News story

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.