Issues
such as Hong Kong and alleged human rights abuses against Uighur Muslims had
already strained relations between the two nations and tensions were escalated
by the UK government’s decision to ban Huawei from the rollout of 5G in the UK.
The situation has been further complicated by the mixed messages
the government has sent out over TikTok. Last month, parent company ByteDance
reportedly halted talks with the UK government to move TikTok’s global HQ to
London amid heightened tensions between the countries.
New York and California were tipped as its favourite options,
but with Trump now threatening to ban TikTok, the group is understood to be
reconsidering an HQ move outside the US – with London once again back on the
table. A Property Week poll
found that respondents were split on whether the move was likely to happen,
with 45% saying it was likely or very likely, and 44% saying it was unlikely to
happen.
Experts said that Chinese investors no longer knew what the
rules of engagement were in the UK. “It’s a diplomatic tightrope, both for the
governments and corporates wanting to be based here,” said Shaun Dawson, head
of insights at DeVono Cresa. “You don’t want to commit to something if the
rules and regulations start to change and you’re wasting thousands of pounds on
an office in a country that doesn’t necessarily welcome you.”
The chairman of ABP, the Chinese developer behind the £1.7bn Royal Albert Dock
scheme in east London, said he hoped political tension between China
and the West would be a “short-term phenomenon”.
“We as business people are hoping for better relationships so
that the environment for business exchange and investment can be more
welcoming,” Xu Weiping told Property
Week.
However, one senior central London office agent said that
inevitably some Chinese companies would rethink their UK presence: “I don’t see
the banks going anywhere, but with tech and media occupiers, who knows? They
are creating headlines that put scrutiny on almost every single Chinese firm,
which is unfortunate for the ones trying to operate here.”