UK Cameron Welcomes UK-China Fund, 'Passionate' On Deepening Ties

BEIJING (Dow Jones)-On the second day of a major trade mission to China, U.K. Prime Minister David Cameron welcomed the launch of a $500 million UK-China investment fund by private equity house First Eastern Group and said he was "passionate" about deepening links with the Asian nation.

"I think this is an absolutely excellent initiative," he told delegates at a meeting organized by the International Finance News Institute.

"I am passionate about growing the links between Britain and China and growing the trade between Britain and China."

Cameron said the Chinese economy offered major prospects for U.K. companies in retail, banking, services, insurance, hi-tech and pharmaceuticals.

Earlier this week, the two countries announced education and economic agreements. The trip has also seen a string of business deals done by U.K. firms, the largest of which was a $1.2 billion order from China Eastern Airlines (CEA) for Rolls-Royce Group PLC (RYCEY) engines.

Cameron said the U.K. will continue "arguing that in Europe we should be open to trade from China and not put up trade walls."

And he said the two countries can work closely together to try and complete the Doha round of negotiations.

"We are two countries that together in the G-20 and elsewhere will be fighting against protectionism, fighting against countries that want to put barriers up. We know the best future for China, the best future for Britain, the best future for our world economy is to keep trade barriers down, to keep trade open, to progress and finish the Doha round," he said.

Cameron is leading the U.K.'s largest-ever business delegation to China this week on a 36-hour visit ahead of the Group of 20 leaders meeting in South Korea.

Cameron met with Chinese Premier Wen Jiabao Tuesday. He is scheduled to meet President Hu Jintao on Wednesday and to give a speech at Peking University, where he will urge China to match economic freedoms with political openness.

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