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  1. ITV Report

Northern Powerhouse boost from Chancellor's visit to China

George Osborne says investment is good news for jobs and homes in North Photo: PA

Chancellor George Osborne is welcoming a major new investment in the Northern Powerhouse on his visit to Urumqi in the region of Xinjiang, in North West China. He said he wanted to make China the UK’s second largest trading partner.

The Chancellor visited Hualing Industry and Trade Group which announced its intention to provide the investment needed for three major property projects in Manchester, Leeds and Sheffield with a gross value of £1.2 billion.

Chancellor George Osborne urges UK companies to look to China Credit: PA

The three projects, which are being led by the UK’s Scarborough Group, are expected to create 18,000 jobs and enable the delivery of 10,000 much-needed new homes, helping to build the Northern Powerhouse.

He wants British firms to take advantage of the huge potential in China. A new study 'One belt One Road ' by the China-Britain Business Council and the Foreign Office sets out opportunities available to British companies.

We are building an ever closer relationship with China – it’s a partnership that is set to unleash growth and help regions like Xinjiang where we know investment can make a real difference, as well as unleash new growth back home, in places like our own Northern Powerhouse

– Chancellor George Osborne

As a family business with its roots in the North of England, we are now very proud to bring our partners in China to the UK to invest in our great Northern Cities and to accelerate the development of our major projects in Manchester, Leeds and Sheffield.

Our partnership with the Hualing Group is a new and exciting one for Scarborough and we look forward to working with them over the coming years to bring our Northern projects to fruition.

– Kevin McCabe, Chairman of the Scarborough Group

It is vital that the British business community understands what One Belt, One Road could mean in the short, medium and long term and to take action to position themselves to win business in the years ahead. ?At the China-Britain Business Council we will work closely with businesses to seize these new opportunities.

– Stephen Phillips, Chief Executive, China-Britain Business Council

Through the One Belt One Road, China aims to create six economic corridors, spanning over 60 countries that make up almost two thirds of the world’s population and account for a third of the world’s wealth

Xinjiang, over a 1000 miles from Beijing, is roughly the size of Western Europe.