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INCREASE IN CHINESE AND INDIAN DIRECTORS AUGURS WELL FOR EXPORT GROWTH


27th March 2007


Figures released by credit information agency Graydon UK have revealed a significant increase in the number of Chinese and Indian nationals registered as directors of UK companies at Companies House.


Chinese nationals numbered just 431 in 2000 and were 24th in the league table of foreign directors that year, but their position has improved to 11th in 2006 when 2,694 Chinese nationals were recorded as directors of UK corporations.


Indian nationals were lying in 8th place back in 2000 with 1,512 directors. Since then, they have moved up into 4th place in the foreign list, with 4,334 directors - just ahead of the French for the first time.


Interestingly, the UK is the fourth biggest exporter to India and 14th largest to China , each country being responsible for importing around 1% of the UK ’s total exports.


Many political and business commentators have questioned whether the UK should be doing more to build trade to these fast growing nations. It's notable that Germany trebled its exports to China between 1999 and 2003 and the USA doubled its sales during the same period, while the UK grew its sales by only 66%.


However, says Martin Williams, Graydon’s Managing Director, the build up of Chinese and Indian directors on UK company boards augurs well for our export business in the coming years.  “Traditionally, foreign nationals on UK boards take up their positions here because of their knowledge and understanding of their home markets.  Yes, some undoubtedly are more involved in the import of goods, but many more are helping to break down the barriers that have prevented export sales to India and China in the past."  He adds, “Fears held by British businessmen of such things as tortuous local regulations, language and customs in markets like China are, quite naturally, non existent in the minds of their own nationals.”