🔥 Hot topics
Several significant developments emerged in the UK-China business landscape in November. We combed through the headlines and analysis:
🇺🇸 Trump Tariff Threats
As the US President-elect, Trump’s tariff threats, senior post appointments, and other actions or claims of intentions grab the world’s attention. The ripple effects of his tariff threats on China, Canada, and Mexico prompted countries and multinationals to reach out for their trade war playbooks to prepare for more uncertainties and the anticipated stronger headwinds in the coming months or years.
China reiterated that no one wins in trade wars. When the US election results came out, a small-sample informal poll was conducted by a Chinese business media company to find out how Trump 2.0 looks in the eyes of Chinese business circles. The findings can be found here.
🇬🇧🇨🇳 UK-China relation
The Starmer-Xi meeting on the sidelines of the G20 summit in Brazil signals the unfolding of a new chapter in UK-China relations at a time when bilateral trade suffered a two-digit decline YoY, geopolitical tensions, policy uncertainties, and regional success stories. The East and West Midlands have emerged as the UK’s largest goods exporters to China, with exports growing by 13.4% to reach £6.7 billion.
This surprising growth indicates that certain regions and specific sectors may still find opportunities within the broader context of UK-China trade. Various initiatives, trade missions and events, such as the seminar organised by Santander UK on opportunities and challenges in the Chinese life science markets also played a crucial role in enhancing ties and exploring new cooperation opportunities that benefit both markets.
UK-China synergies
China’s development plan puts innovation and technology at the centre, reflecting the commitment to driving future growth through technology investments and innovation, viewing UK tech companies as valuable partners. On the UK part, while increased regulatory scrutiny and complex balancing acts due to geopolitical tensions are expected, opportunities for collaboration are emerging in several key areas, such as AI, big data, fintech, ed-tech, and e-commerce.
The labour government’s focus on sectors like green technology aligns with China’s development priorities. The sectors on the UK government’s priority list for growth spell opportunities and new channels for trade growth if managed effectively in the backdrop of the changing regulatory landscape. Those sectors include:
📌Biopharmaceuticals
📌Automobiles (especially electric vehicles),
📌Financial services
📌Renewable energy
📌Advanced Manufacturing
And a word about the Chinese economy in 2025
The country is yet to achieve the 5% growth target, with GDP edging down from 4.7% in Q2 to 4.6% in Q3, according to Statista. The government is trying to boost confidence and consumption through monetary policy and dozens of other stimulation measures, removing barriers to inbound foreign investment, and encouraging domestic companies to ‘go global’.
Overall, things started to look better in Q3, but analysts expect to see the stimulus reflected more prominently in economic data in 2025. Detailed analysis and forecasts👇
Further reading:
🔗 China’s 3Q GDP beat should keep growth target in striking distance | articles | ING Think
🔗 Trump vows new Canada, Mexico, China tariffs that threaten global trade | Reuters
🔗 UK’s Starmer calls for ‘consistent, durable’ ties with China in Xi meeting | Reuters
🔗 China’s Economy in October 2024: Retail Gains, Exports Surge
💡Insights
Are IP concerns stopping you from exploring the Chinese market? They shouldn’t. Here are some key points we hope you’ll find helpful:
✅ Secure a Chinese Patent for Stronger IP Protection
✅Consider Cost-Effective Patent Filing Options
✅Partner with Caution to Safeguard Your IP
✅Establish a Local Entity to Better Control Product Registration
✅ Register Trademarks Early – Even if Entry Isn’t Immediate
✅Tailor Your IP Strategy for China from the Outset
Read the whole article to find out more about the key IP concerns and how to tackle them to succeed in China. 👇
🎧 Finally, not to be missed …
Talking Business in China Podcast: Ep5 Chinese language & culture – a nuanced approach.
Do language and cultural elements affect your communications or negotiation while doing business with your Chinese counterparts? Of course, they do. So, what do we mean by a culturally nuanced approach? Find the answer (at least part of it) in the latest episode of our podcast, Talking Business in China.
🎧Check it out and subscribe on Spotify, YouTube.
🏫 UK School Visits: a Learning Trip for a Group of Educators from China
What happens when a group of Chinese high school headmasters visit UK independent and state schools? Here’s an example to give an idea, a recent visit we hosted.