Rachel Reeves defends her Beijing visit, emphasizing London’s role in Chinese finance despite rising borrowing costs
Beijing: Rachel Reeves is making waves by calling London the “natural home” for Chinese finance. She’s defending her recent trip to Beijing, even with borrowing costs on the rise back home.
Concerns are growing about the government’s ability to manage its debt and spending. Some folks are worried that this could lead to tax hikes or deeper cuts when the Chancellor speaks at the end of March.
Opposition leaders are not holding back. They’ve criticized her for being in China while important economic decisions are being made back in the UK. Shadow Chancellor Mel Stride said she’s got her priorities all wrong.
Meanwhile, Liberal Democrat deputy leader Daisy Cooper is urging her to return quickly to tackle the ongoing market crisis and come up with a solid growth plan.
While in Beijing, Reeves met with Chinese officials, including Vice-Premier He Lifeng. She’s trying to strengthen economic ties, but she’s not giving a detailed update on the markets, insisting her fiscal rules are “non-negotiable.”
This trip is significant as it’s the first high-level economic meeting between the UK and China since 2019. Reeves emphasized that London is a prime spot for Chinese financial services and a great launchpad for firms looking to expand globally.
She believes there are plenty of opportunities to deepen connections between the UK and China, especially in capital markets. However, she also stressed the importance of working closely on regulatory matters.
Reeves is the highest-ranking UK official to visit China since Theresa May’s talks with President Xi Jinping seven years ago. This visit follows Labour leader Sir Keir Starmer’s meeting with Xi at the G20 last year, as the party seeks to improve relations with China.
During her meetings, Reeves touted the trip as a “significant milestone” for Labour, claiming it could bring in £600 million to the UK economy over the next five years.
After her discussions with He, she mentioned that the agreements reached represent practical cooperation in areas like financial services, trade, and climate issues.
However, she made it clear that while strengthening ties, national security must remain a priority. She acknowledged the need for honest conversations about disagreements.
The new government is also committed to challenging China on various issues, including human rights concerns and its support for Russia amid the ongoing war in Ukraine.
When asked about the risks of closer ties with China, Reeves emphasized the importance of maintaining pragmatic relationships with countries worldwide, which she believes is in the UK’s national interest.
After her meeting, she raised concerns about national security, Russia’s invasion of Ukraine, and human rights issues in Hong Kong, making it clear that not every conversation will be easy.
She also highlighted that she brought up the case of British pro-democracy activist Jimmy Lai, who has been detained in Hong Kong since 2020, along with other serious allegations against the Chinese government.
