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The British Prime Minister David Cameron has claimed China will bring a £30billion investment to British shores. According to 10 Downing Street The money created by the fresh deals made by China will help to generate approximately 3,900 new jobs throughout Great Britain. The timing of the new deals and investment was made as the UK welcomed China’s President Xi Jinping on a visit to the country.
Speaking of the new deal, the British Prime Minister said; “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.”
Reiterating David Cameron’s excitement of China’s interest in Britain, Kamel Mellahi, Professor of Management at the Warwick Business School, referred to the relationship as a “win-win economic alliance.”
This mutually beneficial alliance will see China using Britain to market what China is capable of to other industries within Britain thus having the potential of securing more partnerships. While receiving investment is welcome the UK could also benefit from becoming a hub for trading the Chinese currency.
SO how does the deal break down?
Investment in nuclear power of up to £8 Billion
In a recent article by The Telegraph , it was reported one Chinese company is on target to acquire a stake of 33.5% in the first nuclear power station to be constructed in the UK for a generation. Known as the Hinckley Point project, the power station is in Somerset and is expected to be operational by 2025.
Electric buses deal worth £2 billion
The Chinese firm “BYD Company Ltd” has joined forces with Scottish based firm Alex Dennis Limited (ADL) to manufacture a total of 200 electric single deck buses. Throughout the next decade, the deal is forecast to generate approximately £660 million in revenue. If the agreement is extended to incorporate double decker electric buses, it could generate as much as £2 billion.
The partnership will help give long term job security to the 3,500 employees of Alex Dennis Limited with the prospect of creating further jobs in the future.
It was reported by the BBC that BYD’s founding Chairman Wang Chuan-fu had 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, which can make a major contribution towards the clean air challenges facing cities around the world”.
Television training project
Money invested into the UK by China will also sustain a television training project at York University. The Prime Minister was quoted by The Telegraph as saying; “The alliance between China and the University of York was further evidence of the Government’s long-term economic plan being put in action and the partnership was a huge achievement for York University”.
Theme park gets a £100 million investment injection
It was reported on Kent Online , that a Kent based theme park, the “London Paramount Entertainment Resort” has secured £100 million in funding from the Chinese construction company SinoFortune. The money will help with the £3.2billion building costs and the resort is due to open in 2021.
On the Paramount London website David Testa, the theme park’s chief executive was reported as saying: “We are delighted that SinoFortone Group of China has decided to invest. 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.”
Aston Martin cars aren’t left on the investment side-lines
Chinese investment is also being made with Aston Martin, with China Equity investing £50 million into the development of the emission-free electric car the RapidE, which is expected to be ready by 2017.
According to the Aston Martin company website, Dr Andy Palmer,was reported as saying; “We see luxury electric vehicles as an intrinsic part of our future product portfolio and welcome ChinaEquity into the next phase of study for the project development.”
London taxis enjoy Chinese investment
As part of the total investment into the UK by China, £250 million will be invested into the London Taxi Company by Chinese businessman Zhejiang Geely. The company which was rescued from administration by Geely in 2012, announced that Geelys £250million investment will be used to build a research site in Coventry for the development of a next generation hybrid taxi cab. The site will create around 1000 new jobs.
It was announced on the London Taxi Company’s website that David Cameron, the UK Prime Minister was quoted as saying; “Geely’s £250 million investment and the creation of up to 1000 jobs is great news for Coventry and a vote of confidence in our long-term economic plan to back business, create jobs and secure the recovery”
Getting global audiences interested in Chinese television
In a bid to generate interest in Chinese TV, Distrify in Scotland has made an alliance with Future TV to dissipate Chinese television programs outside of China. Furthermore, ITVS Global Entertainment has signed a long-term agreement to give audiences in China access to the TV drama Poldark.
China backs the National Graphene Institute
According to Sky News, China’s telecoms giant Huawei will channel “millions of pounds” into Manchester University’s National Graphene Institute. This came about after the president Xi Jingling was impressed with the establishment after a recent visit. It is forecast that the innovative Graphene will have a myriad of applications, which could possibly include technology to protect aeroplanes from being struck by lightning.
The investment into the Graphene Institute is only one of many investments into Manchester. Mr Osborne who visited Manchester University with Mr Xi was quoted by the BBC as saying; “Billions of pounds of investment would be coming into northern England and there is now unstoppable momentum behind the Northern Powerhouse project.”
China signs deal for London to be a new hub for Renminbi trading
Chicago Mercantile Exchange will be the first trading platform in London to be able to offer renminbi futures, (Renminbi (RMB) is the official currency of the Peoples Republic of China) . The ground-breaking deal means that investors will be capable of trading on the predicted movements of the RMB, also referred to as the Yuan (CN¥), which has previously been limited to trading through Hong Kong.
Talking to The Telegraph, CME’s head of international, William Knottenbelt said;
“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.”
Investment to construct a Legoland in Shanghai
According to Reuters , an agreement has been made to construct a Legoland in Shanghai, in a £194 Million joint venture between China Media Capital (CMC) and FTSE 100-listed company, Merlin Entertainments. Other Merlin Entertainments attractions are due to be built across China in the future, adding to the five attractions that already exist in the country, including Madame Tussauds in several of China’s biggest cities.
Speaking of how China is an important market for Merlin Entertainments, Nick Varney, the company’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.”
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