China Powers United Kingdom Economy In $41billion Investment Windfall-At least $41Million will be floated into United Kingdom economy as China and Britain strengthen diplomatic and economic ties in a major landmark entanglement.
The deals are being struck as Britain hosts Chinese President Xi Jinping currently paying a state visit to the Queen’s land.
The new relationship carries a gold lined trimmings as major economic and business ties are to be sealed as the close ties giving birth to about $46 Billion in business deals and economic agreement will further tighten the two nations’ other pacts.
Britain rolled off the red carpets to welcome the Chinese leader on Tuesday as bothe countries hailed the “brighter future” of a closer ties, welcoming the Chinese leader with a 41-gun salute before he riding to Buckingham Palace in a gilded horse-carriage with Queen Elizabeth. At a state banquet, the queen called his visit a “defining moment in this very special year” for a relationship which should reach “ambitious new heights”.
Both Xi Jinping and Prime Minister David Cameron are expected to agree to a number of business deals. It has been revealed that the Chinese leader will put the seal later on its contribution to what will be the first UK nuclear power plant to be built in a generation.
The plant could be opened by 2025 at Hinkley Point, in Somerset, with China likely to cover about 30% of the cost.
President Xi Jinping will meet Prime Minister David Cameron later, on the second day for other business mutual agreements.
At least, £30bn worth of deals between the UK and China are expected to be struck during the four-day visit.
The plant will be built by French energy firm EDF, in conjunction with a consortium led by Chinese state-owned nuclear company CGN.
Two other nuclear power stations, at Sizewell in Suffolk, and Bradwell in Essex, could follow as part of the deal with China. The plant at Bradwell would be Chinese-designed, providing China with its first Western showcase for its nuclear technology.
The money will be secured as Britain welcomes Chinese President Xi Jinping for a state visit, the first from China in a decade.
The cash generated by new deals will help to create 3,900 jobs across the UK, according to 10 Downing Street.
“This is going to be a very important moment for British-Chinese relations. Trade and investment between our two nations is growing and our people-to-people links are strong,” Mr Cameron said.
Kamel Mellahi, a professor of management at Warwick Business School, said that China’s partnership with the UK looks like a “win-win economic alliance”.
While the UK will receive infrastructure investment and could become a centre for trading China’s currency, China can use its efforts in the UK as “shop windows” to promote it capabilities to other potential trading partners.
China to invest £30bn in UK plc: how the deals break down
Here is the breakdown on some of the many deals already won for UK plc. as collated by Peter Spence, The Telegraph Economics Correspondent
£5.4bn to £8.2bn investment in nuclear power
A Chinese company is set to take a 33.5pc stake in the first nuclear power plant to be built in the UK for a generation.
President Xi and Mr Cameron are due to attend a UK-China business summit on Wednesday at Mansion House, with an agreement coming two years to the day since EDF and the UK government’s heads of terms subsidy deal.
The Hinkley Point project, run by French energy giant EDF, has sealed an agreement with China’s state-owned CGN. The Somerset-based power plant is expected to go online in 2025.
£2bn worth of electric buses
Falkirk-based Alex Dennis Limited (ADL) and China’s BYD have agreed a deal to manufacture 200 single-deck buses, which could generate £660m in revenues over the next decade.
A hybrid powered Alexander Dennis bus
The deal could be extended to include double-decker buses, taking the total close to £2bn.
Wang Chuan-fu, founding chairman of BYD, said: “Working with top industry partners such as ADL will enable us to speed up acceptance of our vision for fully-electrified public transport systems.”
The tie-up could support 2,500 ADL jobs, and a further 1,500 around the world.
£200m for new TV training programme
Chinese cash will support media training at the University of York.
David Cameron said that the University of York collaboration was evidence of the Conservatives’ “long-term economic plan” in action
An investment from China Capital Investment Group will see the university take on 300 additional students a year from China.
Mr Cameron said that it was a “huge achievement” for the university.
£100m invested in British theme park London Paramount
A Kent-based theme park has received £100m in backing from Chinese infrastructure and construction group SinoFortune.
