Osborne: ‘We shouldn’t run away from China’

On conclusion of the UK-China Economic and Financial Dialogue (EFD), the two countries have agreed to strengthen macroeconomic policy coordination and take appropriate policy measures in line with the economic and financial situation at home and overseas , as well as promote strong, balanced and sustainable growth of both countries.

Worries have grown over the world’s second biggest economy, stemming from wild swings on the Shanghai bourse, which was described by Mr Osborne as the “epicentre of the volatility in financial markets”.

The United Kingdom and China have launched a “landmark feasibility study” into linking both countries’ stock markets.

Meanwhile, Agricultural Bank of China announced it will issue an renminbi-denominated green bond in London.

Britain has already firmly established itself as the Western hub for renminbi (RMB) business.

Mr Osborne also said China’s central bank will start to issue short-term debt in London, the first time it has done so outside of China.

As he spoke, giant monitors showed the real-time performance of the Shanghai Composite Index and the hard currency Shanghai B share index – one of the first market experiments to allow foreign companies to list in China.

“The guarantee is a signal sent out by the British government that Britain is still committed to nuclear energy, and this would help to give confidence to the French and Chinese investors, said Andrew Shepherd, senior power and renewables analyst at BMI Research”. The partnership will make Euronext’s companies and products more visible and accessible.

Gilbert added in his Telegraph article: “So we have chosen to gain exposure to the Chinese economy through other routes, mainly by investing in Asian and global businesses with significant interests in China”.

By 2020, British exports to China could reach more than £30 billion, he said.

World-leading nuclear know-how from the county is also to be deployed in China as part of a potentially lucrative trade link.

Treasury chief George Osborne, who is on a trip to China, says Britain will underwrite China’s stake in the Hinckley Point power station. “Through the ups and downs, let’s stick together”.

He said his message to the Chinese authorities would be “Don’t turn back”. That’s why I’ve come to China again and again in this job.

“The Chinese government has been actively pressing for more worldwide cooperation”.

“They very much want to have their design up and running in the UK”. We’re a multi-party democracy.

Of course, do we disagree about human rights?

The Chancellor is now touring China to drum up support for a “bridge” with the City of London, as well as attempting to reassure the markets.

“But isn’t it better to engage and to talk about these things rather than to stand on the sidelines and try and conduct some kind of megaphone diplomacy”.