Tianjin: A Northern Powerhouse

Nestled in northeast China, Tianjin is one of China’s four municipalities, enjoying provincial-level status alongside Beijing, Shanghai, and Chongqing. With a population of nearly 14 million, it is a bustling centre for international trade, particularly renowned for its port, which handled imports and exports worth £210 billion in 2023, more than four times the value processed by the UK’s Port of Felixstowe (£47 billion in 2024). Tianjin’s strategic location and robust infrastructure make it a vital cog in China’s economic machine, offering UK businesses a gateway to northern China and beyond.

The Tianjin Free Trade Zone: Structure and Ambition

The TJFTZ, one of China’s earliest free trade zones alongside Fujian and Guangdong, spans 119.9 square kilometres across three sub-zones: the Tianjin Airport Area, the Harbour Area, and the Seaport Area (encompassing the Binhai CBD). Despite occupying just 1% of Tianjin’s land, the zone punches above its weight, contributing 26% of the city’s new foreign-invested enterprises, 38% of its import and export volume, and 43% of its foreign capital, according to Vice-Mayor Li Wenhai in April 2025.

The TJFTZ is strategically positioned to drive the Jing-Jin-Ji (Beijing-Tianjin-Hebei) region’s integration into the global economy. It serves as a testing ground for bold trade and investment policies, offering UK firms a unique opportunity to tap into China’s liberalising market. Its mission is to become a “high-level platform for opening up to the world,” with a focus on innovation, trade facilitation, and international collaboration.

Sector-Specific Opportunities for UK Businesses

Each sub-zone of the TJFTZ caters to distinct industries, presenting tailored opportunities for British companies:

• Tianjin Airport Area: Specialising in civil aviation, equipment manufacturing, R&D, digital information, biomedicine, and aircraft leasing, this area is a natural fit for UK firms in aerospace and life sciences.
• Harbour Area: Focused on international shipping and logistics, this sub-zone aligns with the UK’s expertise in maritime services. B
• Seaport Area (Binhai CBD): A hub for finance, open banking, cross-border e-commerce, and creative industries, this area is particularly attractive for UK fintech and media firms.

Policy Incentives: A Magnet for Investment

The TJFTZ offers a suite of policies designed to attract foreign investment, many of which are particularly appealing to UK businesses:

• Investment Liberalisation: The China FTZ Negative List allows foreign investors to operate in non-restricted sectors with minimal red tape. Business registration takes just three days, and planning approvals are processed within seven days, enabling swift market entry for UK firms.
• Pioneering Data Export Rules: In 2024, the TJFTZ introduced China’s first data export negative list, simplifying cross-border data transfers. This is a boon for UK tech and e-commerce companies navigating China’s complex data regulations.
• Tax Breaks: Companies in priority sectors like R&D, advanced manufacturing, and civil aviation enjoy corporate income tax rates of 9–15%, compared to China’s standard 25%. This could significantly boost profitability for UK businesses in these fields.
• Trade and Logistics Facilitation: Goods within the TJFTZ are exempt from import/export licences (unless otherwise specified), and processing, storage, and re-export activities benefit from tax exemptions. Unlimited storage periods and duty-free re-exports further enhance cost efficiencies.
• Financial Incentives: The absence of currency exchange fees and streamlined international payment procedures make cross-border transactions seamless. Faster VAT refunds post-export add to the zone’s appeal.
• International Trade Agreements: The TJFTZ actively leverages agreements like RCEP, CPTPP, and DEPA. In 2023, Tianjin enterprises saw £1.4 billion in RCEP-related trade, with a 79% year-on-year increase, offering UK firms a foothold in these lucrative frameworks.

Economic Performance: A Steady Ascent

While comprehensive GDP and FDI data for the TJFTZ are not fully public, available metrics highlight its resilience. The zone’s foreign trade value has remained stable at £27 billion annually (2019–2023), with foreign capital utilisation rising from an average of £3.7 billion (2018–2020) to £4.6 billion (2021–2023). The Binhai CBD posted a 5.5% GDP growth in 2024, outpacing China’s national average. The number of registered businesses has soared from 69,000 in 2020 to nearly 90,000 in 2025, underscoring the zone’s growing appeal.

Future Prospects and UK Relevance

The TJFTZ is poised for further growth, with initiatives like a new e-commerce returns storage centre to cut return times from 11 to 5 days and £5.1 billion in funding for 107 new projects launched in April 2024. These developments signal a commitment to enhancing the zone’s business environment, particularly for e-commerce and tech firms, sectors where the UK excels.

