Sam Metcalf
Editor of Midlands Business Insider
In Focus: Eyes to the East
Andy Coyne finds the prospect of closer trading links with China an enticing one.
It’s difficult not to get excited about the close links Birmingham seems to be forging with China.
The recent visit to the city by Chinese premier Wen Jiabao, during which he visited the Shanghai Automotive car plant in Longbridge, has been seen as boosting commercial, economic and political links between the UK and China but we can be forgiven for focusing on what it means for this region.
As Jerry Blackett, chief executive of Birmingham Chamber Group, said: "With Chinese business culture you need to look out for signs and symbols.
"And the fact he's decided to visit here sends a very strong message about the interest China has got with doing business with this part of the world."
China is already the sixth biggest investor in the UK and is also important in export terms. But there is tremendous potential for growth.
To put things into perspective in trading terms, according to HM Revenue and Customs figures for 2009/2010, the UK’s export trade to Germany was five times the amount of our exports to China.
Whilst that is slightly worrying, it also represents a huge opportunity for businesses here to sell their products and processes in a market that is growing rapidly.
"They've already told us they need investment in infrastructure, automotive technologies, financial services, town planning, those sorts of things," says Blackett.
"They're looking to buy from the world and the fact the premier chose Birmingham and the region shows we've struck a chord and we hope we'll see more investment."
And relations between this area and China are about to get even closer.
The University of Birmingham is to open a collaborative centre this summer in Guangzhou.
It will help identify, design and co-ordinate the delivery of joint research projects in Guangzhou, the province of Guangdong and the broader Pearl River Delta region.
Additionally the centre will support knowledge transfer and engagement with business interests in the region, act as a base for research staff, and be a catalyst for the development of greater expertise on China within the university.
It is hard to see this as anything other than very good news and joint venture research in Midlands growth sectors such as medtech and biotech is a mouth watering prospect.
Inward investment expert Mike Loftus, writing a blog for Insider a few weeks ago, said there is almost a sense that China’s success and achievement in the last decade or so has produced an even greater willingness to absorb experience and know-how from overseas.
"There is a hunger to do business in China and our most entrepreneurial players are already fully engaged," he says.
China is an opportunity that everyone is keen to grasp. I don’t want to jinx things but it seems to me the Midlands has set out its stall well and we are very well placed to benefit from our close ties with one of the world’s most exciting countries.
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About Sam
Sam Metcalf is assistant editor of Midlands Business Insider, and has worked at the magazine for the last five years. Based in Nottingham he writes on commercial property, corporate finance, law, and international trade.
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