British firms in China eye bigger market share

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‍British companies in China are eyeing a bigger market share as the country is committed to further opening up, according to companies attending the 10th British Business Awards in Beijing on Thursday.

The awards, which brought together dozens of British companies, has been set up to recognize the achievements of British businesses in China and showcase the successful cooperation between UK and Chinese companies. A special award – 40 Years of Reform Award – has been set this year as 2018 marks the 40th anniversary of China's reform and opening up.

Winners of the 2018 British Business Awards in Beijing, November 15. /CGTN Photo

Entering the Chinese market in 1963, BP, the British energy giant, has been a witness as well as a beneficiary of China's reform and opening up.

Yang Xiaoping, president of BP China, introduced that thanks to China's gradual opening up of the energy sector, BP has been able to invest in the entire industrial chain ranging from oil and gas exploration to the sales of petrochemical products.

“Chinese President Xi Jinping has said that China's door will only opening wider, and BP's confidence to invest in China is also getting stronger,” Yang told CGTN.

Yang Xiaoping, president of BP China, speaks at the 2018 British Business Awards in Beijing, November 15. /CGTN Photo

The company sees huge potential in the Chinese market as the sector worldwide is transforming from traditional fuels of oil and gas to green energy, and the shift is taking place at a faster rate in China.

This year, BP has focused on the new energy and smart vehicle sector, including a 10-million-US-dollar investment in China's electric car start-up Nio, and the acquisition of Britain's largest EV charger supplier Chargemaster.

Another key area in China that BP is eyeing is natural gas, Yang said. They are now collaborating with PetroChina in southwest China's Sichuan Province for shale gas exploration.

“China has a tremendous demand for natural gas. Currently natural gas takes up less than seven percent in China's energy structure, while its goal by 2020 is to increase the proportion to 10 percent. And that means large room for BP to invest,” Yang noted.

Rolls Royce, the British aircraft engine manufacturer, also the winner of the 40 Years of Reform Award, is another company that has operated in China for four decades and achieved steady growth alongside China's development.

Julian McCormack, director of Rolls Royce China, said that China is an increasingly important country for their company, which just overtook the UK to become their second largest market in the world only after the US.

Julian McCormack, director of Rolls Royce China, receives a group interview at the 2018 British Business Awards in Beijing, November 15. /CGTN Photo

“China has come a long way in the last 40 years, but for Rolls Royce, the next 40 years are very important because there is significant growth to come as China continues to develop,” he told CGTN.

He said his company saw significant room for growth in the Chinese market, thanks to the huge demand for air travel driven by a growing middle class.

Their priority in the Chinese market in the next few years is the opportunity to supply engines for China's self-developed wide-body jet CR929, which Julian believes had a great future.

“It's a competitive process, we are very keen to secure that. It will be the next step in our growth in China. We also want to do more of our supply chain in China,” he added.