Linda Penny, partner, Wilkins Kennedy
I have worked with international global businesses for many years, Wilkins Kennedy are also the national strategic partner to the British Chambers of Commerce Link to China Programme and I head that up at Wilkins Kennedy.
Key comments: "The fact is that the UK's traditional export markets have been in a shaky state. Companies need to be looking to the developing economies. The Chinese 5 year plan issued in 2011 is that they are looking for a more balanced economy and it is a policy point to actively encouraging imports for their domestic market and for the Chinese to invest outside. Given that China has only really been open for twenty years, that next phase is well and truly upon us. The impact of that policy decision, will play well into the hands of UK exporters.
"The markets where British skills and expertise should do particularly well are high tech goods, aviation, anything to do with green energy, such as our thriving eco vehicle industry. That is in great demand in China. At the moment we have the edge in some key industries.
"China is also desperate for skills so the country, the economy, can upskill. The Chinese government are quite smart, there's a realisation that the days of being a low cost manufacturer are numbered. Chinese manufacturing prices are being undercut from Cambodia and Vietnam so as part of the move to the next phase, they are looking quality products, but also services too."
On mergers and acquisition activity: "I'm going out to China as part of the annual Chinese outbound investment conference which will be attended by something like 1600 delegates. It is the annual event to encourage Chinese companies to invest in companies outside of China. The UK has a slot and I am honoured to have a half hour speaking slot at that conference. There are a number of UK companies owned by people in the late 50s for whom succession planning has become quite an issue. They have been hanging on through the downturn in the UK hoping they can sell when things get a bit better. But those thoughts recede into the background with every bit of economic bad news.
"Introducing Chinese businesses into this becomes more attractive. The fact is that the Chinese will pay good prices for good businesses. I know there has been this attitude that they'll own everything, but they own a tiny part of the economy at the moment. They are ambitious and are interested in the UK."