CCCUK chairman calls for Brexit certainty

The Chairman of the China Chamber of Commerce in the United Kingdom has called for British authorities to reach a Brexit deal as soon as possible, so as to reduce any negative impact of uncertainty on Chinese companies operating in the UK.

Ahead of the 2nd China-UK Economic and Trade Forum in London, Fang Wenjian, Chairman of the chamber, which is also known as CCCUK, and General Manager of Bank of China London Branch, said Chinese businesses in the UK are also actively seeking solutions to address challenges that arise from Brexit.

"It is hoped that Britain can deal with the EU as smoothly as possible during the negotiation process and transitional period, and at the same time continue to provide policy support to maintain the openness and inclusiveness of the world-class business environment of London," Fang said. "This will reduce the impact of uncertainties on the UK's economy, and can benefit Chinese enterprises in the UK."

Established in 2001, with more than 200 corporate members, the CCCUK has grown into a prominent business body that plays a pivotal role in connecting and communicating between Chinese businesses and UK authorities.

The UK has become the second-largest investment destination for Chinese companies in Europe. In 2018, the average revenue growth of the 750 largest UK-based Chinese-owned companies increased by 11.6 percent, with employees totaling 80,000 and with a combined turnover of 68 billion pounds ($86 billion).

In addition, Chinese companies are showing new trends with their investments in the UK.

"Types of Chinese investments are more diversified than before, and more and more Chinese private enterprises have increased their investments," Fang said.

The CCCUK is making continuous efforts to help dovetail the China-proposed Belt and Road Initiative with the UK's future development plan, especially in the financial and banking sector, in which the UK has leading advantages.

"The finance industry and manufacturing industry used to dominate the market in the early stage. Now it has gradually extended to industries including communication, energy, infrastructure, and technology," Fang said.

"Chinese-owned companies in the UK commonly regard the UK as a bridgehead, from which they can expand their business model to Europe," he said. "But Brexit can change it. That's why a considerable number of enterprises are still adopting a wait-and-see approach, during which the cost burden is increasing," he added.

Amid this, the chamber will help UK-based Chinese companies to predict and analyze the possible risks and try to reduce business uncertainty.

"Many consultation seminars have been held, with local well-known law firms and consulting companies hired and invited, to provide Chinese companies with the latest legal policy interpretations and assist them to optimize their business plans," Fang said.

In addition to helping Chinese companies, the chamber also facilitates British businesses seeking to invest and expand in China, by promoting mutual understanding, communication, and business cooperation.

Fang highlights the financial industry as an example. As of 2017, foreign banks only accounted for 1.3 percent of China's banking assets, while in the UK it is 50 percent. "This means that the Chinese market has huge potential," Fang said.

With a theme of openness, cooperation and mutual benefit, the 2nd China-UK Economic and Trade Forum also celebrates the 70th anniversary of the founding of the People's Republic of China.