‘Strengthened co-operation’ set to boost China–UK trade

The Chinese government is looking to explore new opportunities to trade with the UK, following the conclusions of the two countries’ recent trade talks in China.

The China-UK Economic and Financial Dialogue held earlier in January were designed to further strengthen collaboration with the United Kingdom and achieve higher level mutual benefits, according to official sources.

The talks took place between delegates headed up by the UK’s Chancellor of the Exchequer, Rachel Reeves, and Chinese Vice-Premier He Lifeng.

“Through continuous efforts in deepening the interconnection of financial markets between Shanghai and the UK, Shanghai is set to carry out more scientific research exchanges among universities and research institutions, as well as strengthen innovation cooperation in areas including digital economy and artificial intelligence,” Gong Zheng, mayor of Shanghai, said during his meeting with Reeves.

The joint efforts in achieving high-quality development are expected to benefit the well-being of people both in Shanghai and the UK, Gong added.

Reeves said Shanghai played an important role in collaboration between China and the UK, with two-thirds of British companies choosing Shanghai to establish their China headquarters.

“It is believed that both Shanghai and London would benefit from the two countries’ strengthened co-operation in the capital market connectivity, the development of British financial institutions in China, and the deepened collaboration in green finance,” said the UK Chancellor.

According to Gong, Shanghai is an important bridge of exchanges and co-operation between China and UK, two of the world’s major economies.

“We look forward to strengthening economic and trade exchanges, industrial investment, financial opening-up and technological innovation cooperation between the two sides, and warmly welcome British companies to participate in this year’s CIIE (China International Import Expo) and expand their investment in Shanghai in the fields including clean energy, advanced manufacturing, medical and health care, among others,” Gong said.

Reeves said the China-UK Economic and Financial Dialogue has achieved fruitful results. Looking forward, more cooperation will be conducted in more areas to catapult the bi-lateral collaboration to a higher level, said Reeves.

Jose Vinals, group chairman of UK-based banking group Standard Chartered, commented: “It is very important that after five years this dialogue between the UK and the Chinese government is resuming, because the world needs China, and China needs the world. I think that the UK is an excellent partner for the continuing integration of China with the rest of the world.

“At a time when we were all concerned about the potential for further fragmentation in the global trade and investment order, I think it’s very important that two countries, which think alike in terms of the relevance of open trade and open investment and financial connectivity, get together in order to foster this important cause,” said Vinals.

Vinals believes China and the UK have great similarities in this approach to open trade, investment and finance and can complement well each other.

“China is the second-largest economy in the world, is a very thriving, innovative, technologically advanced economy. And the UK, it’s a financial powerhouse, a leading international financial centre with tremendous innovation as well important technology innovated sector. I think that by joining forces and complementing each other, this is helping to achieve both countries important outcomes going forward,” he said.

According to the UK government policy paper on the UK-China Economic and Financial Dialogue, both sides believe that as permanent members of the UN Security Council, leading economies and financial powers, there is mutual benefit and strategic importance to maintain a durable, stable and respectful relationship.

SMEs’ performance improves in last quarter of 2024

China’s small and medium-sized enterprises (SMEs) saw improved business performances between October and December 2024, according to a report from the China Association of Small and Medium Enterprises published recently.

The Small and Medium Enterprises Development Index, based on a survey of 3,000 SMEs across eight major industries, stood at 89.0 in the fourth quarter of last year, 0.1 points higher than in the third quarter.

The index also contains multiple sub-indexes to gauge the performances and expectations of SMEs.

The sub-indexes for industrial production, construction and transportation all showed improvement, while the sub-index measuring SMEs’ confidence in the macroeconomy remained stable compared to the third quarter, according to the report.

China’s SMEs saw a gradual improvement in both confidence and market demand, leading to a surge in development vitality, according to the association.

It emphasised the importance of expanding demand and boosting consumption in future efforts, while also calling for creating more opportunities and room for the development of SMEs.