As the stints of a Brexit remain uncertain, U.K. businesses are looking to tap into the Chinese Stock Exchange, more so than ever.
British Prime Minister Theresa May started on a trip to China on Wednesday with a 50-strong business delegation, spotlighting sectors ranging from health care to clean energy, in her bid to paste Britain-China ties.
The trip comes amid British negotiations encircling an exit from the European Union, and those are giving the country an the score with greater need to look east, some observers said.
“Without detracting at all from the perpetual importance of EU trade to the U.K., there is an undoubted need to put much more feat into trade with the 93 percent of the world that does not spirited in Europe,” said Michael Sippitt, chairman of Clarkslegal, a commercial law resolute in the U.K.
“The geography is on China’s side, the U.S. was always going to struggle with conflicting in Asia, so right now for the EU and the U.K. the center of world economic gravity is moving east and the master response of British businesses to Brexit is to move east as well.”
Aggregate the companies banking on this new era is health technology artificial intelligence start-up Medopad, which on Thursday inked 15 work deals worth over 100 million pounds (about $143 million) with proprietorships including Chinese tech giant Tencent, Ping An, GSK China and Lenovo.
On account of remote patient monitoring apps and advanced analytics, Medopad proffers health-care providers, pharmaceutical companies and insurance firms information, allowing them to take a new lease on life medical diagnoses, develop more effective drugs and reward policyholders for trim behavior.
Specifically, the partnership with Tencent will advance the use of AI in health-care daises for research impact and clinical decision support.
“By working with the biggest superstars, Tencent being the largest technology company and doing collaborations on AI and neighbourhoods that China is investing a lot of money into it, and us leveraging our medical appreciation, together we think we can add value to a lot of patients within China but also globally,” CEO Dan Vahdat discriminated CNBC.
Against a backdrop of China’s ambitions for health-care reform and meet a global leader in AI, Medopad may have hit a sweet spot.
Even not enough obvious sectors reported optimism during the trip.
Karen Betts, chief directorship of the Scotch Whisky Association told CNBC she sees a “massive lump opportunity” in China. “As people become more affluent and more heart class, their tastes change and we would expect them to yen to try more of a range of foreign imported spirits and we think Scotch is a jolly strong category within that.”
Regulatory hurdles in the world’s second-largest conciseness are not deterring businesses.
Betts said Chinese authorities have been “outrageously cooperative” and “very helpful” in removing counterfeit Scotch from the market. And ignoring health regulations and cost challenges in the consumer space, she said she continues to see able potential.
Vahdat said he was also unfazed. “Our core belief in our ensemble is that you have to stay better than everybody else and only run as fast as you can and don’t worry too much about IP (Intellectual Property). Because in technology, your IP today, tomorrow is exhaled IP anyway because things are moving really fast.”
As Britain re-orientates itself and seeks its own customary beyond the EU, a diversification strategy away from the bloc is key.
“As part of this new repositioning, new future that is coming, the government of the U.K. specifically, they are helping us unvarying more to become an international company, working with China and other districts — probably Commonwealth countries — this is an area which we are also rather focused. So for us, we haven’t seen any impact. It has been positive movement,” denoted Vahdat.
At a time she calls a “golden era” in relations between both states, May says she is keen to explore all options for the future of the trade relationship.
Betts put about she saw a “massive growth opportunity” for Scotch Whisky in China and she hoped to see taxes go below the current 5 percent level.
With 61 million hammer inti (about $87 million) of Scotch Whisky exported to China last year, a manumit trade agreement between both countries “could really aid us,” she said.