For British businesses, the TJFTZ offers a strategic entry point into China’s northern market, bolstered by its proximity to Beijing and integration with global trade networks. The zone’s focus on open banking and cross-border e-commerce aligns with the UK’s strengths in financial services and digital trade. Moreover, its liberalised policies and tax incentives provide a competitive edge for UK SMEs and multinationals alike.

The Tianjin Free Trade Zone is more than a shipping hub; it’s a dynamic platform for UK businesses to engage with China’s economic powerhouse. From tax breaks and streamlined regulations to pioneering data policies, the TJFTZ offers a wealth of opportunities for British firms in aviation, finance, logistics, and beyond. As the zone continues to innovate and expand, UK companies looking to break into or grow within the Chinese market would be wise to explore its potential. For further guidance on navigating the TJFTZ, the China-Britain Business Council offers tailored support to help British firms seize these opportunities.

The post Tianjin Free Trade Zone: A Gateway for UK Businesses in Northern China appeared first on Focus - China Britain Business Council.

Over the last 10 years, the growth in China’s robotics industry has been nothing short of staggering. Back in 2013, China accounted for just 14% of global industrial robot installations, according to the International Federation of Robotics (IFR). Fast forward to 2022, and that figure had soared to 52%, with 290,144 units installed in a single year. By 2023, China’s robot density – robots per 10,000 manufacturing workers – hit 470, overtaking Germany (429) and Japan (419), and trailing only South Korea and Singapore. This leap reflects a decade of aggressive government policies, like the “Made in China 2025” initiative and the 14th Five-Year Plan, which earmarked robotics as a cornerstone of industrial innovation.

The value of this sector is equally impressive. In 2021, the Chinese Institute of Electronics pegged the robotics industry at 83.9 billion yuan (£9.2 billion), split between industrial robots (44.6 billion yuan) and service robots (39.3 billion yuan). By 2022, revenue climbed to 170 billion yuan (£18.6 billion), and forecasts suggest a compound annual growth rate (CAGR) of 20% through 2025. Today, the market size is estimated at around £6.6 billion, with projections pointing to £375 billion globally by 2035, where China will undoubtedly claim a hefty slice. The benefits are manifold: robots boost productivity, slashing labour costs amid a shrinking workforce – China’s working-age population is expected to drop from 998 million in 2014 to 800 million by 2050. They also tackle the “four D’s” – dirty, dangerous, dull, and dedicated tasks – freeing humans for higher-value work while driving efficiency in industries like automotive and electronics.

Leading the charge are homegrown giants like Inovance, often dubbed “Little Huawei” for its ex-Huawei engineering roots. Inovance has carved out a niche in industrial automation and electric vehicle motors, capturing a growing share of a market once dominated by foreign firms. Then there’s Siasun, a pioneer in AI-powered robotics, and Ubtech, a Shenzhen-based firm excelling in humanoid robots and education tech. Double Ring Transmission (Shuanghuan Chuandong) is another standout, challenging Japan’s dominance in precision components like RV reducers, where it holds a 14% share. These companies reflect a shift: Chinese firms now account for 47% of the domestic market, up from 28% a decade ago.

China hasn’t just nurtured its own talent, it’s cast a net abroad. While direct acquisitions of foreign robotics firms are less common due to tightened Western regulations, partnerships and investments abound. Major Western players like ABB (Switzerland), Fanuc (Japan), and Yaskawa (Japan) have poured resources into China, building massive factories in Shanghai and beyond. ABB and Fanuc’s Shanghai plants are among the world’s largest, while Yaskawa’s three factories churn out 18,000 units yearly. These ventures often involve technology transfers, bolstering local expertise. However, China’s appetite for outright ownership has been curbed – think of the EU’s rejection of Amazon’s bid for iRobot, a signal of wariness about Chinese influence.

Geographically, the robotics boom isn’t uniform. The Yangtze River Delta – Shanghai, Kunshan, Nanjing – leads with its industrial base and startup ecosystem. Shenzhen, dubbed China’s Silicon Valley, thrives on electronics and innovation, hosting firms like Ubtech. Guangzhou dominates in automotive robotics, with companies like GAC Group pushing boundaries. Suzhou, with over 600 robotics-related firms generating 130 billion yuan (£14.2 billion) in 2023, is a hub for components and AI integration. Chengdu, meanwhile, is emerging in aerospace and defence robotics, buoyed by government-backed industrial parks.

