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ppiclaimlineuk

UK and China grow closer - economically speaking

TheCityUK signed a memorandum of understanding with a tiny bit of help from the UK's Foreign and Commonwealth Office (FCO), with a huge Chinese government bank.

Based on TheCityUK (and Standard Life) chairman, says that the CDB needs to "expand substantially its operations in London" - which could give the UK finance heart a leg up against Germany in a continuous competition for dominance as a Chinese money trading heart.

This form of arrangement looks like something that might have formerly been done with the British Bankers' Association - but TheCityUK have taken an increasingly significant profile lately, and it is a huge prize about them to be strongly involved.

No details were agreed but both leaders said they discussed the multi-billion-pound jobs. The two leaders laid the bases for prospective direct investment by China as part of the wide ranging discussions, which resulted in GBP14bn of commerce deals.

Additionally at the discussions, Rolls Royce said it's consented to work more closely with the State Nuclear Power Technology Corporation on civil nuclear power in China. It's probably a direct investment in HS2 and new atomic would be made through the China Development Bank Corporation, which is in charge of financing large scale undertakings on behalf of the power station market.

On Tuesday the bank signed a memorandum of understanding (MoU) with TheCityUK to "enlarge its funding and lending action in the United Kingdom, including in infrastructure-related investment".

Another MoU was signed by the Department for Transport and its Chinese counterpart, the NDRC, investing the states to "company cooperation in the railway sector". China is a minority associate in EDF's strategies to construct a brand new nuclear station at Hinkley Point in Somerset.

The deal will support trading in China's currency, the renminbi, that will open up trade opportunities in China to British companies as well as CDB financing in the United Kingdom.

The memorandum a part of the statements made by Premier and David Cameron Li Keqiang on Tuesday day on closer Sino UK relationships that are commercial.

Meanwhile, China's ZN Shine Solar and the UK's MAP Environmental have entered into a joint venture to buy, develop, and manage GBP400m of UK solar panel assets.

The job will call for a three year building programme in conjunction with some of the biggest engineering and building contractors in the United Kingdom.

Downing Street has previously insisted the course will be fully financed by the citizen, but a big investor could come in to run the service or to construct stations and ancillary services that were linking.

CDB is among the largest players in infrastructure development loans world-wide and is viewed as an arm of Beijing's economic development policy including an expansion of the nation's "soft power" around the world.

CDB is currently looking to expand that of China, and its sway, into Europe.

They're not by yourself. The Bank of China also declared a memorandum of understanding with the London Stock Exchange on Tuesday to raise its existence in the City.

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