Theresa May and Philip Hammond woo Chinese delegation in attempt to persuade Beijing to invest billions in north England

Britain’s relationship with China remains “golden”, Theresa May has said, as she opened talks aimed at bringing billions of pounds in Chinese investment to the north of England.

The prime minister and Philip Hammond, the chancellor, are meeting Ma Kai, one of China’s vice-premiers, and other senior Chinese officials. The two-day visit by Ma is seen as an opportunity to put UK-Sino relations on an even keel after the row over Hinkley Point C.

Using the “golden era” phrase coined by David Cameron and George Osborne in their attempts to woo the Chinese, May said on Thursday: “I am determined that as we leave the European Union, we build a truly global Britain that is open for business.

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“As we take the next step in this golden era of relations between the UK and China, I am excited about the opportunities for expanding trade and investment between our two countries.”

Hammond will attempt to secure Chinese investment in more than £5bn worth of infrastructure and property schemes across the north of England, including plans to double the size of the BBC’s MediaCityUK in Salford.

The portfolio is similar to the Northern Powerhouse Investment Pitchbook Osborne launched in September last year during a trip to Chengdu, the capital of Sichuan province in China.

It is unclear what Chinese investment followed the then chancellor’s £24bn pitch, but at least three of its projects also featured in Hammond’s portfolio launched on Thursday.

The 13 projects on offer to the Chinese include plans to build 1,000 homes in Liverpool, the UK’s biggest potash mine in the North York Moors national park and a regeneration project that promises to bring 6,000 jobs to Doncaster.

While Osborne’s pitchbook was heavy on projects in the major northern cities of Manchester, Sheffield, Leeds and Newcastle upon Tyne, Hammond will attempt to secure investment for other urban areas including Sunderland, Stockport and Ellesmere Port.

Steve Tsang, a professor of contemporary Chinese studies at Nottingham University, said China’s interest in the northern powerhouse was limited, but Ma’s visit was more significant given Donald Trump’s election in the US on Wednesday.



“I don’t think the Chinese are bothered with the northern powerhouse at all. That is a British agenda. They are listening, but no more than that,” he said. “They’re interested in making money and will only do it [invest] if they see the British proposals being put on the table as offering something for them.

“The visit becomes more useful now because of the US election result. Even though the Chinese preferred Trump to win over [Hillary] Clinton, they are also aware that Trump is likely to take a more unpredictable and strong position on Chinese economic ties, investment and capital flow.

“That being the case, what the UK is proactively engaging with the Chinese on – trade, investment and economic cooperation – becomes more attractive.”

Liam Fox, the international trade secretary, confirmed that the government was working with 15 Chinese investors on property development and infrastructure projects in the north of England, although officials have not given details of the schemes.

“Attracting trade and investment is the foundation of our strong economy, helping to create local jobs, build local businesses and contribute to our national wealth,” he said.

“These real-time and market-ready projects will build on the successes of the northern powerhouse region, which has for centuries been a global hub of commerce, science, technology and innovation. Setting out opportunities like these show to Chinese investors, and to the world, that the UK remains open for business.”