Charm offensive for Xi Jinping: London woos Chinese investment

Chinese president – and Manchester United fan – Xi Jinping is being given the VIP treatment at Manchester City’s Etihad Stadium alongside David Cameron today. British city Manchester sought to position itself as a gateway for investment from China as it welcomed Chinese President Xi Jinping for the conclusion of his state visit to the country on Friday.

China was very happy that Britain became the first western nation to join the China-led Asian Infrastructure Investment Bank in March. The Chinese state visit will also see Hainan Airlines announce the first direct flights from Manchester Airport to China – the first outside London.

China and Britain agreed Wednesday to raise their ties to a “global comprehensive strategic partnership” in the 21st century.

Cheers! As markets raise a glass to the People’s Bank of China’s rate move, let’s not forget President Xi Jinping has been out raising spirits himself.

Mr Xi is known to be an enthusiastic Red but instead he will be watching a training match between their rivals and a Chinese team – as well as meeting big City names such as Sergio Aguero and Patrick Vieira.

Although there were protests at several venues throughout his stay, the carefully orchestrated visit served Prime Minister David Cameron’s goal of emphasizing the important of Britain’s developing economic relationship with China.

Mr Cameron said he raised Beijing’s abuses in private talks with the president, as well as other contentious issues such as the collapse of the UK’s steel industry in the face of cheap Chinese imports and alleged “dumping”.

The four-day trip focused on strengthening relations between London and Beijing, particularly trade ties, and Cameron’s office announced deals worth almost £40 billion ($61.6 billion, 54.4 billion euros).

The Prime Minister said: “We are committed to rebalancing our economy and building a Northern Powerhouse”.

Plans to open three House of Fraser shops in China following the £480 million acquisition of the department store chain by Chinese giant Sanpower past year – valued at £100 million on the list – were widely reported in April.

Lord Sassoon, head of the China-Britain Business Council, says he belives UK companies will be given more opportunities to work with China in the future.

Linking the northern English cities of Manchester, Leeds and Sheffield will cost money – lots of it. And the British government wants Chinese companies to help build High Speed 2 – better connecting the region to London and Europe.