A string of urban regeneration projects in Sheffield worth nearly £200m is among the trade deals being targeted by Philip Hammond when he visits China for the first time as Chancellor next week.

Sky News understands Mr Hammond is expected to sign a deal with Sichuan Guodong Construction Company during a trip to China for the G20 finance ministers' meeting in the city of Chengdu.

Treasury officials were racing this weekend to ensure that the agreement will be ready in time for the Chancellor's visit, although one source cautioned on Saturday that the timetable could slip.

The deal, which was drawn up by Sheffield City Council last autumn, will be the latest in a series of major Chinese infrastructure investments in the UK.

It will be hailed by Mr Hammond as evidence that international investors regard Britain as being open for business despite the hesitation of many businesses in committing capital to projects in the wake of the UK's vote to leave the European Union.


The proposed deal with Sichuan Guodong, which is understood to be worth approximately £190m in its initial phase, is said to involve a major hotel development, student accommodations, retail and leisure space.

If it is struck in time, it will also represent a boost to the 'northern powerhouse' programme championed by Mr Hammond's predecessor.

It will come days after Mr Hammond replaced George Osborne at the Treasury, and with Liam Fox newly installed as the Secretary of State for International Trade.

Other Treasury ministers, such as Lord O'Neill, the former Goldman Sachs economist, are expected to be asked to continue in their roles following sweeping changes elsewhere in Government.

A number of business leaders, including the HSBC chairman Douglas Flint, and Sir Gerry Grimstone, the chairman of Standard Life, were invited to join the Chancellor's trip to China prior to Mr Osborne's departure.

It was unclear this weekend whether they would attend, with other big financial services companies such as Virgin Money also understood to have been asked to go.

Under David Cameron's administration, Britain invested huge amounts of political capital in forging closer trading ties with China, brokering a multibillion pound investment in the controversial nuclear power station at Hinkley Point.

Advisers to Theresa May, however, are more sceptical about the relationship with China, with one, Nick Timothy, reported to have been highly critical of Mr Osborne's approach.

"The Chancellor has been clear that he wants to send a strong signal to the world that Britain is open for business and that this Government will do whatever it takes to keep that vital investment flowing into our economy," a Treasury spokeswoman said.

"With many organisations pausing investment decisions since the vote to leave the European Union - his message in Beijing and Hong Kong next week will be that Britain remains a world class destination for inward investment and trade."

The Treasury declined to comment on the deal with Sichuan Guodong Construction.