Cameron takes UK business delegation to China

Mr Cameron described the visit as a "vitally important trade mission" for the British economy, and aides were hopeful that a number of lucrative deals involving UK firms will be signed.

But the Prime Minister also faces the awkward challenge of voicing Britain's human rights concerns with hosts who have shown themselves unwilling to accept criticism on this front.

The trip comes shortly after the award of the Nobel Peace Prize to jailed dissident Liu Xiaobo, and days after China warned Western diplomats against attending the award ceremony in Oslo next month. Britain has said its ambassador intends to attend.

On top of that, artist Ai Weiwei - who created the current sunflower seed installation in London's Tate Modern as well as Beijing's Bird's Nest Olympic stadium - was placed under house arrest amid a row over the demolition of his Shanghai studio.

Aides have said Mr Cameron will raise human rights issues during his talks with Chinese Premier Wen Jiabao and President Hu Jintao, but it is unclear how forcefully he will press individual cases such as that of Mr Liu.

The trip sets the scene for this week's gathering of the G20 in South Korean capital Seoul, at which Mr Cameron will join leaders of the world's other major economies - including US President Barack Obama - in seeking to maintain the global recovery from recession.

With its GDP growing by 8.5 per cent even during the last year, China is at the centre of hopes for renewed global economic health, but Beijing will come under pressure at the G20 to ease trade imbalances by allowing a faster appreciation in the value of the yuan.

As he prepared to set off for Beijing, there was no doubt that the potential to boost UK-China trade was foremost in the Prime Minister's mind.

"Our message is simple," said Mr Cameron. "Britain is now open for business, has a very business-friendly Government, and wants to have a much, much stronger relationship with China.

"I'm delighted we've got such a wide range of institutions and businesses coming with us. This visit will mark another step to making Britain the successful, open, trading and pro-business country that I want it to be."

China recently attained the status of the world's second largest economy after the US, and is the UK's ninth largest export market. Britain ranks alongside Germany as the EU's largest investor in China, with total investment reaching more than 10 billion.

Bilateral trade in goods and services between Britain and China was worth 32 billion in 2009, with UK exports totalling 7.7 billion.

UK goods exports to China rose 44 per cent in the first eight months of 2010 to 4.5 billion, and key sectors for future growth in a potential market of 1.3 billion consumers include pharmaceuticals, financial services, luxury goods, telecommunications and aviation.

Airbus last month announced the sale of more than 100 planes to China in a deal worth more than 3 billion to the UK economy. China is predicted to increase its commercial air fleet by around 3,800 planes and expand its network of airports from 166 to 244 by 2020.

Among the 43-strong business delegation travelling with the PM are Virgin Atlantic chief commercial officer Julie Southern, Tesco executive director Lucy Neville-Rolfe, Shell chief executive Peter Voser, Barclays group chairman Marcus Agius and Paul Walsh, the chief executive of drinks giant Diageo.

Three days of trade talks will begin with a meeting of the Joint Economic Trade Commission later today, followed by an economic and financial dialogue tomorrow and a business summit on Wednesday.

Business Secretary Vince Cable, who is part of the UK delegation, said: "Domestic consumption in China is growing, the middle class is expanding, and Chinese companies are looking to internationalise.

"This brings a huge increase in opportunities for UK firms given that they are globally competitive in services, advanced manufacturing and engineering, ICT, life sciences and creative industries - all areas where Chinese demand is growing significantly."

Mr Cable will today sign an agreement to allow the export of British breeding pigs to China - home to half of the world's pig population - in a deal valued at around 45 million to the UK pig industry over the next five years.

Also joining Mr Cameron in China are Chancellor of the Exchequer George Osborne, Energy Secretary Chris Huhne and Education Secretary Michael Gove, who will be accompanied by academics including Pat Howarth, the headteacher of Hummersknott Language College, a secondary school in Darlington which has partnered with a school in China.

Mr Cable, already in China, told the BBC Radio 4 Today programme that the UK Government was not going to lecture the Chinese on exchange rates - with some countries feeling the yuan is valued artificially low to boost exports - or human rights.

Mr Cable said: "I certainly haven't come here to lecture them on exchange rate policy. There is a wider issue of which this is a part, which is the big imbalance between some countries and others."

On human rights, he added: "I don't think we will approach it by lecturing them, but they know this is part of the wider political and economic framework in which we operate."

Paul Kenny, general secretary of the GMB union, said: "David Cameron should impress on China's leadership that free, unfettered trade unions are an essential part of a fair society and that he will resist pressures back home from business and others to truss up trades unions in the UK.

"He should make clear that freedom of association and the right to withdraw labour are basic civil rights in both China and the UK."