The U.K. continues to be a favored investment destination by Chinese investors in Europe, despite Brexit and the rise of Prime Minister Theresa May. Such benefits China, as it looks to mellow down in the U.S., where President Donald Trump and his firebrand anti-China rhetoric now rules.
Around $38 billion worth of investments and contracts from Chinese firms have been shored up in the U.K. for the past 10 years, per the American Enterprise Institute's China Global Investment tracker reported by China Daily.
Yet, Chinese President Xi Jinping's meeting with then-Prime Minister David Cameron in 2015 further inspired a wave of Chinese investments in the U.K. That has made China second in terms of the number of investment projects it has on British soil, with 156 as against the U.S.' 570.
Current U.K. Prime Minister Theresa May has also affirmed British commitment to its ties with China, having given away pleasantries as well as meeting Xi in private during last year's G-20 summit. That has dispelled doubts on the continuity of China U.K. relations' "Golden Age."
Economic diplomacy between both countries reached greater heights when the China-U.K. rail line was put into operation, per Yibada. As part of the "New Silk Road" network, which aims to traverse through the Asia-Europe economic corridor, the line aims to ease freight journeys between China and the U.K.
Chinese companies are purchasing more stakes in British firms, among the most significant being China General Nuclear's 30 percent (£6 billion) stake in the Hinkley Point C nuclear power project, and 61 percent of the National Grid's network of gas pipes purchased by investors led by China Investment Corporation.
The depreciation of the pound, stability in rule of law and regulations, and connectivity are just some of the best assets that make the U.S. favorable to Chinese investors. That comes as a timely cushion to anticipated decreases in Chinese investments in the U.S. this year, given Trump's criticism of China.