Tag: Li Keqiang

China UK: Trade Investment Deals

KeqiangTrade and investment deals were signed at the end of last month between large companies from China and the UK, totaling approximately £14 billion ($23.8 billion). At the same time, Premier Li Keqiang was in the midst of a three-day visit to the UK, seeking to enhance corporate links between the two nations, while participating in the annual UK-China Summit. Keqiang said:

“I believe there is extensive common interests between our two countries and our cooperation serves the interests of both and has global ramifications. And China is ready to work with the UK to foster a partnership for growth and inclusive development to ensure that this relationship will grow faster and in a healthier way.”

In recent years, there has been a substantial escalation in UK-China business – one example being jump to £12.4 billion last year from £7.6 billion in 2010 of UK goods being exported to China. The UK has been upping these exports as part of its program to counteract the Euro-Zone crisis’ impact. In addition, it is increasing exports to other fast-growing developing economies. China is just one of these.

UK Prime Minister Li Keqiang echoed this sentiment when he pointed out:

“The figures tell the story—bilateral trade at record levels, our exports to China up 15% in 2013, they have more than doubled in the last five years and at £1 billion a month, they are growing faster than France or Germany.”

Still, despite these economically-attractive figures, there is still work to be done on the political field. Just two years ago, Cameron irked Chinese officials when he met up with the Dalai Lama. It seems that things haven’t changed all that much in this regard over the last few years. Indeed, just before Keqiang arrived in the UK, he threatened to cancel his trip should he not be granted an audience with the Queen. In an article in The Times it was reported that the Queen had become “a pawn in a secret diplomatic showdown between London and Beijing.”

So while economically things are definitely moving in the right direction, the same cannot necessarily be said for the political situation.

Improving China UK Relations

uk-china-relationsAfter quite some time, China UK relations are on the upswing.  It seems that Britain and Beijing are finally ending their cold war, possibly primarily due to the fact that the UK government is not prepared to witness an independent Tibet.  Indeed, this move to enhance China UK relations was even commented on in The People’s Daily (Communist Party’s official newspaper) which wrote “Sino-UK relations have taken a step forward.”

In a move that is likely to further enhance China UK relations, Britain’s Prime Minister David Cameron is due to hold a summit with China’s Premier, Li Keqiang.  This will bring to an end over a year of no contact at top government level.  Having no contact during this time has panicked officials in the British government who feel England could lose out to other European regions like France and Germany that both boast strong political-economic connections with Beijing already. Foreign Secretary William Hague told his Chinese counterpart Wang Yi that this year had witnessed “unprecedented Chinese investment into the UK as well as strong growth in bilateral trade.”

It would be good if China UK relations were to receive some injection of good faith.  Things weren’t always so poor.  Indeed, around 10 years ago, Britain was the fourth-largest trading partner China had.  Clearly China UK relations can return at least somewhere close to that position.