Economy

    UK SMEs see future in nation’s growth pattern

    By Zhang Chunyan (China Daily)
    Updated: 2011-06-03 14:14
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    London - China's development offers great opportunities for UK companies, according to top British trade and investment officials at a forum.

    "China's staggering pace of growth is creating a wealth of opportunities for UK firms," said Stephen Green, the UK minister for Trade & Investment, at the UK-China SME CEO Forum in London on Wednesday.

    The forum is considering how small- and medium-sized enterprises (SMEs) can achieve export success in China.

    "From high-value infrastructure projects to the growth in demand for low-carbon goods and services, UK firms, especially SMEs, are well placed to provide cutting-edge expertise," Green said in his keynote speech.

    He emphasized that UK Trade & Investment (UKTI) is committed to supporting SMEs in key markets such as China.

    Related readings:
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    UK SMEs see future in nation’s growth pattern UK minister drums up trade across China
    UK SMEs see future in nation’s growth pattern China, UK must deepen relations

    UKTI is the government department that helps British companies succeed in the global economy.

    In the UK, more than 99 per cent of the country's 4.8 million businesses are SMEs, yet at present, only 20 per cent are exporters.

    Hosted by UKTI and the China-Britain Business Council (CBBC), the forum held a panel discussion on the commercial engagement of UK SMEs and the implications of China's 12th Five-Year Plan (2011-2015).

    During the period of the plan, China will restructure its economy and boost consumption and demand at home.

    The predicted result will be a surge in Chinese imports. In the next 10 years, the country's cumulative imports are expected to exceed $1.5 trillion. By 2020, China's total retail sales will reach $10 trillion, a size similar to the current market of the eurozone.

    The UK's business elite also shared their thoughts and discussed opportunities related to sustainable cities, high-value opportunities and China's regional cities.

    "In the UK, 99 percent of companies are SMEs and in China, 99 percent of companies in the private sector are SMEs too," said David Brewer, the chairman of the CBBC.

    The CBBC is the leading organization helping UK companies to grow and develop their businesses in China.

    The opportunities for commercial partnerships between Britain and China are immense, Brewer noted, adding that two thirds of CBBC members support SMEs and their strategies in China.

    "We want to hear from SMEs that are serious about exploring China," said Brewer.

    China's Ambassador to the UK, Liu Xiaoming, also noted that British businesses have yet to gain a comprehensive understanding of China's investment climate and its market.

    "More attention needs to be paid to Chinese procedures and the channels foreign businesses must go through to enter the market," Liu added.

    By cooperating with their Chinese partners, SMEs in the UK will better share the opportunities, Liu said.

    China is involved in setting up a special China-European Union fund for SME cooperation.

    The form is also due to be held in Cambridge and other UK cities.

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