Yorkshire businesses urged to look to China for trade

EXPORTING to China can be incredibly lucrative; Yorkshire businesses now sell more than £600 million of goods and services every year to the Greater China region, including Hong Kong and Taiwan; an increase of more than 70% in the last ten years.

A range of business sectors, including engineering, textiles, food and beverage, and cosmetics, are just some examples of success stories.

China is home to one fifth of the global population and has the second highest GDP in the world; therefore breaking into the marketplace can open up huge growth opportunities for Yorkshire businesses. However, its economy, society and legislative systems are very different to how we operate in the UK. Added to this, the rate at which these are changing is incredibly fast.

In order to build trade links with this key global marketplace, Yorkshire businesses require good flight connections to set up face-to-face meetings and nourish the trade relationships they aspire to create and enhance.

Matthew Grandage, associate for China Affairs at Chamber International, the international division of West & North Yorkshire Chamber of Commerce, said: “China prefers to do business with trusted friends, and this important fact has many implications for business strategy.

“Yorkshire businesses wanting to find partners, clients or agents in China may need to budget for senior managers to visit China several times before any significant sales are expected to be made.”

Leeds Bradford Airport works closely with Yorkshire businesses to ensure that they can access global marketplaces they need. Through connections offered with KLM via Amsterdam and British Airways via Heathrow T5, there are several key cities in China that businesses can access with ease and convenience from LBA:
· Beijing
· Hong Kong
· Shanghai
· Chengdu

China is an exciting and significant market for the UK, and particularly for Leeds City Region. Leeds City Region Enterprise Partnership (LEP) recently took a delegation to China, including representatives from the region’s local authorities, universities and the private sector, which centred on trade and inward investment opportunities.

The LEP flew from Leeds Bradford Airport to China; some via its Heathrow T5 link with British Airways and others via Amsterdam with KLM. The programme of meetings with large scale Chinese businesses in Shanghai and Hangzhou demonstrated how the Chinese economy is transforming at a phenomenal scale and speed, which presents the Yorkshire region with an array of opportunities which shouldn’t be ignored.

David Shepherd, director of Trade and Investment at the LEP, said: “It is important for our businesses to maximise the opportunity connectivity affords us, and the excellent links from Leeds Bradford Airport to China will enable Leeds City Region businesses to work effectively with China, to capitalise on opportunities which have the scope to generate exceptional business growth.

“The recent delegation, which visited Shanghai (China’s largest city) and Hangzhou (sister city to Leeds since 1988 and home to a vast business base of which 95% are privately owned), demonstrated an openness to international activity which is reinforced by the Chinese government’s ‘One Belt, One Road’ international trade policy. For the LEP, it is increasingly important to develop a targeted and strategic approach to the Chinese market and we feel there are significant opportunities for businesses across the region, owing to the country’s high growth economy, highly mobile population and increasing Chinese middle-class consumers.”

Exports to China from the UK have more than doubled since 2010. In addition, China’s online purchases surpassed the USA in 2013 and are projected to exceed the USA and EU combined by 2018. Therefore, Yorkshire businesses can gain real momentum by entering into this marketplace across any of the key cities.

Matthew says that research into the market plays a huge part in success. Once thorough research has been undertaken, he stresses that rethinking the product and marketing in the light of that market research is crucial. “No matter how your product is viewed elsewhere in the world, don’t assume that you’ll get the same reception in China,” he added.

“China can open up opportunities for exporters, but it is definitely a long game. There is no substitute for good research and preparation. UK companies regularly misconstrue the nature or quality of their business relationships with Chinese partners, and this can lead to disappointment on both sides.

“A big part of my work is helping people reach a good assessment of their relationships and strategy, to see how robust and realistic they are. Having lived and worked in China for about 15 years, I try to help them see what their product or brand will look like to the Chinese market.”

The good onward connectivity options that Leeds Bradford Airport has to link Yorkshire with Beijing, Hong Kong, Shanghai and Chengdu, means that businesses across the Yorkshire region can depart with ease. Delegates coming into Yorkshire from China also benefit from having major cities close by to the airport.

Tony Hallwood, aviation development director for Leeds Bradford Airport, added: “We are bringing Yorkshire businesses closer to their worldwide contacts, including across China, through our major airport hubs and we will be building on our flight frequencies via these important connections over the next few years.

“We’re are very proud of delivering these critical links for Yorkshire, the demand for them has been fantastic and we look forward to introducing more hub connections to widen the choice for business travellers in the near future.”

Testimonial – Stephenson Group, Horsforth