Read the Chinese translation of this story here. 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. READ MORE: China praises Britain’s George Osborne for silence on human rights during Xinjiang visit "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 ". Developed economies like the UK were ideal for Chinese investment given the high rates of return and low risk, said Ding Chun, a European affairs expert at Fudan University. London's under-investment in infrastructure had posed "huge transport and energy risks" for the country, with more than a fifth of its electricity capacity set to be decommissioned over the next decade, a 2014 report by the UK-based Centre for Economics and Business Research said. But local concern groups, such as Stop HS2, oppose the project on business, environmental, economic and employment grounds. Nevertheless, Cameron and the royal family have rolled out what British media described as the "reddest red carpet" for Xi. 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 Xi and first lady Peng Liyuan will stay at Buckingham Palace and address parliament. The thorny issues of Tibet and Hong Kong will be downplayed during the visit, Summers said. Beijing gave Cameron the cold shoulder after he met the Dalai Lama in 2012, suspending the bilateral human rights dialogue. Cameron refused to meet the Tibetan spiritual leader in exile in September. Osborne took a trade delegation to Xinjiang , despite criticism from rights groups on Beijing's religious persecution in the region.