China buys up Britain as politics takes a back seat

Daily Telegraph ^ | 10/14/2013 | Jonathan Fenby

[TexGrill]

Ever since China emerged as the world’s rising economic power, Western governments have been wrestling with how to approach the last major state on earth still ruled by a Communist party. George Osborne and Boris Johnson, visiting the People’s Republic this week, have demonstrated their answer: forget about political issues, let alone human rights, and go for the money. By all means, is their clear message, increase your already extensive investments in our country.

It is an approach that Beijing is very much in favour of, and the Osborne-Johnson trip has been crammed with smiling photo opportunities and expressions of goodwill – including Britain’s pledge of relaxed visa regulations for business visitors and tourists and a warm welcome for yet more Chinese students in London. In return, a flood of investment in Britain is promised – most welcome to a Government intent on ramping up growth.

Infrastructure and property head the shopping list, with the state-owned Commercial Bank (ICBC) due to put £650 million into a 150-acre business district at Manchester airport, which should generate 16,000 jobs over 15 years. But this is only the latest in a string of big development deals. The Ping An Insurance Group bought the Lloyd’s building in London this summer for £260 million, while the Beijing property developer Advanced Business Park recently signed a £1 billion deal to develop the Royal Albert Dock. The giant Wanda property group has acquired the former Nine Elms site on the River Thames in Wandsworth for £700 million, and plans a 660ft tower of luxury apartments, a 530ft five-star hotel, and a set of skyscrapers along the South Bank.

[TexGrill]

Global business tip

[politicket]

China is buying up Great Britain in an effort to keep Western Europe from a deflationary depression. If it hits then China’s goose is cooked.