North of England reaps rewards of China ties

The North of England is reaping the rewards of its ever-stronger ties with China according to a newly released report, as growth in trade, tourism and knowledge exchange outstrip national averages.

The study, dubbed "The China Dividend: Two Years In", was launched at the British embassy in Beijing on Monday by Greater Manchester Mayor Andy Burnham ahead of participating in the World Economic Forum, in Tianjin.

Driven by two years of direct flights between Manchester Airport and Beijing, the solid relationship has seen Chinese companies increase investments in the North of England, furthering a trend sparked by President Xi Jinping's historic visit to Manchester nearly three years ago.

The findings of the study conducted by independent consultancy Steer Davis Gleave, include a 38 percent increase in the number of Chinese visitors to the North since 2016 (the UK average is 30 percent), and a 114 percent surge in Northern students gaining Chinese internships.

The Manchester-Beijing route is growing faster than any other UK-China route that has been in operation for more than 12 months, and export values from Manchester Airport to China grew 41 percent to 1.29 billion pounds ($1.69 billion) in the two years after the direct flight service was launched, while national values fell 30 percent, the report shows.

Speaking at the launch event, Burnham said: "Greater Manchester has an ambition to sit at the heart of a productive, culturally rich and internationally competitive Northern economy.

"Central to our ambition are direct air links, and the China Dividend study demonstrates that good connectivity is not just about getting people and products from A to B, but the wider impacts that they have on so many aspects of peoples' lives at both ends of the route," he said.

Burnham pointed out that all parts of the North are benefitting from the economic, social and cultural connections that have been forged as a result of the region's first ever direct service to the Chinese mainland.

Richard Burn, Her Majesty's Trade Commissioner for China, said:"UK-China bilateral trade links have never been stronger – in 2017 UK-China bilateral trade expanded by 15.1 percent to reach a record 67.5 billion poulds, whilst UK exports of goods and services to China grew by 28.5 percent.

"This report demonstrates the clear benefits of direct UK-China linkages for facilitating flows of trade, investment and people between our two countries," he said.

The China Dividend report has shown that, in the second full year of its operation, the positive impacts associated with the route have become more pronounced and more widespread.

For example, enquiries received from Chinese businesses interested in setting up UK bases in the first year have now been converted in year two, creating hundreds of jobs in key sectors such as life sciences, energy and infrastructure.

Meanwhile, Chinese investors have committed hundreds of millions of pounds into big infrastructure schemes across the North over the past 12 months, including projects in Greater Manchester, Sheffield, Liverpool and Lancashire.

Andrew Cowan, chief executive of Manchester Airport, said: "This is important research because it demonstrates the power of direct connectivity to fast-growing economies like China.While people could always travel to China by transferring at other airports, we were clear in our minds that securing a non-stop service would unlock a wide range of benefits for our city and the wider North."

Zheng Xiyuan, China's consul general in Manchester, said: "Over the past two years since the establishment of the direct flight to Beijing, the North of England has continued to experience rapid growth in trade and communication with China.

"With our ever-closer social, economic, and cultural links, the North of England is well placed to collaborate with China on major strategic opportunities spearheaded by the Belt and Road Initiative. I look forward to seeing a closer China-UK relationship bringing prosperity to the people of both nations," he added.