Interest in establishing operations in London to secure a foothold in Europe and Africa is higher than ever before as an increasing number of Chinese companies look to Britain's capital as their operation hub, a senior London inward investment executive said on Friday.
"Chinese companies' interest in setting up operations in London to establish a presence in Europe and Africa has far exceeded our expectations," said Michael Charlton, chief executive officer of Think London, in an interview with Xinhua.
Think London, the foreign investment agency for London, is a non-profit, private-public partnership delivering expertise and advice to international businesses.
In August, Think London launched its "Road to London" road show from the Chinese capital of Beijing to arouse Chinese companies' interest in London. Over the past three months, the road show has covered 12 cities in the Chinese mainland before arriving at Hong Kong, the final stop of the road show.
"We have had detailed discussions with dozens of companies about setting up in London. The total number of companies that expressed strong interest in London and that have already engaged with Think London to explore setting up an office in the capital within the next two years is 95 to date," said the chief executive officer.
Of these companies, nine are already working with Think London to set up an office in London within the next 12 months, he said, adding that in Beijing and during the road show, Think London initially aimed to identify 60 Chinese businesses interested in setting up or expanding their presence in London.
Since 1994, more than 200 Chinese companies have set up operations in London.
"I'm delighted that Alibaba.com and China Merchants Bank are among the most recent companies planning to expand their operations to London," said Charlton.
In addition to these iconic brands, Insigma, a leading Chinese IT outsourcing group with headquarters in Hangzhou, announced that it wants to use London to develop and expand its thriving business.
London's economy is set to grow by 80 billion U.S. dollars by 2015, with 8 billion of this growth being created by the Olympic and Paralympic Games in 2012, said Charlton.
"The Games are expected to generate about 2,000 direct contract and form a supply chain of around 70,000 contracts," he said.
"We hope Chinese companies can cut a big piece from the giant 'Cake'," said Charlton, noting that some Chinese companies have already won contracts on the Olympic projects and many more, including large construction companies, are testing the water.
He suggested that companies hoping for the Olympic contract should set up an office in London first, "once you have a physical presence there, you will be treated exactly as a British company."
At Think London's Chinese Touchdown Center, Chinese businesses moving to London are provided with a free desk for up to three months and 25 percent discount on office space as well as advice assistance from a dedicated Chinese-speaking Think London manager, said Charlton.
He said that due to the financial crisis, assets prices and business operation cost are declining in London, and at the same time, Chinese currency are appreciating.
"I think it is good time for Chinese companies to speed up their presence in London," said the chief executive officer.
Source: Xinhua
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