China poured $14.3 billion worth of infrastructure investments into Scotland to help its ground commuting system and spur local employment, economists said. 

Reports said Scotland signed agreements with two Chinese companies--Chinese Investment group SinoFortone Group and China Railway No. 3 Engineering Group, the largest construction company in the world--to invest on infrastructure projects in the amount of 10 billion pounds ($14.3 billion).

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"With high-speed trains traveling at a speed of over 300 kilometers per hour, it certainly will help Scotland change the situation in which its ground commuting systems long been dominated by automobiles. And related projects can generate a large number of jobs and construction materials supplying businesses," said Luo Renjian, a researcher at the Institute of Transport Research.

Expertise

Luo said that although Beijing can be considered a latecomer compared to its rivals Germany and France, China's expertise in building rail and railway infrastructure and its rail equipment companies have thrived in the market because of its flexible financial models and cost advantages.

Economic analysts said that the agreements paved the way for more investments in other fields such as clean energy, transport, and housing projects.

The signing ceremony was attended by Chinese Consul General Pan Xinchun, Scottish First Minister Nicola Sturgeon who was joined by Peter Zhang, the managing director of SinoFortone Group, Sir Richard Heygate and  senior adviser for China Railway No. 3 Engineering Group.

Memorandum of Understanding

"We have been cooperating and engaging with China since 2007 and I further progressed Scotland's business credentials during my trip last year, and this Memorandum of Understanding will strengthen our economic links with China in a number of areas," Sturgeon said  

"We have high hopes for Scotland's economy and it is in a strong position, but if we can drive further growth by looking beyond our shores and building relationships with firms across the world then we will seek to make that happen," he added.

For his part, Zhang said Beijing is "delighted" to bring its Chinese infrastructure expertise and finance to Scotland "to provide a real example of the benefits of the Belt and Road initiative in action."

Consul General Pan congratulated the two sides by saying the project will benefit the Scottish people as well as the Chinese infrastructure companies.

TagsScotland, infrastructure investments, Chinese companies, infrastructure expertise, ground commuting system, Chinese consul general Pan Xinchun, Scottish First Minister Nicola Sturgeon