China And Britain Restart Economic Talks After Hiatus

Britain's Chancellor of the Exchequer Rachel Reeves speaks during the 11th China - UK Economy and Finance Dialogue in Beijing, Saturday, Jan. 11, 2025. (AP Photo/Aaron Favila, Pool)

China and Britain have resumed economic and financial discussions after a six-year pause, with Britain's Treasury chief visiting Beijing to reset strained ties with the world's second-largest economy. The talks took place during a visit by Chancellor Rachel Reeves, who led a delegation of British business executives and finance officials. Reeves met with Chinese leaders, including Vice Premier He Lifeng and Vice President Han Zheng, emphasizing the importance of a stable and pragmatic relationship between the two countries.

The Sino-British ties had deteriorated due to spying allegations, China's support for Russia in the Ukraine conflict, and concerns over civil liberties in Hong Kong. Reeves urged Beijing to halt its material and economic support for Russia in Ukraine and raised issues regarding rights and freedoms in Hong Kong. The discussions resulted in agreements in finance valued at 600 million pounds ($732 million) over the next five years for the U.K. economy.

Reeves highlighted the significance of engaging with China, citing its role as the U.K.'s fourth-largest trading partner. The visit aimed to revive the China-U.K. Economic and Financial Dialogue, which had been suspended since 2019 due to the COVID-19 pandemic and strained relations. The dialogue seeks to address barriers faced by U.K. businesses looking to export or expand into China.

Discussions addressed strained relations, including spying allegations and Hong Kong issues.

Chancellor Rachel Reeves led a British delegation to China for economic discussions.

Agreements worth 600 million pounds over five years were reached in finance.

Focus areas included sustainable finance, capital markets, and regulatory alignment.

Efforts to remove barriers to investment in clean technology and financial services were made.

China plans to issue its first overseas sovereign green bond in London.

The visit aimed to revive the China-U.K. Economic and Financial Dialogue.

Prominent figures from financial institutions were part of the delegation.

Emphasis on global stability, climate change, and clean energy transition in the talks.

Reeves stressed the importance of maintaining positive relations despite concerns over security and rights.

The talks focused on areas such as sustainable finance, capital markets connectivity, pensions, regulatory alignment, trade, and investment. Both countries agreed to remove barriers to investment in clean technology, life sciences, digital technology, and financial services. China also plans to issue its first overseas sovereign green bond in London this year.

The delegation included prominent figures from the Bank of England, the Financial Conduct Authority, the London Stock Exchange Group, and major financial services firms. The visit is part of the U.K.'s efforts to strengthen political and economic ties with China, with a focus on global stability, climate change, and clean energy transition.

While some critics have raised concerns about national security and human rights issues, Reeves emphasized the importance of maintaining pragmatic and positive relations with countries worldwide. The visit signifies a step towards enhancing cooperation and addressing challenges in the China-U.K. economic relationship.