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Pin to quick picksLloyds Share News (LLOY)

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UPDATE 2-Gas and currency deals cap Chinese premier's first UK visit

Tue, 17th Jun 2014 20:02

* Trip is Li's first to UK since taking office

* UK's Cameron announces deals worth more than 14 bln pounds

* China keen to put rights row behind it

* Trade deals focus on energy, finance sectors (Adds details, comments from Li on currency deals)

By William James and Kylie MacLellan

LONDON, June 17 (Reuters) - Britain and China signed dealsworth more than 14 billion pounds ($23.5 billion) on Tuesdayduring a visit by Chinese Premier Li Keqiang, with energy andfinance dominating the trade agenda.

In a trip aimed at deepening commercial ties between theworld's second-largest economy and Europe's financial capitaland moving past a row over Tibet, Li met Queen Elizabeth andheld talks with Prime Minister David Cameron.

Cameron said the rise of China was "one of the definingevents of our century" and that Britain wanted to strengthenties on every level, from business to cultural understanding.

"Today we have signed deals worth more than 14 billionpounds, securing jobs and long-term economic growth for theBritish and Chinese people," Cameron told a news conference.

Li, on his first official trip to Britain since takingoffice, said the two countries had extensive shared interests.

"China is ready to work with the UK to foster a partnershipfor growth and inclusive development to ensure that thisrelationship will grow faster and in a healthier way," he said.

Oil major BP signed a 20-year deal worth around $20billion to supply China National Offshore Oil Corporation(CNOOC) with liquefied natural gas (LNG) cargoes, BP ChiefExecutive Bob Dudley said at a conference in Moscow.

"It is a fair price for them and a fair price for us. It isa good bridge between the UK and China in terms of trade,"Dudley said.

Shell also announced that it had signed anagreement with CNOOC strengthening its existing strategic ties.

OFFSHORE TRADING

The London Stock Exchange said it had signedagreements with two of China's biggest banks to develop offshoretrading in the Chinese currency, the yuan (RMB).

London, which dominates the $5-trillion-a-day global foreignexchange market, is seeking to fend off challenges to itsposition as the leading yuan centre in Europe.

Li hailed a deal to make China Construction Bank (CCB), the country's second-largest lender, the firstclearing service for offshore trading of the yuan in London.

"It will further consolidate and promote London's status asan international financial hub and will help the gradual internationalisation of the RMB to promote trade and investmentliberalisation and facilitation," Li said at a speech tobusiness delegates.

China views Britain, the world's sixth largest economy andhome to the only financial capital to rival New York, asEurope's most open place to do business.

With Chinese firms keen to invest in major nuclear andhigh-speed rail projects, the two governments also agreed aframework to collaborate more closely on nuclear supply chaindevelopment and signed a memorandum of understanding paving theway for more cooperation on railway design and construction.

The state-owned China Development Bank Corporation (CDB),which finances government-led infrastructure projects and islooking to expand its overseas investments, signed a deal tobuild closer ties with TheCityUK, which represents Britain'sfinancial industry.

Lloyds Banking Group also signed a memorandum ofunderstanding with CDB to help secure inward investment fromChina, with a focus on energy and infrastructure.

PAST DIFFERENCES

China, whose $9 trillion economy is over three times thesize of Britain's, wants to use the visit to move pastdifferences with London over Tibet.

Britain's relations with China took a nosedive in 2012 afterCameron met the Dalai Lama, the Tibetan spiritual leader whoBeijing says is a separatist. Ties have recovered somewhatsince, and Cameron visited China last year.

But tensions remain.

China has ruled Tibet since 1950, and Beijing warned Londonon the eve of Li's visit not to lecture it on the subject if itwanted good economic ties. British Deputy PrimeMinister Nick Clegg said on Monday that the people of China werepolitically shackled to a Communist one-party state.

Asked about Clegg's comments, Li said that China'sconstitution required human rights to be respected, and that thecountry was choosing its own path on the issue.

"There are diverse dimensions to the issue of human rights,and countries which are at different stages of development, andwith different historical and cultural backgrounds may see thisissue of human rights from different perspectives," he said.

During the trip, which finishes on Wednesday, investors willbe looking for any signals that Li, number two in the rulingCommunist party, may send about the future of Asia's largesteconomy in two speeches he is due to give before leaving. ($1 = 0.5956 British Pounds) (Writing by Guy Faulconbridge and Andrew Osborn; Additionalreporting by Ben Blanchard and Aizhu Chen in Beijing,; SaikatChatterjee in Hong Kong, Vladimir Soldatkin in Moscow,; OlegVukmanovic in Milan and Nina Chestney in London; Editing by MarkTrevelyan and Sonya Hepinstall)

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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