LONDON — This weekend, the Chief Treasury Minister of the United Kingdom is set to visit China in an effort to enhance economic and financial collaboration between the two nations. The Labour government of the U.K. is aiming to mend the strained relationship it has had with Beijing.
Rachel Reeves will work to establish a more stable connection between the U.K. and China, while also focusing on addressing the country’s economic challenges, as indicated by the Treasury on Friday. Her itinerary includes visits to Beijing and Shanghai, where she is scheduled to meet with Vice Premier He Lifeng, who is also a key figure in the Chinese government.
A significant aim of Reeves’ visit is to reinstate the Economic and Financial Dialogue between the two countries, which has been on hold since 2019 due to the disruptions caused by the COVID-19 pandemic and worsening bilateral relations. The U.K. hopes that these discussions will help reduce obstacles that British businesses encounter when attempting to expand or export to the Chinese market.
The bilateral talks were paused following allegations of espionage from both nations, China’s backing of Russia during the Ukraine conflict, and the tightening of civil liberties in Hong Kong, previously a British territory.
In addition to discussing ways to strengthen trade ties, Reeves is anticipated to press the Chinese government to cease its material and financial support for Russia’s activities in Ukraine. She is also expected to advocate for the importance of human rights and freedoms in Hong Kong.
Her delegation will feature prominent figures such as Bank of England Governor Andrew Bailey, along with the chief executives of the U.K. Financial Conduct Authority and the London Stock Exchange Group. Additionally, leaders of some of the largest financial service firms in Britain, including the heads of HSBC and Standard Chartered, will accompany her.
During her stay in Beijing, Reeves is likely to visit major U.K. companies operating in China, such as Jaguar Land Rover, the whisky distributor Diageo, and Brompton, known for its bicycles.
This visit follows a trip made by Foreign Secretary David Lammy to China in October, as well as a meeting between Prime Minister Keir Starmer and Chinese President Xi Jinping at the G20 summit in Brazil in November.
These diplomatic engagements are part of an initiative by Starmer, who stepped into his leadership role in July, to improve political and economic relationships with China, recognized as the U.K.’s fourth-largest trading partner according to the Treasury.
Officials have indicated that Starmer aims for a “pragmatic” strategy to engage with Beijing on pressing global issues, including stability, climate change, and the transition to renewable energy.
However, members of the opposition Conservative Party have raised objections to his approach, warning that restoring trade relations should not compromise national security or disregard human rights issues.
British political leaders and intelligence officials have consistently cautioned about the security risks posed by China. Concerns intensified last month amid revelations that an alleged Chinese spy had developed significant connections with Prince Andrew, purportedly executing covert activities for the ruling Communist Party of China.
Despite these concerns, Lammy emphasized to reporters that there are numerous trade aspects that do not endanger national security. He remarked that Reeves would echo many of the sentiments he expressed during his own visit to China.
“We have articulated that within this complex relationship with a global superpower, our approach is guided by three principles: challenge, compete, and cooperate,” Lammy noted, mentioning collaborative efforts in addressing health and climate-related issues.
