The re-election of Donald Trump as President of the United States could lead to a significant shift in Chinese investment, with a potential $33 billion “up for grabs” for Britain, according to leading British venture capital firm Fuel Ventures.
The company believes that the changing dynamics in US leadership will encourage Chinese investors to look beyond the US market.
Based on data from Trump’s first presidency, Fuel Ventures predicts that Chinese investments lost in the US could be diverted to Britain. During Trump’s first term, Chinese investment in the US saw a sharp decline, falling 36% in his first year and another 83% the following year, according to Statista. Fuel Ventures predicts that if similar patterns play out, Chinese investment in the US could fall from $28 billion in 2023 to just $10 billion in 2025, with a further decline to $3 billion after that.
Mark Pearson, founder of Fuel Ventures, commented: “Trump’s re-election means Chinese investors are looking elsewhere for opportunities outside the US market. We predict that there will be around $33 billion up for grabs from Chinese companies in the coming years, and that Britain will benefit as a center of technology talent and innovation. Since Trump’s re-election, we have already seen increased interest from major Chinese investors looking to shift funds to Britain.”
Jing Jing Xu, Managing Director at Fuel Ventures Asia, highlighted Britain’s growing attractiveness to Chinese investors: “The quality of British technology and innovation stands out globally and offers consistent growth opportunities compared to other markets. Britain has also seen an 80% increase in the number of Chinese students studying here over the past decade, thanks to the country’s world-renowned universities and secondary schools.”
She added: “The UK represents a bridge to Western markets, offering reliability, sophistication and long-term potential for Chinese investors. The appeal of British education, lifestyle and cultural links with Europe strengthens this position.”
Jing also highlighted a recent meeting with Beijing’s deputy mayor, who expressed a strong desire to bring advanced technology to China. “We are pleased to have successfully built a relationship with both the mayor and the Chinese government, creating new opportunities for collaboration through our latest investment round.”
The potential shift in Chinese investment presents a significant opportunity for Britain, especially in the technology and education sectors, as it adapts to new international trade dynamics amid evolving US-China relations.