In the first visit by a Chinese leader to Britain in a decade the acceptance of China as a force to reckon with in the world was evident. Britain’s prime minister, David Cameron hailed a “golden age” between the two nations, saying Chinese investments were good for Britain and that China will benefit from “having access to a country that is a leading member of the EU, and has so many other contacts and roles in the world”. Queen Elizabeth II described President Xi Jinping’s visit as “a milestone in the unprecedented year of co-operation and friendship between the United Kingdom and China.
China and the United Kingdom have not always been friends, with disagreements such as The Opium Wars dating back to the 19th century and years of tension during the Cold War; full diplomatic ties were only restored two years ago. President Xi quoted Shakespeare – “What is past is prologue” – and asked that both nations “join hands and move forward” towards peace and development.
At the end of the trip over $45 billion worth of trade deals were signed allowing Chinese capital great access to the British economy. The last time a Chinese leader visited, Hu Jintao in 2005, $1.3 billion worth of trade deals were entered into. This new influx of capital will give Britain a massive new pool of investments, a projected 3,900 new jobs and in turn give China greater access to Europe and her markets. China is also set to invest in the building of a $25 billion nuclear plant in southwest England. Recently, Britain relaxed Chinese visa rules to woo investors and big holiday spenders.
Concerns about national security, human rights and economic rivalries were made know by a number of protesters, British politicians, union members and the business community as Chinese investments in certain sectors of the economy have caused a decline in those sectors. A week before Xi’s visit, over a thousand U.K. steel workers were laid off as manufacturers blamed China for crippling the steel sector by selling steel at reduced prices to eliminate competition. Tata Steel stated “a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs” caused the downsizing of their work force. In an emergency House of Commons debate on the steel workers layoff’s, spokesperson for the Labour Party’s business arm accused the government of being “content to allow Britain’s entire steel-making capacity to disappear in the face of blatant Chinese dumping.”
Despite the British government’s enthusiasm to enter into bed with China, analysts caution about relying too heavily on China. The Chinese economy has eased to a 6.9 percent growth in the third quarter of 2015, the lowest in six years. Some analysts even believe that the true rate of growth for China may be around 4-5 percent. “What will happen in another 15 years?” they say.
Another issue raised was that of China’s human rights record. Demonstrators lined the streets chanting “Shame!” and “Free Tibet!” and Prince Charles a personal friend to exiled Tibetian spiritual leader Daila Lama was conspicuously absent from the banquet in honour of Xi. However, police made sure protesters did not disrupt the ceremony as protesters were kept away from the procession, with their banners eclipsed by “I love China” flags and their chants drowned by banged drums.
President Xi, accompanied by his wife, popular singer Madame Peng, were honoured with a 41-gun salute, given a ride in a gilded carriage with Queen Elizabeth, made a speech to a both houses of parliament, stayed at Buckingham Palace and was hosted by the Queen, senior royals and dignitaries in a lavish state banquet. The head of Treasury George Osborne stated that he wants China to be Britain’s biggest trading partner after the United States by 2025, underlining the growing importance of China to Britain.
China is arguably the world’s largest economy and analysts believe that in another 15 years her GDP will be double that of the United States of America. The Chinese leader’s visit would no doubt make Washington uncomfortable. However, one cannot deny the fact that China has become a force to reckon with on the world stage. German Chancellor Angela Merkel is currently in China on a state visit, while French President Francois Hollande is set to visit next month. These meetings reflect China’s new strategy with Europe and Europe cannot ignore the importance of China to their economies, even as they could not ignore the US in her prime.
Britain was the number one destination for Chinese Foreign Investments in 2014 according to Baker & McKenzie, with $5.1 billion flowing in. Despite being pressed by America not to join, Britain became the first Western nation to join the Chinese led Asian Infrastructure Investment Bank. This represents a massive shift in loyalties.
Despite what critics say, the center of the world is shifting and Britain has decided to be close to the center, as always.