The PM will search in vain for growth from more trade with China. Our exports to China were a lowly £30bn in 2024 so a 10% boost would only be 0.1% of our GDP. Meanwhile our imports were a much larger £72.5bn, more than double our exports. A 10% increase in those would cut our GDP by 0.2%.
The truth is there is not much we produce that China needs. Meanwhile the government’s deindustrialisation policies of dear energy, bans and high taxes in the name of net zero create plenty of scope for China to export to us. China dominates the supply of solar panels. It is big in wind towers and turbines, and is coming to dominate in batteries and battery cars. These are the products that lead our lists of imports, assisted by miscellaneous manufactures as UK industry is driven to closure by high taxes and costs.
China does want to copy our success in creating great universities, in generating plenty of innovations, in financial services, in culture and entertainment and the other service exports we are good at. It will pick up much useful insight by sending some of its brightest and best students to the UK and by getting them onto important research projects for further degrees. It will encourage some UK firms to collaborate, including supplying their best intellectual property. Some Chinese business people simply copy western brands and technologies without paying royalties or buying the rights.
China is following a China first policy. It intends to control the intellectual property, own the raw materials and set up the manufacturing facilities at home. The UK government is misguided if it thinks the UK can win large amounts of goods orders from China and sustain their role as a long term supplier, given the domestic focus of Chinese policy.