Chancellor George Osborne announced that BCEG would invest in the Airport City project (Reuters)

Chinese investment in Manchester Airport's new business centre could help create as many as 16,000 jobs in the North West of England.

The Chancellor George Osborne announced that Beijing Construction Engineering Group (BCEG) has now joined Carillion and the Greater Manchester Pension Fund in investing a combined £800m (€942m, $1.3bn) in the development of the UK's third busiest airport.

The Airport City project, which will include offices, hotels, manufacturing firms, logistics and warehouses, will be the core element of the Government-designated enterprise zone surrounding Manchester Airport.

The objective of situating the zone around the airport was to help attract international businesses and contribute additional jobs to the region.

"We are delighted to confirm organisations of global standing as our joint venture partners," said Charlie Cornish, chief executive of Manchester Airport Group (Mag).

"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."

Airport City is expected to be one of the largest regeneration schemes in the UK since the Olympics redevelopment in East London, hence the need for a strong group of partners.

Manchester Airport is currently used by over 20 million passengers annually, and has flights to more than 200 global destinations.

More than 6.5 million people (8% of the UK population) live in Manchester and the North West area, accounting for 11% of UK GDP.

"To be included in such an interesting and unique development is a real honour," said Xing Yan, managing director of BCEG International.

"We see our involvement in Airport City as an extension of the memorandum of understanding between China and the UK, where we have been looking to further explore joint infrastructure opportunities for some time."