The British Chambers of Commerce (BCC) has met with Ambassadors
and senior diplomats from countries representing nearly 40% of
global trade to discuss economic security and supply chain
resilience.
The meeting at the German Embassy in
London was a candid discussion on how like-minded countries must
band together in the face of a rapidly evolving picture in
international trade.
The BCC's Director General, Shevaun
Haviland CBE, Director of International Trade, Steven Lynch MBE,
and Head of Trade Policy, , met with representatives from
across the EU and Indo-Pacific.
A key topic of discussion was the
trade risk presented by China and the need for a
co-ordinated response.
The discussion took place ahead of
President Xi Jinping's visit to Washington for talks with
President Trump on Thursday, where the future of the tariff
truce, critical-mineral supplies, AI and technology controls will
be closely watched.
Speaking after the meeting,
Steve Lynch, said:
There was a range of views expressed
around the table but also clear recognition that no open economy
can build resilience on its own.
When it comes to China, we must hold
two truths in our heads at once. It faces real domestic economic
pressures but has a formidable presence in tomorrow's growth
industries. We are not just competing with China on costs we are
in a race against time to gain a foothold in the future global
economy.
Thursday's meeting between Xi and
Trump may lower the temperature, which business would welcome.
But a USChina pause is not a UK or European strategy. Competition
over industrial capacity, technology and critical minerals will
remain. This is managed stabilisation, not a strategic
reset.
There is already an economic shock
from China's dominance in many sectors which is moving up the
supply chain of electric vehicles, batteries and advanced
manufacturing.
The response from the UK, the EU and
other partners must focus on three things; remaining competitive,
critical minerals processing and supply chain
diversity.
Within that context we also need to
consider the EU's Made in Europe agenda which has already got
many business leaders in the UK
nervous.
Europe needs greater industrial
strength but that cannot be at our expense, it must keep the UK
and other trusted partners embedded in shared supply
chains.
We must also recognise that the
pandemic and Ukraine war have changed many of the assumptions on
which global supply chains were
built.
There is no going back to the world as
it was before 2022. On energy and rare earths, we must make
choices which reflect the partnerships we know we can rely on for
the long term
That means putting businesses inside
the security architecture. There is a gap between national
strategy and commercial decision-making as they currently operate
to different criteria and objectives.
Governments can help close this, with
long-term procurement opportunities, clearer demand signals and
better shared intelligence.
Improving resilience does not
mean self-sufficiency or protectionism; it is the freedom to
choose under pressure. Made in Europe' cannot stop at the
Channel. The UK brings science, finance, services, advanced
manufacturing and deep China expertise to the table.
There are also clear opportunities to
create a new economic security framework through the EU and CPTPP
trade bloc, while the BCC's Trade Accelerator programme can also
offer a route to help firms diversify markets and
suppliers.
