How much is China's total investment in the UK?

According to data from the UK Office for National Statistics, China's total investment in the UK in 2023 was approximately £4.3 billion, which only accounts for a small portion of the total foreign capital inflow of £2 trillion that year.

Estimates made by the American Enterprise Institute (AEI), a U.S. think tank based on corporate reports, show that from 2005 to 2024, China's total public and private sector investment in the UK reached $105 billion (approximately £82 billion).

This makes the UK the third largest overseas investment destination for China during this period, after the United States and Australia.

In which sectors have Chinese companies invested?

China's investments in the UK span a wide range of areas, from key energy and transportation infrastructure to stakes in private enterprises and football clubs.

Important investments by China in UK infrastructure include: the state-owned sovereign wealth fund China Investment Corporation holding a 10% stake in London Heathrow Airport.

The investment group of Hong Kong businessman Li Ka-shing owns UK Power Networks, which is responsible for electricity distribution in London, South East England, and East Anglia.

This billionaire's group also owns 75% of Northumbrian Water, which is responsible for water supply and sewage services in North East England.

In the nuclear energy sector, China has made significant investments in the Hinkley Point C nuclear power plant located in Somerset.

China General Nuclear Power Group originally held a 33.5% stake, with the remainder owned by Électricité de France (EDF).

However, according to EDF's reports, the Chinese state-owned enterprise has ceased to provide further funding for this budget-overrun joint project, resulting in China's stake dropping to 27.4% by the end of last year.

According to project website information, the same company holds a larger stake in the proposed Bradwell B nuclear power plant (located in Essex), at 66.5%, while the remaining shares are still held by EDF.

Chinese enterprises are also actively investing in the UK's battery industry.

The Minety Battery Storage Station in Wiltshire is one of the largest energy storage projects in Europe, built and operated by China Huadian Group.

Professor Giles Mohan of the Open University said: "The fastest-growing area of European investment by Chinese companies is electric vehicle batteries, and most of these investments come from private enterprises rather than state-owned enterprises."

Geely Auto, a car manufacturer headquartered in Hangzhou, owns London Electric Vehicle Company (LEVC), headquartered in Coventry, which specializes in manufacturing electric versions of London black cabs.

To achieve the UK and Europe's climate goals, other green energy sectors such as wind power also welcome Chinese capital.

CITIC Pacific Power owns a 25% stake in the Beatrice offshore wind farm in Scotland.

In terms of consumer brands, Li Ka-shing's group owns the chain pub and beer brand Greene King, headquartered in Suffolk.

Wolverhampton Wanderers Football Club is owned by Fosun Group, headquartered in Shanghai.

Although Shengde Steel has full control over Scunthorpe Steelworks, it should be noted that Chinese investments in UK companies do not always exceed 50%, so they may not necessarily influence operational decisions.

In addition, some companies, such as airports and water utilities, are subject to strict regulation, which may limit the control of Chinese operators over related assets.

It is estimated that Chinese investors also own a large amount of land and buildings in the UK.

The distinctive Leadenhall Building in central London, known as the "cheese grater," was acquired by a Chinese real estate investor for £1.15 billion in 2017.

Source: BBC

Original article: https://www.toutiao.com/article/7493797448792523275/

Disclaimer: This article represents the author's personal views. Please express your opinion by clicking the "thumbs up/thumbs down" buttons below.