Boris Johnson unveils plan for £1bn Chinese business district

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 knowledge-
driven” 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-unveils-
plan-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-10-
chinese-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 £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.

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 £800m 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

Evening Standard, page 24
11 October 2013

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