London Thames Gateway - A Chinese History
Often referred to as ‘the workshop of the world', China is the world's fastest growing developing country, and one of the most advanced nations at exploring business and economic opportunities of all countries across the globe. Trade between Britain and China has more than doubled over the past five years, but of all the regions and markets for China, London Thames Gateway is probably one of the oldest, having enjoyed a mutually productive business relationship with the country for nearly 150 years.
Today, Chinese foreign direct investment (FDI) is increasingly important to the capital and London Thames Gateway. The UK is by far the largest recipient of Chinese FDI in Europe, with London accounting for nearly one third of all Chinese investment into the UK, and 15 per cent of investment in Europe. This article charts the history of the Chinese in London Thames Gateway and the strong links that have been forged, particularly in recent years, between the UK capital and China.
A History of China in London Thames Gateway
The Chinese community in east London can be traced back to the mid 1800s when London's port trade and the East India Company was at its height. Links between Britain and China were strong, in what was then a hugely important and profitable market for both countries.
Chinese dockers, therefore made up the majority of the Chinese population in east London, with large communities in Wapping and Shadwell, the latter located on the riverside and known as the ‘Oriental Quarter'.
During this time the first incarnation of Chinatown appeared in Limehouse. The presence of this community had a catalyst effect in which other small enterprises such as Chinese shops and cafes sprang up. During this time the Chinese proved their organisational capacity by recognising the need to work as one to improve their living standards and help the community, which they did by founding the ‘Ching Yee' trade union.
Historians report that the Chinese community would have reached its peak just after the First World War, at which time the community was still based around Limehouse Causeway and Pennyfield, with the area marked by lodgings for seamen and restaurants. Many of these streets were heavily bombed during the Blitz in the Second World War and now only their names remain to evoke the past community. These include Canton Street, Mandarin Street, Pekin Street, Ming Street and Nankin Street.
Despite the decline of the London ports industry, the Chinese population grew steadily after the Second World War. At this time, many families were working in the laundry trade and this continued into the 1950's. Following the invention of the washing machine, the industry declined and the local Chinese workforce recognised the opportunity presented by the catering industry.
Today, approximately half of the Chinese population of the United Kingdom reside in London. The principal languages of the London Chinese community are Cantonese and Hakka (from the New Territories, Hong Kong and Vietnam). There are also some speakers of Hokien, Teow Cheow and Hainannese.
London/China links
Business relationships and investment between London and China have been increasing at a fast rate over the last few years. The London Economic Development and Inward Investment Office in Beijing works to further business, trade and tourism between the two cities. In addition, the Mayor of London opened an office in Shanghai and hosted ‘Shanghai Week' in January 2007, a series of special events in London to highlight Shanghai in association with Shanghai Municipal People's Government.
A host of Chinese regions and organisations have set up UK representative offices in London. These include: Shanghai Foreign Investment Development Board, Guangdong Board of Investment Promotion, Shenzhen City Government, and Beijing Zhongguancun Science Park.
London's Chinese business community now includes over 250 mainland companies, most of which have chosen London for their European sales and marketing headquarters. Companies which have set up offices here since 2000 include: ZTE, China Telecom Corporation, Shanghai General Electronics Group, China Eastern Airlines, Huawei Technologies, PetroChina, Guangdong Midea Household Electronics, China Export and Credit Insurance. There are a further 2,000 Chinese owned businesses operating in London, alongside a resident Chinese community of approximately 80,000 and 7,700 Chinese students, more than from any other country.
The Future
The recent strengthening of relationships between London and China suggest that connections between the two are well set for the future. In fact, Think London, the capital's FDI agency, has forecasted that outflows of FDI from China and Hong Kong will increase by 25 per cent to $70.1 billion by 2010.
Chinese companies basing themselves in London Thames Gateway include: China Telecom Corporation, Bestex Jiangsu Co Ltd, and Hynedale Ltd.
London Thames Gateway is already seeing the benefits of these links. Increasingly, Chinese companies are setting up offices in locations like the Royal Docks where they have access to excellent property options and first rate transport connections.
The region is also set to benefit from long-term plans for a dedicated Chinese business quarter in the region. This will build on east London's existing Chinese business infrastructure and offer an unrivalled springboard to Europe, supported by a network of services that respond to the specific needs of Chinese companies in London.
Lastly, there is an Olympic connection, with Beijing hosting the games in 2008 and London in 2012. Chinese companies involved in the Beijing Olympics are already enquiring about opportunities in London Thames Gateway, hoping to repeat their success and transfer their expertise to London 2012. This was highlighted by Lord Coe, chair of the London Organising Committee for the Olympic Games (LOCOG) who last year said: "Beijing is four years ahead in hosting the Games and we have much in common in our aspirations to inspire change as well as creating a sporting legacy for our respective cities."
