Chinese President Xi Jinping to pledge multi-billion pound investments during state visit to UK to foster Sino-British ties
Rail and nuclear power deals and the launch of yuan debt in London are expected
President Xi Jinping will announce multibillion-pound investments on his first state visit to the UK next week to gild Sino-British ties once strained over the Dalai Lama.
The two countries are expected to seal deals on nuclear and railway projects and announce the launch of sovereign debt in yuan in London during Xi's five-day trip to mark what British Prime Minister David Cameron described as the "golden year" of bilateral relations.
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"China and the UK should take high-speed rail and nuclear power plant projects as starting points to promote bilateral investment," assistant commerce minister Zhang Ji said.
To woo Chinese investment, British Chancellor George Osborne announced the opening of bidding for the £11.8 billion (HK$140 billion) High Speed Two (HS2) rail link contracts when he visited China last month, though the project has yet to get the final approval of parliament.
He also promised £2 billion in initial support for the Hinkley Point, a £16 billion nuclear power project in southwest England that two Chinese state-owned enterprises, China General Nuclear and China National Nuclear Corporation, are interested in financing. Beijing is seeking overseas markets to export its excess production capacity and maintain economic growth, while London embraces potential foreign investment, observers said.
Tim Summers, senior consulting fellow at Chatham House, said China's motive for investing in the UK was "not primarily about keeping good bilateral relations, but about developing the overseas business and capabilities of Chinese companies ".