Beijing Construction Engineering Group has agreed to invest in Manchester airport as part of a joint venture to create an ‘airport city’.

The ‘city’ will see the creation of offices, hotels, manufacturing and warehouses.

The joint venture project, involving Beijing Construction Engineering Group (BCEG) Manchester Airports Group (MAG), UK construction group Carillion, and the Greater Manchester Pension Fund, is expected to create 16,000 jobs.

The development of the site will help to increase links with China with the announcement coming as the chancellor George Osborne continues his five-day trade mission to China.

Charlie Cornish, chief executive of MAG, said: “"The inclusion of BCEG is significant because as a group, we have been keen to forge greater links with the far east and this gives us an opportunity to strengthen vital business links with China".

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