UK's Department for International Trade in Hong Kong Service Offer Brochure

UK’s Department for International Trade What we can do for you

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UK’s Department for International Trade | What we can do for you

Contents Forewords

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About us

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How we help your business expand in the UK

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How we help you invest capital in the UK

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5 Reasons to Invest in the UK

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How we help you buy from the UK

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5 Reasons to Buy from the UK

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Competitive Financing for Buyers: UK Export Finance

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Get in touch

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UK’s Department for International Trade | What we can do for you

Foreword This is a comprehensive guide laying out how the UK’s Department for International Trade (DIT) can support Hong Kong Companies start and grow their business with the UK. In Hong Kong, DIT is part of the BritishConsulate and our experts can help businesses to discover the exciting opportunities available as well as the benefits of doing business with the UK. We work with businesses at every stage of their journey, from innovative idea through to commercial success.

With its strong links to the UK, Hong Kong has always been an important trading partner for the UK. It is clear that as the UK forges a new future of strong global economic ties, trade and investment cooperation with Hong Kong will remain an essential part of that future. Total bilateral trade between the UK and Hong Kong is worth over £22.2bn - with £9.4bn worth of imports coming from Hong Kong, and total UK exports to Hong Kong worth £12.8bn. Total UK exports to Mainland China are worth £30.4bn, meaning that almost a third of all UK exports to the whole of China come to Hong Kong. Hong Kong is the UK’s third largest export partner in Asia and the UK’s 12th largest export market globally.

Looking ahead, the UK will remain one of the most open economies, open to trade and investment from all countries. In 2019, the World Bank rated the UK as the most business-friendly of Europe’s 10 largest economies, and according to a 2020 survey by EY, digital tech, climate change and health were cited as sectors ripe with opportunity in the UK. For more information on these opportunities and how we can help you connect with the UK, please read on for a rich compilation of information and further resources.

We look forward to doing business with you.

John Edwards Her Majesty’s Trade Commissioner for China

UK’s Department for International Trade | What we can do for you

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Foreword This guide explains what we can do for you if you are looking to expand or move your business to the UK, how we can support you investing your capital in major British projects, and how we can help you find British goods and services which can grow your business here.

The commercial and financial links between the UK and Hong Kong are historic and extensive. The SAR is the regional headquarters for a number of major UK companies servicing the Greater China market, as well as the Asia Pacific region. British and Hong Kong companies know each other well and many have had trading relationships, or major investment holdings in either direction, for decades.

And while our historic relationship is of course less extensive with Macao, I want to ensure that we build further commercial links including in the tourist and gaming sector as well as with the ambitions to develop as a Lusophone financial centre.

Many of my friends from Macao and Hong Kong know London particularly well. And while as Samuel Johnson said “when a man is tired of London, he is tired of life” the reality of 21st Century Britain is that there are world class companies and investment opportunities across the UK. Cyber Security in Belfast, Automotive in North East England, Design in Glasgow, Advanced Materials in the Vale of Glamorgan.

And as the UK takes control again of its own trading relationships and domestic regulation having left the EU, we are also making a major push to grow the sustainability of the British economy. We plan to reduce CO2 emissions by 78% from 1990 levels by 2035. We have already banned the sale of cars which are not electric or hybrid by 2030. These are major changes which create real opportunities for businesses and investors to innovate and grow in the UK. The DIT team here at the Consulate General in Hong Kong has a broad range of skills, contacts and experience which can help your business grow. Please get in touch and discuss how we can work together.

Nick Heath Director General Trade and Investment (Hong Kong & Macao)

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UK’s Department for International Trade | What we can do for you

About us

The Department for International Trade sits at the heart of the UK government. Our aim is to help overseas companies, investors and buyers successfully do business in the UK. For businesses expanding to the UK We help you in every aspect of expanding your business to the UK. Our wide range of digital tools and services are designed to help you save time and reduce costs.

For investors allocating capital in the UK We work with investors of all kinds to smooth the investment journey with tailored advice, insight and introductions.

For buyers importing from the UK By showing you what the UK has to offer, we can help you find the right products and services for your business. We can also offer financial support and make it easier to understand important regulations.

