THE Prime Minister has unveiled a bilateral agreement with China which will allow the rail industries of the two countries to work together with the intention of boosting economic growth, jobs and skills.

There had been speculation that such an agreement could include specific investment in HS2, but so far this has not been confirmed.

The DfT said the signing, by transport secretary Patrick McLoughlin and the Chinese chairman of the national development and reform committee, Xu Shaoshi, at the Foreign & Commonwealth Office, is intended to pave the way 'for closer co-operation on areas such as rail design, engineering, construction, supply, operation and maintenance'.

The Memorandum of Understanding is one of several such agreements covering various sectors, and covers new build and upgraded rail infrastructure, the supply of products and services to third markets, collaboration on research and development, station design, equipment supply, safety and energy saving and environmental protection.

The agreement states that contracts won in the UK should involve and the UK supply chain, but it is also expected that the UK will have greater access to the internal Chinese market.

Transport secretary Patrick McLoughlin said: “I can see great mutual benefit to be gained from increased co-operation between the UK and China on rail. The railways are a massive success story in both countries and we can boast world class expertise across the sector.

“The government’s long term economic plan is working, and Britain is on the rise. But the job is not done. The success stories of the future will be economies that invest in infrastructure and welcome overseas involvement and we want this partnership to be a win-win situation creating economic growth and jobs here and abroad, including in China.”