Inward investment opportunities between the UK and China were the focus of the second panel of the day at the UK-China Business Forum 2025 on 5 March
Chaired by Huang Shan, Director and Senior Fellow at Caixin Insight, the discussion featured insights from Joe Li, Head of China Desk at HSBC; Yang Ming, CEO of Westwell Holdings; Natasha Luther-Jones, Global Head of Energy and Global Resources Sector at DLA Piper; and John Dykes, Sales Director for Ming Yang Smart Energy. The panel explored how the UK can attract Chinese investment, the role of policy and infrastructure, and the synergies between the two economies in sectors like green energy and advanced manufacturing.
Huang Shan opened the discussion by referencing UK Prime Minister Keir Starmer’s commitment to cutting bureaucracy and creating a stable investment environment. “Starmer has emphasised the need to rip up red tape and ensure stability to attract investment,” she said. This sentiment was echoed by Joe Li, who noted the improving ties between the UK and Chinese governments. “It’s good to see the adults back in the room. The relationship is now being handled in a sensible and pragmatic way,” Li remarked. He highlighted HSBC’s unique position as a British bank with deep roots in China, symbolised by its name, which includes two Chinese cities. “We are at the core of this conversation, and we’ve already seen a significant increase in enquiries from Chinese investors,” he added.
Li also shared HSBC’s efforts to bridge the gap between UK SMEs and Chinese markets. “Last year, we took 20 SMEs on a week-long trip to China, and this year we plan to take 40 clients on a two-week trip. The interest is growing rapidly,” he said. However, he acknowledged the challenges posed by the UK’s regulatory environment, particularly in sectors like green energy. “When you have 4,000 documents required for planning permission, it’s hard for Chinese investors to understand. Grid reform is another major obstacle, with 700 megawatts of power projects pending due to outdated assessment processes,” Li explained. He welcomed recent efforts to prioritise “ready-to-go” projects, calling it a positive cultural shift.
Yang Ming, CEO of AI company Westwell Holdings, made his first public appearance in the UK at the forum, expressing optimism about the UK market. “The UK is a great market, with its ports, supply chains and growing demand for smarter, greener solutions,” he said. Westwell’s AI-powered autonomous trucks have been operational at Felixstowe, the UK’s largest port, for two years, improving efficiency and reducing carbon emissions. “Our focus is not just on what we do but on driving industrial change. The UK’s world-leading educational institutions and innovation hubs, like our partnership with a centre in Hong Kong, are key to this,” Yang added.
Natasha Luther-Jones provided a legal perspective on inward investment, particularly in the energy sector. She highlighted the National Security and Investment Act as a key concern for Chinese investors. “Energy is one of 17 sectors affected by the act, so each case needs to be assessed individually,” she said. Luther-Jones advised companies to make voluntary notifications to avoid delays, noting that only five out of 150 cases had been called in for review, with none being blocked outright. She also emphasised the importance of planning consents, local workforce considerations, and the potential for change-of-control issues. “Grid reform, expected in the first half of this year, will be a game-changer. It will prioritise projects that are ready to go, addressing the backlog of ‘zombie projects’ that have grid connections but lack land rights or funding,” she explained.
Luther-Jones also touched on the geopolitical dynamics shaping the energy sector. “European OEMs are struggling to meet demand, and Chinese manufacturers like Ming Yang are stepping in. For example, a German fund recently chose Chinese turbines over European ones because they were the only ones meeting the required specifications,” she said. She predicted that the UK and Europe would increasingly rely on Chinese manufacturers to meet net-zero targets, particularly in wind and battery storage. “The difficulty with net zero will be in heat, not power. We’ve seen this shift with solar, and now we’ll see it with wind and storage,” she added.
John Dykes, representing Ming Yang Smart Energy (MYSE), outlined the company’s strategy for aligning with the UK’s growth goals. “We focus on technology adaptation, innovation, and market integration,” he said. MYSE’s European R&D centre collaborates with top institutions to develop next-generation turbines and smart grid technologies. “Our aim is to meet UK and EU standards while contributing to net-zero goals,” Dykes explained. He highlighted the booming global demand for clean energy as a tailwind for MYSE, driven by sectors such as data centres and electric vehicles. “Policy incentives and technological innovation are key growth drivers. For example, our twin-rotor turbines maximise efficiency, and we’re now selling them globally, with plans to expand further west,” he said.
However, Dykes also acknowledged the headwinds facing the industry. “Inflation in raw materials like aluminium, copper, and resin has created significant challenges. Contracts signed years ago at outdated prices can lead to heavy losses,” he said. Regulatory compliance and the need to build trust with local suppliers were additional hurdles. “For a Chinese OEM, engaging local suppliers is crucial. It’s not just about investment; it’s about creating relationships and upskilling the workforce,” Dykes added.
The panel concluded with a consensus on the immense potential for UK-China collaboration, particularly in green energy and advanced manufacturing. Huang Shan summarised the discussion by emphasising the importance of stability, policy clarity, and cultural understanding. “The UK offers a wealth of opportunities, but to fully capitalise on them, we need to address regulatory barriers and build trust. Chinese investors are looking for long-term partnerships, and the UK has the expertise and infrastructure to make these partnerships successful,” she said.
As the forum demonstrated, the UK and China are at a pivotal moment in their economic relationship. With the right policies, infrastructure, and collaboration, the two nations can unlock significant mutual benefits, driving innovation and sustainability in an increasingly interconnected world.
