The new phenomenon of Indian and Chinese corporate giants buying into global companies and the rise of Asia should not worry the British industries which should be 'aggressive advocates' of free trade and an inclusive globalisation, Prime Minister Gordon Brown has said.

In a speech to the Institute of Directors, a London-based group of business heads, Brown said that protectionist 'sentiments are growing' not only because of the current credit crunch and rises in fuel and food prices, but also due to the longer term challenge posed by the rise of Asia, particularly India and China.

"Some of our biggest corporations -- IBM, Corus, Jaguar and Land Rover -- are now partially Asian or Arab owned, with Indian and Chinese sovereign wealth funds also buying into global companies," he said.

"And increasingly China and India are not competing simply on low pay as if it were a race to the bottom. With five million graduates a year, far more engineers being produced, far more computer scientists, they are competing on high skills too, in a race to the top."

"Up to one million manufacturing jobs moving from Europe and America to Asia each year, one quarter of a million services jobs. With more to come," he said.

However, he told the captains of the British industry that rising Asia presented 'huge opportunities' to the world economy, which was projected to double in size in just over 20 years, with over a billion new professional or skilled jobs and the global middle class growing twice as fast as the rest of the population.

"China and India will become countries that don't just sell to us but buy from us -- as the 3rd and 5th largest consumer markets in the world," Brown said while urging the British industries to be aggressive advocates of free trade.

It is understandable that in America and Europe worries exist, and the dominant response is not to welcome new competitors but to see people in fear of their jobs and livelihoods," Brown said.

And as a result, he said, protectionist sentiments are growing. "We see the danger of increasing demands for heavy-handed regulation; We see pressure for regulating hedge funds and sovereign wealth funds in almost every capital."

"... we have to be aggressive advocates together of free trade, openness, flexibility and an inclusive globalisation. We should start -- businesses and governments together -- by showing people that the rise of Asia -- and the wider changes brought by globalisation -- need not be a zero sum game," Brown said.

The British prime minister also asked Europe and the US to keep their trading borders open despite the twin pressures of an economic downturn and uncertainties.

Brown also called for countries to lower their trade barriers and remove agricultural subsidies that unfairly impact on poor countries.

The global benefits of free trade could be as much as $300 billion by 2015 -- equivalent to 0.6 per cent of global income, he said as efforts are on to resume WTO trade talks.

"But if we do not get a trade deal within the next  few weeks there will not be a trade deal for years," he warned.

Brown assured help to British industries in overcoming the current turbulent conditions faced by them. For this, Britain is pressing the G7 to implement the recommendations of the financial stability forum, including clearer standards for valuation and changes in the role and use of credit ratings.

"But the pressures facing us today are more than just the short term, credit crunch and short-term rises in fuel and food prices. This is a testing time for all of us who believe in an open and flexible globalisation," he said.

"So to succeed in the new global economy Britain must -- and will -- continue to focus on openness and on improving flexibility," he said.