China: Cameron Leads Major Trade Delegation

By Mark Stone, China Correspondent

The Prime Minister will head to China later today on one of the biggest ever British trade trips to the world's second-largest economy.

David Cameron is leading a delegation of six ministers and more than 100 business people on the three-day visit to Beijing, Shanghai, and Chengdu.

The visit is the first for Mr Cameron in three years, and is being seen as marking the end of a diplomatic spat between the UK and China.

The British Government has failed to secure an invitation for Mr Cameron since his meeting with the Dalai Lama in May 2012. A photograph of them together infuriated the Chinese government.

Mr Cameron's meeting with the Dalai Lama infuriated the Chinese government

Sky Sources understand that there will be a concerted effort on the part of the British delegation to put sensitive disagreements to one side and focus on economic cooperation.

"This visit is forward-looking, and about moving the UK-China relationship up a gear. We have turned a page on the Dalai Lama issue.

"The Prime Minister has said he's got no plans to meet the Dalai Lama," a Number 10 source said.

However, Mr Cameron will be forced to walk a fine line between the obvious need to engage economically with China, while at the same time not being seen to jettison British values on issues like human rights, and China's international responsibilities on issues like Syria.

Asked about human rights, the Number 10 source insisted a balance can be drawn: "We discuss a lot of issues, and nothing is off the table. Human rights is an issue we discuss."

British business is doing well in China despite the political disagreements.

Companies like Jaguar Land Rover now count China as being among their most important markets.

The positive knock-on from China sales for UK supply chains is significant.

Chinese consumers are growing increasingly wealthy. There is a love for luxury British items and the potential in many sectors is huge.

Jaguar Land Rover now counts China as among its most important markets

The inward and outward investment opportunities for the UK are significant as long as the governments cooperate.

"Senior ministerial level dialogues are obviously very helpful to UK business with China. We haven't had any of those really senior level visits for the last 12 to 18 months," Ralph Rogers from the China British Business Council told Sky News.

"I think the UK is ideally positioned to tap some of the growth potential here in China." he said.

"China is now focussing on domestic consumption. For the last 30 its been focussed on manufacturing for export but now the government are really promoting domestic consumption and so for British retailers and consumer products and for British service providers there is huge opportunity here."

But Mr Rogers concedes that dealing with China requires politicians to choose their words carefully.

"I think engagement is important and obviously we need to go about that in the right way and if we criticise over duly, if we are rude or discourteous then that doesn't help to build positive relations," he added.

George Osborne was in China on a smaller trade trip in October. Sky News travelled with his delegation and pressed him on Britain's position over China's human rights record. He refused to be drawn.

Human Rights Watch says Mr Cameron should reject this stance and stand up for British values.

"Given the deplorable state of rights in China, Cameron should pick up where he left off earlier this month in Sri Lanka, when he said he would 'shine a global spotlight' on abuses," the organisation said in a statement.

President Xi Jinping has made no secret of efforts to crack down on dissent

"The UK should have a consistent approach to human rights, which must include a forceful public condemnation of rights violations that can be heard by the people of China as well as the government."

Over the past six months, Sky News has seen evidence of widespread Human Rights abuses in China including an abortion forced upon a couple, houses forcibly demolished before owners could remove their belongings and individuals detained for expressing displeasure with their government.

Since President Xi Jinping took office in March, his government has made no secret of its widespread and concerted effort to crack down on dissent as it focuses on its overriding objective: Communist Party survival.

Activists, journalists, and well-established dissidents have been rounded up and detained in record numbers.

Mr Cameron will have meetings and separate dinners with President Xi and the Chinese Premier Li Keqiang.

Among the business executives travelling with the Prime Minister are Ralf Speth, chief executive of Jaguar Land Rover, George Weston, chief executive of Associated British Foods, Jorma Ollila, chairman of Royal Dutch Shell, Xavier Rolet, Chief Executive of the London Stock Exchange and Peter Sands, head of Standard Chartered bank.

As well as human rights issues, Mr Cameron may be forced to comment on China's increasingly assertive foreign policy.

A growing row between Japan and China over a set of uninhabited islands in the East China Sea is the latest example of Beijing's muscle-flexing.

"China is increasing its footprint around the world its using its economic muscle to advance its national interests", said Nicholas Bequelin from Human Rights Watch.

He told Sky News: "There is a naivety about China's goals... We see China as increasingly aggressive in Asia, pushing claims in the East China Sea, trying to mute and censor international media groups' coverage of China. We see China trying to undermine action at the  Security Council at the UN.

"The Syria crisis is a good example. China has been a roadblock to any solution there. As China grows, one of its objectives will be to make the world safe for dictatorships."

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