Trump’s re-election predicted to boost UK by $33 billion in Chinese investment
The re-election of Donald Trump as President of the United States could lead to a major shift in Chinese investment, with a potential $33 billion “taken away” from the UK, according to UK-based leading investment firm Fuel Ventures.
The company believes that the change in American leadership will encourage Chinese investors to look beyond the American market.
Based on data from Trump’s first presidency, Fuel Ventures predicts that Chinese investment lost in the US may be redirected to the UK. During Trump’s first term, Chinese investment in the US plummeted—down 36% in his first year and another 83% the following year, according to Statista. Fuel Ventures projects that if similar patterns emerge, Chinese investment in the US could drop from $28 billion in 2023 to $10 billion in 2025, with another drop to $3 billion thereafter.
Mark Pearson, Founder of Fuel Ventures, commented: “Trump’s re-election means that Chinese investors are looking elsewhere for opportunities outside of the US market. We predict that around £33 billion will be taken from Chinese companies in the coming years, and the UK will benefit as a hub for tech talent and innovation. We have seen increased interest from large Chinese investors looking to redirect funds to the UK since Trump’s re-election.”
Jing Jing Xu, Managing Director at Fuel Ventures Asia, emphasized the UK’s growing attractiveness to Chinese investors: “The quality of UK technology and innovation stands out globally, providing consistent growth opportunities compared to other markets. The UK has also seen an 80% increase in Chinese students studying here over the past decade, driven by local universities and colleges.”
He added: “The UK represents a bridge to Western markets, providing credibility, sophistication and long-term potential for Chinese investors. The appeal of the UK’s education, lifestyle, and cultural ties to Europe reinforces this position. “
Jing also highlighted the recent meeting with the Vice Mayor of Beijing, who expressed a strong desire to bring advanced technology to China. “We are pleased to have successfully established a relationship with the Mayor and the Chinese government, creating new opportunities for cooperation with our latest investment.”
The potential shift in Chinese investment presents a significant opportunity for the UK, particularly in the technology and education sectors, as it adapts to new international trade conditions amid the evolving US-China relationship.
