A Win-Win for Britain and China

By+Tim+Collard

President Xi Jinping has returned home after an impressively smooth state visit to the UK. The ceremonial part of the visit was flawlessly conducted—this is one thing that the British do really well—with a state banquet hosted by the queen， meetings with other members of the royal family， traditional gun salutes， and an address to parliament by the Chinese president.

It is clear that the British Government has decided to put its weight behind building a solid relationship with China， and having decided to do so， will not adopt halfmeasures. Of course， observers in both countries and the outside world are speculating on the wider implications of the UKs demonstrated commitment to partnership with China. Analysts in the United States will be particularly concerned. President Xis visit to the United States last month was rather low-key in tone， taking account of the very real differences in approach between the two countries on several global issues. The British side has portrayed relations with China in a much less critical light.

Does this mean a split on China policy between the two Western powers？ I do not believe this is necessarily so—the internal political situation in the United States in a pre-election year is not so conducive to constructive efforts in foreign policy. Britain meanwhile is well-placed to deliver the signal that whatever difficulties the United States is undergoing， the West is not as a whole inimical to Chinas international policies. Hence the British decision earlier this year to sign up to the Asian Infrastructure Investment Bank initiative against a background of American skepticism. Britain led Europe on this issue， and it is unsurprising that she now tries to underpin her leading position.

The strongest underlying link between the two countries is in the field of global finance. These are complicated issues， with considerable risk attached； it is probably not realistic to expect more than initial signals in the immediate term. The two leaders must have spoken of plans to issue renminbi-denominated debt in London， establishing the citys position as the leading financial center for renminbi business outside Asia， and also of opening more links between British and Chinese stock exchanges.

On the commercial side， things can move more quickly， and deals long in the works have now been signed. The centerpiece of the visit was the signing of a deal to build a nuclear power plant at Hinkley Point， in southwest England， in which Chinas leading nuclear power construction company CGN Power Co. Ltd. will work together with French company EDF. China will be responsible for one-third of the project. This is quite a revolutionary development， and has received some criticism from within the UK.

There are some who have never quite reconciled themselves to the safety of nuclear power， and others who fear the concentration of the industry in foreign hands. But the logic of the deal is compelling： Safeguarding the energy supply for future decades is essential， and China has recently demonstrated vast experience in construction and technology. Further business deals that have been announced bring the total value of contracts achieved to roughly 40 billion pounds（$62 billion）.

President Xi must have returned with the conviction that Britain is taking relations with China very seriously. Obvious differences， such as those regarding human rights， have been carefully played down during the visit and its preparation. Promises of increased cooperation across the board have been made and appreciated. The realization of these promises will， of course， be the touchstone for the development of the relationship in the medium and longer term.

So， hopes are high for the inception of a genuine“golden decade” of ties with China. There remain differences of strategic policy and political aims between the two countries， but it is to be hoped that the goodwill generated during this visit will provide sufficient momentum to overcome them. There are great prizes on offer financially， commercially and in terms of the global strategic balance； it is easy to see why Britain should have rolled out “the reddest of red carpets” for the Chinese president， and let us hope that this signals a long future of friendly cooperation.