Chinese and UK companies sign billion-dollar trade deals

British companies BP, Shell, Kingfisher and B&Q (China) have today announced their new joint ventures in China with a total value of over US$1.5 billion.

Trade Secretary Patricia Hewitt and Chinese Minister of Commerce Bo Xilai officiated at the contract signing ceremony organised by UK Trade & Investment - the government organisation that supports UK companies in overseas business.

China is one of the fastest growing economies in the world, and there are now around 3,000 British joint ventures in China with BP, Shell and B&Q (China) amongst the biggest UK players.

Ms Hewitt said: "I am delighted to witness this signing ceremony with Minister Bo, following our fruitful meeting this morning. When I was in China in January, I was struck by the dynamism of the place, and the eagerness to do business with the UK - something I think British firms can capitalise on. I wish all the best to these UK companies and their Chinese counterparts.

"This is an excellent example of the increasingly close relationship between the two countries. I am glad to see the continuing consistent growth in the Chinese economy and China's progress in fulfilling its WTO commitments."

UK Trade & Investment has provided support to BP, Shell and B&Q (China) to develop their business in China. The ongoing support has come from the British Embassy and Consulates in China in the form of political lobbying, networking opportunities and regular consultation.

The contracts involved include: a US$577 million contract between BP and PetroChina to develop retail petrol stations project in Guangdong Province; a US$200 million contract between Shell and Sinopec to develop the Jiangsu Province retail petrol stations project; and a US$75 million strategic purchase frame agreement between Kingfisher, B&Q (China) and Midea Group.

(gmcg)