BEIJING — The Treasury chief of Britain inaugurated a trip to China on Saturday with the goal of enhancing economic and financial collaboration between the two nations. This initiative comes as the U.K.’s Labour government aims to mend its previously strained relationship with Beijing.
Rachel Reeves is accompanied by a group of British business leaders and is scheduled to engage with prominent Chinese economic and finance authorities, including Vice Premier He Lifeng. During her visit to a retail location of the British bike manufacturer Brompton in Beijing, Reeves stated, “Our primary objective is growth. For our economy to prosper, we must facilitate the global exports of exemplary British businesses.” She further articulated that her mission is to “unlock concrete advantages for British businesses in international export and trade, while maximizing access to the world’s second-largest economy.”
A key focus of Reeves’ trip is to revive the China-U.K. Economic and Financial Dialogue, a series of annual discussions that have been on hold since 2019 due to the COVID-19 pandemic and increasingly strained relations. The U.K. anticipates that reinitiating these dialogues will help reduce obstacles faced by British businesses attempting to expand into China’s market.
The discussions were previously interrupted due to mounting tensions driven by spying allegations, China’s backing of Russia amid the Ukraine conflict, and the suppression of civil liberties in Hong Kong, a territory that was once a British colony.
Reeves had a meeting later that morning with Chinese Vice President Han Zheng at the Great Hall of the People in Beijing. She stressed the significance of maintaining “an open and straightforward dialogue, addressing both shared views and areas of disagreement.”
Vice President Han remarked that reinstating the U.K.-China dialogue mechanism transmits a “positive signal” and is set to “enhance economic and trade cooperation and the development of both countries.”
British officials indicated that Reeves plans to advocate for Beijing to cease its material and economic support for Russia in the ongoing conflict in Ukraine while also emphasizing the importance of human rights and freedoms in Hong Kong.
The delegation features notable figures such as Bank of England Governor Andrew Bailey, the CEOs of the U.K. Financial Conduct Authority, and London Stock Exchange Group, along with senior leaders from some of Britain’s major financial institutions, including HSBC and Standard Chartered.
Reeves’ journey follows a visit by Foreign Secretary David Lammy to China in October and Prime Minister Keir Starmer’s encounter with Chinese President Xi Jinping during the G20 summit in Brazil in November. This series of engagements forms part of Starmer’s efforts, since his election as leader in July, to reinforce both political and economic relations with China, identified as the U.K.’s fourth-largest single trading partner by the Treasury.
Starmer is focusing on a “pragmatic” strategy in engaging with China regarding global stability, climate initiatives, and the shift toward cleaner energy. However, some members of the opposition Conservative Party have criticized his approach, insisting that trade connections should not compromise national security and human rights issues.
British political leaders and intelligence officials have consistently highlighted the security risks posed by China. Concerns intensified last month when it was revealed that an alleged Chinese spy had developed close relations with Prince Andrew and had engaged in “covert and deceptive activities” on behalf of China’s Communist Party, according to officials.
Reeves emphasized that “National security is a priority that any government prioritizing national interests must consider.” However, she also noted that it is essential to foster pragmatic and beneficial relations with countries globally, as such interactions serve the national interest.
