Britain Must Respect Chinese Investors, Asserts Head of UK Manufacturing Body – Reuters

By William James

LONDON (Reuters) – The head of Britain’s manufacturing organization emphasized the importance of respecting Chinese investors, highlighting their significant wealth as potentially crucial for the country’s economic future. This statement follows a last-minute postponement of a nuclear deal partially funded by Chinese interests.

Last week, Prime Minister Theresa May opted for additional time to analyze a deal involving the construction of Britain’s first nuclear power plant in decades, which is backed by French utility EDF and its Chinese partner, China General Nuclear.

The unexpected delay has sparked concerns regarding a potential shift in the new government’s approach to Chinese investment, a viewpoint that had been actively encouraged by former Prime Minister David Cameron.

Terry Scuoler, who leads the EEF, the trade body for British manufacturing, acknowledged the necessity of the delay, but stressed that it should not discourage Chinese investors from contributing essential funds to areas such as the country’s aging power plant infrastructure.

"It’s understandable that the prime minister takes a moment to assess the situation," he stated in an interview. "However, relationships have been cultivated with Chinese investors, who have anticipated a level of access, support, and partnership. This must be carefully weighed in her considerations."

A decision regarding the Hinkley Point reactor project is anticipated in September. The deal is perceived by the Chinese firm as an opportunity to establish a foothold in the British nuclear sector, potentially leading to the construction of more Chinese-designed reactors in the future.

Scuoler highlighted the pressing need for investment, warning that factories in Britain could face power shortages during the winter due to insufficient capacity, stemming from delays in replacing aging coal-fired power plants.

He asserted that China could play a pivotal role in revitalizing the nation’s infrastructure, provided investments are made in a mutually beneficial manner.

"Chinese investment in the UK is critically important and is on the rise," Scuoler noted, adding that the Chinese government possesses the largest sovereign wealth fund globally.

"Access to that fund through a genuine partnership should be pivotal for our economy, but it must be founded on true collaboration."