Britain’s Finance Minister Rachel Reeves restarted talks with Beijing on Saturday, arguing that a “pragmatic and predictable” relationship with the country would boost economic growth and trade.
The annual bilateral talks between China and Britain – the world’s second and sixth largest economies respectively – were suspended since 2019 due to the COVID-19 pandemic and deteriorating relations more broadly.
Why are talks starting again now?
As Britain’s Chancellor of the Exchequer, Reeves said she was in China looking for new markets at a time when Britain is desperate to get out of economic problems.
Reeves’ visit follows talks that began last year between British Prime Minister Keir Starmer and Chinese President Xi Jinping – the first meeting between the two countries’ leaders since 2018.
“Growth is the number one mission of this government to make our country better,” Reeves said while visiting the Beijing showroom of UK bicycle maker Brompton.
“That’s why I’m in China to achieve tangible benefits for British businesses that export and trade around the world,” he said.
Reeves met with Chinese leaders, including Vice Prime Minister He Lifeng and Vice President Han Zheng.
After the meeting, he announced deals worth £600 million ($732 million, €714 million) to the UK economy over the next five years, while “re-engaging” with China would already help us meet the target. Preparing for. “Worth £1 billion to the UK economy.”
What is controversial about travel?
Reeves has been criticized for visiting China amid domestic financial market turmoil amid rising British government borrowing costs, partly due to global bond sales.
That development has prompted comparisons to the “mini-budget” crisis of 2022 that forced then-Prime Minister Liz Truss to leave Downing Street after just 50 days in office.
However, the changes in the bond market this week have been less extreme and have been implemented across a number of international currencies. So far there has been no evidence of pressure from institutional investors that would have forced the Bank of England to buy emergency bonds in 2022.
The visit also comes as Britain’s political leaders and intelligence chiefs have repeatedly warned about the security threats posed by China.
The calls intensified last month when it emerged that an alleged Chinese spy had formed close ties to Prince Andrew and conducted “clandestine and disinformation activity” for China’s ruling Communist Party.
British officials said that, on her visit, Reeves would urge Beijing to end its material and economic support for Russia’s war in Ukraine and that she would particularly raise the issue of human rights in the former British colony of Hong Kong.
rc/ab (AFP, dpa, Reuters)