IQ-Magazine-Issue-15

IQ business overview
BUSINESS
OVERVIEW
IQ looks at the impact that Chinese
investment may have on our local
economy and other regional highlights
From many angles, the state visit of the President
of the People’s Republic has been a resounding
success. The government seems happy that valuable
investments are heading this way. There also seems
to be more of a will to work together and, forgetting
the odd protest over human rights, most people seem
happy.
There are, however, a few notes of caution being
sounded here and there. Why are we relying on one
huge investor? What happens if the recent downturn
in the Chinese economy turns into a serious
depression? What happens if there’s a souring of
relations between the UK and China?
And what’s in it for East Anglia? Quite a lot, really,
though if we relied on the information in many of
the newspapers, the main beneficiaries are not in our
region. The billions of yuan which will underwrite
major infrastructure projects are heading to Hinckley
Point, London or the “Northern Powerhouse” –
for which read mainly Manchester.
But quietly, somewhere rather under the radar of
national newspaper business reporters, there was
the announcement that Sizewell C will go ahead.
This, said John Dugmore, Chief Executive of
Suffolk Chamber of Commerce, “... is good news for
Sizewell C and good news for our local and regional
economy.” The Chamber estimates that £40m will
be pumped into the local economy during each
year of the plant’s operation. In addition, there are
around 1,000 local companies registered as suppliers
to the plant, so the quiet Chinese announcement is
welcome news. 5,000 jobs will also be created during
the construction process, and a further 900 once the
plant becomes operational.
The Chinese involvement, through China General
Nuclear Power Corporation, will take a 20% stake
in the development phase. Perhaps more concerning
issue 15 | page 8