China has signed £14 billion dollars of trade deals with the United Kingdom, as Chinese Premier Li Keqiang met with the Queen and held talks with British Prime Minister David Cameron, announcing a host of trade deals.
The largest of the announced deals was a £11.8 billion BP gas supply contract with the China National Offshore Oil Company (CNOOC), set to run over 20 years, starting in 2019.
In addition, a Memorandum of Understanding was signed between the two countries, paving the way for UK and Chinese rail industries to work together, with the state-owned China Development Bank (CDB) looking to invest in the UK’s High Speed 2 rail project. The Bank of China also announced a Memorandum of Understanding with the London Stock Exchange, with the state-backed China Construction Bank also expected to be confirmed as the first Chinese clearing bank which can engage in offshore renminbi trading in London.
Furthermore, China announced its intentions to invest in the UK’s next generation of nuclear power stations, with Mr Cameron telling a press conference,
“These figures prove once again that Britain is the most open economy in the EU, the most welcoming to Chinese investment including in our nuclear industry and our infrastructure and I’m determined to keep it that way. The UK will continue to stand for opening up trade in the EU, for progress towards an EU-China trade deal, and for free trade within the G20 and the WTO.”
Also see an analysis of Chinese investment in the UK by the BBC here.