China-UK Photo: VCG

The predictability of the Chinese economy is encouraging, said Chris Torrens, Chair of the British Chamber of Commerce in China, in an interview with the Global Times, commenting on the Chinese economic prospects.

For Torrens, part of that predictability comes from the foundations of the Chinese economy, which are based on strategic planning as reflected in the five-year plans.

"When I first started working in China in the late 1980s and early 1990s, the five-year plan was not a document I paid close attention to... Today, however, the predictability and sense of stability it provides are widely welcomed around the world," Torrens said, as China is set to commence the 15th Five-Year Plan period (2026-30) next year. 

The 15th Five-Year Plan period (2026-2030) will mark a pivotal stage for China to reach the goal of basically realizing socialist modernization by 2035, according to the Xinhua News Agency.

For foreign companies, having a clear view of the government's economic blueprint, even at a high level, is extremely helpful, as it allows them to identify areas of alignment, said Torrens. 

"That is what I mean by predictability - the ability to refer to policy planning. That, I think, is what also encourages British businesses, as this kind of planning is something you hardly see anywhere else in the world," he said.

During the 14th Five-Year Plan (2021-2025) period, China's GDP rose from 103.5 trillion yuan in 2020 to 134.9 trillion yuan in 2024, with an average annual growth rate of 5.5 percent, significantly higher than the global average of 3.9 percent over the same period, Xinhua reported.

According to China's long-term development blueprint, its per capita GDP should be on par with that of a mid-level developed country by 2035.

China's economic growth in the past has been strong, and there are still concerns, as shown in our sentiment survey, about consumer confidence returning, but overall, China still performs better than most other markets, Torrens said, noting that larger British companies feel that they want to stay here. "Despite the current economic challenges, the upside is greater than the downside," he said.

This is also reflected in the chamber's sentiment survey, as "British law firm members are very positive about developments over the past year, particularly in terms of improved market access through what are known as joint law offices, which have significantly transformed their business," Torrens said.

When it comes to the sectors with the greatest potential for British businesses in China, Torrens mentioned healthcare and biotech, where he believes there will be more cooperation. "We are seeing a growing number of Chinese startups with highly innovative biotech solutions that work not only in China but can also be applied in the UK and elsewhere around the world. This, in turn, brings opportunities for UK services companies to help Chinese firms go global.

Chris Torrens, Chair of the British Chamber of Commerce in China Photo: Courtesy of Chris Torrens

Talking about the advantages and significance of the Chinese market for British businesses, the British business representative said that obviously, China has scale - it is a huge market with extensive manufacturing, and there is a major advantage to "having your consumer close to your production."

"British companies, like other multinational companies, have come to China over the past three to four decades, initially because of cheap land and low labor costs. But as China has developed, multinational companies have come to appreciate the high quality of the workforce, the depth of talent, extremely high qualifications, and the highly centralized infrastructure, among other factors," Torrens said, noting that as a result, there is a level of predictability and stability in manufacturing in China that you simply cannot find in many other markets. 

"When you add the size of the market and the growing middle-income consumer segment that becomes a very positive factor... British companies, like other foreign companies, feel very positive about this," he added.