Open dialogue with China is vital now on the road to a UK-China FTA

VCG

**Editors Note: **Steven Lynch is a Managing Director at British Chamber of Commerce in China. The article reflects the author's views, and not necessarily those of CGTN.

Over the past year, China has grappled with a structural economic slowdown, a trade war with the United States and inflationary pressures owing to the spread of African swine fever. More recently, the outbreak of COVID-19 brought the economy to a temporary standstill, and progress towards a full economic recovery remains slow.

In these testing times, companies need greater certainty, clarity and consistency in order to sustain investment and revive business confidence. It is against this backdrop that the British chambers of commerce in China this week launched the

British Business in China:

Position Paper 2020.

British businesses have noted that recent reforms to China's business environment over the past year are positive steps. The enactment of the

Foreign Investment Law

and the Regulations on the

Optimization of the Business Environment

, as well as revisionsto the 'Negative Lists', are welcomecommitments to creating a more transparent and level playing field for all businesses.

However, companies await the material impact that these reforms will have on their operations. Rigorous and consistent implementation will be essential to sustaining business optimism and ensuring continued investment.

In a current climate of rising global protectionism and hostility, the Position Paper is a vital document that cuts through the noise and lays out the views of British businesses across China.

Based on consultations with member companies, the chambers provide six key recommendations for the year ahead:

1. Strengthen the implementation of market reforms at all levels;

2. Address longstanding concerns around cybersecurity and IT restrictions;

3. Promote greater liberalization of the capital account;

4. Reduce the direct presence of state-owned enterprises in the market;

5. Keep conversations on bilateral trade open and frequent;

6. In the wake of COVID-19 - Establishment of travel agreements to facilitate the return of British nationals.

Both the Chinese and British governments have vital roles to play in improving the business environment and creating new commercial and investment opportunities for companies on both sides.

Now that the UK has exited the European Union and is looking to strike trade deals with countries further afield, we call on the British government to include China among the prioritized partners with which the UK is negotiating a free trade agreement.

Cooperation, based on mutual trust and respect, will help both countries recover from the impact of COVID-19 and address wider threats to the global economy. The need for constructive dialogue and tangible action will be critical to revitalize both economies.

The past few months have demonstrated the ease with which populist and protectionist politics can disrupt international relationships and increase business risk. The UK and China must resist this urge. Balance and objectivity in the bilateral relationship are more vital than ever.

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