This week the Financial Times reported that it expects China’s economy to become the biggest on the globe sometime this year. This is a remarkable achievement when we look back to the bad old days of communism that resulted in 6 million dying in the ‘Great Push’ during the 60s, or the image of millions of peasants in Beijing on only bicycles. Despite this, there are still 100 million Chinese living on less than $2 a day and prosperity is limited to the coastal regions.
Yet despite recent history in China, since Christ was born China has had the world’s biggest economy for 1,700 of those 2,000 years. It has always been a colossal economy and recent history is China is unusual.
Before my political career I spent 17 years as a specialist investing in Asia and China so I am very familiar with its progress. But it was just last weekend that I first visited China as a politician to see what opportunities await the UK.
China is seen by many as a threat to the UK – especially from the point of view jobs being taken by cheap Chinese labour. Yet we are now seeing a trend of on-shoring – the relocation of jobs lost to China a few years ago returning to the UK. Chinese labour is not so cheap anymore and anyone wanting to sell something into the UK will find the transportation costs outweigh any labour savings. Importantly, as the East develops, it looks to the west for culture and western luxury brands such as Channel, Louis Vuitton and the like have been in demand for many years. A Chinese company recently bought the yacht builder Sunseeker, but they will continue to build yachts in the UK because they carry more cache. But we are also seeing more mainstream western brands do well.
This provides an opportunity for us in Wyre Forest. I have already been involved in helping promote Worcestershire brands to the Chinese and help local businesses build links with China. But as a result of this recent trip I will be bringing representatives of the Chinese embassy to Wyre Forest to ensure that our district is promoted by the Chinese embassy to Chinese businesses looking to invest in the UK. Chinese manufacturers want to invest in the UK to make the most of the opportunity here. I want them to invest in Wyre Forest.