Boris Johnson unveils plan for £1bn Chinese business district Boris Johnson, the Mayor of London, has unveiled a £1bn project to turn the capital’s docklands into a Chinese business district, creating 20,000 jobs and strengthening UK ties with one of the world’s largest economies.
An artist's impression of the £1bn development at Royal Albert Docks Photo: Jason Hawkes
The 35-acre site at Royal Albert Docks will be transformed by ABP China Holding Group into a “gateway” for Asian businesses “seeking to establish headquarters in Europe”, Greater London Authority (GLA) said on Wednesday. GLA estimates that the new project will be worth £6bn to the UK, generating £23m in business rates every year. This will be paid by “financial, hi-tech and knowledgedriven” companies, including some of China’s leading banks. The first businesses are expected to move onto the site in 2017. “Creating a third financial district in the capital, this development will act as a beacon for Eastern investors looking west, bringing with it tens of thousands of jobs and billions of pounds of investment for the UK economy,” said Mr Johnson. This will be ABP’s first development in Europe but it has undertaken big projects in Beijing (15m square feet) and Shenyang (75m sq ft).
ABP chairman Xu Weiping believes the development will be “hugely significant for both the Chinese and UK economies. My vision is to develop a world class international business district,” he said. The deal comes at a key time for the UK, as David Cameron attempts to heal a rift with China after the Prime Minister met the Dalai Lama last year. In an interview with Time magazine last week, Mr Cameron said he wants the UK to be “the destination for Chinese investment”. “I’m proud [that Chinese companies own UK assets]. I think it’s absolutely great. We want to be the destination for Chinese investment, tell the other Chinese investors, ‘Come to London, spend your money’,” he added. The Royal Albert Dock will link up with the Crossrail scheme when a new station opens at the site in 2018.
http://www.telegraph.co.uk/finance/china-business/10087727/Boris-Johnson-unveilsplan-for-1bn-Chinese-business-district.html
Mayor Watch, online 15 October 2013
Mayor welcomes news of 10 new tenants for Royal Albert Docks OCTOBER 15, 2013 BY MARTIN HOSCIK
ABP is redeveloping the Royal Albert Dock into a hub for Asian businesses. Mayor Boris Johnson has welcomed pledges from ten Chinese businesses to move to London’s Royal Albert Docks. The Docks are to be transformed by Chinese developers ABP into a gateway for Asian and Chinese businesses seeking to do business with the UK and Europe. When completed the development will include more than 2.5 million square feet of office space, plus retail and leisure facilities and, from 2018, direct access to Crossrail. The ten new pledges, which include electrical manufacturers, commercial real-estate and fashion and textiles firms, take the number of firms committed to moving to the new business park to 57.
Together they’re expected to account for around 600,000 sq ft of the development. The Mayor is currently in China where he is leading a six day trade mission and on Tuesday met with ABP Chairman Mr Xu Weiping in Beijing. CIty Hall says the pair discussed plans to work with the UK government to revamp Enterprise Zone business incentives for the Royal Docks. Mayor Johnson, said: “My vision is to develop a world class international business district, creating local jobs and growth and strengthening trade between east and west. Today, as we welcome the commitment of 10 businesses to the Asian Business Park, we are another step closer to achieving this.” Mr Xu Weiping has announced plans to host a “unique” trade event to link suppliers and buyers from Britain and China at London’s Excel Centre next summer. Several hundred Chinese businesses will be invited to demonstrate their products in a workshop style environment. Already popular in China this would be a first event of its kind and scale in London. Chairman of ABP, Mr Xu Weiping, said: “I am delighted to welcome the Mayor of London to China. We have worked closely together to make the £1bn Royal Albert Dock development a reality. Following discussions in London a month ago and the announcement of our new Global Headquarters, I am very pleased the Mayor is in Beijing to meet businesses here and encourage them to make their home in the Royal Docks.”
