The North West of England has always been a land of reinvention. Once the beating heart of the Industrial Revolution, its cotton mills and shipyards powered Britain to global dominance. Today, this resilient region has evolved into a modern economic juggernaut, with a gross value added (GVA) of £196.8 billion in 2022. It’s the second-largest regional economy outside London and the South East, a powerhouse of advanced manufacturing, life sciences, digital innovation, and green energy. What’s more, its strategic importance is increasingly tied to international partnerships – none more significant than its deepening ties with China. From nuclear energy to electric vehicles, Chinese firms are leaving an indelible mark on the North West, helping to shape its future as a global player.

The industrial diversity of the North West of England is staggering. Aerospace giants like BAE Systems churn out cutting-edge defence technology in Samlesbury and Warton, employing thousands of people and generating billions annually for the UK’s export market. Just across the border in Broughton, Airbus’s wing-manufacturing site supports another 6,000 jobs, its production lines humming with orders for next-generation aircraft. Meanwhile, the automotive sector is racing toward a greener future. Vauxhall’s Ellesmere Port plant, retooled in 2023 to produce electric vans, now sustains 1,200 jobs, while Jaguar Land Rover’s Halewood facility in Merseyside has fully transitioned to electric vehicle production, adding 800 new positions in the past year alone.

But it’s not just traditional industries driving growth. The North West is emerging as a leader in life sciences and digital technology, bolstered by world-class universities and a knack for attracting global investment. Chinese companies, in particular, have taken notice, pouring billions into the region and forging partnerships that promise to redefine its economic landscape.

Life sciences and innovation: A prescription for progress

In Cheshire, the sprawling Macclesfield campus of AstraZeneca stands as a testament to the North West’s prowess in life sciences, producing medicines that reach over 120 countries. Nearby, Alderley Park has morphed from a single-tenant pharma site into a buzzing biotech hub hosting over 200 companies.

Manchester, too, is a hotbed of medical innovation. The city’s ‘Science Corridor,’ anchored by the University of Manchester, is a global leader in advanced materials like graphene and pioneering cancer research. The £400 million Health Innovation Campus, set to open fully in late 2025, is already creating 3,000 jobs and fostering collaborations with firms worldwide. Chinese pharmaceutical companies, such as Sinopharm, have expressed interest in joint ventures here, eyeing the region’s research capabilities to accelerate drug development.

Digital dynamism: The North West tech boom

If life sciences are the North West’s brain trust, its digital sector is the beating pulse. Manchester has cemented its status as Europe’s fastest-growing tech hub outside London, with the Greater Manchester Combined Authority reporting a £5.5 billion annual contribution to the economy in 2024. MediaCityUK in Salford, now a £1.2 billion creative and digital quarter, employs 8,000 people and hosts giants like the BBC and ITV alongside a thriving startup scene. In cybersecurity, AI, and gaming, the region is punching above its weight, home to firms like NCC Group and Team17.

Liverpool’s digital renaissance is equally compelling. The Baltic Triangle, a former industrial wasteland, now teems with tech startups and creative studios, generating £300 million annually, according to Liverpool City Council. The Liverpool Film Office, meanwhile, has turned the city into a Hollywood darling, raking in £30 million in 2024 from productions like The Batman. Chinese tech titan Huawei has taken note, employing a growing number of people at its Manchester R&D centre, where it collaborates with the University of Manchester on graphene applications and 5G infrastructure, a partnership that’s yielded 15 patents filed in the UK since 2022.

Green energy: Powering a sustainable future

The North West of England is also at the forefront of the UK’s green revolution. Off the Cumbrian coast, the Walney Extension offshore wind farm – still the world’s second-largest – powers 650,000 homes with its 659 MW capacity, per Ørsted’s 2025 update. The £3 billion HyNet North West project, meanwhile, is on track to launch the UK’s first low-carbon hydrogen network by 2027, slashing regional CO₂ emissions by 12 million tonnes annually by 2030. Nuclear energy remains a cornerstone, with Sellafield in Cumbria employing 11,000 people and managing the UK’s nuclear legacy.

China’s footprint in this sector is unmistakable. China General Nuclear (CGN) holds a 33.5% stake in the Hinkley Point C project and has its sights on further nuclear developments in the North West, including the proposed Moorside plant near Sellafield. If approved, Moorside could generate 3,200 MW, enough to power 6 million homes, and create 20,000 construction jobs, per a 2024 government feasibility study. Chinese wind giant Goldwind is also in talks to supply turbines for future offshore projects in the Irish Sea, capitalizing on the region’s renewable potential.

China’s economic imprint: A £2.5 billion boost

Chinese investment in the North West has surged in recent years, drawn by its industrial heritage and strategic position.

