Twelve companies from the UK's world-leading motor sport industry will travel to China next month, with government backing, in pursuit of export business following the success of this month's inaugural Chinese Grand Prix in Shanghai.

"It is clear that the world's most populated country is set to embrace all manner of motor sport with open arms. The scope for UK motor sport companies in China is immense," the Motorsport Industry Association, the industry's trade body, said.

The success of the Chinese event is itself partly responsible for the ongoing negotiations over Formula One promoter Bernie Ecclestone's decision to drop the British Grand Prix at Silverstone from the 2005 calendar.

Some $300m (£169m) was spent creating the Shanghai circuit. The grand prix attracted a crowd of 150,000 and generated record television audiences.

With other domestic forms of motor sport growing fast and rounds of some European-based championships, such as touring cars, under negotiation for next year, China is becoming the prime target for the motor sport business sector, from sponsorship brokers to racing equipment manufacturers.

Business people in China are also understood to be interested in buying the Jaguar Racing F1 team, put up for sale by Ford last month.

With the success of Bahrain's first grand prix earlier this year, and with several other non-European countries clamouring to join the F1 "circus", Mr Ecclestone and FOM have nothing to fear financially from leaving Silverstone out of F1.

The MIA, whose 300 member companies form the core of the UK motor sport industry, has already led a trade mission to Bahrain, Dubai and other Gulf states in the aftermath of the Bahrain Grand Prix.

The Chinese trade mission is the latest of a series of MIA initiatives to broaden the motor sport industry's earnings base. Other trade missions have already gone to Japan and South America, and MIA representatives have met with Nasa, the US space agency, to discuss developments in the advanced materials in which both top-level motor racing concerns and the aerospace industry specialise.

Chris Aylett, MIA chief executive, and board members are evaluating benefits to the industry arising from its first-ever collective presence at this year's Farnborough Air Show.

In another coup for the UK industry, Huntingdon-based Lola International is to manufacture and supply the entire grid of single-seater racing cars for Dubai's A1 Grand Prix championship, due to start next year.

The creation of Sheikh Maktoum Hasher Maktoum, a member of the Dubai royal family, the championship is being marketed as the "World Cup" of motor sport, with up to 30 nations competing, each allowed one car with a national driver.

Despite the championship's title, "there is absolutely no intention that this should be regarded as any kind of rival to Formula One - it is complementary", Sheikh Maktoum told the Financial Times.

The championship, which has received approval from the Fédération Internationale de l'Automobile, will be held over the European winter - in F1's closed season - in the Gulf states and in other warm weather regions, such as South Africa and South America.