Source
http://www.london.gov.uk/media/mayor-press-releases/2013/10/mayor-welcomes-10chinese-businesses-as-they-sign-up-to-london-s
London Mayor Boris Johnson on trade visit to China
The mayor of London is in China in a bid to promote the capital's trade with the country. Boris Johnson will meet political leaders and business chiefs during his six-day visit. He will also share a platform with Chancellor George Osborne at Peking University. Mr Johnson said: "China's recent economic growth is nothing short of staggering and the opportunities that this presents for London are huge." Chinese firms have recently made big investments in the city.
'Vital trading city' Earlier this year, developer ABP announced a ÂŁ1bn deal to redevelop the Royal Albert Dock in east London and this month the ZhongRong Group said it would be investing ÂŁ500m to rebuild The Crystal Palace in south London. Last year 104,000 Chinese tourists visited London, according to the office of the Mayor of London. That is up 28% from 2011 and up 100% since 2009. Mr Johnson said: "As China moves on to its next stage of development there's massive potential for London businesses to export their expertise and to set up shop in this economic powerhouse. "We are a city that is open for business and, with 33 opportunity areas dotted around the capital, there is enormous scope for Chinese investors to get involved, helping to create jobs and growth in the process."
John Biggs, from the Labour Group on the London Assembly, said it was an "excellent idea" to build ties with potential markets as London is a "vital trading city". But he added: "When Boris first came in as mayor he closed offices in Beijing and Mumbai claiming they were a waste of money. "We welcome his conversion but he should have seen the potential of these foreign markets in the first place." Source: http://www.bbc.co.uk/news/uk-england-london-24507412
BBC News, online 13 October 2013
13 October 2013 Last updated at 12:58
Manchester Airport to receive investment from China
George Osborne: "I see China as a great opportunity, not a threat"
A Chinese company will be part of a group investing ÂŁ800m in Manchester Airport to develop its surrounding business. The news was announced as Chancellor George Osborne started a trip to China to promote UK business and encourage Chinese investors to consider the UK. The move showed a government plan to do more business with the fast-growing economy was working, Mr Osborne said. London Mayor Boris Johnson is also on a separate six-day visit to China. He will meet political leaders and business chiefs in an effort to promote the capital's trade with the country. Manchester Airport Group will work with the Beijing Construction Engineering Group (BCEG) as well as the UK's Carillion Plc and the Greater Manchester Pension Fund to develop the 'Airport City' project. The development surrounding Britain's third busiest airport will include offices, hotels, manufacturing firms, logistics and warehouses. It is hoped that by attracting international businesses some 16,000 jobs could be created. "I think it shows that our economic plan of doing more business with China and also making sure more economic activity in Britain happens outside the City of London is working," said Mr Osborne.
"That's good for Britain and good for British people," he added. It's why re-balancing the economy and re-industrialisation are easier said than done.”
Linda Yueh Chief business correspondent
Mr Xing Yan, managing director of BCEG said "To be included in such an interesting and unique development is a real honour. "We see our involvement in Airport City as an extension of the memorandum of understanding between China and the UK, where we have been looking to further explore joint infrastructure opportunities for some time."
'Huge opportunities' During his trip Mr Osborne will visit Beijing and southern China. Britain is one of the top 10 nations to attract Chinese investment - more than double the investment of any other nation in Europe. Chinese investment is concentrated in the UK energy sector, although Barclays Bank, BP, Diageo and Thames Water also have Chinese backing. Some UK companies are also controlled by Chinese groups - Bright Foods owns a 60% stake in Weetabix, the Wanda conglomerate owns 92% of Sunseeker boats and Geely Automobile owns Manganese Bronze, the company that makes London taxis. Chinese firms have also recently made big investments in London. Earlier this year, developer ABP announced a £1bn deal to redevelop the Royal Albert Dock in east London and this month the ZhongRong Group said it would be investing £500m to rebuild The Crystal Palace in south London.
London Mayor Boris Johnson showing his musical abilities on his tour of China
On Saturday, Mr Johnson said China's recent economic growth was "nothing short of staggering" and the opportunities that presented for London were "huge". Last year 104,000 Chinese tourists visited London, according to the office of the Mayor of London. That is up 28% from 2011 and up 100% since 2009. However business leaders have called for the visa application process for Chinese tourists to be simplified. Currently, visitors can apply for a single visa to visit much of Europe - but a separate one is required to travel to the UK, leading to fears many are travelling to other European countries instead.
