US Trade Tariffs Highlight Chinese Expansion Globally - With British Steel the Least Of It

13th April 2025

While Chinese involvement in British Steel is hitting the headlines wit the UK government recalling parliament to save the company from closure by the owners Jingye.

For many years Chinese companies have been expanding in many areas.

Chinese investors have a significant presence in the UK, owning or part-owning assets across various industries. Here are some notable examples:

Energy and Utilities: China General Nuclear Power holds a 33.5% stake in the Hinkley Point C nuclear power plant. Chinese investors also have shares in Northumbrian Water and Thames Water.

Transportation: A 10% share in Heathrow Airport is owned by the China Investment Corporation (CIC).

Retail and Hospitality: Greene King, a major pub retailer, is owned by a Chinese company. Additionally, Chinese investors have stakes in Superdrug and the QHotels group.

Education and Real Estate: Investments include at least 17 independent schools and properties like the "Walkie Talkie" building in London.

Sports and Entertainment: Chinese companies have invested in football clubs like Wolverhampton Wanderers and Manchester City, as well as cinema chains like Cineworld.

Chinese-owned companies in the UK also contribute significantly to the economy, with over 57,000 employees and combined revenues of nearly £99 billion as of 2024.

Many countries invest in the UK as unlike China there are few restrictions on investment by comparison by foreign companies.

Chinese investors have stakes in various UK businesses across industries. Here are some examples:

Energy and Utilities: China General Nuclear Power holds a 33.5% stake in Hinkley Point C nuclear power plant. Chinese investors also have shares in Thames Water and Northumbrian Water.

Transportation: The China Investment Corporation (CIC) owns a 10% share in Heathrow Airport.

Retail and Hospitality: Greene King, a major pub retailer, is owned by Hong Kong's richest man, Li Ka-shing1. Superdrug and the QHotels group also have Chinese investors.

Sports and Entertainment: Wolverhampton Wanderers and Manchester City football clubs, as well as Cineworld and Odeon UCI cinemas, have Chinese investments.

Education and Real Estate: Investments include at least 17 independent schools and properties like the "Walkie Talkie" building in London.

Chinese investors have a presence in the UK's wind energy sector, particularly in offshore wind projects. For example:

China's State-Owned Enterprises: Some offshore wind capacity in the UK is owned by state-owned entities from China, alongside other countries like Denmark and Norway.

Global Supply Chain: Chinese companies, such as Goldwind, play a significant role in the global wind turbine supply chain. Their involvement in the UK includes providing cost-effective turbine solutions.

A Chinese company has been involved in the Beatrice Wind Farm. Red Rock Power Limited, which holds a 25% stake in the project, is owned by China's State Development & Investment Corporation (SDIC). This makes SDIC a key investor in one of Scotland's largest offshore wind farms

Chinese Expansion Worldwide
Chinese Belt and Road Initiative

China vs US Economy Comparative Analysis and 2025 Outlook

Forbes
Contrary to public opinion, liberal democracies do not always have a competitive advantage when it comes to attracting inbound investments from foreign companies. Many people assume that the link between liberal democracies and open markets provides the best platform for cross-border investment. While there are some advantages to implementing direct investments in capitalist economies, the political economy of authoritarian countries provides advantages as well.

Since the post-Mao opening of China to inbound investment in 1978, China has achieved significant economic growth. As a country with an authoritarian government, its economic policy-making is one of the main reasons for its success.

Let's Pick Portugal As Another Example
Chinese companies have been actively investing in Portuguese businesses, especially since Portugal's economic challenges in 2011. These investments often focus on strategic sectors like energy, infrastructure, and finance. For example, China Three Gorges acquired a significant stake in Energias de Portugal (EDP), and State Grid Corporation of China invested in Portugal's power grid. These deals provide Chinese firms with access to European markets and Portuguese-speaking countries in Africa and South America.

Portugal has also encouraged foreign investment through initiatives like the "Golden Visa" program, which grants residence permits to investors. This has made Portugal a key destination for Chinese investments in Europe.

Chinese investments in Portugal have significantly impacted several key sectors:

Energy: Major stakes in companies like Energias de Portugal (EDP) and REN (Redes Energeticas Nacionais) have given Chinese firms a strong foothold in Portugal's energy infrastructure2.

Infrastructure: Investments in ports and transportation networks have bolstered China's strategic access to European and Lusophone markets.

