Chancellor George Osborne is inviting China to build the high speed rail line between London and Birmingham as he opens an £11.8 billion bidding process.
Chinese firms will be encouraged to work with British businesses to build the line, including the surface route and tunnels.
And Chinese businesses have also been invited to be part of the HS2 skills college, opening in Birmingham in 2017.
Mr Osborne was due to make the announcement that at least seven new contracts will be opened up to companies, with a total combined value of nearly £12 billion, at an event in Chengdu, the provincial capital of Sichuan province in Southwest China.
He was also expected to announce a new “HS2 partnering day” between British and Chinese firms to explore joining up on bids for contracts, as well as encouraging firms to bid for projects associated with the Government’s “Northern Powerhouse” policy, which is designed to grow the economy in the north of England. It’s part of a wider five day tour of China by the Chancellor aimed at deepening cooperation between the two countries and making China the UK’s second largest export market.
Construction of phase one of HS2 is due to start in 2017, and when opened will slash the travel time between London and Birmingham from 1 hour 21 minutes to 49 minutes.
A second phase will extend the line from Birmingham to Leeds and to Manchester.
Mr Osborne said: “This government is committed to rebalancing our economy and building a Northern Powerhouse, and improving transport links and launching HS2 is key to supporting long-term economic growth across the North and Midlands.
“That’s why I’m here in China today opening the bidding process for construction contracts worth £11.8 billion.
“We are truly entering a golden era of co-operation between our two countries, and it’s crucial that businesses and communities from across the UK feel the full benefit of forging closer economic links with China.”
Transport Secretary Patrick McLoughlin said: “HS2 provides an excellent opportunity for businesses across the UK with 25,000 jobs created during construction and 3,000 when up and running.
“The start of the procurement process for these significant contracts is a major step towards construction on HS2 getting underway in two years’ time and a massive opportunity to help rebalance our economy long before the trains start running in 2026.”
There will initially be seven contracts up for grabs, split over three sections of the phase one route from London to Birmingham. The government will encourage Chinese companies an opportunity to work with UK firms and form partnerships for joint bids.
The Chancellor is also inviting Chinese participation in the HS2 skills college, which will be based in Birmingham with a second site in Doncaster. A skills-swap programme would allow the UK to benefit from China’s expertise as a world leader on High Speed Rail, and help Chinese investors better understand the UK market, the Treasury says.
And Mr Osborne is encouraging Chinese companies to take part in an HS2 ‘regeneration tour’, which would involve visiting areas of huge commercial opportunity in London, the Midlands and the north.
Investors would have the chance to meet with relevant local authorities and visit station sites.
