Chinese state visit: up to £40 billion deals agreed
From 20 to 23 October 2015 the UK welcomed President Xi Jinping to London for the first state visit from China in 10 years.
Almost £40 billion worth of deals between the 2 countries were agreed during the visit.
The below is a list of commercial deals that have been agreed during the China State Visit:
Highlights of commercial deals
Hinkley: £6 billion Chinese investment to build 2 new nuclear reactors at Hinkley Point C in Somerset. Hinkley Point C will generate a stable source of clean power to nearly 6 million homes, and will provide up to 25,000 employment opportunities. In operation Hinkley Point C will employ around 900 permanent staff.
BP and China Huadian Corporation today signed a sale and purchase agreement for BP to sell Huadian up to 1 million tonnes of liquefied natural gas (LNG) per year worth up to £6.5 billion over the next 20 years.
Rolls-Royce announced a deal with HNA Group to provide Trent 700 engines to power 20 Airbus A330s. This includes TotalCare® service support for the engines. Rolls-Royce and HNA Group have also agreed a TotalCare package for a further 9 Trent 700 engines and 15 Trent XWB engines. The total value of the deal is £1.56 billion. The Trent 700 and Trent XWB engines are 2 of Rolls-Royce’s best-selling engines and are assembled in Derby.
Carnival plc has entered into a joint venture with China State Shipbuilding Company and China Investment Corporation to own and operate a fleet of cruise ships to serve the Chinese domestic market, with an investment value of £2.6 billion.
CITIC - The developer behind the transformation of Royal Albert Dock, ABP has announced it is joining forces with CITIC Group. It will cost £1.7 billion to transform Royal Albert Dock into London’s next business district.
Oxford University - China Construction Bank through her subsidiary CCBI to provide capital market assistance of up to £6 billion to help fund regenerative medicine and tissue engineering research after signing a deal with Oxford University
Hualing - Hualing’s investment will unlock 3 major regeneration projects in Leeds, Manchester and Sheffield with a combined Gross Development Value of £1.2 billion.
Alexander Dennis - A £2 billion commitment by 2 of the world’s leading bus manufacturers. BYD is to join forces with British bus builder Alexander Dennis Limited (ADL) to build 200 12 metre single deck emission free buses a year representing turnover of around £660m over the next 10 years. The companies confirmed they are extending their alliance to include double decker buses taking their commitment to £2 billion and will help secure up to 2,100 jobs in the Yorkshire, Scotland and the South East.
Inmarsat has signed a MOU with its long-established Chinese partner China Transport Telecommunication Information Centre (CTTIC) to implement a strategic partnership worth more than £2 billion. This will deliver Inmarsat’s revolutionary fifth generation satellite service, Global Xpress, throughout China and the One Belt One Road region. In addition this will to establish a joint venture to provide aviation passenger connectivity and safety services to Chinese airlines globally.
MoU to establish ‘Garden of Ideas’ – Created by Simon Elliott in collaboration with Sir Tim Smit KBE and the Eden Project: £1 billion.
Sinophi will be building 7 hospitals in China which will generate £800 million.
Sanpower acquisition and expansion of Hamleys. Sanpower will initially invest £100 million plus £100 million over 5 years and create an extra 500 jobs. They will also invest £400 million on taking Hamley’s to China. Total value: £600 million.
BP-ICBCL - As part of its ongoing fleet rejuvenation programme, BP Shipping has entered into a $900 million financing agreement with Industrial and Commercial Bank of China Financial Leasing affiliates (ICBCL) for the purchase and lease-back of 18 oil tankers being built for BP in South Korea. The agreement marks BP’s first such transaction with ICBCL and is BP’s highest value tanker-financing deal to date. Value £550 million.
IHG has signed £204 million deal with China engineering company, a 1,000 bed hospital in a district in central China.
University of York has developed a £200 million TV training programme. Working with China Culture Investment Group (CCIG), the programme will recruit up to 300 students a year from China and other countries and will be delivered in bespoke facilities on the York campus.
Beijing Construction Engineering Group (BCEG) are making a significant equity investment to take a 21% stake in a major regeneration project in Manchester city-centre: £200 million, 600 permanent jobs.
