New China embassy, North Sea investment and the medical benefits of tangerine peel

Welcome to China in 5, from the British Chamber of Commerce in China.

Each week, we bring you up to speed with what’s caught our eye in the China-sphere in five(ish) minutes.?Grab a coffee, take a break, and dive in!

UK ministers signal support for new China embassy in London

What’s the background? UK Foreign Secretary David Lammy and Home Secretary Yvette Cooper have signaled conditional support for China's proposed new embassy at the former Royal Mint site in London. The project, which would become China’s largest diplomatic mission in Europe, has faced scrutiny over security concerns and its potential impact on local residents. The Labour government has framed its approach within a broader strategy of balancing cooperation, challenge, and competition in its relationship with China.

Fact 1: The Metropolitan Police have withdrawn their objection to the proposed embassy after assessing that there is sufficient space for protests without disrupting the surrounding road network.

Fact 2: The UK government has set conditions for the embassy's approval, requiring China to modify specific design elements and to consolidate its existing diplomatic premises across London.

Fact 3: The decision on the embassy’s approval ultimately rests with UK Housing Secretary Angela Rayner, who has called in the application, taking it out of the hands of the local council. A final recommendation will be made by the planning inspector before a decision is reached.

The UK government’s approach to the proposed Chinese embassy reflects a careful balancing act between national security, diplomatic obligations, and economic interests. While ensuring security concerns are addressed, it is equally important to maintain constructive engagement with China to support broader economic cooperation. The conditions set by the government aim to address legitimate concerns while fostering a stable diplomatic relationship between the two countries. Harry Bell Policy and Advocacy Manager, British Chamber of Commerce in China (BritCham China)

Gusty headwinds for Chinese energy companies in the North Sea

What’s the background? The Scottish government plans to allocate ￡60 million to two Chinese companies, Mingyang Smart Energy and Orient Cable, to establish factories supporting offshore wind energy production. This move highlights Scotland’s drive to become a green energy leader but raises questions about the implications of foreign, particularly Chinese, involvement in critical infrastructure. Balancing the need for inward investment to support the UK's renewable energy goals and addressing national security concerns has ignited debates among policymakers and industry stakeholders.

Fact 1: Mingyang Smart Energy Group Co., Ltd, China’s largest offshore wind turbine manufacturer, plans to set up a factory in Inverness, marking its first manufacturing facility outside China.

Fact 2: Ningbo Orient Wires & Cables Group Co., Ltd, also known simply as Orient Cable, a Chinese subsea cable manufacturer, is set to receive ￡27 million in funding starting in 2026 for offshore wind cable production in Scotland.

Fact 3: According to the International Energy Agency, nearly 60% of all renewable energy capacity installed globally between now and 2030 will be by Chinese firms.

Recent UK press coverage of the UK-China Economic and Financial Dialogue highlights optimism about fostering economic ties with China, particularly in green technology. However, there is growing scrutiny over security risks associated with Chinese involvement in critical infrastructure. This reflects the challenge of balancing economic opportunities with national security. While these investments would signify progress in green energy goals, some stakeholders will see this as a risky UK approach to energy security – a key topic to be debated by both governments in any future dialogue on energy. Public and political debates may complicate the positive narrative. Charlie Williams 魏家礼 Business Development and Growth Manager British Chamber of Commerce in China (BritCham China)

Coffee break read: ?“The Worst TikTok Timeline”

Why we like it: Blink and you would have missed it –?TikTok’s weekend-long saga of being banned then re-activated in the US caused panic among the millions of Americans who use the platform for sales, streams, or other moneymaking ventures. While lots has been written about the events of the weekend (not least the influence TikTok has gained in the new Trump administration), Princeton Politics Professor Rory Truex’s thoughtful analysis of the pros and cons of banning the app outright make for interesting reading – an important argument on how to balance national security and economics that we will doubtlessly see repeated over and over again this year.

Podcast of the Week: The Economics Show: Trump and the history of tariffs

Why we like it: The podcast explores the history and impact of tariffs, with a focus on US-China trade tensions and their implications for businesses worldwide. It delves into how tariffs have been used historically as economic and political tools, highlighting China’s evolving role in global trade. Doug Irwin, economics professor at Dartmouth College, provides a fascinating perspective on how China, once seen primarily as a low-cost manufacturing hub, has now become a strategic player in international trade policy. He discusses how China’s integration into the global economy has reshaped tariff strategies, from the early days of WTO accession to recent geopolitical frictions with the US. The conversation sheds light on how tariffs have influenced investment decisions, supply chains, and market access, offering valuable insights for those looking to understand the broader economic trends shaping today's trade landscape.

...and finally...

Xinhui, a district in China, is famous for its dried tangerine peels, known as chenpi, which have been valued for their medicinal benefits for centuries. Only peels from Xinhui are considered premium, with prices soaring based on their age. In 2023, 1kg of chenpi from 1968 sold for $9,650 at auction, while 500 grams of 50-year-old peels are currently valued at $9,650. Chef Li Chi Wai of Hong Kong’s Michelin-starred The Legacy House incorporates aged peels into his gourmet dishes, offering a banquet menu featuring peels up to 50 years old, with meals priced at $294 per person.

As we welcome the Year of the Snake, the British Chamber of Commerce in China wishes all our members, partners, and friends a prosperous and fulfilling year ahead. We look forward to continuing to support and connect the British business community in China, fostering collaboration and driving growth.