Today, both the BBC and Sky have reported that the China Development Bank, which is wholly owned by the Chinese Government, wants to invest in HS2 and more nuclear power stations in the UK.
Sir Gerry Grimstone, chairman of TheCityUK who has brokered a memorandum of understanding with CDB said:
“They are interested in nuclear, high speed rail and telecommunications. HS2 was one of the things they specifically mentioned [in the meeting this morning]. Knowing the finance is available is an important part of any project. This is an important development. HS2 could be an attractive investment opportunity, this is not some wishy-washy diplomatic gesture.”
Burying bad news – Diggers line up to bury a carriage from the Wenzhou crash in 2011
Last July, former minister of railways Liu Zhijun was sentenced to death for corruption, a sentence which was suspended for two-years. In 2011 following a high speed rail crash in of Wenzhou which killed 40 people, Chinese authorities took part in a quite literal cover-up, burying the wreckage at the site.
Stop HS2 Campaign Manager Joe Rukin said:
“It is no surprise that the Chinese Government want to invest in HS2. In the last decade, they have spent billions on a network which has been beset with safety problems, corruption at the highest level and most tellingly, financial problems because the grossly inflated passenger forecasts used to justify its construction never turned up. With the deal for Hinckley C, the Chinese insisted on being guaranteed a minimum price for electricity, and it is certain that if they invest in HS2, they will want a similar agreement. If any deal is based on the ridiculous passenger forecasts used by HS2 Ltd, it will mean the project costs the taxpayer far more than expected. Getting Chinese investment in HS2 is nothing to be proud of, they will be getting a profit out of it, whether or not HS2 is profitable.”
China offers to ‘swap’ 123km tunnel for UK rail and nuclear work
China has offered to allow British firms a role in the construction of a 123km undersea tunnel in northern China in return for granting Chinese contractors a part in the UK’s planned high-speed rail network, HS2, and its new generation of nuclear power stations.
The tunnel in question runs beneath the Bohai Straits between the cities of Dalian in Liaoning Province and Yantai in Shandong Province. The value of the project, which will be more than twice as long as the the Channel Tunnel, is about $40bn.
“Britain is obviously interested only in our money. They think China is a cash cow.
Possibly China is interested in using Britain to fund it trillion pound backlog for public services facilities.
If the Chinese can build a tunnel 123km under the sea for40billion dollars why can’t we put the whole of hs2 in a tunnel and save 20billion ?
Yet again, the whole HS2 project stinks. As Joe Rukin implies, if HS2 goes ahead, it will be at an eventual high cost, as the Govt. will attempt to accept Chinese involvement i.e. money so as to keep the apparent cost below “Budget”. All to feed Cameron’s vanity. Or I am I being cynical?
China needs to raise trillions of pounds and obtain a hard currency rating. They will spend tens of Billions to widen Western Borrowing. They have topped out in USA and now want UK to do their persuading. Another PM duped by over extending credit. You should borrow within real limits. You know who you borrow from and the consequences. It appears the Government PM and Chancellor did not learn the basics on their way to power.