This is the second article produced by the British Embassy that refutes inaccurate public statements on Hong Kong-related topics. Please see the first article here.

On 22 July 2020, the Home Secretary announced a bespoke immigration route for eligible BN(O)s from Hong Kong. The Hong Kong BN(O) Visa will allow BN(O)s and their dependants to stay in the UK for up to five years, with the right to work and study. In UK immigration jargon, this is known as ‘leave to remain’, the scheme will open to applicants on 31 January, 2021.

The UK Government’s decision to introduce the Hong Kong BN(O) Visa follows the imposition of the National Security Law (NSL) on Hong Kong by the Chinese Government in June 2020, in a clear breach of the Joint Declaration. Both the Prime Minister and Foreign Secretary made it clear on numerous occasions that if China breached Hong Kong’s high degree of autonomy the UK would respond by putting in place new visa arrangements.

Claim – The Joint Declaration provides no right or entitlement for the UK to interfere in Hong Kong beyond handover in 1997.

The Joint Declaration contains not a single word or article that confers any responsibility on the UK over Hong Kong after 1997. The UK has no sovereignty, jurisdiction or right of supervision over Hong Kong. So there is no “commitment to the people of Hong Kong” on the UK side.

23 October 2020 http://www.fmcoprc.gov.hk/eng/gsxw/t1826190.htm

Response

The UK accepts without equivocation Chinese sovereignty of Hong Kong and does not support or encourage independence. However, the Joint Declaration remains a legally binding international agreement.

In 1984 China made a legally binding commitment to the UK to ensure the rights and freedoms of the people of Hong Kong, maintain Hong Kong’s high degree of autonomy, and leave its lifestyle, social and economic systems unchanged for 50 years from 1997. The UK has the right under the Joint Declaration to hold China to this commitment.

Claim – The UK’s Hong Kong BN(O) Visa scheme is a breach of the Joint Declaration

The UK is “openly breaching its commitments and international law”. 23 July, 2020 MFA spokesperson Wang Wenbin

“The British side broke its commitments first”. 23 October, 2020 MFA spokesperson Zhao Lijian

Response

The UK has consistently fulfilled all of its obligations under the Joint Declaration. The Joint Declaration makes no mention of BN(O)s. The UK memorandum connected to the Joint Declaration is clear that BN(O) status does not confer the right of abode in the UK – that remains the case.

Claim – The Chinese may withdraw recognition of BN(O) passports

As the British side broke its commitment first, the Chinese side will consider withdrawing recognition of the BN(O) passport as valid travel documents. 23 October, 2020 MFA spokesperson Zhao Lijian

Response

The Chinese and British Governments exchanged memoranda of understanding attached to the Joint Declaration in 1984. The Chinese Government committed to “permit Chinese nationals in Hong Kong who were previously called ‘British Dependent Territories Citizens’ to use travel documents issued by the Government of the United Kingdom for the purpose of travelling to other states and regions”. Withdrawing recognition of BN(O) passports would be in direct contravention of this commitment by the Chinese Government.

Claim – The UK is manipulating international law

The UK has manipulated the rights and status of BN(O) passport holders, openly breaching its commitments and international law. 23 July, 2020 MFA spokesperson Wang Wenbin

Response

The UK has amended its own immigration rules to grant Hong Kong BN(O) Visa holders limited leave to remain in the UK. Hong Kong BN(O) status holders remain subject to immigration controls, and as such do not have the right of abode.

The limited leave to remain provides the right to work or study in the UK for those in Hong Kong who choose to retain their historic ties to the UK by taking up their BN(O) entitlement. Other than these changes, the UK has in no way altered, amended, enhanced or diminished the rights or status of BN(O) passport holders.

• A BN(O) passport does not automatically allow the holder to permanently reside in the UK;
• A BN(O) passport does not confer UK citizenship;
• A BN(O) passport holder has no recourse to public funds or government benefits;
• A BN(O) passport cannot be passed on to family members or children;
• The BN(O) scheme remains closed to new applicants since 1997.

These facts remain unchanged. The UK is acting entirely in accordance with international law.

