THE UK COURTS CHINA
As China’s President, Xi Jinping, lands in the UK today (19 October), he’ll be looking to strengthen economic ties through international investment.
It is likely that China will invest in nuclear power, oil, rail travel and infrastructure, following efforts from the UK’s Conservative party to boost investment in these areas and to build stronger economic ties between the two nations.
Xi will attend the UK-China business summit at Mansion House on 21 October, where the focus will be on investment, infrastructure and innovation. Last month, Chancellor George Osborne visited China and offered opportunities worth up to around £24bn to Chinese investors. The Chinese President is expected to announce investment in the London to Manchester High Speed 2 railway project and the Hinkley Point nuclear power station in Somerset.
The President’s visit comes at an unfortunate time as reports reveal that China’s economic growth has slowed to a six-year low. Meanwhile, Chinese telecoms company, Huawei, is expected to announce an investment in Manchester University's graphene research institute this week. A strategic alliance between BP and state-owned China National Petroleum Corporation is also likely.
It is thought that the UK’s courtship of China could affect its relationships with the US and Japan, who both have strained relationships with China. Ahead of Xi’s visit, China's ambassador to the UK, Liu Xiamong, says, "The UK has stated that it will be the Western country that is most open to China. This is a visionary and strategic choice that fully meets Britain's own long-term interest."