Could the London taxi help drive fresh UK and China collaboration?

The UK Chancellor's (Finance Minister) visit to China has sparked fresh calls for stronger collaboration between British and Chinese firms, particularly in the fields of electric vehicles (EVs) and renewable energy technology. 

Among those advocating for this partnership are companies like the London Electric Vehicle Company (LEVC), which revitalized a British icon - the London taxi - with Chinese investment.

In 2013 Chinese automaker Geely stepped in to rescue the London Taxi Company from administration. 

With an investment of over $1 billion, Geely transformed the business, establishing a state-of-the-art factory in Coventry. The company, renamed the London Electric Vehicle Company, now produces a modern hybrid version of the classic London taxi - symbolizing a blend of British engineering and Chinese innovation.

Chris Allen, Managing Director of LEVC, emphasized the significance of this partnership. He said: "The cooperation between the UK Government, China Government, Geely investment, and UK operations is hugely significant. 

"What has been delivered through LEVC is a huge success around the UK skill base in advanced engineering, manufacturing design, and new technology with China's funding and resources."

This collaboration comes at a critical time for the UK economy. Recent figures from the Office for National Statistics paint a bleak picture: GDP growth flatlined in the third quarter of 2024, while manufacturing output dropped by 0.4 percent. 

Meanwhile, the past week has seen a drop in the pound and an increase in government borrowing costs, fueling speculation that the UK Government could be forced to cut spending or increase taxes. 

Against this backdrop, Chancellor Rachel Reeves' trip to China is seen by many as an opportunity to attract foreign investment and drive growth.

Crispin Simon, former UK Trade Commissioner for South Asia, expressed support for foreign investment in British manufacturing, saying: "We would prefer British-owned companies to be manufacturing in Britain, but we are a very open economy. 

"If a foreign-owned company is serious about manufacturing here, that is a cracking result, especially if they're bringing in production technology that we wouldn't otherwise have."

As discussions continue in China, businesses like LEVC are hoping for policies that encourage shared research and development, trade incentives, and stronger ties between the two countries. 

According to Allen, the chancellor's visit is hugely significant for businesses like theirs. He added: "For me, it says a statement of collaboration and growth within not just the economic but the technological landscape that we want to see grow between us."

If Reeves' mission succeeds, the UK could see more facilities like LEVC's Coventry factory, creating thousands of jobs and revitalizing the nation's struggling economy, while accelerating the global push toward zero-carbon technologies.