Trump presidency could divert $33 billion in Chinese investment to UK, claims VC firm

British venture capital firm Fuel Ventures expects a new wave of Chinese investment to head to the UK – potentially as much as $33 billion – if Donald Trump’s second presidency leads to a sharp decline in Chinese financing of the United States.

The company’s forecast comes in the wake of a sharp decline in Chinese investments during Trump’s first term, when flows to America fell by more than 80 percent over two years.

The UK’s dynamic technology sector and strong innovation record make it a prime destination for displaced Chinese capital, says Mark Pearson, founder of Fuel Ventures. “We expect around $33 billion to be taken from Chinese companies in the coming years, with only the UK benefiting,” Pearson explains, adding that interest has already risen as major Chinese investors reassess their exposure to the US.

Statistical figures show that Chinese investment in the United States fell by 36% when Trump took office, then fell by another 83% the following year. Fuel Ventures predicts that if these patterns repeat, Chinese flows could decline from $28 billion in 2023 to just $10 billion in Trump’s first year back in office in 2025, before falling to $3 billion after that.

Chinese investors’ long-standing preference for UK education – fueled by leading universities and secondary schools – increases the UK’s appeal, according to Jingjing Xu, managing director at Fuel Ventures Asia. “Along with education, the UK’s lifestyle and cultural ties with Europe make it a reliable and sophisticated gateway to Western markets,” she says.

It also notes that close ties with Chinese officials – as evidenced by a recent meeting with the deputy mayor of Beijing – indicate enhanced opportunities for cooperation. “We are working to forge deeper relationships with both the mayor and the Chinese government, highlighting the UK’s potential to deliver advanced technology and long-term growth,” adds Xu.

As the geopolitical landscape evolves, UK tech leaders hope these developments will position Britain as an increasingly attractive destination for international investors looking for a diversified portfolio away from the US.