UK's Northern Powerhouse tries to lure China investment

A Chinese delegation of banking and other business heads descended on a major economic and infrastructure conference in Manchester that hopes to attract Chinese money to development projects in the north of England.

On a typically drizzly day in the northern city earlier this week, hundreds of British businesses people convened for the second annual UK Northern Powerhouse International Conference and Exhibition.

The Northern Powerhouse was started by the previous Conservative government aimed at boosting the economy and transport links in the north. The UK government has made no secret that Chinese investment is central to its plans for the region. In November, Chancellor Philip Hammond offered Chinese investors a portfolio of 13 projects in the north worth 5 billion pounds ($6.2 billion).

Jin Xu, minister counselor of the economic and commercial office of the Chinese embassy in London, led the Chinese delegation that included members from the China-Britain Business Council, the China Council for the Promotion of International Trade and the China Chamber of Commerce UK.

Jin said: "The Northern Powerhouse has attached great importance to Chinese investment. Already, the Beijing Construction Engineering Group invested in Manchester Airport. That was a really big project. We also have a lot of equipment in Liverpool harbor from China Shenhua, the largest port facilities producer in China."

In 2013, the Beijing Construction Engineering Group said it would invest 800 million pounds into the expansion project at Manchester airport. Last year, BCEG was appointed as the preferred contractor for the 700 million pound Middlewood Locks rented home construction project in Salford.

Jin added: "Chinese investors are looking into infrastructure, healthcare, innovation, education, tourism, and, of course, real estate－prices are much lower in the north than in the London area."

He was with representatives from a number of Chinese banks, including the China Development Bank, Bank of China, China Construction Bank, and the Industrial and Commercial Bank of China.

Jin said: "They already have branches in London, and I think this is just the beginning. The banks are interested in having discussions with businesses, and some of them, such as the Bank of China, already have branches in Manchester."

May Liu, international projects director at the China-UK Business Centre (Northwest), said there was a noticeable increase in Chinese interest at this year's conference.

Liu said: "The northern region was previously not that well-known in China. That's changing. Today, we were approached by several businesses who visited our stall and asked about investment opportunities."

Huang Qianyi, project manager for Tianjin-based Zhengxin Group, which invests in finance and technology, was at the conference looking to further ties in the north. Last year, Zhengxin Group signed a memorandum of understanding with Liverpool-based technical innovation center Sensor City to support early stage sensor-related technology companies.