China to guide companies on investing in UK
THE CHINESE government is promoting a guide to investing in the UK, a move lauded by cabinet minister Oliver Letwin who was at the launch of the guide in Beijing.
The Asian country’s National Development and Reform Commission revealed the guide yesterday, as part of a wider push to get Chinese companies to invest abroad.
Letwin said: “The UK is consistently ranked as Europe’s top recipient of foreign direct investment, so it is no surprise that the UK has also emerged as the most popular European destination for Chinese overseas investment. The UK government, from the Prime Minister down, has made clear that we are determined to retain this title.”
The move comes after major overtures made to the Chinese government from the UK, with visits by Prime Minister David Cameron and chancellor George Osborne last year leading to major agreements on investment in UK nuclear power, as well as the start of direct renminbi-sterling trading.
The British government says the suggestions are aimed primarily at firms that are yet to invest in European markets, and 5,000 copies of the guide will be printed.
Despite recent fears that the Chinese economy is beginning to slow down, or become threatened by a shaky financial sector, Ashmore’s Jan Dehn remains bullish about the country’s potential: “China has an abundance of means to manage its business cycle: the country’s debt stock is low, its savings rate is high, its banking system leverage is modest.”
He added: “Most importantly, China’s reforms today mean that China will be better prepared for the world of tomorrow than perhaps any other country”.