UK retailers may benefit from China visit

Wednesday, 21 October 2015

China may be the world's second-largest economy behind the US, but it has more money in the bank than any other country.

Chinese investment in the UK is an important business, even if in the first half of this year its investment fell sharply - just 1.8bn dollars compared with more than 8bn dollars in the whole of 2014.

But this figure is likely to be boosted significantly this week with the announcement of a number of deals while President Xi Jinping and his delegation visit Britain.

Whilst the energy sector has benefited most of Chinese investment, the country also owns one of our department stores, with an 89 percent stake in House of Fraser.

China's favoured European investment destination is Italy, and already has invested over 1 billion dollars in retail and stores.

Despite the slowdown in the Chinese economy in the past five years, the government has increased its overseas investments from 20 billion dollars in 2005 to 171 billion dollars in 2014 and the UK remains one of China's favourite places to invest.

Related News