BEIJING -- Chinese companies' "going out" since the early 21st Century when China formally initiated the "going out" strategy has brought new vitality to such developed economies as the UK.
Generally, Chinese companies' going out, usually in form of acquiring stakes of UK firms to sharpen their technology, raises tax revenue and employment in relevant UK localities.
Take Shandong Yongtai Group as an example, the company, a private auto tire producer located in Dongying of Shandong Province, east China and a Chinese tire supplier for the World Rally Championship, spent 30 million British pound on acquiring 70 percent stake of Covpress International Holdings, a UK-based supplier of body panels for many renowned auto makers in July 2013, joined by TIA Treadsetters, a tire maker in western central England.
For UK, the deal not only boosted local tax income growth but also stabilized employment and guaranteed production, said Jin Xu, Minister Counsellor of the Economic and Commercial Counsellor's Office of the Chinese Embassy in London.
Apart from Covpress International Holdings, Chinese auto maker - Zhejiang Geely Holding Group bought in early 2013 business and core assets of Manganese Bronze Holdings (MBH), the leading manufacturer of London's black taxicabs, at a cost of 11.04 million British pound, steering the latter's production line of London black taxicabs out of production halt in September 2013.
Jin said that Geely acquiring MBH solved the latter's employment problem and increased local tax revenues, which was welcomed by local governments.
Similar to this, there are other Chinese automakers taking over famous UK auto firms. In 2005, Nanjing Automobile (Group) Corporation (NAC), now a wholly-owned subsidiary of SAIC Motor, took over the insolvent assets of MG Rover and continued operations under the new title - MG Motor UK. Hence, MG Motor UK became a wholly-owned subsidiary of SAIC Motor in UK.
Wang Hao, head of MG Motor UK said MG Rover's then bankruptcy caused unemployment and hampered local economy and the acquisition saved its renowned sport car brand - MG.
Now, SAIC Motor employs about 400 staffs, of which only a few are Chinese employees, meaning highly localized business operating which also created lots of jobs for R&D, vehicle manufacturing, international part purchase and logistics, marketing-related industries in UK.
What's more, SAIC Motor's relatively large input into its business in UK annually worked effectively in pulling up local economy.
After takeover of MG Rover, "we highlight breakthrough" and have developed many new auto models together with the launch of new energy vehicles to enrich our product lines, noted Wang, adding that more auto models will be rolled out to satisfy demand from different consumers.
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