The funding will go towards building the £3.2bn London Paramount Entertainment Resort, which is expected to open for business in 2021.
“This shows that our vision for London Paramount and its location in north Kent with excellent transport links to London, Europe and the rest of the world, is appealing to investors, residents and tourists alike,” said David Testa, chief executive of the park project.
£50m injection for Aston Martin sports cars
The emissionless RapidE sports car will benefit from a £50m deal between Aston Martin and China Equity.
Development on the electric vehicle is expected to be complete by 2017.
£50m win for London Taxis
The London Taxi Company’s Chinese owner has announced that it will invest £50m into a fleet of zero-emission-capable cabs.
Zhejiang Geely has owned the London Taxi brand since 2012
Zhejiang Geely’s money will also go towards research.
£25m to get Chinese TV to an international audience
Future TV and Scotland’s Distrify have teamed up to distribute Chinese content outside of the country.
Chinese viewers will be able to watch TV drama Poldark Photo: BBC
In a separate detal, ITVS Global Entertainment has agreed a multi-year deal to grant Chinese audiences accesses to TV drama Poldark.
Cash for cutting edge Graphene
China’s Huawei will put “millions of pounds” into the University of Manchester’s National Graphene Institute, according to Sky News.
Graphene is expected to have a plethora of applications once developed, which could include protecting planes from lightning strikes.
It is already used in hi-tech tennis racquets.
Mr Xi is set to visit the National Graphene Institute on Friday, accompanied by Chancellor George Osborne.
New hub for renminbi trade
A new deal will see the Chicago Mercantile Exchange become the first London trading platform to offer renminbi futures.
Leo Melamed, Chairman Emeritus, CME Group, Brian Durkin, Chief Commercial Officer, CME Group, Biao Li, Chairman, CCB London, and Hongzhang Wang, CCB Chairman
Investors will be able to hedge and trade on the expected movements in China’s renminbi, also known as the yuan. Offshore trade was previously restricted to delivery through Hong Kong.
“The ability to transact during London hours is of paramount importance to those institutions who value flexibility in managing their positions in markets where prices can move sharply in short periods of time,” said William Knottenbelt, head of international at CME.
London became the first venue for trading the renminbi in Europe last year.
Deal to build a Shanghai-based Legoland
Merlin Entertainments has agreed to bring one of its Legoland theme parks to the world’s second largest economy.
Merlin will bring its Legoland theme parks to China
The FTSE 100-listed company has formed a partnership with China Media Capital (CMC) to build attractions throughout China, including one of its iconic Legoland Discovery Centres close to the country’s largest city.
Merlin currently has five attractions in China, with Madame Tussauds in Shanghai, Hong Kong, Beiing, and Wung, and the Chang Feng Ocean World aquarium in Shanghai.
It plans to open another three in the next year and a half.
Nick Varney, Merlin’s chief executive, said: “China is a key growth market for the Group and we see this partnership as providing a significant opportunity to accelerate our plans.”
Kamal Ahmed, BBC business editor, said: “In brute pounds and pence, it will be the largest inward investment ever in the UK.
“Such is the significance of the agreement, it will be left to the leaders of Britain and China to announce the partnership.”
The government insists that 25,000 jobs will be created and enough energy to power six million homes.
Opponents have also raised security concerns about allowing China a central role in Britain’s nuclear future.
But Lord Sassoon, chair of the China Britain Business Council, told the BBC’s Today Programme he could not see what the problem was.
“Why would they want to turn off a nuclear power station in which they had some ownership?
“It doesn’t seem terribly logical to me, except in extreme circumstances in which that would be the least of the UK’s problems.”
Meanwhile, from January, the government is planning to run a pilot scheme that will allow Chinese tourists to get a two-year tourist visa for £85 – these currently cost £324.
The prime minister’s spokeswoman said the move was designed to boost the number of Chinese tourists coming to Britain.
The number has more than doubled over five years, with the tourism worth nearly £500m per year to the economy.