Regional Powerhouses herald new era of UK-Chinese trade relations
THE West Midlands is set to enter a golden era of trade relations with China after the Government showcased the region to Chinese trade delegates.
Chinese Commerce Minister Gao Hucheng was in Birmingham for a meeting with Business Secretary Sajid Javid where he was shown the investment potential of the Midlands Engine for Growth, including HS2.
The visit, which saw the signing of several new China-UK trade agreements, was part of the UK-China 12th Joint Economic and Trade Commission (JETC), which was arranged to boost cooperation and commercial understanding between the two countries.
Minister Gao said his country was keen to foster relations not just at the national level but regionally as well and the agreements signed in Birmingham would help to secure new growth.
He said the Chinese economy had proved resilient and was now capable of offering more stable growth.
He also said that the Northern Powerhouse and the Engine for Growth offered important investment opportunities and could lead to a new economic cooperation between the two countries and the various regions.
The UK attracted a third of all Chinese investment into Europe over the past two and the Government is keen to see this continue.
Mr Javid said: “The visit by Chinese Minister of Commerce Gao Hucheng to Birmingham was a great opportunity to showcase the Midlands as an engine for growth and investment. The UK is the leading destination for Chinese businesses bringing economic and jobs benefits not only to the Midlands but to the UK as a whole.”
The Chinese delegation also met with UK Trade and Investment Minister Lord Maude, who escorted his guests around Curzon Eastside, site of the city’s HS2 station and future Enterprise Hub.
Lord Maude said: “The Midlands is home to some of the most innovative and exciting companies and universities in the country, and we are keen to get more investment into the region to boost jobs and growth for the Midlands Engine.”
The Midlands Engine is predicted to be worth £222bn each year to the UK economy and if the region matches the predicted growth rate for the UK over the next 15 years, it could create 300,000 jobs and boost the national economy by £34bn.
Whilst in Birmingham, the Chinese delegation concluded a number of new Memorandums of Understanding and business contracts. They included:
• introducing the House of Fraser and Hamleys department stores into Xuzhou Sanpower Plaza Complex Project in China
• developing the Sino-UK cultural and creative industrial park to enhance cooperation between China and the UK for creative projects
• Nottingham and its sister city of Ningbo in China signing a five-year deal to become the first UK and Chinese authorities to develop closer trade and civic ties. The deal will help Midlands firms to establish trade and export opportunities in China.
Case Study
One company already a strong advocate of UK-Chinese relations is TyTek Industries.
Although based in Cincinnati, the manufacturing group has set up in Ningbo, while its new UK operation is based at the former Sunbeam research and development site in Wolverhampton.
The group, which has celebrated its 15th birthday, is headed by Solihull-born Chris Tyler (pictured).
Mr Tyler, who is President of the group, has worked in industry for almost 50 years – on both sides of the Atlantic. His latest venture has matured into a market leader across the globe.
Its growth is based on the expertise required to manufacture assemblies of different materials, thereby solving problems for engineers across the world.
Mr Tyler, a strong advocate of improved trade with China, said: “We’ve worked hard to see things from our customers’ point of view. Seeing things from their perspective allows us to anticipate, advise and provide timely responses. We always draw on our own deep manufacturing experiences thereby providing a great service and preventing costly mistakes and delays.”
Honoured with the Freedom of the City of London, Mr Tyler was one of the first to recognise the enormous potential of Chinese factories to engineer and manufacture high quality components and products, at prices that could not be matched anywhere in the world.
His huge breadth of experience also allowed him to understand that maintaining the highest quality standards was only possible if there was direct supervision of all manufacturing in China, therefore al of TyTek’s senior personnel are fluent in both English and Mandarin Chinese.
This understanding has assisted his growing customer base. Alongside traditional automotive customers he has diversified the business and also works with small entrepreneurs seeking expertise to manufacture new products to multi-national engineering companies looking for innovative solutions to magnetic assembly issues.
This year TyTek has already showcased product and been a keynote speaker in conferences in Jacksonville, Florida and Abu Dhabi covering subjects from magnetic assembly to medical assistance for first responders.
