Annex B
INWARD INVESTMENT FROM HONG KONG, TAIWAN
AND CHINA
Summary
Both Hong Kong and Taiwan are major long-term
investors in the UK with the majority of their European investments
here. China is not as yet a major global outward investor with
little investment in Europe or the UK, but this is changing.
Hong Kong
Hong Kong companies have around 80 per cent
of their European investment in the UK. This represents around
180 companies. Accurate figures for the total stock of investments
from Hong Kong are not available but reported projects to Invest
UK between 1983-2000 show investments totalling £700 million
creating 12,000 new jobs. However Hong Kong based Hutchinson Whampoa's
investments in the UK amount to more than £2 billion, ranging
from telecoms to ports to property. This does not include their
successful bid as part of a Hong Kong/Canadian joint venture ("TIW")
in the UK's recent third generation mobile auction (£4.38
billion).
Taiwan
Taiwan companies also have around 80 per cent
of their European investment in the UK, primarily in computer
manufacture and assembly. This represents about 170 companies
employing about 15,000. Full Capital Expenditure is unknown, but
projects reported to Invest UK between 1983 and 2000 amounted
to £800 million.
China
Invest UK has a record of 107 companies from
mainland China. This is up from 50, five years ago. They are mainly
banks, transportation and trading companies. The majority are
in the London area. According to the Chinese Ministry of Trade
and Economic Co-operation (MOFTEC) the UK has fewer Chinese companies
than both Germany and France. The Chinese government is now pushing
the major Chinese enterprises to invest overseas. MOFTEC have
also stated that Invest UK is the only European investment agency
active in the China market. Capital Expenditure is uncertain,
but likely to be small. Less than 1,000 staff are directly employed
by Chinese enterprises.
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