Away from the politics, trade delegation creates jobs

Anna Scott

Chinese newspapers have reported David Cameron’s trade delegation to the country with some degree of cynicism.

The prime minister’s trip to China, with more than 120 businesses, is part of plans to increase trade with the UK, which Cameron had pledged to double to £62bn by 2015, according to the Financial Times.

Cameron has said that “Britain wants China to realise its dream, and I believe we can help each other succeed in the global race”.

Chinese newspapers, on the other hand, have suggested that Britain is no longer an important country for China to have a relationship with, and “highly replaceable”.

One of the catalysts for this reaction is the meeting Cameron had with the Dalai Lama, the Tibetan spiritual leader 18 months ago, which angered the Chinese government. But Cameron has also come in for criticism on this side of the world for engaging with a country that has a questionable human rights record.

To a certain extent this political backdrop has taken the spotlight off what the rest of the trade delegation is doing in China.

Whatever diplomatic activity has occurred before the trip, the business deals that have been taking place this week suggest this British delegation – the largest ever to China – has been something of a success.

Trade and investment deals have been struck that total over £5.6 billion and creating more than 1,500 jobs in the UK, according to Downing Street.

Among them are a £4.5 billion export deal for Jaguar Land Rover and a £60 million investment from Chang’An Automobile Co. Ltd into a new European Research & Development Centre in the West Midlands, creating 300 jobs.

Some small and medium-sized businesses – which have comprised half the delegation – have had a fruitful few days too.  British manufacturer of gluten, nut and dairy free sauces Sweet Mandarin has signed a £6 million deal to sell sauces in China, creating up to 15 new UK jobs.

This is all good news for recruiters in the UK. But is also puts the spotlight on China as a destination for UK recruiters. While there are rising labour and compliance costs associated with doing business in China, there is a market for recruiters – a handful of agencies already operate successfully there.

Ongoing political disputes will not, for now, stop multinational organisations operating in the second largest economy in the world looking for skills and management expertise from around the world, and recruiters will have a vital role to play.