UK-China business engagement, DeepSeek, AI landscape reshaping, Chinese private sector in spotlight

🔥 Hot Topics

Wang Yi’s official visit to Britain – how does it affect British businesses?

Chinese foreign minister Wang Yi’s first official visit to Britain on Feb 13 signified increased UK-China engagement under the current Labour government and was welcomed by businesses with ties to both countries. Key areas ripe for further UK-China collaboration identified include trade, investment, AI, clean energy, and climate change.

The British business community is looking at potential real, tangible opportunities arising from the outcome of this trip. The focus on finance, green energy, and trade translates to real potential for growth; increased market access in China means expanded opportunities for UK firms, which matters as China is the UK’s fourth-largest trading partner.

The sector-specific cooperation is where things get interesting. Deepening ties in clean energy, AI, fintech, and biotech promises to open the door for joint ventures, strategic investments, and access to cutting-edge technology. That’s the kind of future-proof innovation crucial for British companies. On the financial side, London’s role as a key RMB trading hub, and the success of the Stock Connect, provide greater access to China’s capital markets and expand the UK’s commercial reach. This kind of financial integration can make a real difference to companies’ bottom line.

Further reading:

Xi’s Symposium and the private sector in China – does it matter to Britain and Europe?

Chinese social media is abuzz this month with a hot topic: where President Xi Jinping invited a group of prominent private entrepreneurs to a high-level symposium, the first of its kind since 2018. The attendance of such notable figures as Alibaba Group co-founder @Jack Ma, Xiaomi Technology CEO Lei Jun, and Huawei founder Ren Zhengfei has been widely interpreted as a positive sign that Beijing is softening its stance on large non-SOEs in the tech sphere, highlighting the importance of the private sector in China’s tech rivalry with the United States.

This meeting is seen as a significant show of support and a potential turning point for China’s private sector. It has sparked optimism among investors and entrepreneurs about renewed growth momentum.

Businesses are watching closely on this side of the pond. A revitalised Chinese tech scene, driven by innovation, means both opportunities and competition for the UK and Europe. Increased investment and growth there could open new markets and partnerships, but it also demands that businesses stay agile and competitive in homegrown tech development. Ultimately, a more dynamic Chinese market impacts global tech trends, and the West needs to be prepared to adapt.

Further reading:

DeepSeek, AI in China, from the UK/Europe’s point of view

DeepSeek’s open-source AI approach is a tech disruptor. Through shared code and model access, it offers businesses the potential for faster innovation and cost-effective development. However, increased model accessibility also raises cybersecurity risks, demanding significant investment in AI security protocols and infrastructure. The surge in data centre capacity needed for DeepSeek-like models presents infrastructure costs and opportunities for related tech industries, such as hardware and cloud computing providers.

From a UK perspective, the open-source nature of DeepSeek could be a double-edged sword: potential for accelerated development and cost-effective AI solutions on one side and more concerns about IP protection and data security on the other. The data centre capacity needed to support DeepSeek’s technology presents infrastructure challenges and opportunities for UK providers – it necessitates increased investment in data infrastructure while opening doors for companies specialising in data centre solutions and cloud computing.

Facing an evolving AI landscape in China and the rest of the world, UK companies must prioritise adaptability, navigate complex regulations, and build strong partnerships to capitalise on China’s AI advancements.

Further reading:

🔍 Insight

The Reshaped AI Landscape – Implications and Strategies for UK/Europe Businesses

The rapid development of artificial intelligence (AI) in China, driven by companies like DeepSeek, is dramatically changing the global tech landscape. Understanding China’s AI ecosystem has become crucial for UK businesses, especially small and medium-sized enterprises (SMEs) in innovative sectors. This analysis explores China’s AI journey, highlights its unique competitive strengths, identifies upcoming challenges, and suggests practical strategies for UK firms to successfully navigate and thrive in this dynamic environment.

READ MORE

🔴Before you go, a quick recap of what we’ve been busy with this month…

📌 Chinese delegation visits

We facilitated a visit of a delegation from Hangzhou Capital, a prominent investment firm from East China specialising in full-cycle tech and innovation investment, recently visited two of the UK’s leading research centres Data Science Institute of Imperial College London and the Francis Crick Institute (FCI) to explore potential collaborations in capital operations, project incubation, technology transfer, talent development, and commercialisation. The visit was facilitated by Crayfish.io.

READ MORE

📌 A trip to Brussels

Crayfish.io is expanding into Europe! Our Founder & CEO Ting Zhang FRSA met key stakeholders, partners, and existing and potential clients in Belgium. More about her trip to Brussels this month in the LinkedIn post here.

📌 Optimism felt

How do British businesses see the Chinese market going forward? A quick survey we did this month reveals cautious optimism about China’s potential, despite regulatory hurdles. Many British businesses plan expansion, focusing on exports and sourcing, emphasising compliance and strategic agility for long-term growth. More in the LinkedIn post here.

📌 Trends identified

What are British companies asking us about?   Looking at the enquiries from UK businesses over the past 12 months, what have we seen?🧐 Three trends stood out across industry sectors, and they are aligned closely with our service offerings. Find out more in the LinkedIn post here 👇

A snapshot of the trends from the enquiries we received from multiple channels in 2024

HAVE QUESTIONS OR NEED HELP?