Agreements worth £600 million, potentially adding £1 billion in value to the UK economy, have been secured following Chancellor Rachel Reeves’ trip to Beijing.
Winnie Cao, Head of Blick Rothenberg’s China Desk and China Business Group, described the productive discussions between Reeves and Vice Premier He Lifeng as a positive sign for both Chinese and British businesses. “Another outcome of this visit is the opening up of the legal services market, allowing more UK law firms to operate in China,” Cao said. “This will be welcome, as Chinese companies often need professional guidance in the same time zone, yet local Chinese law firms can lack in-house UK expertise.”
Cao also highlighted a new understanding between the Chinese Institute of Certified Public Accountants (CICPA) and the Institute of Chartered Accountants in England and Wales (ICAEW) to explore “expanding the scope of mutual examination exemptions”. This, she said, could encourage more Chinese accountancy students to earn a UK ICAEW qualification — and vice versa — benefiting firms in both countries. “The UK accountancy sector has struggled for talent in recent years, and having more UK-qualified accountants in China may open up cost-effective outsourcing opportunities,” she noted. “At the same time, Chinese accountants who are UK-qualified will be of great help to Chinese businesses wishing to expand into the UK.”
One particular hurdle for Chinese firms investing abroad is the cultural gap in tax and accounting rules, but Cao believes that if these firms have access to more UK-qualified finance professionals, initial misunderstandings will be bridged more easily.
Although the progress made during Reeves’ China visit marks a step forward, Cao urged the UK government to seize the momentum and negotiate a social security reciprocal agreement. “Similar arrangements exist with South Korea and Japan,” she said. “Such an agreement would reduce both costs and paperwork for expatriates moving between the two countries, encouraging deeper mutual investment.”
Overall, Reeves’ visit appears to have laid the groundwork for renewed bilateral cooperation, with significant opportunities for British professionals in China, Chinese firms in the UK, and potential progress on regulatory reforms that ease cross-border trade and investment.
Read more:
Rachel Reeves’ China visit restores crucial links with world’s second-largest economy