A memorandum of understanding has been signed between the UK and China pledging greater cooperation over railways.

Areas such as rail design, engineering, construction, supply, operation and maintenance stand to benefit from the bilateral agreement, which was signed at the Foreign and Commonwealth Office.

The memorandum of understanding covers all forms or rail transport, including high speed rail. It could promote activities such as collaboration on research and development within the sector, station design, equipment supply and rail transport safety and evaluation.

Transport secretary Patrick McLoughlin said increased cooperation between the UK and China on rail could result in benefits for both countries.

"The railways are a massive success story in both countries and we can boast world class expertise across the sector," he added.

Contracts won in the UK should utilise and build upon the UK supply chain, the agreement states, while UK companies could be granted better access to the Chinese market.