UK welcomes more investment
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Q: China has repeatedly urged the UK to loosen restrictions on high-tech exports. How was this issue discussed and addressed in Beijing? Why does the UK find it hard to loosen these restrictions?
A. On this mission, we had companies that are working in many high-tech areas such as Ultra Electronics, Sgurr Energy and Rolls-Royce. I would also note that six of the UK's top 10 exports to China in 2009 were high-tech goods.
I was pleased that I could open BT's innovation center in Beijing during the visit, and I also opened a Jaguar Land Rover showroom. These cars are a fine example of the UK's strong and innovative advanced engineering sector.
I'm pleased to report that one of the areas where we made progress in our talks was on strengthening cooperation in intellectual property protection.
Q: How important is Chinese investment for the UK? How do you plan to attract more Chinese investors? Which sectors in the UK would be most attractive for Chinese investors?
A. China is moving quickly up the rankings in terms of foreign investors in the UK and is currently sixth overall by number of projects. The international competition for investment is intense, but we have a good track record of Chinese companies thriving in the UK.
The British Pavilion at the Shanghai World Expo, which was awarded a gold medal last month, has been a great catalyst for attracting investment and has generated more than 1,000 leads.
As to sectors, the interests are wide-ranging. To give two examples, Xiangxue Pharmaceutical has confirmed that it will expand its UK activities, setting up its own R&D center in Cambridge by the end of 2010. And Brunel University will work with the Yuchai Engineering Machinery, the largest diesel engine manufacturer in China, on a project that could help cut fuel use by Chinese buses by 10 percent.
In the last three years, Chinese companies have committed to more than 50 R&D collaboration projects with a further 50 in the pipeline. These collaborations have led to significant R&D investments in the UK, with more planned in areas such as telecom, life sciences and the creative and automotive industries.
I would like to see this trend continue.
Q: With Sino-British ties in trade, business, and investment developing rapidly, some commentators say bilateral ties are nothing more than "business-to-business" relations. Some even say the UK attaches great importance to China because it faces fiscal difficulties at home. Do you agree with them?
A. The UK has taken tough but necessary action on fiscal spending. According to the International Monetary Fund, which endorsed our program, our economy is now recovering from the global credit crunch, with employment and investment on the rise. We retain our AAA credit rating.
The UK is not only the second biggest exporter of financial services in the world but it is also the world's sixth biggest manufacturer. We're in China because we have a commitment to strengthening our ties, and this is what this mission has achieved.
Britain has a great deal to offer China. We are a gateway to the EU, China's largest export market and the world's largest single market. We have unique advantages our time zone, our language, our universities, which include six of the best in Europe and two of the top three globally. And there is a strong strategic fit between our economies.
This visit has been a further step forward in UK-China relations, adding momentum to our commercial relationship and cementing a partnership that can help deliver strong and sustainable growth in the years ahead.
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