18.06.14
UK and China sign key rail agreement
The UK government has signed a Memorandum of Understanding (MoU) with its Chinese counterpart committing the two countries to expand “business co-operation in the rail sector”.
The MoU, which covers all modes of rail, including high speed - states the scope of the partnership may include, the development of new build and upgrading rail infrastructure projects; the supply of products and services to third markets; and collaboration on research and development within the rail sector.
It has also been suggested that the two countries could work together on station design, equipment supply, rail transport safety and evaluation, and energy saving and environmental protection in rail.
The transport secretary Patrick McLoughlin signed the MoU on behalf of the UK government with Xu Shaoshi, chairman of the National Development and Reform Committee (NDRC), signing for the Chinese.
McLoughlin said: “I can see great mutual benefit to be gained from increased co-operation between the UK and China on rail. The railways are a massive success story in both countries and we can boast world class expertise across the sector.
“The government’s long term economic plan is working, and Britain is on the rise. But the job is not done. The success stories of the future will be economies that invest in infrastructure and welcome overseas involvement and we want this partnership to be a win-win situation creating economic growth and jobs here and abroad, including in China.”
In addition to this MoU, China has signalled its interest in investing in two of Britain’s biggest infrastructure projects – High Speed 2 and new nuclear power stations – at trade talks led by David Cameron and Chinese premier, Li Keqiang, in London.
It is likely a direct investment in HS2 and new nuclear would be made through the China Development Bank Corporation, which is responsible for funding large-scale projects on behalf of China. The news comes as the bank signed a MoU with TheCityUK to “expand its financing and lending activity in the UK, including in infrastructure-related investment”.
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