Osborne to Say UK Should Grow Closer to China, Not Run Away

Chancellor of the Exchequer George Osborne is seeking to strengthen Britain’s ties with China as he underlines the country’s value as an investment partner in spite of the market shocks of recent months. “Whatever the headlines, regardless of the challenges, we shouldn’t be running away from China,” he will say in a speech at the Shanghai Stock Exchange on Tuesday, according to prepared remarks released by the Treasury in London. “Let’s stick together to grow our economies.” Osborne is heading a delegation of UK ministers and business leaders on a trip to China that includes visits to Shanghai, Beijing and Chengdu, as he seeks to foster closer economic ties between both countries. The chancellor announced Monday that the UK government will provide a guarantee of $3 billion (AED 11bn) for the construction of a new nuclear plant in southwest England in which Chinese companies are involved. Officials will also study the feasibility of setting up a London-Shanghai stock trading link and China’s central bank will issue short-term yuan-denominated bonds in the UK for the first time. Concerns about a slowdown in Chinese growth caused an international market sell-off in August. While Osborne said at the time that Britain was vulnerable to the turmoil, he will tell his audience Tuesday that he sees the opportunity for China and the UK to create “a golden decade.” (Svenja O’Donnell/Bloomberg)