UK’s Department for International Trade | What we can do for you

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No matter what sector you are in, the UK’s Department for International Trade is here to support your ambitions for growth. Contact one of our sector experts: Consumer & Retail

Infrastructure - Rail, Construction & Sport

Arthur Yu Head of Consumer arthur.yu@fcdo.gov.uk +852 2901 3398

Tony Yu Associate Director, Infrastructure & Sport tony.yu@fcdo.gov.uk +852 2901 3259

Creative Industries

Infrastructure – Real Estate and Energy

Stephen Ng Associate Director, Creative Industries & Consumer stephen.ng@fcdo.gov.uk +852 2901 3144

James Gallagher Deputy Director of Trade & Investment james.gallagher@fcdo.gov.uk +852 2901 3355

Chloe Law Head of Creative Industries chloe.law@fcdo.gov.uk +852 2901 3203

Infrastructure - Transportation

Education Sophia Ip Head of Education sophia.ip@fcdo.gov.uk +852 2901 3266 Financial & Professional Services Karin Rancuret Head of Inward Investment and Financial & Professional Services karin.rancuret@fcdo.gov.uk +852 2901 3367 Tim Law Head of FinTech t.law@fcdo.gov.uk +852 2901 3152 Healthcare Maggie Palmer Associate Director, Healthcare & Education maggie.palmer@fcdo.gov.uk +852 2901 3268

Chee Chan Associate Director, Infrastructure chee.chan@fcdo.gov.uk +852 2901 3117 Innovation & Technology Lucy Mears Associate Director, Innovation & Technology lucy.mears@fcdo.gov.uk +852 2901 3031 Stephanie Li Head of Technology stephanie.li@fcdo.gov.uk +852 2901 3175 For Marketing and Communications enquiries, contact: Tiffany Lee Events & Communications Manager tiffany.lee@fcdo.gov.uk +852 2901 3361

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UK’s Department for International Trade | What we can do for you

Millennium Bridge London

How we help you expand your business in the UK Every year, the Department for International Trade helps thousands of businesses expand to the UK. Services DIT can provide

1. Insights by market and industry: Get reliable market and industry insights, helping you make an informed business case for expanding to the UK. 2. Highlighting opportunities: Explore unique opportunities in specific UK industries, giving you an insight into a rapidly evolving market with high-growth potential. We can also offer bespoke research on specific UK industries.

3. Helpful guidance: We can provide guidance on expanding to the UK, including location advice, company registration, setting up a bank account, taxation, recruitment etc.

4. Professional services: We can help you find UK companies that specialise in supporting businesses expand to the UK. Ask us about our Investment Support Directory that features professionals in accounting, legal, publicity and more.

5. Making introductions: Build connections across the public and private sector. Our network spans government departments, local governments industry leaders, chambers of commerce and centres of R&D excellence.

6. Hiring, workforce and training help: Get access to recruitment strategies, staff training insights and estimated salary projections that could be essential to the success of your business.

7. Assistance for innovators: Join our Global Entrepreneur Programme for innovative tech founders and get support through mentoring, relocation help, investor introductions and more.

8. Ongoing support: Keep abreast of the latest developments in the UK by signing up for our DIT Hong Kong e-newsletter. Get invited to events and informative webinars.

Further Resources: Follow the links below for more resources to help you grow your business with the UK. • Explore different industries in the UK • Find high-growth opportunities • Read our guides on how to set up in the UK • Find professional services to help you • Advice on hiring skilled workers • Discover the Global Entrepreneur Programme

Speak to us: To find out more about all these services, get in touch with our team in Hong Kong by emailing:

DIThongkong@fcdo.gov.uk

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UK’s Department for International Trade | What we can do for you

V&A Dundee Scotland

Actelligent After Hong Kong fintech company, Actelligent, received support from the Department for International Trade (DIT) and Scottish Development International (SDI), it made the decision to invest in the UK, choosing the UK as the hub for its R&D division. It opened one office in London where it can build relationships with the City’s influential financial sector, and another in Edinburgh, where it opened its new R&D hub.

“The UK is one of the leading fintech centres in the world.

Scotland is leading the way in AI and also has a huge capital base. This, combined with London’s reputation as a major financial hub, the UK’s low corporation tax and the global mindset of UK fund managers, makes it a great place for us to do business. The support DIT gives to businesses looking to invest in the UK is invaluable and unmatched anywhere else.

As well as introducing us to key contacts, DIT also helped us establish the practical elements of our UK business.”

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Charmaine Lo CEO, Actelligent

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UK’s Department for International Trade | What we can do for you

Salford Quays Manchester

How we help you invest capital in the UK The UK government is uniquely placed to add value to the investment process through tailored insights, introductions and regulatory advice.

