🤝 UK-China Economic and Financial Dialogue

• Economic Growth Priority: Chancellor Rachel Reeves emphasized that economic growth is the Labour Government’s top priority, highlighting the importance of British businesses exporting to China, the world’s second-largest economy and the UK’s fourth-largest trading partner.

• UK-China Economic Dialogue: Reeves led a significant delegation to China for the 2025 UK-China economic and financial dialogue, the first since 2019, involving key figures from the Bank of England, the Financial Conduct Authority, and major British financial firms like HSBC and Standard Chartered.

• Tangible Benefits Secured: The dialogue resulted in tangible benefits for UK firms, including improved access to the Chinese market, new licenses and quotas in financial services, and commitments to deepen cooperation in wealth management and sustainable finance. China also agreed to issue its first overseas sovereign green bond in London in 2025.

• Market Access Improvements: Steps were taken to lift market access barriers for UK goods and services in China, particularly in the agrifood sector, which will benefit companies such as Brompton, Jaguar Land Rover, and AstraZeneca.

• Broader Economic Engagement: Reeves noted that the dialogue is part of broader efforts to engage globally, mentioning recent visits to New York, Washington, Toronto, and Brussels to strengthen economic relationships.

• Security and Economic Growth: The Chancellor stressed the need for a balanced relationship with China that aligns with UK national interests, recognizing the importance of cooperation on global issues while challenging China on areas of disagreement, including trade imbalances, human rights, and the situation in Hong Kong.

• Opposition Critique: Shadow Chancellor Mel Stride criticized the government’s economic handling, pointing to recent declines in the pound and increased borrowing costs. He questioned the effectiveness of the China trip, suggesting it was overshadowed by domestic economic challenges.

• Government’s Response: Reeves defended the trip, arguing that engaging with China was essential for securing benefits for British businesses and accused the Conservatives of lacking a coherent economic strategy.

• Human Rights Concerns: During the dialogue, Reeves raised concerns about human rights, forced labor, and the situation in Hong Kong, including the case of Jimmy Lai. She emphasized the importance of engaging with China to discuss such sensitive issues openly.

• Future Plans: Reeves outlined plans to continue driving economic growth through artificial intelligence and increased global investment, aiming to improve living standards in the UK after years of perceived economic stagnation under the Conservative government.

The parliamentary session exhibits a moderate level of disagreement, which is why it is rated a 3. Throughout the session, there is clear contention between Rachel Reeves, the Chancellor of the Exchequer, and Mel Stride, the Shadow Chancellor, primarily centered around economic policies and the effectiveness of the Chancellor’s trip to China. The opposition criticizes the Chancellor’s economic strategy and decision-making, questioning the tangible benefits of the China visit against the backdrop of rising borrowing costs and economic instability. However, there are also moments of agreement and support from members of her own party, who commend the Chancellor for her efforts to engage with international partners and secure economic benefits for the UK. Additionally, several members from both sides of the House raise concerns about human rights and forced labor in China, indicating a shared concern on these issues, although approaches to addressing them vary. The session includes a balanced mix of criticism, support, and constructive questions, indicating a moderate level of disagreement.