Ahead of CBBC’s UK Investment Conference on 24 September, Darryn Lewis, Head of Inward Investment, Welsh Government, tells Tom Pattinson what makes the Welsh economy so attractive to investment from China and beyond, and how investment from Chinese companies is changing
Are there any sectors that Wales is specifically targeting from China?
Every incoming business is vital to us. And we do everything we can to help, be it large companies setting up advanced manufacturing or assembly plants, medtech companies looking to partner with leading Welsh research institutes or renewable companies looking to invest and get access to the local supply chain opportunities. As a small country, Chinese incoming companies will have more direct access to opinion formers and decision-makers within the Welsh Government. Wales has particular strengths in compound semiconductors, advanced manufacturing, medtech, renewable energy and cyber security, and we look for opportunities to promote our strengths and attract investment from global investors in each of these sectors when we can.
What kind of Welsh businesses has China traditionally invested in?
The manufacturing sector in Wales is traditionally a major employer, with key sectors such as aerospace and automotive. We have a wealth of enthusiastic, skilled workers and graduates from our Welsh universities that incoming Chinese investors can easily access. Over the years, we welcomed Chinese investors and helped them to set up advanced manufacturing and assembly plants in Wales to better serve the UK and European markets, and beyond.
Chinese companies coming to Wales are also taking advantage of the research capabilities of Welsh universities and centres of excellence to advance their technologies and improve their overall capability. This is not surprising. South Wales has been identified as one of the fastest-growing technology clusters in the UK in an official report published by Tech Nation.
Wales offers prospective businesses a low-risk, competitively priced entry option into the UK/European market, allowing investors to explore opportunities within the Wales ecosystem without having to incur heavy costs.
How has investment from China changed over the last decade?
Chinese companies are sophisticated and business savvy. They make more rational decisions as they know what they would like to achieve by investing overseas.
Supply chain opportunities seem to be an increasingly important factor for companies considering investment destinations. Chinese companies are moving up the value chain and, in many cases, possess core technologies that are world-leading. Smaller companies tend to follow large corporates within the industry to develop a complete supply chain close to their overseas customers.
In the meantime, companies take a more holistic approach when making investment decisions. In addition to business opportunities, they will consider the business environment and political stability when choosing investment destinations. As a devolved nation, Wales has responsibility for economic development and has many years of experience dealing with the nearly 1,400 foreign-owned companies that have chosen to set up operations in Wales. Of this figure, 35 are headquartered in mainland China and Hong Kong.
How much does cultural influence and the image of Wales attract Chinese investors?
Wales might be less known by Chinese investors. However, anyone who has ever visited Wales is impressed by its unique culture, epic landscape and how much Wales can offer. And, if you ask employees in Wales to describe their ideal day, I would hazard a guess that it won’t involve long commutes, air pollution and overcrowding.
In Wales, you can spend more time enjoying our beautiful natural environment and still be close to major towns and cities, with Cardiff being less than two hours from London
Moreover, our sports and cultural facilities stand in comparison with anything in Europe. This includes the showpiece Principality Stadium, which has hosted major sports games including the FA Cup and the Rugby World Cup. Just as important as lively cities and beautiful landscapes, Wales has a warm and welcoming people. A welcome that helps people settle into a new way of life quickly and easily.
Are there any good examples of Chinese companies launching (or investing in) Wales in recent years?
In recent years, we have been pleased to welcome Chinese companies who have invested in Wales. HKC, one of China’s big four panel makers and top three display manufacturers, set up its UK assembly factory in Wales in 2022. This investment created 20 jobs in the first year and will ultimately rise to 200. In the same year, the Chinese pharmaceutical company ABclonal, which specialises in solutions for therapeutic antibody development, also set up its European sales and R&D hub in Wales.
CBBC UK Investment Conference & Investment Guide Launch, 24 September 2024
The UK Investment Conference 2024 will be an opportune moment to reflect on investment successes to date, focus on future opportunities, and demystify challenges and complexities.
We will invite 150-200 attendees, with the majority of seats reserved for representatives from Chinese companies. Our conference speakers will also primarily be from the UK’s world-leading financial and professional service sector and Chinese companies with existing investments in the UK or those with strong intentions to invest. We will also hold a pre-event VIP reception the evening before on 23 September.
UK Investment Guide
The UK Investment Guide will be launched at the UK Investment Conference before heading on a multi-city roadshow around China together with our sponsors, which will run into 2025. The guide will be published in Chinese and will address the pertinent themes impacting Chinese investors, drawing on the expertise of CBBC’s members.
Click here to register (please note: registrations close 10 September)
