Chinese Investment in the UK: Structure, Dynamics, Prospects

Abstract

The article analyzes China’s investment in the UK. Sectors of the British economy, in which the largest Chinese investments are concentrated, have been recounted. Large British enterprises, acquired by Chinese companies in 2005–2020, have been identified. The dynamics of the expansion of Chinese capital is examined in the context of the political, economic and technological risks that it generates. The article focuses on the study of the argumentation of experts who question the advisability of the active participation of Chinese capital in the development of the UK economy. There are three factors that will negatively affect investment cooperation between the two states. Firstly, there is considerable concern among British politicians about the rise of China’s influence. Secondly, London’s decision to bar Huawei from building 5G networks has worsened UK- China relations. Thirdly, National Security and Investment Bill, now progressing through UK Parliament, will give the authorities additional powers to block investment projects with foreign capital participation on national security grounds. The author concludes that all these factors will lead to a decline in China’s investment in the United Kingdom.

Keywords

• united kingdom
• china
• european union
• investment
• political risks