Aston Martin unveiled a £50 million deal with China Equity to develop its zero-emission RapidE sports car.
London Taxi Company owner Geely also announced an additional £50 million investment to enhance their research capabilities and launch a new fleet of zero-emission-capable black cabs.
Full list of deals
| Deal | ££BN/££MN | Jobs |
| BP – agreement to sell Liquid Natural Gas to Huadin over 20 years | £6.5 billion | |
| Hinkley Point C – China to take a 33.5% stake in the power station in a joint venture with EDF | £6 billion | Up to 25,000 jobs (24,100 temporary / 900 permanent) |
| Oxford University – China Construction Bank (through subsidiary CCBI) to help fund regenerative medicine and tissue engineering research with Oxford University | £6 billion | |
| Carnival Plc – Agreement with China State Ship Building Company to build ships | £2.6 billion | 1,600 created, 400 safeguarded |
| Alexander Dennis – joint venture with BYD for 200 electric buses | £2 billion | 2,100 safeguarded |
| Inmarsat – to supply fifth generation satellite to China | £2 billion | |
| Royal Albert Docks – CITIC construction investment to redevelop Royal Albert Docks | £1.7 billion | |
| Rolls-Royce – deal with Hainan Airlines for 20 Trent 700 engines and Total Care Package | £1.56 billion | |
| Hualing – investment into 3 regeneration projects, Manchester, Leeds, Sheffield | £1.2 billion | |
| Garden of ideas – MoU to establish ‘Garden of Ideas’: £1 billion | £1 billion | 200 created |
| Sinophi Hospital – building 7 hospitals | £800 million | |
| Sanpower – acquisition and expansion of Hamleys | £600 million | 500 created |
| BP – ICBCL third party financing BP’s fleet rejuvenation programme. BPs first commercial transaction with ICBL | £550 million | |
| International Hospital Group – hospital build with CREC | £204 million | |
| York University – a TV training programme with China Culture Investment Group | £200 million | |
| BRE (UK) – partnership on green building with Evergrande Group and Tsinghua University | £200 million | |
| Beijing Construction Engineering Group (BCEG) – taking a 21% stake in a major regeneration project in Manchester city-centre | £200 million | 600 created |
| Sanpower – first 3 House of Fraser stores to open in China | £100 million | |
| Future TV and Distrify – Online distribution of film and TV programmes in China and internationally | £85 million | |
| Zhong Project – project to bring FDI to UK for export-oriented UK life sciences | £100 million | |
| NetDragon Websoft inc – purchase of Promethean World plc | £84.8 million | |
| Fosun Group – increased its stake in Thomas Cook | £70 million | |
| Cerno – to distribute medical imaging machines for use by NHS trusts | £58 million | |
| Counton GMS – working with UK private hospitals to provide specialist hospital treatment for Chinese patients in the UK | £57 million | |
| Hainan Airlines – direct flights from Manchester to Beijing | ||
| Geely – additional investment in Coventry | £50 million | |
| Aston Martin – MoU with China Equity to finance the new electric Aston Martin Rapide | £50million | |
| China Dream Space – creation of a 2,000sqm to incubate innovative companies at Canary Wharf | £50 million | |
| Thomas Pink – deal with LongGal to act as a franchise partner for roll out of its stores in China – over 5 years | £33 million | |
| Newton Fund – Promoting UK-China Joint Research Partnership | £20 million | |
| Annie Barr International – deal with TBF to provide training for elderly care workers in China | £16 million | |
| Kings College London – contract with Nanjing Health Bureau to train nurses in Nanjing and Jiansu | £10 million | |
| Phynova – Xiangxue investing in Phynova to develop herbal drugs | £5 million | |
| Shanghai Upper Biotech – working with Microtest to research and develop point of care test technology | £2.4 million | 10 created |
| GlaxoSmithKline – a programme to train 7,000 Chinese medics over three years. | £2 million | |
| Glasgow Caledonian University – a deal with Beijing Health School to train nurses | £1 million |
At the time of publication BP, Cambridge Education Limited, Merlin, Tang Culture Group, Uppingham School, BBC Worldwide could not disclose a figure for specific deals due to commercial sensitivities or commercial confidentiality.