are not risks; they are the ones driving collaborative businesses and creating jobs. Without long-term support, we risk losing this valuable talent pool,” he warned.
The panel concluded with a consensus on the importance of stability, collaboration, and cultural exchange in fostering stronger UK-China ties. As Gordon Orr summarised, “China’s evolving role in the global economy means the UK has a unique opportunity to engage with this transformation. Whether it’s through trade, investment or cultural exchange, the potential for mutual benefit is immense.” The insights from the UK-China Business Forum 2025 underscored the need for both countries to navigate challenges and seize opportunities in an increasingly interconnected world.
