China set to invest over £100 billion in UK infrastructure by 2025, says Pinsent Masons

The UK energy sector is set to absorb the largest flow of Chinese inward investment at £43.5 billion by 2025, followed by real estate (£36 billion) and transport (£19 billion).

UK infrastructure landscape is expected to be transformed by Chinese inward investment over the next decade.Global infrastructure experts expect a rise in joint-ventures between UK and Chinese companies over the next decade.

The Pinsent Mason report finds that of the £105 billion, the leading recipients will be the energy, real estate and transport sectors. The UK energy sector will be the biggest target for Chinese capital, with investment in projects including nuclear energy, wind power generation and photovoltaic power generation could be set to reach £43.5 billion by 2025. The real estate and transport sectors could receive £36 billion and £19 billion respectively over the next decade.

Richard Laudy, head of infrastructure at Pinsent Masons, said: “As the need to modernise UK’s major infrastructure gets greater by the day, the projected influx of Chinese investment into UK infrastructure is expected to be a welcome boost to the construction industry in particular and UK economy as a whole. As a foreign investor China is going to become increasingly important for UK infrastructure by 2025. This means UK-China partnerships need to grow over the next decade.”

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