Deals worth £600 million, potentially adding £1 billion in value to the UK economy, have been agreed following Chancellor Rachel Reeves’ visit to Beijing.
Winnie Cao, head of Blick Rothenberg’s China Desk and China Business Group, described the productive discussions between Reeves and Deputy Prime Minister He Lifeng as a positive sign for both Chinese and British companies. “Another outcome of this visit is the opening of the legal services market, allowing more British law firms to operate in China,” Cao said. “This will be welcome as Chinese companies often need professional guidance in the same time zone, but local Chinese law firms may lack the UK expertise in-house.”
Cao also highlighted a new agreement 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 mutual examination exemptions”. This, she believes, could encourage more Chinese accountancy students to gain a UK ICAEW qualification – and vice versa – which would benefit businesses in both countries. “The UK accounting sector has struggled for talent in recent years, and having more British qualified accountants in China could provide cost-effective outsourcing opportunities,” she noted. “At the same time, Chinese accountants qualified in the UK will be a great help to Chinese companies looking to expand into the UK.”
A particular hurdle for Chinese companies investing abroad is the cultural divide in tax and accounting regulations, but Cao believes that if these companies have access to more British-qualified financial professionals, initial misunderstandings will be more easily overcome.
While the progress made during Reeves’ visit to China represents a step forward, Cao urged the British government to seize the momentum and negotiate a reciprocal agreement on social security. “Similar arrangements exist with South Korea and Japan,” she said. “Such an agreement would reduce both costs and paperwork for expats moving between the two countries, encouraging deeper mutual investment.”
Overall, Reeves’ visit appears to have laid the foundation for renewed bilateral cooperation, with significant opportunities for British professionals in China, Chinese companies in Britain, and potential progress on regulatory reforms that will support cross-border trade and facilitate investments.