The two sides can also cooperate in third-country markets in the innovation area. The UK has strengths as a location for research and development and scientific discovery, but its main challenge is how to exploit innovative ideas and develop new products. In contrast, Chinese firms are known for building on these ideas.

Although the Chinese and British governments have expressed a willingness to foster increased cooperation, such efforts in third-country markets have not yielded many substantial results so far.

The main challenge for companies on both sides is to identify opportunities, build trust and develop relationships with compatible business partners in each other's country.

Although many Chinese companies want to collaborate with foreign companies, most of them do not know how to go about finding an international partner, especially from the UK.

A more focused approach to business support is needed to bridge gaps in perceptions, expectations, business processes and business models between the UK and China.