Osborne will want to emphasise that Chinese money is funding a growing amount
of investment across the UK and that it could fund rather more.
There are serious issues which still threaten to hamper relations, not least
the difficulties even senior Chinese figures have obtaining British visas.
The problem, raised on more than one occasion during Cabinet meetings, is
known to be deterring businessmen and tourists from China.
“On the visa front, London is just about to announce an absolutely record
Chinese year – 17.9m Chinese tourists spent £12.4bn in a big post-Olympics
boost – but we’re not exploiting the Chinese market as much as other
countries,” admits Johnson.
“We’re lobbying the Home Office – it’s an impediment and it’s a difficulty and
occasionally it’s an irritation. Clearly, we want people who are going to
contribute to the London economy to come to London.”
In a co-ordinated diplomatic push, the Chancellor and the mayor have stressed
the importance of Chinese businesses to the UK. Dismissing the concerns
raised by a parliamentary committee about the national security implications
of Chinese investment, Osborne said in June: “It is a personal priority of
mine to increase trade links between the UK and China and I cannot emphasise
enough that the UK is open to Chinese investment.”
He trumpeted Huawei’s plan to invest £1.3bn into its Reading-based UK business
over the next five years, generating a further 700 jobs.
Despite those and other conspicuous wins, few consider Britain to be the first
choice partner for China, which is spreading its tentacles across growing
swathes of Africa, as well as increasingly into other European countries
whose economic difficulties have made them increasingly attractive places
for investment.
Although the UK is the second biggest external renminbi trading centre after
Singapore, many City analysts believe Britain should also capitalise on its
role as a middleman between China and its global investments.
“Business leaders are incredibly keen for us to do this kind of thing, to lead
these sorts of trips,” says Johnson. “That level of political door opening
and engagement – it is very important for the City at a political level to
show its engagement and its commitment to our Chinese partners. And I think
you’ll find business leaders themselves will confirm that.”
The mayor says London will be able to capitalise on major Chinese-funded
projects such as the £1bn rebuilding of the Royal Albert Docks and the £500m
plan to restore the Crystal Palace. “There is a lot to do,” says Johnson.
“But we’re determined to show that London has a huge amount to offer, both
in financial terms and in the cultural benefits, from the number of
Michelin-starred restaurants to the nightlife.”
London’s delegation “will be making the case for that overtaking Singapore,
which I believe is perfectly possible”.
Nonetheless, in a country that still takes a rigid approach to protocol, both
the mayor’s and the Chancellor’s staff have been keen to ensure that no
details of the impending announcements leak out. What is certain is that we
will hear more on the funding of Britain’s next nuclear power station and if
technology giants, such as Huawei, will continue to increase investment in
the UK, despite growing hostility to the brand in America.
The backdrop is David Cameron’s meeting in London last year with the Dalai
Lama, which badly damaged political relations. All ministerial contact was
suspended by China after Cameron and Nick Clegg met the Tibetan leader in
defiance of a specific request from Beijing not to do so.
Johnson claims it did not have a negative impact on the City. This week’s two
trips seem to show no permanent harm has been done. Of more pressing concern
for many of the delegates will be China’s record on intellectual property –
some British manufacturers report that more than 90pc of sales are taken by
Chinese fakes, while companies have been locked in repeated legal battles
over breaches of copyright. Improvements in approving patents have helped,
but, privately, it’s the one issue many leaders hope the delegations will
address.
But don’t expect Johnson or Osborne to rock the boat publicly. “Our trip has
been in the diary a very long time and it shows the level of commitment by
Britain,” says Johnson. “We’re determined to show how much we love China.”
London will offer China more than Singapore can, says Boris Johnson
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