PM: Nuclear deal to take UK-Chinese ties to 'new level'

David Cameron defended his decision to do business with China, as he hailed a £6 billion nuclear deal for the far eastern giant to invest in a new nuclear power station.

He said the agreement was a sign the countries wanted to take their ties to a "new level" on the second day of President Xi Jinping's four-day state visit.

The Prime Minister has faced questions over his decision to allow the communist state to take a stake in key elements of Britain's infrastructure after the deal was announced between French energy giant EDF and the China General Nuclear Power Corporation (CGN).

He said the new plant at Hinkley Point in Somerset, where power generation will begin in 2025, will create more than 25,000 jobs and provide "reliable, affordable energy to nearly 6 million homes."

CGN will take a 33.5% share in the £18 billion plant, the first in what is expected to be a new generation of civil nuclear power plants in the UK.

Speaking alongside Xi following talks at 10 Downing Street, the PM insisted that the UK-China relationship was good for both countries.

Cameron said UK exports to China have quadrupled since the last state visit in 2005 and have increased in the last five years by 140% making Britain the country's second largest investor.

Cameron called for more economic links between the nations, "not only for China to invest in the UK but also for British businesses to expand and grow in China".

And he said there should be more financial co-operation, with the UK becoming "the partner of choice for China in the West", as well as co-operation on issues like climate change, poverty and tackling extremism.