LONDON, Sept. 15 (Xinhua) -- London is the most popular destination for Chinese companies expanding into Europe, according to Think London, the FDI agency for London, on Friday.

    Since 1997, London has attracted 34 Chinese foreign direct investment (FDI) projects, and 27 of them have been completed since 2002, it said.

    London has attracted 15 percent of all the Chinese FDI into Europe since 2002, the highest share for any European city, it said.

    "London is seen by Chinese companies as a natural base for expanding into the wider European, African and Middle East markets," said Michael Charlton, chief executive of Think London.

    "Over the past four years, London has attracted four times as many Chinese FDI projects as Hamburg or Paris," he added.

    Trade between Britain and China has more than doubled over the past five years. In 2004 alone, investments into London from China reach 120 million pounds (some 228 million U.S. dollars).

    To draw more Chinese companies into London, Think London recently opened an office in Beijing. The move reflects the growing importance of China to London's economy.

    "London is recognized as China's gateway for entry to the European Union and is Europe's global financial and technology hub," said Charlton.

    Britain is already by far the largest recipient of Chinese FDI in Europe, and a third of the investment comes to London. London's Chinese business community now includes over 250 mainland companies, most of which have chosen London for their European sales and marketing headquarters.

    In addition, there are 2,000 Chinese-owned businesses operating in London, and the number of Chinese residents there now stands at approximately 80,000.

    Since 2000, a wide range of Chinese companies have set up offices in London, including ZTE, China Telecom Corporation, Shanghai General Electronics Group, China Eastern Airlines, Huawei Technologies, PetroChina, Guangdong Midea Household Electronics, and China Export and Credit Insurance. Enditem