China: Market Economy Status

Lord Howell of Guildford Excerpts

Monday 9th May 2016 Lords Chamber

[Lord Price]

I thank the noble Baroness for her question about the EU and the north-east. The Government believe that the country is far stronger inside the EU than outside it, for a whole host of reasons, which have now been well documented by the Prime Minister and others.

[Lord Howell of Guildford (Con)]

My Lords, I congratulate my noble friend on his new post but is he aware that although EU-China trade has been growing, particularly in goods, in fact the Commonwealth’s trade with China has increased by 14 times since 2000? The pattern is one of growth all round but the weak point is inward investment into China, which has fallen quite sharply, and of course services to China, where we have considerable difficulty. Since we are an 80% service economy, it is really in our interest to expand that side, particularly given that the EU services single market is not very active and quite difficult to get into.

[Lord Price]

My noble friend is right that it would be good to see the United Kingdom exporting more services to China. The good news is that we have now moved to number four with China in our goods exports, and China is currently the seventh-largest market for our goods and services exports. However, we believe that as the Chinese economy develops into more of a service economy, we will indeed be able to do more.