On Thursday 19 January 2017, the House of Commons Library published “China’s domestic politics and foreign policy“, an exploratory analysis of trends – drawing on the views of selected experts – in the domestic politics and foreign policy of the People’s Republic of China.
UK sees record number of foreign investment projects
The Department for International Trade has said that a record number of investments were made by overseas companies in the UK in the year to April 2016. The department recorded 2,213 inward investment projects over the period, up 11% on the previous year, and its data shows the UK is the most popular destination in Europe for foreign firms. The US was the biggest source of funds, backing 570 projects, but Britain was also Europe’s biggest recipient of investment from emerging markets, with 156 projects backed by Chinese firms and 140 boosted by Indian cash. Projects funded from Latin America more than tripled, up 240%, and East European investment increased 131%. Source: BBC NewsBloombergThe Daily TelegraphSky News
Comment from Richard Graham MP, Chair of the All Party Parliamentary China Group:
“The 11% rise of UK inward investment highlights the openness of our economy, but also the importance of both US and China (which includes Hong Kong) to our inward investment: China contributed 156 of the total 2,213 projects in the year ending April 2016 (DIT stats). We should remain open to inward investment.
“It is also good to see highlighted the growth of Indian investment, and in % terms from a low base, South America and Eastern Europe.
“This APPG welcomes Chinese inward investment, and strongly supported the Hinkley Point deal, which is vital to our nuclear capacity and our overall domestically generated energy. There will be other important infrastructure opportunities for Chinese and other overseas investors, and I expect positive announcements on this during the Autumn Statement.”
This is a cross-post from a recent article written for the Times Red Box by Richard Graham MP, MP for Gloucester and Chair of the All Party Parliamentary China Group.
The divisions in British thinking about China have long been there, but are more visible now after our implicit change of government.
On the one side is British real politik: some politicians, businesses, economists and civil servants who see growth via trade and investment as the overriding basis for our relationship. They certainly talk about the rule of law, critical to the safety of our investment, and go through the motions of listening to the Dalai Lama, dissidents, human and animal rights campaigners – but little more. Their bottom line is we need their investment, and our value is in welcoming it without restriction – the most open economy in the West, almost the cheerleader of the Chinese “go global” policy.
Richard Graham MP and the All Party Parliamentary China Group have welcomed the government’s support for the Hinkley Point C power plant to be jointly developed by EDF and the China General Nuclear Power (CGN)-led Chinese consortium.
Chairman of the All Party Group Richard Graham said, “I think it’s absolutely right that the government has decided to go ahead with this project. Hinkley Point C is a key investment in UK infrastructure and energy capacity providing 7% of Britain’s electricity that helps secure our future energy needs. And as the first nuclear power plant here for over 20 years it will grow our skills and ability to lead in carbon free and domestically sourced nuclear energy. It is also quite right that the government has regulations in place about the security of such vital infrastructure.”
Under an agreement between the Chinese consortium and EDF Energy, the CGN-led Chinese consortium holds a one-third stake in the project. Richard Graham added “whilst there will be no Chinese involvement in the day to day operations of the nuclear plant, this investment will give Chinese nuclear companies valuable experience of UK corporate governance and how nuclear energy is regulated in the West. This is good for them, for us and for the future safety of nuclear energy in the world.”
On February 1st, the APPCG held our 2016 annual APPCG Chinese New Year reception in the House of Commons, hosted by Chair of the APPCG, Richard Graham MP.
This year we were delighted to welcome our Guests of Honour, Secretary of State for Business, Innovation and Skills, the Rt. Hon. Sajid Javid MP, alongside H.E. Chinese Ambassador to the UK Liu Xiaoming.
Guests included many businesses working or hoping to work in China, alongside representatives from the Chinese Embassy, the Hong Kong Economic and Trade Office, the Foreign Office, UKTI, and MPs and Peers from all parties.
The Secretary of State and the Chinese Ambassador spoke warmly of the increasing strength in links between UK and China, and the fantastic year which we have seen in UK-China relations, culminating in the State Visit from President Xi Jinping last October. Guests also heard from VisitBritain’s CEO Sally Balcombe and CBBC Chairman Lord Sassoon on the great strides they have been making in further opening UK exports and tourism to China.
A selection of photos from the event can be viewed below, and for any enquiries please contact us.
Richard Graham, MP for Gloucester and Chair of the APPCG, released the followed statement on the disappearance of Hong Kong bookseller Lee Bo:
“News that British passport holder and Hong Kong resident Lee Bo is reported missing last week, following the recent disappearance of four other employees of Mighty Current publishing house in Hong Kong, is of real concern.
I hope that the Hong Kong and mainland authorities will co-operate with our Consulate General to find Mr Lee and ensure the safety of British citizens in Hong Kong.
I support the Foreign Secretary’s call for any charges against British residents in Hong Kong to be heard in Hong Kong.
I will raise this at lunch with Chinese Ambassador Liu Xiaoming on Monday.
An APPCG delegation to Hong Kong at the end of January will also raise both Mr Lee’s case and the wider issues of treatment of residents, freedom of press and the rule of law during their visit.
Meanwhile I hope Mr Lee returns home safely soon.”
Richard Graham MP
Chair of the All Party Parliamentary China Group
This is a cross-post from October’s issue of “China Report”, in which Richard Graham, MP for Gloucester and APPCG Chair, was interviewed by the Editor.
Richard Graham, the Chairman of the All Party Parliamentary China Group in the United Kingdom, talks to our reporter in his constituency of Gloucester.
ChinaReport: How do you think Xi Jinping’s state visit will impact the Sino-British relationship?
Richard Graham: I think it’s a very important visit, both for President Xi Jinping and for the United Kingdom. I’m personally very much looking forward to welcoming him to Parliament, and to being there with him at the state banquet at Buckingham Palace. I think the big picture is we do now have a strategic partnership with China. This is particularly important at a time when China is exporting capital and growing its global footprint. And the very open nature of the British economy means there are opportunities for China to invest in sectors here which would be difficult perhaps for her to do elsewhere in the West. We need China’s investment, particularly in our infrastructure and energy sectors, and so I really welcome this visit, which I’m sure will see some important agreements signed while Xi Jinping is here in the UK.
The proposal for the new Five-Year Plan (2016-2020) has been approved by the Central Committee of the Communist Party at the Plenum held on 26–29 Oct. The Plan has been focused on realizing the objective of ‘comprehensively constructing a moderately prosperous society by the year 2020’. Innovation is put in a central position in national development. ‘…let innovation penetrate into all Party and state work, and let innovation become common practice in all of society.’ stated the Communiqué of the Plenum. China will also persist in ‘green development’ by reducing resource use and protecting the environment. All environmental protection agencies under provincial levels will conduct vertical management for air, water and soil protection. To achieve national development goals, the Central Committee has pledged to put forward the anti-corruption drive, establish systems and mechanisms so people don’t dare to be corrupt, cannot be corrupt and don’t want to be corrupt.
This is a cross-post from the website of Richard Graham, MP for Gloucester and APPCG Chair, and was also distributed in the Tuesday 20 October 2015 Times Red Box.
As part of the government’s new strategic partnership with China, this week Xi Jinping becomes the first Chinese President to address parliamentarians in the House of Lords. There will be many keen to criticise a relationship where the two countries have such different values. But success with China often comes against the odds.