Kiran Patel, senior director of the China-Britain Business Council Photo: Courtesy of Kiran Patel

Amid global headwinds, underscored by issues such as US tariffs, a senior British business insider emphasized in an exclusive interview with the Global Times the need to further strengthen economic and trade ties between the UK and China.

In the current global economic climate, particularly with the impact of US tariffs, the UK is becoming increasingly competitive as a destination for Chinese investors, said Kiran Patel, senior director of the China-Britain Business Council (CBBC).

On a further note, Patel said that the UK has entered a constructive new chapter in trade and economic relations with China and he believed that the British government is taking a coherent and strategic approach to this relationship. "Its (UK) focus is on building the economy, driving prosperity, and creating jobs across the UK while at the same time engaging pragmatically with its partners across the world - of which China is a very important one," Patel said.

Chinese firms in the UK have posted strong growth. According to the "2024 Report on the Development of Chinese Enterprises in the UK" recently launched, about 53 percent of the surveyed companies reported being profitable last year, the highest proportion since the China Chamber of Commerce in the UK started conducting the annual survey in 2020.

Another survey by Grant Thornton UK's Tou Ying Tracker showed 931 large Chinese companies remained very active in the UK market last year, with aggregate revenue close to 100 billion pounds ($126.4 billion) and about 57,000 local employees.

"Right now, there is curiosity among Chinese businesses about the UK's policies to attract Chinese investment. If you look at sectors such as offshore wind, battery storage and renewable energy, I can say there is growing interest and compatibility in these areas to explore greenfield investment projects across the whole of the UK," Patel said.

Meanwhile, China possesses booming sectors for international growth, which include renewable energy, battery storage, biotech, infrastructure development and artificial intelligence (AI), where Patel sees potential for cooperation. He made note of the emergence of the Chinese AI service provider DeepSeek, which he said "has highlighted China's rapid advancements, capability and global competitiveness in this space."

"Adoption of AI into both our daily lives and workplaces is a transformational change that will create challenges not only here in China but throughout the world… It does however also present new opportunities for business model innovation, creation of operational efficiencies and further product enhancements for global consumers," Patel said.

China's role as a strategic investment partner is important to the UK's economic growth agenda, Patel said, noting that the foundation of all of this rests on the key principles of confidence and trust. "Investor confidence and ultimately investor returns are shaped by the predictability and stability in the business and policy environment… I believe that Chinese investors in the UK will be closely watching how the UK shapes its partnership with China and are already capitalizing on the opportunities that this has presented," he noted. 

This is a promising landscape that could further contribute to growth in our economy and strengthen future cooperation, Patel said, noting that manufacturing and research and development hubs, in particular, are areas where UK innovation can align with China's globally leading position at the cutting edge of key sectors such as electric and new-energy vehicles, net zero initiatives, renewable energy and healthcare and life sciences.

"It is particularly interesting to see the potential throughout the pharmaceutical and renewable energy sectors — areas where China is positioning itself as a global collaborator in addressing the common challenges that humanity faces," the senior director said.

From the perspective of someone who has lived and worked in China for more than 20 years, Patel said that "it is encouraging to see China opening its doors further to foreign investors and also starting to encourage its private sector to pursue global growth."

In light of the current global situation, including the impact of US tariffs, most economists have revised their growth forecasts for major economies. However, China is still expected to grow, with its first-quarter performance having been positive despite the tariffs and broader geopolitical challenges, Patel said.

"As a baseline, I believe the fundamentals of China's economy remain strong and promising," he said.