The ripple effects extend to accompanying industries. Automotive and electronics, China’s manufacturing titans, lean heavily on robots for assembly and precision work. New energy sectors like lithium batteries and photovoltaics saw robot demand surge by 131% and 51%, respectively in 2021. Logistics and warehousing, turbocharged by e-commerce, benefit from AI-driven automation, while healthcare and agriculture are dipping their toes into robotic waters, from surgical bots to planting drones. As Daisy Zhang of Macquarie Group has noted, “The continuous increase in the industrial robot industry chain has lowered the capital threshold for enterprises to carry out automation transportation,” highlighting how this ecosystem fuels broader economic shifts.

Looking ahead, the future is bright – and robotic. China aims to be a global innovation hub by 2025 and a world leader by 2035, per its Five-Year Plan. With over 190,000 robot-related patents (two-thirds of the global total) and breakthroughs in AI, 5G, and IoT, the sector’s poised for exponential growth. Analysts predict 5-10% annual increases in robot stock through 2027, driven by domestic champions and cost advantages. Robert D. Atkinson of the Information Technology and Innovation Foundation (ITIF) warns, “It is likely only a matter of time before Chinese robotics companies catch up to the leading edge,” suggesting a seismic shift in global competition.

For British companies, this spells opportunity. China’s need for cutting-edge tech opens doors for collaboration – think software solutions like those from Motus Operandi, or precision engineering expertise. The UK’s strengths in AI and automation could find an eager market, especially in service robotics or niche industrial applications. Yet, challenges loom: navigating joint ventures and government oversight requires savvy. As Martin Kefer of Motus Operandi cautioned, “Avoid relying on government for growth,” urging firms to lean on innovation and agility.

In short, China’s robotics industry is a juggernaut – decades in the making, billions in the bank, and boundless in ambition. For Britain, it’s a chance to ride the wave, if we play our cards right.

The post China’s robotics industry: Ambition, investment, modernisation appeared first on Focus - China Britain Business Council.

In 2025, China’s evolving consumer preferences, policy shifts, and technological advancements will shape opportunities for businesses and investors alike. From the rise of green technologies to the growing appetite for health-conscious products, the country offers lucrative avenues for foreign firms ready to adapt to its unique market dynamics.

However, thriving in China’s competitive environment requires more than just identifying growth areas. Businesses must navigate complex regulatory frameworks, cultural nuances, and a fast-paced digital transformation. By understanding the opportunities and challenges in key sectors, companies can position themselves effectively to succeed in one of the world’s most dynamic markets.

Top industries to watch in 2025

Green energy and renewables: China’s commitment to achieving carbon neutrality by 2060 has accelerated investments in renewable energy sources, including solar, wind, and hydrogen. The government’s supportive policies and substantial funding are creating a fertile environment for innovation and growth in this sector.

Electric vehicles (EVs): As the world’s largest market for electric vehicles, China continues to drive the global EV industry forward. With increasing consumer adoption and government incentives, opportunities abound for companies involved in EV manufacturing, battery technology, and charging infrastructure.

Artificial intelligence (AI): China’s strategic focus on AI development is fostering advancements across various applications, from smart manufacturing to autonomous driving. The integration of AI into business processes is enhancing efficiency and creating new market opportunities.

Healthcare and biotechnology: An ageing population and rising health consciousness are propelling growth in China’s healthcare and biotech sectors. There’s a growing demand for advanced medical devices, pharmaceuticals, and healthcare services, presenting significant opportunities for foreign investors.

Advanced manufacturing: China’s push towards high-tech manufacturing is transforming traditional industries. The adoption of smart factory technologies and automation is enhancing productivity and competitiveness, opening doors for companies specialising in industrial robotics and related technologies.

Navigating challenges in China’s top industries

While these sectors offer promising opportunities, foreign businesses must be prepared to navigate China’s complex regulatory landscape and intense competition from local players. Compliance with evolving laws, such as data protection regulations and sector-specific restrictions, is crucial. Additionally, understanding cultural nuances and consumer behaviour is essential for market success.

China’s strategic focus on green energy, electric vehicles, AI, healthcare, and advanced manufacturing presents lucrative opportunities for foreign businesses and investors in 2025. By staying informed about industry trends and regulatory developments and by adapting to the unique dynamics of the Chinese market, companies can position themselves for success in these burgeoning sectors.

The post What are the top 5 industries to watch in China? appeared first on Focus - China Britain Business Council.

China and the UK are the largest and ninth-largest manufacturing countries in the world respectively. Despite both countries having made great efforts in developing the green manufacturing sector, there remains a lot of potential for joint projects and initiatives.

A new report produced by CBBC, the Department for International Trade (DIT) of the UK government, and the Centre for International Economic and Technological Cooperation of the Ministry of Industry and Information Technology of China (CIETC-MIIT) aims to explore the scope, attributes, and strengths of green manufacturing in both countries, identify opportunities, and make recommendations for governments, industries and researchers in order to boost trade, investment, and international cooperation between China and the UK. (Click the link at the bottom of this article for the full report).

