Are there any sectors that L&P is specifically targeting from China?

London & Partners is focusing on supporting Chinese investment into areas where London is really strong or is looking to develop its global reputation in new tech of the future. This includes technology which London has traditionally been strong in, like FinTech, AI and green finance. Financial services and real estate are still big areas of interest, too. There’s also growing attention on creative industries, healthcare, and green energy as Chinese investors look for diverse opportunities in London.

What kind of London businesses has China traditionally invested in?

Chinese investors have traditionally put their money into real estate and financial services in London. But over time, we have seen this shift into technology, especially AI and FinTech, as well as renewable energy. This shift shows how Chinese companies are looking to get into new and innovative industries that fit with their global goals.

How has investment from China changed over the last decade?

Over the last ten years, Chinese investment in London has changed a lot. It started with a focus on real estate and infrastructure, but now Chinese companies are investing more in technology, healthcare and creative industries. There are more Chinese-led projects in London now (over 200 since 2013), that are creating jobs (more than 16,000 since 2013) and bringing in money (over £7.5 billion since 2013), which shows how Chinese investors are looking for new markets and advanced technologies.

What are the biggest opportunities for Chinese businesses investing in London?

London offers many opportunities for Chinese businesses, especially in technology, where it’s a world leader in FinTech and AI. There are opportunities for London and China to collaborate around technologies that are addressing some of the major challenges we both face – these are global challenges and need global solutions. London is good at that. Financial services are also a big draw because London is a major financial hub. London’s lively cultural scene offers unique chances in creative industries, and the city’s focus on sustainability makes it a great place for investments in green technology and energy.

How much does cultural influence and the UK’s soft power attract Chinese investors?

The UK’s cultural appeal plays a big role in attracting Chinese investors. London’s rich history, top universities and global arts scene make it a very attractive place for Chinese businesses. These factors, along with London’s reputation as an international hub, help bring in Chinese companies that want to build their global presence.

Are there any good examples of Chinese companies launching (or investing in) London in recent years?

Yes, several big Chinese companies are investing in London. For example, we have seen major commitments from Chinese electric vehicle manufacturers in the UK and London specifically. BYD, the world’s largest maker of electric vehicles, has set up its UK office in London and has delivered over 1,000 electric buses to the city. Chinese real estate developers are also buying and building properties in London. Plus, Chinese banks have opened offices in London, highlighting how important the city is for global finance. Overall, London is the second largest destination city for Chinese foreign direct investment (FDI), behind only Singapore.

How important is the tech business to London investment, and how does the UK compare with other major European markets when it comes to being regarded as a tech capital?

Technology is really important to why investors choose London. London is Europe’s leading and largest tech hub, especially in FinTech, AI and cybersecurity. It has grown in size over the last decade from $70 billion to over $620 billion, with more growth capital and unicorns than anywhere else in Europe. This strong tech scene attracts many Chinese investors, who find London’s mix of tech, financial services, and academic excellence particularly appealing.

2025 will see the first SXSW London – can you tell us more about how this came about and the reasons it is coming to London?

SXSW coming to London in 2025 is really exciting. London’s lively arts scene and strong focus on tech and creativity make it an ideal place for such an event. This decision shows that London is a leading city for fresh ideas and creative thinking.

The post How Chinese investment in London is changing and growing appeared first on Focus - China Britain Business Council.

The hall at London’s Battersea Power Station is packed, full of start-ups, innovators, entrepreneurs, and scale-ups, all eager to absorb insights from the expert panel of tech companies, venture capitalists, investors, and futurists gracing the stage. This was the Future Horizons event, part of the annual Grow Summit presented by London and Partners. Speakers included executives from Mastercard, a16Z, Fidelity and other renowned entrepreneurs and business leaders such as Baroness Martha Lane-Fox of Soho, the co-founder of Lastminute.com, and Reid Hoffman, founder of LinkedIn.

Organisers London and Partners champion London as a rival to Silicon Valley, positioning it as a global investment hub with a strong emphasis on the tech industry.

Janet Coyle CBE, the organisation’s Managing Director of Business Growth, is heading to China to speak at the upcoming CBBC conference on the Greater Bay Area (GBA). She aims to attract the growing number of Chinese tech companies based in the GBA to invest in London.

“The GBA is by far generating the most opportunity. Fifty to sixty per cent of all our business comes from that area,” Coyle says. “We identify companies looking to expand into Europe, and we want them to choose London,” she adds. London and Partners is partly funded by the Greater London Authority, with the remaining funds self-sourced through sponsorships and events. Their primary goal is to draw investment into the capital, mostly through foreign direct investment (FDI) and by supporting companies looking to expand into London. They also attract and bid for major international business events and conferences, attract tourism, and assist London companies in going global.

Coyle acknowledges that recent geopolitical tensions have impacted London-based companies eyeing expansion into China. Still, she notes that Chinese interest in the UK remains strong.

For Coyle and her team, attracting Chinese companies to the capital is a complex and often slow process. Identifying suitable companies, understanding their needs, building relationships, and facilitating their launch in London can take years. Coyle cites Chinese FinTech company Ping Pong and electric car company BYD as recent high-profile successes.

Coyle explains that inbound Chinese investment slowed somewhat due to the Covid-induced pause and a focus on domestic growth keeping many companies from expanding abroad. However, she notes, “now we’re starting to see the momentum building. London is home to the second-highest number of Chinese companies after Singapore.

“Chinese companies want to come because of the business infrastructure, the talent, the innovation, and the available growth capital,” she emphasises. “Despite global trends, we are still seeing VCs investing, and London remains a great place to live, with a large Chinese community.”

Over the last six months, London and Partners has regularly connected scale-ups to corporates. Previously limited to London companies, their “meet the corporate” programmes are now open to any global scale-up.

“Whether it’s a company from Shanghai or Shoreditch, they all want the same things: access to customers, money, growth capital, talent, and ideally, access to new markets,” Coyle says. “If we’ve got a company from Shanghai interested in electric vehicles or wanting to connect with, for example, City Hall, we can now make that happen.”

While London and Partners is not a lobbying organisation and align with government decisions, they can assist Chinese tech companies in finding their feet in London, with a predominant focus on sustainability, enterprise, fintech, cyber, creative tech, and health tech or life sciences.

“What’s driving global FDI flow is sustainability right now,” Coyle states. “And wherever you go, including China, everyone is asking about sustainability. London is ranked number one globally for Green Finance.”

In addition to clean tech and sustainability, health tech, and mobility, there is a strong demand for creative tech – immersive, gaming, VR, AR – though Coyle admits that FinTech will always be strong for London.

“As a city, we have reinvented ourselves over hundreds of years and are used to it. Whether it’s Covid-19 or global downturns, we have incredible entrepreneurs who get us out of this and build incredible pieces of tech,” she concludes. “FinTech emerged from a huge crash, creating a new model for banking. London stands strong in times like this.”

The post Why GBA tech companies should invest in London appeared first on Focus - China Britain Business Council.