Services DIT can provide

1. Making introductions: We help match you to projects that meet your criteria and build connections that strengthen your investments.

2. Providing local knowledge: Capitalise on our national, regional and local knowledge of the UK. Capture these insights to gain context and greater detail of key priorities and business environments.

3. Regional support: We work closely with project partners and investors to navigate routes to regional support.

4. Advising on key considerations: We can help you navigate your investment journey by offering advice on project bidding, average investment timelines, unblocking common obstacles, and expected returns.

5. Legal and regulatory advice: Leveraging our position at the heart of government, we can provide insight into regulation and policy, and connect you to the best-in-class private sector advice to help you better manage and protect your investment.

Further Resources: Follow the links below for more resources to help you grow your business with the UK.

Speak to us: The government is identifying new projects across the whole of the UK, including in London. Investors who are interested in our projects can find out more by contacting us at:

• Explore different industries in the UK • Find capital investment opportunities

DIThongkong@fcdo.gov.uk

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UK’s Department for International Trade | What we can do for you

Reasons to Invest in the UK

In the dynamic world of international business there remains one constant; the UK with its open, flexible and transparent business environment continues to be the top destination in Europe for foreign direct investment1.

From Alibaba to Google, the world’s leading companies look first to the UK, here are some of the reasons why.

1. The UK is a global hub for business that welcomes international investment.

With fast, easy access to the world through the largest air transport system and second largest ports industry in Europe, and a time zone that is conducive to operating globally, the UK is the no.1 destination in Europe for FDI. 2. The UK has the sixth largest economy in the world and with over 66 million people a major market in its own right.

It is home to one of the world’s leading financial centres, has the most developed e-commerce market in Europe and offers a hub for global technology companies, with a leading edge in sectors such as Fin-tech, Med-tech and Ed-tech.

3. Companies setting up in the UK have access to a skilled and talented workforce.

The UK has four of the world’s top ten universities, the UK is ranked second in the G20 for its ability to grow and attract talent on the Global Talent Competitiveness Index (GTCI).

4. The UK is home to one of the world’s leading financial centres and offers easy access to finance.

It has one of the largest stock exchanges, is the number 1 location for cross-border bank lending, the third largest venture capital market in Europe and the world leader in developing green finance solutions.

5. The UK offers an attractive business environment that supports business growth and innovation.

Supportive legal and regulatory framework, lowest corporation tax in the G20, government support for R&D, and tax relief to encourage investment and a business-friendly visa system all contribute to making the UK one of the easiest places in the world to do business.

Rhodium Group (RHG) and the Mercator Institute for China Studies (MERICS), Chinese FDI in Europe: 2019 Update, April 2020

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UK’s Department for International Trade | What we can do for you

Pocket sized codable computer Micro:bit

Micro:bit Educational Foundation A British EdTech company is equipping the next generation of coders by providing schools and young people worldwide an accessible and effective learning tool for digital programming skills.

As a direct result of the DIT’s Hong Kong Education Mission to the UK in 2016, the BBC micro:bit has been introduced to Hong Kong primary and secondary schools, and micro:bit Focus Groups were formed by the the Association of IT Leaders in Education (AiTLE). In 2017, AiTLE published two micro:bit teaching resources: “micro:bit for coding” and “micro:bit for STEM”.

With support from DIT, Micro:bit Educational Foundation continued to work with Hong Kong schools and showcased their projects at the London Bett Show in 2018 and 2019.

“The success of BBC micro:bit is not just down to the innovative hardware device. It’s the micro:bit ecosystem that makes it such a great tool for edudators, children and anyoe interested in using tech in inventive, fun ways.

Our ecosystem consists of our Founding Partners, DIT, hardware, peripherals and add-in developers as well as our resellers around the world.”

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Waris Candra Head of Asia Pacific, Micro:bit Educational Foundation

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UK’s Department for International Trade | What we can do for you

Belfast, Nothern Ireland

How we help you buy from the UK We can help you find UK businesses that have the products and services you’re looking for. We can also help to make import regulations easier to understand and offer financial support for buyers.

Services DIT can provide

1. Find a UK supplier: Search our directory of businesses exporting from the UK. Find suppliers of products and services across agriculture, software, manufacturing and more.

2. Making introductions: Tell us about your business.

We’ll find your ideal trade partner and make an introduction to get you off to the best start.

3. Get advice on buying from the UK: Get the latest information on markets and trends, and benefit from the local knowledge of our trade advisers from around the world.

