Chinese sign £1.4bn trade deal with UK

Britain and China yesterday unveiled trade deals worth £1.4 billion during a visit to London by Chinese premier Wen Jiabao.

Gas company BG Group has signed a co-operation agreement with Bank of China that will allow it to access up to $1.5bn (937 million) of funding to support its growth plans.

Drinks giant Diageo also announced that Chinese regulators have approved its acquisition of a further 4 per cent stake in Chinese joint venture Sichuan Chengdu Quanxing for around 13m, which will take its stake to 53 per cent.

Prime Minister David Cameron said: "I'm delighted that today's summit has seen new deals signed worth another 1.4bn. This includes BG's memorandum of understanding with the Bank of China."

He also welcomed Wen's commitment to rebalancing China's economy by stimulating domestic demand and reducing its foreign trade surplus. However, both parties made it clear that they did not see completely eye-to-eye on human rights and the Libya conflict.