China's ambassador to UK optimistic over relations with new government

Economic relations between the UK and China are central to the partnership, China's ambassador in London said as he expressed optimism over the new Labour government.

Zheng Zeguang said at a "critical" time, he was confident of building stronger ties.

"It is my firm belief that our economic partnership is a foundation of China-UK relationship and the business community is a key pillar for this relationship,” he told an audience of business leaders. "We welcome the Labour government's message to strengthen engagement with China at all levels."

Speaking at a reception co-organized by the China-Britain Business Council (CBBC) and the China Chamber of Commerce in the UK (CCCUK), Zheng said China's efforts to drive high-quality growth through green innovation would create opportunities for British businesses.

Despite challenges in the real estate sector, local government debt, and low market expectations, Zheng expressed confidence in the resilience of the Chinese economy, which the government wants to grow 5 percent this year.

"In the second half of the year, China's economic development faces more opportunities than challenges," he said, citing the country's robust manufacturing sector, increasing domestic consumption, and strategic emerging industries.

Call for certainties

In 2023, approximately 27,000 foreign-invested enterprises were newly established in China, marking a 14.2 percent year-on-year increase.

The ambassador stated that all restrictions on foreign investment in the manufacturing sector will be removed and future measures will be taken to guarantee consistent national treatment of foreign companies in terms of access to factors of production, licensing, standard setting, and government procurement.

Peter Burnett, CEO of the CBBC, said that a change of government in London was an opportunity to improve the business environment, which has been hit by interventions against companies such as China's Huawei.

"I do think that one of the things that this new government wants to do is to iron out those uncertainties and make it very clear, how and where, the business community should engage," noted Burnett.

Navigating politics and trade

The trajectory of China-UK relations has evolved significantly, shifting from the optimistic "Golden Era" under David Cameron to a more cautious and complex engagement under recent leaders.

UK Prime Minister Keir Starmer has articulated a vision for a "robust" approach to China, following a commitment by foreign minister David Lammy to reassess China-UK relations within 100 days of taking office.

Since then, high-level exchanges have resumed, with Chinese Premier Li Qiang writing to Starmer and Chinese Foreign Minister Wang Yi meeting Lammy in Vientiane, Laos.

When asked about the impact of geopolitical tensions, Burnett said that the CBBC will work with all parties to represent the interests of business.

"We come across politics all the time. We have to understand them. But we don't have a view. We are an apolitical organization. We are motivated by economic prosperity, business, trade and investment," said Burnett.

"The US is an important ally of the United Kingdom, but that doesn't mean to say that the UK can't have its own independent thought and own independent process."

Subscribe to Storyboard: A weekly newsletter bringing you the best of CGTN every Friday