Sino-British economic cooperation has 'solid foundation and strong resilience', and partnership can be 'further expanded'

At the beginning of the 1950s, when Western countries imposed embargoes on trade with China, a group of visionary British businesspeople overcame many obstacles to make an icebreaking trip to China.

The 1953 Icebreaker Mission paved the way for a trade trip, with 48 businessmen from British companies visiting China a year later, despite trade barriers during the Cold War.

But the early icebreakers did not stop there. Upholding the motto of "Equality and Mutual Benefit", they have continued to promote understanding between the two peoples through bilateral trade, which grew from only $300 million in 1972 when China and the United Kingdom established ambassadorial diplomatic relations, to a whopping $112.7 billion last year.

The year 2022 marks the 50th anniversary of the establishment of ambassadorial diplomatic relations between China and the UK. The past 50 years have seen fruitful economic cooperation between the two countries, which has brought tangible benefits to the two peoples.

In the four quarters to the end of the first quarter of this year, China was the UK's third-largest trading partner, accounting for 6.9 percent of total UK trade, according to the UK's Department for International Trade.

China maintained its position as the UK's largest supplier of imports throughout the past eight quarters, and bilateral accumulated investment has reached $50 billion.

Stephen Perry, chairman of the 48 Group Club founded by his late father Jack Perry with the other businesspeople on that initial trip, said the icebreaking spirit is still needed for British business communities to "create a clearer impression of the facts and position of China in the world".

"'Global Britain' cannot work without a good, positive relationship with China," Perry said.

In January, President Xi Jinping sent a congratulatory message to the "Icebreakers" at their 2022 Chinese New Year Online Celebration hosted by the 48 Group Club, and supported by the China Chamber of Commerce in the UK, and the China-Britain Business Council.

Xi expressed his hope that farsighted people from China and Britain's industrial and business communities can adhere to the "ice-breaking spirit" to bolster win-win cooperation in order to give fresh significance to bilateral ties and deliver more benefits to the two countries and their peoples.

Sino-UK relations enjoyed a "golden era" following Xi's visit to Britain in 2015, and Fang Wenjian, chairman of the China Chamber of Commerce in the UK, was one of the many Chinese businesspeople to experience that "golden era".

"Despite the impact brought by COVID-19, there is a strong momentum for Chinese businesses' investment in Britain in the past decade," said Fang in an interview last year. Fang came to the UK in 2004 and became the general manager of the Bank of China London Branch in 2011.

"Communication with local businesses, making local friends, and letting people know more about our Chinese companies are very important," he said.

More than 800 Chinese companies are operating in the UK, employing more than 60,000 local people, and contributing total revenues of 63 billion to Britain's economy in 2020, according to a report by Grant Thornton UK in collaboration with the chamber and China Daily UK.

Chinese companies have also played a key role in addressing the COVID-19 crisis in the United Kingdom. Between September 2020 and June 2021, more than three-quarters of UK government contracts for rapid antigen tests involved Chinese suppliers or manufacturers, according to UK nonprofit The Citizens.

"Since 2022, the UK has faced serious challenges, such as inflation, energy crisis, and labor shortages," Fang said. "Nevertheless, Chinese enterprises have maintained confidence in the long-term development prospects of the UK market and continue to seek opportunities for development amid challenging times."

Zheng Zeguang, China's ambassador to the UK, has pointed out that the two countries' economic cooperation has a solid foundation and strong resilience. In addition to a healthy trade in goods, financial cooperation remained close, he wrote in March in an article in the International Business Daily.

In 2017, the first direct freight train from Yiwu to London linked the UK and China. It crossed the deserts, fields, and mountains in Eurasia and ducked under the English Channel on its epic 12,000-kilometer journey that took 18 days.

In 2019, the long-awaited Shanghai-London Stock Connect was launched, which allowed global investors to benefit from China's growth through London, while London Stock Exchange-listed companies could access Chinese investors directly.

Two years later, the scope of the stock connect program was expanded to include bourses in Switzerland and Germany.

Also in 2021, the offshore renminbi clearing volume in London exceeded 60 trillion yuan, and the central banks of the two countries signed an agreement to renew the existing currency swap line for a further five-year period, with the total value standing at 350 billion yuan.

"The economies of the two countries are highly complementary. China has stable and consistent policies and plans, a huge market, and strong innovation and manufacturing capabilities," Zheng said, adding that the British economy is in the post-industrial stage, with established strength in areas of financial services, and science and technology.

Over the years, UK companies have been going to China and establishing branches and partnerships to tap into the huge domestic market. Last November, a total of 93 major UK companies participated in the fourth China International Import Expo, securing intended deals totaling $1.5 billion.

"The two countries can … expand partnership in new areas, including health care, green finance, new energy vehicles, the digital economy, and creative industries, as well as explore ways to work together in third markets," Zheng said.

"At the new historical starting point, China will open its market wider to the world, which will create new opportunities for cooperation with all the countries, including the UK."