Now we learn from the FT that foreign direct investment OUTFLOWS from China (including HK) reached $56bn last year and are forcast to rise to $70bn by 2010.
The article in the FT called: Deal Boosts London as investment hub talks about a recent deal between China and London to promote two-way investment between China and a European capital city.
This is good news for both parties and highlights some of the advantages the UK has over its European and even US competitors.
London has bolstered its position as the most popular destination for Chinese capital flows into Europe by signing the first agreement to promote two-way investment between China and a European capital city.
Under the agreement, the Investment Promotion Agency, part of Beijing's Ministry of Commerce, will steer Chinese companies towards London as a profitable centre for investment in sectors such as financial services, creative industries and pharmaceuticals.
The agency will highlight London's favourable business environment, regulations and policies that have already made the capital the gateway to Europe for investors from China.
It will also draw attention to the infrastructure of Chinese schools, restaurants, bookshops, health centres and places of worship created by the 80,000-strong Chinese community.
In return, Think London, the capital's foreign direct investment agency, will help British investors find opportunities in China in manufacturing - both heavy and hi-tech - as well as services and environmental protection industries.
Michael Charlton, its chief executive, said: "There is unprecedented interest from Chinese businesses looking to establish a European base in London as they take the next step in the globalisation of their economy."
The partnership has been set out in a memorandum of understanding between the agencies, signed yesterdaybefore Ma Xiuhong, vice-commerce minister.
Britain is already by far the largest recipient of Chinese foreign investment in Europe; a third of all Chinese investment in the UK goes to London - 15 per cent of the total for Europe.
Foreign direct investment outflows from China (including Hong Kong) reached $56bn (£29bn) last year and are forecast by the Economist Intelligence Unit to rise to more than $70bn by 2010.
Mr Charlton said Chinese companies wanted a platform from which to sell their products throughout Europe and the Middle East. London's excellent air links made it ideal, he added.
However, they are also seeking to move away from mass produced products where competition is eroding margins, and are looking for the design and marketing skills that the UK can offer. Midea, China's second largest domestic appliance manufacturer, has already created a design centre at its European headquarters in Finchley, north London.
The new agreement will promote a two-way flow of investment by exchanges, promotion missions, conferences and seminars. Both agencies will feature the programme on their websites, and hold annual meetings to review the campaign and extend its activities.
London leaders have established strong links with Chinese cities over recent years, including formal relationships between the City and financial centres such as Beijing, Shanghai and Shenzhen. Regular visits by Ken Livingstone, London's mayor, successive Lord Mayors and Think London have created a network of offices in large Chinese centres to promote trade links.
East woos West
China's targets in London
*Information and computer technology
*Value-added manufacturing and services
London's targets in China
*Electrical machinery and equipment
*Electronics and telecom manufacturing
*Bio-tech, fine chemicals and hi-tech materials
*Transport and communications equipment
*Environmental protection industries