Nuclear deal BBC correspondent John Sudworth, at Beijing Airport, said the two separate but simultaneous visits by UK politicians are being seen as a sign of a diplomatic thaw following an 18-month long chill in relations. "China made no secret of its displeasure after UK Prime Minister David Cameron met the exiled spiritual leader of Tibet, the Dalai Lama, in London last year," he said. Our correspondent said the trade missions were also a sign of the growing importance of China to the UK economy. Both Mr Osborne and Mr Johnson are travelling with delegations of British businessmen, and the chancellor is also expected to announce details of planned Chinese investment in a British nuclear power plant.
Financial Times, page 2 16 October 2013
Evening Standard, pages 6 and 7 14 October 2013
Evening Standard, online 15 October 2013
The Boris in China diaries: almost ignored at the usual tourist traps, the Mayor proves a big draw with Beijing's movers and shakers Our City Hall Editor Pippa Crerar follows the Mayor of London on his six-day trade mission to the Far East
Seeing the sights: Boris takes a peculiar side glance at his tour guide
PIPPA CRERAR, CITY HALL EDITOR
Published: 15 October 2013 Updated: 16:28, 15 October 2013
Day Three: Tuesday 10am The sun came out for the first time since we arrived in Beijing, cutting through the interminable smog. A few sore heads among the press pack this morning after a late night stint in the hotel bar, so they were relieved to have an excuse to wear dark glasses. It’s another day and another photo opportunity so we’re off to the Forbidden City. But the hangovers were forgotten as we entered the spectacular 500-year-old complex, which served as the home of emperors and their households as well as the ceremonial and political centre of the Chinese government.
Baitou: the Mayor already has his own nickname in Beijing
Boris and the trade delegation made their way through the shrines, courtyards and pagodas of the City at quite a pace. The Mayor, who has been before, pointed out to some of the businessmen that there was not one tall building visible above the skyline, despite the fact Beijing is a city of skyscrapers. “Isn’t that good planning,” said Boris, before turning to Berkeley Homes boss Tony Pidgeley on spotting one lone tower to say: “Don’t worry Tony, there’s a tall building.” Sir Ed Lister, Boris’s planning chief, corrected him: “That’s not a tall building, that’s a large building.” Explains much about the towers springing up on London’s horizon. The crowds of Chinese tourists thronging through the complex didn’t pay Boris much attention, beyond a few curious glances at the accompanying photographers. One snapper admitted later that he mistook an old Chinese woman for the Mayor, with his shock of white-blond hair. A local guide confided that he already has a nickname in Beijing – baitou – which means white head or old age. The American and European tourists recognised him however, and we overheard more than one mention of the zipwire. Boris resisted appeals to put on a panda hat that was being worn by some British girls. “No pandas,” scolded an aide. We suggested that an Imperial emperor’s hat, as worn by one of the guides in the complex, might be more fitting. “Yeah, yeah, yeah,” the Mayor muttered, before wandering off.
1pm Some frustration among the press pack back at the hotel when it turned out that the Chinese Ministry of Foreign Affairs had decided not to give us accreditation for the Chancellor’s own press conference. Living up to the stereotype of the restrictive communist state, they even turned down requests from the British Embassy, saying only locally based journalists could get in. So the journalists busied themselves elsewhere, while one of the Mayor’s press officers set off to retrieve a Boris bike from an absent colleague’s room. After persuading reception staff to give him the key he burst into the bedroom, only to find a startled BBC London political editor Tim Donovan. Thankfully he was merely tucking into a Thai curry off the room service menu. As the press officer swiftly retreated, Donovan remarked “That was like an episode of Spooks,” before returning to his meal.
2pm It was finally time to abandon the car and check out Beijing’s metro system, the third biggest in the world, though for some unfathomable reason we drove there. We walked down the steps of Xidane station on the number one line, ready to head five stops down to Gongzhufen. It was reminiscent of home as we all piled into the carriage before the doors shut, and I found myself squashed between Will “this takes press co-operation to a whole new level” Walden, the mayor’s director of communications, and Olympic cauldron designer, Thomas Heatherwick, who had just joined the delegation. I had hoped to interview him but hadn’t planned on it being quite so close up and personal.
