Sebastian Wood, Britain's ambassador to China. Photo: Courtesy of the British embassy in Beijing.
With the UK-China economic and financial dialogue to take place in London on Thursday, Sebastian Wood, Britain's ambassador to China, sat down with the Global Times to discuss issues including Sino-British cooperation, the recent riots in his country and bilateral investment.
'Come on in!'
The ambassador encourages China to put more investment in the UK, especially in infrastructure.
"The investor can just go straight to the bank if they want to do business in Britain," Wood said. "They do not need to go through the government. However, they can still ask the government for advice, support and help."
On Chinese investors doing real estate business in Britain, Wood said he had no worries about it.
"Come on in! We have had foreign investment from Japan, the Middle East and the US in real estate," he said. "We also welcome China's involvement in those big projects and they already have some business going, such as in the north of London and Canary Wharf, the financial area of London."
Security guaranteed
Shaken by its worst riots in decades, the UK's capacity to deliver a safe Olympic Games next year has been cast into doubt. However, Wood is "very confident" that the 2012 Olympics will be "safe and secure."
"It is a very big event so there will be a very big security operation. And our police and security authorities have plenty of experience in managing big high-profile international events. So the planning for the Olympics includes extreme scenarios, such as terrorist attacks and natural disasters," Wood said.
"The riots are obviously a matter of concern to people in the UK. There has been some criminality, evidence of some social disaffection and issues that need to be addressed. But we have got to keep it in proportion," he added.
Wood said he did not see any cause for concern over the Olympics itself, as the riots are "very localized and in very specific areas and with very specific groups of people."
Faced with a "broken society," as Prime Minister David Cameron called it, one of the anti-riot measures the British government is considering is preventing rioters from using Twitter and other social networking websites.
However, Wood did not consider this measure feasible. "The UK's commitment to freedom of expression, whether it is through social media or conventional media, is absolutely fundamental. It is a part of who we are as a country," Wood said.
"However, it is reasonable and healthy for us to have a debate over the use of social media," he said.
However, Wood said that there were some problems in certain parts of British society, such as elements of social exclusion, other than just some criminality.
"We are still trying to work this through. We will be discussing what policy measures and government interventions are necessary to address those deeper social issues," he said.
Economic crisis
As the Greek debt crisis intensified, a group of countries, including France, Italy and Spain, announced fresh austerity measures to placate anxious bond investors.
The UK coalition government has also promised to cut a record deficit, which led to large-scale demonstrations.
"The purpose of the cuts is actually to restore vigor and health to have a sound fiscal platform in which our economy can grow steadily," Wood noted.
Wood said Britain also needs China to be successful, not only from the point of view of the UK's development, but also to help the global economy rebalance.
He also said that it is in both sides' interests for China to increase its holding of euros during eurozone recessions. "The best way for China to help out the EU, however, is to continue its opening-up and reform process."
Chinese Premier Wen Jiabao and Cameron unveiled $2.76 billion worth of trade deals during a Europe visit in June, promising to open up China's markets to British products.
However, Chinese telecom giant Huawei's bid to build a mobile phone network in the London Underground has run into a brick wall, as the British government raised its concerns that Huawei poses risks to national security.
Furthermore, European companies have restricted high-tech exports to China, claiming that an arms embargo imposed by the EU means their technologies, which could have military applications, cannot be exported.
Spain, which held the EU presidency last year, has indicated it is willing to reconsider the bloc's arms embargo on China. Spanish Foreign Minister Miguel Angel Moratinos said his country was "weighing the pros and cons" of lifting the ban after a meeting of EU foreign ministers in Brussels January 26.
"The debate has not changed within the last couple of years. To be honest, I don't see it being removed soon. It is still under review," Wood said. "I think there is no real connection between high-tech exports and the arms embargo. Companies, at least the UK ones, are not subject to any control from the government."
The ambassador noted that as long as it is a profitable investment, companies would like to export more technologies, while there should be more openness and policies to protect IPR in Chinese market. "The EU welcomes progress on market economy status. Efforts, especially on market access, will help move this debate forward."