4. Competitive financing for importers: Find competitive financing when buying from the UK. Explore a range of financing solutions through our initiative for foreign buyers, UK Export Finance (UKEF). More information can be found on Page 15.

Further Resources: Follow the links below for more resources to help you grow your business with the UK. • Find a UK supplier • Support from UK Export Finance

Speak to us: The government is identifying new projects across the whole of the UK, including in London. Investors who are interested in our projects can find out more by contacting us at:

DIThongkong@fcdo.gov.uk

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UK’s Department for International Trade | What we can do for you

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Reasons to Buy from the UK

UK exports of goods and services to Hong Kong has grown 56% from 2011. This makes Hong Kong the UK’s 12th largest export market and accounting for 2.1% of total UK exports. Here are the reasons why:

1. Hong Kong and UK businesses work together to meet global demand and global challenges.

• In 2020, UK trade with Hong Kong reached over £22.2bn, with £9.4bn worth of imports coming from Hong Kong, and total UK exports to Hong Kong worth £12.8bn.

2. UK businesses deliver profit, drive innovation and make a difference.

• UK is the “unicorn capital of Europe”. As of 2019 the UK sits behind only the US and China when it comes to building $1bn companies2.

3. Consumers all over the world prefer UK products and services.

• According to 2018 Barclays “Brand Britain” report, the majority of Chinese respondents (60%) said they would be more likely to buy a product if they know it is British3.

4. You can trust UK businesses are sound, professional and stable.

• The UK invests no less than US$5.3 billion a year in regulation4.

5. Trading with the UK means you can benefit from competitive financing.

• In 2019/20 UK Export Finance provided £4.4bn in support for UK exports. Get in touch with the team to find out how UKEF can provide finance to help you source from the UK.

Tech Nation (2020) A Record Year for UK Tech Barclays (2018) Brand Britain 4 National Audit Office (2019) A Short Guide to Regulation.

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UK’s Department for International Trade | What we can do for you

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Competitive Financing for Buyers: UK Export Finance UK Export Finance (UKEF), the world’s first export credit agency, makes it possible for buyers to purchase British goods and services with flexible, competitive financing.

In the last five years, UKEF provided approximately £18.5 billion of support for exports and international trade by providing attractive financing terms to overseas buyers, supporting working capital loans to UK exporters, and insuring against buyer default.

UKEF provides: UK government-backed competitive financing • An appetite of at least £4 billion to support projects with UK exports in Hong Kong, and at least £4 billion in China.

• Finance in over 60 pre-approved local currencies, including in Renminbi • Repayment terms of 2-10+ years (up to 18 for renewables) • 100% unconditional guarantee on up to 85% of total contract value • Minimum requirement of 20% UK content • Flexible transaction structure

UKEF helps UK companies if all sizes and in all sectors to export by enabling them to win business, perform contracts and get paid through a variety of guarantee, lending and insurance products.

UKEF has a reputation as one of the world’s most innovative and flexible export credit agencies. It has received several awards recognising its efforts in coming up with new ways to support exporters.

UKEF is supporting the global green recovery. £2 billion of UKEF’s direct lending is allocated to support clean growth projects.

Learn how UKEF can work with your business:

https://www.great.gov.uk/project-finance/ Contact us:

james.gallagher@fcdo.gov.uk

From 2019 to 2020, UK Export Finance provided £4.4bn in support for UK exports, including supporting China Southern Airlines, the Formosa II offshore wind farm in the Taiwan Strait, and other projects in China.

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UK’s Department for International Trade | What we can do for you

Get in touch For any further information, you can get in touch with a DIT representative by emailing

DIThongkong@fcdo.gov.uk

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DIT The UK’s Department for International Trade (DIT) helps businesses export, drives inward and outward investment, negotiates market access and trade deals, and champions free trade.

Disclaimer Whereas every effort has been made to ensure that the information in this document is accurate the Department for International Trade does not accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.

Front cover: The world’s financial centre, London, UK © Crown copyright 2021 You may re-use this publication (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence.

To view this licence visit: www.nationalarchives.gov.uk/doc/open-government-licence or email: psi@nationalarchives.gov.uk.

Where we have identified any third party copyright information in the material that you wish to use, you will need to obtain permission from the copyright holder(s) concerned.

This document is also available on our website at gov.uk/dit. Any enquires regarding this publication should be sent to us at enquires@trade.gov.uk Published June 2021 by Department for International Trade