Report on the Development ofChinese Enterprises in the UK
$POUFOUT $IBJSNBOT.FTTBHF &YFDVUJWF4VNNBSZ $IBQUFS-BOETDBQFPG$IJOFTF$PNQBOJFTJOUIF6, %FNPHSBQIJD)JHIMJHIUTPG$PNQBOJFT4VSWFZFE1FPQMFBOE(PWFSOBODF'JOBODJBM1FSGPSNBODFPG$IJOFTF$PNQBOJFTJOUIF6,7JFXTPOUIF6,T#VTJOFTT&OWJSPONFOU $IBQUFS)JHI2VBMJUZ%FWFMPQNFOU $IBQUFS.VUVBMMZ#FOFDJBM$PMMBCPSBUJPO $IBQUFS"QQFOEJY'VMM4VSWFZ2VFTUJPOTBOE3FTQPOTFT Chairman’sMessage relationship between China and the UK. In March2023, the UK government’s Integrated Review Refresh2023(2)şŢŅşŅŦýùŮŅýĽēÖēýóŅĽŦŮŢųóŮğƋýĵƒƌğŮě ěğĽÖŮŅòųğĵù òýŮŮýŢ óŅŅşýŢÖŮğŅĽ ÖĽù ųĽùýŢŦŮÖĽùğĽē òýŮƌýýĽŮěý ŮƌŅ óŅųĽŮŢğýŦ ğĽ ĵğĽý ƌğŮě Ůěý T灆Ŧ óŅŢý ĽÖŮğŅĽÖĵğĽŮýŢýŦŮŦ澳ěý ŢýóýĽŮ ěğēě瀲ĵýƋýĵ ĻýýŮğĽēŦ òýŮƌýýĽ ŅųŢŮƌŅóŅųĽŮŢğýŦ瀲ŦųóěÖŦŮěýĽ ŢğŮğŦě;ŅŢýğēĽ ýóŢýŮÖLjRÖĻýŦ ĵýƋýŢĵƒ灆ŦƋğŦğŮŮŅ ěğĽÖğĽųēųŦŮ滷滵滷滸瀲ěÖƋýÖĵŦŅěýĵşýùŦŮŢýĽēŮěýĽŮěýŦýŮğýŦ澳DĽÖĽŅƽóğÖĵŦşýýóěŮěğŦşŢğĵ ÖŮ \ÖĽŦğŅĽ AŅųŦý ğĽ Ůěý ğŮƒ ŅĒ VŅĽùŅĽ澴RÖĻýŦ ĵýƋýŢĵƒ ŅųŮĵğĽýù Ůěý T ēŅƋýŢĽĻýĽŮ灓Ŧ şŅŦğŮğŅĽ ŅĽ ěğĽÖ澵灃ŦŮÖòĵý澴şŢŅŦşýŢŅųŦÖĽùşýÖóýĒųĵ ěğĽÖğŦēŅŅùĒŅŢ ŢğŮÖğĽ ÖĽù Ůěý ƌŅŢĵù澳灄 ěğŦ ýşŮýĻòýŢ澴 ěğĽýŦý~ŢýĻğýŢVğğÖĽēÖĽù ŢğŮğŦě~ŢğĻý\ğĽğŦŮýŢ ųĽÖıÖĵŦŅĻýŮ ÖŮ Ůěý <滷滵 ųĻĻğŮ ŮŅ ýĽěÖĽóý óŅŅşýŢÖŮğŅĽ ÖĽùboost collaboration in trade, investment, green tech andŦųŦŮÖğĽÖòĵýùýƋýĵŅşĻýĽŮ澳 Ongoing economic and geopolitical challenges havemeant that 2023 has been a challenging year for Chinaand the UK. Despite these challenges, the potential foróŅĵĵÖòŅŢÖŮğŅĽ ŢýĻÖğĽŦ澳ěğŦ ƒýÖŢ灆Ŧ ŢýşŅDž ùýĻŅĽŦŮŢÖŮýŦŮěýòýĽýǁŮŦŅĒĒŅŦŮýŢğĽēÖóĵŅŦýŢÖĽùĻųŮųÖĵĵƒòýĽýǁóğÖĵrelationshipbetween