For the fourth instalment of our import/export series, we'll be looking at the benefits of exporting to the UK from China, as well as providing helpful information for those interested in starting international trade with Great Britain in 2023. 

In case you missed them, we've already covered some of the other regions in the big leagues of overseas trading. Check out our guides on the USA, Germany and the Middle East.

With the second-largest economy in the world and holding first place for exports, China is undoubtedly a major character on the global stage. Most of the world's top shipping containers are located in Asia. The Port of Shanghai held the title of "world's busiest port" for 12 years, in fact!

So, why should this trading behemoth be excited by the possibilities that the UK market has to offer? The answer is simple – this country may be small in size, but it has the fifth-largest economy in the world with a GDP value of $3.19 trillion. For those interested in valuable trading partners, the UK is a great opportunity. 

The UK and Brexit

First, let's address the elephant in the room. While confusion still remains in the wake of Brexit, the UK government has made trade border effectiveness a primary focus, making several key pledges in its document, The Benefits of Brexit, which bode well for tentative traders: 

• Investing £180 million in the creation of a single digital gateway through which traders can complete all border processes, radically streamlining the processes of importing and exporting.

• Investing over £1 billion over the next three years in transforming border technology and operations

• Running pilots at UK ports in 2022 to test technologies across industries that may deliver end-to-end frictionless trade in partnership with government, the aim being to greatly reduce costs for businesses across supply chains.

• Launching the Developing Countries Trading Scheme (DCTS). This applies to 70 qualifying countries currently and includes improvements such as lower tariffs and simpler rules of origin requirements for countries exporting to the UK.

China isn't included in the DCTS, unfortunately. However, the message is clear – the UK wants to trade with the world. And – having left the EU – there are plenty of opportunities to take advantage of, which make trading with this country an appealing prospect. 

For China, one of the biggest benefits to come from the UK leaving the EU is that the country enacted the Trade and Cooperation Agreement (TCA), affording it the freedom to independently control its trade and change how the UK interacts with trading partners.

The British Embassy in Beijing reported that as a result of enacting the UK Global Tariff regime (UKGT), over 3,500 products have seen tariffs cancelled, reduced or simplified. As a result, market access has been enhanced, encouraging further growth in UK-China trade. 

Trade and investment between China and Great Britain 

This is where the numbers get really exciting. The UK Department for International Trade published some promising statistics in February 2023, concerning the trade and investment state of play between China and GB. 

Total UK imports from China amounted to a whopping £71.8 billion, in current prices, in the four quarters to the end of Q3 2022 (an increase of 6.1% year-on-year). These lofty figures make China the UK's third-largest trading partner – and the UK-China relationship is particularly strong in regard to the import of goods. A massive £68.9 billion came from goods as opposed to services, showing the strength of the market opportunity. 

What's required to export to the UK from China? 

At the time of writing, the UK only has trade restrictions with China that involve transit control and a partial arms embargo, meaning certain military items are restricted, require a license or cannot be moved through the UK to be re-exported elsewhere.

Regulation-wise, the requirements are pretty standard: ensure you have EORI numbers and commodity codes and are compliant with UK safety legislation, such as the UKCA mark.

Here's a quick overview of what these terms mean: 

• EORI stands for "Economic Operators' Registration and Identification". This number becomes a reference point for dealings with the customs authority. To apply for this number, visit the UK Government website and fill in the application.

• Commodity codes are internationally recognised reference numbers, which describe the specific product that's being imported or exported – for example, ceramics, footwear or bicycles. This helps to ensure you pay the correct amount of customs duty, VAT and taxes when exporting to the UK. Use the government's helpful tariff tool to find suitable commodity codes. The GOV.UK site can also help you understand whether you need a license for the goods and whether the goods are covered by a trade agreement (meaning you could pay less customs duty). 

• Safety and security requirements apply to goods entering and exiting the UK. Government guidance can be found here.

• UK Conformity Assessed (UKCA) marks have replaced the EU's CE markings and serve as a benchmark of quality that is mandatory for the country. The deadline post-Brexit has been extended, meaning you can continue to use the CE marking and reversed epsilon marking on the GB market until 31 December 2024. After that, however, CE-marked products will no longer be able to be imported into the UK without a UKCA mark. Find out if you need to use the UKCA marking on products you manufacture or handle here. 

UK and China: the future is bright 

China has a long-standing and very lucrative trade relationship with the United Kingdom, and the demand for Chinese products in the UK is high. There's plenty to go after and – with an already established market here – new exporters can be confident they're not going to have to carve their own path to success.

The coming years post-Brexit will be a pivotal time for British business and industry, where new global markets and opportunities will be explored on a scale never before. For those looking to get ahead, events such as The China Britain Trade Expo (which will take place in October 2023) are a great place to discuss new trade and export opportunities, forge new deals and partnerships and meet with government representatives. 

As an experienced online fulfilment centre, Stowsafe Fulfilment is the perfect partner to assist businesses wanting to expand into the UK market. Learn more about our UK network and best-in-class storage facilities today.