Companies from both countries poised to take advantage of opportunities, says council chief

UK-China trade and investment had great success last year, but more opportunities exist for the future, according to Lord James Sassoon, chairman of the China-Britain Business Council.

Last year, the CBBC focused on helping British companies adjust their business practices, to "get fully comfortable with new policy developments in China", Sassoon said. These developments include focusing on the quality of long-term economic growth, the importance of rule of law, consumption and private sector growth.

"Our work is to ensure that UK businesses understand the advantages they can gain from these policy developments," Sassoon said.

He cited opportunities such as the Shanghai free trade zone. His team has created practical guides to help British companies understand the level of access they can have in China's service industries through the free trade zones; what they can do to support the further liberalization of the Chinese financial industry; the extent of Chinese middle-income consumer opportunities; and how to improve the protection of intellectual property.

Chinese companies have rapidly expanded in the UK through organic expansion and acquisitions. Telecommunications firm Huawei announced in 2012 that it would invest $2 billion to grow its UK business over the next five years and increase the number of its employees to 1,500 by 2017.

In an effort to deepen its roots in the UK, Huawei recently appointed Lord Browne, former chief executive of BP, as chairman of the Huawei UK Board, a team of experts from different sectors that advises Huawei on how to do business the British way.

Sassoon said that this move shows Huawei's willingness to "embed themselves in the country", adding that it could inspire other Chinese firms.

The UK and China still have a great number of opportunities to cooperate, especially in the areas of financial services, creative industries, technology and infrastructure, according to Sassoon.

Two Chinese nuclear power companies are in advanced negotiations to invest in two planned reactors in the UK at Hinkley Point C nuclear power station in Somerset. Led by France's EDF Group, the pair of reactors will cost $21.5 billion.

Another high-profile project is HS2, the UK's high-speed rail network plan that has attracted Chinese interest, although the bidding process for the project has yet to begin. The first phase of construction should last from 2017 to 2026, with the first high-speed train service between London and Birmingham planned to begin in 2026.

Sassoon said Chinese infrastructure companies have deep operating experience and would potentially be a good fit for the UK infrastructure sector.

"High-speed rail networks in China are far more extensive than what we have in the UK, and Chinese high-speed rail firms' entry into the UK market can provide opportunities for UK firms to work in partnership with them," he said.

Sassoon said he looks forward to more Chinese companies investing in the UK, either to access its market or the wider European market.

"Our time zone, position in Europe and legal system create a great business environment," he said.

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(China Daily 03/05/2015 page6)