China: To the rescue

27th June 2011

The strength of China's economy has not been in doubt for some time, however when it comes to global business – aside from their Eastern European interests –  Chinese companies are still newcomers.

However recent developments show that China may help to play a part in the economic recovery of the world's developed nations, particularly European ones.

From the BBC News website it is reported that British business hopes to sign deals worth more than £1bn when the Chinese Premier Wen Jiabao meets David Cameron at Downing Street later today (Monday).

Mr Wen, who arrived from China on Sunday is in the UK on a three-day visit and has already visited the Longbridge MG car plant.

Cameron and Wen are are expected to sign an agreement to help UK companies work with China's regional cities, in architecture, civil engineering and research and development.

A Downing Street spokeswoman said: "The summit will be an opportunity to tap that potential and to continue to work closely with China to find global solutions to a range of issues from climate change to global security."

Wen is also leading a Chinese bid for work on the HS2 high-speed rail line between London and Birmingham.

The BBC also reports that British exports have increased by 20% since Mr Cameron was in Beijing last November.

Concerns about human rights in China were brought up in The Telegraph's coverage.

It reported that Wen will meet David Cameron at the annual UK-China Summit in London, where they are expected to discuss trade links, as well as the European debt crisis and human rights.

Deals expected to be agreed include collaboration between UK-based Seamwell International and China Energy Conservation and Environmental Protection Group to develop an underground electricity plant powered by clean coal in Inner Mongolia. London's Imperial College helped develop the technology behind the plant.

This is the Chinese premier's second trip to Europe in just nine months, highlighting China's growing interest in investing in Europe.

Wen is also reported on The Telegraph as pledging to help support Euroepan economies.

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