Cameron throws down the gauntlet to Midlands business
PRIME Minister David Cameron has challenged West Midlands business to explore opportunities for expanding into China.
The challenge was thrown down on the day he, Chancellor George Osborne, Business Secretary Vince Cable, Energy Secretary Chris Huhne and Education Secretary Michael Gove opened three days of intensive talks between the UK and China in Beijing.
The delegation is the largest ever Government trade mission to China and the visit corresponded with the announcement of a number of key deals between UK businesses and Chinese firms, several of which involved firms in the West Midlands.
Mr Cameron said: “This is a vitally important trade mission. Our message is simple: Britain is now open for business, has a very business-friendly government, and wants to have a much, much stronger relationship with China.
“I’m delighted we’ve got such a wide range of institutions and businesses coming with us. This visit will mark another step to making Britain the successful, open, trading and pro-business country that I want it to be.”
The deals announced saw Birmingham-based Delcam sign a Memorandum of Understanding with First Auto Works worth £500,000 over the next 10 years.
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Elsewhere, energy absorption manufacturer Oleo, based at Exhall, near Coventry, announced a £35,000 contract to supply products to Guangzhou Metro in an agreement signed with Qingdao Si Fang Rolling Stock Research Institute Co Ltd.
Mr Cable added: “Domestic consumption in China is growing, the middle class is expanding, and Chinese companies are looking to internationalise. This brings a huge increase in opportunities for UK firms given that they are globally competitive in services, advanced manufacturing and engineering, ICT, life sciences and creative industries – all areas where Chinese demand is growing significantly.
“Like in any market it pays to do your research, and UK Trade & Investment, which has a network throughout China, can help companies find the opportunities that will help their businesses grow.”
Today (Tuesday) will see an Economic and Financial Dialogue and a UK-China summit. On Wednesday, there will be a Business Summit, and on Thursday Mr Cable will meet regional mayors to look at expanding ties throughout China.
UK goods exports to China rose 44% in the first eight months of 2010, to £4.5bn.
Illustrating the potential of the Chinese market, Airbus has announced the sale to China of more than 100 planes, a deal which will be worth in excess of $5bn to the UK economy.
The Aviation Industry Corporation of China (AVIC) forecasts that China will increase its commercial airfleet by 3,796 planes by the end of 2028. China currently has 166 commercial airports, set to increase to 244 by 2020. The biggest of these airports, Beijing International Airport, was designed by British architects Foster + Partners to be ready in time for the Beijing Olympics.
