China has achieved a lot over the last five years in terms of improvements to its business environment and attractiveness to foreign companies such as those from the UK, Guy Drury, the chief representative of China for the Confederation of British Industry (CBI), told the Global Times over the weekend.
Many smaller UK companies have been entering the new growth sectors of China's economy in the last five years, including services, advanced technology and consumer products, Drury said, noting that there is also a trend of foreign direct investment (FDI) from the UK shifting toward inland regions, which is in line with China's national development plans.
Meanwhile, well-known UK companies such as Jaguar Land Rover, GKN and Intercontinental Hotel Group have announced year-on-year revenue growth during the past five years, mainly boosted by China's stable and robust economy, he said.
"Following Chinese President Xi Jinping's visit to the UK in 2015, the UK continues to enjoy closer economic and trade relations with China," Drury said.
There has also been growth in trade between the two countries. In 2016, the UK was China's second-largest trading partner in the EU after Germany, and also the eighth-largest worldwide, according to Drury.
Drury said he expected that the 19th National Congress of the Communist Party of China (CPC) "will serve as an important platform, after which UK investment in China will increase and diversify."
However, Drury noted that there are areas the meeting could potentially discuss. For example, about 61 percent of the CBI's member companies have complained that market access barriers have somewhat increased in China, he said.
Therefore, there are hopes that in the wake of the 19th CPC National Congress, Chinese authorities can "further open up key sectors such as professional services, telecommunications and medical healthcare to foreign business, while also allowing majority shareholding for foreign enterprises in Chinese companies," Drury noted.
Economic cooperation between the two countries remains promising, as China's economy is transitioning from growth driven by exports and manufacturing to high value-added technology and service sectors, areas in which UK companies can be instrumental, he noted.
Also, UK firms in the areas of financial services and infrastructure can further help Chinese government promote the Belt and Road initiative, he added.
