Chinese Visit To Bring In Deals Worth £17bn

Written By Unknown on Selasa, 17 Juni 2014 | 11.46

By Mark Stone, China Correspondent, in Beijing

A raft of commercial deals between the UK and China totalling more than £17bn will be agreed later in the first visit to Britain by a Chinese leader for over three years.

China's Premier Li Keqiang is accompanied by a delegation of more than 150 business leaders and top level Communist Party officials.

He is holding talks with David Cameron at a UK-China summit and a news conference will provide a rare opportunity to question the Chinese leadership.

Mr Li will also be given a guard of  honour and have an audience with the Queen at Windsor Castle in a move which has angered critics of China's record on Human Rights and political freedoms.

Campaign group Free Tibet has written to Buckingham Palace requesting the meeting with the Queen is cancelled.

Britain's Deputy Prime Minister used unusually direct language and risky timing to describe China's people as being "politically shackled to a doctrine which is a one party state, a communist state".

"Of course we can't agree on large scale and systematic human rights abuses which still continue in China to this day: the many journalists who are persecuted. The very widespread use of the death penalty," Nick Clegg said at his weekly press conference yesterday.

Mr Clegg added that despite these concerns, he hoped to have "very productive discussions" with the Chinese leadership.

The commercial deals, which Sky News understands have been under negotiation right up until the last minute, should cover trade and investment across a variety of sectors including energy, transport, finance, health and education.

China's sovereign wealth funds could help to finance major British infrastructure projects including the HS2 high speed rail link and the next generation of nuclear power stations. China is understood to be putting its largest share of European investment into the UK. 

Britain's two biggest oil companies, BP and Shell, will unveil multi-billion pound deals, and an arm of the World Bank is to list the first 'green bond' denominated in China's currency in London.

Britain has also announced a new streamlined visa service for Chinese travellers.

The UK is not part of the visa agreement which allow overseas visitors to travel to twenty six countries in Europe which means that 90% of Chinese tour operators say they leave the UK off their itinerary every year.

The visa application process will now be simplified, allowing tourists to apply using the same form as other European countries. Chinese visitors will also be able to use an Irish visa to travel to the UK. 

China's growing middle class and the rebalancing of its economy from export to domestic consumption also presents Britain with huge opportunities.

British fashion giant Burberry opened its largest Asian store in Shanghai in April. The company's China strategy has helped boost global revenues.

In the automotive sector, Jaguar Land Rover has seen staggering success across China with 130 dealerships in 90 cities. The company is now Indian-owned but the cars are made in the UK.

"The thesis now is that the UK is entering a sweet spot. Chinese consumers increasingly recognise the UKs value as a brand," said Duncan Clark, an investment advisor with 20 years' experience in China.

"They are buying luxury goods, they're buying higher quality services as well including education and training - areas that the UK excels in."


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