Written by Mark Pearson
Following the US Presidential Election, Fuel Ventures, a leading UK-based venture capital firm, has shared predictions on its impact on the UK market and foreign investment, stating that the UK will benefit from Trump’s presidency, as a possible $33 billion lost in the first two years of Trump’s presidency could be diverted to the UK.
Looking at previous Chinese investment in the US, according to Statistica, when Trump first took office, Chinese investment dropped by around 36% then subsequently the following year investment decreased by around 83%.
Calculations from Fuel Ventures has projected that if investment trends follow a similar pattern to Trump’s first presidency, Chinese investment in the US could drop sharply from the $28 billion in 2023* to $10 billion in the first year of his presidency in 2025, with a further decline to $3 billion thereafter.
Mark Pearson, Founder of Fuel Ventures, comments: "Trump's re-election means Chinese investors are looking elsewhere for investment outside of the US market. We predict around $33 billion is up for grabs from Chinese companies in the coming years, and the UK only stands to benefit from this, as a hotbed for tech talent and innovation. Although Fuel Ventures and Fuel Ventures Asia already have a large pool of Chinese investors, since Trump’s re-election we’ve seen growing interest as major investors look to redirect their money this side of the pond.”
Jing Jing Xu, Managing Director at Fuel Ventures Asia, says: "The UK is becoming an increasingly attractive destination for Chinese investors. The quality of UK technology and innovation stands out globally, offering more consistent growth opportunities compared to other markets.
“Education has always been a priority for Chinese investors, and the UK boasts some of the world's leading universities and secondary schools. This is evident in the 80% rise in Chinese students studying in the UK over the past decade**.
"Beyond education, the UK lifestyle and cultural ties to Europe further enhance its appeal. For Chinese investors, the UK represents a bridge to Western markets that offers reliability, sophistication, and long-term potential.
"Following our recent meeting with the Deputy Mayor of Beijing, who expressed a strong desire to bring more advanced technology into China, we are pleased to have successfully forged a relationship with both the Mayor and the Chinese government, further solidifying collaboration opportunities through our latest round of investments.”
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