THIS week sees the state visit of President Xi Jinping of China. The full menu of state visit pomp and circumstance will be offered, including not one but three state banquets. There will be much to discuss, including investment in new nuclear power stations in the UK – something that many feel nervous about (for security reasons). But there are two big issues that people will be looking to the Prime Minster to raise. Trade and human rights.

China has a questionable human rights record and I visited a region of China with identifiable infringements about 18 months ago. The Uyghur people of Xinjiang province have been on the receiving end of oppression and our delegation was there to help put pressure on the local authorities.

There are many who expect the UK to take a confrontational approach to China. Whilst it may make some people feel better, it almost certainly won’t have the effects we want in terms of human rights. As China becomes a global citizen, the soft power exerted by trade and finance is possibly more likely to achieve better outcomes for oppressed minorities.

China’s position in the world economy is interesting. Most of us will look at China as a country that is emerging from the dark ages of communism and doing its best to catch up. IN recent history, this is fair, but China has been the biggest economy in the world for all but three hundred of the last three thousand years. It will again be the world’s biggest economy within the next 20 years and its importance cannot be under estimated. It is vital that we engage with China economically, and that is why we are pioneering offshore renminbi trading in London and issuing so called dim sum bonds here in the UK (Rmb denominated offshore bonds). The Worcestershire Ambassadors have organised two or three trade trips to China and the Chinese Embassy has sent representatives to meet local businesses here in the county.

But at the same time, China is dumping cheap steel into the UK and decimating our already struggling steel industry. This is not acceptable and we need to tackle this problem (although the construction industry will be grateful of cheaper raw materials for building).

These opportunities are immense, but we do need to balance these opportunities with a demand for good business practices and respect for the rights of minorities in China.