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Li Daokui, director of Tsinghua University's Center for China in the World Economy, has seen some other advantages the treaty will bring about to the two countries.

As a big country that has vast territorial land, sea and airspace and very long borders, China needs to maintain proper investment in defense and keep the troop size at an appropriate level, Xi said.

There are over 150,000 Chinese students studying in Britain and about 29 Confucius Institutes have been established there, more than in any other EU country.

"Britain is a leading offshore RMB trading center after Hong Kong. It is also the first Western country to issue RMB sovereign bonds and the first major Western country to apply full membership of the Asian Infrastructure Investment Bank," said Xi.

Britain is a major destination for Chinese students studying abroad and the number of British students who come to China has increased steadily, said Yuan, in an interview with Xinhua ahead of President Xi Jinping's visit to Britain next week.