– Chasing ‘China money’ –
Economics professor Ivan Tselichtchev, an expert on Asia, said burgeoning relations between the two countries are led by a business rationale.
“The UK is effectively the only European country showing a strong political will to attract ‘China money’ into infrastructure projects,” he said.
“In broader terms, perhaps more than any other major developed nation, the UK values the business dimension in its relationship with Beijing.”
Chinese sovereign wealth funds, state enterprises and, increasingly, private companies are buying up British firms and land, creating joint ventures with local partners or setting out on their own in Britain – a bridgehead to continental European markets.
Michael Gestrin, an economist at the Organisation for Economic Co-operation and Development (OECD), has calculated that China has accounted for some $70 billion (62 billion euros) in mergers and acquisitions in Britain since 2008.
Some of China’s purchases have been striking on a symbolic level – like the takeover of the company that makes traditional London taxis.
But investments in infrastructure are more impressive and promise to grow further.
Between 2015 and 2025 China could invest £105 billion (141 billion euros, $162 billion), including in energy, property and transport, said Danae Kyriakopoulou from the Centre for Economics and Business Research in London and the co-author of a report on Chinese investments.
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