China, U.K. Announce $2.2B Business Deals

The Wall Street Journal reports:

U.K. Prime Minister David Cameron and Chinese Premier Wen Jiabao Monday announced business deals between the two countries valued at £1.4 billion ($2.2 billion), as they discussed ways to increase trade.

The men said they were aiming for bilateral trade to reach $100 billion by 2015.

"To achieve that, both countries must continue to make the case for mutual commitment to market access," Mr. Cameron said at a news conference at Downing Street during a five-day European tour by Mr. Wen. "The U.K. is one of the most open economies in the world, one of the easiest places to invest, to raise capital, to expand, and to export from. We are the natural home for Chinese investment into Europe." China's ambassador to the U.K. last week said China-U.K. trade was $50.1 billion last year.

Among the deals announced Monday, U.K. energy firm BG Group PLC reached a memorandum of understanding with Bank of China Ltd. for a $1.5 billion credit line that BG says will be used to support its global growth plans, including in China.

Beverage maker Diageo PLC was given approval to increase its holding in Chinese spirit company Sichuan Chengdu Quanxing Group Company Ltd. to 53%, a rare majority stake by a foreign firm in a Chinese company and a sign of increasing openness by Beijing. Diageo said steps are being taken to complete a 4% transfer for about 140 million yuan ($22 million).