The UK “mustn’t cut ourselves off” from trade opportunities in China despite security and business risks, the boss of the Confederation for British Industry has said.
Rain Newton-Smith highlighted that British businesses see increased trade with Chinese firms as an opportunity to drive growth.
It came as business leaders faced questioning from MPs at Parliament’s Business and Trade Select Committee regarding the relationship between the UK and the Chinese economy.
Last December, Prime Minister Sir Keir Starmer admitted that China poses security threats to the UK but continued to urge for greater business ties between the countries.
Ms Newton-Smith, the chief executive of one of the UK’s largest business groups, was positive about the Government’s engagement with China.
“You can’t have a growth strategy without a strategy for China,” she said.
“China has the biggest contribution to global growth, is the third largest trading partner, and the world’s largest consumer market.
“The UK is second largest exporter of trade and services.
“We are mindful as all businesses are of security risks but it is really important that we have a strategy towards China.
“This Government has increased the economic engagement with China and including business within this does help us as a country.”
She added: “If we think about the future economy, there is a huge market in China and I think we mustn’t cut ourselves off from some of the opportunities there, even if in some areas there are difficult conversations and negotiations that need to be had.”
Peter Burnett, chief executive of the China-Britain Business Council, told the committee: “There are risks associated with technology advancement, AI, industrial development that they need to assess.
“Increasingly you will find them saying that they need to engage more in China to understand those risks and to develop some of the technologies along some of those risks themselves.”
