Osborne encourages China to invest billions in northern property

During a tour of Chengdu in China, the Chancellor urge Chinese companies to bid for seven contracts to build bridges, tunnels and earthworks on the line which will link London with Manchester and Leeds, via Nottinghamshire and Derbyshire.

George Osborne was accompanied by Lord Jim O’Neil, British Business Secretary, Former Chief Economist of Goldman, and BRIC concept proposer, Sherry Madera, British Embassy Minister-Counsellor, and British business representatives.

Mr Osborne also opened a “Northern Pitchbook” showcasing more than £24bn-worth of investment opportunities in the “Northern Powerhouse” – including an opportunity to help build 10,000 homes in Manchester as part of a £3bn project.

These include the Atlantic Gateway – a series of projects connecting the Port of Liverpool to the City of Manchester; Sheffield Retail Quarter and the South Bank, Leeds, a regeneration scheme covering more than 130 hectares in the city centre.

“That’s why I’m here in China opening the bidding process for construction contracts worth £11.8bn, which will propel HS2 forward”.

Human rights groups were particularly incensed by Mr Osborne’s decision to visit the restive far-western province of Xinjiang where China has long been accused of systematically repressing the local Muslim Uighur population.

In an editorial (in Chinese), the Global Times praised Mr Osborne’s “pragmatism regarding his China policy”, adding that “it should be diplomatic etiquette for foreign leaders not to confront China by raising the human rights issue“.

He said that just like Japan’s Hitachi has set up a UK manufacturing plant, he believes CRRC can do the same to improve its chances of being selected, particularly if it incorporated leading UK technology in its plans to ensure that trains meet UK technical requirements, as well as creating British jobs.

“But it’s also crucial that we learn lessons and take advantage of global expertise and efficiencies where they have a history of building high-speed rail”.

Richard Houghton of the HS2 Action Alliance said the move showed that it had become a “political project” to support Mr Osborne’s ambitions to succeed David Cameron when he stands down as Prime Minister. “If the contracts are going to the Chinese it makes a nonsense of that claim”, he said.

Final contracts would not be signed until the bill received Royal Assent. China has the biggest high speed network in the world.

Britain’s second most powerful man, George Osborne, will lead a trade delegation to Iran next year if the Islamic Republic honors a nuclear deal with world powers, the Financial Times reported.

“However, it is important for Chinese railway firms to understand the differences between Chinese and United Kingdom environments when looking to bring their experience to benefit United Kingdom projects”, Jackson said.