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China sees bright future with UK

China Daily UK | Updated: 2017-09-01 18:21

China Daily: What are the benefits expected from Chinese investment?

Ambassador: Chinese companies not only look for profits for themselves, they also look for win-win results so that business can last. They want to see what they can do to contribute to Britain's economic and social development. Let me list three major contributions by Chinese investors.

First, Chinese investors help create a large number of jobs and tax revenue for the UK. In the case of the Hinkley Point C nuclear power projects, partly invested by Chinese company CGN, this is expected to create 26,000 jobs. Another joint venture with China National Petroleum Corporation has, since its establishment in 2011, paid 8.55 billion pounds in tax to the British government and created more than 5,000 jobs locally.

Second, Chinese investment help boost UK's green and low carbon development. It is estimated that upon completion, the Hinkley Point nuclear plant will help reduce nine million tons of carbon dioxide annually. The 250 million pound auto plant invested by Geely in Coventry will put zero-emission cabs on the street by 2018.

Last but not least, increasing investment by Chinese businesses represents a vote of confidence for the UK's future. This will contribute to the long-term prosperity and stability of the UK.

China Daily: How would you persuade British politicians and officials that they do not have to fear China's investment?

Ambassador: I suggest the British side think about two points carefully when it comes to Chinese investment.

First, the rapid growth of Chinese investment in the UK is not a one-way street but a mutual choice by both countries. By matching China's capital and development model with British technology, creativity and experience, Chinese investment in the UK helps put the respective strengths of the two countries together.

Second, the rapid growth of Chinese investment in the UK is not led by the visible hand of the government, but by the invisible hand of the market. Chinese companies are market entities responsible for their own gains and losses. They are here because they see economic opportunities in Britain and are optimistic about the prospects of win-win cooperation.

China Daily: Is it easy for British businesses to invest in China's infrastructure, public services and other sectors?

Ambassador: I think with regard to the business environment in China, data speaks loudest. Since 1993, China has been leading the developing world in terms of the scale of foreign investment inflow and has been one of the top three in the world since 2008. In 2016 when global cross-border investment was decreasing, foreign investment in China increased by 4.2 percent, with actual investment from the US and 28 EU nations grew by 52.6 percent and 41.3 percent respectively.

The Chinese government has been committed to opening-up as a fundamental policy. Tremendous efforts have been made to ensure a level playing ground. Foreign companies are given national treatment and the business environment for foreign investors has kept improving.

Since early this year, China rolled out a series of policy measures to further improve the business environment.

In January, the State Council issued the Notice on Several Measures for Opening Wider to the Outside World and Making Active Use of Foreign Investment. In April, seven pilot free trade zones were established in Liaoning and other provinces, increasing the total number of free trade zones in China to eleven and putting in place a balanced and comprehensive opening-up network covering China's Eastern, Middle and Western region. In June, the State Council issued the Notice on the Special Management Measures for the Market Access for Foreign Investment in Pilot Free Trade Zones, abolishing ten regulatory items and 27 restrictions. On 28 July, the Foreign Investment Catalogue officially came into effect, abolishing a further 30 restrictions on foreign investment and lowering the threshold for access to China' financial, services, manufacturing, mining and some other sectors. In August, the State Council issued a notice on measures to facilitate foreign investment, adding 22 measures to make foreign investment environment in China more rule-based and aligned with international practice.

The UK is home to many globally prestigious enterprises that are particularly reputed for their strengths in transportation, telecommunication and energy related infrastructure building. Some of these enterprises have investments in China with years of operation experience and remarkable achievements. China welcomes cooperation with Britain in infrastructure investment. We look forward to more British companies joining in the building of China's infrastructure and public services system.

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