UK Backs Stronger Economic Ties with China- British Chancellor of the Exchequer Rachel Reeves has emphasized the importance of maintaining and strengthening the United Kingdom’s economic ties with China, warning that it would be “very foolish” for the country to disengage from the world’s second-largest economy.
In a candid interview with The Telegraph, Reeves laid out the Labour government’s stance on UK-China relations, firmly rejecting the notion of economic decoupling. “China is the second biggest economy in the world, and it would be, I think, very foolish to not engage. That’s the approach of this government,” Reeves said.
Her remarks come ahead of her scheduled trip to Washington next week for international economic talks, and signal a pragmatic approach to international trade under Prime Minister Keir Starmer’s administration.
Reeves highlighted her earlier visit to China this year, where she took part in the 11th China-UK Economic and Financial Dialogue. The high-level event, which brought together key players from both countries’ financial sectors, was aimed at expanding opportunities for British firms operating in China. Major UK institutions such as HSBC, the London Stock Exchange Group, Standard Chartered, and Prudential were among those participating.
According to Reeves, the visit yielded substantial results for the UK, including the negotiation of increased licenses and quotas that enable British financial services to expand their footprint in China. She estimated the value of the deals secured during the dialogue to be around £600 million (approximately $796 million USD), a notable boost for the British economy.
As part of her broader message of economic openness, Reeves also voiced support for Chinese fast fashion giant Shein potentially listing on the London Stock Exchange. She downplayed national security concerns that have been raised in recent months, especially those related to Chinese-made electric vehicles. “I’d be happy to ride in one,” she said, brushing off the so-called “spying fears” as overblown.
Her comments underscore the UK’s continued commitment to deepening its trade and financial relationship with China — a direction that has been consistently championed by Prime Minister Starmer, who has prioritized rebuilding Britain’s global economic partnerships.
While the government continues to navigate complex geopolitical tensions involving China, including security concerns and human rights issues, Reeves’ remarks reflect a clear focus on the economic imperatives of engagement rather than isolation.
The chancellor’s pro-engagement position is likely to resonate with the business community, which has long advocated for stable and constructive UK-China relations to facilitate growth, innovation, and global competitiveness. As Reeves prepares for her Washington meetings, the message from London is clear: economic cooperation with China remains a key pillar of Britain’s international strategy.
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