Letter to my MP no 12

Dear Mike Amesbury Labour Member of Parliament for Weaver Vale

Shadow Housing & Planning Minister

Global Value Chains in Halton.

What company in Halton have a reliance on a GVC for their activities and future survival? The COVID-19 pandemic has revealed new risks to globalisation: without the timely arrival of intermediate goods for the next step of production in a different country, global value chains can grind to a halt. More than 50,000 companies globally have one or more tier-one suppliers in Wuhan, while about five million companies have one or more tier-two suppliers in the region. Europe, Japan and others have voiced concerns about China’s strategic and geopolitical intentions, especially regarding state-sponsored acquisitions of key technology firms.

Are any Chinese investments in any Halton company or companies. Are any Chinese companies active in Halton?

Yours sincerely, James Owen

 Dear Mr Owen,

Many thanks for contacting me in relation to your concerns surrounding global value chains in light of the pandemic and the specific issue of Chinese investment into Halton. In answering your second question, I am not aware of any significant investment in either Runcorn or Widnes by Chinese investors or firms closely associated with such outfits. A large proportion of foreign investment into Halton has traditionally come from EU sources. Obviously in light of Brexit, there have been some fluctuations in FDI but I know from speaking to firms across the constituency that European cooperation is still very much at the forefront of their plans. I agree with you that pandemic has shown how vulnerable our global supply chains. This concern has only been exacerbated further in recent weeks over allegations of forced labour in the Xinjiang Autonomous Region. We have already seen large multinational firms moving some of the operations out of China into places like Vietnam or Thailand, but I suspect this decision was carried out purely by economic concerns rather than any moral argument. Further diversification of supply chains is needed and the way to achieve this is by working with our international partners to ensure that the issue of international trades at the forefront of any discussions having been subsided by the Trump administration.

Yours sincerely,

Mike Amesbury Labour Member of Parliament for Weaver Vale

Shadow Housing & Planning Minister