UK and China: A Partnership For Growth
My driving purpose as Prime Minister is to secure our economic recovery and build a Britain that is stronger, more prosperous and full of opportunity for our children. That means unleashing the power of the private sector, helping businesses to grow and creating jobs. And it means linking Britain up to the fastest growing markets so that we can successfully compete in the global race.
That is why I see leading British trade delegations as a vital part of my job. I am delighted to be taking so many brilliant British businesses to China this week. A delegation showcasing UK excellence in a range of sectors from advanced engineering to healthcare to infrastructure to creativity and more. And for the first time ever, large companies are outnumbered in this delegation by small and medium businesses – the lifeblood of our economy.
I am convinced that this is the right group going to the right place at the right time. China’s transformation is one of the defining facts of our lifetime. In 2009 China eclipsed Germany as the world’s largest exporter; in 2010, she overtook Japan to become the world’s second largest economy; last year, she pushed past the US to become the world’s largest trading nation; and next year she is set to become the world’s largest importer of goods. And we arrive in China at the beginning of a new ten year phase in our relationship, just weeks after President Xi Jinping set out an ambitious package of reforms that will shape China’s economic and societal development for the next decade.
As the trade delegation travels to China at this pivotal time, I believe we should take three key messages above all.
First, the UK wants to see China succeed. We view China’s opening and development not as a threat, but as a historic opportunity. Our economy is already benefiting from China’s growth. Our exports rose by almost 20 per cent in the first half of this year and Chinese investment into Britain has almost doubled in one year. This partnership for growth is already very significant. But there is still enormous untapped potential for British businesses in China and I want to use this visit to shift our relationship up a gear.
Second, Britain is the most open country in the Western world to Chinese investment. We want to make Britain the best place in Europe to start, finance or grow a business. We are cutting corporation tax to 20 per cent, the lowest in the G20. And we are improving our visa service to ensure that business people can get to Britain quickly when they need to – with a new mobile visa service up and running in Beijing and Shanghai and a new 24 hour visa service on offer from next summer. Our approach is working – last year the UK became the most popular destination in Europe for Chinese investment, attracting more than the next four most popular EU destinations combined. And we should build on that in the coming years with the huge potential for investment in our infrastructure plans. On the world stage too, China is clearly demonstrating its ambition to be a champion for open markets and free trade, and there is no greater advocate of that case for economic openness than the United Kingdom.
Third, Britain and China are well matched economic partners. While our economies may be at different stages of development, they’re increasingly complementary. Over the next decade China’s middle class will top 600 million – larger than the entire EU single market – and as these people grow richer they and their businesses will want more of what Britain is best at: financial services – with almost two-thirds of RMB payments outside China now made in London; science and innovation and high end manufacturing – from Jaguar Land Rover and Bentley to Rolls Royce aero-engines and Airbus planes; premier luxury brands – from Burberry to Paul Smith; and high quality entertainment – from James Bond to Downton Abbey. We are ready too to partner with China in delivering a greater demand for public services – in education, in healthcare, and in urban redevelopment. These are all unique selling points which we will promote on this trip.
It is only by Britain and China, governments and businesses, working in close partnership that we will build a fruitful and lasting relationship. There is a Chinese saying, ‘One generation plants the trees in whose shade another generation rests’.
Let’s plant a forest for our children to enjoy.
Accountant
11 年Hi USA AND CHINA
Retired Canadian Armed Forces Senior Officer Seeking New Horizons
11 年While I applaud the initiative to broaden economic advantage and growth to emerging markets, the enthusiasm is only linked to the economic lens. I fear blind spots are being missed in many interpretations of the West’s connections with China and other developing markets. If we establish the catalyst for the rise of the Chinese economy commenced with Mao Tse-Tung’s death in 1976, this turning point saw an internal struggle for dominance ensued within the Chinese Communist Party that saw the party’s right wing emerge as the lead in 1979. From that point, the Chinese right asserted its power and commenced a plan toward economic reform and trade liberalization. This paradigm shift in Chinese economic policy, and opening of its markets to foreign investment, has created 10% average economic growth per year for 30 years since 1979. However, limiting factors to this growth include 60% of products manufactured in China are linked to foreign investment; with 80% reliance in high technology manufacturing with intellectual property limitations hindering Chinese technological development. Further highlights show China’s 2005 GDP relied on 69% being foreign trade, 100% in coastal regions of the country. Since 1979 the Chinese government has been slow to react to results from this agenda change, and has not made further adjustments to move it along; there is little said of Chinese labour except there is lots of it. No mention of organized labour movements is present; and the currency is artificially kept at levels creating trade advantages. These combined factors create conditions that threaten economic growth in China that need to be addressed internally. HBR’s Regina M. Abrami, William C. Kirby and F. Warren McFarlan provide us with an article worth reading that grounds us beyond the economic lenses were are addicted to. The environment and Xi’s “Seven Nos” are particularly interesting. I ask if China’s soft power approach is simply veiled nationalism given these economic and social constraints? https://blogs.hbr.org/2013/11/five-challenges-china-must-meet-by-2034/
Safety Training Officer just an other name for HSE at Sapura Energy an Oil & Gas drilling company, passionated with people's safety, i strongly believe in incident free operations.
11 年State A/country A can sign a treaty or whatever you want to call it with State B/country B as long as it does not effect the national interest negativily,Therefore if Mr.prime minister deems it right that is ok.
Positive thinker and writer at shahislam.com
11 年Unfortunately, there won't be second chance of the century to recover what has been lost because of old global model of dishonest and corrupted justice system that should have been gloriously *"Blind" instead of being a permanent symbol of a royal type family business of a super wealthy group with too greedy and xenophobic mentality.
Business Development Manager at Corestone Ltd.
11 年Very little in the way of persuading one of the worlds greatest polluters to come to the table and commit to a "Greener" way forward........