Commuter: the Mayor takes a ride on the Beijing Metro
Further down the carriage the Mayor looked a little uncomfortable, but the rest of us were quite enjoying ourselves. Sir Michael Hintze, who regularly uses the Northern line at home
despite his vast wealth, spotted a woman with a young child and shouted out: “Hold the baby, Boris!”
5pm After the ride on the Tube, where we were also joined by Sainsbury’s boss Justin King, suffering after just having had a wisdom tooth removed, we had a long wait while Boris held more meetings. Finally the Mayor arrived at the Maya Hotel, where developer ABP, the company behind the £1 billion Royal Docks scheme, really pushed the boat out for dinner. Even by Chinese standards, it was a big bash. Boris arrived to flashing lights, music and applause – it was the closest he’s come to looking abashed. The top table alone seated 30 people and the room was packed with Chinese business types and media.
In his element: Boris's jokes went down well at the ABP dinner
It was not clear whether the Mayor had realised he was expected to preside over an awards ceremony, but his jokes about “eunuchs and concubines” at the Imperial city earlier in the day went down well. As the speeches rumbled on and on, it was one event the press was quite happy to leave Boris to cope with on his own, and possibly one that he wouldn’t have minded joining us as we headed towards the exit.
Evening Standard, page 2 11 October 2013
Evening Standard, page 21 18 October 2013
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Financial Times, page 2 14 October 2013
Financial Times, page 4 07 October 2013
Estates Gazette, online 15 October 2013
The Economic Voice, online 15 October 2013
Mayor Welcomes 10 Chinese Businesses for London’s £1bn Royal Docks Project October 15th, 2013
Author: Economic Voice Staff The Mayor, Boris Johnson, has today welcomed pledges from ten Chinese businesses who have committed to office space in the much anticipated £1bn Asian Business Port development in London’s Royal Albert Dock. This takes the number of firms currently set to move into the new business park to 57, and is expected to account for around 600,000 sq ft of the development. The latest ten firms include electrical manufacturers, commercial real-estate, water conservancy, educational training and fashion and textiles firms. Speaking at a meeting with ABP chairman Mr Xu Weiping in Beijing, on day three of his six day trade mission to China, the Mayor also discussed plans to work with the UK government to revamp Enterprise Zone business incentives for the Royal Docks. In 2015 the current benefits are up for review, and the Mayor wants them extended to encourage even more Asian businesses to locate themselves in London’s historic docklands, creating an eastern trading hub in the capital. The ABP deal with the Mayor, announced in May, will make the Royal Docks London’s third business district and, according to initial projections, be worth £6bn to the UK economy, generating £23m in business rates annually and acting as a catalyst for further development in the area. Despite the global downturn, China’s economy has grown by eight per cent between 2008 and 2012, and is a key market for UK exports. The Mayor’s aim is to reinstate the Royal Docks as a commercial heartland in the capital, creating a strategic trading hub with Asia, and delivering around 20,000 full-time jobs and boosting local employment in Newham by 30 per cent. The Mayor is exploring a number of measures with the government which would make it easier and cheaper both for Asian businesses to set up and trade internationally from the Royal Docks and for UK companies to export and access Asian and other non-EU markets. These include: Making it easier and cheaper to move staff and goods between the Royal Docks and outside the EU Changes to the visa process and a dedicated support team to welcome talent to the UK and make it easier to do business with non EU countries Tax relief on exports from UK companies located in the Royal Docks Fast-tracking UK Intellectual Property applications for patents, copyright, designs and trademarks, which typically take three or four years, for companies with existing IP in China or elsewhere
Boris Johnson by GaryBarker.co.uk
