Attack's impacts on business likely to be short-term at worst

Manchester's commercial ties with China could experience a short-term adverse impact after Monday's terror attack, with the city possibly suffering temporarily from an image crisis and Chinese investors and tourists worrying about safety, but the long-term repercussions are likely to be limited, say local players from the business community.

News of the suicide bomber's attack on Monday evening at Manchester Arena, which killed 22 and injured 59, spread quickly in China. Some members of Manchester's Chinese community said they first heard about the attack from worried relatives, friends and business contacts in China.

"Short-term impacts could last for months," said Zhang Hongwei, president of the Manchester-based China-Britain Technology and Trade Association. "Chinese businesses looking to invest in Manchester may adopt a wait-and-see attitude and, short-term, tourist numbers could drop."

But Manchester's solid economic growth, abundant opportunities and business-friendly environment are likely to mean that Chinese investment into Manchester over the long term will not be affected by the attack, Zhang said.

His comments were echoed by Alan Wu, director of China Programs at Manchester Business School, who said the city's enhanced security in the aftermath of the attack should reassure those who are worried.

In recent years, Manchester has enjoyed flourishing business ties with China. Hainan Airlines now runs five flights a week between Beijing and Manchester. The airline has declined to comment on the incident.

Beijing Construction Engineering Group is participating in the funding and construction of the 800 million pound Manchester Airport City, a commercial development clustered around Manchester Airport. The company is using its China links to attract more Chinese companies to move into the development.

One possible impact from the attack could be upon the number of Chinese students choosing to study in the city, said Jessie Lu, UK recruitment manager with the education consultancy InterGreat Education Group, which has a subsidiary in Manchester.

"The attack has created a new label for Manchester for prospective students and their parents in China, meaning some students currently considering studying in Manchester may opt for alternative safer destinations, like Canada," said Lu, whose team has helped up to 200 students a year apply to Manchester universities.

Manchester currently has 6,000 Chinese students. So far, none of them are believed to have been caught up in the incident, said Li Chao, chairwoman of the Chinese Students and Scholars Association in Manchester.

Local Chinese consular officials said some Chinese students had been at the concert but no injuries had been reported.

Meanwhile, Manchester-based Chinese catering businesses have been operating as normal. Ge Yu, owner of the Southern River restaurant, said customer flows were unaffected. And Jay Liu, manager of drinks chain Happy Lemon, said a snarl up of traffic in central Manchester on the day after the bomb attack had mildly affected customer flows.