David Cameron is hoping to sign off on billions of pounds worth of Chinese investment when he hosts the Chinese president Xi Jinping in London.
Hinkley Point, the UK’s first nuclear power plant in decades, is on the table, alongside transport and infrastructure deals in most of big cities in the north of England.
Chinese overseas investments have grown from £20 billion in 2005 to $171 billion last year. Since 2005, the UK has received $29.5 billion, meaning China could be about to double the amount it invests.
Interest in the UK has increased in fits and starts since 2005, but it is expected to increase rapidly if the Chancellor George Osborne signs off on just some of the projects up for grabs.
Chinese companies already own a controlling stake of Weetabix, House of Fraser and Sunseeker yachts. Pizza Express is 100 per cent owned by a Chinese company.
China’s largest single UK investment is a $3 billion slice of Barclays. Given the size of the bank, this only buys a 3 per cent share.
The deal at Hinkley would boost Chinese investment in the UK energy sector, which already accounts for half the Chinese money in the UK.
But property is by far China’s biggest interest. Mr Osborne has billions of pounds in property deals prepared for the Chinese in his deal book, including a New Chinatown in Liverpool and a new retail quarter in Sheffield. There’s also a Science Centre comprising houses and shops for sale in Newcastle that is described as a “living laboratory” where “solutions” to cities can be tested and commercialised.
