PRESIDENT Xi Jinping has told MPs that his state visit is helping UK-China relations reach a “new height” but the relationship could tumble somewhat today as David Cameron is due to raise the controversial subject of cheap Chinese steel imports to Europe, blamed for thousands of UK job losses.

During a day of pomp and ceremony, the Chinese premier received a state welcome led by the Queen at London’s Horseguards Parade, addressed the UK Parliament, took tea with Prince Charles and his wife Camilla at Clarence House, had a private meeting with Labour leader Jeremy Corbyn and dined royally at the state banquet in Buckingham Palace.

Human rights protesters, largely demonstrating over Tibet, were outnumbered by flag-waving supporters for the state procession down the Mall and, later, outside Buckingham Palace for the state banquet.

Downing Street has denied the UK Government is “kowtowing” to Beijing for the sake of commercial gain and has insisted “nothing is off the table” in terms of intergovernmental discussions. But it has stressed that Britain is now entering a “golden era” in its commercial relations with China.

Today, issues of human rights and the loss of UK steel jobs could come up at the Prime Minister’s first bilateral with the Chinese premier over a working lunch in Downing Street. President Xi could even attend a joint No 10 press conference with Mr Cameron; although this was still to be officially confirmed.

However, the key item on today’s agenda will be trade; the main focus of the entire four-day state visit. Some £30 billion worth of contracts are due to be signed, including China’s investment in the first UK nuclear power plant for a generation at Hinkley Point in Somerset.

Later today, President Xi is due to attend a UK-China business meeting with the PM at which the nuclear project will be discussed.

There has been speculation that Beijing will own a third of the new £24 billion power station, due to be completed in 2023, but which will create 25,000 employment opportunities and support 900 direct jobs during its 60-year lifetime.

Also today, the UK Government will announce a major cut in the cost of repeat-visit visas for Chinese tourists in the hope of attracting more high-spending visitors from the fast-expanding Far Eastern economy.

From January, the price of a two-year multiple-visit UK visa will be slashed from £324 to £85; the current cost of a six-month visa. No 10 said this was the “best offer in Europe in terms of visas”.

Meanwhile, Scottish manufacturer Alexander Dennis Limited has signed a deal to build vehicles for the world's biggest producer of electric buses, which could be worth nearly £2 billion.

The Larbert-based firm entered a joint venture agreement with Chinese firm BYD on the back of the UK state visit by Mr Xi.

In his address to MPs and peers, Mr Xi stressed how Britain and China were becoming "increasingly interdependent" parts of a "community of shared interests".

Amid the lavish surroundings of Westminster’s Royal Gallery, he said: "Although my visit has just started, I am already deeply impressed by the vitality of China-UK relations and the profound friendship between our peoples.

"This gives me good reason to believe that my visit will lift the friendly ties between our two countries to a new height."

In an 11-minute speech, the President quoted Shakespeare as well as ancient Chinese proverbs and referenced the involvement of Chinese troops in the Normandy landings in the Second World War.

His audience included not only Mr Cameron, Mr Corbyn and John Bercow, the Commons Speaker, but also Angus Robertson, the SNP's Westminster leader, Theresa May, the Home Secretary, and other senior MPs.

"Although China and the UK are located at opposite ends of the Eurasian continent, we have a long shared deep mutual affection," declared Mr Xi.

Later, the Chinese premier met Mr Corbyn, whose office described the talks as “cordial and constructive”. The Labour leader raised human rights and the impact of Chinese steel imports on the UK industry.

Tomorrow, President Xi’s programme includes a visit, with his wife, to the PM’s country house at Chequers for dinner and, on Friday, a visit to Manchester before returning home.