China sees bright future with UK

China Daily: There have been some media reports of the British government's intention to set up a new investment review body to see if foreign investment imposes threats to the UK's national security. Are you concerned about this?

Ambassador: I have taken notice of recent reports in the media about the possible establishment of an"investment review body". But so far the British government has made no official announcement.

China has no objection to Britain's regular project, environment and security evaluation on business acquisitions. But we are opposed to any discriminative measures under any excuses against Chinese investors. We hope the British side will have enough confidence to steer clear of protectionist measures rather than looking at China's investment through"cold war tainted spectacles".

Thanks to joint efforts, China is now the UK's second-largest trading partner outside Europe while Britain is the biggest destination for Chinese investment in Europe. This has not come easily. China is committed to economic globalization, and trade and investment liberalization. We oppose protectionism and will continue to open up wider to the world. We hope the British side will not discriminate against foreign investment, will stay transparent in making relevant policies, will fully recognize and protect the legitimate interests of foreign investors including those from China, and will continue to ensure an open environment and a level playing ground for business.

China will continue to follow closely any adjustment made to Britain's foreign investment policy, so as to make clear where we stand and advise Chinese investors duly and in time. In the meantime, we will continue to encourage Chinese companies that are ready and able to expand their international operations by investing overseas, including coming to the UK, to follow market rules and international practice and to seek in-depth cooperation and win-win results with their global partners.

China Daily: Some British politicians express concern over China's investment in the UK. What's your take?

Ambassador: Britain is one of the world's most liberal and open-minded nations in trade and investment. But recently, from the British media and some politicians, we hear worries about "China's appetite to buy out Britain", claims that "Chinese investment threatens the UK's national security", and demands for "protection against investment from China." I also noted that the mainstream view of the British business community is not in support of this but rather believes this is a step backward from free trade and will do no good to Britain's economy. I think the arguments of the so-called"Chinese investment threats" are groundless and harmful.

First, Chinese investment in the UK is open and transparent. It will pose no threat to the UK's national security. Chinese investment in Britain mainly focuses on civil and livelihood related areas. In some key infrastructure projects such as communication and nuclear plants, Chinese investors' strict adherence to British laws and regulations in environment, health and security, their efforts to fulfill corporate social responsibility, and their contribution to creating jobs, have been widely recognized.

People who know little about Chinese companies operating internationally often point to their "State-owned" background as potential security risks. In fact, many State-owned enterprises in China are listed companies. They are no different in operation standards from those European or US multinationals and their business performances are completely open and transparent to the public. Moreover, more and more Chinese investors coming to the UK are private businesses. Huawei, Geely, BYD, 4PX and Powerlink are all good examples of private Chinese companies investing in the UK.

Second, Britain needs to be open-mined, inclusive and confident when it comes to foreign investment. Britain is a country with a territory of 240,000 square kilometers and a population of 65 million people. But this country's long standing, huge influence in international politics, economy, science and technology, culture, etc, remain globally visible to this day. A key to Britain's continued success is its open and inclusive business attitude.

One case in point is the City, the "square mile" renowned not only as the heart of London and the British economy but also a financial center of the world. This could not have been possible without the City's open, liberal and inclusive policies and environment. The UK on its way to building a"Global Britain" should continue to live up to such spirit. The UK's sound inspection and monitoring system for foreign acquisitions, underpinned by the UK Company Law, the Financial Services and Markets Act 2000 and other laws, should be a source of confidence.