As an existing Enterprise Zone, the area already offers reduced business rates, a simpler planning process, and superfast broadband. The ABP deal is one of several overseen by the Mayor to deliver a raft of regeneration in the area. The Siemens Crystal Centre, the UK’s first urban cable car, Emirates Air Line and new homes at Great Eastern Quay, as well as a £1.5bn new innovation quarter at Silvertown Quays and plans to create the UK’s largest floating village at Royal Victoria Dock are all bringing jobs and homes back to the capital’s waterways. The area is already one of the most connected in the capital, with London City Airport, the Docklands Light Railway, and the cable car on the doorstep. With Crossrail on the way in 2018 it will soon benefit from direct access to central and western London as well. The Mayor of London, Boris Johnson, said: “London’s Royal Docks, historically the throbbing arteries of UK trade and commerce, present a huge opportunity which I’m determined to capitalise on. My vision is to develop a world class international business district, creating local jobs and growth and strengthening trade between east and west. Today, as we welcome the commitment of 10 businesses to the Asian Business Park, we are another step closer to achieving this.” Today, Mr Xu Weiping also announced plans for ABP to host a unique trade event to link suppliers and buyers from Britain and China at London’s Excel Centre next summer. Several hundred Chinese businesses will be invited to demonstrate their products in a workshop style environment. Already popular in China this would be a first event of its kind and scale in London. Chairman of ABP, Mr Xu Weiping, said: “I am delighted to welcome the Mayor of London to China. We have worked closely together to make the £1bn Royal Albert Dock development a reality. Following discussions in London a month ago and the announcement of our new Global Headquarters, I am very pleased the Mayor is in Beijing to meet businesses here and encourage them to make their home in the Royal Docks.” Last month Mr Xu also announced he would be locating his new ABP Global headquarters in London, and the company is now recruiting for senior staff including a Global CEO.
London Royal Albert Dock developer shows off Beijing scheme By Tom Mitchell in Beijing
©Getty
Xu Weiping, the little-known Chinese developer who wants to revive London’sRoyal Albert Dock, is an experienced tour guide. A series of pictures at his Beijing investment centre show the tycoon proudly escorting Liu Qi, a former member of the Chinese Communist party’s powerful politburo, around his large office park on the city’s southern outskirts. On Tuesday, Mr Xu’s guest was Richard Blakeway, London’s deputy mayor for housing, land and property and the point man for the £1bn Docklands project . “My company is very transparent, I am willing to show you everything,” Mr Xu, chairman of Advanced Business Park, said as he invited the Financial Times along on Mr Blakeway’s tour. More The first stop for the deputy mayor was the offices of Eve Group, which sells high-end men’s fashion and employs 300 people. Xia Hua, Eve’s founder and chairwoman, was one of Mr Xu’s first Beijing tenants in 2005, taking one of ABP’s 500 low-rise buildings. It is a cluster that ABP intends to replicate at the old Royal Albert Dock, not far from the wharves on the river Thames where goods from imperial China were once unloaded. Ms Xia is one of 10 Chinese investors who committed themselves this week to taking office space at ABP’s planned London development. “I was the first business to open here and I want to be the first business to open in Royal Albert Dock,” said Ms Xia, a former law professor from the northeastern port city of Dalian. Almost 60 companies are set to move into Royal Albert Dock, according to the mayor’s office, which also predicts the development will support 20,000 jobs and become “a strategic trading hub with Asia”. When the Financial Times visited ABP’s Beijing complex in May, sections of it appeared sluggish and the clocks at its Maya Island Hotel had stopped. On Tuesday, it was bustling and
the clocks at the hotel, which borrows its architectural and decorative themes from the ancient Mayans, were ticking along nicely. The decision by London’s mayor, Boris Johnson, to do a deal with an obscure Chinese developer that has no overseas projects on its CV has aroused some concern. While Mr Blakeway declined to comment on the selection of ABP, Mr Johnson defended his choice. “ABP are very confident that they can deliver: they’re backed by the Bank of China and they have experience here in Beijing,” Mr Johnson said during a visit to ABP’s Beijing facility on the third day of his week-long China tour. “They’ve hired very reputable British developers and architects to go ahead with them . . . This is a no-lose position for London because this is land that hasn’t been used for a very long time and there’s an opportunity to create a huge number of jobs and get businesses going.” The