HM Government

Chief Executive, distinguished guests, Lords, Ladies and Gentlemen.

It is an honour to be here this evening.

As everyone in this room knows, this year’s annual dinner marks a very special anniversary.

On 1st July 1997, Prince Charles and Lord Patten sailed away on the Royal Yacht Britannia…

…having marked the transfer of Hong Kong’s sovereignty to China.

And 20 years later, I am delighted, on behalf of the British Government, to warmly welcome Mrs Carrie Lam, the first female Chief Executive of Hong Kong, for her first official visit to London in that role.

A lot of predictions were made two decades ago about Hong Kong’s future…

…and the future of British-Hong Kong relations.

Some predicted Hong Kong’s economic downfall…

…that under Chinese sovereignty, it would become a highly regulated and stifled economy and society.

But those people got it wrong.

Because during the past two decades, Hong Kong has prospered…

…and today stands as one of the most thriving, exciting, dynamic cities in the world…

…serving as an international gateway to one of the biggest and fastest-growing markets in the world.

And that has not happened by accident.

Hong Kong’s success is underpinned by its high degree of autonomy…

…its stable government, and its strong legal system…

…and by its rights and freedoms as underpinned by the Joint Declaration made twenty years ago…

…which was designed to protect Hong Kong’s strengths, security and prosperity.

‘One Country, Two Systems’, has protected Hong Kong’s success…

…and, going forward, must continue to do so.

A success that has been marked by another feature.

The enduring, deep and strong relationship between Britain and Hong Kong.

This is based on much more than just our historic ties.

It’s about our shared values.

It’s about the influence Hong Kong culture has had on British life…

…and that British culture has had in Hong Kong.

It is based on the tens of thousands of Hong Kongers who study in Britain…

…and the tens of thousands of alumni from British institutions who live and work in Hong Kong.

And of course, it is also about our inextricably intertwined economies.

Which are two of the most open, free-trading, financially connected places on the planet.

But there is, even more, we can do together…

…in trade and investment, finance, and cultural exchange…

…because as Chancellor of the Exchequer, I am clear that to succeed in a fast-paced, ever-changing world…

…particularly as we transition out of the European Union…

…Britain must build ever stronger connections to the fast-growing economies of the east…

…and go out and win more business, and attract more investment…

…because that is the only way that we’ll stay ahead, and sustain prosperity, jobs, and living standards for people up and down this country.

The deep historical, economic, and cultural ties between our people and societies, mean the UK and Hong Kong are natural partners.

Take trade and investment.

Hong Kong is already the UK’s second largest export market for goods in the Asia-Pacific…

…investment from Hong Kong into the UK has increased by 35% since 2010…

…and Hong Kong serves as a base for 630 British companies, and over a third of all British investment in Asia…

This relationship brings jobs and prosperity to both our economies.

Companies like CK Hutchinson, who have become the single largest investor in the UK since they first invested here over 30 years ago…

…are responsible for around 40,000 jobs here in the UK;

And just this year we’ve seen new investments, such as Far East Consortium’s £1bn investment this year into the Northern Gateway site in Manchester;

In Hong Kong, British firms are working to deliver Hong Kong’s ambitious infrastructure plans…

…from Atkins and Mott MacDonald’s design of Hong Kong Airport’s third runway (something I wish I could say we were collaborating on in London)…

…to the new West Kowloon Cultural District.

And there are many opportunities for further collaboration to come as China drives forward plans for the Belt and Road initiative…

…plans which I heard first-hand when I attended the Belt and Road Forum in Beijing earlier this year.

But it is not just about large global players, in traditional areas such as housing and infrastructure.

It’s in tech and start-ups too.

From artificial intelligence company – like Kami Intelligence – who have recently set-up offices in London and Belfast.

And just today – the TNG FinTech Group have announced a £20m investment to launch their e-wallet platform in the UK.

When these companies chose to expand, they chose to come to the UK, because we have the best environment for start-ups, one of the most open and competitive economies in the world, and a world-class financial centre.

And I want to see more of this two-way flow of investment.

Because where London has experience that Hong Kong can learn from, we want to share it.

And where Hong Kong has the know-how, we want to listen.

And that brings me onto the second aspect of our collaboration.

London and Hong Kong are two of the world’s leading financial centres.

And we are two of the most connected financial markets in the world.

But we’re not in competition. We’re in collaboration.

While London sleeps, Hong Kong traders are responsible for over $400bn of daily forex trading.

And when Hong Kong slumbers, the City of London and Canary Wharf fire into life and take over the mantle of world-leading forex markets.

And over the past few years London and Hong Kong have collaborated on one of the most important developments in financial markets:

The increasing international use of China’s currency, the Renminbi.

