Britain is missing out on trade opportunities with countries which will be home to two-third’s of the world middle class by the end of the decade, a major report warns. The Asia Pacific region – not including China – will see £7trillion of new wealth created in the next five years, according to MPs on the business and trade committee.

Britain is “punching below its weight”, the cross-party group warns. They warn the UK’s share of exports to the region has “been stuck at around 12% since the 1990s”.

Chairman Liam Byrne said: “There are moments in history when the tectonic plates of power begin to shift. This is one of them.”

He described the challenge of breaking into this market as a “test of whether Britain has the courage and clarity to compete in a new economic age, or whether we allow the future to be written without us”. The MPs have made a raft of recommendations including deepening ties with the UK’s defence industry and universities.

Their call comes as trade minister Douglas Alexander visits Taiwan for talks on boosting business with the state. Bilateral trade was worth £9.3billion last year.

Mr Alexander said: “We share a long-standing trade relationship with Taiwan and our trade reached an all-time high last year, but we know there are still more opportunities for British businesses to take advantage of opportunities in this dynamic economy.”

He will meet Taiwan’s President Lai. The meeting comes as international concern mounts about potential threats to Taiwanese sovereignty from China, which claims the territory.

Business and Trade chairman Mr Byrne pushed for deeper links across the Asia Pacific region, saying: “We are trusted. We are respected.

“And we are needed. But goodwill alone will not secure our place in the Asian century.”

Warning the window of opportunity “will not stay open”, he added: “If we fail to act, others will fill the vacuum.

“If we rise to the challenge, Britain can be the partner of choice in a fast-changing world. Now is the moment.

“Not for retreat. Not for delay. But for resolve.

“Because in the contest for the future, Britain must not be a spectator. We must be a champion.”

A spokesman for the Department for Business and Trade said: “The recommendations align with our newly launched industrial and trade strategies which will help boost growth for British businesses and put more money in the pockets of working people as part of our plan for change.”