With the British economy going from strength to strength in the aftermath of four years of recession, international firms and growth funds are keen to have their slice of the pie by investing keenly in the country’s infrastructure. This is particularly true of growing economies such as China, which is involved in a number of different projects around the UK designed to grow both regional economies and British finances overall.
Now, Chancellor George Osborne has confirmed that a Chinese company will play a major part in an £800 million investment going towards Manchester Airport Group’s Airport City scheme. The Beijing Construction Engineering Group (BCEG) will work in partnership with Manchester Airport Group, Carillion Plc and the Greater Manchester Pension Fund in order to optimise the offerings of the Airport City site and thereby assist both employment and the economy within the Greater Manchester area.
Mr Osborne believes this latest investment is proof of a growing bond between the UK and the Asian nation.
He says; “I think it shows that our economic plan of doing more business with China and also making sure more economic activity in Britain happens outside the City of London is working.
“That’s good for Britain and good for British people.”
At present, Britain is one of the top 10 international destinations for Chinese investment, with the majority of funding concentrated on the energy sector. However, private firms such as Thames Water, Barclays Bank and Diageo have also benefited from an increased interest in their operations, leading to profitable deals being struck with Chinese firms.
Commercial property growth has become another key area of interest for Chinese investors, with developers ABP currently implementing a £1 billion project with the aim of regenerating the Royal Albert Dock. A further £500 million investment has been injected by the ZhongRong Group in the past month to aid in the rebuilding of The Crystal Palace in south London.
BCEG’s involvement in Airport City may not simply benefit the UK, however – it may prove to be a wise move for China itself. As a growing economy, China is keen to forge strong trade links with other countries, and Britain’s luxury goods manufacturers have proven particularly popular with a growing middle class.
Managing director of BCEG, Mr Xing Yan, says; “To be included in such an interesting and unique development is a real honour.
“We see our involvement in Airport City as an extension of the memorandum of understanding between China and the UK, where we have been looking to further explore joint infrastructure opportunities for some time.”
With Chinese investment fast becoming a key driver of growth for the UK, BCEG’s interest in Airport City could yield great results for the Greater Manchester economy. However, the question is whether the development would truly benefit more from the array of hotels, retail units and business centres soon to spring up, or additional runway capacity that the UK desperately needs.
Do you think part of the Airport City venture should be an increase in runway and terminal capacity in order to drive international trade and growth?
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