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UK and China to announce 'Northern Powerhouse' deals UK and China to announce 'Northern Powerhouse' deals
(about 3 hours later)
The UK and China are set to agree a number of partnerships meant to "unlock the potential" of the government's so-called Northern Powerhouse. The UK and China are set to announce a number of partnerships meant to "unlock the potential" of the government's so-called Northern Powerhouse project.
PM David Cameron and Chinese President Xi Jinping will visit Manchester on the final day of Mr Xi's state visit. The UK prime minister and Chinese President Xi Jinping are in Manchester on the last day of Mr Xi's state visit.
The first direct flights between Manchester Airport and China are among deals expected to be approved later. The first direct flights between Manchester Airport and China and education deals will be announced.
Meanwhile, Chancellor George Osborne is to announce new devolution deals for the North East of England. Mr Xi has visited Manchester University and will later join David Cameron to go to Manchester City's football academy.
Mr Osborne's measures will mean Newcastle and Sunderland, and Tees Valley will both vote in a directly elected mayor in 2017. Mr Xi earlier joined Chancellor George Osborne for a visit to the National Graphene Institute at the University of Manchester.
The science institute leads research into graphene, a super-strong, flexible and electrically conductive material.
Football academyFootball academy
On the final day of Mr Xi's state visit, he and Mr Cameron will attend lunch at Manchester Town Hall alongside business, civic and community representatives. Mr Xi will then attend lunch at Manchester Town Hall alongside business, civic and community representatives, along with Mr Cameron.
The leaders will also visit Manchester Airport, where the new Hainan Airlines route, which the UK government says will provide a £50m boost to the Manchester economy, will be announced. The leaders will also visit Manchester Airport, where the new Hainan Airlines route - which the UK government says will provide a £50m boost to the Manchester economy - will be announced.
It will be the first direct route from the UK to China outside London.It will be the first direct route from the UK to China outside London.
Further deals set to be agreed include the appointing of a Beijing firm BCEG as main contractor for the Middlewood Locks regeneration project in Manchester, with the company expected to provide £4m to kickstart the project. Mr Cameron and Mr Xi will also meet current and former Manchester City and Manchester United players, including Gary Neville, Patrick Vieira, Denis Law and Mike Summerbee, at the Manchester City football academy.
Education partnerships including schools and universities are also set to be agreed. The visit comes as Mr Cameron seeks to promote the government's Northern Powerhouse agenda.
What is the Northern Powerhouse?What is the Northern Powerhouse?
Mr Cameron said: "China is a key trading partner for the UK and the partnerships being made today will see real investment going into the north. Further deals set to be agreed include the appointing of a Beijing firm BCEG as main contractor for the Middlewood Locks regeneration project in Manchester. The company is expected to provide £4m to kickstart the project.
Education partnerships including schools and universities are also set to be agreed.
Mr Cameron said China is a "key trading partner" for the UK, adding: "The partnerships being made today will see real investment going into the north.
"This is all part of this government's plan to attract more investment and deliver economic growth to an area of huge potential.""This is all part of this government's plan to attract more investment and deliver economic growth to an area of huge potential."
Mr Cameron and Mr Xi will also visit the Manchester City football academy. Chequers talks
They will meet current and former Manchester City and Manchester United players including Gary Neville, Patrick Vieira, Denis Law and Mike Summerbee.
On Wednesday, the two leaders held talks at Chequers focusing on "domestic priorities and foreign policy issues".On Wednesday, the two leaders held talks at Chequers focusing on "domestic priorities and foreign policy issues".
Downing Street said they had agreed that early dialogue between the two countries could help find diplomatic solutions for global and regional security challenges.Downing Street said they had agreed that early dialogue between the two countries could help find diplomatic solutions for global and regional security challenges.
China and the UKChina and the UK
What does China own in the UK?What does China own in the UK?
Banquets and tiaras: China reacts to Xi UK visitBanquets and tiaras: China reacts to Xi UK visit
China and 'the Osborne Doctrine'China and 'the Osborne Doctrine'
How China guards the Xi creation mythHow China guards the Xi creation myth
Can UK be China's best partner in the West?Can UK be China's best partner in the West?
Who is President Xi Jinping?Who is President Xi Jinping?
Meanwhile, Mr Osborne hailed "historic" deals with the North East Combined Authority, which takes in councils including Newcastle and Sunderland, and Tees Valley. It comes as Mr Osborne is to announce new devolution deals for the North East of England.
The chancellor's measures will mean Newcastle and Sunderland, and Tees Valley will both vote in a directly elected mayor in 2017.
The North East deal will transfer powers over transport, strategic planning, employment and skills from Whitehall to the region.The North East deal will transfer powers over transport, strategic planning, employment and skills from Whitehall to the region.
It enables the authority to create an investment fund with an initial allocation of funding for capital financing of at least £30m a year for 30 years.It enables the authority to create an investment fund with an initial allocation of funding for capital financing of at least £30m a year for 30 years.
'Old model broken''Old model broken'
The Tees Valley deal will see its investment fund guaranteed at least £15m a year.The Tees Valley deal will see its investment fund guaranteed at least £15m a year.
"The old model of trying to run everything in our country from the centre of London is broken," Mr Osborne said."The old model of trying to run everything in our country from the centre of London is broken," Mr Osborne said.
"It has led to an unbalanced economy and made people feel remote from the decisions that affect their lives.""It has led to an unbalanced economy and made people feel remote from the decisions that affect their lives."
He added: "I am determined to end this situation and I want to thank those civic leaders who want to work with us to achieve it."He added: "I am determined to end this situation and I want to thank those civic leaders who want to work with us to achieve it."