The perception of China within British circles often leans towards a sense of mystique, as highlighted by the remarks of Gu Peiqin, the chairman of the China-Britain Business Council. He observes a noticeable disparity in the understanding of China between the two nations, stating that “the knowledge that Chinese people have about the UK far exceeds the knowledge that British people have about China.” This sentiment reflects a deep-rooted historical context where China, for centuries, has been a pivotal player on the world stage, and the responsibility falls on both sides to bridge this knowledge gap.

Gu’s recent remarks came during the Second UK-Greater Bay Area Conference held on November 22 in Qianhai, Shenzhen, hosted by the China-Britain Business Council. This gathering was a hallmark of cooperation between the UK and the Guangdong-Hong Kong-Macau Greater Bay Area, aimed at fostering economic ties and understanding between the two regions. During a candid conversation with reporters from Southern Finance, Gu expressed his conviction about the significance and depth of Chinese civilization, noting, “China has been the world’s largest economy for several centuries, which warrants exploration and understanding by everyone.”

Advertisement

With a career steeped in international diplomacy, Gu Peiqin’s extensive experience includes over three decades in the British Foreign Service. His former roles encompassed ambassadorships in Israel, Saudi Arabia, and Afghanistan, followed by a pivotal role at HSBC as a senior advisor on public affairs. These experiences have armed him with insights into international relations, positioning him well to lead efforts that enhance economic cooperation between the UK and China. Since his appointment as chairman of the China-Britain Business Council in 2019, Gu has ardently worked towards strengthening trade ties, leading numerous delegations to cities like Beijing, Shanghai, Hong Kong, Guangzhou, Chengdu, and Chongqing.

Reflecting on his past, Gu recounted advice he received during his secondary education from a teacher who challenged his pursuits in the study of ancient Greek and Latin. The teacher urged him to “invest his time in understanding China, a civilization rich in history and destined to play a monumental role in the modern world.” This insight has lingered in Gu's mind, particularly now in his leadership role, where he witnesses the intricate dance of economic development between the two nations.

Looking towards the future, Gu Peiqin remarked on the cyclical nature of economic development. He dismissed the notion that “China's economy has peaked and is in decline,” countering that significant growth potential remains. “The reality is that China, with its population of 1.4 billion, still possesses enormous prospects for growth. Any truly global company must enter the Chinese market,” he emphasized, indicating that understanding China’s economic landscape is crucial for international businesses.

Recent data from the Chinese Ministry of Commerce substantiates Gu’s positive outlook, showing an 81% increase in actual British investments in China in 2023. Furthermore, predictions from the China-Britain Business Council suggest that about one-quarter of the top 100 UK companies operating in China will continue to invest substantial amounts ranging from $200 million to $1 billion, highlighting China’s critical role in the global strategy for many British firms.

Guangdong Province itself stands out as a vital hub in this bilateral trade narrative, being the fourth largest source of foreign investment for the UK. The figures reveal a direct investment worth 154.31 billion yuan from Guangdong to the UK in 2023, marking a 5.4% increase from the previous year. In parallel, new foreign direct investment enterprises from the UK in Guangdong rose by 22.9%. Such statistics underscore the thriving economic exchanges between the regions.

As the China-Britain Business Council gathers momentum, Gu Peiqin shared a sense of optimism regarding the recent visits by British ministers to China, hinting at a climate of renewed collaboration. Reflecting on his experiences visiting various cities in China, Gu expressed his admiration for the vibrancy of the nation. “China not only boasts a massive market but also a rich historical tapestry. The receptions we’ve received have been exceptional, which speaks volumes about the eagerness to collaborate,” he shared. With concrete government shifts in the UK paving a way for a more robust relationship, Gu emphasized the necessity for both nations to pursue mutual economic growth.

Turning to the lingering effects of pandemic disruptions, Gu noted that British companies remain optimistic about the potential of the Chinese market despite fluctuating economic conditions. The UK’s needs intersect with China’s strengths, particularly in context to reaching net-zero emissions - a goal that necessitates collaboration and innovation. “Without Chinese technology, our goals surrounding net-zero emissions would be unattainable,” he stated, highlighting the importance of bilateral partnerships in tackling global challenges.

In light of recent incentives introduced by the Chinese government to bolster economic activity, Gu expressed confidence that British businesses are viewing the long-term growth potential in China favorably. He pointed out that, inherently, no economy develops without its ebbs and flows, but what remains is the foundational strength of the Chinese market. He observed, “While some may utter unfounded claims regarding China’s economic apex, the reality is that British enthusiasm for China continues to rise, evident in the surge of companies seeking membership in the China-Britain Business Council.” This enthusiasm reflects a robust belief in the underlying vigor and prospects of the Chinese market.

In newer technological realms, the collaboration between the UK and China, particularly in sectors like artificial intelligence, clean energy, and electric vehicles, is poised for expansive growth. Gu emphasized that the pathway towards achieving net-zero emissions significantly hinges on the technological advancements that China is making. He highlighted, “We see China at the forefront of many emerging tech fields, while British universities are leading research in transitioning to net-zero. This convergence creates a fertile ground for productive collaboration.”

In a personal anecdote, he recounted a recent visit to a testing facility for the insurance industry in the UK, where he found a considerable number of test vehicles were Chinese-made. This experience resonated with his observations from the Shanghai Auto Show, indicating a rebirth in perception towards the prowess of Chinese automotive design. Gu remarked on the evolving aesthetics of Chinese automobiles, which now combine technical sophistication with contemporary design elements, a shift likely to capture the interest of Western consumers.

This growing bilateral engagement not only strengthens trade ties but enriches cultural exchanges, fostering an environment of mutual respect and understanding. By acknowledging each other’s historical contexts and current realities, both nations have a unique opportunity to explore synergies that can influence global markets and pave paths toward sustainable growth.