Remarks by H.E. Ambassador Liu Xiaoming at the Chinese Investor Reception Held by London & Partners: China Offers Opportunities for Greater Openness and Cooperation

Mayor Sadiq Khan,

Deputy Mayors,

Friends from the Business Community,

Ladies and Gentlemen:

Good evening!

It is a real pleasure to join you at the Chinese Investor Reception jointly hosted by the Mayor of London and London & Partners.

I am happy to see so many Chinese entrepreneurs tonight. Apparently, the early spring chill in London has not dampened their enthusiasm to come and do business here in London and Britain.

There could not have been a better time for London to host such an event. China has entered the new era of development, which will create new and unprecedented opportunities for the UK and the world as a whole.

To seize these opportunities, we need to ask:

    • Where do these new opportunities come from?

    • And how do we seize these new opportunities?

In my opinion, these new opportunities come first and foremost with China’s new measures to deepen reform on all fronts.

China is implementing the blueprint outlined at the 19th National Congress of the Communist Party. It is deepening reform on all fronts to modernize the country’s governance system and capabilities.

The annual sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference, known as the “two sessions”, were just concluded yesterday. At the two sessions, China’s Constitution was amended to incorporate the major plans and objectives of China in the new era as outlined at the 19th Party Congress.

Also at the two sessions, the “Report on the Work of the Government” was adopted. In the list of major works for this year, the word “reform” appears nearly a hundred times, which is more than any previous years. This speaks volumes about the Chinese government’s determination and courage to advance reform.

    • China will advance supply-side reform. This aims to invigorate the market and improve the quality and efficiency of economic growth.

    • China will deepen reform in fundamental and key areas including state assets and SOEs, the fiscal, tax and financial sector, medical care and eco-conservation.

    • China will strive to win “three battles”, namely, forestall and defuse major risks, alleviate poverty by focusing on the most needy, and prevent and control pollution.

These measures are not only important for high-quality economic growth in China. They can also create new driving forces for economic growth in the world.

Second, the new opportunities come with China’s new steps to open up further to the world.

In the past five years, China has stayed committed to deepening reform and opening wider to the world. We have moved up 18 places in the world ease of doing business ranking. We have opened up a $144 billion market to foreign investment. We have expanded the scale and improved the structure of outward investment. These are tangible benefits to the world.

In 2017, China invested $124.6 billion overseas. Chinese companies paid over $30 billion in tax and fees to host countries, and created 1.35 million jobs locally. These have greatly boosted the economic growth and the life of the people of the host countries.

Going forward, China will further expand and deepen opening-up by improving the structure, institutions and mechanisms.

China will adopt internationally accepted rules in trade and economy, and provide world-class business environment.

The Belt and Road Initiative will be a priority. China will encourage companies to build up their strength through outbound investment and capacity cooperation. These will expand the global reach of Chinese products and Chinese services, and ensure sound and rational outward investment.

    • These measures will facilitate the free flow of economic factors between China and the world.

    • They will improve the efficiency of resource allocation.

    • They will promote the integration of markets.

    • In short, they are in the interest of building an open world economy.

Third, the new opportunities come with the new phase of the China-UK “Golden Era”.

In recent years, the China-UK “Golden Era” has made steady progress and achieved fruitful results. The Chinese and British economies are increasingly connected by mutually beneficial cooperation.

    • In 2017, China-UK bilateral trade reached nearly $80 billion, with British export to China increasing by 19.4% over the previous year.

    • In the first two months of this year, British export to China maintained the strong momentum, increasing by 28.8% year on year. This has made China one of Britain’s fastest growing export markets.

    • As of the end of 2017, non-financial investment from China to the UK reached $19.14 billion. Britain remained China’s second largest investment destination in the EU.

The coming years will see accelerated development of the China-UK “Golden Era”. At the beginning of this year, Prime Minister May paid a successful visit to China. During the visit, the leaders of our two countries agreed to build a more strategic, practical, global and inclusive bilateral relationship.

On the bilateral level, our two countries will seize the opportunity of the Belt and Road Initiative to expand cooperation and deliver more tangible fruits.

On the global level, our two countries will join hands to facilitate trade liberalization, economic globalization and global economic governance. Together we will work towards an open world economy.

Ladies and gentlemen,

We have new opportunities unveiled right before our eyes. How do we seize and make good use of these opportunities? My suggestions are as follows:

First, we should match our comparative strengths and take our trade and economic cooperation to a new high.

The Belt and Road Initiative and “Made in China 2025” match very well with the UK’s “Global Britain” and “Modern Industrial Strategy”. Our two countries have a solid foundation and high complementarity for cooperation in the areas of trade, infrastructure, equipment manufacturing, hi-tech, new energy and financial services. The potential is huge.

London is a world financial centre. It is home to many world-class universities and research institutions. And it leads the world in such areas as bio-science, big data, information industry and artificial intelligence. I hope London will continue to be the bellwether in China-UK trade and economic cooperation.

This November, China’s first-ever International Import Expo will take place in Shanghai. British companies are most welcome to come and find new growth points for our bilateral trade.

My second suggestion is we should join hands in tapping the third-country markets to enrich our business cooperation.

This year marks the fifth anniversary of the Belt and Road Initiative. In this Initiative, China and the UK are “natural partners”.

London has rich experience in development planning, urban construction and environmental protection. It is a leader in sub-national cooperation and maintains effective partnerships with Beijing and Shanghai.

The Belt and Road Initiative offers excellent platforms for cooperation which I hope companies from both our countries will make full use of. This is important not only in creating more highlights in our bilateral cooperation. It is also important in exploring third-country markets along the Belt and Road routes. Your contribution to the Belt and Road Initiative will be key to making this Initiative a win-win endeavour that benefits all.

My third suggestion is we should enhance communication and exchanges across the board so as to deepen our friendship and mutual trust.

London has rich heritage, advanced cultural and creative industries, and colorful art and tourism resources.

Every year, many Chinese culture and art groups visit London to give performance. I think these are not only artistic feasts for the audience here but also strong boosts to mutual understanding and friendship between the people of our two countries.

Last month, I had the honor to join Mayor Khan again at this year’s Chinese New Year Celebration in Trafalgar Square. It was a grand event. In fact, it was the largest Chinese New Year celebration outside Asia. I was also happy to learn that this year’s Celebration was sponsored by more Chinese companies than previous years.

I always compare Chinese companies in the UK to “stabilizers and propellers” for the China-UK “Golden Era”.

    • I hope Chinese companies will take up their social responsibilities and enhance communication and exchanges with local communities in the UK.

    • By doing so, they could help British companies and public get a complete picture of China’s new development and new changes.

    • They could also help to deliver the fruits of China-UK trade and economic cooperation to the local communities.

Ladies and gentlemen,

Samuel Johnson said, “When a man is tired of London, he is tired of life; for there is in London all that life can afford.”

I am sure that, on this, I and all the Chinese entrepreneurs present tonight have complete agreement.

Indeed, London offers many opportunities and possibilities to the Chinese entrepreneurs. I want to thank London for that.

In particular, I would like to thank the Greater London Authority and London & Partners. Thank you for your persistent efforts to promote China-UK trade and economic cooperation. You have done an outstanding job in helping Chinese companies settle down and prosper in London.

Ladies and gentlemen,

We just had the spring equinox and felt the footsteps of spring drawing near. We are full of expectations for the spring. We have even more expectations for all the wonderful possibilities that London will offer in 2018. I am sure the business communities of our two countries will join hands to greet the vim and vigour of London. Together you will write a new splendid chapter of the China-UK “Golden Era”!

Thank you!