First off, what exactly is green manufacturing?

There are a number of attributes that can be used to characterise or define green manufacturing:

1. Green manufacturing companies embrace the challenge of de-carbonising at scale and are committed to a net zero or carbon neutral pathway and target.
2. Green manufactured products deliver economic, social and environmental benefits.
3. Green manufacturing companies embrace the circular economy and other strategies to maximising value from resources.
4. Green manufacturing companies and products do not have adverse effects on biodiversity or human health and wellbeing.
5. Green manufacturing companies seek external independent validation of their progress through certification of their plants and operations, their energy, carbon, and resource footprint, or their labelling of products.

The UK is at the forefront of creating the standards and certifications that are used by green manufacturing companies. For example, the world’s first product carbon footprint standard, PAS 2050, was developed by the British Standards Institute.

Comparing a circular economic model and a linear economic model

Green manufacturing in the UK

Green manufacturing in the UK is not just about the goods it makes or the way in which they are produced, but also about the people that make them and the spaces, regions, and ecosystems in which they are made. The UK manufacturing industry excels in areas such as clean technologies, energy efficiency, eco-design, and new and sustainable business models, and the UK government has made great efforts to support green manufacturing geared towards a circular economy.

According to a 2016 UK parliamentary report, a more circular UK economy could be worth £9-29 billion a year and would create 10,000-175,000 jobs across different skill levels by 2030. At the same time, a survey conducted by the Office for National Statistics revealed that the low carbon manufacturing industry was estimated to be worth £15 billion and employed a total of 83,600 people in 2018.

Who are the main stakeholders in green manufacturing?

Case Study: A car manufacturing start-up for hydrogen-powered fuel cell electric vehicles

Riversimple is a UK car manufacturing start-up for hydrogen-powered fuel cell electric vehicles founded by former motorsport engineer and racing driver Hugo Spowers. The company is not only developing revolutionary technologies for next-generation cars, which are lightweight, fast, and sustainable, it also follows a unique value proposal focused on the “systematic elimination of the environmental impact of personal transport.”

Technological innovation is not sufficient to achieve sustainability. It requires a system change and innovations in business models to make sectors such as car manufacturing more sustainable. Riversimple puts a substantial amount of effort into developing sustainable business models. It is a car company, but it does not sell cars; instead of selling cars, the company sells mobility as a service (e.g., the use of cars and customer use of mileage).

I am pleased to see the UK and Chinese governments, academics, industrial associations and businesses working together to deepen international cooperation and boost bilateral trade and investment. I hope the cooperation mechanisms and case studies shared in this report will accelerate the future development of the green manufacturing industry and intensify international cooperation.
– John Edwards, Her Majesty’s Trade Commissioner for China, Department for International Trade

In the Riversimple model, car users are charged for miles travelled plus a monthly fee, or are given a fixed price three-year leasing fee covering all services, such as maintenance, road tax, insurance and, importantly, fuel. Retaining the ownership of the cars, the company has more incentive to design a car that lasts longer and can be more easily reused, re-manufactured and recycled.

Green manufacturing in China

China became the world’s biggest manufacturing economy in 2010 when it surpassed the manufacturing output of the US. Today, China is the only nation that meets all the industrial categories in the United Nation’s International Standard Industrial Classification for All Economic Activities (ISIC). Although its manufacturing industry generates great wealth, it also leads to substantial ecological and environmental problems with an ever-expanding demand for energy and resources and increasing emissions.

Nevertheless,  green manufacturing is being applied as a modern manufacturing model that considers the environmental impact and resource benefits. The Ministry of Industry and Information Technology (MIIT) — specifically, the Department of Energy Conservation and Comprehensive Utilisation — takes the lead in green manufacturing in China.

In 2015, with the implementation of the Manufacturing Power Strategy, green industrial development was promoted to new heights, and green manufacturing was regarded as one of the five key national projects. The Environmental Protection Law, the Law of Prevention and Control of Water Pollution, and other important laws have been revised, and the legal protection system has been improved greatly. Policies implemented include the Manufacturing Power Strategy and the Plan of Green Industrial Development (2016–2020), and the Guide for Green Manufacturing Engineering Implementation (2016-2020).

Read more about green manufacturing policies and opportunities in both countries, as well as some of the companies at the forefront of green manufacturing innovations, in the full version of the UK-China Green Manufacturing Report in English here

The post Where do China and the UK stand on green manufacturing? appeared first on Focus - China Britain Business Council.