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Senior officials from the British Foreign Office and the Treasury are seeking meetings with the head of China's state-controlled investment agency as concerns mount about a protectionist backlash to the rise of sovereign wealth funds.
Martin Donnelly, the Foreign Office official in charge of globalisation and treasury official James Sassoon are hoping to meet Lou Jiwei, deputy secretary general of the state council and head of China's sovereign wealth funds, in the next few days.
The pair are visiting China to promote Britain. A source said: "They want to see the head of the China fund to get two things across - that Britain is open for business and the need for a level playing field in trade."
Sovereign wealth funds have evolved from the need to diversify huge foreign exchange reserves and accumulated oil revenue. But they are causing increasing anxiety.
Confederation of British Industry director general Richard Lambert says the funds could fuel trade difficulties.
"There is a dangerous smell of protectionism in the air," he said. "In this climate populist politicians will be looking for an excuse to react and sovereign funds could be an excuse."