Hong Kong is the largest offshore centre for RMB in the world.

This is not a position that London feels competitive about – it is a position we actively support.

As the Western Hub for RMB trading, London has gone from next to no trading five years ago…

…to almost 50 billion RMB trading a day…

…over 20% of all UK-China goods trade was settled in RMB in the first half of this year…

…and there are now over 100 RMB-denominated bonds listed on the LSE.

This is a development that has been actively supported by this government…

…because, as the RMB is used more and more as a currency of choice around the world…

…we want London to be the natural western partner for Hong Kong and China in supporting this development.

This is just one example of the growing links between our financial sectors.

This evening the Chief Executive and I witnessed a new and very exciting initiative…

…the landmark UK-Hong Kong FinTech Bridge…

…that will pool British and Hong Kong expertise to collaborate in the financial industry’s most innovative sectors…

…allowing our firms to access the capital, talent, accelerators, and start-up facilities needed to succeed in both the UK and in Hong Kong.

These developments will bring Britain and Hong Kong closer together and will promote jobs and prosperity in both.

But I also want to promote further the exchange of ideas, culture, and people.

We start from a very strong base.

I mentioned the thousands of our people who study, live and work in our respective societies.

Of course there is an economic benefit to that…

…the 22,000 students from Hong Kong in the UK contribute more than £540m to the British economy every year. But the benefit is broader than that.

And from the Royal Shakespeare Company’s tour of Hong Kong last year, to mark the 400th anniversary of Shakespeare’s death…

…to Sir Antony Gormley’s 31 life-size figures that recently graced Hong Kong’s skyline…

…or the University of Sunderland opening its first overseas campus in Hong Kong later this year…

…our shared interest in each other’s people and culture adds unique depth to our relationship.

And these things are important, because the relationship between Britain and Hong Kong has, and will always be, about more than just economics and trade.

It is about our shared view of the world, and our shared outlook on the challenges and opportunities ahead.

There are still some who view the rise of China, the growth of emerging markets, as a challenge to the West.

They see globalisation as a threat to job security, and even national security.

Britain has benefitted over the centuries from being a proud, open, free-trading nation.

We have benefitted in the last twenty years from our relationship with Hong Kong and from our openness to investment from countries like China…

…and our willingness to seize the potential of investment in countries like China.

And it is only by harnessing the markets that look to shape the world in the next twenty years that Britain can go on succeeding.

I am clear that we should view the rise of China, and the fast-growing economies in Asia, as an opportunity, not a threat.

If we seize it, then it means more, better jobs with higher living standards here in Britain.

If we shut ourselves off from the world, pull up the drawbridge, then we’ll miss out, and we’ll fall behind as a country and as an economy.

The people in this room understand that.

We must seize the opportunity;

Harness the potential;

And in this anniversary year…

… re-commit to deepen our ties in trade, in finance, in culture…

…and to work together to create jobs, and security for all of our citizens…

…in Britain, in Hong Kong, and around the world.

Thank you.

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• Science Minister Jo Johnson has today signed a UK-US Science and Technology Agreement
• First project under the agreement includes £65 million UK investment to increase our knowledge on the origin and structure of the universe

Science Minister Jo Johnson has today (Wednesday 20 September) signed a UK-US Science and Technology Agreement with US Acting Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs Judith G Garber, marking the first umbrella agreement between the United States and United Kingdom.

The treaty outlines a commitment to collaborate on world-class science and innovation, building on existing successful research co-operation in recognition of the value of open data to further scientific research and strengthen our economies.

The government has been clear in its commitment to collaborate with countries around the world in science, research and innovation and is investing record levels of funding to maintain the UK’s strengths in these key areas through its Industrial Strategy.

On signing the agreement, Science Minister, Jo Johnson said:

The UK is known as a nation of science and technical progress, with research and development being at the core of our Industrial Strategy. By working with our key allies, we are maintaining our position as a global leader in research for years to come.

Our continued collaboration with the US on science and innovation benefits both nations and this agreement will enable us to share our expertise to enhance our understanding of many important topics that have the potential to be world changing.

The first major project of the UK-US Science and Technology Agreement is UK investment in the Long Baseline Neutrino Facility (LBNF) and Deep Underground Neutrino Experiment (DUNE), for which the government has confirmed £65 million funding.

Under construction in the United States, the major international LBNF/DUNE project aims to answer some of the most important questions in science and advance our understanding of the origin and structure of the universe. One aspect of study is the behaviour of particles called neutrinos and their antimatter counterparts, antineutrinos. This could provide insight as to why we live in a matter-dominated universe and inform the debate on why the universe survived the Big Bang.

