Economic ties with UK on track for continued growth

By Li Jiabao (China Daily) Updated: 2014-05-29 10:32

Xu Weiping, board chairman and general manager of ABP (China) Holdings Group, is planning an Asian business park in London with a total investment of 1 billion pounds ($1.7 billion).

Economic ties with UK on track for continued growth

Britain, China boost biz ties

Chinese enterprises' investment in Britain surges

"The park serves as a platform to team up Chinese businesses and better tap into UK markets," Xu said. "The first phase will cover 1.5 million square feet with an investment of 300 million to 350 million pounds. Construction will start in October or December of this year and will be concluded at the end of 2016. The park is set to accommodate businesses in the high-tech, energy-saving and environmental protection sectors, as well as modern services."

In addition to investment growth, China's trade with the UK also highlights bilateral economic ties. In the first four months of this year, China-UK trade surged 20.6 percent year-on-year to $23.33 billion, compared with the 11.3 percent growth of China-Eurppean Union trade. China's exports rose by 14 percent to $15.85 billion, and its imports jumped 37.3 percent to $7.48 billion, according to the General Administration of Customs.

"The maturity of the Chinese market is driving the strong growth in UK exports to China. We are seeing a shift in China toward more consumption. Chinese companies and consumers are looking for more high-quality goods from overseas. ... We have seen this represented in many consumer sectors, like small companies selling food and drink such as jam, wine and cheese," Phillips said.

In addition to luxury brands, middle-tier brands are increasingly attracting Chinese consumers, which is "very encouraging because it's a much broader-based relationship", he added.

"In addition to the driver of expanding Chinese consumption, Chinese companies are moving up the value chain and becoming more innovative. And the UK can help Chinese companies move up the value chain," Phillips said.

"Another potential driver for strong trade growth is the continuing urbanization in China, creating opportunities for overseas companies having clean technologies and green technologies," he added.