Technology and Innovation: Collaborations in renewable energy, digital banking, and AI have aligned with China's global priorities.

Real Estate: The "Golden Visa" program has attracted significant Chinese investment in Portuguese real estate, particularly in Lisbon.

Spain
Spain and China have been strengthening their economic ties in recent years. Spanish Prime Minister Pedro Sánchez has made multiple visits to China, aiming to boost trade and investment between the two nations. Key areas of collaboration include renewable energy, electric vehicles, and green hydrogen projects.

China has invested significantly in Spain, with over $10 billion directed toward industries like automotive manufacturing and solar power. Spain, in turn, exports goods such as pork and other agricultural products to China3. The relationship is seen as mutually beneficial, with Spain positioning itself as a bridge between China and the European Union.

The trade relationship between Spain and China is driven by several key industries:

Agriculture: Spain exports products like pork, wine, and olive oil to China, which are highly valued in the Chinese market.

Automotive: China imports vehicles and automotive components from Spain, supporting its growing demand for transportation and infrastructure development.

Technology: Spain imports electronics, machinery, and telecommunications equipment from China, including products from companies like Huawei and Xiaomi.

Textiles and Consumer Goods: Spain imports a significant amount of textiles, clothing, and various consumer goods from China, benefiting from competitive pricing and efficient production.

France
China and France share a robust economic relationship, with trade and investment being key pillars of their partnership. France exports luxury goods, agricultural products (like wine and cheese), and aerospace technology to China. In return, China supplies France with electronics, machinery, and textiles.

Recent years have seen deeper collaboration in areas like renewable energy, green technology, and cultural exchanges. High-level visits, such as French President Emmanuel Macron's trips to China, have strengthened ties, leading to agreements on trade, climate change, and global stability.

France also actively promotes its businesses in China through initiatives like Business France, which supports French companies in entering the Chinese market.

France-China Relations Trade Investment and Recent Developments

Italy
Italy and China have a dynamic economic relationship, with trade and investment playing key roles. Italy exports luxury goods, machinery, and agricultural products like wine and olive oil to China. In return, China supplies Italy with electronics, textiles, and consumer goods.

Recent initiatives, such as the Italy-China Joint Economic Committee and Business Dialogue Forum, aim to strengthen ties in sectors like agritech, e-commerce, and pharmaceuticals. Italy has also encouraged Chinese investment in its economy, particularly in infrastructure and innovation.

Italy cherishes Chinese investment wants more

Germany
China and Germany have a strong economic relationship, with trade and investment being central to their partnership. Germany exports high-quality machinery, automobiles, and chemicals to China, while importing electronics, textiles, and consumer goods from China.

However, competition has intensified in recent years, particularly in sectors like automotive and green technology. China's "Made in China 2025" strategy aims to dominate advanced manufacturing, posing challenges to Germany's industrial base. Despite this, both countries continue to collaborate on renewable energy, electric vehicles, and other innovative projects.

Chinas growing grip on key German industries
China has emerged as a major threat to Germany's car industry and is also putting the chemicals and engineering sector under pressure.

[url=https://www.cer.eu/sites/default/files/pbrief_ST_BS_china_shock_16.1.25.pdf]How German industry can survive the second
China shock[/url]
Industrial production in the EU's largest economy has been declining for over five years, a source of profound angst in a country where manufacturing contributes around 5.5 million jobs and 20 per cent of gross domestic product (GDP).
 Germany is starting to realise that China's new automotive, clean technology and civil aviation industrial base directly competes with Germany's manufacturing foundation. China's macroeconomic imbalances now directly infringe on German industrial interests.

Since the property bubble burst in 2021, China has doubled down on directed investment in priority manufacturing sectors, despite a lack of internal demand for much of its output. The result has been a turn back toward export-led growth, with Chinese exports (in volume terms) wildly outperforming
global trade in 2024, while German exports in capital and durable goods shrank.

 Germany was relatively sheltered from the initial China shock immediately before and after the country's accession to the World Trade Organisation (WTO) in 2001. Then, China's exports were in consumer electronics, furniture, apparel and household appliances - not the automotive and engineering sectors at the heart of the German economy. Wage restraint and the cost-savings from expanding supply chains to Central and Eastern Europe created a German competitive export sector
able to benefit from Chinese and American demand for machinery.