Claim – The UK is offering residency to Hong Kong citizens

“The UK has now, in total disregard of the strong opposition of the Chinese side, offered a route for BNO passport holders to the right of abode” 23 July, 2020 Chinese Embassy in UK

Response

The UK’s immigration policy is transparent and consistent. There has been no change in the right of abode conferred on BN(O) passport holders. The new route for BN(O)soffers no automatic right to reside in the UK and holders will be subject to the same application processes for permanent residency which have always applied. The BN(O) Visa offers limited leave to remain in the UK for up to five years. Chinese mainland citizens – or citizens of any other country for that matter – who have spent 5 years continuously resident in the UK are equally entitled to apply for “settled status” after this period.

Claim – The UK is offering citizenship to Hong Kong citizens

“The UK is offering a route to BNO passport holders for citizenship in the UK” 23 July, 2020 Chinese Embassy in UK

Response

A BN(O) passport does not provide UK citizenship and there has been no change to the status of Hong Kong-based holders of a BNO passport in this regard. The pathway to UK citizenship is a clear and transparent process to which anyone – including Chinese nationals – may apply.

England

In England, the November data shows on average, house prices have risen by 1.2% since October 2020. The annual price rise of 7.6% takes the average property value to £266,742.

The regional data for England indicates that:

• London experienced the greatest monthly price rise, up by 4%
• the East of England saw the lowest monthly price growth, with a fall of -0.3%
• London and Yorkshire and the Humber experienced the greatest annual price rise, up by 9.7%
• the East of England saw the lowest annual price growth, with a rise of 4.8%

Price change by region for England

Repossession sales by volume for England

The lowest number of repossession sales in September 2020 was in the East of England.

The highest number of repossession sales in September 2020 was in the North East.

Average price by property type for England

Funding and buyer status for England

Building status for England

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

London

London shows, on average, house prices rose by 4.0% since October 2020. An annual price rise of 9.7% takes the average property value to £513,997.

Average price by property type for London

Funding and buyer status for London

Building status for London

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Wales

Wales shows, on average, house prices have risen 2.0% since October 2020. An annual price rise of 7.0% takes the average property value to £180,229.

There were 36 repossession sales for Wales in September 2020.

Average price by property type for Wales

Funding and buyer status for Wales

Building status for Wales

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Access the full UK HPI

The UK HPI is based on completed housing transactions. Typically, a house purchase can take 6 to 8 weeks to reach completion. The price data feeding into the November 2020 UK HPI will mainly reflect those agreements that occurred after the government measures to reduce the spread of coronavirus (COVID-19) took hold.

UK house prices

UK house prices increased by 7.6% in the year to November 2020, up from 5.9% in October 2020. On a non-seasonally adjusted basis, average house prices in the UK increased by 1.2% between October and November 2020, compared with a fall of 0.4% during the same period a year earlier (October and November 2019).

The UK Property Transactions Statistics showed that in November 2020, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 115,190. This is 19.3% higher than a year ago. Between October and November 2020, UK transactions increased by 8.6% on a seasonally adjusted basis.

House price growth was strongest in Yorkshire and the Humber and London where prices increased by 9.7% in the year to November 2020. The lowest annual growth was in the East of England, where prices increased by 4.8% in the year to November 2020, up from 4.3% in the year to October 2020.

See the economic statement.

Background

1. The UK House Price Index (HPI) is published on the second or third Wednesday of each month with Northern Ireland figures updated quarterly. The December 2020 UK HPI will be published at 9.30am on Wednesday 17 February 2021. See calendar of release dates.

2. We have made some changes to improve the accuracy of the UK HPI. We are not publishing average price and percentage change for new builds and existing resold property as done previously because there are not currently enough new build transactions to provide a reliable result. This means that in this month’s UK HPI reports, new builds and existing resold property are reported in line with the sales volumes currently available.

3. The UK HPI revision period has been extended to 13 months, following a review of the revision policy (see calculating the UK HPI section 4.4). This ensures the data used is more comprehensive.

4. Sales volume data is also available by property status (new build and existing property) and funding status (cash and mortgage) in our downloadable data tables. Transactions involving the creation of a new register, such as new builds, are more complex and require more time to process. Read revisions to the UK HPI data.

5. Revision tables have been introduced for England and Wales within the downloadable data. Tables will be available in csv format. See about the UK HPI for more information.

6. Data for the UK HPI is provided by HM Land Registry, Registers of Scotland, Land & Property Services/Northern Ireland Statistics and Research Agency and the Valuation Office Agency.

