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Business / Economy

Britain counts on China's infrastructure prowess for economic revival

(Xinhua) Updated: 2015-10-19 09:40

BEIJING - Over the past years, the economic relationship between China and Britain has gone from strength to strength. The momentum will continue as the world's two major countries vow to beef up cooperation in infrastructure so as to forge "golden age" of bilateral ties.

Upon Chinese President Xi Jinping's upcoming Britain visit, George Osborne, British finance minister, announced at the Conservative annual conference in October that the government will concentrate on infrastructure projects such as rail links and power stations in the following years.

While China's acknowledged prowess in infrastructure fits the bill, and the cooperation between the two sides will undoubtedly become a new highlight in bilateral relations.

China, as game-changer

Currently, Britain's infrastructure is in bad need of repair and construction. The nation needs to build new roads, runways and railways, increase airport capacity and secure energy supply.

Meanwhile, the British government has worked out the "Northern Powerhouse," a proposal to boost economic growth in the North of England, which involves improvement to transport links, investment in science and innovation.

The government described the improvement of infrastructure as the driver of its economic growth. While after decades of progressive development, Chinese enterprises have become an important global force in the field of international infrastructure investment and construction.

"Chinese enterprises have acquired key capabilities and a track-record in airports, railways, water treatment, offshore wind power, nuclear power plant and other projects," said a recent report launched by Pinsent Masons, a full-service international law firm based in London.

Within the infrastructure and real estate sectors, Chinese and British enterprises are capable of complementing one another, it added.

"I think the next most visible things would be Chinese investment in British infrastructure" such as nuclear industry and high speed rail system, said Gerry Grimstone, chairman of Standard Life, one of the biggest British insurance group.

Actually, the two countries have already set good examples in infrastructure cooperation with Chinese companies expanding their participation in Britain's infrastructure projects.

In 2013, Britain announced that the Beijing Construction Engineering Group would participate in the expansion of the Manchester Airport, the third busiest in the country in terms of passenger numbers.

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