Tesco, the supermarket group, yesterday announced plans to expand its presence in China significantly by opening three huge shopping centres, while Apple said that it would open two new stores in Shanghai.

The openings demonstrate increasing confidence that the Chinese economy is recovering.

Tesco, which already serves four million customers a week in China, plans to open three new shopping malls in the first half of 2010. The malls, part of a joint venture with Asian investors including HSBC Nan Fung China Real Estate Fund, Singapore’s Metro Holdings and Hong Kong’s Nan Fung Group, will have a Tesco hypermarket — similar to a Tesco Extra store with electrical goods alongside food and clothes — as their anchor tenant. Tesco will own half of the joint venture.

The supermarket group is eager to expand abroad, as growth slows in the UK, and already operates in 28 cities in China, predominantly in the north coastal and east regions.

An attempt to break into the American market, with upmarket convenience stores Fresh & Easy, has been less successful.

Most of the 71 stores it operates in China are hypermarkets, although it also has six small stores, equivalent to Tesco Express in the UK. After beginning an aggressive expansion programme in 2007, it now takes up about six million sq ft of space, and made £417 million in sales in the six months to 29 August 2009. It will open 18 new stores in the year to February 2010.

Apple is also hoping to target the growing appetite for Western brands and disposable income of Chinese consumers by opening two new stores in Shanghai. The maker of the iPhone and iPod plans to open up to 50 new stores worldwide next year, including one in London.

• Debenhams swooped to make its first acquisition outside the British Isles yesterday, buying a Danish department store at what analysts said was a heavily discounted price (Marcus Leroux writes). Britain’s second largest department store chain bought Magasin, a store chain with six stores and turnover of £229 million, for £12.3 million.

Debenhams bought the company from Straumur, the stricken Icelandic investment bank, which is also trying to offload West Ham United Football Club.

The cash Straumur has obtained from the sale may give it extra time to find a buyer for West Ham. Debenhams expects the chain to be earnings enhancing next year. It broke even on the earnings before interest, depreciation and amortisation level this year. Debenhams already trades from about 50 stores overseas, but they are owned and operated by franchisees.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax