The visit to China is part of the Chancellor’s “Northern Powerhouse” initiative aimed at transforming the economy of the North by helping it compete on the global stage. And of course when that happens you are going to find that challenging.
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“But put it in perspective”.
A string of downbeat activity data combined with wild price swings in the stock markets and a surprise currency devaluation in August have fueled fears that the Chinese economy may be slowing more sharply than was expected earlier, putting Beijing’s 2015 growth target of 7 percent at risk.
Chancellor George Osborne is to lead a business delegation to China in a charm offensive designed to open up new markets for British companies and pave the way to what the Treasury describes as “a new era in UK-China relations”. “When you look at what China is doing at the moment, I think that the message that I would say to China is: ‘Carry on with the reform, carry on with the change you are making, ‘” Osborne said.
“So we are very support of the economic reforms that the Chinese government has talked about and are now starting to [put into practice]”.
Liu said the Chinese people are good at innovation and that over the past 66 years since the founding of new China, especially during the past 37 years since China’s reform and opening-up, China has learned from the advanced experiences of countries like Britain and vigorously pursued the strategy of rejuvenating China through science, education and talent cultivation.
He said he had insisted that as well as trips to regional centres like Chengdu in Sichaun and Urumqi in Xinjiang, his visit should include a trip to the Shanghai Stock Exchange, in order for him to deliver a message of confidence in the Chinese economy following this summer’s turmoil.
On Monday he is due to meet senior Chinese leaders in Beijing while on Tuesday he will visit the Shanghai stock exchange, the epicentre of the summer’s market chaos. “Of course there have been ups and downs. But in our estimation, the spillover effects – the impact of that on other financial markets – has been relatively limited”.
In a concerted effort to restore good relations, both Mr Cameron and Mr Osborne visited in 2013, when the PM urged China to invest in British infrastructure including nuclear power stations and high-speed rail.
She hoped that both China and Britain could promote mutual-learning of innovative ideas, treat each other equally, deepen cooperation and researches in some important fields such as health, environmental technology, water and food, urbanization, energy and education.
“I want us to forge closer economic and cultural links with China”, Osborne said.
He will be accompanied by Treasury minister Lord (Jim) O’Neill – the former Goldman Sachs chief economist who first coined the term BRICs recognising the global shift in economic power towards emerging giants Brazil, Russia, India and China.
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It comes ahead of a state visit to the United Kingdom by Chinese President Xi Jinping in October – the first by a Chinese leader for 10 years.
