Cameron Arrives In Beijing For Trade Talks

The Prime Minister will champion a free trade agreement between the EU and China today which could be worth £1.8bn to the UK alone.

David Cameron arrived in Beijing at the head of the largest British trade delegation ever to visit the country, which has become the world's second biggest economy in recent years.

He said he wanted to use the three-day visit to "take the British/Chinese diplomatic and political relationship to a new level".

Speaking to reporters on board his flight to Beijing, Mr Cameron left no doubt that the main purpose of the trip is to put Britain in pole position to expand trade with China.

Mr Cameron visited a Jaguar Land Rover training facility

The European Commission is due to begin investment treaty negotiations with China early next year to reduce some of the barriers to trade.

Mr Cameron will hold talks with premier Li Keqiang and has promised to throw his full political weight behind the agreement which could face stiff resistance from some EU states who fear their markets would be flooded with cheap Chinese imports.

One of the first things on the itinerary was a visit to the Jaguar Land Rover academy in Beijing, where Chinese staff are trained to service and sell the British-designed luxury cars.

Speaking to TV cameras at the plant, Mr Cameron denied he was steering clear of speaking about human rights in order to avoid offending his Chinese hosts.

"Not at all," said Mr Cameron. "We have a very strong and full relationship between Britain and China and that includes a human rights dialogue.

Mr Cameron with the delegation at Heathrow Airport

"We are one of the few countries to have that relationship with China."

Writing in Chinese magazine Caixin, Mr Cameron declared his ambition to use this week's visit to help forge "a partnership for growth and reform that can help to deliver the Chinese dream and long-term prosperity for Britain too."

He welcomed signals from last month's crucial Third Plenum of the ruling Communist Party that China is ready to open up further to the rest of the world under the leadership of President Xi Jinping, who took up office a year ago.

He added that he wanted to send the message that "an open Britain is the ideal partner for an opening China".

"Britain is uniquely placed to make the case for deepening the European Union's trade and investment relationship with China," said Mr Cameron.

"Building on the recent launch of EU-China negotiations on investment, and on China's continued commitment to economic reform, I now want to set a new long-term goal of an ambitious and comprehensive EU-China Free Trade Agreement.

"And as I have on the EU-US deal, so I will put my full political weight behind such a deal which could be worth tens of billions of dollars every year."

The PM, who raised the possibility of a free-trade deal at talks with EU partners in Lithuania last week, believes that eliminating tariffs in the 20 sectors where they are highest - such as vehicles, pharmaceuticals and electrical goods - could save UK exporters £600m a year.

Mr Cameron wants to improve his relationship with Mr Keqiang

Jaguar Land Rover is signing a £4.5bn agreement to provide 100,000 cars to the National Sales Company in China over the next year.

The company's chief executive Ralf Speth was among the 120-strong business delegation accompanying Mr Cameron, along with executives from major exporters like Rolls-Royce, BP, Royal Dutch Shell, Barclays, HSBC, GlaxoSmithKline, Arup and Virgin.

But the bulk of the delegation was made up of smaller businesses, such as Westaway Sausages of Devon, Moulton bicycles and the Cambridge Satchel Company, which Mr Cameron believes have considerable opportunities in the fast-expanding consumer markets of China.

Also travelling with the Prime Minister were representatives of British football, including Premier League chief executive Richard Scudamore, former England and Chelsea star Graeme Le Saux and West Ham United vice-chair Karren Brady.

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