That is no longer the case: China's economy is much larger; its industry now produces the same goods as Germany and its export-biased growth is cutting into Germany's European and global export markets.

Eastern Europe
China has been actively engaging with Central and Eastern European countries through initiatives like the "16+1" framework (formerly 17+1), which promotes cooperation in trade, investment, and infrastructure. This partnership focuses on areas such as transportation, logistics, and cultural exchanges, aligning with China's Belt and Road Initiative.

Countries like Poland, Hungary, and Serbia have seen significant Chinese investments in railways, ports, and energy projects. However, some nations have expressed concerns about transparency and the long-term implications of these deals.

Across Europe
China and Europe share a complex yet significant economic relationship. China is the European Union's (EU) second-largest trading partner, with bilateral trade in goods reaching €739 billion in 2023. However, the trade balance heavily favors China, with the EU importing more from China than it exports.

Key industries driving this relationship include:

Technology and Electronics: Europe imports telecommunications equipment and machinery from China.

Automotive and Machinery: Europe exports motor vehicles and industrial machinery to China.

Green Technology: Both regions collaborate on renewable energy and environmental initiatives.

Despite the strong trade ties, challenges like market access asymmetries and differing economic policies persist.

Back To Steel
China has been accused of subsidizing its steel exports, which can lead to undercutting competitors in the global market2. These subsidies allow Chinese steel producers to sell their products at lower prices, creating challenges for other countries' steel industries. This practice has sparked trade tensions and anti-dumping measures from nations like Japan, South Korea, and India.

China's approach is often linked to its broader industrial policies aimed at maintaining dominance in strategic sectors

Chinas subsidies threaten harsh winter for global steel industry

Shell Game Case Studies in Chinese Steel Subsidies

Africa
China and Africa have developed a significant economic relationship over the years, with trade, investment, and infrastructure projects being key areas of collaboration. Here are some highlights:

Trade: China is Africa's largest trading partner, with trade volumes reaching record highs. Africa primarily exports natural resources like minerals, oil, and agricultural products to China, while importing manufactured goods, electronics, and machinery.

Infrastructure: Through initiatives like the Belt and Road Initiative (BRI), China has financed and built major infrastructure projects across Africa, including railways, ports, and energy facilities. These projects aim to boost connectivity and economic growth on the continent.

Investment: Chinese companies have invested heavily in Africa, particularly in sectors like mining, energy, and telecommunications. These investments have created jobs and contributed to local economies.

Debt and Diplomacy: China's financial involvement has raised concerns about "debt-trap diplomacy," where countries struggle to repay loans. However, China emphasizes its role in supporting Africa's development.

Cultural Exchange: Beyond economics, China and Africa have strengthened ties through educational programs, cultural exchanges, and people-to-people connections.

This partnership reflects mutual benefits but also poses challenges, such as ensuring sustainable development and addressing trade imbalances.

China has undertaken several significant projects in Africa, particularly through its Belt and Road Initiative (BRI). Here are some notable examples:

Kenya's Standard Gauge Railway: This railway connects Nairobi to Mombasa, reducing travel time from 10 hours to 4. It is one of Kenya's most expensive infrastructure projects.

Port Facilities in Djibouti: China developed the Doraleh multi-purpose port and established its first overseas naval base nearby. This strategic location supports regional peacekeeping and humanitarian operations.

Africa's Longest Suspension Bridge: In Mozambique, the Maputo-Katembe Bridge was built by China Road and Bridge Corporation, enhancing connectivity across the Bay of Maputo.

Mineral Projects in Botswana: Chinese companies have invested in mining operations, focusing on coal and clean power initiatives

How much land does China own in Africa?
The total area of Africa is approximately 1.2 billion acres, of which 71% is covered by land and 29% is covered by water. The total area of land that China owns in Africa is approximately 186,000 square miles (465,000 square kilometers). This is around 7% of the total land area in Africa.

Minerals in Botswana and Beyond
In recent years, BRI investment in Africa has shifted to mining the minerals needed to fuel China's high-tech and green industries, such as electric vehicles.

In 2023, China invested $7.8 billion in mining in Africa, according to US-based think tank the American Enterprise Institute.

That includes a $1.9 billion deal, reached last year, by state-owned MMG to buy the Khoemacau mine in Botswana, one of the world's largest copper mines.

In July, Chinese firm JCHX Mining Management agreed to buy Zambia's indebted Lubambe copper mine for just $2.

