Mayor woos China firms for 2012 deals

THE presence of a delegation of Chinese companies touring London to seek Olympics contracts has cast fresh doubt over the extent to which the British economy will benefit from 2012.

The three-day "Connect to London" trip is run by the Mayor's inward investment agency Think London.

The 35 firms include the suppliers who provided stadium seating, official merchandise, catering and fireworks to the Beijing Games.

Delegates will today have lunch with Mayor Boris Johnson before being taken on a guided tour of the Olympic Park as part of a three-day itinerary.

Attempts to woo Chinese businesses began at the trade pavilion London House at the Beijing Games. Mr Johnson hopes the major companies will establish their western headquarters in London. He also hopes to lure Chinese investment into the legacy of the Olympic Park.

Firms on the trip include Beijing 2008 caterer South Beauty, fireworks supplier Panda, merchandiser Beijing Gongmei and Zhejiang Dafeng, which supplied stadium seats to the last two Games. Beijing-based lighting firm Crystal Digital - which was behind the Beijing Olympics' opening and closing ceremonies - has already opened an office in London in the hope another Olympic order.

The firms' arrival is timed as 2012 organising committee Locog prepares to award the first of thousands event management contracts with a budget of £2billion.

Olympics chiefs are under increasing pressure during the recession to award contracts to home-grown firms without flouting trade rules on cross-border competition.

Tory Hugh Robertson, the shadow Olympics minister, said: "When London bid for the 2012 Olympics considerable promises were made about the direct benefits to British business. Despite the problems caused by the recession it's vital to ensure British businesses benefit as much as possible."

Many of the Chinese firms, some with billion-pound turnovers, will also investigate investment opportunities away from the Olympic Park.

Delegate Simon Liang chairman of medical suppliers Glory Medical, said: "The downturn has not changed London as a global business centre, especially for hi-tech industries."

Ian Barlow, chairman of Think London, said: "These companies are major players. Our message is that London is the best place for them to set up base in the western hemisphere and the Olympics can be a catalyst to that."