The historic decision of United Kingdom to exit from European Union (EU) has changed the dynamics of the world. The exit from EU, popularly known as Brexit, caused businesses to rethink about their business models and move headquarters in a territory to reap benefits associated with EU. The trade regulations followed by business in the country will be changed after the decision. This will affect the country’s economy. Moreover, the decision also affected the relationship of the U.K. with its neighboring countries and countries it had strong trade ties. The decision to exit EU made the country seek new ties to boost its economy by forming relationship with countries that have abundant opportunities. China is one of the countries with huge opportunities.
The U.K. Prime Minister Theresa May is looking forward to strengthening its relationship with China and form strong trade ties. She began her trip to China on Wednesday with 50 delegations, from sectors including healthcare, clean energy, and others. Some experts believe that the ongoing negotiations to exit from EU have spurred the need to look for the options in the east.
There is a need for the U.K. to establish its trade relationship with the remaining 93 percent world outside the Europe. Michael Sippitt, chairman of Clarkslegal, a commercial law firm in the U.K., “The geography is on China’s side, the U.S. was always going to struggle with competing in Asia, so right now for the EU and the U.K. the center of world economic gravity is moving east and the best response of British businesses to Brexit is to move east as well.”
The technology sector is shifting its focus on healthcare and offering solutions based on artificial intelligence (AI). Tech giants in China such as Alibaba and Tencent have made progress in development of AI to help doctors. Their robots and AI programs have passed licensing examination of the country. Eyeing their shifting focus on AI, the British AI startup Medopad signed 15 deals worth over 100 million pounds with Chinese tech giants such as Tencent, GSK China, Ping An, and others. The partnership with Tencent will be significant for the application of AI in healthcare sector. They intend to make advancements in the research and development activities along with providing clinical decision support.
Dan Vahdat, CEO of Medopad, told CNBC, “By working with the biggest names, Tencent being the largest technology company and doing collaborations on AI and areas that China is investing a lot of money into it, and us leveraging our medical knowledge, together we think we can add value to a lot of patients within China but also globally.”
In the wake of Chinese government supporting companies working on development of AI for healthcare, Medopad can have great opportunities for growth in the country. Not only AI sector but also other sectors such as Scotch industry have ample opportunities in coming years. Karen Betts, chief executive of the Scotch Whisky Association outlined that China is a land of massive growth opportunities. With growth in disposable income, Chinese people have changed their preferences and analysts believe that they would be interested in trying foreign imported spirits. Moreover, Chinese authorities took essential steps in removing counterfeit Scotch, offering a great potential for genuine Scotch manufacturers.
Theresa May’s visit to China may become an inception of golden era between two countries. May outlined that she has been keen to explore all the options for trade relationship for the future. This trip is significant for U.K. businesses to tap into the Chinese market and capitalize on ample opportunities.