During a visit to Beijing in the midst of the turmoil in the global bond market, American manager Rachel Reeves claimed Saturday that London was a “natural house” for Chinese financing.
Reeves is the most mature American government official to travel to China since then-prime secretary Theresa May held discussions with President Xi Jinping seven years ago. His official name is chancellor of the exchequer.
The Labour Party’s spitting efforts to revive growth are further hampered by the yield on American government bonds, which hit a 17-year substantial this week.
The government is more likely to have to cut costs or raise taxes as a result of the increase in the cost of financing existing operations and paying off debt as a result.
Reeves said at the resumption of the two countries ‘ long-sought finance conversations that took place, that London was a “natural home for China’s financial service companies and your customers raising money, and a rocket for Chinese firms seeking to build a global imprint.”
She hailed “opportunities to deepen connections” on capital markets, but said both countries needed to work more closely on “regulatory cooperation”.
At a later press briefing, Reeves said” common ground” had been found on financial services, trade, investment, climate change and other areas.
She said the total value of what had been agreed would be worth £600 million ($ 732 million ) for the British economy over the next five years, without giving specific details.
Vice Premier He Lifeng, her Chinese counterpart, said experience demonstrated that “relationships between our two countries can develop in a healthy way as long as China and the UK respect each other.”
Reeves was pressured by the parliamentary opposition to remain at home and address the financial crisis, but a spokesperson for Prime Minister Keir Starmer said this week that she had not intended to reschedule her “long-standing” trip.
On a visit to British bicycle-maker Brompton’s Beijing showroom earlier Saturday, Reeves acknowledged “moves in global financial markets over the last few days”, but said the fiscal rules she set out in her October budget were “non-negotiable”.
” Growth is the number one mission of this government, to make our country better off”, she said, adding that her visit would “unlock tangible benefits for British businesses”.
The visit included the attendance of the UK’s Financial Conduct Authority’s governor and its chief executive.
– Fine balance-
Starmer has attempted to rebalance the UK’s diplomatic relationship with China, balancing opportunities for trade and cooperation with the need to challenge Beijing on issues like human rights and the Ukraine war.
In November, Starmer became the first British prime minister to meet Xi since 2018, when the pair spoke at the G20 summit in Brazil.
However, trust is strained as a result of allegations that a Chinese businessman allegedly spied on the Communist Party using his connections to Britain’s Prince Andrew, which Beijing has refuted as “posterous.”
Reeves argued on Saturday that it was crucial to allow for an open and honest discussion on issues involving London and Beijing, such as those involving national security, market access, and the effects of subsidies and industrial policy.
Other points of contention, she said, were” Russia’s illegal war in Ukraine… and Hong Kong, where we have concerns on rights and freedoms, but where we also have shared interests”.
In response, He repeated China’s long-standing position that it is “neither a creator of the Ukraine crisis, nor a direct party” to the conflict.
He added that” Hong Kong can serve as a bridge between our two countries ‘ closer cooperation.”
Despite criticism from Western governments that Beijing is providing Moscow with political and economic support to launch a war of aggression, China has long been a partner of Russia and has refused to condemn its invasion of Ukraine.
After Beijing enacted a comprehensive national security law for Hong Kong, which severely restricted freedoms in the former British colony, relations between the UK and China fell in 2020.
