China-UK forum showcases importance of relationship

Chinese and British executives have gathered in London to talk business. China is the UK's fifth biggest trade partner, although transactions have been falling since the Covid pandemic. 

The annual China-UK Economic and Trade forum in London was attended by both China's UK Ambassador and Britain's investment minister.

It's the seventh such forum organized by the Chinese Chamber of Commerce in the UK, which represents the interests of Chinese businesses in Britain. This year's forum is entitled Pursuing New Opportunities, Unfolding a New Chapter.

The forum comes just days after UK Prime Minister Keir Starmer held talks with Chinese President Xi Jinping in Brazil, with both sides talking up the prospects of economic co-operation. 

China's Ambassador to the UK, Zheng Zeguang, gave this year's keynote speech, making direct reference to the historic meeting in Brazil.

"President Xi stressed that China and the UK, both permanent members of the UN Security Council and major economies in the world, share the responsibilities of advancing their respective national development and addressing global challenges." ambassador Zheng told the audience.

He added: "We stand ready to work closely with the UK government to follow up on the common understanding between our two leaders and enhance dialogue, communication and collaboration wherever possible."

The ambassador also listed a number of areas where the UK and China need to strengthen cooperation in trade and investment. These include clean energy, financial services, and medical services along with collaboration in AI, climate change, education, culture, technology and tourism.

Total trade between the countries stood around $120 billion dollars in 2023, according to the UK government, but that's almost 20 per cent down on the previous year. The new Labour government's top priority is economic growth.

The second keynote speaker, Britain's Minister for Investment, Poppy Gustafsson, spoke of the need for "constructive dialogue".

Gustafsson told attendees: "Both our countries recognize the importance of a strong UK-China relationship. Yes, there are areas that we differ on, aspects of international trade and foreign policy. We can't wish these differences away but what we can do is engage in a constructive dialogue on them because that's how we drive growth together and realize a more prosperous future for both the UK and China."

Gustafsson also told the forum that Britain has agreed to resume the UK China Economic and Financial Dialogue program for the first time in five years and that she will be traveling to China next year as part of a large UK political and trade delegation.

The forum attracted around 400 attendees. Among the guest speakers was economist Gerard Lyons, Senior Independent Director of the Bank of China (UK). Lyons described the event as "a very important forum because of the timing and the changes in the external environment." He explained: "We now have a new government in the UK and that's allowing a reset of the UK China relationship. There are clear benefits for both countries collaborating."