UK and China Trade: Experts Predict a Strong Continuation in 2023
In 2022, China ranked among the UK’s top trading allies, and analysts predict that this trend will persist in 2023 due to the continuous rise in bilateral trade.
According to John McLean, chair of the Institute of Directors (IoD) London, the flourishing trade between the UK and China exemplifies the robust and enduring trade bond between the two nations, as he stated in a recent written interview with Xinhua.
McLean highlighted that the growth in service exports underscores the UK’s proficiency in financial and insurance sectors and demonstrates the increasing prospects that are available in China.
As China is one of the UK’s principal export destinations, McLean pointed out that the more goods exported, the more jobs are created, which is advantageous for the nation’s economy.
The Office for National Statistics (ONS) reported earlier this month that UK-China trade in goods experienced a surge in 2022, with China ranking as the UK’s second-largest import partner and the fifth-largest export partner in goods.
He expressed optimism that the increase in travel and people-to-people exchanges will result in the continued growth of overall UK exports to China, and believes that the trade engagement between the two countries will strengthen this year.
Recently, McLean, who also serves as the chair of the UK-China Business Development Center, welcomed a delegation from Ningbo, a coastal city in China. He saw this as an opportunity to enhance business connections between the two nations.
In his speech, McLean acknowledged that the COVID-19 pandemic has had an impact on the UK and China’s relationship for the past three years. However, with the pandemic situation improving, he believes that it is time for the UK to renew its engagement with China and progress their bilateral relationship.
McLean sees great potential in the UK’s expertise in finance, technology, and innovation, as well as Ningbo’s thriving economy and active global involvement. He is confident that the two sides will continue to collaborate and promote cooperation.
Gordon C.K. Cheung, an expert in international relations with a focus on China at Durham University, shares McLean’s confidence in the future of trade ties between the two nations.
Cheung explained to Xinhua in a written interview that one explanation for the rise in UK exports to China could be attributed to the effects of Brexit on the UK’s trade relations with the European Union (EU). He stated that the UK is attempting to boost its exportation of goods and services to China in order to compensate for the decline in trade with the EU.
However, Cheung also noted that despite tensions in the political relationship between the UK and China last year, businesspeople have continued to invest in each other’s economies, as evidenced by the trading data.
Cheung predicted that as China’s economy is projected to grow at a rate of 5.2 percent in 2023, the country’s purchasing power will increase, leading to a potential improvement in trade between the UK and China.
Source: Xinhua
