BEIJING: Chinese investment created more than 6,000 jobs in the United Kingdom in the 2014-15 fiscal year, according to Jin Xu, minister counselor of the economic and commercial office at the embassy of China in London.
“With 112 projects during the year, Chinese investment ranked fourth among all the foreign countries in the UK,” said Jin, making it the top job creator in the UK among developing countries.
“Chinese companies made a significant contribution to the UK economy through growth and employment, and the UK has been a main destination for Chinese investment.”
Jin was speaking as figures from UK Trade & Investment revealed that more than $1.4 billion in Chinese investment came into the country during the first six months of this year, compared with $7 billion in total last year.
To date more than 500 Chinese companies have established branches or offices in the UK, expanding into advanced manufacturing, infrastructure, financial services, telecommunications, brand networking and R&D.
One of the UK’s largest Chinese investors is tech giant Huawei Technologies Co Ltd, which has created nearly 1,000 jobs there over the past decade.
The company announced in 2012 that it would spend 1.3 billion pounds ($2 billion) in the country until 2017, split equally between procurement and investment.
Zhejiang Geely Holding Group Co Ltd announced in March that it planned to invest 250 million pounds building a new facility in Coventry for the London Taxi Company, a firm which it had rescued from administration.
Britain has been encouraging Chinese investment in its infrastructure, such as in its transport and energy sectors, especially nuclear, high-speed rail, offshore wind power and photovoltaic projects.
“Chinese companies are keen to promote their nuclear and high-speed railway technology to tap into the UK market,” Jin said.
China-UK trade reached $36.7 billion in the first six months of 2015, a similar level to last year.
The UK, meanwhile, keeps its ranking as China’s second-largest trading partner in the EU, while China remains the UK’s second-largest trading partner outside the EU.
Between 2009 and 2014, trade between China and the UK doubled, growing from $39.1 billion to $80.9 billion. The 2015 target for trade is $100 billion..
Jin said he is confident that the investment and trade trends between the two nations will improve in future.
The bilateral opportunities come as China’s high-speed growth is shifting down a gear as economic structure continues to upgrade, and the British economy is recovering.
“The Chinese market will be more open and dynamic in coming years and Chinese enterprises will also become more international,” Jin said, adding a strong recovery in the UK will also boost the confidence of Chinese companies, as they continue to put their money into the country.
Jin also noted the vigor and vitality brought about by forthcoming high-level talks planned between the two countries. President Xi Jinping has received an invitation from Queen Elizabeth II to visit the UK this year.
There are many areas in which China and the UK can cooperate more, Jin said.
He underlined that Britain was the first Western country to announce its intention to join the Asian Infrastructure Investment Bank, and that Britain’s expertise in the financial and service sectors, the creative industries, green energy and environmental protection is highly valued.
“The best chapter of China-UK cooperation is just ahead of us,” he said.
