As Rachel Reeves, flies to Beijing , she will have plenty of support from those who claim that the UK needs China for its economic wellbeing. The country ‘needs more engagement with China’, said Business Secretary Jonathan Reynolds in October last year at the International Investment Summit put on soon after Labour’s election victory.
The facts, however, say otherwise.
For a start, China is not that an important economic partner for the UK in terms of trade or foreign direct investment (FDI).
The People’s Republic is only the UK’s fifth biggest trade partner, accounting for 5.1 per cent of trade. Ireland alone received £24 billion more of British exports than China in 2023.
Despite the fanfare (or worry, depending on your position) of Chinese investment in British infrastructure, from Heathrow Airport to Northumbrian Water, the amount held is actually relatively small. Take FDI stock, or the amount of inward investment made into the UK by another country over time. As of 2022, China’s FDI
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