China's investment in UK will be 'explosive' (2)

They agreed to buy a 10 percent stake in Heathrow Airport in October.

This follows closely on the fund picking up a stake in Thames Water last year.

"We could say the UK is the most open market worldwide, especially in the infrastructure sector, and this means huge business for China," said Zhou.

From 2011 to 2015, the UK is expected to need capital worth about $325 billion for the infrastructure sector, he said.

As a country that is proud of innovation and design, the UK is a "good place" for Chinese manufacturers to set up research and design departments, Zhou said.

"We have already seen some domestic manufacturers establish their R&D centers in the UK," he said.

Last summer, the Chinese fashion brand Bosideng made its first foray abroad, opening a flagship store in London's West End. The company makes its products in the UK.

"The top brands in the world are in London and Bosideng is here to learn from them and to build itself into a luxury brand," said Zhu Wei, CEO of Bosideng Corp UK.

"We have got the best local designers to join us," he said.

"The UK is the land of thinkers. Chinese manufacturers could learn a lot when they are here," Zhou said.

To further boost investment, the UK is about to introduce Patent Box legislation.

This will come into effect in April 2013 and aims to encourage more companies to invest in patents, research and development through cutting taxes and providing incentives.

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