7. The UK HPI is calculated by the Office for National Statistics (ONS) andLand & Property Services/Northern Ireland Statistics and Research Agency. It applies a hedonic regression model that uses the various sources of data on property price, in particular HM Land Registry’s Price Paid Dataset, and attributes to produce estimates of the change in house prices each month. Find out more about the methodology used from the ONS and Northern Ireland Statistics & Research Agency.

8. The UK Property Transaction statisticsare taken from HM Revenue and Customs (HMRC) monthly estimates of the number of residential and non-residential property transactions in the UK and its constituent countries. The number of property transactions in the UK is highly seasonal, with more activity in the summer months and less in the winter. This regular annual pattern can sometimes mask the underlying movements and trends in the data series so HMRC also presents the UK aggregate transaction figures on a seasonally adjusted basis. Adjustments are made for both the time of year and the construction of the calendar, including corrections for the position of Easter and the number of trading days in a particular month.

9. UK HPI seasonally adjusted series are calculated at regional and national levels only. See data tables.

10. The first estimate for new build average price (July 2016 report) was based on a small sample which can cause volatility. A three-month moving average has been applied to the latest estimate to remove some of this volatility.

11. The UK HPI reflects the final transaction price for sales of residential property. Using the geometric mean, it covers purchases at market value for owner-occupation and buy-to-let, excluding those purchases not at market value (such as re-mortgages), where the ‘price’ represents a valuation.

12. Information on residential property transactions for England and Wales, collected as part of the official registration process, is provided by HM Land Registry for properties that are sold for full market value.

13. The HM Land Registry dataset contains the sale price of the property, the date when the sale was completed, full address details, the type of property (detached, semi-detached, terraced or flat), if it is a newly built property or an established residential building and a variable to indicate if the property has been purchased as a financed transaction (using a mortgage) or as a non-financed transaction (cash purchase).

14. Repossession sales data is based on the number of transactions lodged with HM Land Registry by lenders exercising their power of sale.

15. For England, this is shown as volumes of repossession sales recorded by Government Office Region. For Wales, there is a headline figure for the number of repossession sales recorded in Wales.

16. The data can be downloaded as a .csv file. Repossession sales data prior to July 2016 is not available. Find out more information about repossession sales.

17. Background tables of the raw and cleansed aggregated data, in Excel and CSV formats, are also published monthly although Northern Ireland is on a quarterly basis. They are available for free use and re-use under the Open Government Licence.

18. HM Land Registry’s mission is to guarantee and protect property rights in England and Wales.

19. HM Land Registry is a government department created in 1862. Its ambition is to become the world’s leading land registry for speed, simplicity and an open approach to data.

20. HM Land Registry safeguards land and property ownership worth in excess of £7 trillion, including over £1 trillion of mortgages. The Land Register contains more than 25 million titles showing evidence of ownership for some 87% of the land mass of England and Wales.

21. For further information about HM Land Registry visit www.gov.uk/land-registry.

22. Follow us on Twitter, our blog, LinkedIn and Facebook.

Good morning. Thank you, Sir David [Wright], for your introduction, and to City and Financial Global for organising today’s event.

I am delighted to be here at this important summit alongside Hiroshi Matsuura and Graham Zebedee, the chief negotiators of the United Kingdom and Japan’s great new trade deal.

We are here today to talk about the political, economic, and financial opportunities ahead for our like-minded island nations.

Political vision: Alliance of democratic nations

2021 is a crucial year. The UK is back as an independent trading nation, with a lower, simpler and greener tariff regime and deals done covering 63 nations plus the EU – securing £897 billion of trade.

Of these deals, our new Comprehensive Economic Partnership Agreement with Japan is the jewel in the crown as we go for the first time under the UK’s independent trade policy further and faster in digital and data, the creative industries, rules of origin and legal protection for UK food and drink.

As we prepare to champion free and fair trade on the world stage, I cannot think of a better nation to be standing alongside us than Japan.

We can help the world build back better after the Covid crisis through the UK’s hosting of the G7 this year and Japan’s chairing of the Comprehensive and Progressive agreement for Trans-Pacific Partnership.

These are golden opportunities for us together to advance the cause of free and fair trade.

