MONDAY 30th JANUARY 2012
Business in Birmingham set to boom during Chinese "Year of the Dragon"
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Last week’s visit to China by Chancellor George Osborne re-ignited the UK business community’s interest in one of the world’s most influential economies. However, it merely confirmed what inward investment programme Business Birmingham believes – that 2012 will see an unprecedented period of trade growth between the city region and the world's second-largest economy.
Trade links with China were formalised back in 2004 when Birmingham signed a Treaty of Friendship with Guangzhou, brokered by Birmingham City Council, to enhance the two cities’ international links – long before the Chancellor called for the UK to forge stronger links with the East given the state of the Eurozone.
Wouter Schuitemaker, Investment Director at Business Birmingham, comments:
Since 2007, Chinese investment into Birmingham has created more projects, more jobs and generated more investment – an estimated £103 million* – than any other regional city in the UK. Furthermore, two companies from China have already invested some £15 million here in the last two years and created or safeguarded 300 jobs**, which is why I believe the city’s fortunes stand to benefit greatly from developing further business links with this economic powerhouse."
2012 is the ‘Year of the Dragon’ – the most auspicious symbol of the Chinese zodiac – and during this time we will be communicating with investors in China as well as companies seeking closer links with the country. Among the messages we will be sharing about Birmingham, the Black Country and Solihull are their reputations for innovation, enterprise and new-found confidence; all of which are highly regarded in Chinese culture.”
The strength of Birmingham’s relationship with China was clearly demonstrated last summer when Chinese Premier Wen Jiabao flew into Birmingham Airport for his visit to the city’s MG plant (whose parent company is Shanghai based, SAIC Motor) before his audience with the Prime Minister in London.
The fact that this was the only business visit on the Premier’s itinerary was seen as a strong endorsement from the Chinese state and clear indication of the strategic importance of its investment in the region’s engineering and automotive sector – following which Solihull-based Arup signed a Memorandum of Understanding with the China Railway Group, and the University of Birmingham and Hortons’ Estate both announced collaborations with Chinese organisations.
The Birmingham area’s transport links – which include more direct rail connections than any other city in Europe – have also helped it to attract attention from the East; something recognised by Mr Osborne, who highlighted infrastructure projects including the High Speed 2 rail link to Birmingham as reliable investments to Chinese investors.
Wouter Schuitemaker added:
During 2012 the city region will be seizing opportunities such as next month’s China Brands European showcase and our growing business connectivity – demonstrated by Birmingham Airport’s runway extension, which will open up direct routes to China from 2014, and future investments such as HS2 – to forge new alliances as well as nurture those that have already been created. China’s growth may have slowed but I believe that the Chinese economic success story has much further to run.”
* fDi Markets
** Analysis by the Marketing Birmingham Regional Observatory
