An aerial shot of the financial district of London
An aerial shot of the financial district of London - 
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Scott Jagow: The British government has been advising the Chinese on how to set up a private equity industry. London is seeking to pull ahead of New York in forging closer financial ties with Beijing. Here's more from Stephen Beard.

Stephen Beard: With private equity deals drying up in the U.S. and Europe, buyout firms have turned to the East. Many regard China as the next Eldorado. The U.K. is determined to get its share.

The British Treasury has revealed that it's been advising Beijing on how to tax and regulate the private equity sector. Analysts here say this is a pre-emptive strike -- the aim is to give London a head start over New York in the scramble for private equity business.

British buyout firms believe they're better placed than their American counterparts. After a series of bruising rows about issues like currency revaluation, the Chinese are manifestly weary about the U.S.

In London, this is Stephen Beard for Marketplace.