Trump presidency could divert $33 billion from Chinese investment in UK, says VC firm
Britain’s Fuel Ventures predicts that a new wave of Chinese investment may head to the UK – potentially reaching $33 billion – if the second presidency of Donald Trump causes a significant drop in Chinese investment in the United States.
The company’s projections follow a sharp decline in Chinese investment during Trump’s first term, when flows to America fell by more than 80 percent over two years.
Mark Pearson, founder of Fuel Ventures, says the UK’s technology sector and strong record of innovation make it a prime location for China’s displaced capital. “We predict that around $33 billion will be taken from Chinese companies in the coming years, and the UK will only benefit,” explained Pearson, adding that interest had already risen as major Chinese investors reassessed their exposure to the US.
Statistics show that Chinese investment in the United States dropped 36 percent when Trump took office and dropped 83 percent the following year. Fuel Ventures projects that if these patterns repeat, Chinese inflows could drop from $28 billion in 2023 to $10 billion in Trump’s first year in office in 2025, before falling to $3 billion after of that.
Chinese investors’ long-held interest in UK education—fueled by top universities and high schools—is also increasing the UK’s attractiveness, according to Jing Jing Xu, managing director at Fuel Ventures Asia. “Apart from education, the UK’s lifestyle and cultural ties to Europe make it a reliable, sophisticated gateway to Western markets,” he said.
He also notes that the close relationship with Chinese officials—evidenced by a recent meeting with the vice mayor of Beijing—is a sign of improved cooperation opportunities. “We are building a deep relationship with the city and the Chinese government, highlighting the UK’s ability to deliver cutting-edge technology and long-term growth,” added Xu.
As the geopolitical landscape changes, UK tech leaders hope these developments can position Britain as an increasingly attractive destination for international investors looking for a diversified portfolio away from the US.
