Britain Seeks to Lure Chinese Investment Amid Global Economic Challenges

Margaret Beckett, the President of the Board of Trade, led a British delegation to China to woo Chinese companies into investing in Britain, marking a bid to establish a new source of East Asian investment. The initiative comes amidst the economic meltdown in other East Asian countries, which is expected to reduce investments from Japan and South Korea. Britain is positioning itself as a "gateway to Europe" for Chinese enterprises, capitalizing on China's growing economic influence and increasing its profile among the Chinese people.

Key Takeaways:

• Margaret Beckett launched a multimedia show in Peking to persuade Chinese companies to invest in Britain, promising a "warm welcome" to Chinese entrepreneurs.
• The British government aims to attract significant Chinese investment, despite its limited history of such investments, with only about 30 small Chinese investments in the UK so far.
• China has a total of 5,500 overseas projects worldwide, but the majority are in Asia and Australia, leaving room for British companies to expand in the region.
• The British government is trying to attract Chinese students to UK universities, with over 30,000 Pekingers attending an exhibition hosted by 100 UK institutions to attract Chinese students.
• The "Britain in China 1998" campaign aims to raise Britain's profile among the Chinese people, featuring cultural events and high-level visits, including a planned visit by Prime Minister Tony Blair.
• The UK trade deficit with China is substantial, with British exports to China far behind those of Germany, France, and Italy, despite a 26% increase in the first 10 months of 1997 to £738.7m.

Statistics:

• There are approximately 30 small Chinese investments in the UK, ranging from the Inner Mongolia Erdos Cashmere Group to the Bank of China.
• China has a total of 5,500 overseas projects worldwide, with the majority situated in Asia and Australia.
• The "Britain in China 1998" campaign aims to attract more Chinese students to UK universities, with an initial exhibition attracting over 30,000 attendees.
• British exports to China increased by 26% in the first 10 months of 1997 to £738.7m.
• The UK imports of Chinese goods during the same period were £2.04 billion.

Sources:

• "Labour laid out its stall in Peking yesterday to persuade Chinese companies to invest in Britain." (Source: Reuters).
• "Margaret Beckett, President of the Board of Trade, launched a multimedia show for businessmen and officials, promising a 'warm welcome'." (Source: Telegraph).