UK hails £40-billion deals with China
TRADE TALKS British government calls Chinese President Xi Jinping’s visit the beginning of a ‘golden era’ for the country
LONDON: Amidst uneasiness about China investing in two nuclear reactors in Britain, the David Cameron-led government hailed the recent four-day visit of President Xi Jinping, when deals worth £40 billion were sealed.
Though the government hailed the visit as the beginning of a ‘golden era’ between Britain and China, critics alleged that trade and business — particularly in the sensitive nuclear sector — was being privileged at the cost of principles such as human rights.
Jinping’s visit will be followed by Prime Minister Narendra Modi’s visit from November 12, when the focus will also be mainly on trade and business. Officials, however, said that the scale and size of the deals with India may not match those signed with China.
Highlights of deals with China include a £6-billion Chinese investment to build two new nuclear reactors at Hinkley Point C in Somerset. Hinkley Point C is expected to generate a stable source of clean power to nearly six million homes.
Given China’s practice of using its workers on projects abroad, critics alleged that there was no guarantee that the deals would generate major employment in Britain. Chancellor George Osborne refuted charges that Britain was ‘kowtowing’ to China.
Officials released a list of 36 commercial deals agreed during the visit, which added up to around £34 billion, with another £6 billion said to be tied up in agreements that could not be detailed because of commercial confidentiality or sensitivity.
BP and China Huadian Corporation signed a sale and purchase agreement for BP to sell Huadian up to 1 million tonnes of liquefied natural gas (LNG) per year worth up to £6.5 billion over the next 20 years.
Rolls-Royce announced a deal with the HNA Group to provide Trent 700 engines to power 20 Airbus A330s. This also includes service support for the engines. Rolls-Royce and the HNA Group have also agreed a TotalCare package for a further 9 Trent 700 engines and 15 Trent XWB engines. The total value of the deal is £1.56 billion.
The deals also include an MoU signed by Inmarsat with China Transport Telecommunication Information Centre to implement a strategic partnership worth more than £2 billion to deliver Inmarsat’s 5th generation satellite service, Global Xpress, throughout China, It aims to establish a joint venture to provide passenger connectivity and safety services to Chinese airlines globally.