TAIPEI, Taiwan — On Saturday, China and Britain reignited their economic and financial discussions for the first time in six years during a visit from the British Treasury chief to Beijing. This move comes as the Labour government in the U.K. aims to mend its currently tense relationship with China, the world’s second-largest economy.
Rachel Reeves, the Treasury chief, was in Beijing with a group of British business leaders and finance officials. Her meetings included talks with prominent Chinese figures such as Vice Premier He Lifeng and Vice President Han Zheng.
The discussions marked the resurrection of the China-U.K. Economic and Financial Dialogue, an annual series of talks that had been interrupted since 2019 due to the COVID-19 pandemic and the decline in diplomatic relations. The British government believes that restoring these dialogues could help alleviate the challenges faced by U.K. businesses when exporting to or growing their presence in China.
Reeves expressed optimism about the revitalization of the Economic and Financial Dialogue, noting, “Today marks a significant milestone in the U.K.-China relationship with the first dialogue between our countries for nearly six years.” She emphasized the new government’s commitment to establishing a stable and enduring partnership with China, as well as its intentions to enhance economic cooperation.
The U.K. aims to bolster collaboration in various sectors, including sustainable finance, capital market links, pensions, regulatory alignment, and trade and investment, according to Reeves. She pointed out, “As part of this, it is important to prevent economic links from weakening our national security and economic resilience.”
Vice Premier He reinforced the need for improved trade and investment cooperation, focusing on areas such as clean energy, financial services, the green economy, biomedicine, and artificial intelligence. He expressed a willingness to cultivate an equitable business environment that supports both countries’ companies in their respective markets.
The relationship between China and the U.K. has deteriorated, largely due to mutual espionage accusations, China’s alliance with Russia during the Ukraine conflict, and the erosion of civil liberties in Hong Kong, a former British territory.
British representatives indicated that Reeves will encourage the Chinese government to retract its material and economic backing of Russia’s military endeavors in Ukraine, while also addressing human rights issues in Hong Kong. Notable members of her delegation included the Governor of the Bank of England, Andrew Bailey, along with CEOs from major financial regulatory bodies and banks such as HSBC and Standard Chartered.
Reeves’ visit follows a series of diplomatic engagements, including a trip by Foreign Secretary David Lammy to China in October, and a meeting between Prime Minister Keir Starmer and Chinese President Xi Jinping during the G20 summit in Brazil the previous November. This encompasses Starmer’s strategy, since his election as leader in July, to reinforce political and economic connections with China, which is recognized as the U.K.’s fourth-largest trading partner by the Treasury.
However, Starmer’s push for a pragmatic dialogue with Beijing to address global issues like stability, climate change, and the energy transition has faced criticism from some Conservatives. They argue that trade relations should not compromise national security and human rights standards.
British leaders and intelligence officials have consistently flagged China as a security threat, particularly after reports last month about an alleged Chinese spy nurturing close relations with Prince Andrew and engaging in covert activities for the Chinese Communist Party.
Reeves reaffirmed, “National security is the foundation of what any government acting in the national interest will prioritize.” Yet she underlined the necessity for pragmatic and positive international relations as vital to the U.K.’s national interest.
