China Trade Tracker Released | Issue 2 - February 2022
- British exports to China reached £30bn in 2019 – tripling in size since 2010. Despite the pandemic’s decline in export levels, China remains the UK’s third largest trading partner.
- There was a significant increase of 3.1% in British goods' exports to China’s markets in the first nine months of 2021, with a value of £13.5bn.
- There is a growth of emerging export markets noted across UK regions, particularly in the meat industry and metal production.
- Despite recent declines due to new COVID variants, the long-term picture remains one of growth, particularly with the rise of middle-class markets in China presenting opportunities.
Despite the recent decline in export levels, primarily due to the pandemic, China remains the UK’s third largest trading partner, with growth prospects expected to increase as markets recover, according to the China-Britain Business Council’s analysis published today.
This is the second issue of the China-Britain Business Council’s (CBBC) China Trade Tracker, a quarterly publication offering specialist insight into UK-China trade. The report reveals that British goods exports to China increased by 3.1% in the first nine months of 2021, representing a monetary value of £13.5bn in export sales. In particular, UK exports of consumer goods and machinery have continued to rise.
Assessing all regions within the UK, the report highlights the changing trajectory of key UK exports in recent years, many of which have seen growth since 2018. The report highlights London as a key recipient of export gains, with an increase of 368.2% year-on-year in the second quarter of 2021.
However, significant gains from high quality machinery, transport, and manufactured goods exports account for the majority of sales in 10 out of 12 UK regions, with the West Midlands showing significant growth in particular. Furthermore, meat exports were identified as a major highlight, with the sector taking the top position in the Yorkshire and Humber region, with a growth of 25.9% in comparison with 2020.
During a challenging time In the UK's economy and as the country faces a cost-of-living crisis alongside the recovery from the pandemic, further impacted by restricted trading conditions both domestically and overseas, China continues presents a unique opportunity for long-term growth for British business of all sizes and all sectors.
The benefits and continued opportunities of a positive and healthy relationship with the Chinese market for UK prosperity and jobs are clear.
Andrew Seaton, CBBC Chief Executive, said:
“British businesses are increasingly taking advantage of the opportunities presented by the fast growing and dynamic Asian markets. The growth of China’s middle class - estimated to be over 400 million in the coming decade - is at the heart of this opportunity. It Is vital for the health of the UK economy that UK business does not miss out.
“Our China Trade Tracker once again illustrates the opportunities for British companies to do business in and with the Chinese market. And seeing such impressive figures across the sectors, and across the UK, is brilliant for our economy."
Report details
- CBBC ‘s China Trade Tracker is published quarterly and focuses on trade of goods and services between the UK and China, illustrating key themes across the UK, with further regional and sectoral analysis.
- It draws on Government, HMT, DIT and ONS data, compiled by CBBC's specialist analysts.
About the China-Britain Business Council
China-Britain Business Council (CBBC) is the UK’s leading business organisation promoting trade, skills and education, and investment with China.
CBBC speaks on behalf of more than 500 businesses and organisations of all sizes and sectors, leveraging bilateral trade and investment links to secure jobs and opportunities across all regions of the UK.
Contact:
CBBC
Torsten Weller, CBBC
Torsten.Weller@cbbc.org | 020 7802 2006
CBBC Communications advisers
Phillipa Usher-Somers, 56˚ North
Philippa.Usher-Somers@56degreesnorth.co.uk | 07885 489 003