British Trade Minister Urges Businesses to "Wake
Up To China"
On a visit to Beijing, British secretary of state for
trade and industry Patricia Hewitt, criticized a huge
part of British businesses for being largely ignorant
of China's economic transformation. In the interview,
Hewitt said that Britain was in danger of missing a historic
opportunity because the "China bandwagon is moving
very fast and it is time to jump on it."
Britain is planning several initiatives to deepen the
relationship. Chinese premier Wen Jiabao is planning to
visit Britain in May in a trip largely devoted to bilateral
trade and two-way investment.
In February, Clara Furse, the head of the London Stock
Exchange, will sign agreements with the Shanghai and Shenzhen
stock exchanges to deepen cooperation. Because of China's
troubled financial sector problems, most Chinese companies
have avoided listing in Shanghai and Shenzhen, choosing
instead to list in New York and Hong Kong. London has
attracted virtually no listings from China, and the LSE
plans to market its services to Chinese companies looking
to raise money in international capital markets.
Other working groups have focused on securing participation
for British companies in different industrial sectors.
Hewitt said that the natural gas working group has assisted
British companies in securing contracts in China's 4,200
kilometer west-east pipeline project.
Hewitt also said that she plans to attract Chinese companies
planning to invest in manufacturing capacity overseas,
particularly in Europe. She said that there are now more
than 250 Chinese companies with investments in the UK,
five times the number of three years ago. More than 50,000
Chinese students had studied in Britain, making the UK
a popular destination for overseas study.
The US has traditionally been the most popular destination
for graduate study, but there has been some fall-off following
the terrorist atttacks of 2001. The US Department of Homeland
Security has added strict security and background checks,
which have added considerable time to the visa application
process. The end result is that many Chinese students
have decided to study in Canada, the UK and Australia
instead.
In particular, Hewitt was critical that many Chinese
companies had an incorrect image of Britain, thinking
that "Britain is a country with wonderful castles,
but not wonderful scientists."
"When it comes to investing in Europe, no country
gives better access than Britain," said Hewitt.
Before you go, did you like this article?
If so, you can receive a free email newsletter version
each weekday. Sign up using the China Business Express
form on this page.
