Research and analysis

China: Visit of Martin Donnelly

Published 6 November 2014

This research and analysis was withdrawn on 1 August 2016

This publication was archived on 1 August 2016

This article is no longer current. Please refer to Overseas Business Risk - China

This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk - China

Summary

BIS Permanent Secretary Martin Donnelly promotes HMG objectives including international trade, bilateral trade and investment and science and innovation. Strong appreciation of UK’s continued policy of openness to Chinese investment and enthusiasm for collaboration on science and innovation from academics, government and industry.

Detail

Over three days in Beijing and Guangzhou Martin Donnelly met with a wide range of contacts, including business leaders, government and think tank officials, and visited Huawei’s new research and development lab.

Donnelly gave a well received speech at Tsinghua University on ‘positive neutrality and trust’, which led to a wide-ranging discussion with officials on the policy role of the civil service and the importance of ethics, and had a media interview with the widely read China Business News

International Trade

Dr Zhao Hong at the Ministry of Commerce (MOFCOM) was positive about the UK – China relationship and the 2014 Economic and Financial Dialogue (EFD) and Joint

Economic and Trade Commission (JETC).

Guangdong’s Vice Governor Zhao Yufang welcomed the growing cooperation with the UK on the business environment and a potential free trade zone in the province. High level representatives from Guangdong’s economic planning departments the Development and Reform Commission and the Department of Commerce also attended and emphasised that they have the green light to press ahead.

Exports and Investment

The visit continued the UK’s productive relationship with Huawei. Donnelly met Mr Qu Wenchu, Senior Vice President of Huawei Technologies and stressed the UK’s ongoing strategic commitment to Huawei and encouraged them to build on their research centres in Bristol and Surrey, highlighting the key services we can offer and the vital role the UK can continue to play in increasing Huawei’s global outreach.

Donnelly also supported UK companies’ opportunities in airport infrastructure, equipment and advanced manufacturing with calls on the Guangdong Airport Management Authority and a testing centre for child safety seats which uses UK testing equipment.

Innovation and Research Cooperation

A clear appetite from the Chinese for closer collaboration, with the contacts we met at the Chinese Academy of Engineering (CAE) impressed by the industrial strategy and the UK’s approach. The new Newton Fund collaboration between the CAE and Royal Academy of Engineering (RAEng) was welcomed by both sides, with a fruitful discussion on how to develop the relationship further. The CAE is keen to work with the RAEng to provide a think tank function on emerging technologies to both Governments, spotting opportunities for collaboration.

The visit showcased UK universities’ research collaboration in the energy and health fields. In energy, collaboration with China Southern Power Grid will lead to a Memorandum of Understanding with the University of Birmingham and Newton Fund projects. In health, the University of Birmingham is collaborating with China’s largest maternity hospital, the Guangzhou Women and Children’s Medical Centre. The visit demonstrated the UK’s commitment to both this collaboration - which is awaiting approval for further funding from local government - and to further collaboration with other interested UK universities.

Donnelly also met with Vice Minister Zhang Junkuo of the State Council’s Development and Research Centre, a think-tank reporting directly to Premier Li Keqiang.

Donnelly reiterated our commitment to a new UK-China Joint Reform and Innovation Forum, agreed during the Prime Minister’s Summit in June. He also confirmed Chatham House as the UK’s preferred partner with the aim of holding the first Forum in 2015.

Business Environment

Donnelly met with UK architecture companies in Guangzhou. These companies have been among the most successful UK companies in South China, defining the skyline in cities like Guangzhou, but have seen a significant slowdown in the last few years. Government relations are increasingly important and project tenders are being split into several stages so that UK companies cannot guarantee quality through to the end product.

Comment

A busy and varied visit covering a range of UK interests. The messaging around the UK’s policy of openness, including its long term commitment to this policy, and welcoming of Chinese investment were particularly well received. Science and Innovation calls highlighted increased enthusiasm for bilateral collaboration in this field, including - but not only - the Newton Fund

Disclaimer

The purpose of the FCO Country Update(s) for Business (”the Report”) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.