Richard Ottaway, chairman of the foreign affairs select committee, told the FT: "UKTI has got to justify its actions, it has got to explain why it recommended investment from this group."
The deal between Peel Holdings, the company leading the Wirral redevelopment, and Ms Shiu's company was originally signed in the presence of senior UKTI officials, including Lord Green, trade minister. It was touted as an example of the kind of deal that is being promoted by Mr Cameron as he focuses Britain's relationship with China firmly on securing trade between the two countries.
The prime minister will travel to China next week for the first time since the new Chinese leadership took over, ending a year-long diplomatic stand-off over his decision to meet the Dalai Lama in 2012.
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He will take a large trade delegation with him, including dozens of executives from blue-chip companies and others from small and medium-sized businesses.
But the trip comes amid mounting concern that Britain is so keen to sign new deals that it is failing to carry out enough due diligence on prospective investors.
One of the biggest projects to have attracted Chinese backing is a £1 billion property development in London's docklands. But Advanced Business Park, a Chinese company planning an office complex on the site, has only one completed project to its name: a development located on the far outskirts of Beijing in the city's least affluent district.
John Spellar, a Labor member of the all party group on China, told the FT: "UKTI and the Foreign Office have to be careful and undertake due diligence to make sure of the bona fides and assets of any potential investors."
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Senior diplomats in China believe Britain may be going too far in trying to encourage inward investment into the country.