BRITAIN IN THE REGION
* British interest growing: the UK already has a higher proportion of its exports and investment in the Asia Pacific than any other European country.
* (if required) UK has strong market share (of OECD exports) in Hong Kong (6.5%), Singapore (5.7%) and Malaysia (6%). Despite difficult market conditions in Japan we have held our position relative to other European exporters (4%).
UK has a particularly strong asset in Hong Kong:
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stock market value of British owned, controlled or managed companies is over £50 billion
over 950 British companies with offices in Hong Kong
Hong Kong is an excellent jumping off point to develop business elsewhere in the region, particularly Southern China. Businessmen should make more use of our strong business connections there. Hong Kong-based entrepreneurs are active throughout the Asia Pacific region.
* We are stimulating business interest in China and Hong Kong. This seems to be growing rapidly: though heavily weighted to familiar markets, not strong in the largest, high growth markets (Japan, China, Korea, Taiwan, Indonesia and Thailand): British business must do more there.
RECENT SUCCESS STORIES
In China:
8 BAe 146s (£97m);
Rolls Royce aero-engines (£100m);
the Shajiao C power station (GEC-Alsthom £300m); a plant to manufacture textile feedstock (PTA) (Foster Wheeler £70m); and
mining machinery (Anderson Group £11.6m).
In Hong Kong:
the Lantau Fixed crossing suspension bridge won by UK/Japan consortium (UK content c. £250m); Black Point power station (GEC Alsthom/GE total contract £1bn).
CONCESSIONAL FINANCE FOR CHINA
* Second Concessional Finance Agreement (CFA) has supported major project business in China since 1988, to the value of £300m.
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Plan to offer a third CFA to China, to commence later this year.