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• Breaking the logjam
A mission in May 1995 headed by Michael Heseltine, then president of the board of trade, was notable in several respects. First, it was the largest British trade mission to any country, let alone China, that had taken place. Second, it came after a period of strained relations between Britain and China that arose from arguments about the transfer of Hong Kong sovereignty in 1997 and its timing was therefore something of a risk. Michael Heseltine was actually the first Cabinet minister to visit China for three years. And, third, it presented, perhaps for the first time, the full face of British industrial and commercial strength, setting the trend for future missions.
In all some 130 businessmen and women accompanied Michael Heseltine on the trip, for which a British Airways jumbo jet was specifically chartered. The upshot of the mission was undoubtedly a revival of better political relations between Britain and China and a return to ‘normal' trade and commercial ties. Before the Heseltine mission there had been a feeling that British business was losing business to companies from other countries, simply because of the political quarrels that were ongoing.
The China-Britain Trade Group, as it then was, and the British Chamber of Commerce in China organised a huge dinner attended by some 600 people.
If the £1bn worth of business that was said to have been concluded during the mission was something of an exaggeration, undoubtedly plenty of business was concluded. Several key contracts were signed, including a joint venture signed by Bass (which some years later folded) and a joint venture involving P&O to own and manage an exhibition centre in Shanghai. BOC used the trip to announce the establishment of its ninth joint venture, based in Shenyang. Other companies announced the setting up of representative offices.
One of the factors that made the mission a success was the breaking down of the party into different sectors. Well represented were the aerospace sector, the automotive industry (including vehicle manufacturers, engine manufacturers, design engineers and after-sales suppliers), the financial services sector (divided between investment bankers and insurance companies), the power sector and telecommunications. Collectively, the intention was to present UK Inc as a unified force.
All in all, the Heseltine mission, which was followed up the next year by another huge mission (twice the size), this time while he was deputy prime minister, helped move British business in China onto a new plane. – Humphrey Keenlyside
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