The UK must not “isolate” itself from business opportunities in China despite the trade and security risks, the head of the Confederation for British Industry has warned.
CBI director Rain Newton-Smith highlighted that British companies see increased trade with Chinese companies as an opportunity to boost growth.
His comments came as MPs on Parliament's Business and Trade Select Committee quizzed business leaders on the UK's economic relationship with China.
Last December, Prime Minister Sir Keir Starmer admitted China posed a threat to the UK's security but called for greater trade links.
Ms Newton-Smith, chief executive of one of the UK's largest business groups, was positive about the Government's commitment to China.
“You can't have a growth strategy without a China strategy,” he said.
“China has the greatest contribution to global growth, it is the third largest trading partner and the largest consumer market in the world.
“The United Kingdom is the second largest exporter of trade and services.
“We are aware that all companies face security risks, but it is really important that we have a strategy towards China.
“This government has increased economic engagement with China and including businesses in it helps us as a country.”
He added: “If we think about the future economy, there is a huge market in China and I think we should not exclude some of the opportunities there, even if in some areas there are difficult conversations and negotiations that need to be had.”
Peter Burnett, chief executive of the China-Britain Business Council, told the committee: “There are risks associated with technological advancement, artificial intelligence and industrial development that you need to assess.
“Increasingly you will find them saying that they need to get more involved in China to understand those risks and develop some of the technologies that fit some of those risks.”