As the hosts of the G7, the UK will be inviting other leading democracies as guests to support our alliance of democratic nations. We need to work together with these countries, who alongside us cover 52 per cent of world GDP, to ensure free trade is not undermined by practices such as environmental degradation, non-market economies artificially subsidising goods or the violation of human rights.

We will work together in the run-up to the first WTO Ministerial Conference for three years, likely to be held in December.

Today, of course, sees the inauguration of President Biden, who has said he is committed to working with fellow democracies to set the rules of the road of international trade. I look forward to working with the newly appointed United States Trade Representative, Katherine Tai, to work on that alliance of democratic nations.

I know that Japan too is a close ally of the United States, and together we can support democracy, rules-based trade and a cleaner planet.

Bilateral relationship

Japan and the UK are natural partners in this mission.

As island nations, we both have to trade in order to improve the prosperity of our people and to secure the goods that we need. Autarky is not an option.

But we also know that trade has brought huge prosperity to our nations. Look at how Japan thrived from the 1960s by embracing exports and competitive taxes… and the benefits felt across the UK after Margaret Thatcher ushered in new Japanese investment.

Put simply, trade equals jobs…. as Japanese investment supports over 150,000 jobs across the country from Nissan in Sunderland to Fujitsu in Birmingham.

As fellow democracies, we have a strong shared interest in ensuring trade does not undermine our values and the way of life we have built over generations.

We have a huge opportunity to set new standards in new areas like digital and data, intellectual property, services trade and environmental provisions.

We have seized this opportunity by agreeing a truly British-shaped trade deal, which delivers more for our key industries than before.

I am proud to say the terms of the deal are now live, which means that right now:

Our technological innovators can benefit from a joint digital market, built on cutting-edge provisions protecting the free flow of data, source code and banning data localisation.

Our services providers can do business in the third largest economy in the world even more easily through clear, transparent rules for visas and greater mobility arrangements.

And our creative industries will have their brands protected, as we go beyond the EU in tackling the online infringement of IP rights.

I am looking forward to delivering the full benefits of our deal this year… with over 70 of our fantastic products from Welsh lamb and Scotch beef to English sparkling wine set to be protected geographical indications, subject to domestic processes.

We will work to ensure all British businesses can access the opportunities on offer through our network of International Trade Advisers, the Export to Japan portal and our information on Gov.uk.

CPTPP

This agreement paves the way for the UK to join Japan in one of the world’s most dynamic trading areas: CPTPP.
Japan was instrumental in making this high-standards agreement happen through its vision of a group of like-minded nations wanting to shape global trade in the right way.

We will shortly submit our formal request to join this free trade area, and are delighted that Japan is ready to welcome the UK into the fold, alongside other vibrant members such as Chile and New Zealand.

The benefits are there to see, whether it is the deeper access to nearly £9 trillion of GDP covered by its members, the modern rules of origin, the 95% tariff-free trade on goods traded between members from cars to seafood, or the modern standards in services, data and digital trade.

These modern standards would play to the UK’s strengths as a global hub for services and technology trade. We are already the second largest exporter of services globally, and third in the world for billion dollar “tech unicorn” success stories.

Together, we can help set the standard for trade in the 21st century, promote higher standards in green trade and pile pressure on the World Trade Organisation to reform.

The WTO Ministerial Conference later this year is a real opportunity for us to tackle the disputes and dysfunctionality that have riven the global trading system, as we build back a better trading environment.

UK-Japan: building back better

After a thorough and fair negotiation with my good friend and counterpart Toshimitsu Motegi and his team, I am proud to say Japan and the UK have a fantastic trading relationship.

We are perfect partners as island democracies. We share a desire for free and fair trade under cutting-edge rules, as promoted by CPTPP, while delivering jobs and opportunity at home.

But this alliance is not just about supporting our economies through trade. We are working together on security and defence; we are pushing new frontiers in innovation through our Global Partnership on AI and we are both committed to net zero in the run up to Cop26. On every front, Japan is showing itself to be a true friend of the United Kingdom.

My hope is that 2021 can be the year our two great island democracies weather the unprecedented challenges caused by this Covid crisis and build back better so we can seize the unparalleled opportunities ahead. Together, we can make that happen.

