Summary

• How do Trump tariff jitters impact China and influence UK’s relationship management?
• What are the key collaboration areas in UK’s green energy sector for global players to join?
• Silver Economy in China – what does it mean to UK?
• Cambridge Wide Open Week – CWOW 2025

🔥 Hot Topics

🇬🇧-🇺🇸 UK-US trade talk: ‘positive’

Amid the Trump tariff jitters, the UK’s chancellor Rachel Reeves had threaded a delicate needle in Washington, navigating complex trade negotiations with the US, EU and China.

She met US Treasury Secretary Scott Bessent on Friday (April 25) to discuss a potential bilateral economic prosperity deal, focusing on fostering economic growth and reducing trade barriers. Reeves assured Trump’s administration that she shares concerns about the global economy—particularly China’s export-heavy model—but opposes high tariffs. Concerns over Trump’s tariffs — impacting British car and metal exports — remain a challenge.

Reeves prioritised post-Brexit ties with the EU over the US trade deal, emphasising the EU’s importance as Britain’s largest trading partner, and met German Finance Minister Joerg Kukies in preparation for a UK-EU Summit in May, aimed at strengthening post-Brexit economic ties.

She also engaged with China’s Finance Minister Lan Foan, too, following Britain’s announcement of stricter customs controls and anti-dumping measures. She highlighted the UK’s “clear-eyed re-engagement” with China, focusing on opportunities that align with British interests.

Before her trip to the US, Reeves dismissed the idea of economically disengaging from China, saying it would be “very foolish”. This came as the UK seeks a trade deal with the US, with Keir Starmer having recently discussed “ongoing and productive discussions” with Donald Trump, amidst reports of US officials aiming to isolate China through trade agreements and tariffs.

Further reading:

• UK’s Reeves talks trade with US’s Bessent after stressing EU ties | Reuters
• PM and Trump step up trade talks – as chancellor warns it’s ‘foolish’ not to engage with China
• Cutting business ties with China would be ‘foolish’, Reeves says amid reports of US pressure | Trade policy | The Guardian

🇨🇳-🇺🇸 China-US trade talk: yes or no?

Trump: we are talking! Beijing: no, we are not!

Trump’s first 100-day in office is marked by, among others, a trade deal chaos: he talks talks, Beijing says no. China prepares for tariff war shocks and US popularity among allies tanks. In his newsletter Trade War, Dexter Roberts offers his take: a trade deal between China and the US is possible, but not on Trump’s terms or timeline.

According to Yi Cai Global, China is likely to achieve the 5% growth target this year even with the expected impact of the tariff war, thanks to Beijing’s pre-emptive fiscal measures, good momentum at the starting point, and signs of stabilisation in the property sector.

Foreign-funded companies in China, which represented nearly 30% of China’s trade by dollar value last year, are facing 125% import and 145% US export duties under the tariff war, the Financial Times reported. This is particularly damaging for those importing raw materials or components for assembly and export to the US,  such as Apple, Tesla and many smaller producers that rely on China as a manufacturing base.

Some more thought-provoking data from the South China Morning Post: 30% of Chinese satellite firms depend on US components, a staggering 86% of surveyed German companies in China reported being negatively affected by tariffs, and the combined economic weight of the US and China represents a substantial 43% of the world’s GDP.

Last but not least, China expert Tom Friedman made a compelling argument on the Ezra Klein Show about why he believes Trump’s tariff war with China is doomed.

🎧🎧 Why Trump Could Lose His Trade War With China | The Ezra Klein Show

Further reading:

• Trade war hits foreign companies in China with double tariffs
• Will Trump’s Tariffs Tank China’s 5% Growth?
• Trade War – Dexter Roberts

✨ Sector Insights

UK’s green energy market and China

The green energy transformation represents a vast market, a terawatt-scale opportunity. The UK’s ambitious net-zero targets call for a rapid expansion of offshore wind capacity—from 15 to 50 gigawatts (GW) by 2030. This target signals significant market growth, with projections suggesting the potential for 100-120 GW by 2050. Achieving these milestones requires a stronger domestic supply chain, complemented by collaboration with international players, including China.

What does this mean for China?

We discussed this with Dr Chong Ng, Associate Director of Applied Research at the Offshore Renewable Energy (ORE) Catapult. He believes the UK is creating a “cake” large enough to be shared by domestic and international players in the green energy space.

READ MORE

China’s ageing population and Silver Economy

China’s population is rapidly ageing due to consistently low birth rates and increasing life expectancy, giving birth to a new economic sector, the so-called Silver Economy. While the Chinese government is addressing the many challenges that come with an ageing population, market opportunities emerge for Western countries.

It’s about know-how and supply chains, experiences and best practices, and innovation in supporting an ageing society in the AI era. Europe and the UK’s significant lead in managing ageing demographics translates to a significant advantage that can be leveraged to develop new business in China.

READ MORE

📢 Before you leave …

Ting’s blog on IP in China

China has made significant strides in strengthening its IP laws over the past couple of decades. However, there are still IP challenges for Western companies navigating the Chinese market.

Read the new blog by Ting Zhang FRSA on the IPI Academy website here: Protecting Your Intellectual Property in China: What You Need to Know

Expand your knowledge by joining Ting Zhang FRSA, Jane List and Jiansheng (Ron) Xu who are presenting the Best Practices for Doing Business with IP in China course, running on various dates throughout the year. See the programme and more details here: https://shorturl.at/0hUYp

CWOW 2025, come and say hello!

Mark the date – June 9 – 13, Cambridge Wide Open Week 2025!

Started three years ago, CWOW is designed to provide a unique opportunity to highlight innovation and collaboration across Cambridge. Participating venues will be open for curated tours and companies will open their doors to visitors on June 11, the Cambridge Wide Open Day (CWOD). Last year, CWOD brought together 1,000+ attendees, exploring 160+ companies across 21+ venues, featuring talks, tours, demos, and more.

Crayfish.io was a proud and happy participant in the past two years along with other companies in St John’s Innovation Centre, an official venue, and will be thrilled to do it again this year. We will open our doors, showcase our work, and engage with the Cambridge community and beyond.

Watch this space for more details as they are released. We look forward to welcoming you then and there!