Trade between the North West and China hit £8.4 billion in 2024, up 12% from the previous year, according to HM Revenue & Customs data, with exports like machinery and pharmaceuticals leading the charge.

A 2025 report by the China-Britain Business Council (CBBC) pegs the annual economic contribution of Chinese firms in the region at £2.5 billion, supporting 15,000 jobs. Beyond Huawei’s tech ventures, electric vehicle leader BYD has rolled out 300 electric buses across Liverpool and Manchester since 2022, cutting urban emissions by an estimated 10,000 tonnes annually, per Transport for Greater Manchester. Ping An, the Chinese insurance behemoth, has partnered with Manchester’s fintech ecosystem, investing £150 million in startups like OakNorth and Monzo since 2023.

Government backing and visionary leaders

The UK government is doubling down on the region’s potential. The Northern Powerhouse Investment Fund has facilited £1.2 billion of funding into North West businesses since 2017, while the Mersey Gateway Freeport, launched in 2024, offers tax breaks that have lured £800 million in foreign direct investment, per the Department for Business and Trade. Henri Murison, Chief Executive of the Northern Powerhouse Partnership, is a vocal advocate for more. “The only way to create better paid jobs and with it higher living standards is to bring private sector jobs to this part of the country and I think we have a government now with a growth mission who has every intention of seeking to pursue that agenda with real vigour,” he said in an interview with The Northern Echo.

Greater Manchester Mayor Andy Burnham shares that ambition. “Our goal is to make Greater Manchester a top European destination for business and innovation,” he declared at a 2025 economic summit, spotlighting projects like the £1.5 billion Atom Valley advanced manufacturing hub, which broke ground in January. Together, these efforts signal a region on the cusp of a new golden age.

The Road Ahead: A UK-China Partnership in the Making

The North West’s future shines brightest where UK ingenuity meets Chinese scale. In renewable energy, firms like CGN and Goldwind could turbocharge offshore wind and hydrogen projects, while in life sciences, collaborations with Chinese giants like Fosun Pharma could fast-track breakthroughs in precision medicine. Aerospace offers another frontier—imagine BAE Systems partnering with China’s COMAC to crack new markets in Asia.

For investors, the North West is a goldmine of opportunity. With its blend of heritage and innovation, bolstered by £2.5 billion in Chinese capital and counting, the region is poised to lead the UK—and perhaps the world—into a new era of industrial and technological dominance. Its best days, as the numbers and ambition suggest, are still ahead.

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Chaired by Huang Shan, Director and Senior Fellow at Caixin Insight, the discussion featured insights from Joe Li, Head of China Desk at HSBC; Yang Ming, CEO of Westwell Holdings; Natasha Luther-Jones, Global Head of Energy and Global Resources Sector at DLA Piper; and John Dykes, Sales Director for Ming Yang Smart Energy. The panel explored how the UK can attract Chinese investment, the role of policy and infrastructure, and the synergies between the two economies in sectors like green energy and advanced manufacturing.

Huang Shan opened the discussion by referencing UK Prime Minister Keir Starmer’s commitment to cutting bureaucracy and creating a stable investment environment. “Starmer has emphasised the need to rip up red tape and ensure stability to attract investment,” she said. This sentiment was echoed by Joe Li, who noted the improving ties between the UK and Chinese governments. “It’s good to see the adults back in the room. The relationship is now being handled in a sensible and pragmatic way,” Li remarked. He highlighted HSBC’s unique position as a British bank with deep roots in China, symbolised by its name, which includes two Chinese cities. “We are at the core of this conversation, and we’ve already seen a significant increase in enquiries from Chinese investors,” he added.

Li also shared HSBC’s efforts to bridge the gap between UK SMEs and Chinese markets. “Last year, we took 20 SMEs on a week-long trip to China, and this year we plan to take 40 clients on a two-week trip. The interest is growing rapidly,” he said. However, he acknowledged the challenges posed by the UK’s regulatory environment, particularly in sectors like green energy. “When you have 4,000 documents required for planning permission, it’s hard for Chinese investors to understand. Grid reform is another major obstacle, with 700 megawatts of power projects pending due to outdated assessment processes,” Li explained. He welcomed recent efforts to prioritise “ready-to-go” projects, calling it a positive cultural shift.

Yang Ming, CEO of AI company Westwell Holdings, made his first public appearance in the UK at the forum, expressing optimism about the UK market. “The UK is a great market, with its ports, supply chains and growing demand for smarter, greener solutions,” he said. Westwell’s AI-powered autonomous trucks have been operational at Felixstowe, the UK’s largest port, for two years, improving efficiency and reducing carbon emissions. “Our focus is not just on what we do but on driving industrial change. The UK’s world-leading educational institutions and innovation hubs, like our partnership with a centre in Hong Kong, are key to this,” Yang added.

