China and the United Kingdom resumed high-level economic and financial discussions on Saturday, ending a six-year gap in bilateral talks. British Chancellor of the Exchequer Rachel Reeves met with Chinese leaders in Beijing, including Vice Premier He Lifeng and Vice President Han Zheng, as part of efforts to rebuild ties with the world’s second-largest economy.
The talks come after years of tension stemming from allegations of espionage, China’s stance on the Ukraine war, and its crackdown on freedoms in Hong Kong, a former British colony. Reeves emphasized the importance of maintaining a "stable, pragmatic" relationship between the two nations.
"Our two countries can work together on areas of mutual interest while being frank and open with each other when we disagree," Reeves said during a press conference in Beijing.
The talks revived the China-U.K. Economic and Financial Dialogue, an annual initiative suspended since 2019 due to the COVID-19 pandemic and worsening diplomatic relations. As part of the discussions, the two sides signed agreements expected to inject £600 million ($732 million) into the British economy over the next five years, with Reeves projecting a potential £1 billion boost overall.
Key areas of cooperation included sustainable finance, regulatory alignment, capital market connectivity, and trade. China also agreed to lift market access barriers in sectors such as clean technology, life sciences, and digital innovation. Additionally, China announced plans to issue its first overseas sovereign green bond in London this year.
Reeves’ visit comes amid domestic economic challenges in the UK, including high inflation and stagnant growth. Critics, including the opposition Conservative Party, accused her of prioritizing international relations over pressing economic concerns at home.
Despite the focus on economic ties, Reeves acknowledged persistent security and human rights concerns. She called on China to cease its material support for Russia's war in Ukraine and to address the erosion of freedoms in Hong Kong.
"National security is the foundation of any government’s priorities," Reeves said. "But pragmatic and good relations with countries around the world are also in our national interest."
China’s Vice Premier He Lifeng reiterated Beijing’s commitment to removing barriers for British businesses, particularly in agriculture and financial services, signaling a willingness to deepen economic ties.
Reeves’ trip is part of a broader strategy by UK Prime Minister Keir Starmer to recalibrate relations with China. This follows Foreign Secretary David Lammy's visit to China in October and Starmer’s meeting with Chinese President Xi Jinping at the G20 summit in November.
