In a speech to the Shanghai Stock Exchange, Chancellor George Osborne revealed his own daughter Liberty is learning Mandarin – the main language spoken in large swathes of China.
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Mr Osborne offered a message of solidarity with the far eastern giant in the wake of the summer’s Asian financial meltdown, which saw prices in Shanghai slide by 8.5% in a single day.
Mr Osborne also invited Chinese investors to become involved in infrastructure schemes in the north of England, including a proposed Science Central development in Newcastle and the Atlantic Gateway development between Liverpool and Manchester.
“We are building an ever closer relationship with China – it’s a partnership that is set to unleash growth and help regions like Xinjiang, where we know investment can make a real difference”, he said.
On top of that, he said plans had been agreed for a £50m nuclear research centre, to be co-funded by Britain and China and headquartered in the UK.
He also called for Chinese firms to bid for contracts worth £24bn in northern England. The United Kingdom already issued renminbi-denominated bonds a year ago.
“I want to take the opposite path”, said the Chancellor.
The plans are certain to be opposed by the Labour Party’s new leader Jeremy Corbyn, who said in his leadership campaign that there should be more public investment, and that there was no need to balance the budget within the next five years.
It means British and Chinese shares could be traded in both nations. China has the biggest high speed network in the world.
Former Lib Dem business secretary Sir Vince Cable said the Chancellor was “taking quite a punt on China”.
“London is hoping to attract more Chinese companies to list on its stock exchange, while Beijing sees London as a key market to expand the internationalization of the yuan”, he said. The £2 billion loan has to be repaid by 2020.
Li briefed Osborne on the fluctuations of China’s stock markets in the past few months.
And he added: “Whatever the headlines, regardless of the challenges, we shouldn’t be running away from China”. “Through the ups and downs, let’s stick together…to grow our economies”.
“The government needs to match its rhetoric with action and boost our economy by overhauling the Chinese visa system”.
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Campaigners criticised Osborne for his focus on investment over human rights on Wednesday as he visited Xinjiang in northwest China, homeland of the country’s mostly Muslim Uighur minority and the site of increased unrest in recent years.
