LONDON — The UK’s Treasury chief is embarking on a visit to China this weekend to engage in discussions regarding economic and financial collaboration as the Labour government in the U.K. aims to mend its fraught relationship with Beijing.
The Treasury announced on Friday that Rachel Reeves will be visiting Beijing and Shanghai to meet with Vice Premier He Lifeng, her counterpart in the Chinese government. This trip is anticipated to renew the China-U.K. Economic and Financial Dialogue, an annual series of discussions that have been on hiatus since 2019 due to the COVID-19 outbreak as well as declining relations over recent years.
Tensions between the two nations have escalated, attributed to a slew of spying accusations from both sides, along with China’s backing of Russia during the Ukraine conflict and the tightening of civil liberties in Hong Kong, which was previously under British rule.
Joining Reeves on this important diplomatic mission are Bank of England Governor Andrew Bailey and the chief executive of the U.K. Financial Conduct Authority, Nikhil Rathi. Additionally, representatives from several of the largest financial service institutions in Britain are expected to accompany her. While specific names weren’t revealed in the Treasury’s announcement, reports have suggested that executives from banking giants like HSBC Holdings and Standard Chartered will be part of the delegation.
Reeves’ visit comes on the heels of Foreign Secretary David Lammy’s trip to China in October, as well as Prime Minister Keir Starmer’s interactions with Chinese President Xi Jinping during the G20 summit in Brazil in November. These events reflect Starmer’s efforts since assuming leadership in July to enhance the U.K.’s political and economic relations with China, its fifth-largest trading partner.
The U.K. government has expressed a desire for a “pragmatic” approach in collaborating with China on critical issues, such as global stability, climate change, and the transition to renewable energy.
However, the opposition Conservative Party has voiced criticisms regarding this approach, cautioning that strengthening trade ties should not come at the expense of national security and human rights issues. British political figures and intelligence leaders have consistently highlighted the security risks posed by China. These concerns intensified last month following revelations that an alleged Chinese spy had developed a close relationship with Prince Andrew while engaging in “covert and deceptive activities” on behalf of China’s Communist Party, as mentioned by officials.
Despite the surrounding tensions, Lammy asserted to reporters in London on Thursday that “there are many areas of trade that don’t impact on national security.” He further mentioned that Reeves would be echoing many of the sentiments he previously conveyed during his own trip to China. He explained, “In this complex relationship with a global superpower, we are guided by three Cs”: challenge, compete, and cooperate, particularly in sectors like health and climate initiatives.
