North-west Chinese exports exceeded £10 billion since 2015

Analysis by Deloitte to mark Chinese New Year has found that exports to China from the North-west region have totalled over £10 billion since 2015.

Despite ongoing uncertainty due to Brexit and the Covid-19 pandemic, exports from the region have remained stable in recent years, averaging at between £1.5 billion and £1.8 billion annually. Quarterly exports so far in the 2020/21 financial year have averaged at £400 million, a small increase on the £375 million average of the previous year.

Outside of trading relationships, the region has developed connections with China across a number of areas. Manchester University has become one of the most popular overseas universities for Chinese students, with more than 5,000 students enrolling – one in eight total students at the university. The North-west’s main airport, Manchester Airport, has also recently increased its offering of flights to Chinese cities.

Continued success in China has been driven by the progress of the Manchester China Forum. Established in 2013 by the then-Chancellor, George Osborne, the Manchester China Forum has since supported Chinese firms in their investment in projects with a development value of more than £6 billion, including the Airport City Northern Gateway projects.

John Cooper, partner at Deloitte in the North West, said:

China has become one of the most important international trade partners for the North West in recent years, and have increasingly taken an interest in investing in high profile infrastructure projects in the region. By continuing to cultivate this relationship, China can support the sustained economic recovery of the North West, as well as help to drive the ‘Levelling Up’ agenda on a national scale.

“There are also considerable synergies between the North West and China when it comes to shared knowledge and experience. With Greater Manchester committed to a zero carbon target of 2038, there is considerable advice and guidance businesses from the region can provide as China looks to cap its own carbon footprint.”

David Percival, partner at Deloitte and chair of the Manchester China Forum, said:

A key objective of the Manchester China Forum, was to take a holistic approach of our relationship with China. When approaching inter-city relationships, many organisations elect to improve one area, whether trade or tourism, but we recognised that it was crucial to consider all elements to drive sustainable growth for both parties.

“As a result, Manchester has become an extremely attractive proposition for China, from our manufacturing capabilities to our higher education institutions. We remain committed to sharing best practice and knowledge to maximise the speed of recovery and drive international trade for the future.”