State visit to close deals worth $46b

Chinese President Xi Jinping's visit to the UK is expected to close 30 billion pounds ($46.41 billion) worth of commercial deals and create over 3,900 jobs across the UK, as the two countries prepare to forge stronger economic ties. China's Ministry of Commerce said Tuesday the investment size is unprecedented, and will surpass those achieved by previous Chinese leaders who visited the UK. A statement issued by the British Embassy on Tuesday said numerous commercial deals involving, among others, the creative sector, retail, energy, health and technology, financial services, aerospace and education will be signed during Chinese President's UK trip, including export deals in retail worth over a billion pounds. The visit will also open up export opportunities for UK companies looking to expand in China, and attract Chinese investments. The Northern Powerhouse will get a boost as China is expected to announce further investments in the region when British Prime Minister David Cameron and Xi visit Manchester at the end of the week, the embassy said. On Tuesday, China's central bank attracted orders of more than 30 billion yuan ($4.72 billion) for its debut sale of debt on London's markets, the Financial Times reported. Major State-owned Bank of China also unveiled its trade center in UK's capital. As of Monday night, six Chinese companies have signed contracts with their UK partners, including Lakala Payment Co, NCF Group and 21Vianet Group, the Nandu Daily reported on Tuesday. Among them, Beijing-based Lakala signed an agreement with Allpay Ltd, UK's leading payment service provider, to jointly build a cross-country financial service platform. Separately, the BBC reported that Chinese investment group SinoFortone plans to invest 2 billion pounds in Orthios Eco Parks to develop waste power and food stations, aside from a plan to invest in an amusement park in Ebbsfleet, Kent. The Sunday Times also reported that Hamleys, a 255-year-old British toy store, is poised to be sold to a Hong Kong company run by a relative of Yuan Yafei, the billionaire owner of the House of Fraser. Investment impact According to China's commerce minister Gao Hucheng, more than 500 Chinese companies are currently operating in the UK. In 2014, bilateral trade increased by 15.3 percent, compared to the previous year, to $80.9 billion, with growth ranking first among all of China's trade partners in the EU. By the end of August this year, the UK invested $19.6 billion in China, with the number of projects reaching 7,992. Meanwhile, Chinese direct investment in the UK reached $12.8 billion by the end of last year, up from $1.35 billion in 2010, Gao pointed out in an interview published in the People's Daily on Tuesday. "Leaders of both countries have a vision toward bilateral cooperation, which will benefit both nations," Li Jian, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday. Shen Danyang, a Ministry of Commerce spokesperson, said China's 'Belt and Road' initiative, together with the UK's plan to bolster England's north, will provide new opportunities for cooperation in infrastructure. Jing Linbo, a professor at the Chinese Academy of Social Sciences, told the Global Times on Tuesday that the deals will upgrade related industries in China and encourage more Chinese companies to invest overseas.