admiration is mutual. “The mayor is no ordinary government official and I am no ordinary boss,” said Mr Xu, who communicates with Mr Johnson through translators. He added that ABP intends to begin construction work at Royal Albert Dock in the second half of next year. After visiting Eve Group, Mr Blakeway was escorted to a two-storey penthouse suite with 360-degree views over Beijing, scallop-shaped beds, fake books and a bust of Schubert. “We’ve seen a lot of granite and marble this week,” said one member of the London delegation. Some finishing touches are still being applied. As Mr Blakeway was escorted into the building, a large puddle of water was expanding at an alarming rate in one corner of the entrance hall. And while Mr Xu and the deputy mayor rode up to the suite in a gleaming new lift, the ones their aides stepped into were dimly lit and lined with scrap wood. When the party left the building 20 minutes later, the puddle in the lobby had been mopped up. Sources: http://www.ft.com/cms/s/0/a2b92aca-35a8-11e3-b539-00144feab7de.html#axzz2iFfre3tl
Financial Times, page 2 14 October 2013
Financial Times, page 3 04 October 2013
China's money 'good' for London The Mayor of London has visited the 'forbidden city' in Beijing as part of his official trade tour of China. Boris Johnson is hoping to encourage billions of pounds of investment in the capital from Chinese businesses. One such company is ABP, which is redeveloping the capital's Royal Albert Dock. Today the firm's boss told ITV News that the money coming from China was good for British society. Our China Correspondent Angus Walker reports.
Source: http://www.itv.com/news/london/update/2013-10-15/chinas-money-good-for-london/
Newham Recorder, page 10 09 October 2013
Reuters, online 15 October 2013
Britain can gain from China’s empire builders By John Foley OCTOBER 15, 2013 ASIA | CHINA | DIPLOMACY | EMEA | INVESTMENT | TRADE | UNITED KINGDOM
By John Foley The author is a Reuters Breakingviews columnist. The opinions expressed are his own. Britain once had nothing to offer China but silver and opium. Now it has holidays, banks and building sites. George Osborne, the UK Chancellor of the Exchequer, and London’s mayor Boris Johnson are using visits to Beijing to say just how welcoming the UK is likely to be. It’s a triumph of openness, and provided the UK chooses its partners carefully and the Chinese are tactful, both sides will benefit. Simpler visa rules, and Chinese funding for landmark building projects, are easy to like. Overall Chinese tourist spending, according to Barclays, grew an annual 22 percent in the second quarter of 2013. Meanwhile, property developers are putting their ambition, and their access to credit, behind redevelopment of Royal Albert Dock and the Crystal Palace in London and the Manchester Airport complex. It is hard to see how these initiatives pose threats to sovereignty, or security. They will help Britain fund its trade and budget deficits, however, and may lead to more useful investments, say in high-speed rail. Banks are more contentious. China’s lenders want to set up branches rather than the subsidiaries most of them run today. This would let them take their parent banks’ capital into account. In return, the UK may win a bigger role trading China’s currency. London may get more finance jobs. Yet questions remain about how Chinese banks would behave in a crisis. State lenders and regulators answer to the ruling Communist Party. In the pecking order, foreigners come close to the bottom. China is unlikely to reciprocate on pure banking activity. Foreign banks have just 2 percent market share in China by assets. As with coveted sectors such as cars and pharmaceuticals, banking in China is still restricted. But precise reciprocity is less important than net financial advantage. Britain needs investment. In principle and in practice, openness is the way forward. The United Kingdom is already welcoming: the country took in foreign investment equivalent to 2.6 percent of GDP in 2012, double the aggregate figure for the OECD countries. If there’s a risk, it’s that the new investors are unknown quantities. ABP and Zhongrong, the developers behind the Royal Albert Dock and Crystal Palace, have brief and patchy track records. ABP has completed only one development in its decade-long history. Chinese developers also rely on political patronage, which can prove fickle. China may be putting up the cash, but Osborne and Johnson are investing their reputations.
The Daily Telegraph, page 23 14 October 2013
The Independent, page 2 14 October 2013
The Times, page 6 14 October 2013
The Times, page 28 14 October 2013