UK finds source of investor support in China

NVC, which has invested 15 million pounds ($23 million) in the region so far, is expected to create 250 new jobs by 2015.

"We certainly see that in the near future that China will become a very large source of investment in the UK and certainly into the city because we demonstrate successful investments like SAIC and NVC," said Marek Dobrowolski, investment manager of Business Birmingham.

"We are being‘proactive’on engaging with China," he said.

Dobrowolski added that Business Birmingham, which seeks to attract inward investment into the city, is in discussions with around 160 potential international investors, around one in 10 of which are from China.

He noted that Chinese companies will have more investment opportunities as the city prepares to make improvements to its infrastructure over the next five years, including building a high-speed rail link between Birmingham and London.

The MG6, the first all-new MG in 16 years, at the Beijing Auto Show in May. SAIC Motor Corp Ltd purchased the struggling UK automaker in 2005. [Photo/China Daily]

The UK government plans to invest 200 billion pounds ($312 billion) to develop the country’s infrastructure over the next five years.

Hopes of persuading the private sector and overseas investors to help rebuild Britain’s aging infrastructure have received encouraging signs from China Investment Corp, China’s sovereign wealth fund.

Lou Jiwei, chairman of the fund, said in an article in the Financial Times late last year that the CIC "is keen to team up with fund managers or participate through a public-private partnership in the UK infrastructure sector as an equity investor".

But Fu Xiaolan, an expert on Chinese overseas investment at Oxford University, said that Chinese companies would have to improve its communication with the British public before embarking on investment in the nation’s infrastructure.

"(Chinese companies need to) let the British people know that infrastructure is just part of China’s investment abroad and there’s no strategic goal," Fu said.

Her concern is not groundless considering Huawei Technologies Co Ltd’s failed effort to provide mobile phone signals in London earlier last year.

The telecommunications solutions provider was reported in February 2011 to have made an offer to provide telecom equipment as part of a partnership with UK mobile phone operators.

But the British government rejected the offer, which was worth up to 50 million pounds, over "spying fears", because Ren Zhengfei, founder and CEO of Huawei, was formerly an officer in the People’s Liberation Army.

But Fu said investing in the UK’s infrastructure "is a good choice" for Chinese firms.

"There are opportunities because the UK’s austerity and public spending cuts have left a big financial gap in this area," she said, adding investing in infrastructure is a "safe and stable" choice.