Speaking on a visit to Beijing, Dr Neil Bentley, director of the CBI’s Business Environment, said that UK government assistance offered to smaller British businesses hoping to break into the Chinese market was woolly and ineffective.
“In China you have got big companies like Shell and BP setting themselves up very well and really understanding the local economic conditions,” he said in an interview with The Daily Telegraph. “But many small companies sitting in the UK are really struggling to understand how to get their first foothold in China.”
Dr Bentley said that future British business success depended on a more ‘granular’ approach that focussed on individual Chinese cities that are poised to invest billions of pounds in low-carbon development of transport, buildings and energy delivery.
“The UKTI [the government organisation which supports UK companies doing business abroad] has really got to sharpen its focus. We need to build relationships with specific cities and get in on the action as early as possible,” he said.
The CBI has estimated that the transition to a low carbon economy could be worth as much as £7 trillion to British business.
Earlier this the China Greentech Initiative, a collaboration of 80 green technology companies, investors, policy advisers and NGOs, estimated that the addressable market for greentech in China alone could be worth £600bn a year.
Dr Bentley said that ambitious environmental targets set by China in its 11th Five Year Plan (2006-2010) had already provided opportunities for consultants and technology companies to help Chinese cities and businesses meet new standards.
“If we don’t want to be left behind, British business must position itself to take advantage of the opportunities created by the next Five Year Plan,” Dr Bentley added before flying to Chongqing, a municipality of 30m people, to examine market opportunities.
“The focus of the next stage of Chinese development is going to be in the cities, in urban planning, energy efficient building, carbon capture technology, nuclear power and low-carbon transport, with all the technology and infrastructure requirements that implies. Britain has to ensure its businesses are not left behind.”