Natasha Luther-Jones provided a legal perspective on inward investment, particularly in the energy sector. She highlighted the National Security and Investment Act as a key concern for Chinese investors. “Energy is one of 17 sectors affected by the act, so each case needs to be assessed individually,” she said. Luther-Jones advised companies to make voluntary notifications to avoid delays, noting that only five out of 150 cases had been called in for review, with none being blocked outright. She also emphasised the importance of planning consents, local workforce considerations, and the potential for change-of-control issues. “Grid reform, expected in the first half of this year, will be a game-changer. It will prioritise projects that are ready to go, addressing the backlog of ‘zombie projects’ that have grid connections but lack land rights or funding,” she explained.

Luther-Jones also touched on the geopolitical dynamics shaping the energy sector. “European OEMs are struggling to meet demand, and Chinese manufacturers like Ming Yang are stepping in. For example, a German fund recently chose Chinese turbines over European ones because they were the only ones meeting the required specifications,” she said. She predicted that the UK and Europe would increasingly rely on Chinese manufacturers to meet net-zero targets, particularly in wind and battery storage. “The difficulty with net zero will be in heat, not power. We’ve seen this shift with solar, and now we’ll see it with wind and storage,” she added.

John Dykes, representing Ming Yang Smart Energy (MYSE), outlined the company’s strategy for aligning with the UK’s growth goals. “We focus on technology adaptation, innovation, and market integration,” he said. MYSE’s European R&D centre collaborates with top institutions to develop next-generation turbines and smart grid technologies. “Our aim is to meet UK and EU standards while contributing to net-zero goals,” Dykes explained. He highlighted the booming global demand for clean energy as a tailwind for MYSE, driven by sectors such as data centres and electric vehicles. “Policy incentives and technological innovation are key growth drivers. For example, our twin-rotor turbines maximise efficiency, and we’re now selling them globally, with plans to expand further west,” he said.

However, Dykes also acknowledged the headwinds facing the industry. “Inflation in raw materials like aluminium, copper, and resin has created significant challenges. Contracts signed years ago at outdated prices can lead to heavy losses,” he said. Regulatory compliance and the need to build trust with local suppliers were additional hurdles. “For a Chinese OEM, engaging local suppliers is crucial. It’s not just about investment; it’s about creating relationships and upskilling the workforce,” Dykes added.

The panel concluded with a consensus on the immense potential for UK-China collaboration, particularly in green energy and advanced manufacturing. Huang Shan summarised the discussion by emphasising the importance of stability, policy clarity, and cultural understanding. “The UK offers a wealth of opportunities, but to fully capitalise on them, we need to address regulatory barriers and build trust. Chinese investors are looking for long-term partnerships, and the UK has the expertise and infrastructure to make these partnerships successful,” she said.

As the forum demonstrated, the UK and China are at a pivotal moment in their economic relationship. With the right policies, infrastructure, and collaboration, the two nations can unlock significant mutual benefits, driving innovation and sustainability in an increasingly interconnected world.

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The historical context of UK-China economic relations

The UK-China economic relationship is grounded in a history of trade and investment. Key milestones in recent years include the establishment of the UK-China Economic and Financial Dialogue (EFD) in 2008, which provided a framework for discussing shared economic priorities. Over the years, this dialogue has fostered greater cooperation, helping to align mutual interests in trade, investment, and innovation.

However, the hiatus in EFD meetings, which spanned six years, reflects the complexities within which the potential role of China in the UK’s growth agenda operates. However, the resumption of the EFD during UK Chancellor of the Exchequer Rachel Reeves’ visit to Beijing in January 2025 signals a renewed commitment to finding common ground. The agreements secured during this visit – including new licences and quota allocations for UK financial firms such as HSBC, Schroders, abrdn and Aspect Capital and commitments to address market access in China for law firms, engineers, and accountancy qualifications, among many others – highlight the potential for a more collaborative and prosperous partnership.

Commenting on the resumption of the EFD, CBBC President Lord Sassoon said: “UK-China economic and financial dialogues have had a significant impact on generating investment, jobs and profitable business for the UK over many years. The resumption of the EFD is welcomed by our members, both in financial and professional services, but also across the wider economy.”

Current economic ties and investment landscape

China is currently the UK’s fourth-largest trading partner, with bilateral trade amounting to over £100 billion annually. British exports to China span a wide range of sectors, including automotive, pharmaceuticals, and financial services, collectively supporting hundreds of thousands of UK jobs – over 129,000 jobs according to a 2020 Cambridge Econometrics report. Chinese investments in the UK have been similarly diverse, covering infrastructure, renewable energy, and advanced manufacturing.

