Chinese companies offer "enormous opportunities"

China is now increasingly recognised as being one of the world's major locations for the research, development and manufacture of high technology products.

China is now increasingly recognised as being one of the world's major locations for the research, development and manufacture of high technology products.

According to Dr Liu Yanhua, Vice-Minister in the country's Ministry of Science and Technology, the output of China's high technology manufacturing base grew at an average annual rate of over 20% over the decade to 2001.

Exports of high technology products increased over the same period from the equivalent of $3 billion to $67.1 billion.

This rate of development has also generated significant potential for partnership agreements between Chinese and UK companies in both basic research and market-oriented product development projects.

Accordingly the second UK-China High Technology Industry Forum was held in London on 11th and 12th November, with regional visits on the following two days, with the aim of forging new scientific and technological links between UK and Chinese businesses.

The forum was attended by just over 40 representatives of Chinese businesses, as well as ten government officials, and 100 UK delegates from industry, academia, government and regional development agencies.

The sessions covered information and communications technology, e-science, life sciences, advanced materials and microengineering, energy and the environment, entrepreneurships and science parks, venture capital and science and technology planning.

The sheer scale of Chinese economic development was emphasised by Lord Sainsbury, the UK's Minister for Science and Innovation, when he addressed the forum.

China is now the world's sixth largest economy, he said, and its GDP will grow by 8% this year.

In fact, China "is now acting as an engine of growth for the global economy" and, as such, holds out the prospect of "enormous opportunities" for UK companies interested in working with Chinese partners.

In order to facilitate such ventures, he added, the DTI's Global Watch service now has two full-time international technology promoters, individuals with both relevant language and business skills, devoted to fostering contacts between UK and Chinese high technology companies.

Meanwhile China's enthusiasm for international partnering was stressed by Dr Liu Yanhua.

"We shall actively participate in international exchange and cooperation under the principle of equality and mutual benefit, sharing of results and safeguarding of intellectual property", he stated.

One company that has already initiated a significant co-operative project in China is the major international pharmaceutical business AstraZeneca.

In 2001 the company set up a joint laboratory in Shanghai with the Jioatang University, a leading centre of neurogenetic research in the country, to investigate possible causes of the highly debilitating psychological condition schizophrenia.

According to Hugh Salter, head of a research group in AstraZeneca's department of molecular sciences, the project will involve the collection and analysis of DNA samples from across China and will be the largest programme of its type anywhere in the world.

The sheer size of China's population of 1.29 billion was, he admits, a factor that encouraged AstraZeneca to seek a partner in the country, but he also says that other factors had a positive influence.

Many of the Chinese personnel involved had previously worked outside of the country and so were familiar with western business culture, as well as being highly technically competent.

As such AstraZeneca's investment in the project of "several million pounds" is proving highly "cost-effective".

But a significant new initiative to foster Anglo-Chinese ventures has also now just been launched in the UK.

The first ever innovation park specifically intended to encourage Chinese companies to set up operations in Europe was opened in Cambridge in September.

The China-UK Innovation Park is a privately funded venture that aims to provide consultancy and business support services to Chinese high-technology companies seeking to expand into Europe.

According to Managing Director Dr Keming Zhou there is no similar venture anywhere in the EU.

"We should be able to reduce by at least six months the time Chinese companies might otherwise spend dealing with the organisational and legal details of setting up operations in the UK", he says.

He also adds that the venture will be seeking to expand its operations to support such initiatives as the transfer of UK management skills to China.

Walter Herriot, Managing Director of St John's Innovation Centre at Cambridge, where the new venture is based, said that the China-UK Innovation Park was a very exciting initiative.

"I'm sure it will bring great benefits to both countries", he said.

"We were honoured that St John's was chosen as the home for the China venture and although it was only born in September we already have an ICT company opened for business there".

The second UK-China High Technology Industry Forum was organised by the Asia-Pacific Technology Network, supported by the DTI's Global Watch service and the Chinese Ministry of Science and Technology, and sponsored by AstraZeneca, the South East England Development Agency, Shell Gas and Power, Investeastofengland, South West of England Regional Development Agency and One North East.

Alongside the conference the Chinese Ministry of Science and Technology staged an exhibition of its country's S and T.

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