The UK must do more to attract Chinese foreign direct investment (FDI) if it is to support business growth and maintain global competitiveness, according to leading audit and advisory firm Blick Rothenberg.
Partner Winnie Cao pointed to fresh data from China’s Ministry of Commerce showing that, by the end of 2024, Britain accounted for just 9 per cent of China’s existing investment in developed economies. This places the UK behind the European Union, the United States and Australia. She said the figures underlined the urgent need for Britain to align its policy and regulatory framework with China’s appetite for long-term investment.
Cao argued that the UK must focus on making its tax system more attractive to global investors, easing barriers in its visa regime, and ensuring its infrastructure is fit for purpose. She suggested that lowering corporation tax and extending the Foreign Income and Gains regime for expats from four to ten years would send a strong signal to international businesses. At the same time, she warned that rising salary thresholds in the visa system risk deterring global companies from setting up in Britain, while unreliable transport infrastructure continues to undermine confidence in the business environment.
Despite these challenges, Cao noted that relations between London and Beijing appear to be improving. The UK has been chosen as Guest Country of Honour at the 25th China International Fair for Investment and Trade (CIFIT) in Xiamen, which takes place from 8 to 11 September. Britain will use the event to showcase its strengths in high technology, healthcare and life sciences, financial and professional services, creative industries and clean energy.
The Government is also stepping up engagement at the highest levels. On 10 September, the new Business Secretary, Peter Kyle, will travel to Beijing for trade talks. His visit will coincide with the China International Fair for Trade in Services (CIFTIS), one of the largest global trade fairs of its kind, where the UK is expected to highlight its world-leading services sector.
Cao said it was time to reshape and transform the UK’s relationship with China into something “meaningful and beneficial” for people and businesses in both countries. Without decisive action on tax, visas and infrastructure, however, Britain risks falling further behind its rivals in the race to secure Chinese investment.
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UK must attract more Chinese investment to support growth