A Singapore press holdings portal

Asia, World

Jonathan Eyal
Saturday, Jun 21, 2014

Asia, World

Chinese Premier's London visit yields deals worth $30b

The Straits Times | Jonathan Eyal | Saturday, Jun 21, 2014

Chinese Premier Li Keqiang speaking as British Prime Minister David Cameron looks on during a joint press conference in London on Tuesday. Mr Li was hosted to tea by the Queen during his visit.

Britain and China have concluded a total of £14 billion (S$29.8 billion) worth of new trade deals at the end of Chinese Premier Li Keqiang's three-day visit to London.

"Ours is truly a partnership for growth, reform and innovation," a visibly satisfied British Prime Minister David Cameron said yesterday, at the end of talks which also included discussion on simplifying business visa procedures.

But although Mr Li was treated with great deference by his British hosts, the impression remains that China continues to treat Britain as a country on "probation", a nation which still has to prove its friendship to Beijing.

The visit by China's second most senior political figure followed a Beijing trip by Mr Cameron last December and marks the end to an 18-month diplomatic freeze imposed by China following a 2012 meeting between Mr Cameron and the Dalai Lama, the exiled Tibetan leader.

Tensions are not completely dispelled, however.

In March this year, China abruptly cancelled a scheduled meeting between the two nations after Britain's Foreign Office released a document criticising Beijing's alleged human rights record.

More significantly, Chinese diplomats imposed the precondition that Mr Li would undertake the trip only if he could be assured of an audience with Queen Elizabeth II, an honour which only visiting heads of state can expect.

Acceding to this demand was a logistical nightmare as it entailed Mr Li devoting the better part of half a day of his busy schedule to travel to Windsor Castle outside London where the monarch now lives for what was, effectively, just a handshake and a cup of tea.

However, this allowed the Chinese to make the subtle point that their country is now powerful enough to dictate the level of protocol accorded to its leaders.

Still, the British are ready to put up with such awkward protocol demands because they currently lead Europe in expanding business with China.

"As China reaches the stage of development," said Finance Minister George Osborne, "some of the things the UK is particularly strong at, like banking, like insurance, are going to be in greater Chinese demand."

Mr Osborne's gambit to attract Chinese business is paying off: Almost two-thirds of the world's offshore trading in the Chinese currency is now transacted through London.

No comments yet.
Be the first to post comment.