David Cameron has announced the creation of a new China Cluster within Airport City Manchester to boost the northern powerhouse during a visit to the city with president Xi Jinping of China.
The £130m development will comprise two new office buildings together totalling 484,000 sq ft.
Named Wuhan Square and Shenzhen Gardens, the offices will be reserved for Chinese companies wanting to relocate there.
The project is expected to attract Chinese companies wanting to establish a “gateway to the northern powerhouse” by offering them exemption from business rates because of its location within the Airport City Enterprise Zone.
Manchester Airport Group (MAG), which is one of the partners in the £800m Airport City venture, also announced the launch of inaugural direct flights between Beijing and a British city outside London.
The route is worth £250m in economic benefits to the UK over the next decade, according to MAG.
Hainan Airlines will begin operating the new route between Manchester and Beijing Capital International Airport from 10 June, 2016.
President Xi’s visit is the first state visit to Manchester in more than a century.
Mr Xi has endorsed chancellor George Osborne’s plan, first conceived in 2013, to rebalance the UK economy by investing in northern cities.
Airport City is backed by the Beijing Construction Engineering Group and includes a logistics park, manufacturing and leisure facilities.
In June, MAG announced a £1bn 10-year regeneration programme for Manchester Airport to upgrade its facilities for its 48m annual passengers.
President Jinping said the investment would create a “new engine driving development in Manchester and the North and England as a whole”.
He called for continued economic co-operation between China and the UK in a short speech to business and political leaders at Airport City this afternoon.
He will now return to China via a special flight from Manchester Airport.
