After just six months in office in 2010, UK Prime Minister David Cameron went to China hoping to return with a trunk full of deals. From the High-Speed Two rail project to the new Hinkley Point nuclear reactor, investment from Beijing was promoted as the answer for a country grappling with government spending cuts.
But despite successive attempts by the British government to encourage China to invest in new-build infrastructure, almost all the investment so far has been in residential or commercial property or in existing assets that are already delivering safe returns.
China Minsheng Investment’s £1bn project to develop the Royal Docks in east London or China Investment Corporation’s 10 per cent stake in Heathrow airport are two examples.