3 Reasons Why UK-China Trade Still Remains Robust After Brexit
Comms8 Managing Director Carol Chan's viewpoint is featured in the China Economic Review, one of the media focusing on trends and developments in China economy and her relation to the world economy.
Since the Brexit in 2016, the media and the public are both concerned about the effects it would have on the UK economy. The massive shift of the trading ecosystem has drawn attention from the world. Specifically, how would the foreign inward investment reform and then affect the UK economy?
China, as one of the biggest non-EU countries, definitely plays a pivotal role in the post-Brexit period. Has the UK-China trade volume been improved or worsened since the Brexit? What will be the future trends of the UK-China trade data?
Base in the UK, we are a professional marketing firm Comms8 experienced in connecting brands and customers across Europe and China. Our Managing Director, Carol Chan, shared with Tim from China Economic Review about her optimistic view on the Post-Brexit Era.
Carol revealed that many Chinese brands still treat the UK as the strategic hub for global expansion.
When Carol mentioned the question of whether Brexit has weakened companies' confidence in the UK economy, she expressed that ‘as long as Britain holds the original attractive attributes as the creative capital of the world, Chinese companies are still positive about investing in the country.’
Why is UK-China trade still strong in after Brexit?
1. Changed Trading Status
Brexit creates more chances for China to do business with the UK. Although leaving the EU risks losing some sort of trading benefits, exiting the European single market also indicates more possibilities for investors. Britain can be more flexible in constructing trading contracts with other nations.
For instance, Britain does not need to follow the unified taxation system with the EU. There is no need to maintain the same trading position towards other countries as well. This gives much greater freedom to Britain for building up effective trading relationships with foreign regions.
Furthermore, the former UK Prime Minister David Cameron prioritised building up closer economic ties with China way back in 2014. Since 2015, Britain has signed multiple trading and energy projects with China and the total value of these agreements is around £40 billion.
Britain is also the first Western country to join the Asian Infrastructure Investment Bank (AIIB). The country's active economic participation in China provides a solid foundation of a closer UK-China trading relationship after Brexit.
2. Cultural Image
Britain’s cultural image is still a strong force in attracting both Chinese talents and investments. The soft power of the country remains convincing after the Brexit.
Traditionally, the UK is regarded as the first stop for a brand to enter the global market. Therefore, as long as the UK keeps advancing her cultural image, she will attract foreign investment and expertise even in the post-Brexit period.
"Despite the UK market is not necessarily the largest revenue driver, they (Chinese investors) believe the UK has a profound significance in setting the trend globally.” ---Carol Chan, Managing Director of Comms8.
3. Advanced Advertisement Technology
‘The UK is a pioneer in advanced advertisement technology’, Carol mentioned. The precise targeting and marketing power helped Britain to maintain as one of the most attractive and developed regions for businesses.
The huge success of Sky perfectly illustrates this. The company upgraded the traditional form of TV advertising and developed its AdSmart platform. The marketing strategies are tailor-made for clients and customised according to the history of viewers. The accurate targeting enabled the running of over 4,000 campaigns in a year.
Moreover, multiple outstanding advertising technology (AdTech) companies are based in the UK. Carol mentioned the importance of the continuous exploration of possible technology combining AI and data mining. Leading names such as Captify is the magnet to attract foreign investments and talents. To China, the advancement in advertising technology in the UK provides foreign brands with a great platform for rapid developments.
Infinite Possibility in the UK-China trade
At Comms8, we are positive in the future of UK-China trade. Not only because the UK provides excellent services in various industries, but also a large group of outstanding talent and technologies are ready for brands to ride on. We are confident that Britain's dynamic economic development will continue to resolve obstacles ahead.
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