During Chancellor Reeves’ January 2025 visit, agreements worth £600 million were announced, focusing on areas such as financial services, trade facilitation, and climate-focused initiatives. These deals underscore the breadth of opportunities available for both countries to enhance economic cooperation. Indeed, a recent survey of over 120 CBBC member companies revealed that nearly 70% feel optimistic about their organisations’ business prospects in China over the next 5 to 10 years.

The role of Chinese investment in the UK growth agenda

Chinese investments have proven to be a significant driver of growth in various sectors critical to the UK’s economy.

In the renewable energy sector, Chinese companies have played a pivotal role in developing solar and wind energy projects, aligning with the UK’s priorities of reducing carbon emissions and transitioning to a sustainable energy future.

In 2017, China Resources National Corporation acquired a 30% stake in the Dudgeon offshore wind farm off the Norfolk coast for £600 million. This investment not only provided capital for the UK’s renewable energy infrastructure but also facilitated knowledge exchange in offshore wind technologies. Chinese companies Mingyang Smart Energy and Orient Cable are in discussions to establish factories in Scotland, focusing on offshore wind farm components. These initiatives align with the UK’s net-zero targets by enhancing domestic manufacturing capabilities in the renewable energy sector.

The technology sector has also benefited from Chinese partnerships, with investments enabling advancements in areas such as artificial intelligence (AI), telecommunications and fintech. For example, Ping An Insurance, a major Chinese financial services company, has been a significant investor in 10x Future Technologies Ltd, a London-based fintech firm. In 2021, Ping An participated in a $187 million Series C funding round, supporting the development of advanced banking technologies.

Opportunities for collaboration

Emerging industries present promising avenues for deeper UK-China collaboration. Green energy remains a key area of focus, with both nations investing heavily in wind, solar and hydrogen technologies. The financial services sector also holds potential for expanded partnerships, particularly in areas like fintech, insurance and green finance, where China’s expertise can complement UK initiatives.

Furthermore, the UK’s education sector continues to benefit from strong ties with China. With thousands of Chinese students enrolled in UK universities, there are opportunities to strengthen academic and research partnerships. Collaborative projects in science and technology could further enhance the innovation ecosystem, driving growth in both nations.

Efforts to improve trade facilitation, such as reducing barriers to market access and enhancing regulatory alignment, are also underway. These initiatives aim to create a more conducive environment for businesses in both countries to thrive.

Navigating challenges

Despite the evident benefits of Chinese investment, challenges remain. Concerns over national security have led to increased scrutiny of Chinese involvement in critical sectors, such as telecommunications and nuclear energy. Policymakers have sought to balance economic openness with the need to safeguard sensitive infrastructure and technology.

Human rights concerns have also influenced the discourse around UK-China relations, with some calling for a more cautious approach to engagement. The UK government must navigate these complexities carefully, ensuring that economic collaboration does not compromise ethical and strategic considerations.

Additionally, geopolitical tensions, such as those related to the ongoing US-China trade war, have implications for the UK’s approach. Maintaining a pragmatic stance will be essential for fostering a stable and mutually beneficial partnership with China, as Chancellor Rachel Reeves emphasised during her recent visit to China: “…pragmatic cooperation between the world’s largest economies can help us boost economic growth for the benefit of working people – a priority of our Plan for Change,” the Chancellor said. “More widely, today is a platform for respectful and consistent future relations with China. One where we can be frank and open on areas where we disagree, protecting our values and security interests, and finding opportunities for safe trade and investment.”

Conclusion

China’s role as a strategic investment partner is crucial to the UK’s economic growth agenda. From renewable energy to technology and financial services, Chinese investments have the potential to drive innovation, create jobs, and enhance the UK’s global competitiveness. While challenges persist, a balanced and pragmatic approach can ensure that this partnership delivers mutual benefits.

The 2025 UK-China Business Forum is a full-day conference focused on the theme of UK-China partnerships and the opportunities for growth in both markets through export and investment.

During the morning session, the Forum will explore how to develop these opportunities, analysing both the benefits and challenges from a practical point of view, with senior businesspeople sharing their valuable insights through real-life case studies.

In the afternoon, the Forum will examine four key areas:

• Ageing populations require a different approach to healthcare, with more focus on prevention rather than cure, there is huge scope for UK-China academic and business collaboration.
• The Chinese consumer, amongst which there is undoubted interest in UK brands, where engagement is built on cultural relevance and emotional connection.
• Smart transport solutions, which have the potential for tremendous benefits, both for the UK as a whole, as well as for businesses and their employees.
• Green transition, an area where China and the UK are both looking for wins, and where there is potential for cooperation and growth in both markets.

The event will be followed by CBBC’s Spring Reception.

Click here for more information and to register for the UK-China Business Forum

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