China Business Digest July presents key takeaways from the past month for doing business in China including:
- Hot Topic: Reflecting on the not-quite-complete China Audit
- Hot Topic: What does the UK’s 10-year industrial strategy for growth mean for business in China?
- Insights: Is it easier to do business in China now?
Hot Topic 1: What the China Audit Actually Says About Doing Business with China?
The newly released China Audit report by the UK government lands in more pragmatic territory. It centers on the idea that there should be cooperation where it counts and protection where it matters. Overall, the tone presented was a tone notably cooler than before. The two main threads running through: national security and resilience, and strategic engagement with guardrails. The caveat is this is what can be glimpsed from what was actually was released, as the full China audit remains unreleased.
This shift means there is tightened scrutiny around critical infrastructure, a clear-eyed view of supply chain risks, and overall a more nuanced ‘small garden, high fence’ approach to trade and business engagement with China. The audit also promised some much needed investment in improving China fluency and expertise among civil servants. Some estimates put the number of truly fluent Chinese speakers in the foreign office at only five.
For businesses, the message from the dual-track approach to China – build strategic partnerships while reinforcing economic security – reads like: don’t exit, adapt. It’s about tackling complexity with sharper tools. Risk awareness, scenario planning, and knowing your exposure points will matter more than ever.
Related reading:
- China audit: Foreign Secretary’s statement – GOV.UK
- What the UK must get right in its China strategy – Chatham House
- China firmly opposes Britain’s statement on ‘China Audit’ – China Daily
Hot Topic 2: Where Does China Fit Into Britain’s 10-Year Growth Plan?
As the UK doubles down on long-term growth through a 10-year industrial strategy and Invest 2035, China remains a critical—if complex—part of the equation. The strategy targets eight powerhouse sectors, from advanced manufacturing and clean energy to fintech and life sciences, with a focus on R&D, skills, infrastructure, and global competitiveness.
For those watching the UK-China trade, this opens up new lanes. The two policy documents share common ground: both call for smarter engagement, especially in clean tech, digital services, and advanced manufacturing. Collaboration is still on the table—so long as it’s underpinned by economic security and strategic clarity.
For British businesses, this is a moment of dual opportunity: to tap into sectoral synergies while building resilience. China’s industrial evolution intersects with the UK’s strengths, offering potential across supply chains, capital markets, and innovation ecosystems. Meanwhile, new institutions like the Economic Security Advisory Service are helping companies navigate geopolitical headwinds with foresight.
Related reading:
- Business leaders welcome the government’s modern Industrial Strategy – GOV.UK
- Implementation of Industrial Strategy will need to address broader business environment – IOD
- Industrial Strategy 2025: What it means for the Energy Infrastructure and Digital Tech Sector – TechUK
Insights: Is it Easier to do Business in China Today?
From policy audits to industrial ambition, the UK is reshaping its relationship with China and rewriting its modern industrial strategy. China fits in, but on re-calibrated terms now. Our case studies emphasis this point, the UK’s growth plan isn’t about decoupling but about engaging strategically with progressive realism.
Crayfish.io Founder & CEO Ting Zhang FRSA shared her insights recently at two different platforms, which illustrated exactly this point. At GTR UK – Trade and export finance conference 2025 (GTR UK 2025), Ting Zhang was asked: “Is it easier or harder for Western companies to do business in China today?” Her answer? Yes —but it’s worth understanding why. Ting’s blog reflects on this deceptively simple question. This is a timely one for any Western business eyeing growth in China, especially in the UK following the China Audit and 10 year strategy. Her blog goes beyond the headlines to unpack the real shifts: stronger IP enforcement, smoother market entry, and signs of regulatory openness. She doesn’t shy away from the friction points either. For anyone serious about doing business in the world’s 2nd largest market, it’s a must-read.
A key case study was presented on this topic during Ting’s talk at a webinar hosted by Flanders-China Chamber of Commerce (FCCC) in mid-June: Manufacturing in China and Setting up Your Own Facility. The presentation delves into the evolving manufacturing and supply chain landscape in China, offering practical recommendations, illustrated with a real-world case study.
This article is produced in partnership with Crayfish. If you like this article why not read: China’s Economic Snapshot for H1 2025
