China-UK trade is thriving like never before, boosting Hong Kong’s central role

British business finds itself in uncertain times after the Brexit referendum. However, all the evidence shows that if there is one thing it can rely on, it is unwavering Chinese enthusiasm to invest in, and with, British companies. This enthusiasm is reciprocated. And Hong Kong’s role in the UK-China business flow only looks set to grow.

We have never seen higher levels of business engagement between the UK and China. Short-term opportunities presented by the weak pound are obvious. Investment projects which had been put on hold are being pursued with renewed vigour. Chinese tourist numbers into the UK are at record levels.

Whether it is the takeover of Premier League West Bromwich Albion by a Chinese investment group, telecoms giant Huawei’s renewed commitment to invest £1.3 billion (HK$12.3 billion) in the UK or reported Chinese interest in the UK’s gas infrastructure, activity is picking up after a pause in the run-up to the referendum. The speed with which the UK government approved Japan’s SoftBank acquiring ARM Holdings has been noted in China as a clear signal that the UK is still very much open for business.

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China sees the UK as a great source of hi-tech and creative expertise to help it drive its own manufacturing industry up the value chain. Chinese are not generally looking to set up large manufacturing operations in the UK so they are not affected like, say, US corporations, by concerns about the UK’s trading arrangements with the EU after Britain leaves the union.