PM David Cameron and President Xi Jinping in Manchester: What local businesses have to say

As part of the China State Visit that has dominated the news this week, Prime Minister David Cameron today (October 23) took Chinese President Xi Jinping on a tour of Manchester in an effort to further propel his Northern Powerhouse vision.

With the government announcing earlier this week that the UK will reap £30bn in investment from pursuing closer economic and cultural ties with China, I wanted to know what businesses in Manchester - the heart of the North’s economy - thought of the city’s prominent position in the state visit schedule.

Adam Ward of Airtime Rewards Ltd, the company behind the money-saving app Karrot, said that as the founder of a recently launched tech startup, the visit by the Chinese president is very encouraging.

“It will be really interesting to hear how the relationship will impact on the startup community.”

“The partnership with Manchester University laboratories, in particular, is a sign that China recognises the level of innovation our city has to offer,” Adam said. “I think for growing tech firms like ours, this visit brings many opportunities for business deals in Manchester.

“It will be really interesting to hear how the relationship will impact on the startup community.”

Daniel Keighron-Foster, the managing director of cloud management startup Steamhaus, was equally as optimistic.

“Speaking with my business hat on, creating stronger ties between businesses in China and the North West is a no-brainer,” he told me. “Encouragingly, many of the partnerships and initiatives being discussed are already in motion, not least the news that Hainan Airlines will soon offer direct flights from Manchester to China – providing greater market access for North West businesses and an expected £50m boost to the region’s economy.

“Having just launched a new venture last month, I’m particularly keen to see how plans for a joint innovation and entrepreneurship campus at the University of Central Lancashire will develop.”

“I can’t help but feel that this overshadows some of the more positive work being done to forge strategic partnerships that could help to bolster the potential of the Northern Powerhouse.”

For Daniel, not all the partnerships announced during the China State Visit are worth celebrating.

He continued: “We also have to pay attention to the controversial decision to allow China to build nuclear power stations in the UK. Crucially, the news poses a number of very serious questions around issues such as national security, as well as considering the moral standpoint.

“I can’t help but feel that this overshadows some of the more positive work being done to forge strategic partnerships that could help to bolster the potential of the Northern Powerhouse.”

Jane Schofield, director of office space provider WorkPlace, which recently published a revealing survey about the tastes of the city’s office workers, was positive about the fact that Manchester is playing such a prominent role in the China State Visit.

“As one of the newest businesses in Manchester,” she explained, “we think the region offers so much potential and the business community has been so helpful with their time and support as we have set up and launched WorkPlace.

“So far the investment from China has not been insignificant and includes £800m into Manchester Airport Group. But the majority of the UK investment has to date been concentrated in the South.”

“Anything that will help strengthen our economy and help promote Manchester as a great place to do business can only be a good thing.”

Philip Grindley, a Manchester-based advisory partner with Grant Thornton, Britain’s fifth biggest accountancy company, called President Xi Jinping’s Manchester visit “tremendously significant” for the fact that it raises the profile of the North, and the Northern Powerhouse, before a key international audience.

“So far the investment from China has not been insignificant and includes £800m into Manchester Airport Group,” Philip explained. “But the majority of the UK investment has to date been concentrated in the South.

“There’s only been three substantial investments in technology and manufacturing companies in the North, so we are lacking volume.”

Speaking further, Philip said that while cities in the North of England are generally small in comparison to their counterparts in China, the region becomes a far more attractive proposition for investors when it’s considered as a whole.

He continued: “The ‘Made in Britain’ brand has a huge impact with the Chinese and they are interested in high-quality British manufacturing.

“It’s also clear the UK is of key importance to China. We’re a gateway to the EU, but we are not in the Euro and don’t have the same exposure to the risk of weakness in the Eurozone. We also have the benefit of the UK’s attractive corporate tax regime.

“More than anything, when the Chinese invest, they think long term and focus on stability. Also from experience once a Chinese company has acquired a foreign business they generally trust the management and allow it to continue as normal.”

Britain is due to overtake Germany as the biggest economy in Europe by 2030, Philip concluded. If we are to capitalise on this, we need to: “[maintain] dialogue with China and [establish] landmark deals that will lead to other long-term investments.”

What are your thoughts on Chinese President Xi Jinping’s Manchester visit? Let us know in the comments below or tweet us @BdailyNorthWest

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