Britain is an "old, declining empire" which resorts to "eccentric acts" to hide its embarrassment over its declining power, an official Chinese newspaper has claimed on the second day of a visit by the country's premier, Li Keqiang, to London.

As China was given the chance to take a decisive stake in the next stage of Britain's energy and transport infrastructure on the first day of the premier's visit, the Global Times said a "rising" country such as China should seek to understand a declining power.

The paper, which is owned by the official Communist party People's Daily, took a swipe at Britain after reports last week that Beijing had threatened to call off Li's visit if he were not allowed to meet the Queen. The premier and his wife began their visit on Tuesday with an audience with the Queen at Windsor Castle.

The Global Times wrote of the reports of a Chinese threat to cancel Li's visit: "Diplomats might break out into laughter at such rhetoric. This hype only serves to reflect the narrow-mindedness of the British media and even the whole of its society. The once-powerful British empire must now resort to such trickery to manifest its pride."

The official newspaper added: "Perhaps Chinese people should forgive Britain's confusing sentiment. A rising country should understand the embarrassment of an old declining empire and at times the eccentric acts it takes to hide such embarrassment. Diplomacy has to be based on realistic recognition of the two countries' power. No matter for China or the UK, it will be tiring if they try to distort this reality."

Global Times - Ragout Photograph: Global Times

The official spokesman for the prime minister, David Cameron, sought to shrug off the significance of the article, telling a Westminster media briefing: "I read in the Times of London Premier Li's article when he said this was a great nation. That is the prime minister of China's view."

The barbed comments echo an editorial in the paper during Cameron's visit to China last December. At the time, it described Britain as "just an old European country apt for travel and study".

The criticism follows agreements between Britain and China on the first day of Li's visit that will allow Chinese companies to own and operate a nuclear power station and to help build high-speed rail lines.

The agreements are among trade deals worth £14bn agreed with Beijing. They have prompted Cameron to declare that Britain is playing a part in the rise of China – something he called a defining event of the 21st century.

The two most controversial aspects of the deals will allow Chinese firms to own and operate a Chinese-designed nuclear power station and to build and operate rail lines in Britain. The Chinese have a mixed safety record on high-speed rail.

On Tuesday, Cameron said: "Ours is truly a partnership for growth, reform and innovation. Our partnership goes well beyond the economic field. The UK recognises that the rise of China is one of the defining events of our century.

"We welcome the fact that China's economic growth is lifting millions out of poverty. As premier Li noted, as China grows in economic power that brings greater responsibilities on the world stage."

The government moved to stem criticism of cooperation in the highly sensitive area of civil nuclear power by saying it was part of an overall agreement to tackle climate change. China and Britain also signed a joint statement on climate change.