Chinese investors in London have a change of heart as the city turns into ghost town

Highlights

  • The ongoing tensions between the U.K. and China and the Covid crisis have caused several investors to withdraw from the projects
  • The 35 acres of precariously secured land in the London riverfront were on hand to convert into a finance hub
  • The 1.7 billion pound ( $2.2 billion) project overlooking the Thames have completed the first phase consisting of 21 new buildings in which most of them are now all-empty
  • According to certain datas, this would be the first year the Chinese investors have been out of the market since 2011

It was the contract between Chinese president Xi Jinping and then U.K. Prime Minister David Cameron, that led to the transformation of properties in the city of London into a major Chinese business centre. However, the ongoing spread of the Covid virus has halted the project.

Xu Weiping, a significant Chinese investor, said that it was the geopolitical changes that have brought uncertainty which affected the mindset of numerous Chinese and Asian investors.

The tension between the 19th Century Coloniser and the uprising superpower of the 21st Century began due to U.K’s decision under U.S. pressure to ban Huawei Technologies and the suspension of the Hong Kong treaty.

A Chinese hub in the city’s heart

The Advanced Business Park in London was initiated after the former U.K. Prime Minister declared Britain to be China’s best partner in west. A friendlier era between the two nations was hinted when he won the rights to build the financial hub in the capital. It was funded by some of the major Chinese lenders , including Citic Bank, Bank of China, Agricultural Bank of China , Commercial Bank of China and China Construction Bank.

In 2013, Boris Johnson , the then Mayor and the current Prime Minister had declared that a total of 57 businesses will be included in the business park.

Xu planning to bring back the investors

Despite investors backing out from the projects due to the viral outbreak and the ongoing tensions between the nations, the company is developing a certain plan to attract the same. Xu now wants to create an home office for the employees where they can work without coming into contact.

However, even when Xu is optimistic about the future of the projects, his partners might have a different frame of mind. Most of them are stepping down so as to maintain the relationship with the Chinese government.

https://economictimes.indiatimes.com/news/international/business/londons-newest-ghost-town-was-financed-by-china/articleshow/77298343.cms

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