The UK is a major scientific contributor to the DUNE collaboration, with 14 UK universities and two Science and Technology Facilities Council laboratories providing essential expertise and components to the experiment and facility. This £65 million investment makes the UK the largest country investor in the project outside of the United States. UK involvement in the project will also provide opportunities for UK industry to build capability in new and developing technologies, for example, in precision engineering, cryogenics and accelerator-based applications.

Building on the UK-US partnership, the Arts and Humanities Research Council and the Smithsonian Institution are extending a successful history of partnerships by developing a new collaboration based at the Smithsonian’s National Museum of American History and focused on increasing the use of digital research skills in museums. Enhancing these skills will benefit areas such as data analysis, curating, accessibility of collections and also further audience engagement, all focused on achieving best practice in digital scholarship and the application of digital technologies at research led museums.

Accompanying Jo Johnson on the visit to the US, Chief Executive Designate at UK Research and Innovation, Sir Mark Walport said:

Research and innovation are global endeavours. Agreements like the one signed today by the United Kingdom and the United States set the framework for the great discoveries of the future, whether that be furthering our understanding of neutrinos or improving the accessibility of museum collections.

Agreements like this also send a clear signal that UK researchers are outward looking and ready to work with the best talent wherever that may be. UK Research and Innovation is looking forward to extending partnerships in science and innovation around the world.

The President of the United States and the Prime Minister agreed in January to deliver an ambitious agenda to strengthen UK-US cooperation. This agreement is an important step forward in fulfilling that ambition.

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More than 820,000 Swedes visited the UK last year, contributing £458 million to the economy. Swedes are drawn to coming to watch Premier League game, going to British pubs, visiting our world-class heritage sites and vibrant cities.

Visitors from Sweden account for the third biggest overseas market for going to a British football match, after Ireland and Norway, with 58,000 people coming to see a match in 2014.

The Culture Secretary met tourism leaders from Scandinavian Airlines, Swedavia, Visit Britain in Sweden and Apollo to see how government can help strengthen this offer for Swedish tourists and encourage more visitors to travel beyond London to see more of the UK.

She heard how the UK is the first choice for a majority of Swedes travelling outside Scandinavia and it is also where young Swedes leaving the country for the first time like to go – thanks to strong cultural bonds.

Speaking as part of a visit to the Nordic countries to promote trade, she championed the UK’s diverse culture, top-class sport and international events – the year-long UK City of Culture 2017 celebrations in Hull, the Great Exhibition of the North in Newcastle and Gateshead in 2018, and the UCI World Cycling Championships heading to Yorkshire in 2019.

She pointed to Liverpool, where next year China’s terracotta warriors will be seen in the UK for the first time in 25 years, Northumberland’s stunning beaches and Durham’s cathedral, the shopping options in Bicester as well as the outdoor pursuits on offer in stunning national parks in Wales and Scotland.

Culture Secretary Karen Bradley said:

Tourism from Sweden and the Nordic countries is hugely valuable to the UK and we want to make sure that more of our country benefits from this important market.

We welcome hundreds of thousands of Swedish visitors every year and we are committed to ensuring the UK continues to be a major draw for tourists from across Europe.

The meeting today was about building on our success to date, strengthening ties and seeing what more we can do to encourage more people from Sweden to come and experience the very best of Britain.

In the first three months of 2017, there were 169,000 visits to the UK from Sweden, up from 167,000 in 2016. Spend is on the increase too, in the first quarter of 2017 Swedes holidaying in the UK spent £86 million, up 12% on the same period in 2016. The Nordic market – Sweden, Norway and Denmark – made 2.3 million visits to the UK in 2016 and spent £1.24 billion. The first three months of 2017 saw record numbers of Nordic visitors to the UK, 518,000, up from 507,000 in the same period on 2016.

VisitBritain Nordics Manager Gary Robson said:

Britain has so much to offer holiday-makers from Sweden, from our cool cities and stunning national parks, to our world class shopping, heritage sites and our high-energy sports matches.

By promoting the sheer diversity of incredible experiences on offer, we want to inspire more visitors from Sweden and the Nordic market to book a trip right now to come and discover more of Britain.

Some 54% of Swedish tourists only visit London and the government wants to encourage a greater number to see more of what the whole of the country has to offer.

As part of the government’s Tourism Action Plan, launched in 2016, £40 million of investment is going into supporting tourism outside of London, investing in local businesses and attractions across the country to help attract more overseas and domestic visitors.

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The Minister spoke about the situation in Burma during a meeting hosted by Organisation of Islamic Countries (OIC) during the United Nations General Assembly (UNGA) in New York on Tuesday 19 September.

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The Queen has been pleased to approve the appointment of The Rt Hon the Lord Mance as Deputy President of the Supreme Court of the UK.

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