High hopes for Cameron visit to China

A visitor checks out a Chinese gift company's stand at "Brands of China", a retail trade exhibition in Birmingham last year. David Cameron's upcoming trip to China reflects the British government's desire to cultivate closer trade and business links, analysts say. Provided to China Daily

Strength of delegation points to extent of Britain's aspirations

The ambitions of British Prime Minister David Cameron for his trade mission to China early next month are evident in the size and political clout of the entourage that he will bring with him.

Expectations for the visit are all the higher given that it is Cameron's first visit to China since the country's new leadership took office in March, and that he last time visited the country three years ago.

The delegation will include the ministers of foreign affairs, health, culture, environment, technology and business, and about 150 business leaders.

The chancellor, George Osborne, headed a business delegation to China two months ago.

During Cameron's visit, from Dec 2 to 4, he will meet Premier Li Keqiang and other top leaders. Besides Beijing, he will visit cities in eastern and western regions.

Analysts, business leaders and politicians say the trip reflects the British government's desire to cultivate closer trade and business links with the world's second-biggest economy and to capitalize on the thaw in Britain's relations with Beijing.

They also say the two economies are becoming increasingly complementary to one another and have huge potential to work more closely together.

Jonathan Fenby, an analyst on China and co-founder of Trusted Sources, a provider of research and consulting on emerging markets, says Cameron will try to strengthen political ties after the row over his meeting the Dalai Lama last year, and set the context for a continued economic relationship with Chinese investment in the UK and opportunities for British companies in China.

Guy Dru Drury, chief representative in China of the Confederation of British Industry, says: "The large UK business delegation supporting the Prime Minister's visit next month is looking to provide its technologies, expertise and services to China in a wide range of sectors, including healthcare, energy efficiency, professional services and the creative industries."

The confederation is the UK's premier business lobbying organization, providing a voice for employers nationally and overseas.

The organization speaks for more than 240,000 companies, including many in the Financial Times and Stock Exchange 100 and FTSE 350, mid-caps, SMEs, micro businesses, private and family-owned businesses and trade associations.

Drury says: "Building on the successful visit by the chancellor, George Osborne, and Boris Johnson, mayor of London, to China in October, our large and diverse delegation will help to reinforce the fact that not only are UK companies eager to do more business in China but our doors are firmly open to Chinese investment into the UK."

Over the past 18 months, Chinese investment has exceeded the total of the previous 30 years, the Chinese embassy in London says.

Since the beginning of this year there has been a surge of project investment. Chinese companies have invested or plan to invest in more than 10 big projects in Britain worth nearly $5 billion (3.7 billion euros). They include infrastructure, real estate and automobile manufacturing.

Paulo Barradas, executive director of Espirito Santo Investment Bank of Portugual, says Cameron's visit to China has created high expectations.

The delegation "will surely develop further Britain's relationship with China and pave the way for a long-term trade and investment partnership, including bilateral market opening", Barradas says.

Britain has been China's second-largest trading partner among all EU members since this year. China is Britain's third-largest trading partner after the EU and the United States.

From January to October, China-UK bilateral trade rose 7.5 percent to $56.1 billion, and the annual figure is expected to reach $100 billion by 2015.

China and Britain also signed a currency-swap agreement worth 20 billion pounds ($32.4 billion; 24 billion euros) recently that will further facilitate trade and investment. It was the first of its kind between China and a major developed economy.