In its manifesto, the Labour Party made a commitment to “improve the UK’s capability to understand and respond to the challenges and opportunities China poses through an audit of our bilateral relationship.” As part of that audit, CBBC has made a submission to the UK Government with its views on the business landscape and opportunities for its members in China, based in part on a number of round tables with members and on a survey of members which was completed in October/November 2024.
The British Government has put boosting growth at the top of its agenda. Trade and investment are key drivers of economic growth and employment, and at a time when the UK’s trade deficit is nearing record levels, maximising UK exports to the world’s second-largest economy is more important than ever.
As well as protecting our national security, we need to maintain the UK’s economic and trade relationships with China and other major economies, and the tens of thousands of British jobs and businesses that depend on those links. National security should also include a recognition of the importance of economic security.
It is in our national interest – especially as we look to grow the economy – for British firms to grow their
exports to China, subject, of course, to sensible national security safeguards. In 2023, UK exports to China
were worth £31.3 billion, placing us behind the US, Japan, Australia, and Germany, who each export at least
twice as much.
The UK is already Europe’s largest single recipient of Chinese FDI, but according to the latest available figures, this still constitutes just 1.1% of all overseas investment into the country. So, there is tremendous scope for growth. Clearly, as with trade, so with investment, we must not compromise national security, and there is a need for open and consistent guidelines, but further Chinese investment is a key opportunity for growing the UK economy.
In this context, click here to read CBBC’s submission to HMG’s audit of the China relationship
