Rachel Reeves’ visit to China restores vital links with the world’s second largest economy
Deals worth £600 million, which could add £1 billion to the UK economy, have been secured following Chancellor Rachel Reeves’ trip to Beijing.
Winnie Cao, Head of the China Desk of Blick Rothenberg and the China Business Group, described the productive discussions between Reeves and Vice Premier He Lifeng as a positive sign for both Chinese and British businesses. “One result of this visit is the opening of the legal services market, allowing more UK law firms to work in China,” Cao said. “This will be welcome, as Chinese companies often need to be led at the same time, but local Chinese firms can lack UK expertise.”
Cao also highlighted a new understanding between the Chinese Institute of Certified Public Accountants (CICPA) and the Institute of Chartered Accountants in England and Wales (ICAEW) to explore “expanding the scope of exemptions from common examinations”. He said this would encourage more Chinese accounting students to obtain UK ICAEW qualifications – and vice versa – benefiting firms in both countries. “The UK accountancy industry has struggled to find talent in recent years, and having more UK accountancy actors in China could open up more cost-effective outsourcing opportunities,” he said. “At the same time, qualified Chinese accountants in the UK will be of great help to Chinese businesses wishing to expand in the UK.”
One obstacle for Chinese firms investing abroad is the cultural gap in tax and accounting laws, but Cao believes that if these companies have access to qualified UK financial experts, the initial differences will be easily bridged.
While the progress made during Reeves’ visit to China shows a step forward, Cao urged the UK government to seize the momentum and negotiate an agreement on public security reciprocity. “There are plans similar to South Korea and Japan,” he said. “Such an agreement will reduce both costs and paperwork for immigrants traveling between the two countries, encouraging deeper investment.”
Overall, Reeves’ visit appears to have laid the foundation for renewed bilateral cooperation, with significant opportunities for British professionals in China, Chinese firms in the UK, and potential progress on regulatory changes easing cross-border trade and investment.
