Deals worth £600m have been concluded, potentially adding £1bn of value to the UK economy, following Chancellor Rachel Reeves’ trip to Beijing.
Winnie Cao, head of the China office and China business group at Blake Rotenberg, described the fruitful discussions between Reeves and Vice Premier He Lifeng as a positive sign for both Chinese and British companies. “Another outcome of this visit is the opening up 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, yet local Chinese law firms may lack in-house 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 cross-examination exemptions”. She said this could encourage more Chinese accounting students to take an ICAEW qualification in the UK – and vice versa – benefiting companies in both countries. “The UK accounting sector has struggled to attract talent in recent years, and the presence of more UK-qualified accountants in China may open up cost-effective outsourcing opportunities,” she noted. “At the same time, qualified Chinese accountants from the UK will be of great help to Chinese companies wishing to expand into the UK.”
One particular obstacle facing Chinese companies investing abroad is the cultural gap in tax and accounting rules, but Cao believes that if these companies had access to more qualified financial professionals in the UK, initial misunderstandings would be overcome more easily.
Although the progress made during Reeves’ visit to China represents a step forward, Cao urged the UK government to seize the momentum and negotiate a reciprocal social security agreement. “Similar arrangements exist with South Korea and Japan,” she added. “Such an agreement would reduce costs and paperwork for expatriates moving between the two countries, encouraging deeper mutual investment.”
Overall, Reeves’ visit appears to have laid the groundwork for renewed bilateral cooperation, with significant opportunities for British professionals in China, Chinese companies in the UK, and potential progress on regulatory reforms that facilitate cross-border trade and investment.
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