China and the UK have agreed a trade deal worth £14bn.
It is believed that the state’s China Development Bank wants to invest in the contentious High Speed 2, new nuclear power stations and telecommunications, among other infrastructure projects.
The agreement will encourage the Bank to lend in the UK as well as trade in China's currency, the renminbi. This should present UK businesses with trade opportunities in China.
The Bank of China also announced a memorandum of understanding with the London Stock Exchange on Tuesday to increase its presence in the City.
Prime Minister Cameron noted there has been “more Chinese investment into the United Kingdom in the last eighteen months than the whole of the last thirty years combined."
China already invests more money in Britain than any other European country. Portugal is in eighth position for Chinese investment in Europe.
Globally, China invested nearly US$130 billion in 2012, predominately to Australia, the US and Canada with the UK being the eighth most popular in the world. China has focussed on energy, metals, transport, construction, finance and agriculture for its investments in the UK.
These include minority stakes in Barclays Bank, BP, Diageo and Thames Water.
Elsewhere it has controlling interest in a number of products - Bright Foods owns a 60% stake in Weetabix, the Wanda conglomerate owns 92% of Sunseeker boats, while Geely Automobile owns Manganese Bronze, the company that makes London taxis.