China has also invested in cobalt and lithium mines in Zambia, Namibia and Zimbabwe.

However, regional conflicts have proved an occasional barrier to Chinese investments. In July this year, authorities suspended all mining in part of the Democratic Republic of Congo, including where Chinese companies operate, to "restore order" there.
Read more at https://chinaglobalsouth.com/2024/09/01/five-key-chinese-belt-and-road-projects-in-africa/

South America
China has established a strong economic presence in South America, focusing on trade, investment, and infrastructure development. Here are some key aspects:

Trade: China is South America's largest trading partner, with significant imports of natural resources like soybeans, copper, and oil. In return, South America imports Chinese electronics, machinery, and consumer goods.

Investment: Through the Belt and Road Initiative (BRI), China has invested heavily in infrastructure projects such as ports, railways, and energy facilities. For example, the Chancay megaport in Peru is a major Chinese investment.

Mining and Energy: Chinese companies are deeply involved in South America's mining sector, particularly in the "lithium triangle" of Argentina, Bolivia, and Chile. They also control major copper mines in Peru.

Diplomatic and Cultural Ties: China has strengthened its relationships with South American countries through cultural exchanges and diplomatic efforts.

This growing partnership highlights China's strategic interest in South America's resources and markets.

Russia
China and Russia have developed a multifaceted economic and strategic partnership, particularly in recent years. Here are some key aspects of their business relationship:

Energy Trade: Russia is a major supplier of oil and natural gas to China, with pipelines like the Power of Siberia playing a crucial role in meeting China's energy demands.

Infrastructure Projects: Both countries collaborate on infrastructure development, including railways and ports, to enhance connectivity and trade.

Technology and Defense: There is growing cooperation in technology and military sectors, including joint ventures in aerospace and telecommunications.

Bilateral Trade: Trade between the two nations has grown significantly, with China being Russia's largest trading partner. They exchange goods like machinery, electronics, and agricultural products.

Geopolitical Alignment: Their partnership is also driven by shared interests in challenging Western dominance in global affairs.

India
China and India maintain a complex yet significant economic relationship, marked by both cooperation and competition. Here are some key aspects:

Trade: China is India's largest trading partner, with bilateral trade reaching a record $136.2 billion in 2023. India primarily imports electronics, machinery, and chemicals from China, while exporting products like iron ore, cotton, and pharmaceuticals.

Investment: Over 100 Chinese companies operate in India, particularly in sectors like infrastructure and electronics. However, India's government has increased scrutiny on Chinese investments due to geopolitical tensions.

Technology: India has been reducing its reliance on Chinese technology, especially in telecommunications, while encouraging domestic manufacturing and partnerships with other nations.

Challenges: The trade deficit heavily favours China, and border disputes have strained relations. Despite this, both nations recognize the importance of economic collaboration.

The Arctic
China has been actively increasing its presence in the Arctic, despite not being an Arctic nation. Here are some key aspects of its involvement:

Scientific Research: China operates research stations in the Arctic, such as the Yellow River Station in Svalbard, Norway. These facilities focus on climate studies, marine ecology, and polar exploration.

Shipping Routes: Melting ice in the Arctic has opened up new shipping routes, like the Northern Sea Route, which significantly reduces transit times between Europe and Asia. China sees this as a strategic opportunity for trade.

Natural Resources: The Arctic is rich in resources like oil, gas, and minerals. China has shown interest in collaborating with Arctic nations to access these resources.

Geopolitical Strategy: China declared itself a "near-Arctic state" in 2018 and aims to play a role in Arctic governance. It has observer status in the Arctic Council, allowing it to participate in discussions about the region.

China's Arctic ambitions reflect its broader goals of expanding its global influence and securing access to strategic resources.

Antarctic
China has been expanding its presence in Antarctica through scientific research and infrastructure development. Notable efforts include:

Research Stations: China operates multiple Antarctic research stations, including the recently established Qinling Station. These facilities focus on climate studies, biodiversity, and polar exploration.

Icebreaker Expeditions: China's icebreakers, such as Xuelong and Xuelong, conduct extensive scientific missions, collecting data on ice sheets, penguin habitats, and oceanic conditions.

Clean Energy Initiatives: At its research stations, China is implementing clean energy systems using wind, solar, and hydrogen power.

International Collaboration: China engages in joint research projects with other countries, contributing to global understanding of Antarctica's role in climate change.