the UK and China to createěğēě瀲šųÖĵğŮƒùýƋýĵŅşĻýĽŮŅşşŅDžųĽğŮğýŦ澳 ěğĽÖ ÖĽù Ůěý T ěÖƋý òýýĽ ÖƺýóŮýù òƒ Ůěý ŦĵŅƌýŦŮēĵŅòÖĵýóŅĽŅĻğóēŢŅƌŮěŮěğŦƒýÖŢ瀀ÖşÖDžĒŢŅĻCOVID-impacted2020)since the aftermath of the滷滵滵滽瀲滷滵滵滾ǁĽÖĽóğÖĵóŢğŦğŦ(1). High interest rates will likelyóŅĽŮğĽųýŮŅğĻşÖóŮĒųŮųŢýēŢŅƌŮěÖĽùěÖƋýŦğēĽğǁóÖĽŮĵƒescalated the operational costs of Chinese companiesŅşýŢÖŮğĽēğĽŮěýT澳ěýT灆ŦóěÖĵĵýĽēğĽēĵÖòŅųŢĻÖŢıýŮěÖŦÖĵŦŅğĽóŢýÖŦýùŮěýùğƽóųĵŮƒŅĒŢýóŢųğŮğĽēĵŅóÖĵŮÖĵýĽŮ澳Ļğù ŮěýŦý ųĽşŢýóýùýĽŮýù óěÖĵĵýĽēýŦ澴 óŅĵĵÖòŅŢÖŮğŅĽòýŮƌýýĽ ŅųŢ ŮƌŅ óŅųĽŮŢğýŦ ŢýĻÖğĽŦ óŢųóğÖĵ澳 ªěğĵŦŮ ƌýěÖƋýùğƺýŢýĽóýŦğĽŅşğĽğŅĽŦğĽŦŅĻýÖŢýÖŦ澴ƌýĻųŦŮŦýýıŮŅýĽēÖēýğĽùğÖĵŅēųýŮěÖŮƌŅųĵùòýĽýǁŮòŅŮěŦğùýŦ澳 DĽŮěğŦóŅĽŮýƑŮ澴DşŢýŦýĽŮŅųŢ滷滵滷滸ýşŅDžŅĽŮěý%ýƋýĵ-opment of Chinese Enterprises in the UK. I am pleased tosee that despite challenges, most Chinese enterprisesŢýĻÖğĽ ŢýŦğĵğýĽŮ ğĽ Ůěý T灆Ŧ òųŦğĽýŦŦ ýĽƋğŢŅĽĻýĽŮ ÖĽùÖŢýŢýÖùƒŮŅğĽóŢýÖŦýŮěýğŢýóŅĽŅĻğóÖĽùŦŅóğÖĵóŅĽŮŢğòų瀲 ěýŢýěÖƋýòýýĽýĽóŅųŢÖēğĽēùýƋýĵŅşĻýĽŮŦğĽgovern-ĻýĽŮşŅĵğóƒŅĽòųğĵùğĽēÖşŢÖēĻÖŮğóÖĽùóŅĽŦŮŢųóŮğƋý ŮğŅĽŦŮŅŮěýT澳;ŅŢýƑÖĻşĵý澴ĻŅŢýŮěÖĽ滽滵為ŅĒýĽŮýŢ-şŢğŦýŦ Ŧųdžýƒýù ŢýşŅDžýù ŦŮÖòĵý ŅŢ ğĽóŢýÖŦýù ŢýƋýĽųýÖĽùşŢŅǁŮòýĒŅŢýŮÖƑğĽŮěý滷滵滷滷瀲滷滵滷滸ǁĽÖĽóğÖĵƒýÖŢ澳DĽĵğĽý ƌğŮě ŮěýğŢ ĵŅĽē瀲ŮýŢĻ ǁĽÖĽóğÖĵ óŅĻĻğŮĻýĽŮ ŮŅ ŮěýT ÖòŅųŮ ŮƌŅ瀲ŮěğŢùŦ ŅĒ Ŧųdžýƒýù óŅĻşÖĽğýŦ ÖĵŦŅŢýğĽƋýŦŮýùŮěýğŢşŢŅǁŮŦğĽŮěýT澳ěýĽųĻòýŢŅĒóŅĻ-şÖĽğýŦ ŮěÖŮ ğĽóŢýÖŦýù ŮěýğŢ ýĻşĵŅƒýý óŅųĽŮ ěÖŦ ÖĵŦŅŢğŦýĽ 滼為 ŅƋýŢ Ůěý şÖŦŮ ĒŅųŢ ƒýÖŢŦ澴 ùýĻŅĽŦŮŢÖŮğĽē ÖĽğĽóŢýÖŦýùŮŢýĽùŮŅƌÖŢùŦĵŅóÖĵěğŢğĽēÖĽùŢýóŢųğŮĻýĽŮğĽthe UK. This year also saw an increased appetite forğĽƋýŦŮĻýĽŮ ŅųŮŦğùý ŅĒ VŅĽùŅĽ ÖĽù Ůěý ŅųŮě )ÖŦŮ澴ŦųşşŅDžğĽē ěğĽýŦýóŅĻşÖĽğýŦ灓òŢŅÖùýŢŦŅóğÖĵóŅĽŮŢğòų-ŮğŅĽŮŅŮěýƌğùýŢTýóŅŦƒŦŮýĻÖĽùųĽùýŢŦóŅŢğĽēŮěýğŢĵŅĽē瀲ŮýŢĻóŅĻĻğŮĻýĽŮŮŅŦųşşŅDžğĽēýĻşĵŅƒĻýĽŮÖĽùùŢğƋğĽēēŢŅƌŮěÖóŢŅŦŦŮěýT灓ŦŢýēğŅĽŦ澳 ĵýŮóěĵýƒ %ýóĵÖŢÖŮğŅĽ澳ěğŦ ğŦ ĭųŦŮ ŅĽý ýƑÖĻşĵý ŅĒ ěŅƌT瀲 ěğĽÖĻųŮųÖĵĵƒòýĽýǁóğÖĵóŅĵĵÖòŅŢÖŮğŅĽóÖĽŦųşşŅDžòŅŮěŅųŢóŅųĽŮŢğýŦğĽĻÖĽÖēğĽēýĻýŢēğĽēŮýóěĽŅĵŅēğýŦ瀲òŅŮěğĽŮýŢĻŦŅĒŢğŦıŦÖĽùŅşşŅDžųĽğŮğýŦ澳 ĵŮěŅųēě ěğĽýŦýýĽŮýŢşŢğŦýŦěÖƋýĒÖóýùóěÖĵĵýĽēýŦÖĽùrisks in the UK, they still have great potential to expandŮěýğŢ òųŦğĽýŦŦýŦ ÖĽù ĻÖıý ĒųDžěýŢ ğĽƋýŦŮĻýĽŮŦ ğĽ ŮěýT澳 ěğĽýŦýýĽŮýŢşŢğŦýŦóÖĽŮěýŢýĒŅŢýóŅĽŮğĽųýŮŅòųğĵùòŢğùēýŦÖĽùşŢŅĻŅŮýÖĻŅŢýóŅĵĵÖòŅŢÖŮğƋýÖĽùųĽùýŢ-standing environment by actively engaging with localŦŮÖıýěŅĵùýŢŦ Ŧųóě ÖŦ ēŅƋýŢĽĻýĽŮŦ澴 òųŦğĽýŦŦýŦ澴 ÖĽùóŅĻĻųĽğŮğýŦ澴 óŅĽŮŢğòųŮğĽē ŮŅ Ůěý ŦěÖŢýù şŢŅŦşýŢğŮƒ ŅĒŅųŢŮƌŅĽÖŮğŅĽŦ澳 DĽ滷滵滷滸澴ŮěýēųğùğĽēşŢğĽóğşĵýŅĒěğēě瀲šųÖĵğŮƒùýƋýĵŅş-ĻýĽŮ ěÖŦ òýóŅĻý ğĽóŢýÖŦğĽēĵƒ ğĻşŅDžÖĽŮ澳 DĽ ĵğĽý ƌğŮěthese goals, Chinese companies also emphasised theiróŅĻĻğŮĻýĽŮ ŮŅ ĻýýŮğĽē ) < ŦŮÖĽùÖŢùŦ澴 ùýƋýĵŅşğĽēğĽŮýĵĵğēýĽŮÖĽùùÖŮÖ瀲ùŢğƋýĽŦŅĵųŮğŅĽŦŮěÖŮòýĽýǁŮóŅĻ-şÖĽğýŦ澴 óųŦŮŅĻýŢŦ ÖĽù óŅĻĻųĽğŮğýŦ òƒ ĵýƋýŢÖēğĽē ŮěýT灓ŦŦŮŢŅĽēóÖşÖòğĵğŮğýŦğĽÖŢýÖŦŦųóěÖŦēŢýýĽǁĽÖĽóý澳 \ųŮųÖĵĵƒòýĽýǁóğÖĵóŅĵĵÖòŅŢÖŮğŅĽğŦÖĒųDžěýŢóŢųóğÖĵÖŢýÖŅĒ òųŦğĽýŦŦ ŦŮŢÖŮýēƒ ĒŅŢ ěğĽýŦý óŅĻşÖĽğýŦ ƌğŮě TŅşýŢÖŮğŅĽŦ澳 ŅĵĵÖòŅŢÖŮğŅĽ ğĽ Ůěý ýùųóÖŮğŅĽ ÖĽù 熀%ǁýĵùŦğŦÖıýƒĒŅóųŦÖŢýÖ澴ƌěğĵýT瀲 ěğĽÖóŅĵĵÖòŅŢÖŮğŅĽğĽthe energy sector is driving innovation and growth toşŢŅƋğùýĒųDžěýŢòýĽýǁŮŦĒŅŢTóŅĽŦųĻýŢŦÖĽùĻÖŢıýŮŦ澳Chinese companies are also in