UK-China discuss the next step for economic and trade relations

10 Nov 2016 09:33 AM

Billions of pounds of projects will be showcased to the delegation, while talks will focus on building on the UK-China trade relationship.

The Chancellor will host talks today (10 November 2016) with Chinese Vice Premier Ma Kai, aimed at intensifying the UK’s trading relationship with China and showcasing Britain as one of the best places in the world to do business.

The eighth UK-China Economic and Financial Dialogue (EFD) involves a series of events over a two-day period, including discussions on trade, financial services, infrastructure and energy.

The Vice Premier will meet Prime Minister Theresa May and Bank of England Governor Mark Carney, and the dialogue will focus on forging a stronger strategic partnership between the UK and China – the world’s second largest economy.

The EFD brings the most senior Chinese delegation to Britain this year.

Prime Minister Theresa May said:

I’m determined that as we leave the European Union, we build a truly global Britain that is open for business. That is the message I took to India this week, and that’s the message I will be giving Vice Premier Ma Kai on his visit to the UK.

As we take the next step in this golden era of relations between the UK and China, I am excited about the opportunities for expanding trade and investment between our two countries.

The Chancellor of the Exchequer, Philip Hammond said:

The golden era in UK China relations continue to deepen. With our complementary bilateral trade ties, China and the UK remain natural partners and building on this relationship will form the cornerstone of this year’s dialogue.

The mutual benefits are clear. China is the world’s second largest economy; UK exports to China have grown rapidly and Britain is home to more Chinese investment than any other European country. With a strong focus on infrastructure investment, trade and financial services, I look forward to constructive talks with the Vice Premier and his delegation.

Ministers will also showcase how Britain is open for business with a series of announcements on infrastructure which include:

• the unveiling of a Northern Powerhouse Investment Portfolio which details 13 large-scale property and infrastructure development projects, each worth more than £100 million, offering attractive investment opportunities across the North to Chinese investors. Projects include investment to help double the size of MediaCityUK in Salford (home to the BBC, ITV and more than more than 250 smaller creative and digital businesses); an opportunity to invest in a major regeneration project in Doncaster that will create 3,100 homes and 6,000 new jobs and a chance to invest in a Sheffield project to create a centre of innovation and over 4,000 new homes.

• news that CITIC and Chinese Developer ABP will together invest £320 million in Phase 1 of the £1.7 billion London Royal Albert Docks project. CITIC Construction will also establish its UK HQ at Royal Albert Dock. When complete, the project is expected to create 30,000 jobs and become a commercial hub of a comparable scale to the City of London and Canary Wharf.

• up to £40 million of investment by the UK government in the Asian Infrastructure Investment Bank (AIIB) based in Beijing, for a fund to help developing countries to prepare infrastructure programmes. The UK is only the second contributor to the fund after China, which aims to accelerate much-needed development in the poorest Asian countries, and cements Britain’s reputation as China’s key partner in developing the AIIB.

• as part of the UK-China Infrastructure Alliance, a private sector UK Infrastructure Academy is being launched to help train Chinese companies and officials on investment processes in the UK. The first high-level Chinese delegation will arrive in the UK for training in coming months. This follows training on Public Private Partnerships already delivered by the Infrastructure and Projects Authority in China, which is supporting China in delivering high-quality projects.

There will also be a series of high profile announcements regarding financial services.