Deloitte: Region must pursue Chinese opportunity
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 By Jon Lovell
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China is a powerhouse that is set to establish itself as the World’s largest economy over the next year or so. It’s the clear frontrunner of the Far East in terms of economic growth, and with ambitious overseas investment strategies, is already starting to make an indelible mark on the UK. When it comes to overseas investors, they often have a blinkered view of what the UK has to offer, focusing their attention on the capital. But London doesn’t necessarily have it in the bag! We are seeing a notable increase in activity in the North West; we have a really strong and compelling proposition for China and that is being increasingly recognised. The region is a hub for many key sectors including advanced manufacturing, real estate, energy, life sciences and TMT. The region also boasts a world-class talent pool thanks to more than 10 universities, including two globally-renowned business schools with an already impressive footprint in China, providing a steady stream of skilled graduates each year. This, together with low operating costs and hugely supportive business networks, means the region’s strengths are aligned perfectly with China’s “going global” priorities. Not only that, Manchester Airport will soon operates the only non-stop direct scheduled service to China outside of London, further strengthening the North West’s international trade links. Our relationship with China is by no means a new one; we have built strong civic, academic and business connections over the last 150 years. But there’s no doubt that we’ve seen a notable upturn in Chinese investment here, especially in real estate, during the last year alone. The most obvious example is BCEG’s joint venture partnership with Manchester Airport Group to deliver the £800m Airport City project. And make no mistake, this is so much more than a real estate deal; it’s evidence that the North West is meeting the demands of China’s expanding markets, providing a platform for an ever-strengthening partnership through which mutual benefits will flow. As well as this inbound investment potential, China also offers a huge array of outbound opportunities to businesses in the North West. Jaguar Land Rover is a prime example of a company that is making a splash in the Chinese market. It has taken full advantage of the country’s increasing demand for automotive manufacturing, resulting in China topping the list of the company’s key global markets after it sold a record number of cars last year. From my point of view, it is particularly interesting to see growing collaboration and knowledge exchange between China and the North West on smart, green cities. Only last week, we welcomed some of China’s leading experts in smart city development including representatives from Wuhan, Qingdao & Xuzhou to showcase our strengths and successes in this area, with return exchanges, supported by the Foreign & Commonwealth Office, scheduled for later in the year. Strengthening our links with China will no-doubt attract new skills and businesses to the region, whilst exposing local firms to diverse outbound opportunities. The Manchester-China Forum, of which Deloitte is a founding member, is an example of how the region is striving to further reinforce its relationship and economic links with China. The Forum’s Investment Portfolio, to be launched formally in a couple of months’ time, provides a detailed snapshot of the key investment opportunities to attract inbound Chinese investment across a multitude of sectors. The UK will continue to be a magnet for foreign investment and as China’s markets continue to expand and become more dominant, there is real potential for our region to increase collaboration with China and to forge a formidable, mutual relationship. With the International Festival for Business currently taking over Liverpool, now is the perfect time for companies in the North West to capitalise on the opportunities presented by China and to showcase their credentials in the heart of the Far East. More articles in
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