• First export of UK-built trains for over 12 years allows Bombardier to expand manufacturing capacity in Derby
• UK Export Finance provides £1.7bn backing for deal with Egypt
• Government-backing part of commitment to help exporters across the UK build back better and take advantage of new trade deals

A consortium led by Bombardier Transportation has confirmed a deal with the Egyptian Government to build two new monorails thanks to £1.7 billion backing from UK Export Finance (UKEF), the largest amount of financing it has ever provided for an overseas infrastructure project.

International Trade Secretary Liz Truss today announced the government guarantee, which will support highly skilled jobs in Derbyshire as the UK builds back better in the aftermath of coronavirus.

Bombardier’s consortium was named preferred bidder for the project at the 2020 UK-Africa Investment Summit and, with UKEF’s guarantee, has secured the financing needed to fulfil the contract and start production. Bombardier can now invest in its manufacturing centre in Derby where the trains for the Egyptian monorails will be designed and built.

This will be the UK’s only monorail car production line and will directly support 100 UK jobs at the company and many more in its UK supply chain.

This news comes as the UK hosts the Africa Investment Conference today (January 20 2021), its first major international investment conference as an independent trading nation. The UK-Africa trade relationship was valued at £35 billion in 2019, with around £54 billion of bilateral investment stock on top of that. The UK is by far the biggest foreign direct investor in Egypt and continues to aspire to be its trade and investment partner of choice, and UKEF will play a key role in this shared vision for growth.

International Trade Secretary Liz Truss said:

Trade is an incredibly powerful way to propel growth and create jobs as we recover from the pandemic. This deal shows why we are so determined to get businesses to grasp these opportunities and take advantage of the support available from Government.

One third of our economy is exports. That’s why support from our export credit agency is vital. It can help the UK get a bigger slice of the global economic pie, secure jobs across the country and make the most of our newfound independence as a trading nation.

Matt Byrne, president of Bombardier Transportation (UK and Ireland), said:

The Cairo Monorail export win, against international competition, shows that that the UK rail sector can fight and win in key growth markets such as sustainable transport.

This is the first UK export since our Derby-built trains were exported to South Africa for the Gautrain project in 2008.

Thanks to UKEF’s support and those working in Embassies across North Africa, this new deal will bring sustainable benefits to Egypt and create job opportunities in the UK.

The financing came together at the height of the pandemic, which would not have been possible without the commitment of all parties involved, including strong support from the lawyers. The project is of significant national importance to Egypt, and we are honoured to have been selected by NAT and the Government of Egypt to deliver this UKEF-backed financing, which will enable this major project to become a reality.

Ashurst partner Tom Longmuir, said:

This is a transformational infrastructure project, which will generate huge social benefits for Cairo residents and for Egypt. We are delighted to have assisted JPMorgan and UK Export Finance in bringing a complex financing to a successful close in testing market conditions.

Bombardier employs 4,000 people in the UK, with around 2,000 in Derby including over 400 specialised engineers, who develop and build trains for rail franchises across Britain. This expertise will be used to build and maintain two electrified monorails that together will transport millions of people every year in the Cairo metropolitan area. The new lines will connect the New Administrative City with East Cairo and 6th October City with Giza.

The monorails are a part of Egypt’s plans to build a sustainable transportation infrastructure that can cope with its growing population while reducing climate change impacts.

Bombardier also sees additional opportunities to increase its exports of UK built trains using its new production line as global demand for fast, sustainable public transportation solutions increases.

The UKEF supported Buyer Credit facility will be administered by JP Morgan acting as the Initial Mandated Lead Arranger and the Facility Agent. Reinsurance support has also been secured with the help of Italian ECA SACE and Spanish ECA CESCE.

About UK Export Finance

UK Export Finance is the UK’s export credit agency. It exists to ensure that no viable UK export lacks for finance or insurance from the private market, providing finance and insurance to help exporters win, fulfil and get paid for export contracts.

About Bombardier Transportation

Bombardier Transportation is a global mobility solution provider leading the way with the rail industry’s broadest portfolio. It covers the full spectrum of solutions, ranging from trains to sub-systems and signalling to complete turnkey transport systems, e-mobility technology and data-driven maintenance services. Combining technology and performance with empathy, Bombardier Transportation continuously breaks new ground in sustainable mobility by providing integrated solutions that create substantial benefits for operators, passengers and the environment. Headquartered in Berlin, Germany, Bombardier Transportation employs around 36,000 people and its products and services operate in over 60 countries.