"Partner Winnie Cao pointed to fresh data from China's Ministry of Commerce showing that, by the end of 2024, Britain accounted for just 9 per cent of China's existing investment in developed economies. This places the UK behind the European Union, the United States and Australia. She said the figures underlined the urgent need for Britain to align its policy and regulatory framework with China's appetite for long-term investment."
"Cao argued that the UK must focus on making its tax system more attractive to global investors, easing barriers in its visa regime, and ensuring its infrastructure is fit for purpose. She suggested that lowering corporation tax and extending the Foreign Income and Gains regime for expats from four to ten years would send a strong signal to international businesses."
"Despite these challenges, Cao noted that relations between London and Beijing appear to be improving. The UK has been chosen as Guest Country of Honour at the 25th China International Fair for Investment and Trade (CIFIT) in Xiamen, which takes place from 8 to 11 September. Britain will use the event to showcase its strengths in high technology, healthcare and life sciences, financial and professional services, creative industries and clean energy."
By the end of 2024 Britain accounted for just 9 per cent of China's investment in developed economies, leaving the UK behind other developed economies. Britain must align its policy and regulatory framework with China's appetite for investment. Priority measures include making the tax system more attractive, easing visa barriers and improving infrastructure. Proposed steps are lowering corporation tax and extending the Foreign Income and Gains regime for expats from four to ten years. Rising visa salary thresholds and unreliable transport infrastructure risk deterring foreign companies. Trade engagement with China is increasing, with the UK as Guest Country of Honour at CIFIT and ministerial talks at CIFTIS.
#chinese-foreign-direct-investment #uk-tax-policy #visa-and-immigration #trade-and-diplomatic-engagement
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