UK and China Strengthen Economic Ties with £600 Million Agreements
The British Treasury has announced that the United Kingdom has secured agreements with China worth £600 million (approximately €715 million) during the Economic and Financial Dialogue in Beijing. This development comes as the UK’s Minister of Economy, Rachel Reeves, visits China amidst a national economic crisis triggered by rising interest on sovereign debt bonds.
A Stable and Balanced Relationship
Reeves met with her Chinese counterpart, He Lifeng, to foster a “stable and balanced” relationship between the two countries. The British Treasury stated that both parties have agreed to “deepen cooperation in areas such as financial services, trade, investment, and climate to support safe growth, while remaining frank and open about areas of disagreement.”
Driving Economic Growth
Reeves emphasized that the agreements demonstrate the potential for pragmatic cooperation between major economies to drive economic growth, benefiting workers and aligning with the UK’s “Plan for Change.” She also highlighted the importance of respectful and consistent relations with China, where the UK can engage in open discussions, protect its values and security interests, and explore opportunities for safe investment and trade.
Key Areas of Cooperation
The UK Government noted that it is a leading financial services partner for China, with representatives from prominent companies like HSBC, Standard Chartered, Prudential, Schroders, and Fidelity International accompanying Reeves on her trip. The minister’s agenda includes exploring initiatives to improve capital market connectivity, as well as programs on pensions and sustainable financial cooperation.
Addressing Sensitive Issues
Both sides have committed to improving existing channels to address sensitive issues, such as national and economic security. They have also agreed to strengthen their alliance on clean energy and engage in a dialogue on international development to tackle shared global challenges.
Open Channels for Disagreement
Reeves has emphasized the importance of establishing open channels in areas where the UK and China disagree. She has urged China to cease its support for Russia’s defense industrial base, which enables Vladimir Putin’s regime to maintain its illegal war against Ukraine. Additionally, Reeves has expressed her Government’s “deep concern” about cases involving Chinese interference in British democracy, “malicious cyber activity emanating from China,” and human rights issues related to forced labor.